Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Corporate Social Responsibility (CSR)
• Employee Well-being

Environmental Achievements

• Launched SENS, a low-emission interior paint endorsed by the Norwegian and Swedish Asthma and Allergy Associations.
• Launched SeaMate, a more affordable antifouling marine coating that reduces fuel consumption and carbon emissions.
• Initiated environmental cleanup of waterways near headquarters in Sandefjord, Norway.
• Committed to achieving ISO 14001 certification for all production facilities.

Social Achievements

• Opened a new factory in Pune, India, designed with a focus on worker safety and a healthy work environment.
• Implemented various local community initiatives globally, including paint donations to schools and clinics, sponsoring local sports teams, and supporting charitable causes.
• Developed and implemented the Team No. 1 technical training program for coatings advisors.
• Emphasized cultural understanding and diversity in global management teams.

Governance Achievements

• Implemented a fully integrated ERP system across 64 companies worldwide.
• Redefined focus on the Multicolor Concept.
• Initiated actions to increase employee awareness of CSR issues.
• Adopted a policy demanding higher CSR standards from subcontractors and audited suppliers’ CSR policies.

Climate Goals & Targets

Environmental Challenges

• Slowdown in demand for coatings due to the global financial crisis.
• Rising raw material prices.
• Increased competition in the decorative paint market.
• Delayed deliveries of raw materials.
• Increased demand for waterborne paints requiring factory upgrades.
• Weakening demand in the fourth quarter of 2008 due to currency effects.
• Potential slowdown in new construction projects and energy infrastructure impacting sales.
• Market pressures and industry consolidation in the shipping industry.

Mitigation Strategies

• Implemented measures to manage the effects of the slowing global economy.
• Improved operational efficiency and expanded distribution networks.
• Implemented a focused LEAN initiative to reduce costs and improve competitiveness.
• Developed unique, innovative paints to match evolving consumer demand.
• Reviewed supplier network to ensure reliable supply of raw materials.
• Optimized production and evaluated upgrades to factories in Norway.
• Invested in optimizing sea stock and dry dock distribution network.
• Strengthened Team No. 1 technical training program.
• Launched SeaMate, a more affordable alternative to SeaQuantum.
• Refined segmentation concepts for protective coatings and developed products for specific industries.
• Continued to refine its focus on specific segments, including oil & gas, combustion and renewable power stations, infrastructure and heavy industry plants.
• Developed a more targeted approach to the offshore industry.
• Continued to pursue a growth strategy in selected markets while increasing its focus on profitability.

Supply Chain Management

Responsible Procurement

• Auditing suppliers' HSE and CSR policies

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (SeaQuantum, SeaMate)

Sustainable Products & Innovation

• SENS
• SeaMate
• SeaQuantum
• Corro-Coat Durasol
• J-Trac

Awards & Recognition

• Offshore Support Journal's 'Ship of the Year' award (for coatings supplied to Island Constructor)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Responsible consumption and production
• Life below water
• Decent work and economic growth

Environmental Achievements

• Launched Hull Skating Solutions (HSS), a proactive hull cleaning system to reduce fuel consumption and CO2 emissions.
• Launched Jotacote Universal S120, a solvent-free universal primer to reduce VOC emissions.
• Announced plans to install solar panels in factories in China and Malaysia.
• Developed Tankguard Flexline, a durable tank coating extending maintenance intervals and reducing waste.

Social Achievements

• Launched a comprehensive Diversity and Inclusion initiative focusing on gender, ethnic/cultural, professional background, and generational diversity.
• Implemented enhanced partner support for employees on international assignments.
• Implemented a new Task Management tool to improve follow-up on planned activities and safety improvements.
• Launched 'myJotun', a web-based portal for dealers and distributors to improve access to information and support.

Governance Achievements

• Established systems, reviews, and audits to measure and verify compliance with CR policies.
• Implemented digital training for anti-corruption and diversity and inclusion.
• Launched a new ‘Compliance in Jotun’ team-site to simplify access to compliance policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting sales and supply chains.
• Decline in newbuilding orders impacting Marine Coatings.
• Delayed or cancelled projects in the oil and gas industry impacting Protective Coatings.
• Anticipated rise in raw material prices.

Mitigation Strategies

• Implemented business continuity measures and empowered local personnel.
• Utilized digital technologies to maintain operations and customer relationships.
• Implemented cost control measures.
• Focused on product mix optimization.
• Accelerated investments in competence development and digital tools.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Integrity Declaration covering anti-corruption, child labor, and employee working conditions.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 14

Jotun's initiatives are aligned with these goals through various programs and policies.

Sustainable Products & Innovation

• Hull Skating Solutions
• Jotacote Universal S120
• SteelMaster 1200WF
• Baltoflake
• Jotashield Extreme
• Primax Excel
• Tankguard Flexline

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed solar panels at factory in Nilai, Malaysia
• Completed construction of a wastewater treatment facility in Sandefjord, Norway (capacity to recycle close to 3.5 million litres of process water every year)
• Introduced the GreenStep Analyser, a tool to extend the scope of EPDs beyond "gate" to include the use and maintenance phase

Social Achievements

• Launched a new Human Resources Management System (HRMS)
• 165 employees participated in global mobility programs
• Achieved an all-time low Lost Time Injury Rate (LTIR) of 1.4 (1.7 in 2020)

Governance Achievements

• Formalised its integrated Sustainability Strategy
• Implemented a new supplier assessment tool
• Conducted nine HSEQ audits of Jotun factories and three audits on ongoing construction projects

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacted business in many key markets
• High cost and availability of raw materials
• Fire in the energy central at the company’s binder factory in Sandefjord
• Global supply chain crisis

Mitigation Strategies

• Increased sales prices to compensate for the sharp increase in raw material costs
• Measures to control operating costs
• Strategic build-up of stock levels in the face of global supply chain challenges
• Focus on meeting the evolving demands of different customer groups in different markets
• Corrective actions implemented after the fire in Sandefjord

Supply Chain Management

Supplier Audits: Annual assessments on all raw material and packaging suppliers

Responsible Procurement

• Supplier Integrity Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible production and consumption)
• Goal 13 (Climate action)
• Goal 14 (Life below water)

Not disclosed

Sustainable Products & Innovation

• Paints and coatings that contain minimal or zero VOCs
• Highly durable coatings that extend maintenance intervals
• Specialized coatings to help improve environmental performance

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint by 4% (Scope 1 and 2) from 2017 to 2022.
• Improved electricity efficiency by 16% (Electricity consumption in kWh/tonne produced) from 2017 to 2022.
• Increased renewable electricity share to 24% in 2022.
• Recycled 55% of all waste generated in 2022.

Social Achievements

• Launched the Penguin CARE Programme to support employees with family responsibilities.
• Increased investments in automation to improve worker safety.
• Implemented a global fire safety initiative.
• Certified 750+ internal trainers and 20 external trainers.

Governance Achievements

• Implemented extensive compliance programmes across all business functions.
• Aligned business with the Norwegian Transparency Act.
• Maintained zero tolerance for corruption.

Climate Goals & Targets

Environmental Challenges

• High raw material prices and transportation costs.
• Supply chain disruptions due to the war in Ukraine and the lingering effects of the COVID-19 pandemic.
• Closure of Jotun’s business in Russia.
• Customer resistance to price increases in some markets.

Mitigation Strategies

• Implemented price increases to offset rising raw material costs.
• Managed costs effectively, reducing costs as a percentage of sales to an all-time low.
• Opened new factories in Qatar, Pakistan, and Bangladesh.
• Launched innovative products to improve customer environmental performance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Integrity Declaration
• Use of recycled plastic in paint cans (Norway).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol (Corporate Standard), UN Sustainable Development Goals, ISO 19030 (hull and propeller performance)

Certifications: ISO 9001 (Quality Management), ISO 14001 (Environmental Management), ISO 45001 (Occupational Health and Safety), UL GreenGuard Gold (Fenomastic Wonderwall Life paint), Eurofins Indoor Air Comfort Gold (Lady Balance paint)

Third-party Assurance: Norsus (for EPDs)

UN Sustainable Development Goals

• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Jotun's initiatives contribute to these goals through various programs and policies related to diversity and inclusion, renewable energy, sustainable product development, and emissions reduction.

Sustainable Products & Innovation

• SeaQuest Endura (biocide-free fouling release coating)
• Tankguard Special Plus (epoxy tank coating)
• Baltoflake (maintenance-free corrosion protection)
• Jotachar (passive fire protection)
• LifeShine (bright metallic powder coating)
• UltiMatt (durable matte powder coating)
• Guard Insulate and Guard Insulate Pro (powder coatings for EVs)
• Fenomastic Wonderwall Lux (low-odour, air-purifying interior paint)
• Majestic Sense (low-odour, air-purifying interior paint)
• Jotashield UltraClean (dirt-repellent exterior paint)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint by 21% (Scope 1 and 2) since 2017
• Improved electricity efficiency by 16%
• 21% renewable electricity (2023)
• 61% recycled waste (2023)
• Hull performance solutions helped customers achieve about 10.4 million tonnes of avoided emissions, equivalent to more than USD one billion in fuel savings.

Social Achievements

• Launched Penguin CARE program for family support
• 89% response rate in Employee Feedback Survey, exceeding industry norms on engagement and enablement.
• Launched Speak-Up! campaign to increase psychological safety
• Continued efforts to improve gender diversity, aiming for 30% female managers globally and 40% at headquarters by 2030.

Governance Achievements

• Implemented a comprehensive D&I policy
• Established systems to track, share information and follow up on compliance issues.
• All Jotun companies are subject to periodic Business Reviews.

Climate Goals & Targets

Environmental Challenges

• Rising global inflation
• Volatile energy markets
• Extreme weather events
• Challenges in achieving gender diversity goals in some markets.
• Concerns that conflict in the Middle East may impact sales.

Mitigation Strategies

• Commitment to long-term strategy and cost control
• Retention of skilled personnel and investment in competence development
• Balancing cost and income despite high raw material prices
• Diverse geographical footprint to offset losses in some countries
• Investment in R&D and production capacity
• Development and investment in global IT systems
• Working with suppliers, customers and stakeholders to reduce environmental impact throughout the value chain.
• D&I training incorporated into management programs and mandatory introductory courses for all employees.
• Speak-Up! campaign to encourage open communication and address employee concerns.

Supply Chain Management

Supplier Audits: Yearly audits for major suppliers (mostly EcoVadis)

Responsible Procurement

• Supplier Integrity Declaration (SID)
• Supplier Management System (SMS)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol, UN Global Compact, ESRS (preparing for 2024 reporting)

Certifications: ISO 9001, ISO 14001, ISO 45001, Qualicoat

UN Sustainable Development Goals

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

Jotun's initiatives contribute to these goals through sustainable product development, reduced emissions, responsible sourcing, and employee well-being programs.

Sustainable Products & Innovation

• Jotashield Ultra Clean
• Jotachar JF750 XT
• Baltoflake
• Lifeshine Collection
• UltiMatt Collection
• Cool Shades Collection
• Lady Balance
• Majestic Sense
• Fenomastic Wonderwall Lux
• Jotashield Eterna
• Drygolin Nordic Extreme Supermatt

Awards & Recognition

• Orkla Growth Award for Jotashield Ultra Clean