Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmentally sound products
• Efficient use of energy and input materials
• Responsible supplier selection
• Workplace safety
• Employee development
• Community development

Environmental Achievements

• Total energy consumption reduction of 2.4 percent (2014: 2.9%), thanks to energy conservation initiatives. Baseline 2012: 379,291 MWh, year 2015: 370,307 MWh. Energy intensity reduction of 17.0 percent per net sales (Year 2014: 7.8%). Baseline 2012: 12.7 MWh/SEKm, year 2015: 10.5 MWh/SEKm.
• 92 percent of production facilities with more than 100 employees were certified with ISO 14001.
• Development of a new IT tool to improve communication with suppliers regarding hazardous chemicals.
• RML (Restricted Material List) updated with more hazardous substances.
• Phasing out of DEHP (though work remains).
• Staff in R&D and procurement trained regarding hazardous chemical substances.
• Construction division started training suppliers on hazardous chemical substances and regulations.
• Total GHG emission reductions (Scope 1 + Scope 2): 1,815 tCO2e. Scope 1 GHG emission reductions: 1,611 tCO2e. Scope 2 GHG emission reductions: 204 tCO2e.

Social Achievements

• Lost workday accident rate improved to 3.3 (2014: 3.8).
• Continued implementation of a unified health and safety management system.
• Several local community engagement projects started, including supporting refugees in Europe.
• Web-based Code of Conduct training rolled out to 100% of managers in tiers 1-4, with 80% completion rate in 2015.
• Additional personnel trained based on divisional needs.
• Code of Conduct included in induction programs for all new hires in the US and Canada.

Governance Achievements

• 100% of managers in tiers 1-4 received online Code of Conduct training.
• Firm and detailed intra-group policies regarding non-acceptance of corruption implemented.

Climate Goals & Targets

Environmental Challenges

• Missing data on transportation of goods.
• Limited progress by some suppliers on environmental and working conditions.
• Two cases of investigation by Competition Authorities pending.

Mitigation Strategies

• Supplier sustainability audits focused on high-risk suppliers in China (4 full audits and 15 follow-up visits).
• Corrective actions requested from suppliers with non-conformities.
• Ongoing efforts to improve data collection and reporting systems.
• Strengthened training in the Code of Conduct, translation into local languages, established a whistleblower function, appointed a Compliance Officer and providing regular training for local management, employees and suppliers in high-risk countries.

Supply Chain Management

Supplier Audits: 4 Full Supplier Sustainability Audits (FSSA) and 15 follow-up visits in Asia in 2015

Responsible Procurement

• Husqvarna Group's Code of Conduct and Supplier Code of Business Ethics, Restricted Materials List, training sessions for suppliers in chemical legislations (REACH and RoHS), Supplier Quality Assurance (SQA) process including sustainability risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products with lower fuel consumption and CO2 emissions (handheld construction products, robotic mowers, battery-powered lawn mowers, blowers, trimmers, chainsaws), AutoTune™ and X-TORQ® engine technologies

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Supplier Sustainability
• Safety
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions intensity by 26% across the value chain compared to 2015.
• Reduced CO2 emissions intensity from product use by 26% compared to 2015.
• Increased renewable energy share to 42% of total electricity consumption.
• Built its first solar power generating facility in Nashville, Arkansas, expected to reduce CO2 footprint by about 1,000 tons in the first year and approximately 25,000 tons over 25 years.

Social Achievements

• Achieved a Net Promoter Score (NPS) of +10, exceeding the industry average.
• 94% response rate to the Group-wide team survey.
• Launched Husqvarna Loves Parks initiative, with employee volunteers improving natural areas in 11 countries.
• Supported the Peru Cocoa Alliance program to increase capabilities of cocoa producers while protecting tropical forests.

Governance Achievements

• Received an investment grade long-term corporate rating of BBB with a stable outlook from Standard & Poor’s.
• Implemented a strong performance culture with clear goals and personal accountability.
• Launched UpCare service contracts.
• Strengthened supplier audits and assessments.

Climate Goals & Targets

Environmental Challenges

• Challenging US retail market for Consumer Brands Division.
• Rising raw material costs.
• Lower sales volumes due to proactive decision to step back from a major retail account.
• Supply chain disruptions (implied, not explicitly stated).

Mitigation Strategies

• Accelerated cost reduction and efficiency improvements in Consumer Brands Division.
• Launched new products with better margins.
• Implemented internal efficiency program.
• Strengthened supplier relationships and audits.
• Developed alternative sourcing strategies (implied).

Supply Chain Management

Supplier Audits: 22 of 160 strategic suppliers audited in 2017 (42% since 2015).

Responsible Procurement

• Excite supplier program focusing on environmental, human rights, and anti-corruption priorities.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding (implied)

Transition Risks

• Regulatory changes, market shifts (implied)

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Battery-powered products, robotic lawn mowers.

Awards & Recognition

• Innovation Vendor Partner of the Year by Lowe’s for Husqvarna Automower®.

Environmental Metrics

ESG Focus Areas

• Carbon
• Circular
• People

Environmental Achievements

• Reduced CO2 emissions by -27% compared to 2015 baseline.
• Increased share of electrified products sold to 37% (compared to 11% in 2015).
• Launched Gardena EcoLine, a range of garden products made with a high share of recycled materials.

Social Achievements

• Named a Diversity Leader by the Financial Times.
• Extended support for UNICEF’s global water, sanitation and hygiene programs.
• Rolled out Diversity & Inclusion (D&I) strategy.

Governance Achievements

• Complied with all aspects of the Swedish Code of Corporate Governance without exception.
• Established a People & Sustainability Committee to oversee management remuneration, talent management, and sustainability efforts.
• Implemented a three-year Compliance Program Plan based on a global risk assessment.

Climate Goals & Targets

Environmental Challenges

• Higher costs for raw materials, components, and logistics.
• Disruptions in global supply chains.
• Component shortages.

Mitigation Strategies

• Successful implementation of price increases.
• Extended production planning horizon and increased component inventories.
• Developed alternative sourcing strategies (implied).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Future CO2 emissions regulation
• Shift from petrol to battery products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 11
• SDG 12
• SDG 13

Reducing waste, sustainable cities, and low-carbon solutions.

Sustainable Products & Innovation

• CEORA™ robotic mower
• K 1 PACE battery-powered power cutter
• Gardena EcoLine
• Automower® 315
• 592 XP® G chainsaw
• Gardena Sileno Minimo robotic mower

Awards & Recognition

• German Sustainability Award Design 2022 (Gardena EcoLine)

Environmental Metrics

ESG Focus Areas

• Carbon
• Circular
• People

Environmental Achievements

• Reduced CO2 emissions by -44% compared to the 2015 baseline.
• Launched 17 circular innovations in 2023, bringing the total to 27 since 2021.
• Increased the share of electrified motorized products to 42% (from 34% in 2022).

Social Achievements

• Inspired 2.4 million people to make more sustainable choices.
• Rolled out global sustainability training courses for employees across production facilities (translated into nine languages).

Governance Achievements

• Combined annual and sustainability reports, reflecting the Group’s commitment to integrating sustainability across all aspects of its operations.
• Expanded Group cost-savings program to SEK 1.2bn, with full effect to be reached by 2025.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic situation impacting customer spending and sales volumes.
• Increased competition in the robotic mowers market.
• Supply chain disruptions and higher prices for key components (though mitigated).

Mitigation Strategies

• Implemented cost savings, price increases, and lower logistics costs to improve operating margin.
• Increased innovation pace in robotics and battery products.
• Re-engineered products, developed direct relationships with sub-suppliers, and built additional buffer stock to address supply chain issues.
• Proactively exiting low-margin petrol-powered consumer wheeled business.

Supply Chain Management

Supplier Audits: 12 onsite audits; 74 of 208 high-risk suppliers assessed via EcoVadis; 358 suppliers engaged in CDP Supply Chain Program.

Responsible Procurement

• Supplier Code of Business Ethics
• EcoVadis supplier assessment tool
• CDP Supply Chain Program
• Engagement with suppliers on CO2 reduction initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, droughts)
• Natural disasters (flooding, wildfires)

Transition Risks

• Stringent emissions regulations and bans on petrol-powered products.
• Shift from petrol to battery products and increased competition.

Opportunities

• Development of energy-efficient products.
• Growth in battery-powered and robotic products.
• Expansion of service offerings.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (at 69% of factories), ISO 50001 (at some facilities), ISO 45001

Sustainable Products & Innovation

• Husqvarna Automower® NERA (boundary-wire free robotic mower)
• Husqvarna CEORA™ (autonomous robotic mower for large-scale lawns)
• Husqvarna Aspire range (POWER FOR ALL battery system)
• Gardena EcoLine (recycled plastics)
• Orbit Irrigation B-hyve smart watering systems
• Husqvarna PACE battery system

Awards & Recognition

• Gardena EcoLine awarded Plastics Recycling Award Europe 2023