Climate Change Data

Environmental Metrics

ESG Focus Areas

• Inclusiveness and equal opportunity
• Circular product lifecycle
• Zero emissions from own operations

Environmental Achievements

• ISO 14001:2015 certified since 2011
• Handles outdated ICT products and toxic waste through partners

Social Achievements

• Donated more than MNOK 3 to Barnekreftforeningen and Radiohjelpen
• Initiated a Group-wide measure to strengthen gender equality and diversity efforts through conducting a gender gap audit, developing an intervention plan, and institutionalizing an annual gender gap monitoring.

Governance Achievements

• Annual risk assessment and mitigation presented and discussed with the Board of Directors
• Centralized risk management

Climate Goals & Targets

Environmental Challenges

• Gender imbalance in the workforce (75% men, 25% women)
• Average salary 13% lower for female employees compared to male employees
• Uncertainty about market effects post-Covid-19

Mitigation Strategies

• Ongoing efforts to improve gender equality and diversity
• Continuous improvement of processes and development of resources to meet future needs
• Continuous monitoring of working environment

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Certifications: ISO 14001:2015

Environmental Metrics

ESG Focus Areas

• Circularity
• Inclusiveness
• Environmental footprint

Environmental Achievements

• Recycled 90.0% of waste (0.2% decrease from 2020)
• Launched FLEX subscription service to promote sustainable consumption

Social Achievements

• Employee turnover decreased slightly from 18.0% to 17.8%
• Zero incidents of discrimination reported
• No injuries reported (reduction from 12 in 2020)
• Launched Webhallen's Revive buy-back program for mobile phones

Governance Achievements

• Successful listing on Oslo Børs
• Acquisition of Ironstone Holding AS
• Established corporate governance policy based on the Norwegian Code of Practice for Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints and component shortages
• Softer market demand for consumer electronics towards the end of the year
• Increased energy costs due to the war in Ukraine

Mitigation Strategies

• Strengthened cost leadership position through scalable business model and increased business efficiency
• Active packing service vehicles more effectively to reduce airspace in cargo shipments
• Introduced new minimum-sized boxes for all parcel flows
• Continuous monitoring of risk exposure and improvement of internal control processes

Supply Chain Management

Responsible Procurement

• Updated code of conduct with clearer standards and expectations on activities affecting the natural environment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Norwegian Code of Practice for Corporate Governance, IFRS

Certifications: ISO 9001, ISO 14001

Third-party Assurance: BDO AS

Sustainable Products & Innovation

• FLEX subscription service

Environmental Metrics

ESG Focus Areas

• Circular business model
• Climate neutrality
• Inclusive and attractive employer

Environmental Achievements

• Reduced energy consumption by over 4% compared to 2022
• Increased renewable energy share by 5% to 70%
• Reduced plastic use by 16-19 tonnes per year through new packaging line
• Estimated CO2e savings of 932 tonnes from NetOnNet's buyback program

Social Achievements

• Launched Talent Task Force to develop leadership potential
• Introduced Learnifier e-learning platform to Komplett Services
• Reduced average sick leave to 5.3% from 6.0% in 2022
• Reduced work-related injuries to 8 from 20 in 2022

Governance Achievements

• Established new business conduct policies at group level (Code of Conduct, Supplier Code of Conduct, Anti-Corruption and -Bribery Policy, and Whistleblower Policy)
• Conducted 67 factory audits, terminating contracts with 7 factories that did not meet standards
• Centralized procurement to streamline operations and ensure consistent policy adherence

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions affecting margins and product availability
• Slowdown in sales in the second half of December 2023
• Increased market risks due to macroeconomic challenges, reduced purchasing power, and geopolitical unrest
• High return rate within the e-commerce business
• Risk of human rights violations in the supply chain

Mitigation Strategies

• Closely monitoring market trends and adapting product range and services
• Refining pricing tools and strategies
• Improving inventory positions
• Implementing measures to improve operating working capital
• Investing in new SAP ERP solution and eCommerce infrastructure
• Collaboration with delivery suppliers to find collective solutions for reducing emissions
• Offering fossil-free deliveries to customers
• Improving and automating the buyback process
• Strengthened group supplier code of conduct
• Conducted 67 factory audits for private label suppliers

Supply Chain Management

Supplier Audits: 67/year

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact principles, OECD Guidelines, ILO conventions

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Extreme heat
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Reputation enhancement through emissions reduction
• Increased demand for energy-efficient products

Reporting Standards

Frameworks Used: ESRS

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 7: Affordable and clean energy
• SDG 8: Decent work and economic growth
• SDG 10: Reduced inequalities
• SDG 12: Responsible consumption and production
• SDG 13: Climate action

The report details how Komplett's initiatives contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Circular business model
• Climate neutrality
• Attractive & inclusive employer

Environmental Achievements

• 15 per cent of group revenues from circular products and services by 2028
• Scope 1 & 2 GHG reduction of 42 per cent by 2030
• Net zero by 2040

Social Achievements

• Industry leading employee temperature
• Gender balance in leadership positions

Governance Achievements

• Early adopters to the new European Sustainability Reporting Standards (ESRS)

Climate Goals & Targets

Environmental Challenges

• Challenging markets with deterioration in core categories resulting in a revenue decline
• Intensifying price competition
• Weak sales leading to prolonged build-down of elevated inventories
• Continued market challenges, with subdued demand and challenges in several of the group’s core categories

Mitigation Strategies

• Cost measures leading to relatively stable operating costs year-over-year
• Good progress on commercial efforts and cost reduction initiatives
• Establishment of a central commercial team to improve sourcing and commercial efforts
• Actions to improve operational and financial performance to proactively manage the negative impact from volume shortfall, continued inflationary pressure as well as costs associated with expansion and store openings

Supply Chain Management

Responsible Procurement

• Renegotiating payment terms and agreements with key suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESRS