Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Workplace
• Society

Environmental Achievements

• Reduced carbon dioxide emissions per window wing by 7.1%

Social Achievements

• Launched a program for the development of Managing Directors within the Group.
• Increased the proportion of women elected by the AGM to the Board of Directors.
• Increased the proportion of rural employees from 25% to 27%.

Governance Achievements

• Successfully launched a new ERP system for increased efficiency and better governance in Swedish business units.
• Updated sustainability compass to include the latest ambitions within ESG, EU-Taxonomy, Green Deal, etc.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic negatively affected production efficiency, especially in Sweden and Finland; operations in the UK and Ireland temporarily closed.
• Lower renovation subsidies and increased amortization requirements in Sweden, uncertainty around the oil industry and depreciated Norwegian currency in Norway, and uncertainty in the economic outlook in Finland impacted market dynamics.

Mitigation Strategies

• Swift action and decentralized mandate to handle the Covid-19 pandemic, focusing on employee protection, infection control, and maintaining operations.
• Rapid cost measures and high agility to handle currency depreciation in Norway.
• Increased capacity to take advantage of favorable market dynamics during the pandemic.

Supply Chain Management

Supplier Audits: 96.5% of direct material suppliers signed Inwido’s Code of Conduct in 2020

Responsible Procurement

• Code of conduct for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, CDP, EU-Taxonomy

Certifications: ISO 14001

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 13

Inwido focuses on these UN Sustainable Development Goals through energy-efficient products, employee development, community involvement, and responsible business practices.

Sustainable Products & Innovation

• Energy-efficient windows and doors

Awards & Recognition

• Pihla Group’s Tiivi Connect antenna glass awarded a UK innovation award

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Supplier responsibility
• Diversity & Inclusion
• Governance

Environmental Achievements

• Reduced CO2 emissions by 39% (Scope 1 and 2)
• 61% of sales met EU Taxonomy criteria for significant contribution to climate change mitigation (compared to 45% in 2020)
• Increased share of renewable energy in several Group units
• Reduced hazardous and non-hazardous waste by 20.7%

Social Achievements

• Launched Outline Plus ‘plant within a plant’, helping people return to the labor market
• Improved Sustainalytics ESG Risk Rating to 21.1
• MSCI ESG Rating of AA
• CDP ranking at the second-highest level
• Continued efforts to reduce sick leave
• Implemented regular training initiatives to reduce workplace accidents
• Elitfönster received sustainability award for energy efficiency improvements

Governance Achievements

• Linked new loan agreements to ESG performance (CO2 reduction and safe working environment)
• Joined the Science Based Targets initiative
• Developed a Managing Director development program
• Developed Inwido’s leadership principles
• Improved internal control systems
• Implemented a whistle-blower function

Climate Goals & Targets

Environmental Challenges

• Price increases on input materials
• Supply chain disruptions due to Covid-19
• Continued turbulence surrounding Covid-19
• Increased sick leave

Mitigation Strategies

• Increased prices to customers while striving to grow market share
• Advanced digitization and good application of customer agreements
• Investments in production capacity in Poland and Estonia
• Upgraded IT platform
• Implemented measures to protect employees, reduce virus spread, and maintain operations and deliveries

Supply Chain Management

Supplier Audits: 97.1% of direct material suppliers signed Inwido’s Code of Conduct

Responsible Procurement

• Code of Conduct for business partners
• Requirements for suppliers to act sustainably

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, EU Taxonomy, UN Global Compact, Science Based Targets initiative

Certifications: ISO 14001 (Elitfönster, Hajom Skjutdörrrar, SnickarPer)

Third-party Assurance: KPMG AB (reviewed Corporate Governance Report)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 13

Inwido works to promote the UN’s 17 goals for sustainable development, focusing on these seven goals.

Sustainable Products & Innovation

• Energy-efficient windows and doors

Awards & Recognition

• Elitfönster received sustainability award

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Responsible business practices

Environmental Achievements

• Reduced Scope 1 and 2 carbon dioxide emissions per window wing by 22 percent in 2022 (50% reduction since 2019). Achieved 2030 climate ambition ahead of schedule.
• Increased share of window and door sales complying with the EU Taxonomy’s criteria for climate change mitigation from 61% in 2021 to 65% in 2022.
• Decreased energy consumption per window wing in line with the target of 5 percent.

Social Achievements

• Decreased number of accidents with lost working days.
• Continued efforts to improve employee satisfaction (although the leadership and confidence index fell slightly in 2022, this was attributed to new acquisitions).
• Four new Managing Directors appointed, all recruited internally.

Governance Achievements

• Continued work on ethical behavior and compliance with the UN Global Compact's ten principles.
• Established a well-established whistle-blower function.
• Increased proportion of suppliers of direct material having signed Inwido’s Code of Conduct from 97.1% to 97.8%.

Climate Goals & Targets

Environmental Challenges

• Unprecedented price increases on input goods, strongly connected to the impact of the war in Ukraine on the energy market.
• Significant challenges faced by the e-Commerce Business Area due to capacity-increasing investments impacting efficiency and delivery capacity.
• Slowdown in the Industry market towards the end of the year.

Mitigation Strategies

• Implemented ongoing price increases in dialogue with customers.
• Took advantage of economies of scale by coordinating purchasing.
• In the final quarter of the year, the negative trend in the e-Commerce Business Area was reversed with profit rising and order intake increasing.

Supply Chain Management

Supplier Audits: 97.8% of suppliers of direct material signed Inwido’s Code of Conduct.

Responsible Procurement

• Code of Conduct for business partners
• Shared purchasing of input materials

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for energy-efficient products due to the energy crisis.

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy

Certifications: ISO 14001

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Inwido's products contribute to energy efficiency and reduced emissions, aligning with these goals.

Awards & Recognition

• Inwido’s sustainability award (2022 winner: Pihla Group)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Overall energy consumption fell by seven percent as a result of continued efficiency improvements in production
• Total carbon dioxide emissions remain at the same level as in 2022, excluding the acquisitions made during 2022 and 2023
• JABS Group reduced its CO2e emissions, Scopes 1 & 2 per window wing, by an impressive 91 percent between 2020 and 2022

Social Achievements

• 75% employee satisfaction was achieved in the Group’s annual employee survey, Great Place to Work. This is an improvement of two percent since 2022
• Number of accidents with lost working days decreased over the year, and the trend is continuing downwards
• Short-term absence decreased during the year

Governance Achievements

• Inwido followed the Swedish Corporate Governance Code in all respects in 2023
• A double materiality analysis was conducted to identify material topics within the CSRD

Climate Goals & Targets

Environmental Challenges

• Restrained investments in the new construction market
• Cautious willingness to invest on the consumer side due to high inflation, raised interest rates and reduced real wages
• Sharp slowdown in the new build markets in Sweden and Finland
• Turbulent consumer market in the UK

Mitigation Strategies

• Good cost control and price increases
• Business units adapting capacity according to fluctuations in demand
• Tough decisions with respect to cost savings
• Ongoing market investments in both new and existing markets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for business partners
• Supplier-specific emission factors for data collection

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• The green transition is driving growth, and interest in energy efficiency improvements remains high among both consumers and politicians

Reporting Standards

Frameworks Used: EU Taxonomy, CSRD, SBTi

Certifications: ISO 14001

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient windows and doors

Awards & Recognition

• JABS Group won the annual sustainability award