Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Profitable Growth

Environmental Achievements

• Started measuring the carbon footprint at Group level (19,924 t CO2e emissions (scope 1 & 2))
• 24% of total energy use from renewable energy

Social Achievements

• Established long-term objectives and measurable key ratios for people, environment and profitable growth
• Launched Indutrade Academy, an in-house leadership program
• Implemented Code of Conduct in 96% of Indutrade's companies

Governance Achievements

• Strengthened sustainability efforts and identified long-term objectives
• Implemented a sustainability reporting platform
• Conducted a comprehensive strategic risk analysis

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing uncertainty and market variations
• Brexit and US election affecting business climate
• Lower demand in engineering industry, particularly automotive
• Supply chain disruptions
• Reduced demand due to nationwide shutdowns and production facility closures

Mitigation Strategies

• Close dialogue with subsidiaries for support and local decision-making
• Cost reduction programs
• Temporary layoffs and redundancy support
• Extension of short-term loan and expansion of long-term credit commitments
• Increased focus on digitalisation and sustainable development

Supply Chain Management

Supplier Audits: 72% of Indutrade's companies have entirely or partially included suppliers and partners to be covered by the Code of Conduct

Responsible Procurement

• Code of Conduct for Suppliers and Partners

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather changes and natural disasters

Transition Risks

• Changed environmental legislation

Opportunities

• Business opportunities linked to sustainability

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation

Certifications: ISO 14001, ISO 9001, ISO 13485, ISO 17025, OHSAS 18001

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16

Products and services that help customers save energy, water, materials and CO2; contribute to safer work environment and better health; promote local growth and create jobs; ensure fair and ethical operations; strive for non-discrimination and equal opportunity.

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Profitable Growth

Environmental Achievements

• Reduced CO2 emissions (Scope 1 & 2) to 19,766 tonnes of CO2e from 19,924 tonnes in 2020. Emission intensity improved by 13% compared to 2020.
• Increased share of renewable energy to 29% from 24% in 2020.

Social Achievements

• Improved injury frequency rate to 1.8 from 3.2 in 2020.
• Increased percentage of companies measuring employee satisfaction to 64% from 58% in 2020.
• Percentage of subsidiaries with women on the board increased to 21% from 17% in 2020.

Governance Achievements

• Implemented a Code of Conduct, with 97% of companies having implemented it in 2021.
• Established an external whistleblower function, receiving and handling eight cases in 2021.
• No incidents of corruption were reported in 2021.

Climate Goals & Targets

Environmental Challenges

• Disruptions in supply chains, component shortages, rising supplier prices, pandemic restrictions, and higher sickness absence.
• Climate change impacts and related risks.

Mitigation Strategies

• Decentralized business model allowing for quick, local decisions to mitigate supply chain disruptions.
• Planning to include Scope 3 emissions in data collection in 2022 and consider joining the Science Based Targets initiative (SBTi).
• Conducting an overall analysis of climate-related risks in 2022.

Supply Chain Management

Supplier Audits: 74% of companies had fully or partially included third parties to be covered by the Code of Conduct in 2021.

Responsible Procurement

• Code of Conduct for Suppliers and Partners

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Transition Risks

• Changes in environmental legislation, taxes and demand

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (22% of companies)

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• SDG 4
• SDG 8
• SDG 9
• SDG 13

Indutrade contributes to these SDGs through competence development, safe working conditions, resource efficiency, and climate action.

Sustainable Products & Innovation

• Advance Welding’s environmentally sustainable product Efuze – a battery operated electrofusion machine

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Products & customers

Environmental Achievements

• Started measuring relevant Scope 3 categories to gain a more thorough understanding of our climate impact.
• Joined the Science Based Targets initiative (SBTi) and formally committed to developing targets and reducing emissions in line with climate science.
• Overall goal of being carbon dioxide neutral within Scope 1 and Scope 2 by 2030.
• Share of energy from renewable sources increased to 33% (from 29%).
• Emission intensity improved to 0.74 (from 0.91) tCO2e/SEK million net sales.

Social Achievements

• Launched Indutrade Sustainability Awards.
• Integrated sustainability as a theme in leadership programmes.
• Percentage of companies monitoring employee satisfaction and engagement was 76% (increased by twelve percentage points compared to 2021).
• Met the goal of retaining at least 85% of employees in the Group (employee turnover was 12%).
• Percentage of companies with established management teams increased to 87% (from 74%).

Governance Achievements

• Further development of sustainability strategy, targets and KPIs.
• Further development of the process for monitoring business areas and the sustainability performance of our companies.
• More focus on climate as a strategic focus area via additional training, support and follow-up.
• All 16 companies acquired during the year were thoroughly evaluated from a sustainability perspective.

Climate Goals & Targets

Environmental Challenges

• Disturbances in the supply chains, component shortages and a troubled world situation as a result of the war in Ukraine.
• Supply chain disruptions.
• Lack of diversity in the workforce.

Mitigation Strategies

• Increased inventory levels to ensure good service to customers.
• Continuous, structured support to our companies in focus areas like sustainability, innovation, business development and product development.
• Expanded organisational capacity by recruiting acquisition resources, board members and key personnel to the business areas.
• Further developed leadership and competence development, knowledge-sharing and networking between our companies.
• Launched training on diversity and inclusion.

Supply Chain Management

Supplier Audits: 69% of companies have a process for follow-up with key suppliers regarding sustainability (including human rights)

Responsible Procurement

• Code of Conduct for suppliers and partners.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Transition Risks

• Changes in environmental legislation, taxes and demand

Opportunities

• Market transition towards more energy and climate-efficient solutions

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (69% of manufacturing companies)

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Battery-powered electrofusion welding machines

Awards & Recognition

• Nominated as one of the 2023 career companies

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Products & customers

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 11% in absolute terms
• Increased share of renewable energy to 39%
• Improved energy intensity to 3.88 MWh per SEK million net sales
• Reduced carbon dioxide intensity by 24%

Social Achievements

• Named a Career Company in both 2023 and 2024
• Increased percentage of companies monitoring employee satisfaction and engagement to 88%
• Reduced injury frequency rate to 1.0
• Increased percentage of companies with established management teams to 90%

Governance Achievements

• No incidents of corruption were reported
• 97% of Indutrade’s companies had routines for ongoing implementation of the Code of Conduct
• All nine companies acquired during the year were thoroughly evaluated from a sustainability perspective

Climate Goals & Targets

Environmental Challenges

• Inflation
• Supply chain disruptions (though considerably reduced in 2023)
• Competition for talent
• Achieving a reduction in absolute terms of emissions due to continuous growth via acquisitions
• Measuring Scope 3 emissions
• Ensuring regulatory compliance across a decentralized model

Mitigation Strategies

• Successful pricing efforts
• Active work to reduce inventory levels
• Development programmes and training, succession planning, recruitment, diversity and inclusion initiatives
• Intensified efforts via concrete guidance to companies, targeted dialogue, and efforts directed at companies with the largest emissions
• Launched a climate training program
• Development of processes for reporting and monitoring sustainability performance, preparation for CSRD, expanded Scope 3 reporting, active knowledge sharing in various sustainability networks

Supply Chain Management

Supplier Audits: 75% of companies have a process for reviewing the sustainability efforts of their key suppliers

Responsible Procurement

• Code of Conduct for Suppliers and Partners

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Transition Risks

• Changes in environmental legislation, taxes and demand

Opportunities

• Market transition towards more energy- and climate-efficient products and solutions
• Offering sustainable materials and products

Reporting Standards

Frameworks Used: UN Global Compact, CSRD (preparing for)

Certifications: ISO 14001 (more than 25% of companies)

Third-party Assurance: PricewaterhouseCoopers AB

Awards & Recognition

• Indutrade Sustainability Awards (GPA Flow system AS, Verplas Ltd and VES Ltd)