Sustainability governance
Ultimately, the Group’s Board of Directors, is responsible, through Group Management, for Addtech’s overall, long-term sustainability targets. Addtech’s Head of Sustainability is responsible for continuously monitoring and reporting on development and key indicators and for supporting the companies with regard to sustainability. The overarching objectives are supplemented by the individual business areas and companies, which prepare sub-targets, action plans and activities. Our operational sustainability efforts are conducted in line with our well established corporate culture through decentralised responsibilities in our companies. Addtech practices active ownership through Board work and follow-up. Each year, the companies report their key indicators, detail their individual sustainability efforts, report on activities designed to achieve our shared 2030 goals. If deficiencies are identified, the companies apply appropriate measures with the support of the Group. In our acquisition process, sustainability is integrated into the Due Diligence process, and, to ensure that newly acquired companies are integrated into our Group-wide sustainability work, sustainability is included in our introductory programme for new companies (see page 24).
Sustainable business
Addtech has the ambition to be part of the transition to a more sustainable industry and to a more sustainable society. We perceive considerable business opportunities in transactions with a favourable external impact. We highly value building partnerships along our value chain to enable and optimise our contribution towards the transition to a more sustainable future and to increase the share of sales that contribute positively to development towards the sustainable development goals. Over the year, to safeguard long-term sustainable profitability, we trained the organisation in sustainability-related risks and opportunities, focusing on business development.
The purpose of the key indicator for sustainable business is to over time monitor the development of the share of sales contributing positively to sustainable development.
This year’s survey shows that 50 percent of Addtech’s sales contribute positively towards the UN Sustainable Development Goals. On pages 19-22, you can read more about examples of our offerings and products contributing to development towards the sustainable development goals.
Sustainable organisation
We want to ensure that we are well-equipped for the future. Our employees are our most important asset. They are driven by helping their customers identify the best technical solution in a strong entrepreneurial spirit. Our companies make a positive contribution to the local communities in which they operate by being attractive, committed employers who support, for example, local youth unions or who collaborate with schools. Several of our Swedish companies participate in the Tekniksprånget (Technology Leap) initiative, with the aim of increasing young people’s interest in applying to engineering programmes.
In our view, we face major global challenges in reducing our collective impact on climate and are therefore working to ensure that Addtech’s impact is reduced. We take responsibility for reducing our negative impact in terms of development towards the sustainable development goals and have identified our impact as primarily concerning goals numbers 13 and 8. Here, we work systematically to reduce our impact on the climate and to safeguard favourable production conditions at the supplier level.
Climate impact
We work systematically to streamline and reduce our consumption of resources, and our emissions of greenhouse gases to achieve our climate goal. During the year, we held internal trainings in climate impact and our climate objective is integrated into our strategic planning.
Emissions from our own production and operations (Scope 1 and 2) account for a minor part of Addtech’s total climate impact. At the same time, we maintain control within our own operations, continuing the process of upgrading our own vehicle fleet, enhancing energy efficiency and switching to renewable energy sources. Our companies have varied operations and different geographical conditions and it is therefore important that, in accordance with our decentralised model, the companies determine their own targets and activities in line with our 2030 goals.
Addtech’s reduced carbon dioxide intensity of 11 percent is primarily due to reduced business travel and an upgraded data-reporting process. The clear majority of green house gas emissions derive from freight transport (Scope 3), within which, air freight accounts for 41 percent. The past year’s pandemic has entailed deviations from normal transport planning. Freight conditions were challenging over the year and our companies have had limited opportunities to influence transport modes and, consequently, greenhouse gas emissions. In the future, the focus will be on optimising loading, planning and mode of transport to reduce our climate impact. From our perspective, we have the opportunity to influence our value chain and our customers’ choice of transport mode, an initiative from one of our companies having spread through the Group (see page 40).
The pandemic has had a significant impact on business travel, with only business-critical journeys being made when circumstances have allowed. Our organisation has adapted to meeting digitally, both internally and externally. We will continue to call for this new behaviour, even once travel restrictions have been eased we will continue to take efforts to reduce business travel significantly. This has additional favourable effects, such as reduced costs, higher efficiency and, in some cases, a better work-life balance.
We are aware that the production of purchased products, and the use of the products sold, constitute a relevant share of our indirect climate impact. In the absence of standardised data and calculation tools, we view the area as challenging, although it is, at the same time, an area that we prioritise to develop.
Efficient resource management
Addtech’s Sustainability and Envionmental Policy is the basis for how our companies are to integrate environmental issues into their operations. Important areas include optimising and reducing the amount of energy, water, regulated products and reducing the amount of used waste. Several of our companies are certified in accordance with ISO 14001 and work in an integrated manner to systematically reduce their impact on the environment. One environmental incident was registered during the year, with corrective measures taken.
Gender equality and equal opportunities
Addtech has zero tolerance for all forms of discrimination, harassment, sexual harassment and bullying, and this is communicated in Addtech’s Equality & Diversity Policy and Code of Conduct and Supplier Code of Conduct. We seek to be an attractive employer that attracts skilled employees to secure a positive development and increased well-being. We are convinced that diversified teams are an important parameter in achieving this and, accordingly, seek employees with different backgrounds. We also seek to increase the proportion of women and promote female leadership. We currently have 19 percent (17) women in leading positions. The increase on the preceding year reflects an increased share of female Managing Directors and a clarification in the definition of “leading positions”, see page 144.
Health and safety
Addtech applies a zero vision when it comes to work-related accidents and illnesses. We foster a safe working environment, good health and well-being among all of our employees, including consultants and contract workers. We continuously follow up key indicators for health and safety at all of our companies. This year, the number of accidents reported increased from 32 to 38. None of the accidents had a serious outcome and all were followed up with corrective measures.
The pandemic brought new circumstances for safeguarding the health and safety of our employees. All of the companies have made adjustments based on their local conditions and guidelines to ensure that they have a good working environment. Over the year, we followed up on how our employees were affected during the ongoing pandemic and how they experienced the changed working conditions. Follow-up was carried out in connection with our recurring employee survey. The survey shows that 98 percent are satisfied with their company’s handling of the pandemic situation. The average absence due to illness of 3 percent remained unchanged from the preceding year.
Business ethics
Addtech has a clearly communicated zero tolerance for all forms of bribery, corruption and irregularities, applicable to all of our employees and partners. The foundation for our work in business ethics is our internal Code of Conduct and our Code of Conduct for Suppliers (Supplier Code), which includes an anti-corruption policy. The Code of Conduct and the Supplier Code are approved annually by the Board of Directors. The codes can be found on our website www.addtech.com. Read more about our Supplier Code on pages 45-47.
Alongside our core values, our Code of Conduct forms the basis for how we conduct business, behave and act in our day-to-day work and in our relationships with the external community. The Code encompasses all of the companies and all employees. The responsibility to counteract irregularities, and efforts in this direction, apply to the entire Addtech value chain, as communicated in the Code of Conduct and Supplier Code.
Whistle-blower function
We do not tolerate any form of irregularity in violation of any legislation or of our Code of Conduct. If this nonetheless occurs, our objective is to enable the reporting of violations of the Code of Conduct, the Supplier Code or of legislation, or suspicions thereof, in a simple and anonymous manner. Our whistle-blower service is available to all employees and external partners. All reports submitted are handled confidentially and professionally by an internal council and, if necessary, a third-party expert in accordance with established procedures. The follow-up of reported cases focuses on consequences, changes and preventive measures. In the event that a suspected violation would concern a member of the council, that individual is excluded from participating in the investigation, and an independent third party is engaged for the purposes of investigation.
The whistle-blower function has been implemented via our companies’ Managing Directors, who have informed their employees and union representatives. The whistle-blower function is available at www.addtech.com, in our Code of Conduct and Supplier Code and in our supplier follow-up platform.
Sustainable supply chain
Our companies’ supply chains are global and rely on a network of suppliers, with 78 percent of purchases being made within Europe. Purchases from Germany, Sweden, China and Hong Kong account for 45 percent of total purchasing volume. In some cases, global supply chains entail increased sustainability risks. Our supplier relations are often long-term in nature and are characterised by close cooperation on how the supplier’s products can be used in different customer applications. The collaboration benefits quality, price, lead times and customer satisfaction, while at the same time providing us with favourable conditions for constructive dialogue with suppliers regarding sustainability risks and further development.
The basis for cooperation with suppliers is our Code of Conduct for suppliers. In dialogue, we ensure that the requirements in our Supplier Code are minimum requirements in areas such as: human rights, working conditions, equal treatment, anti-corruption and the environment. During the year, we conducted an updated mapping of our suppliers. This mapping increases traceability, transparency and the ability to identify risks linked to different areas within the Supplier Code.
Supplier assessment
The work of evaluating suppliers based on the Supplier Code is decentralised in our companies, we train and support the organisation in the area and provide a platform for managing supplier follow-up and storing supplier data. Our companies use the various methods of risk analysis, self-assessments, evaluations and audits to varying degrees to follow up their suppliers.
- Risk analysis based on country-specific index, such as Transparency International, Environmental Performance Index and ITUC Global Rights Index. The risk analysis provides overall information on which areas require additional focus.
- Self-assessment and evaluation consists of questions to suppliers that cover our Supplier Code, where areas of zero tolerance are particularily weighted. In the self-assessment, documentation linked to certifications and legislation is recorded, with the focus being on management systems, conflict minerals and regulated substances.
- Sustainability audits are performed by third parties and often in collaboration with the customer. The pandemic has had a negative impact on the capacity to conduct on-site audits. If deviations are identified, each company is responsible for communicating such deviations to its suppliers and for producing a time-bound plan for corrective measures.
Prioritisation
All of Addtech’s areas of strategic priority are included within the three focus areas. The table below presents our most material sustainability areas and their relation to the UN Sustainable Development Goals. The questions are ranked according to the company’s and the stakeholders’ prioritisation based on the materiality and stakeholder analysis performed. All of the global goals are of significance to Addtech, but to be able to focus our efforts and drive them forward, prioritisation is necessary. Our material areas are followed up with GRI indicators and our own key indicators.
MATERIALITY ANALYSIS
To be able to work strategically and in a manner integrated with sustainable development, we update our materiality analysis and stakeholder dialogue regularly, and set out targets for our long-term work. The most recent materiality analysis was approved by Group Management in November 2019, with the aim of updating the analysis every three years.
Material to stakeholders
In connection with the materiality analysis, a stakeholder dialogue is held with prioritised stakeholder groups. The UN Global Sustainable Development Goals are used as a starting point for the dialogue. The dialogue comprises in-depth interviews and surveys in which the stakeholder groups respond to questions regarding which sustainability issues are of importance for them and regarding their expectations of Addtech’s continued sustainability strategy. They also have the opportunity to prioritise the sustainable development goals most important to those with whom Addtech works. The results are reported in the Y axis of the materiality matrix: Material to Stakeholders.
Material to Addtech
In a survey, the Board of Directors and Management Group for Addtech prioritises the sustainable development goals according to what goals can constitute risks, as well as business opportunities for the Group. The responses are then presented at a workshop with the Management Group where the relation between Addtech’s ambitions and stakeholder expectations are discussed. The results are reported in the X axis of the materiality matrix: Material to Addtech.
EU Taxonomy
The EU is working to develop the framework of the taxonomy, with the aim of channelling investment towards promoting sustainable development. The framework will affect the companies’ sustainability reporting. Stakeholders will request reporting of the share of sales in line with the criteria of the taxonomy.
Addtech follows the development of the framework for taxonomy, as well as the criteria that have been established. We have commenced the process of assessing the activities conducted within our companies and how well they fall under the criteria of the taxonomy. Addtech already reports the share of its sales contributing positively to development towards UN Sustainable Development Goals. We are working to integrate reporting under the taxonomy with existing reporting.
Climate-related information
For several years, Addtech has reported to the Carbon Disclosure Project (CDP) to ensure transparency in climate-related reporting. The Task Force on Climate-related Financial Disclosures (TCFD) is also a voluntary framework for businesses that want to increase transparency in their reporting on climate-related risks and opportunities and how this can affect profitability. Although Addtech is not a member of the TCFD, we do view it as important to be inspired by the TCFD’s recommendations to secure relevant information. Our reporting is not fully in line with the framework, and we consider estimating the financial impact from the climate impact to be challenging. Over the year, we conducted scenario analyses (RCP 8.5 and RCP 2.6) to support our organisation in future decision-making processes.
For Addtech, the management of climate-related issues is an important parameter for future business development. Addtech comprises some 140 companies and there are considerable variations within the Group, which represents a challenge in the implementation of climate-related risk and opportunity analysis. We have both producing companies and companies that focus on technical support and sales. Our reporting of climate-related risks and opportunities is important to us and our stakeholders, and we will ensure that climate analysis forms an integral part of our business to ensure long-term profitability.
The responsibilities of the Board of Directors and the tasks assigned to management
The Board of Directors bears the strategic responsibility for general governance in the area of sustainability. The board handles strategic areas linked to the organisation, such as investments and acquisitions. Climate-related issues are included, and managed, within our overall risk and opportunity analysis. For more information about our control model, read more in About Addtech and in Corporate governance. At the operational level, the CEO, Head of Sustainability, Group Management, as well as the Group’s companies and their employees, manage climate-related risks and opportunities. Head of Sustainability is responsible for transparent reporting and follow-up of climate-related areas.
Strategy
- Risks and opportunities identified in the area of climate. Climate-related risks and opportunities are relevant to Addtech and affect our companies to varying degrees due to the variation in the companies’ offerings. A general change is in progress within industry focused on climate-friendly alternatives and generating new opportunities and risks for Addtech. During the year, we performed a risk and opportunity analysis in the area of climate, with 2030 as the time frame (see table on page 140. The climate-related risks associated with realignment are predominantly reduced demand from customers in the transition to a more climate-friendly economy and dependence on business in potentially transformational markets. We identified a number of opportunities linked to the realignment to a more climate-friendly economy. Among other things, we see opportunities in markets such as the generation of renewable energy, waste management and the electrification of society.
- Impact on strategy and financial planning. Addtech has continued to implement its new vision and strategy, which includes reduced climate impact and measurable goals by 2030. Our climate-related risk and opportunity analysis is an important and integral part of our overall risk analysis. Addtech’s climate goal is to reduce our CO2 intensity by 50 percent by 2030. During the year, we conducted scenario analysis (for RCP 8.5 and RCP 2.6) and plan to introduce climate analyses for major investments.
Risk management
- Processes for identifying and evaluating climate-related risks and integration in general risk management. Head of Sustainability is responsible for identifying transition risks, physical risks and opportunities, as well as informing the CEO and Group Management about long-term and short-term changes. The major climate-related risks are integrated into Addtech’s annual risk management process. Head of Sustainability is responsible for communicating and updating the organisation on climate-related risks and opportunities.
- Processes for managing climate-related risks. Transition risks are managed in the annual strategy and activity planning with our companies. When relevant risks and opportunities are identified, they are discussed and activities determined. Processes for identifying, evaluating and managing climate-related risks are integrated into the organisation’s overall risk management. Addtech’s risk management includes identification, assessment and measures for managing climate-related risks. Head of Sustainability is responsible for the process and reports to the CEO and Group Management.
Measurements and goals
Addtech has set long-term climate-related goals and established relevant key indicators to follow developments. The key indicators are reported annually by our companies and follow-up takes place on the companies’ boards. Addtech uses external review of climate reporting. See table page 143 for emissions within Scope 1, 2 and 3.
Climate-related opportunities
The climate-related risks and opportunities identified are central to Addtech’s business strategy and we have identified a number of business opportunities. Together with our companies, we have the opportunity to have a positive impact on our customers’ efficiency and their reduced climate impact. Our products and solutions, for example, enhance energy efficiency, support the production of renewable energy and increase our customers’ resilience to climate change. Internally, we work for effective and climate-efficient freight transport, energy efficiency, purchasing of renewable energy and a growth strategy in climate-friendly markets.
| Transition risks | Material risks and potential effects | Mitigating activities ongoing (O), planned (P) |
| Policies and regulations | ||
| Increased taxes for carbon-intensive products, activities and services – increased operating costs for energy and freight transport. | Optimisation and streamlining of freight transport (O). Increased awareness and setting of targets for energy efficiency in companies with proprietary production (P). | |
| Increased reporting requirements, such as the EU Taxonomy – unclear criteria can cause difficulties in reporting. | Follow the development of reporting criteria for the EU Taxonomy and an analysis of Addtech based on established criteria (O). We work continuously to develop the reporting for all our companies (O). | |
| Technology | ||
| Substitution of existing products and services with more climate-friendly alternatives – reduced demand for products that may have a higher climate impact. | Strategy to increase awareness of the climate impact (O) of different products and services. | |
| Costs for transition to climate-friendly technology – investment risk. | Climate risk analysis in connection with all major investments (P). | |
| Market | ||
| Changed customer behaviours – may cause changes in the market. | Strategy to develop in sustainable business (O). | |
| Increased costs for raw materials – increased operating costs. | Strategy to increase awareness of the impact on climate and on pricing (O) of products and services. | |
| Reputation | ||
| Changed requirements from customers – lost sales. | Strong partnerships with key customers and suppliers regarding climate-related effects (O, P). | |
| Stigmatisation of certain markets – lost sales. | Strong partnerships with key customers and suppliers regarding climate-related effects (O, P). | |
| Increased demands from stakeholders – negative feedback. | Strategy to be in line with stakeholder requirements (O). | |
| Physical risks | ||
| Short-term | Increased consequences of extreme weather – increased operating costs. | Implementing physical risk analysis for key suppliers and for our companies (P). |
| Long term | Rising average temperature – increasing operating costs. | Implementing physical risk analysis for key suppliers and for our companies (P). |
| Rising sea levels – increasing operating costs. | Implementing physical risk analysis for key suppliers and for our companies (P). | |
| Changed precipitation patterns and major weather variations – increasing operating costs. | Implementing physical risk analysis for key suppliers and for our companies (P). |
Key indicators
For each focus area, Addtech sets long-term targets that are measurable and time bounded to 2030 in accordance with the sustainable development goals. By expressing this direction, we clarify where we want to go and the value that we generate. Aided by the continuous follow-up of our key indicators, we safeguard our development in the right direction.
In 2020, a process was conducted to increase transparency, data quality and reliability in our key indicators. This development ensures greater transparency in how our companies measure themselves in terms of environmental, social and economic sustainability and that this takes place in a uniform manner throughout the Group. During the year, all individuals responsible for reporting were trained in sustainability reporting. To ensure a reliable climate data process, the method was reviewed by a third party based on the GHG protocol.
| KPI | 2020/2021 | 2019/2020 | 2018/2019 | |
| The business | ||||
| Sustainable development | ||||
| Percentage of sales from business that contributes to sustainable development (%)* | 50 | 40 | - | |
| Distribution by business area (%) | Automation: | 17 | 32 | - |
| Components: | 14 | 29 | - | |
| Energy: | 23 | 19 | - | |
| Industrial Process: | 29 | 12 | - | |
| Power Solutions: | 17 | 8 | - | |
| Distribution by global goal (SDG) (%) | SDG 3: Good health and well-being: | 13 | 4 | - |
| SDG 7 Affordable and clean energy: | 27 | 1 | - | |
| SDG 8 Decent work and economic growth | 7 | 28 | - | |
| SDG 9: Industry, innovation and infrastructure: | 23 | 38 | - | |
| SDG 11: Sustainable cities and communities: | 12 | 9 | - | |
| SDG 12: Responsible consumption and production: | 5 | 2 | - | |
| SDG 14: Life below water: | 6 | 18 | - | |
| Other SDG: | 7 | 1 | ||
| Economic value | ||||
| Financial value generated (SEK million) | 11,336 | 11,735 | 10,148 | |
| Financial value distributed (SEK million) | 10,977 | 11,510 | 9,787 | |
| Of which, manufacturing costs (SEK million) | 8,221 | 8,725 | 7,398 | |
| Of which, salaries and remunerations (salaries, pensions, payroll taxes, social security contributions) (SEK million) | 2,102 | 2,114 | 1,840 | |
| Of which, disbursements to creditors (SEK million) | 65 | 62 | 50 | |
| Of which, disbursements to shareholders (SEK million) | 269 | 336 | 269 | |
| Of which, disbursements to goverments (SEK million) | 320 | 273 | 230 | |
| Remaining in the company (SEK million) | 359 | 225 | 361 | |
| KPI | 2020/2021 | 2019/2020 | 2018/2019 |
| ORGANISATION (SOCIAL) | |||
| Diversity & equal opportunity | |||
| Proportion of women in leading postions (%)* | 21 | 17 | 16 |
| Proportion of women in administration, finance & purchasing (%) * | 65 | 65 | 66 |
| Proportion of women in sales (%) * | 15 | 14 | 14 |
| Proportion of women in technical service, support, production, warehousing (%) * | 18 | 19 | 21 |
| Proportion of women, total (%) | 26 | 26 | 26 |
| Proportion of employees who ever felt discriminated (%)* (Survey is done every two years) | 2.3 | - | 2.3 |
| Number of reported whistle-blower cases* | 6 | 0 | 0 |
| Employment | |||
| Average number of employees | 3,068 | 2,913 | 2,590 |
| Proportion of permanent employees (%) | 98 | 97 | 98 |
| Proportion of full-time employees (%) | 94 | 94 | 94 |
| Personnel turnover (%) | 13 | 10 | 12 |
| Personnel turnover, women (%) | 13 | 10 | 13 |
| Personnel turnover, men (%) | 13 | 10 | 11 |
| Health & safety | |||
| Absence due to illness (%) | 3 | 3 | 3 |
| Number of accidents | 38 | 32 | 32 |
| Number of lost days due to accidents | 178 | - | - |
| Number of fatal accidents | 0 | 0 | 0 |
| Training & development | |||
| Total number of invested training hours | 23,305 | 24,137 | 22,585 |
| Number of invested training hours/employee | 7.60 | 8.29 | 8.72 |
| Percentage of invested training hours per female employee, weighted gender distribution (%) | 57 | 54 | 52 |
| Percentage of invested training hours per male employee, weighted gender distribution (%) | 43 | 46 | 48 |
| Percentage of documented performance and development interviews (%) | 60 | 63 | 63 |
| KPI | 2020/2021 | 2019/2020 | 2018/2019 |
| ORGANISATION (ENVIRONMENT) | |||
| Emissions of greenhouse gases* | |||
| Carbon dioxide intensity (total emissions tonnes CO2e/net sales, SEK millions) | 2.2 | 2.5 | 2.5 |
| Total emissions (tonnes CO2e) | 25,165 | 29,182 | 25,808 |
| SCOPE 1 (tonnes CO2e) | 1,910 | 2,071 | 1,869 |
| Emissions from own vehicle fleet (tonnes CO2e) | 1,356 | 2,071 | 1,869 |
| Emissions combustion of fuels (tonnes CO2e) | 554 | - | - |
| SCOPE 2 (tonnes CO2e) | 3,395 | 3,979 | 3,713 |
| Emissions energy consumption - Location Based Method (tonnes CO2e) | 3,395 | 3,979 | 3,713 |
| Emissions energy consumption - Market Based Method (tonnes CO2e) | 4250 | N/A | N/A |
| SCOPE 3 (tonnes CO2e) | 19,860 | 23,132 | 20,226 |
| Emissions freight, upstream & downstream (tonnes CO2e) | 18,733 | 18,362 | 15,930 |
| Emissions freight, upstream (tonnes CO2e) | 10,581 | 9,892 | |
| Emissions freight, downstream (tonnes CO2e) | 7,781 | 6,038 | |
| Whereof data from carrier suppliers | 45 | - | - |
| Whereof data calculated using distance & spend based method | 55 | - | - |
| Business travel emissions, air & train (tonnes of CO2e) | 1,021 | 4,770 | 4,296 |
| Emissions extraction, production and transport of purchased fuels (tonnes CO2e) | 106 | - | - |
| Energy consumption (Scope 2) | |||
| Total energy consumption (MWh) | 26,043 | 24,935 | 23,184 |
| Whereof electricity (MWh) | 16,420 | 16,317 | 15,595 |
| Whereof heating (MWh) | 9,623 | 8,618 | 7,589 |
| Share of electricity from renewable sources (%) | 63 | 59 | 59 |
| Energy consumption in relation to net sales (%) | 2.3 | 2.1 | 2.3 |
| KPI | 2020/2021 | 2019/2020 | 2018/2019 |
| THE SUPPLY CHAIN | |||
| Supplier evaluations* | |||
| Percentage of purchasing volume where the Supplier Code of Conduct has been signed (%) | 49 | - | - |
| Percentage of purchasing volume where suppliers have participated in a sustainability assessment based on the Supplier Code of Conduct (%) | 24 | - | - |
| Percentage of purchasing volume where suppliers have participated in a sustainability audit (%) | 11 | - | - |
| Percentage of purchasing volume where a sustainability dialogue has occured (%) | Divided the question into three for increased precision - see above and calculation methods | 51 | - |
| * see calculation method | |||
Calculation methods
Percentage of sales from business that contributes to sustainable development
Our companies are responsible for reporting a mapping of their product and service offerings with a positive impact on the UN Sustainable Development Goals. Sales from above, divided by total sales, provides the share contributing to sustainable development. The percentage has been rounded to the nearest ten. The reporting process has been further developed compared with the preceding year, during which an estimate was made at the business area level. The year’s reporting process showed that some companies’ sales are related to resellers or distributors. Because this causes difficulties in obtaining knowledge regarding the end customer’s area of use, we exclude this group.
Proportion of women, leading positions
The calculation consists of the number of women working in management groups at Group and company level, in relation to the total number of employees that work in management groups. Employees in management groups must be entitled to make decisions to be counted as holding “leading positions”. This represents a clarification of the definition for “leading position” compared with the preceding year, when a proportion of the companies solely reported the CEO and vice CEO.
Proportion of women, by personnel category
To take note of employees with more than one area of responsibility, the personnel categories are weighted based on the amount of time devoted to each position.
Proportion of employees who ever felt discriminated
The number of responses of the nature “Disagree” to the statement “I have never been discriminated against at work” is set in relation to the number of employees who participated in the employee survey. The question is posed in the employee survey carried out every second years.
| Area | Number of reported cases: | Number of investigations completed with implemented measures |
| Business ethics related (e.g. corruption, anti-trust) | 1 | - |
| HR-related (e.g. discrimination and leadership related) | 5 | 5 |
| Other | - | - |
All cases were reported to an external whistle-blower function. The cause of the whistle blowing may relate to any kind of impropriety or irregularity that is in conflict with our Code of Conduct.
Number of accidents
For the calculation of the number of accidents, each company in the Group has reported the number of accidents that relates to the work, but not accidents caused during travel to and from work.
Supplier evaluations
This year, the data collection method was developed by seperating last year’s metrics for supplier assessment into three areas: signed Supplier Code of Conduct, supplier evaluation and sustainability audit.
- Share of purchase volume for which Addtech’s Supplier Code of Conduct has been signed – for cases where the supplier cites its own Supplier Code and internal code, a comparative analysis has been performed. This is included as our companies have suppliers who are large multi-national companies where the opportunity to influence is smaller.
- Share of purchase volume for which the supplier has participated in a sustainability assessment based on the Supplier Code – the supplier makes a sustainability self-assessment in the form of a survey in which the questions cover Addtech’s Supplier Code of Conduct. The supplier then receives a rating on sustainability.
Emissions of greenhouse gases
Addtech’s emissions are calculated according to the Greenhouse Gas Protocol (GHG protocol) and are reported in accordance with three different scopes. The precautionary principle has been applied to all calculations.
Scope 1 pertains to direct emissions from operations owned and controlled by Addtech. The operational control method has been applied.
- The kilometres driven by the vehicle fleet are calculated with average emissions of 124 g Co2 e/km collected from leasing suppliers in the Nordic region.
- Combustion of fuels was calculated applying the conversion rates and emission factors stated by the Swedish Energy Agency and the Swedish Environmental Protection Agency.
Scope 2 pertains to indirect emissions from purchased and consumed electricity, heating and cooling. Emissions are reported in accordance with both the location- and market-based method, where historical location based emissions have been recalculated.
- Emission factors for electricity are from AIB, IEA and country-specific reports.
- For district heating, an average emission factor for Europe is applied: 112 CO2eg/kWh.
- District cooling is mainly produced through a compression process and therefore the country mix for electricity is divided by three to calculate emissions.
- Electricity consumption by the electric cars in the vehicle fleet is also reported in Scope 2, where the calculation is based on each km driven consuming 19 g CO2e.
Scope 3 pertains to indirect emissions from sources that are not owned or controlled by Addtech. The freight calculations (categories 4 and 9) were further developed on the basis of three methods: data from freight companies and the spend and distance-based calculation methods. Freight emissions, where the supplier/customer is responsible for the transport, are part of the data we compile and of our climate impact. The figure is not included in the table due to the challenge of reliable data.
- EcoTransit’s calculator was used to calculate the distance-based method.
Calculations for business travel (category 6) include travel by air and rail, with air accounting for 99.8 percent of emissions.
- Air travel is calculated using the ICAO Carbon Emissions Calculator tool, where we calculated with RFI factor 2 and recalculated historical data to include the high altitude effect.
- For rail travel, an average European factor of 28g CO2e/km was applied, that is provided by the European Environment Agency (EEA).
Calculations from the extraction, production and transport of fuels (category 3) refer to fuel that has been purchased to produce energy in operations.
- Calculated with the help of the conversion rate and emission factors provided by the Swedish Energy Agency and the Swedish Environmental Protection Agency.