Nolato’s long-term sustainable development goals cover social responsibility, environmental responsibility and responsible business conduct.
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Glenn Svedberg
Group Sustainability & Technology Director
SUSTAINABLE DEVELOPMENT
Goals for sustainable development
The Group has 10 long-term sustainable development goals, based on Nolato’s overarching strategy and business. These are integral to Nolato’s sustainability strategy and linked to the UN Sustainable Development Goals and Agenda 2030.
Social responsibility
Nolato has a long-standing tradition of taking responsibility and creating value for society. Value creation is found particularly in the number of jobs we generate via our global operations, and the sustainable solutions we offer our customers, but also in the active engagement we pursue in the local communities in which we have a presence. Our value creation is built on our responsibility, which is also one of the Basic Principles detailed in The Nolato Spirit. Applying sound business ethics, protecting our employees’ safety and respecting human rights makes us a good employer, a responsive cooperation partner and a considerate corporate citizen.
Safe workplaces
TARGET
- No-one should be injured at work, and the number of workplace accidents must be minimized.
MEASURES TO ACHIEVE GOAL
- Systematic and preventive safety work with relevant and regular training.
- Systems for registering and managing near misses should be in place at all units.
OUTCOME IN 2023
- 6.4 (4.5) accidents resulting in absence per million hours worked (LTAR).
- Systems for recording near misses are in place at 97% (97) of units and there are certified health and safety systems in place at 7 (7) units.
Human rights and gender equality
TARGET
- There should be no cases of infringements of human rights, discrimination or forced labor.
- The proportion of women in management positions should increase at all levels of Nolato.
- Nolato should be regarded as an attractive employer.
MEASURES TO ACHIEVE GOAL
- Zero tolerance of all forms of discrimination and harassment. No infringement of human rights or cases of child or forced labor are permitted. Code of Conduct training for all employees. Information about Nolato’s values, corporate culture and Code of Conduct are part of the onboarding process for all employees.
- Female candidates should be prioritized for management appointments in cases of equal skills and suitability.
- Continual provision of information to employees via various channels, such as quarterly or departmental meetings, staff newsletters and intranet. Training for employees’ personal development. Prioritization of in-house recruitment for new positions.
OUTCOME IN 2023
- No cases of infringements of human rights were recorded.
- Women make up approximately 29% (28) of local management teams, of which 2 (2) subsidiaries have a female managing director.
- 66% (60) of Nolato’s employees had a documented employee appraisal. 23 hours of training time per employee
Environmental responsibility
Being a responsible company essentially means that we take responsibility for how our entire business affects our operating environment, both now and in the future. It starts with how economical we are with our use of resources, so that our operations and production are conducted with the minimum possible negative impact on the environment. With this as our foundation, we can make a positive contribution to our customers’ environmental impact, by offering advice and suggestions and, at times, challenging the customer to adopt new approaches in an effort to identify the most eco-friendly solution.
Energy
TARGET
- More efficient energy use; by 2025 usage should decrease by 55% compared with the average for 2011–2012 (GWh/net sales SEK).
MEASURES TO ACHIEVE GOAL
- Continued investment in more energy-efficient production equipment, infrastructure and lighting. Increased automation could mean higher electricity consumption in the longer term.
OUTCOME IN 2023
- Nolato’s energy usage has fallen by 50% since 2011–2012 (GWh/net sales SEK).
Carbon emissions
TARGET
- Greenhouse gas emissions from energy consumption (Scope 1 and 2) are to be reduced by 80% by 2025, compared with the average for 2011–2012 (tons CO2e/net sales SEK).
MEASURES TO ACHIEVE GOAL
- More efficient use of energy, installing heat pumps, procuring fossil-free electricity, installation of own solar panels, contracts with solar farms, and phasing out fossil fuels.
OUTCOME IN 2023
- Nolato’s greenhouse gas emissions have decreased by roughly 93% since 2011–2012 (tons CO2e/net sales SEK).
Chemical products
TARGET
- Hazardous chemical substances should be identified and, where possible, phased out.
MEASURES TO ACHIEVE GOAL
- A number of chemical substances have been identified as candidates to be phased out. Continued measures for the safe handling of chemical products are being implemented.
OUTCOME IN 2023
- During the year, some 20 (30) chemical products were replaced with alternatives that are better for the environment and for people’s health.
Climate impact: raw materials and products
GOAL
- There should be an increase in the percentage of bio-based and recycled raw materials. Greenhouse gas emissions related to products (Scope 3) should be reduced by 5% between 2020 and 2025 (tons/net sales).
MEASURES TO ACHIEVE GOAL
- The carbon footprint of products is being reduced through greater use of bio-based and recycled raw materials, together with designs that contribute to a circular economy. Nolato aims to be at the forefront of sustainability projects with customers and other stakeholders.
OUTCOME IN 2023
- During the year, the total amount of recycled material in our products increased to 1,201 tons (756), of which 25 tons (74) were bio-based, 1,122 tons (682) recycled and 54 tons (0) were mass-balanced materials. 3 (2) of the Group’s subsidiaries are certified to ISCC Plus and can supply products manufactured using mass-balanced material.
Science-Based Target for GHG emissions
GOAL
- Nolato AB commits to reduce absolute scope 1 and 2 GHG emissions 70% by 2030 from a 2021 base year.
- Nolato AB also commits to reduce absolute scope 3 GHG emissions covering purchased goods and services, capital goods, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting and upstream leased assets 25% by 2030 from a 2021 base year.
MEASURES TO ACHIEVE GOAL
- Resource efficiency, procuring fossil-free electricity, phasing out fossil fuels, increased share of biobased and recycled raw materials, collaboration with value chain to engage suppliers to purchase renewable electricity and sign up to SBTi, optimized logistics and selection of carbon-efficient raw materials.
OUTCOME IN 2023
- (new goal)
Responsible business conduct
At Nolato, responsible business conduct means that we take responsibility for our business by setting clear requirements for our operations and those of our suppliers. This is firmly rooted in our corporate culture, in which our Code of Conduct serves as the Group’s ethical compass, setting the direction for our conduct both within our organization and in our relationships with stakeholders. By acting consistently based on our values, we create confidence, making us a reliable partner that our customers can trust and want to involve in their development projects and their journey to greater sustainability.
Anti-corruption
GOAL
- Ensure training of employees in the Code of Conduct and anti-corruption measures. There should be no cases of bribery, corruption or cartel formation.
MEASURES TO ACHIEVE GOAL
- Use of preventive procedures and the Code of Conduct, as well as monitoring of compliance. Training in the Code of Conduct and anti-corruption measures. Information about Nolato’s values, corporate culture and Code of Conduct are part of the onboarding process for all new employees. Application of the whistleblower system throughout the Group.
OUTCOME IN 2023
- In 2023, all of the Group’s employees underwent training in the updated Code of Conduct, which includes anti-corruption. The annual evaluation of Group companies’ anti-corruption measures indicated a persistently high level of ambition. No incidents relating to corruption or inadequate business ethics were reported in 2023. Business partners in risk zones are continually analyzed as needed, in response to new restrictions. Our Trade Sanctions Policy was updated.
Customers
GOAL
- Nolato aims to maintain a leading position and be perceived as the customer’s first choice within sustainable development.
MEASURES TO ACHIEVE GOAL
- Trends and customer requirements within sustainable development should be identified and, where relevant, turned into practical measures. The overriding aim is to exceed customer expectations. Annual survey of customer satisfaction regarding customers’ perception of the company’s products and services, as well as future expectations.
OUTCOME IN 2023
- Interest in climate issues, and renewable or recycled raw materials grew in 2023, but things are developing slowly. Increased number of customer meetings in 2023 about solutions and alternatives that support sustainable development. Professional development and the use of digital tools to simulate products’ function and performance have helped optimize the products’ use of resources and enabled circular flows. A CO2e calculator that provides guidance on the choice of alternative solutions and materials with regard to carbon footprint has been put into use. Nolato received a Silver rating from EcoVadis in its latest evaluation of the company’s sustainability work (bronze) and progressed to 65 points (54).
Suppliers
GOAL
- By 2025, all strategic suppliers will be assessed according to Nolato’s guidelines for suppliers.
MEASURES TO ACHIEVE GOAL
- Assessment of Nolato’s strategic suppliers using an extensive questionnaire on management systems and sustainability.
OUTCOME IN 2023
- By year-end 2023, 68% of strategic suppliers had accepted Nolato’s Code of Conduct or had their own code of conduct corresponding to Nolato’s requirements. During the year, Nolato’s subsidiaries worked on implementing the Group’s guidelines for supplier categorization, which now also include geopolitical risk level.