Business Overview

Vision, strategies, principles, values and global drivers.



Our vision is to create world-class solutions in sustainable energy.

Our mission is to offer the market high-quality, innovative energy-efficient products and system solutions through our three business areas. This work builds on the NIBE Group’s wide-ranging capabilities in product development, manufacturing and marketing.

The Group’s four financial targets


Our overriding objective is to combine strong, sustainable growth with healthy profitability, creating value growth for shareholders. We also aim to be an interesting and stimulating workplace for employees, and attract satisfied customers who value the peace of mind that products from the NIBE Group provide. Our operations will be characterised by openness and responsibility.


Operating margin

The operating profit must be at least 10% of sales over a full business cycle in each business area. 



The operating margin must be at least 10% to ensure operations have the right stability and flexibility. This is one of the cornerstones of NIBE to ensure long-term positive development and continuous growth.


During the past five years, the average operating margin has been 14.8% for NIBE Energy Systems, 8.0% for NIBE Element and 12.1% for NIBE Stoves.


operating margin



Average year-on-year growth must be 20%, half of which must be organic and half acquired.



Half of the targeted average year-on-year growth must be organic. Growth stagnation is a threat to the maintenance of good, sustainable profitability. However, acquired growth balances this as it is usually less than 10% in good times and greater than 10% in difficult times.


During the past five years, total average growth has been 15.3%.





The average annual return on equity over a business cycle must be at least 20% after standard deductions for tax.



Good return on equity contributes to a stable ownership structure and share price, and enhances our ability to attract further capital.

During the past five years, the average return on equity has been 17.3%.


Return on Equity


Equity/assets ratio

The equity/assets ratio must not fall below 30%.



A good equity/assets ratio shows that the Group has a strong financial position. This is also a necessity in a Group with strong growth.


During the past five years, the average equity/assets ratio has been 39.6%.


The Group’s four sustainability targets


Development of sustainable products. Greater positive environmental impact of our products

The target is for 55% of our sales to consist of LCE**-classified products by the end of 2017.


During 2015, 10 of our total of 25 product groups were included in the FTSE LCE index. 49% (43%) of our total sales consisted of FTSE LCE-classified products.



Care for people. Safe workplaces

Our long-term goal is zero accidents, of course. The target for 2016 was achieved in 2015. We have therefore updated the target to an accident rate of less than 6 accidents per million hours worked by the end of 2018.


The result in 2015 was 8.5 (10.6) accidents per million hours worked. This is a decrease of 28 accidents on 2014. 

Our work includes increasing the proportion of companies that have management systems for health and safety, performing more risk analyses and preventive work with better incident reporting. 



Managing natural resources. Management system

All of our production companies must have certified management systems for ISO 9001 (quality) and 14001 (environment) before the end of 2016. Recently acquired companies have two years in which to become certified. Companies with fewer than ten people in the production department are exempt from the certification requirement.


Three certificates were issued in 2015: two for ISO 14001 and one for ISO 9001. This means that 23 certificates need to be issued in 2016 for 20 companies, out of a total of 41, if we are to reach our target. The assessment is that there is a good probability of the target being achieved. 



Care for the environment. Improved energy efficiency

We want to reduce energy use in our own plants by investing in more efficient new technology. The target is to reduce energy use by 30% in MWh per MSEK of sales by 2020 compared with 2013, which amounts to 10 MWh/MSEK.


Use per SEK of sales has decreased to 12 (14) MWh per MSEK. In 2015, energy surveys were conducted at four companies, and the objective for 2016 is to conduct energy surveys at a further five companies. 

We are working to include all of our plants in the programme for reduced energy use.

We have divided our strategy into seven different focus areas to clarify the approach that is required and the methods to be used.


is maintained through:

  • Faster growth than competitors
  • Optimising costs and capital
  • High levels of value added
  • Reducing the use of resources and increasing recycling
  • Brand-building
  • Positioning on several continents
  • Internal and external benchmarking
  • Synergy effects of completed acquisitions.




will occur through:

  • Increasing our market share in selected markets
  • Investments in new products and technology
  • Strategic acquisitions of strong brands and products that complement our range in selected markets.




is strengthened through:

  • Rapid pace of product development
  • Manufacturing high-quality products specially developed to reduce environmental impact
  • Continuous mechanisation and automation in production
  • Flexible wage systems
  • Standardisation, modularisation and the coordination of components
  • Economies of scale within purchasing and production
  • Products with modern design, high performance and good quality
  • Professional, objective marketing with an international appeal
  • High quality
  • Continue digitalisation in all product areas.



will characterise product development and manufacturing, choice of materials, transport, product functionality and recycling at the end of a product’s useful life.



Sincerity and an ethical attitude 

will apply to both internal relations and external relations with shareholders, customers, suppliers, authorities and society in general. 



Customer satisfaction and peace of mind             

  • is our constant goal, to be achieved through:
  • A broad range of products 
  • Optimum product solutions tailored to each individual customer 
  • The best service and customer support 
  • High quality
  • Competitive prices. 



Employee commitment

is strengthened through: 

  • Training and developing individual employees and the organisation as a whole
  • Further development of key employees
  • A stake in the Group.

Growth through acquisitions 

NIBE operates in a relatively mature market. This means that the total growth target of 20% cannot be achieved solely through organic growth. We have therefore decided that the average organic growth target of 10% must be combined with a target for growth through acquisitions that averages 10% a year, which we also believe involves a reasonable element of risk. Since the stock market listing, acquired growth has amounted to an average of 11% annually.


Acquisition criteria

We constantly analyse opportunities for acquisitions. The decisive factor behind any acquisition is that it must add new technology, enable us to establish a presence in new geographical markets and/or increase our market presence.


The basic criteria are that a candidate for acquisition must have 


  • a strong financial, market and technological position
  • competent management 
  • a real entrepreneurial spirit 
  • and that it must offer further growth potential within the framework of NIBE’s strategies. 


Good entrepreneurship holds the key to opening up future opportunities by constantly arousing curiosity, inspiring creativity and commitment. In many instances, keeping companies and management intact in the environments where they were originally established not only provides the optimum conditions for them to realise their full potential, but also helps develop and invigorate the local communities in which they play such an important part.


Acquisition model

 The analysis phase is detailed yet rapid as our three sectors are so clearly defined and we have a veritable arsenal of key figures with which to make comparisons. 


 In the implementation phase there is always complete transparency about our intentions with the acquisition. Our very clear and open approach as regards the information we provide on our management philosophy and strategy often facilitates the process.

 In the integration phase we aim to retain not only brands, but also skilled employees at every level. The primary synergies are found on the purchasing side and in productivity improvements to the manufacturing process.


Our ambition is to create a decentralised organisation where new additions to the Group continue to enjoy considerable autonomy. We want integration into the NIBE Group to be about exploiting the benefits of belonging to a much larger cluster of companies, and adopting the NIBE Group’s goals and strategies.

Our Business Principles

We want to combine strong and sustainable growth with good profitability. Through this we increase value for our shareholders and create the conditions for continued good long-term development.  


Read more about Our Business Principles

  • Our business principles

    Our Business Principles

    Our vision is to create world-class solutions in sustainable energy. We want to combine strong and sustainable growth with good profitability. Through this we increase value for our shareholders and create the conditions for continued good long-term development.

    Our management philosophy is based on success factors for growth through profitability and responsibility. The basic concepts are gathered under the term Our Business Principles.

    Being familiar with NIBE's Business Principles is important to all of us. This applies whatever your position in the Group.

    Gerteric Lindquist

  • Our business principles

    Business concept

    Responsible expansion with a focus on internationalisation.

  • Our business principles


    Our vision is to create world-class solutions in sustainable energy.

  • Our business principles

    Business idea

    Our business idea is to offer the market high quality, innovative and energy efficient products and system solutions within our three different business areas.

    The basis for this is the NIBE Group's broad expertise in product development, manufacturing and marketing.

  • Our business principles


    Our overall goal is to combine strong and sustainable growth with good profitability and create value growth for the shareholders.

    We must also be an interesting and progressive workplace for the employees and have happy and secure customers. Our operations must be characterised by transparency and responsibility

  • Our business principles

    The Group has four economic objectives;

    Growth must average 20 percent per year, of which half should be organic and half through acquisitions.

    Operating profit for each business area must amount to at least 10 percent of sales over a business cycle.

    Return on equity must amount to at least 20 percent over a business cycle. The equity ratio in the Group must not be less than 30 percent.

  • Our business principles

    Our success factors

    Our management philosophy is based on eight basic ideas that create the power for continued expansion through profitability. Knowledge of our management philosophy is extremely important for both new employees and acquired units in order to understand NIBE's spirit and culture within NIBE.

  • Our business principles

    1. Strong profitability

    • is the most important and basic condition for long-term success and continuous growth
    • is and always has been NIBE's tradition
    • gives freedom and independence
    • creates job satisfaction and security for the employees and attracts new ambitious employees
    • assumes efficient use of energy and materials and a comprehensive approach to environmental and social aspects.
  • Our business principles

    2. High productivity

    • is vital to ensuring competitiveness
    • the productivity philosophy is based on it being possible to continuously improve everything and what cannot be measured cannot be improved
    • variable wage system based on time measurement creates good productivity, high time efficiency and fair wages
    • time measurement also creates the right conditions for correct calculations, sound investment documentation and opportunities to follow up.
  • Our business principles

    3. Proactive product development

    • is a condition for continued good organic growth and breaking into new markets
    • quickly converts the customer requirements to the best solutions for each given market situation
    • gives conditions for good production economy
    • must focus be on energy efficient and environmentally adapted products that contribute to reduced climate impact and sustainable development.
  • Our business principles

    4. Quality throughout customer-centric focus

    • our customers must always have full confidence in our company, products and employees
    • we must be a safe and constructive partner
    • we must be pioneers in quality issues
    • we must have certified management systems for quality and the environment at our production facilities
    • we must have high availability and a professional attitude
    • our environmentally adapted products must contribute to reduced costs and reduced environmental impact for our customers
    • our successes must also benefit the customer through value for money products
    • a NIBE customer must always be satisfied.
  • Our business principles

    5. Market-oriented expansion

    • continuous expansion is absolutely essential for the development of the company
    • the combination of good organic and well-assessed acquisitional growth is the best way to maintain the vitality of the organisation
    • breaking into new markets must be well prepared and consistently carried out.
  • Our business principles

    6. Focus on three core operations

    • creates both internal and external clarity
    • spreads risk and gives reasonable risk exposure
    • the concentration means constantly improving expertise, which in turn gives an analytical advantage, not least with acquisitions
    • there are many international expansion opportunities for all three of NIBE's business areas.
  • Our business principles

    7. Dedicated employees

    • simple organisational forms and operational leadership result in commitment
    • common values and a clear Code of Conduct guide us in our daily work
    • high requirement for honesty and straightforward communication create clarity
    • managers must set a good example
    • all employees must have the opportunity to develop
    • initiative combined with modesty and common sense are the ideal conditions for job satisfaction at NIBE.
  • Our business principles

    8. The long term

    • accountability, durability and continuity win in the long-term
    • reorganisation only occurs after thorough testing
    • our constant striving to establish long-term relations both internally and externally creates a long-term relationships sustainable operation
    • continuity of ownership allows maximum focus on the operations and guarantees independence
  • Our business principles

    Our responsibility

    Overall responsibility for the application and follow up of Our Business Principles lies with the Group President and CEO who delegates the practical, daily work to each legal entity within the Group.

    All managers must act in such a way that their behaviour works as a model for the application of the principles.

  • Our business principles

    More information

    If you work within the Group you can find Our Business Principles, Our Values, policies, guidelines and checklists on the Group intranet, Our Business Principles is available in many languages. NIBE's annual report and sustainability report provide information on how we realise Our Business Principles in our work.

    We refer external stakeholders to where they can access Our Business Principles, Our Values, Code of Conduct, relevant policies, the annual report and the sustainability report.

Our Values

Our Values gives guidance in how NIBE sees issues affecting sustainable development. We have separated them into eight areas that we call our Code of Conduct. 


Read more about Our Values

  • Our business principles

    Our values

    Our vision is to create world-class solutions in sustainable energy means an interaction between economics, social factors and the environment.

    By following Our Values you contribute to NIBE's sustainable development and the global change to a sustainable society. I am convinced that you will make a first-class contribution wherever you are in the world.

    Gerteric Lindquist

  • Our business principles

    1. Respect for human rights

    At NIBE we treat all employees fairly, worthily and with respect.


    • We value and develop diversity among our employees.
    • We do not give any one special treatment* regarding their employment or duties.
    • We do not harass, threaten or discriminate against colleagues or business partners.
    • We respect the right of the employees to organise and negotiate a collective agreement. We also respect the right of an employee to refuse to join a union.
    • We do not permit child labour, illegal labour or forced labour.
    • We ensure that employees under 18 years of age do not carry out risky work.

    *Special treatment may for example refer to gender, religion, age, disability, sexual orientation, nationality, political affiliation or social or ethnic origin.

  • Our business principles

    2. Good working conditions

    At NIBE we offer good working conditions and opportunities for personal development


    • We create good relations with our employees and expect involvement in the company's development.
    • We offer employees the opportunity to develop knowledge and skills in order to increase their professional abilities and to strengthen their personal and economic development.
    • We do not compromise on health and safety issues.
    • We take preventative measures to reduce the risk of accidents and work injuries.
    • We pay wages and remuneration according to agreements and according to legislation and regulations. We reward good performance and extraordinary efforts.
  • Our business principles

    3. Reduced environmental impact

    At NIBE we consider the environment at every stage of our value chain

    • Our long-term strategy is to create world-class, sustainable energy solutions and help make society more sustainable.
    • We live as we learn, which means increased use of renewable energy, conserving natural resources, reduced emissions to air and water, and reduced waste.
    • We have a comprehensive view of environmental issues from product development until the end of the product's useful life.
    • We identify risks to people and the environment and apply the precautionary principle*.

    *The precautionary principle means that in situations where we suspect environmental and health risks but do not have sufficient knowledge of these risks, we do not put off or ignore decisions on suitable protective measures.

  • Our business principles

    4. Good business ethics

    At NIBE, business relationships and business methods are based on compliance with legislation and the application of good business ethics.

    • We require honesty and integrity in all parts of our operations and expect the same from our business partners.
    • Bribes are prohibited. All forms of remuneration to business partners must only be for actual goods or services.
    • Gifts and other benefits must not exceed local customs and must be in line with local legislation.
    • We must follow competition legislation and work for fair competition.
    • All employees must avoid conflicts of interests between private economic issues and the company's business operations.
    • All employees have the right to report economic and other inappropriate irregularities without the risk of negative personal consequences (whistle-blower principle).
  • Our business principles

    5. Responsible purchasing

    At NIBE we make responsible purchases and place requirements on our suppliers.

    • We only work with suppliers who meet NIBE's Code of Conduct.
    • We make demands of our suppliers and evaluate them both before and during our collaboration.
    • Suppliers are encouraged to introduce a certified management system for quality, the environment and working environment.
    • We regularly follow up supplier performance. This may mean requests for improvement or termination of a collaboration.
  • Our business principles

    6. Product liability

    At NIBE, a product's function, quality, safety and environmental characteristics are the most important characteristics for the Group's continued development.

    • We strive to make our products contribute to sustainable development when they are used by the customer Energy efficiency, eco-design and lifecycle thinking are important keywords for us.
    • Our products must fulfil agreements and legal norms and standards regarding health and safety during use.
    • We have relevant and clear information about safe and environmentally adapted installation, use, maintenance, storage and final disposal.
    • We ensure that the customer gets fast responses to product questions and requests for information.
  • Our business principles

    7. Social commitment

    At NIBE we are involved in the networks and communities in which we operate.

    • Where possible we should engage with the communities where we have operations and strive to appoint and develop local employees and managers.
    • We must inform the next generation of our processes and products so that they apply for jobs with our company.
    • We must be active in development collaborations with industrial networks, universities and research institutions.
    • We must prioritise grants and sponsorship agreements that benefit the places where we work and support our values and strengthen the relationships with customers and partners.
    • We do not contribute to or involve ourselves with political parties, politicians or political organisations.
  • Our business principles

    8. Transparency

    NIBE's communication is straight forward, honest and follows applicable legislation, regulations and standards.

    • We maintain close relationships with our stakeholders and communication is based on regular contact, clarity and good ethics.
    • We keep our shareholders informed about the Group's operations, results and strategies. This occurs in accordance with the rules for those stock exchanges on which NIBE shares are listed.
    • All employees must respect the applicable regulations regarding confidentiality of information that is owned by the company and our business partners. This also applies to information that could potentially affect NIBE's competitiveness, share price and long-term survival.
  • Our business principles

    Zero tolerance and continuous improvement


    We have a zero tolerance approach to breaches of key areas of the Code of Conduct.


    This applies, for example, to compliance with the application of human rights and issues such as bribery, corruption and competition law.


    In the other areas we work systematically and purposefully with continuous improvements.

  • Our business principles

    The Group's responsibility

    The Group President and CEO has the overall responsibility for the application of Our Values. The Group's Sustainability Council and sustainability team support these efforts.

    The Group does regular follow-ups and risk assessments of how Our Values are applied. Development and performance are reported in the annual and sustainability reports. Compliance is maintained by the sustainability audits.

    The management system for quality, the environment and working environment helps make Our Values becoming a reality. Such systems must therefore be in place at all units.

  • Our business principles

    Our Values in daily life

    Daily responsibility for how Our Values are applied is delegated to the managers in the Group companies. The Code of Conduct and policy must be included in the company's internal training programs for both new employees and those already working within the companies. Managers must behave in such a way that they set an example in the application of the rules.

    Our business partners are also expected to follow Our Values.

  • Our business principles

    Your responsibility

    Work within the Group is based on responsibility, transparency, ethical behaviour, respect for the interests of our stakeholders, and applicable legislation.

    You are expected to live up to the guidelines in Our Values.

    It is also everyone's responsibility to help each other to follow Our Values

  • Our business principles

    More information

    If you work within the Group you can find Our Business Principles, Our Values, policies, guidelines and checklists on the Group intranet, Our Values is available in many languages. NIBE's annual report and sustainability report provide information on how we realise Our Values in our work.

    We refer external stakeholders to where they can access Our Business Principles, Our Values, Code of Conduct, relevant policies, the annual report and the sustainability report.

Our commitment

We believe that by delivering long-term value to our customers, we will also be able to maintain a healthy profitability. Our profit makes it possible to develop even smarter solutions, to attract and retain highly qualified employees, and to do good both for our employees and in society at large.


Our sustainability strategy is based on our values, our overall business strategy, the materiality analysis and our ambitions towards sustainable development, and consists of six strategic focus areas.



 As part of fine tuning our business and sustainability strategy, we continuously analyze the changes of the global operating environment. Here we have summarized some of the most important factors that have an impact on our decisions today:


Care for people

Our foremost responsibility towards our employees is to make sure they not get injured or ill because of hazardous or unhealthy conditions at work.


We also need to make sure we have all systems in place to ensure equality, high labor standards, grievances and good working conditions both physically and socially.



Ethical business behavior

We want adherence, from employees, business partners and Board of Directors, to internationally accepted principles concerning human rights, labor standards, anti-corruption and taxation. All our business dealings shall be honest, respectful and based on our values.


Sustainable product development

All our products are developed according to environmental principles of precaution and minimized impact that aim to reduce carbon footprint during the whole life-cycle. We also take into account the fast changes in today’s use of techniques. What is considered good environmental performance today, might be obsolete tomorrow. We need to be in the forefront of that development to support the transition to a fossil free society.


Care for the environment

Our operations shall have environmental management systems, and continually work to control and minimize any negative impact on air, water and soil. The waste generation shall be kept to a minimum and strictly managed. Materials and chemicals shall be chosen on both environmental and functional criteria.



Care for natural resources

Our operations shall economize with natural resources. It means to use less water, less raw materials and to recycle more. This includes the product design, the production, the use of our products and the handling of worn out products.



Responsible purchasing

We expect our Suppliers to embrace our Core Values and Our Business Principles and apply them in their business conduct. We assess and evaluate our suppliers based on their performance and willingness to improve within these areas.


Responsible supply chain management enables us to meet customer expectations. It also reduces the risk of incidents that may damage our reputation or cause interruption in supply flow.


 As part of fine tuning our business and sustainability strategy, we continuously analyze the changes of the global operating environment. Here we have summarized some of the most important factors that have an impact on our decisions today:


Population growth and urbanization

The world’s population is projected to increase by more than one billion people within the next 15 years, reaching 8.5 billion in 2030, and to increase further to 9.7 billion in 2050 and 11.2 billion by 2100. More than half of global population growth between now and 2050 is expected to occur in Africa.[1]


In 2014, 54 per cent of the world’s population is urban. The urban population is expected to continue to grow, so that by 2050, the world will be one third rural (34 per cent) and two-thirds urban (66 per cent).


These changes calls for increased efforts in building sustainable cities, providing sustainable energy solutions and clean technology.


Improved living standards

Together with population growth, we will see higher standard of living and longer life expectancies due to growing economies in some parts of the world. There will be an increase in demand for sustainable hot water, cooling and heating systems.


Climate change

To combat climate change might be one of the most critical environmental and social challenges of our time. There is an urgent need for a shift towards renewable energy and low energy usage to reduce the greenhouse gas emissions to levels within the planetary boundaries.


Resource scarcity

A growing number of people with increasing demands for a higher standard of living will share diminishing natural resources. Lack of natural resources like for example raw materials and water will lead to higher risk for conflicts, which in turn will lead to increased social problems. It is obvious that policy makers, businesses and consumers must take resource scarcity into account already today, in order to reach a sustainable level of consumption.


[1] Source: link

Stakeholders give valuable input on our sustainability performance and what they expect from us

Our main stakeholder groups are customers, employees, suppliers, owners, financing institutes, investors, society in general, authorities and NGOs. We engage in dialogue with these groups in various ways and frequencies according to the stakeholder’s demands and our needs. The outcome of meetings, correspondence, polls, interviews and other means of communication is summarized as input to our materiality analysis.


The areas of highest priority to our stakeholders are financial stability, product safety, good business ethics, health and safety, legal compliance and sustainable products. Areas where we can see an increasing interest over time are sustainable transportation, human rights, reduced carbon footprint and reduced environmental footprint in products. New areas that recently have been identified and might be material in the future are activities in areas of political instability and armed conflicts, sanctions compliance as well as transparent reporting of taxes.

The result from the stakeholder dialogue is compiled together with what we have identified as mate­rial topics within NIBE.

 Those material topics are in turn based on our


We also pay extra attention to areas where we have identified need for improvements and areas where we can foresee future risks and/or opportunities.


NIBE’s identified areas of highest concern and economic, social and environmental impact forms our sustainability strategy and are expressed through our six sustainability Focus Areas [länka].

NIBE – a Global Group with sales
and operations on five continents.

NIBE Industrier AB (publ)

Box 14, 285 21 Markaryd

Visiting Address
Hannabadsvägen 5, Markaryd

+46 (0)433–73 000