NIBE Industrier AB
Web reference www.nibe.com/nibe-group/our-products
The company has a tradition going back many years of manufacturing products for both household and commercial use, and is a leader in the manufacture of products for indoor climate comfort, heating and applications for energy efficiency. Entrepreneurship and a passion for doing business, investments in product development and corporate acquisitions have led to significant expansion of the Group, which now has sales exceeding SEK 15 billion.
NIBE is a Swedish company with its roots in the southern province of Småland and head office in Markaryd.
Web reference www.nibe.com/nibe-group
NIBE is present on the five continents. The Groups own companies exist in Australia, Austria, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Italy, Malaysia, Mexico, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, UK and USA.
Vietnam has been added to the countries during 2016, and will be included in the GRI-report full year 2017.
NIBE is listed on the NASDAQ OMX Stockholm Exchange, Large Cap list, with a secondary listing on the SIX Swiss Exchange.
NIBE’s 2016 Annual Report covers trademarks, ownership, changes in structure and size, geographical market presence, and a detailed account of financial results and key figures.
NIBE is an international Group within heating technology and energy efficiency with sales in Europe, North America, Asia, Australia and Africa.
The Group consists of three business areas covering different product segments directed towards several industries:
NIBE Group had on average 11,900 employees during 2016. Group sales in 2016 totaled 15.4 million with an operating margin of 12.9%. NIBE Climate Solutions accounted for 62% of sales, NIBE Element 27% and NIBE Stoves for the remaining 11%.
The supply chain consists of approximately 3,500 suppliers of direct material. The highest purchase volumes come from suppliers in Europe and North America. The product categories that represent most value are metals and electronics. Many of our suppliers are long term suppliers where we have a close relationship, often developing components and parts for our products together. The procurement of direct material is to some extent centralised, whereas indirect material purchasing is made entirely locally.
During 2016 NIBE Group acquired ten companies adding approximately four billion SEK to the annual turnover. These aquisitions affected the reporting of financial data for 2016, but will not affect the non-financial reporting until the first full year in the group after acquisition.
Two new companies were included in the non-financial reporting during 2016: Termorad in Poland and Backer Marathon in Texas, USA. Together they represent 0.6% of the total turnover 2016.
NIBE applies a precautionary approach in connection to any changes in products or in the production processes. Risk assessments are made before changes are carried out. It includes changes in input material, product design, manufacturing process, logistics and before constructing or changing buildings. The product life cycle is taken into account when carrying risk assessments.
NIBE is a signee of Global Compact since 2014 and are committed to support the Agenda 2030. NIBE also reports according to CDP and give financial support to organisations like Hand-in-Hand and SOS Children's Villages. The individual companies within NIBE Group are members of a number of industry associations and initiatives on national level.
NIBE has chosen to actively participate in a number of industry organisations and standard organisations, on national, EU and international level. The participation is decided by the need of the particular business area and/or product group. The objective is to advocate NIBE's interests, contribute with expertise and opinions as well as to keep informed of the current development. We have chosen not to disclose the list of memberships.
NIBE's working group for sustainability issues together with Group management carried out a materiality analysis based on the areas that are regarded as most relevant to the company's operational focus and geographical presence as well as international initiatives such as the Global Compact and Agenda 2030 (SDG). The assessment also included business environment requirements, global trends, standards (GRI, ISO 14001 and CDP), the Company’s expected future growth, with the concomitant risks and opportunities, and the outcome of the dialogue with stakeholders.
The top priority aspects are summarised in the diagram below.
If we compare NIBE’s current work in the areas identified as priorities in the materiality analysis, it sits well with the choices and priorities made by NIBE to date:
In line with its operational priorities and where it was considered possible to exert influence, NIBE has chosen to prioritise six of the seventeen goals included in Agenda 2030:
See Annual report page 25.
In working on the materiality analysis, we identified many areas, in addition to those in which we already work, which require further work.
The working environment will be an agenda item at subsidiaries’ board meetings at least twice a year, with accidents and actions being reported. All companies with more than 15 employees and an accident rate of more than 10 accidents per million hours worked will be required to prepare a written action plan for how they will achieve the target of an accident rate lower than 6 before the end of 2018. The plan will be evaluated and approved by the Group’s working group for sustainability issues, the ‘Sustainability Council’. (See page 101 of the Corporate Governance Report ).
In 2017, there will be a review of existing targets and ratios, based on the achievement of targets in 2016.
Concerning limiting and reporting of environmental impact during the manufacturing and distribution phases of our products, we have included our production facilities (see table with production companies). Sales offices are included only in the reporting of energy use and carbon dioxide emissions (see list of sales offices included).
Concerning healthy and safe work environment, all companies within the NIBE Group, production and sales offices alike, report injuries and sick leave. The aspect is material primarily within the organisation (see complete list of companies in Annual report, page 88, 89).
For other aspect boundaries, see each aspect.
The Aspect Boundary within the organisation
See each aspect.
See each aspect.
No significant re-statements
No significant changes
We have included the following in the stakeholder groups whose opinions are of greatest importance to the Company and/ or are affected most by the Company’s profit: shareholders, B2B customers in various sectors, end customers and installers, employees, suppliers, analysis institutes and other representatives of the financial sector and public authorities (supervisory and local).
We used an assessment method where we viewed each stakeholder group according to their power, legitimacy and urgency (Mitchel et al 1997). From the assement we could identify our key stakeholder, their presumed interests in the company, and a channel to engage with them.
Analysts and representatives from the financial sector often approach the company via interviews and questionnaires. We have studied the content and what subjects are included in the questions they ask us, and from that we have drawn conclusions about what they find material. We always respond to these kind of requests which could be annually or biannually. We have also asked a number of people from that group to respond to a questionnaire in 2016.
Employees are approached via surveys and the conclusions we can draw from various grievance mechanisms and the suggestions that comes in through internal channels.
The results of the qualitative surveys were used to create a simple questionnaire with identified sustainability aspects in six different areas: finance, products, environment, working environment, governance and society. The questionnaire was completed online by around 200 individuals. We were not able to cover all stakeholder groups in 2016 and still have relatively limited statistical data from the quantitative surveys. However, it was possible to compile a sufficient quantity of data during the year to create a representative basis for our materiality analysis.
We see this as an ongoing process in which the data will be improved from year to year as we gather more facts. The frequency is not yet establisehd since this year was the first time we used a questionnaire for the stakeholder dialogue.
The top ten most important topics raised through our stakeholder engagement were:
For our response to these topics, see each indicator.
Full year 2016
In Accordance G4 - Core
Production companies included in the reporting in 2016:
The report includes all companies (see Annual Report p. 88, 89) concerning financial data and employee statistics.
Concerning environmental impact, like material use, waste and effluents, 44 (42) production companies are included as listed below.
*These companies have been added since the previous reporting period. Together they comprise approximately 0.6% of total sales.
Concerning energy use, 25 sales companies are also included:
We are currently not seeking external assurance for this report.
Web reference www.nibe.com/nibe-group
Management of the Group’s sustainability work
NIBE’s Board of Directors bears the ultimate responsibility for ensuring that risks are managed and sustainability work meets the requirements of public authorities, shareholders and other company stakeholders.
The Group’s working group for sustainability reports to the Sustainability Council, which consists of the working group, the Managing Director, the CFO and the business area managers.
A large proportion of the work is governed by national legislation, for example environmental legislation and labour law, but we are also under an obligation to comply with regional and international law and voluntary undertakings such as the Global Compact.
The management of each company is responsible for local operational sustainability work and for compliance with Group guidelines. These managers report to the business area managers in each area.
The Group’s working group for sustainability regularly visits the companies in the Group to monitor compliance with com-mon policies and guidelines. The working group is also responsible for the work at a strategic level and reports on sustainability issues to the Boards of Directors at Group and business area level.
We have expressed our code of conduct in three folders titled Our Values, Our Business Principles and Our working methods. The content is aligned with the ten principles of the Global Compact. The folders are available in fourteen languages on our website and on the NIBE intranet. All companies are provided with the printed version and the content is part of the induction training. When a new company enters the Group, the management is obliged to communicate the code of conduct to all employees. The implementation is evaluated by the working group for sustainability issues in connection with regular company visits.
Advice on ethical and lawful behaviour is mainly taken care of within the line organisation. Managers have the responsibility to seek advice when their knowledge or mandate is not sufficient. When especially delicate or difficult matters occur, access to expertise is granted through channels both within and outside the organisation.
All individuals within or outside the organisation are authorised to report any concern about unethical or unlawful behaviour. Employees are engouraged to report this through the line management, but if that is not possible, they are encouraged to use the whistleblowing function. The whistleblowing function is a shared external resource used by all companies within NIBE Group and the procedure how to use the function is communicated to all employees. Information about how to report is also available on our intranet. We usually receive one or two reports each year and these are handled according to the nature of the case.