General Standard Disclosures

Strategy and analysis

Strategy and analysis

G4-1 - Statement from the most senior decision maker of the organisation

Reference AR 6, 7 »

G4-2 - Description of key impacts, risks, and opportunities

Reference AR 8-15, 24, 25, 70, 71 »

Organisational profile

Organisational profile

G4-3 - Name of the organisation

NIBE Industrier AB

G4-4 - Primary brands, products and services

Reference AR 8-11, 36, 37, 44, 45, 50 »

Web reference


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.


G4-5 - Location of the headquarters

NIBE is a Swedish company with its roots in the southern province of Småland and head office in Markaryd.

G4-6 - Number of countries where the organisation operates

Reference AR 1-5 »

Web reference


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.

G4-7 - Nature of ownership and legal form

Reference AR 31-33, 87-89, 94 »


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.


G4-8 - Markets served

Reference AR 1-5 »


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:

  1. NIBE Climate Solutions provides sustainable energy solutions for indoor comfort through a wide range of products for heating, cooling, ventilation, heat recovery and hot water heating for houses, apartment blocks and other large buildings, including commercial real estate.
  2. NIBE Element provides components and solutions for measurement, control and heating designed for producers and users of industrial and consumer products.
  3. NIBE Stoves offers stoves and chimney systems for different types of houses and commercial buildings.

G4-9 - Scale of the reporting organisation

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%.


G4-10 - Total workforce by region

Reference AR 77 »


G4-11 - Percentage of employees covered by collective bargaining agreements



G4-12 - Describe the organisation’s supply chain

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.


G4-13 - Significant changes during the reporting period

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.


G4-14 - Explanation of the precautionary approach

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.


G4-15 - Externally developed economic, environmental and social principles

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.


G4-16 - Membership of associations and advocacy organisations

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.

Material aspects and boundaries

Material aspects and boundaries

G4-17 - Operational structure of the organisation

Web reference

G4-18 - Process for defining report content

Reference AR 24-25 »


  • Step 1: Identification
    Relevant topics have been identified by looking at the different types of impact that occur in each step of our value chain. We have considered our products, market and supply chain, as well as our vision and mission in view of what needs be improved in order to support sustainable development. We have considered the impact outside the organisation and in the interfaces between the organisation and external parties, combined with what topics and concerns our stakeholders historically have raised. This gave us a gross list of possibly material topics that needed prioritisation.
  • Step 2: Prioritisation
    We used the list of identified topics as a basis for our stakeholder dialogue and for our internal discussions. All the topics were rated from the most important to the least important. From the list of rated topics, we have chosen to focus on the top 15-20 ones that have been considered as most important both by our external and by our group management team.
  • Step 3: Validation
    We have analysed the outcome of step 1 and 2, and found that the prioritised topics represent a balanced combination that includes several angles of our economic, environmental and social responsbility. These topics might change over time, as our business developes and stakeholder demands changes.

G4-19 - List all the material aspects identified

Reference AR 24 »


Materiality analysis

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.

Materiality analysis chart

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:


  • NIBE’s products support the transition to sustainable cities and infrastructure. The product range is largely based on energy efficiency enhancement and renewable energy and is therefore in line with climate-adapted products as a business strategy.
  • NIBE invests in energy efficiency enhancement and renewables in its own operations and has measurable targets for this.
  • The decision to sign the Global Compact reinforced NIBE’s previously communicated values to respect human rights and take responsibility for the natural environment, working environment and ethical business methods.
  • NIBE has an accident rate target to create a safe working environment.
  • NIBE has responded to the need to train its staff. In the last two years, we have implemented extensive training initiatives in ethical business and anti-corruption, primarily for those who have external contacts.

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.


  • A policy for anti-discrimination, diversity and gender equality will be drawn up. The work of subsidiaries will be evaluated against the policy and national legislation in connection with site visits.
  • The focus on sustainability in the governance process will be increased by sustainability issues being communicated to the Group Board of Directors to a greater degree. Our annual GRI report will be signed by the Board of Directors, and sustainability will be integrated in our financial reporting.

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.



G4-20 - Report the Aspect Boundary of each material aspect.

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.


G4-21 - The Aspect Boundary outside the organisation

See each aspect.

G4-22 - Explanation of the effect of any re-statements

No significant re-statements

G4-23 - Significant changes from previous reporting periods in the Scope and Aspect Boundaries

No significant changes

Stakeholder Engagement

Stakeholder Engagement

G4-24 - List of stakeholder groups engaged by the organisation

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).


G4-25 - Basis for identification and selection of stakeholders

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.


G4-26 -Approaches to stakeholder engagement

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.


G4-27 - Key topics and concerns

The top ten most important topics raised through our stakeholder engagement were:


  • Energy efficiency and renewable energy
  • Healthy and safe work environment
  • Sustainable products and services
  • Business ethics and anti-corruption
  • Long term value creation and growth
  • Transparency
  • A board that is engaged in sustainability issues
  • Climate adapted products
  • Employee development
  • Fairness, diversity and equality

For our response to these topics, see each indicator.


Report Profile

Report profile

G4-28 - Reporting period

Full year 2016

G4-29 - Date of most recent previous report

April 2015

G4-30 - Reporting cycle


G4-31 - Contact point for questions regarding the report or its contents

[email protected]

G4-32 - GRI Content Index

In Accordance G4 - Core

Reporting companies

Reporting companies


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:

  • ABK AS
  • AIT Schweiz AG
  • Backer Calesco France Sarl
  • Backer EHP, Inc.
  • Backer Heating Technologies Inc.
  • Backer Wolff GmbH
  • Backer-Wilson Elements Pty Ltd
  • Hyper Engineering Pty Ltd
  • KKT chillers, Inc.
  • Lotus Heating Systems A/S
  • Lund & Sörensen A/S
  • METRO Therm AB
  • Motron A/S
  • NIBE Energietechniek B.V.
  • NIBE Energy Systems France SARL
  • NIBE Energy Systems Ltd
  • NIBE Energy Systems OY
  • NIBE Foyers France S.A.S.
  • NIBE Systemtechnik GmbH
  • Nordpeis AS
  • Schulthess Maschinen GmbH
  • Stovax Limited
  • TermaTech A/S
  • Varde Ovne A/S
  • Völund Varmeteknik A/S


G4-33 - Policy and current practice with regard to seeking external assurance for the report

We are currently not seeking external assurance for this report.

Governance and Ethics

Governance and Ethics

Aspect: Governance

G4-34 - Governance structure of the organisation

Reference AR 100 »

Web reference


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.


Aspect: Ethics and Integrity

G4-56 - Internally developed statements of mission or values and principles

Reference AR 16,17 »


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.


G4-57 - The internal and external mechanisms for seeking advice on ethical and lawful behavior

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.


G4-58 - The internal and external mechanisms for reporting concerns about unethical or unlawful behavior

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.


NIBE Group – A global Group with companies and a presence worldwide

NIBE Industrier AB (publ) Box 14, 285 21 Markaryd · VISITING ADDRESS Hannabadsvägen 5, Markaryd · [email protected] · +46 (0)433 27 30 00