Management Approach




NIBE signed Global Compact in 2014. The UNGC ten principles, Our Code of Conduct, consisting of Our Values and Our Business Principles, guide us in all our actions. NIBE is also committed to the SDGs and have selected to focus on six of the goals. Besides the Code of Conduct, NIBE Group has a number of written policies within most of the areas below. The Sustainability Council is responsible for the content and revision of these policies and they cover all entities within the organization.

Below is general information about NIBE management approach concerning identified material topics; Why they are important, and where or to whom. NIBE have also briefly explained how the work with these topics and what mechanisms are in place to evaluate the management approach. In some cases, there are references to other places in this report or to the Annual report.


Besides own internal evaluations of the effectiveness of the management approach we follow our results in the reports from analysts, banks, funds and other organizations,


For more details concerning topic explanations, boundaries and management approaches see each separate disclosure.

Material topics: S1 Good working environment, S5 Human rights and decent labor conditions


These two topics are material within the organization and within the supply chain.

It is NIBE responsibility to make sure that all our employees are safe at work, that there are decent working conditions and that we show respect towards human rights at all times. It is also our responsibility to evaluate and choose suppliers according to the same principles.

NIBE has a target to reduce the number of injuries and monitor wages and other employment terms on a regular basis.

Employees and other workers can report grievances through local channels and via the global whistleblowing system, where reporting can be anonymous. NIBE also have a target to monitor supplier performance via self-assessment questionnaires and/or supplier visits.

See Annual Report page 30.

Material topics: S4 Develop employees, S6 Fairness, diversity and equal treatment


The topics are material mainly within the organization. NIBE need to develop our employees to stay competitive both as producer of technically advanced products and as employer. Our employees expect to be treated with respect and have equal opportunity. Diversity and equal treatment is a part of our leadership philosophy and our values. Employees or other workers can report grievances through local channels and via our global whistleblowing system. Reporting can be anonymous. See Annual report page 30.

Material topics: S2 Legal compliance, G1 Business ethics and anti-corruption, S3 Tax payments, G5 Transparency


These topics are important both within the organization, but also in all dealings with external parties, such as suppliers, customers, authorities, local community and other stakeholder groups.


Together these topics express the essence of Business Principles and forms the very foundation for our license to operate. Failing to act responsibly and with integrity within these areas would severely damage our stakeholders trust in the company. It is our responsibility to pay taxes to the societies where we operate.


NIBE must transparently disclose performance, also when not doing as well as expected. All companies are required to report incidents concerning unethical business behavior of any sort into NIBE incident reporting system. Cases of internal unethical business behavior can be reported anonymous through NIBE whistleblowing system.


Once a year all companies do their own risk assessment and report this in NIBE common risk management system. The Board of Directors analyzes the result once a year and takes decisions based on this. See Annual report pages 29-32, 78-79.

Material topic: G3 Board of Directors engaging in sustainability issues


The Board of Directors has approved NIBE Group long-term sustainability strategy and action plans. NIBE Group companies present their sustainability risks yearly in the Boards strategy meeting and potential action plans are decided.

NIBE Group has an integrated annual report and the sustainability reporting is therefore approved together with the financial reporting.

Material topics: F2 Profitability, F1 Long-term value creation and growth

These topics are crucial for the organization and for other stakeholders such as owners, employees, suppliers and other business partners. NIBE has monthly follow up on targets for profitability and growth and publicly report results quarterly. Long-term value creation is part of the discussions on strategy meetings and board meetings.

Material topic: F4 Responsible ownership

Our Business Principles are deeply rooted in eight basic ideas that constitute the foundation of all our operations and create the conditions for our continued success.

Our Values are an important part of our management philosophy and our corporate culture and emphasise that we want to act as a responsible company in relation to the people near us, our external stakeholders and the environment. Our Values are firmly rooted in our long and proud tradition of responsible entrepreneurship. See Annual report page 18.

Material topics: G2 Sustainability as part of business strategy, F5 Proactive product development, E1 Energy efficiency and renewable energy, E2 Sustainable products and services, E4 Safe products with low environmental impact during use, F3 Customer service and customer satisfaction

All these topics are material for our core business, our competitiveness and our ability to serve our customers. Our vision is “world-class solutions in sustainable energy”. To live according to that vision we do all we can to adapt our product portfolio to climate change and develop our products according to demands, for example the eco-design, REACH and RoHS directives, as well as low carbon economy criteria. We develop products that are energy efficient and primarily based on renewable energy.

NIBE closely monitor market changes, the result of customer surveys and complaint concerning our products. We also set aside funds and resources for research and development.

Customers can file complaint via the responsible sales channel. Procedures to manage customer complaints are well established and proven to be effective.

See Annual report page 29.

Grievance mechanisms are part of our responsibility and our stakeholder dialogue. NIBE take all complaints seriously and strive to prevent reoccurrence of event that might have caused a complaint.


Evaluation of the effectiveness of the grievance mechanism is done locally within the framework of each company's management system. Complaints are also reported at Group level. Should there be an unreasonable quantity of complaints, or repeated complaints about the same issue, there would be cause for an investigation and a site visit from the relevant Group function. All operations have local grievance mechanisms where employees, neighbors, customers or other stakeholders can contact a responsible person that will file their complaint and make sure it is handled correctly. See Annual report page 29

Material topics: E3 Waste management, E1 Energy efficiency and renewable energy

Environmental issues are primarily relevant for our production companies even though sales companies are also included in our reporting of energy and waste. The purpose is to reduce negative environmental impact from our own activities. NIBE has targets to reduce waste to external deposit and to increase recycling. We also have a target to reduce energy consumption and to phase out all fossil oil burning from our own buildings.


A large part of our environmental impact comes from waste generation. Consequently,
recycling is a very important matter. A new target has been set, increasing the proportion
of recycling from the current value of 78% of the total volume of waste in the Group to 80%.
Consequently, the volume of waste to landfill, currently 9% of the total volume of waste,
can be reduced further.
The greatest challenge to succeeding in increasing recycling and reducing waste to
landfill is in countries that do not yet have systems and infrastructure for sorting waste. In
such cases, we make every effort to create our own solutions, while also influencing society
to assume greater responsibility for its waste management. 

Material topic: G4 Responsible purchasing

NIBE suppliers are required to follow the same business principles as we do. We realize that we have risks in some parts of our supply chain and must do what we can to promote decent working conditions, environmental protection and ethical business behavior.

NIBE long-term goal is that all companies within the Group shall use our common evaluation system to assess and approve their suppliers of direct material according to our Supplier Code of Conduct. The short-term goal is to assess all new suppliers before on boarding. See Annual report page 29.