GRI-Appendix

103 - Explanation of the material topic and its Boundary
The management approach and its components

Energy use is a very important topic within the organization concerning both lowering the usage and shifting to renewable energy. Energy is also the backbone in our business strategy, as our core business is to provide the market with sustainable energy solutions.

The approach is to work internally with our own energy use and to develop products that can support a transition to a low carbon economy and less climate impact. NIBE targets are to reduce energy intensity by 30% within our own operations and to minimise the use of oil to heat our properties by 2020 (baseline 2013). Another of our target is to have at least 55% of our sales from products that are LCE classified according to FTSE's LCE[1]-index.

[1] FTSE LCE ICS ™ (Financial Times Stock Exchange-Low Carbon Economy Industrial Classification System) is a quantitative model, developed for investors to be able to evaluate companies based on their ability to adapt to a low carbon economy. The LCE data model measures the green revenues of 13,400 public companies, representing 98.5% of total global market capitalization. FTSE Russell's Green Revenues framework, based on the LCE data model, allows users to track revenues from goods, products and services that help the world to adapt to, mitigate or remediate the impact of climate change, resource depletion or environmental erosion.

302-1 - Energy consumption within the organization

NIBE total energy consumption, direct and indirect (excluding transportation), was 218,9 (167) GWh. Of this, 5,0 (3,1) GWh consists of electricity, heat and cooling we generated from solar and wind power and heat pumps.

Our indirect energy consumption, i.e. purchased electricity and district heating, amounted to 143,7 (112) GWh. Of this, 135,8 (105) GWh was electricity consumption. Almost all our purchased electricity comes from renewable sources. We have started to measure emissions from transportation and now we have comparable data for our own vehicle fleet for consumption of diesel and petrol. The consumption of petrol was 2,0 (3,2) GWh and diesel 19,7 (20,3) GWh.

302-2 - Energy consumption outside the organization

Not reported.

302-3 - Energy intensity

NIBE target is to reduce our energy intensity by 30% compared to 2013 before end of 2020.

302-4 - Reduction of energy consumption

30 percent corresponds to a reduction from 14 MWh per SEK million in sales in 2013 to less than 10 MWh per SEK million in sales 2020. Consumption of purchased energy has remained at 11,3 (11,2) MWh per MSEK total sales during 2017.

Performed energy audits on production unit' s equals 74 percent.

NIBE target to phase out fuel oil burning from all our own properties and replace it with heat pumps or other fossil free technology has progressed. For 2017 year reporting, six companies where the Group own the building are still using light fuel oil, fully or as a compliment.

302-5 - Reduction in energy requirements of products and services

Product examples:
Heat-pumps: A ground-source heat pump can save up to 80% compared with a situation in which the building was heated with direct-acting electricity. Both economical and environmentally friendly.

Wood burning stoves: Our modern stoves have far lower wood consumption and emissions into the environment than older stoves.
A test carried out in 2016 by the Swedish Energy Agency showed that wood consumption can be reduced by around 20% and emissions into the environment halved or reduced by up to 85%. Most of the modern stoves tested have an efficiency of 75-80%, while the older stoves in the test are at 59-66%.

Eco-design directive is affecting end customer products. NIBE products have been upgraded to fulfill the eco-design directive or been obsolete.