Business Overview

Vision, strategies, principles, values and value chain.



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.

Financial targets for long-term positive development

Operating margin

The operating profit for each business area and for the Group shall be at least 10% of sales over a full business cycle.

The operating margin must be at least 10% to give operations stability and prepare them for both acquisitions and rapid changes in the business environment. This is one of the cornerstones to ensuring long-term positive development and continuous growth. During the past five years, the average consolidated operating margin has been 12.6%.


Average year-on-year growth shall be 20%, half organic and half acquired.

Half of the targeted average year-on-year growth should be organic over time. Stagnating growth poses a threat to the maintenance of healthy, sustainable profitability. Historically, acquired growth has balanced organic growth in that it has usually been lower than organic growth in good times and higher in difficult times. During the past five years, total average growth has been 18.0%.

Return on equity

Return on equity over a business cycle must be at least 20%.

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 15.2%.

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 44.2%.

Sustainability goals for a responsible business

Increased climate benefit in our product portfolio

The target is for 55% of our sales to consist of LCE classified* products by the end of 2018.

Our products largely use renewable energy and much of our product portfolio helps customers make the switch to more energy-efficient use with a lower carbon footprint at home, in large properties and in industry. We aim to have a stable portfolio of products that help customers transition to a low-carbon economy.

Continuously declining energy use

The target is to reduce energy use 30% by 2020 compared with 2013 as the baseline (measured in MWh/SEK M in sales).

We set a target in 2013 with a view to reducing the amount of energy purchased (primary and secondary) for our properties and processes, excluding internal transportation and self-generated power such as generated heat pump energy and solar panels in the business. This outcome is therefore not calculated on the total energy use of all Group companies in 2018, which is reported in our sustainability report.

A safe workplace with no accidents

Our long-term goal is zero accidents, of course, even though this is difficult to achieve. The interim target is an accident frequency of fewer than six accidents per million hours worked by the end of 2020.

Implementation of the occupational health and safety policy continues, and systematic preventive measures are carried out continuously. Action plans are drawn up in companies with an accident frequency higher than 10 and are followed up continuously at Board meetings and via sustainability site visits.

The measurement includes everyone who has performed work in our company. The measurement refers to the lost time injury frequency rate (LTIF), which measures accidents resulting in at least one day’s lost work after the date of the accident per one million hours worked.

Ensuring systematic quality and environmental initiatives

The long-term goal is for 100% of our production units to have certified management systems for ISO 9001 and ISO 14001.

We are working to introduce certified quality and environmental management systems to all our production units with more than 10 employees. Acquired production units have a time frame of two full calendar years before certification must have been completed.


We measure the 2018 outcome against companies that have been in the Group since 2016.

Our goals are focused sharply on profitable growth and sustainable value creation with healthy finances. Our strategies for achieving our goals are tried and tested and based on our business principles, focusing on five areas: increased market share, cost control, frequent product launches, flexible, efficient production and sustainability throughout the added-value chain.

Sustainable growth creates conditions for good profitability

Growth must be both organic and via strategic acquisitions of strong brands and complementary product ranges on priority markets worldwide.


The focus on world-class solutions in sustainable energy also contributes to a better, more climate-friendly world. Our entire value chain, from vision to end customers, must be based on the principles of sustainability in our management philosophy and our values.


NIBE operates on relatively mature markets. This means that the total growth target of 20% is not expected to be achievable solely through organic growth. The annual organic growth target of 10% must therefore be combined with acquired annual growth of 10% on average. 


Operations take place within the framework of energy solutions in three Business Areas – Climate Solutions, Element and Stoves. 

Growth requires management, commitment and follow-up



Tried and true principles of business-driven growth in the Group are combined with structured, professional management and efficient follow-up. 

Operational management is largely based on decentralisation in our three Business Areas with clear responsibility for profits in well-defined profit centres, linked to clear goals in terms of both finances and sustainability. Our management strategy is based on our business principles and values, which form the basis of our company spirit and culture.

Each Business Area has its own operational management with profit responsibility. Each Business Area has a Business Area Board chaired by the CEO. These Business Area Boards also include external members with complementary experience within their respective areas.

In addition to responsibility for operating activities, each Business Area Board is also responsible to the NIBE Board of Directors for the strategic development of its Business Area. 


Employee commitment

Motivated, committed employees are essential to continued success. We ensure that our expertise is continually enhanced and renewed via training and personal development, plus listening leadership. Internal recruitment is an important part of our programme to fill leadership roles and other key roles, while we also recruit externally to add new expertise. 

Leadership is very important in creating and retaining commitment, strengthening the organisation and maintaining our corporate culture based on diligence and job satisfaction. Our leadership development programme reinforces this culture.



Effective follow-up takes place at both Business Area and Group level by means of an efficient Group reporting system. Clear ratios are used to enable us to quickly observe, act on and follow up on non-conformities and undesired developments. 


As each subsidiary has its own budget, in which fixed costs and investments are subject to prudence, there is also a good level of preparedness for action if financial developments deviate from the assumptions made.


Expansion creates economies of scale

Joint purchasing

Materials purchasing is coordinated both within each Business Area and between Business Areas if there are obvious benefits to be gained from joint purchasing. When a newly acquired company joins the NIBE Group, a purchasing partnership begins almost immediately to quickly lower both direct and indirect costs.


Efficient use of resources contributes to profitability. By managing resources and increasing recycling, we reduce our environmental impact and reduce our costs.


We purchase responsibly by evaluating our suppliers. In addition to requirements for quality and environmental performance, we also work with our suppliers according to the international principles relating to human rights, working conditions and anti-corruption set out in the Global Compact. This requires a deeper, more time-consuming analysis, but we reduce the risk of interruptions in material flow and events that may harm our reputation.


Efficient production

High productivity is essential to good competitiveness, and our productivity philosophy is based on the belief that everything can always be improved and that, if you can’t measure it, you can’t improve it. Methods-time measurement (MTM) data provides a sound basis for efficient production planning, accurate costings and calculations, reliable investment data and opportunities to follow up on business activities correctly. Performance-based salary systems based on accurate MTMs also help encourage optimisation of working time and promote high productivity and fair salaries.


Efficient production also involves managing natural resources and inputs and reusing or recycling to reduce our environmental impact. All our production companies must have environmental certification and make continuous improvements to reduce their negative impact on the air, water and soil. At the same time, we eliminate all risks in the working environment and improve safety to prevent accidents.  


Newly acquired companies have full access to all knowledge and experience in the NIBE Group. We have found that this is greatly appreciated and builds up good relations and trust between the partner companies.


Product development

Always being at the cutting edge with the most attractive product range makes product development another key to profitable growth. With a high rate of product development, based on research and new technology, we can offer products and solutions that are attractive to the market and help reduce customers’ environmental impact. We constantly challenge ourselves to find the best solutions that can contribute to a faster transition to a fossil-free society. 


Exchange of knowledge and technology transfers between both existing companies in the Group and newly acquired entities create synergies that considerably reduce development time in several areas. This trust is gradually built up as the obvious advantages in materials purchasing and production become apparent.



A decentralised organisation means greater proximity to and understanding of the market. Strong business relationships are built up via professional, factual marketing based on strong brands with a high level of recognition among customers. The brand promise must also be accompanied by competitive prices, good service, good customer support and ethical business practices. Our customers must feel secure in the knowledge that our products are safe and manufactured responsibly and sustainably. 


Our high-quality, innovative products, with strong brands and carefully considered marketing, are perfectly placed to increase our market share on existing markets and expand into new markets. 


This means that acquired entities are quickly and naturally consolidated into the NIBE Group with their respective brands, and their new affiliation further reinforces their brands.


Decisive assessment criteria for acquisitions

For a potential acquisition to be interesting, we must be able to see that it adds new technology, enables us to establish a presence in new geographical markets and/or increases our share in existing markets.


We apply the acquisition model above. The basic requirements are that a company must have: 


  • a strong position in terms of finances, the market and technology
  • a real entrepreneurial spirit
  • development potential within the framework of NIBE’s strategies.
  • competent management 


Good entrepreneurship holds the key to opening future opportunities by constantly arousing curiosity and inspiring creativity and commitment. Permitting acquired companies to retain their identity and brands creates continuity on local markets. In many instances, keeping companies intact with the full management in the locations and 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.


Companies that are new to the Group must continue to enjoy a high level of independence. 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. 



Acquisition model



The analysis phase is precise but fast. Our three sectors are well defined and with our history we have the relevant ratios for comparison purposes.



In the implementation phase, there is always complete transparency about our intentions with the acquisition. We are always very clear and open about the information we provide on our management philosophy and strategy, which 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 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 value chain

Our management philosophy aims to deliver value for our stakeholders. NIBE adds value based on the initiatives outlined above. An understanding of the world around us and dialogue with our stakeholders helps us choose the right priorities throughout the value chain. The result is that we maximise the positive value for our stakeholders and minimise any negative impact.



Like all international companies, NIBE is affected by global trends that we must constantly monitor and evaluate. We need to seize opportunities and be aware of the risks of constant change. In turn, this affects our strategic choices. We must adapt our strategy to enable us to continue to add value in the long term. 


NIBE operates in an industry that can accelerate the transition to lower energy consumption and a higher proportion of renewable energy. With our products and system solutions, we can contribute to a better, more climate-friendly world. This is the greatest challenge of our age. 




Climate change – the greatest challenge of our age

One of the biggest challenges involved in achieving a global sustainable community is to reduce emissions of greenhouse gases and slow down the rate of climate change. 


The agreement from the climate summit in Paris in 2015 to limit global warming so that it does not exceed 2 degrees is already under threat. To achieve this target, greenhouse gas emissions must be reduced by 70% by 2050 compared with the level in 2010, an annual reduction of 6.5%. Research indicates that even greater reductions in greenhouse gases are required to stop climate change. As we know, the consequences of climate change in the form of natural disasters and extreme weather conditions represent a threat to our living conditions, biodiversity and social stability. 


Population growth and growing cities

According to UN calculations, the population of the earth will have grown from 7.3 billion in 2015 to almost 10 billion by 2050. The greatest population growth is expected in Africa and Asia. In the same period, increasing numbers of people are also expected to move to large cities, the population of which is expected to increase from 50% of the earth’s population today to 70%. 


Demand for infrastructure and clean technology

As the population grows and is concentrated in cities, the infrastructure becomes overloaded and the demand for resources, above all energy, increases. At the same time, opportunities arise for sustainable solutions as demand for energy-efficient, resource-efficient infrastructure, construction and transport also increases.


All the buildings in the world currently account for around 40% of total energy use and around one third of global emissions of greenhouse gases, most of which when the buildings are in use. As buildings are used for many years, the energy-related product choices made today are important because they can affect the environment for several decades to come.


Globalisation, population growth and urbanisation also boost demand for the transportation of goods and people. The transport sector is regarded as one of the greatest challenges as it is responsible for a significant proportion of greenhouse gas emissions and energy consumption.


Energy optimisation and a switch from fossil energy sources to renewable energy sources are needed for both buildings and the transport sector. Demand for technology that supports the switch from fossil fuels will grow and, as this technology becomes more available and the market grows, the prices will fall, contributing in turn to even greater demand. 


A great deal of research and development are currently being carried out in energy optimisation and renewable energy. We believe that we are at the cutting edge of our industry. NIBE is already able to offer applications and solutions for climate-friendly energy efficiency enhancement. We consider it both an interesting challenge and a necessity to gradually change our product portfolio to fully support fossil-free technology.

External factors that affect our business

Apart from major global trends, there are several factors that directly affect our business development. 


Demand for sustainable solutions

One of the very strongest driving forces behind our business is the growing demand for components, products and systems that enhance energy efficiency. 


Economic trends

Economic trends affect willingness to invest in new products and solutions that enhance energy efficiency. However, where new systems must be installed, the willingness exists to invest in energy-saving and thus cost-saving measures, even during periods of recession.


Energy prices

The cost of fossil-based energy generation often affects the choice of system for heating and indoor climate comfort. The low oil and gas prices which continued to prevail in 2016 are an inhibiting factor for new investments in solutions using renewable energy, primarily in regions with a high level of gas-based heating systems.


Political stability

Political stability creates regional predictability. At the same time, we are affected by the geopolitical situation and growing nationalism and protectionism in many countries, which may entail restrictions to free trade.


National economic policy instruments for switching to lower energy use and increasing the proportion of renewable energy have a high impact on our markets. Sudden changes in these instruments create a volatile market with a risk of short-term decisions.



Access to capital and the cost of financing is affected by interest rates. We also see a clear trend among investors and lenders to increasingly assess companies from a sustainability perspective, and this may be directly related to their willingness to finance projects.



NIBE’s markets can generally be described as fragmented. Competition is primarily local and regional. 

As our business grows into the climate control industry, we encounter large new international players and must compete with them accordingly. 


Our position 

Clear market size with room for growth

The total market size in our Business Areas is significant and the total market value is currently estimated to be nearly SEK 600 billion. The biggest market is that for domestic heating/cooling and ventilation, the NIBE Climate Solutions market, worth just over SEK 500 billion, followed by the NIBE Element market, worth just over SEK 50 billion, and the NIBE Stoves market, worth just over SEK 30 billion.


NIBE has a strong market position in the Nordic region in all three of the Group’s Business Areas. Despite an ambitious growth target of sales of SEK 20 billion by 2020, we can see that there is significant potential for acquisition-driven growth on a global level.


An international operator with the right business focus 

We have a growing international presence in industrialised markets on five continents. We are also continuing to enhance our capacity to meet demand worldwide, while increasing the diversification of operational risks.


In our opinion, we have a strong position and good opportunities to meet demand and achieve our vision – to create world-class solutions in sustainable energy. 


We are making an active contribution to the transition from fossil to renewable with the focus on energy efficiency enhancement and are developing our product portfolio in line with the direction the business environment needs to take.


A healthy corporate culture

Our roots in Småland, Sweden, with a long tradition of high productivity, good quality and efficient cost control, mean that we have a trust-based, decentralised organisation that has great flexibility to successfully meet the varied demands and conditions of the market.


Solid experience of acquisitions

We have implemented acquisitions for a long time and have a well-established acquisition process in terms of identification, implementation and operations. As our markets are globally fragmented with many operators, we still have good potential for further acquisitions.


Our acquisition-driven growth takes place within the framework of strong, healthy finances.

In 2016, we continued to work to identify our most important sustainability areas to ensure that we continue to focus on the right things in the future.



Stakeholder analysis and dialogue

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 performance: 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).

From these, we selected a number to approach via interviews and to collect information from notes at meetings. We also studied what stakeholders ask us about to ascertain what they are interested in. With some of the groups we have an ongoing open dialogue that permits us to compile qualitative information. The method for addressing each group was determined by the number of stakeholders in the group and the time available for practical implementation.


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. We see this as an ongoing process in which the data will be improved from year to year as we gather more facts. However, it was possible to compile a sufficient quantity of data during the year to create a representative basis for our materiality analysis.


Materiality analysis

With the Group’s working group for sustainability issues, Group management carried out a materiality analysis based on the areas that are regarded as most relevant to the Group’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

 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.
  • The decision to sign the Global Compact reinforced NIBE’s previously communicated values to respect human rights and take responsibility for the environment, working environment and ethical business methods.
  • NIBE has responded to the need to train its staff. In the last two years, we have implemented extensive training initiatives in ethical business practices and anti-corruption, primarily for those who have external contacts. 
  • NIBE has an accident rate target to create a safe working environment.
  • NIBE invests in energy efficiency enhancement and renewables in its own operations and has measurable targets for this.

Our added-value chain


We adds value based on the initiatives outlined above. An understanding of the world around us and dialogue with our stakeholders helps us choose the right priorities throughout the value chain. The result is that we maximise the positive value for our stakeholders and minimise any negative impact.




  • Working capital, including cash and bank balance SEK 5,503 m,of which new share issue SEK 3,024 m
  • Investments in fixed assets SEK 5.185 m, of which acquisitions SEK 4,744 m


  • 44 production plants in 18 countries

Intellectual capital

  • more than 70 brands

Human capital


  • 11 900 employees
  • Contractors
  • Partners

Natural resources and inputs


  • 66,000 tonnes of metals and metal oxides
  • 4,000 tonnes of stone, enamel and cement
  • 2 TWh of energy
  • 0.5 km² of building area
  • 1.2 km² of land area
  • 283,000 m³ of water
  • 10,000 tonnes of packaging materials



  • Customers
  • 35,000 shareholders
  • More than 50 local communities
  • Partnerships with trade associations
  • Collaboration with public authorities
  • Lenders
  • 3,500 suppliers

NIBE's production process

Product development

Aggressive product development with the focus on innovation for sustainable development adds value for customers, society and the environment.


Responsible purchasing subject to criteria for quality, ethical business principles and sustainability adds value for our suppliers, their employees and their subcontractors.


High productivity, efficient resource utilisation, minimum environmental impact and a good working environment add value in the form of optimum quality with minimum inputs.


Honest marketing of sustainable products and solutions lays the foundations for customer satisfaction, long-term relationships and stable earnings.

Products in use

Our products add value year after year in the form of reduced energy costs, reduced climate impact and better functionality.



Financial value


  • Customers Sales SEK 15.348 m
  • Suppliers Payments SEK 9.261 m
  • Investments SEK 5.156 m
  • Employees Salaries and social security contributions SEK 3.801 m
  • Public sector Tax SEK 360 m
  • Local community Sponsorship, donations SEK2 m
  • Shareholders Dividend SEK369 m
  • Lenders Intererst SEK 111 m



  • Percentage of LCE-classified products: 51,5%**
  • Heatpumps, renewable energi
  • Solar products, renewable energi
  • Heat exchangers, energy recovery, energy optimisation
  • Components, energy efficiency enhancement

**FTSE LCE ™ (Financial Times Stock Exchange Low Carbon Economy) is a quantitative model that is specially designed to form the basis for investors in assessing companies’ performance in the transition to a low carbon economy. Companies must disclose the proportion of their sales that is from classified product groups, and comparisons are made over time for each sector. The index is still in the development stage.

Environmental impact


  • 17,000 tonnes of waste
  • of which 15,000 tonnes were recycled and 1,200 tonnes went to external landfill
  • No fines for non-compliance with environmental legislation were reported

Atmospheric emissions


  • 12,000 tonnes of CO2 from production and buildings
  • 7,000 tonnes of VOC*
  • 19 tonnes of SOx*
  • 236 tonnes of NOx*
  • 12,000 tonnes of CO2 from own transportation 

*VOC = Volatile Organic Compounds

*NOx = Nitrogen oxides

*SOx = Sulphur oxides

Discharges into water


  • 6 tonnes of metals
  • 27 tonnes of oxygen absorbents
  • 13 tonnes of nutrients

Human impact

  • 10 accidents per million hours worked that resulted in at least one day of sick leave
  • Employee CPD, 190,000 hours
  • No cases of discrimination reported
  • No fines for non-compliance with labour legislation were reported
  • No whistleblower cases
  • 2 complaints from neighbours about noise
  • 3.8% sickness absence

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