The colorful hills close to Nolato's units in the northeastern US state of Vermont.

SUSTAINABLE DEVELOPMENT

Targets for sustainable development

Nolato has introduced long-term targets covering the environment, people and society. These targets support Agenda 2030 and the UN Sustainable Development Goals (SDGs).

The group-wide targets were updated in 2020. Below is an overview of the outcome of Nolato’s sustainability work.

Social responsibility

The Nolato Spirit is the Group’s Code of Conduct. It provides ethical guidance on issues concerning legal responsibility, accounting, conflicts of interest, working conditions, the environment, social responsibility and business ethics. The Code of Conduct also contains policies on the environment, health and safety and other areas. An updated version of The Nolato Spirit was issued in 2020 and employees are currently being informed about the new code. Long-term goals on social responsibility include initiatives that contribute to a safe work environment and respect for human rights. 

TARGET

 

Safe workplaces

The number of workplace accidents must be kept to a minimum, with the long-term goal of no injuries at work.

 

Human rights and gender equality

There should be no cases of infringements of human rights, discrimination or forced labor. The proportion of women in management positions should increase at Nolato at all levels.

Measures to achieve goal

 

Work should be both preventive and systematic. International standards should be introduced where relevant. ­Systems for registering and managing near misses should be in place at all units.

 

Up-to-date information to employees and new staff. Nolato should contribute towards employees’ personal development and create career opportunities.

OUTCOME IN 2020

 

There were 5.2 accidents resulting in absence per million hours worked (4.9). Systems for recording near misses are in place at 90% of units and there are certified management systems in place at 6 (6) units. 

 

Employee training was held on The Nolato Spirit. No cases of infringements of human rights were recorded. Recruitment of people with disabilities continued. Local management teams are made up of approximately 25% (25) women.

Environmental responsibility

Climate change brings both risks and opportunities for Nolato. Boosting energy efficiency and phasing out fossil fuels is reducing the Group’s carbon footprint. These measures also create preparedness for higher fees and taxes on carbon-emitting operations. Greater use of recycled and bio-based raw materials are other initiatives that will help reduce carbon emissions. So environmentally sustainable product development is a priority area, in which the Group’s expertise and technology can contribute to customers’ environmental and carbon reduction efforts. 

TARGET

 

Energy

More efficient energy use, and up until 2025 usage should decrease by 55% compared with the average for 2011–2012 (GWh/net sales).

 

Carbon emissions 

Emissions of carbon dioxide from energy consumption (Scope 1, 2) will be reduced by 80% by 2025 compared with the average for 2011–2012 (tons/net sales). Carbon dioxide emissions that are related to the products (Scope 3) will be reduced by 5% between 2020 and 2025 (tons/net sales).

 

 

Chemical products

Hazardous chemical substances should be identified and, where possible, phased out.

 

 

Raw materials and products

The percentage of bio-based and recycled raw materials should increase.

 

Environmental management systems

All units to be ISO 14001-certified. 

MEASURES TO ACHIEVE GOAL

 

Energy audits and continued investment in more energy-efficient production equipment, infrastructure and lighting. However, increased automation will mean higher electricity consumption.

 

The measures to cut our carbon footprint  are strong and consistent with the Paris Agreement’s goal of reducing global warming. Nolato’s measures include more efficient use of energy, heat pump installations, procurement of fossil-­free electricity, installation of solar panels and the phasing out of fossil fuels. The products’ environmental impact will decrease through greater use of bio-based and recycled raw materials.

 

 

A handful of chemical substances have been identified as candidates for phasing out. Continued measures for the safe handling of chemical products are being implemented.

 

Nolato will be the driving force in projects with customers and other stakeholders aimed at reducing the carbon footprint of existing or new products.

 

Acquired companies should be certified within two years.

OUTCOME 2020

 

The Group has significant energy requirements, but the resource is used in an increasingly efficient way. Since 2011–2012, GWh/net sales has decreased by more than 50 percentage points.

 

Since 2011–2012, carbon dioxide emissions from energy consumption (tons/net sales) have declined by roughly 70 percentage points. Emissions rose in 2020. This was due to increased production in countries with fossil-­based energy systems. One key climate measure that remains important is to enable the procurement of fossil-free electricity in China and the US. The use of bio-based and recycled plastic raw materials is currently helping reduce carbon dioxide emissions to a limited extent. 

 

A number of raw materials within silicone rubber were phased out in 2020. The reason was that hazards relating to certain cyclic siloxanes were detected by the European Chemicals Agency.

 

56 (43) tons of bio-based and 764 (626) tons of recycled plastics were used. It is positive to see that customer interest increased, and that a number of projects were carried out in this area.

 

91% of production units are certified in accordance with ISO 14001. 

Business benefits

Nolato business principles are characterized by integrity, responsibility and good ethics – basic principles that are shared with suppliers, customers and others affected by Nolato’s business operations. Prevention of corruption is a high priority. The Nolato Spirit is based in part on the Global Compact, and provides support for employees and reassurance when interacting with customers and other stakeholders. 

TARGET

 

Anti-corruption

There should be no cases of bribery, corruption or cartel formation. Continued up-to-date information to employees. 

 

Customers

Nolato aims to maintain a leading position and be perceived as the customer’s first choice within sustainable development.

 

Suppliers

By 2025, all strategic suppliers will be assessed according to Nolato’s guidelines for suppliers.

Measures to achieve goal

 

Continued application of preventive procedures and controls. In addition, training, information and discussions are tools being used in anti-corruption work. The whistleblowing system is to be applied throughout the entire Group.

 

Trends and customer requirements within sustainable development should be identified and, where relevant, turned into practical measures. The overriding aim is to exceed customer expectations.

 

Strategic suppliers represent 80% of purchasing expenditure, or can have a direct impact on Nolato’s product quality and/or sustainability work.

Outcome in 2020

 

The annual evaluation of Group companies’ anti-corruption measures indicated a persistently high level of ambition. No incidents were recorded relating to corruption or inadequate business ethics. 

 

The majority of the Group’s companies managed customer requirements within sustainable development. Interest in renewable or recycled raw materials grew. Customers completed a significant number of evaluations, which on the whole gave Nolato excellent ratings. 

 

The guidelines for suppliers were updated during the year. In 2020, roughly 240 (200) evaluations of suppliers’ sustainability work were conducted. The suppliers satisfied Nolato’s requirements at an acceptable or good level.