Nolato’s long-term sustainable development targets cover social responsibility, environmental responsibility and business benefits.
The colorful hills close to Nolato's units in the northeastern US state of Vermont.
SUSTAINABLE DEVELOPMENT
Targets for sustainable development
The Group has 10 long-term sustainable development targets, based on Nolato’s overarching strategy and business. These are integral to Nolato’s sustainability strategy and linked to the UN Sustainable Development Goals and Agenda 2030.
Social responsibility
Nolato aims to create workplaces where we are proud to work, where our conduct and actions are guided by principles about ethics, integrity and respect for human rights, sound labor relations and good working conditions.
Safe workplaces
TARGET
The number of workplace accidents should be minimized. The long-term target is for no one to be injured at work.
MEASURES TO ACHIEVE GOAL
Actions are both preventive and systematic. Relevant international standards are introduced. Systems for registering and managing near misses should be in place at all units.
OUTCOME IN 2022
There were 4.5 (5.2) accidents resulting in absence per million hours worked. Systems for recording near misses are in place at 97% (90) of units and there are certified health and safety management systems in place at 7 (7) units.
Human rights and gender equality
TARGET
There should be no cases of infringements of human rights, discrimination or forced labor. The proportion of women in management positions should increase at all levels of Nolato.
MEASURES TO ACHIEVE GOAL
Nolato’s Code of Conduct was extensively updated in 2022, and included the start of planning for training courses and implementation of the Code, to begin in 2023. Female candidates should be prioritized for management appointments in cases of equal skills and suitability.
OUTCOME IN 2022
There were 4.5 (5.2) accidents resulting in absence per million hours worked. Women make up approximately 28% (27) of local management teams, of which 2 (1) subsidiaries have a female managing director.
Environmental responsibility
Nolato contributes to combating climate change and reducing our emissions by optimizing energy efficiency, increasing the percentage of renewable energy in our business, and cutting the carbon footprint of our value chain by replacing materials and using more renewable materials. We also help our customers by developing innovative, more sustainable products and solutions that enable a circular economy.
Energy
TARGET
More efficient energy use, and up until 2025 usage should decrease by 55% compared with the average for 2011–2012 (GWh/net sales).
MEASURES TO ACHIEVE GOAL
Continued investment in more energy-efficient production equipment, infrastructure and lighting. Increased automation could mean higher electricity consumption in the longer term.
OUTCOME IN 2022
Since 2011–2012, GWh/net sales has decreased by 52%, which means Nolato is on its way of achieving its target by 2025.
Carbon emissions
TARGET
Carbon dioxide emissions from energy consumption (Scope 1, 2) are to be reduced by 80% by 2025, compared with the average for 2011–2012 (tons/net sales).
MEASURES TO ACHIEVE GOAL
More efficient use of energy, installing heat pumps, procuring fossil-free electricity, fitting of own solar panels, contracts with solar farms, and phasing out fossil fuels.
OUTCOME IN 2022
Since 2011–2012, carbon dioxide emissions from energy consumption (tons/net sales) have declined by roughly 90 percentage points. Nolato is consequently on its way to achieving its target by 2025.
Chemical products
TARGET
Hazardous chemical substances should be identified and, where possible, phased out.
MEASURES TO ACHIEVE GOAL
A number of chemical substances have been identified as candidates to be phased out. Continued measures for the safe handling of chemical products are being implemented.
OUTCOME IN 2022
During the year, more than 30 (50) chemical products were replaced with alternatives that are better for the environment and for people’s health.
Climate impact: raw materials and products
TARGET
There should be an increase in the percentage of bio-based and recycled raw materials. Carbon dioxide emissions related to products (Scope 3) should be reduced by 5% between 2020 and 2025 (tons/net sales).
MEASURES TO ACHIEVE GOAL
The climate impact of products is being reduced through greater use of bio-based and reduced raw materials, together with designs that contribute to a circular economy. Nolato aims to be at the forefront of sustainability projects with customers and other stakeholders.
OUTCOME IN 2022
74 (60) tons of bio-based and 682 (1,441) tons of recycled plastics were used in 2022. The amount of recycled material has declined as the method was changed, and Nolato now uses a strict model that specifies the weight of recycled material, while the previous model specified the weight of recycled material contained in the material. The change has been made to ensure the calculation of Scope 3 emissions is correct. A number of projects with customers were successfully undertaken during the year and the number of specific discussions about renewable materials is growing.
Environmental management systems
TARGET
All units to be ISO 14001-certified.
MEASURES TO ACHIEVE GOAL
Acquired companies should be certified within two years.
OUTCOME IN 2022
72% (72) of production units are certified in accordance with ISO 14001.
Business benefits
Nolato promotes and applies sound business ethics and endeavors to combat all forms of corruption. We conduct business with a high level of integrity and expect the same of our suppliers and business partners. Taking responsibility for what we do and showing awareness are a core part of our corporate culture.
Anti-corruption
TARGET
There should be no cases of bribery, corruption or cartel formation. Continued up-to-date information to employees.
MEASURES TO ACHIEVE GOAL
Use of preventive procedures and the Code of Conduct, as well as monitoring of compliance. Training in the Code of Conduct and anti-corruption measures. Information about Nolato’s values, corporate culture and Code of Conduct are part of the onboarding process for all new employees. Extensive update of the Code of Conduct. Application of the whistleblower system throughout the Group.
OUTCOME IN 2022
61% of the Group’s purchasers were trained in anti-corruption towards the end of the year. The annual evaluation of Group companies’ anti-corruption measures indicated a persistently high level of ambition. No incidents relating to corruption or inadequate business ethics were reported in 2022. Business partners in risk zones were analyzed with regard to new restrictions in the EU and some business relationships were discontinued.
Customers
TARGET
Nolato aims to maintain a leading position and be perceived as the customer’s first choice within sustainable development.
MEASURES TO ACHIEVE GOAL
Trends and customer requirements within sustainable development should be identified and, were relevant, turned into practical measures. The overriding aim is to exceed customer expectations. Annual survey of customer satisfaction regarding customers’ perception of the company’s products and services, as well as future expectations.
OUTCOME IN 2022
Interest in climate issues, and renewable or recycled raw materials grew in 2022. Increased number of customer meetings in 2022 about solutions and alternatives that support sustainable development. Professional development and the use of digital tools to simulate products’ function and performance has helped optimize products’ use of resources and enabled circular flows. Start of development of a CO2e calculator, that provides guidance on the choice of alternative solutions and materials with regard to the carbon footprint. The model is scheduled to be ready by early 2023.
Suppliers
TARGET
By 2025, all strategic suppliers will be assessed according to Nolato’s guidelines for suppliers.
MEASURES TO ACHIEVE GOAL
In 2022, Nolato refined the Group’s guideline on categorizing suppliers so that it now also includes geopolitical risk level. Assessment of Nolato’s strategic suppliers using an extensive questionnaire on management systems and sustainability.
OUTCOME IN 2022
By year-end 2022, 60% of strategic suppliers had accepted Nolato’s Code of Conduct or had their own code of conduct corresponding to Nolato’s requirements.