Sustainovate progress report 2020 - Husqvarna Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Sustainovate progress report 2020
Key data
Chapter 1/
10.7
Introduction
Operating margin excluding items
affecting comparability, % (7.9)
12,374 Average number
Husqvarna Group is a leading global producer of of employees (12,708)
4,484
outdoor power products for forest, park and
garden care, watering products as well as cutting
and surface preparation equipment for the Operating income excluding items
affecting comparability, SEKm (3,241)
construction business. Our strong technical
expertise and passion for innovation and quality
create performance, pride, and improved results -52%
CO2 emissions intensity
for customers.
Contents
41,943
Net sales, SEKm (42,277)
INTRODUCTION SUSTAINOVATE PERFORMANCE INTEGRATING SUSTAINABILITY UNDERSTANDING IMPACTS
3 Husqvarna Group Carbon 30 Engaged teams 41 Business model
4 Sustainovate 10 Climate smart, fit for the future 32 Responsible sourcing 43 Our most relevant issues
5 CEO statement 12 The shift to low-carbon products 33 Safety net 44 Impacts along the value chain
6 A changing world 16 Operational efficiencies 35 Safety at the heart of all products
7 The COVID game changer 17 Supplier CO2 impacts 36 A foundation of integrity ABOUT THIS REPORT
8 The value we create 18 From air to sea, road and rail 37 Managing risks 47 GRI Index
Circular 38 Climate change risks 49 GRI Disclosures
19 Why we’re thinking in circles 39 Turning Sustainovate into reality 53 Auditor’s report
People
23 Influencing actions that matter
2020 targets
27 Closing the books on 2020 targets
2 / Sustainovate Progress Report 2020 / Husqvarna Group
Our divisions
Introduction –– Husqvarna Group
Our core purpose
Husqvarna A leader in forest and
Passion for innovation is what defines us.
garden products. The
undisputed market It’s in our DNA and part of our long history
63%
leader in robotic lawn and heritage. It is what has shaped our com-
pany into what it is today. It has also become a
mowers.
vital part in our work towards a sustainable
future. We leverage technology to turn
opportunities into value for our customers.
Share of Group net sales Through our purpose we deliver on our vision.
Our vision
Gardena A leader in watering
products, garden Shaping great experiences is what
hand tools and smart drives us forward. It is our inspiration.
22%
garden systems. We are proud to be leaders in sustainable,
user-centered solutions. Through our prod-
ucts and services, we partner to shape the
green spaces and urban environments of
Share of Group net sales today and of tomorrow.
Our key behaviors
It starts with me—take ownership
Construction A leader in light con- and ask myself: What can I do?
struction products for
• Seek customers’ point of view in all
professionals.
14%
meetings and decisions
• Demonstrate collaboration by giving
and seeking support
• Maintain focus and simplicity.
Share of Group net sales
3 / Sustainovate Progress Report 2020 / Husqvarna Group The divisions’ share of Group net sales add up to less than 100 percent due to other Group items.
Introduction –– Sustainovate 2025
Carbon Circular People
The second chapter of Sustainovate has begun.
The Group has set new, bolder targets that align
and strengthen the 2025 business strategy and Drive the transition to Rethink and redesign for a Inspire actions that make
underline how the sustainability agenda is busi- low-carbon solutions resource-smart customer a lasting difference
ness critical. Going from five challenges to three experience
opportunities, Sustainovate to 2025 is designed
By 2025, we will empower
to maximize our contribution to tackling climate By 2025, we’ll reduce our
By 2025, we’ll launch 5 million customers and
change and resource scarcity. Together, they will absolute CO2 emissions by
50 circular innovations.** colleagues to make
drive the Group’s ambitions to lead the industry 35% across our value chain.*
sustainable choices.**
in the shift to a low-carbon, resource-smart economy.
* Compared to 2015. * * We will begin reporting in 2021.
For more information on 2020 target outcomes, see p. 27.
4 / Sustainovate Progress Report 2020 / Husqvarna Group
CEO STATEMENT /
Introduction –– CEO
Henric Andersson – President and CEO
Delivering transformation
As a market leader, we aim to lead supplier target. Even more importantly, we that we are on track for the 35 percent
realized our intention to integrate sus- reduction. During 2021, as we follow market
action to address climate change
tainability deeper into our business and to development of the Covid-19 pandemic, we
and resource scarcity in our industry. engage more people in the organization. will follow the trajectory and, if necessary,
Society needs to shift to a low- Now, a number of these Sustainovate chal- revisit the target to align with our climate
lenges are taking on more operational roles. leadership ambition.
carbon, circular economy now more
The most outstanding outcome during In Sustainovate’s People opportunity we
than ever. Every business has a role the year was in carbon emissions, where we want to encourage and enable people to
to play. far exceeded the intention we set in 2015. make sustainable choices. This applies to
Especially in the last three years of the tar- external stakeholders but also to our corp-
get, we have shown that we can grow our orate culture. Our Diversity & Inclusion pro-
Our passion for sustainable innovation business, but not at the expense of our com- gram will continue to build on our commit-
With Sustainovate, we are combining our mitment to contribute to limiting a global ment.
leading innovation capability with our com- temperature rise to 1.5°C. Although I have been with the Group for
mitment to sustainability. Sustainability is an quite some time, this is my first year as CEO
integral part of everything we do and of Looking ahead of Husqvarna Group. The commitment to
shaping great experiences when people use The second chapter of Sustainovate the UN Global Compact and its ten prin-
our products and services or interact with us. addresses three opportunities — Carbon, ciples that we made some twenty years ago
Thanks to an ever-increasing focus on Circular and People — through to 2025. We will continue to serve as the foundation of
battery products, robotic mowers, and digi- will begin to report on progress on two of how we conduct business across our value
tal services we are delivering the resource- their targets next year. Carbon, however, is an chain.
smart, low-carbon solutions that our cus- extension of what we started in 2015.
tomers increasingly seek. These are also We are committing to an absolute carbon Transforming our industry
largely the areas where we are growing our reduction of 35 percent. Our 2020 performance showed what we are
business. Electric-powered and robotics This revised target is an ambitious one, capable of, and Covid-19 testified to the
products now account for 33 percent of our and primarily reflects growth of battery and resilience of our organization. The pan-
motorized offering. That is a remarkable robotics products over a ten-year period. As demic deepened our understanding of the
achievement from 11 percent in 2015. we have learned from tracking the target’s need to work together to tackle shared chal-
first five years, results can rise and fall year- lenges. It also made it clear how we can
Closing the books on 2020 on-year. In 2020, with a 32 percent absolute adapt to challenges, which is vital as we
The first phase of Sustainovate encom- reduction, we took a big leap forward to address climate change.
passed five challenges to 2020 and I am achieving the target, but we can’t rest on our We are determined to spearhead the
proud to present the results in this report. laurels. Taking into account the effects of transformation of our industry and to deliver Henric Andersson
We achieved four of five targets and were 2020 performance and likely rebound on Sustainovate 2025. – President and CEO
close to realizing the remaining one; our effects in 2021 and beyond, we estimate
5 / Sustainovate Progress Report 2020 / Husqvarna Group
Introduction –– Megatrends
A changing world
The impacts of climate change, demographic shifts and competition for
scarce resources are affecting society at large and are redefining the way
companies deliver value. These trends and drivers are critical to executing
our strategy to 2025.
SHIFTING CONSUMER
VALUES AND URBANIZATION
THE ENERGY SPEED OF PURCHASING AND NEW
TRANSFORMATION TECHNOLOGY BEHAVIOR CUSTOMER GROUPS
The urgency of addressing climate change Digitalization is transforming how products By 2030, global middle-class spending is Cities, in particular, are driving the sus-
makes low-carbon solutions a growing prio- are developed, sold, used, serviced and projected to triple. Sustainability values, tainability agenda. By 2030, two thirds of the
rity for customers and regulators. Mean- shared. Digital offers, such as smart garden individualism, personal expression, ease of population will live in cities. Europe and
while, technological improvements are ena- solutions and fleet-management systems use and affordability all have an impact on North America will have more over-55s than
bling viable and affordable energy storage. for commercial users, position us to deliver purchasing decisions. under-18s.
This creates opportunities to leverage more efficient services, consume fewer
renewable electricity. resources and extend product life.
Sustainability opportunities and risks Sustainability opportunities and risks Sustainability opportunities and risks Sustainability opportunities and risks
• Products that go beyond fuel-efficiency • Analyzing data from devices and robotic • Growing emphasis on sharing products • More green spaces are needed as cities
standards give us a competitive advan- technology delivers greater customer instead of owning them provides oppor- expand. For us, this creates openings in
tage. insight, helps us develop product features tunities for circular business models. public sector procurement and connecting
• Battery technologies and the rise in the that enhance productivity, efficiency and • Stakeholders expect us to meet high urbanites with nature through gardening.
share of renewables in the electricity grid safety. Digitalization also enables product human rights and environmental stan- • Changing customer demographics create
help consumers and professionals shift to sharing. dards, especially in the supply chain. scope for innovation in ergonomics and
renewable energy. • Digitalized manufacturing and product • Growth in emerging markets, many of building safety.
• Growth opportunities for battery and development raise quality, shorten time to which rely on fossil-fuel energy, may nega- • Urban spread into green zones puts pres-
electric solutions and robotics. market and make factories and work- tively impact our carbon footprint. sure on biodiversity. We can raise aware-
places more energy-efficient. ness on how consumers can protect living
• Along with increased use of lithium ion • The shift to e-commerce changes sales
battery, we need greater transparency • Cyber and other threats to security have a channels and may increase our transpor- things and can ensure that our products
and action on human rights and environ- growing impact on business operations tation CO2 from online sales. do not adversely affect local biodiversity.
mental risks along the value chain. and customers’ privacy.
6 / Sustainovate Progress Report 2020 / Husqvarna Group
INTERVIEW /
Introduction –– Megatrends
Kalvis Mihailovs – Group sustainability director
The COVID game changer
Kalvis Mihailovs, Group Sustainability Director and member of the Group’s COVID response
team explains how the pandemic influenced the outcome of our 2020 targets and what we
have learned about strategic sustainability risks.
How did the pandemic change your understan- perature screening, and a new health & safety guide-
ding of sustainability risks and opportunities? line. We also partnered with International SOS and
It’s still too early to understand the long-term impacts conducted inspections on our preparedness at 16
of Covid. But like many companies, we see more sites.
clearly the connection between what is going on in Our second priority was securing our supply chain
society and the success of our business. We also see and ensuring that production was up and running.
how difficult it is to anticipate how fast change can We shared production across Group plants to alle-
happen. After the financial crisis of 2008, many busi- viate pressure in affected areas. In the UK, we closed
nesses put sustainability on hold while they fixed operations for 10 days at short notice and shifted
financial priorities. It’s different now. Sustainability is robotics production to sites in less affected regions.
talked about more as part of the solution. Thirdly, our focus was on rethinking how we can
The year also showed us what can happen when you bring programs like Sustainovate to their successful
underestimate the likelihood and consequences of conclusion. We were unable to complete physical
systemic risks. This crisis taught us a lot about how we audits that were necessary for the supplier challenge,
can manage risks linked to climate change. so we switched to remote audits. Audits fell short by
10 percent. Measuring the outcome of the Team chal-
How did COVID impact operations and our ability lenge was impacted as well. But there were upsides,
to achieve our 2020 targets? too. Many consumers found comfort in their gardens
It set the scene for the final year of our targets, both and chose smart low-carbon solutions, which bene-
positively and negatively. Our first priority was Covid’s fited our bottom line and the carbon target. Now our
impacts on the health, safety and well-being of our challenge is to convert this shift into lasting change.
people. Many worked from home, but for those peo-
Kalvis Mihailovs – Group sustainability director ple in production, safe social distancing was a priority.
We produced our own face masks, introduced tem-
7 / Sustainovate Progress Report 2020 / Husqvarna Group
Introduction –– Strategic milestone
The value we create ENVIRONMENTAL & FINANCIAL VALUE
We want the value we bring to be measured from a Decoupling CO2 from Sales
Billion SEK
CO2 absolute
reduction in percent
triple bottom line perspective; seen through the lens business growth 45 20%
of financial value, value for people and society and Husqvarna Group aims to drastically cut CO2 emissions 10%
benefits to the environment. Here are some ways while profitably growing the business. Measuring pro-
40 0%
Sustainovate supports our efforts. gress against sales growth and absolute CO2 emis-
sions reduction is one way to track how the Group -10%
delivers on this aim. -20%
35
Particularly over the last three years, performance
shows that the CO2 target - which includes emissions -30%
ENVIRONMENTAL & SOCIAL VALUE from suppliers, manufacturing, transport, and product 30 -40%
use - is deeply connected to business objectives. Over 2015 2016 2017 2018 2019 2020
In support of the SDGs the first five years, performance shows that results can Net sales
The UN’s Sustainable Development Goals (SDGs) are a rise and fall year-on-year. Absolute CO2 reduction along the value chain
17-point plan for ending extreme poverty, fighting in- Taking into account the effects of 2020 performance
and likely rebound effects in 2021 and beyond, we esti- Over the last five years, we have reduced our abso-
equality and injustice and protecting the planet to
lute CO2 emissions by 32 percent while increasing
2030. Achieving the SDGs requires significant effort at mate that we are on track to achieving the 35% reduc-
sales by 16 percent.
all levels of society—not least in business, which has a tion target within five years.
critical role to play as a change agent.
Husqvarna Group can influence many of the SDGs by
reducing negative impacts of our operations, contribut-
ing to positive change along our value chain and engag-
ing in society at large. But most of all, our 2025 Sustaino- ENVIRONMENTAL & CUSTOMER VALUE
vate opportunities position us to contribute to three of
the SDGs: Karin Falk – President, Construction division
We asked Karin Falk, newly nation with improving energy efficiency of products
Sustainable cities and providing access to appointed President, Construction with combustion engines.
safe, inclusive and accessible green and division on how Sustainovate can
support the division’s ability to How can you further enhance the customer
public spaces.
create value for customers. experience?
We work closely with our customers and their priorities
Reducing waste through prevention, How does Sustainovate support guide our innovation. Enhancing their experience is a
reduction, recycling and reuse. your business objectives? combination of reducing the environmental impact of
Sustainability is a long-term target, but it’s also here products and innovating for safety. We are investing
Raising awareness and actively adapting and now. It plays a crucial role in our strategy. We are substantially in innovation and product development
to low-carbon solutions and mitigating cli- working to continuously reduce our environmental in these two areas - by expanding our battery product
mate risks. footprint and increase the safe use of our products. range and by launching solutions to promote sound
We will reduce CO2 by transitioning to electric power, ergonomics, worker safety and better management of
both corded and battery-powered products in combi- dust and slurry at construction sites.
8 / Sustainovate Progress Report 2020 / Husqvarna Group
Chapter 2/
Sustainovate
performance
The need for sustainable solutions has never been greater.
Building on the creativity of our teams, we are pioneering
pathways for step-change efficiency and smarter resource use.
9 / Sustainovate Progress Report 2020 / Husqvarna Group
Carbon 2020 HIGHLIGHTS
Sustainovate performance –– Carbon
• Far exceeded the 2020 intensity target of a
10% reduction across the value chain,
achieving a 52% reduction
• With the 2025 target, launched a revised
Science-based target to align with 1.5 °C
• The share of battery and robotics products rose
to 33%, up from 11% in 2015
• 62% of our electricity derives from renewable
sources, up from 1% in 2015
• Nearly doubled supplier engagement in
reporting on CO2 emissions.
NEXT STEP
• Launch of Husqvarna’s hybrid ride-on mower
• Pilot launch, road show and marketing CEORA
Climate smart, •
professional robotic lawnmower
Increase share of renewable energy
fit for the future
• Engage suppliers on CDP reporting.
The value we create
We are transitioning to low-carbon solutions
in every aspect of our products’ lifecycle, and
in ways that benefit customers and deliver
value to the bottom line. But the transition
Over the last five years, our fore- target is a 35 percent absolute reduction in the world needs is to a zero-carbon economy.
CO2 emissions across our value chain. Battery technology and robotics have a
most priority has been to reduce significant role to play in making this a reality.
CO2 emissions. With accelerating An exceptional year Stronger cooperation with suppliers, leaner
manufacturing and smarter product design can
growth in sales of battery products 2020 was an exceptional year. While the CO2
outcome is welcome, we achieved higher prevent hundreds of thousands of tons of CO2
and digitalized services, our CO2 from entering the atmosphere every year. This
reductions than was projected for one year.
performance is strong. This result was due to three events: is how we can contribute to tackling the greatest
challenge of our time.
increased sales of battery and robotic prod-
ucts, a reduced market for largely petrol-
Our 2020 carbon target was to achieve a powered construction equipment during TARGET
CO2 emissions intensity reduction of 10
percent in 2020, compared to 2015. At year
Covid, and faster than expected effects of By 2025, we’ll reduce our
the 2019-2020 exit of petrol walk-behind
end, we achieved a 52 percent reduction. absolute CO2 emissions by
lawn mowers in North America.
As of this year, the target is translated into As we have learned from tracking the tar- 35% across our value chain.
an absolute target and we are raising the get’s first five years, results can rise and fall
bar on our performance further. Our new year-on-year. Taking into account the effects
10 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
of 2020 performance and likely rebound CO2 emissions in the value chain
Our approach
effects in 2021 and beyond, we estimate that
we are on track to achieving the 35% abso- Suppliers, 5%
Our carbon targets for 2020 and 2025 emissions during the entire prod-
Manufacturing, 1%
lute reduction in 2025. Transportation, 1% cover emissions across the value uct’s lifetime.
During the year, we made further Product use, 91% chain, from suppliers and operations • For suppliers, Scope 1 and Scope
improvements to our approach to supply Other 2% to transportation and product use. 2 emissions data is primarily drawn
chain CO2 reductions, which was an aspect Our product life-cycle The overarching 2020 CO2 target was from CDP Supply Chain disclo-
of our sub-targets that had been lagging. assessments confirm to achieve a 10 percent CO2 emis- sures. Not all suppliers report their
Supplier emissions are our largest impact that overwhelingly, our sions intensity reduction across the
greatest CO2 impact CO2 emissions however. To pro-
after product use (p. 16). value chain. All four sub targets —
occurs during the use of vide estimates for these suppliers,
Find out more about the status of the four our products. products, supplier, transport and
we use CDP extrapolated data.
areas covered in our sub targets on the fol- operations — were relative to value
lowing pages. added. The 2025 target is an abso- • In operations, energy consumed at
lute target, reflecting the same factories, warehouses, R&D
scope. centers and offices is measured,
Divisions drive targets through calculated and managed on a site-
their own initiatives, relevant to their by-site basis, which is then calcu-
business context. Heads of sourcing, lated on Group level.
manufacturing, transportation and • In transport, CO2 emissions are
product development own their tracked per tons shipped in order
respective share of the target and ini- to reflect how we reduce our
tiatives. impact relative to increased sales.
Cross-divisional networks within When measuring progress, we
areas such as CO2, technology and include all transport the Group
suppliers regularly convene with pays for, through which we have
managers from every division to the greatest CO2 impact, and
share best practice, opportunities where we have access to data. This
and identify barriers to realizing the spans all our air and ocean freight
OUR COMMITMENT TO NET ZERO, EVEN BEYOND OUR OPERATIONS target.
During the process of shaping our 2025 opportunities, our new CO2 target was and a share of road and rail trans-
approved as our Science-based target (SBT). The SBT Initiative requires that com- Reporting on progress port.
pany targets take into account the CO2 emissions that occur beyond their own We report progress on the 2025
operations and when products are in use. The latter is by far the most challenging Emissions are then aggregated on
target tailored to each aspect of
aspect to calculate and influence. Our ambition is high and our target reflects our Group level. Progress is reported to
the value chain.
commitment to reducing our fair share of CO2 in line with society’s ambition to limit Group Management on a quarterly
• For products, we calculate CO2 basis.
a temperature rise of 1.5 °C. We have also put a stake in the ground, whereby we
commit to net-zero emissions across our value chain by 2050 at the latest.
11 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
The shift to
low-carbon products
We are transitioning to low-carbon Facilitating battery use
Today, Husqvarna division offers nine inter-
solutions in three ways: Expanding
changeable batteries that fit more than 50
our offering of battery-powered and products in our 36V system. It thereby has a
robotic products, developing new battery alternative for all petrol-driven hand-
held products used in urban and suburban
business models based on digital-
areas. We intend to introduce battery alter-
ized solutions, and improving effi- natives for the forestry sector as a next step.
ciency of petrol and electrical products. Gardena is a founding member of the
‘Power for all’ alliance with Bosch. In this
Within motorized products, about 33 per- way, consumers will be able to use the same
cent of our business is represented by bat- 18-volt battery to operate power tools, gar-
tery-powered, robotics and corded prod- den tools and household appliances. (p. 21)
ucts. Our petrol-powered products still This partnership has the dual benefit of con-
account for the largest share. However, our tributing to carbon and circular targets.
future lies with an offering designed for a Construction division has a stated ambi-
low-carbon energy mix. This shift makes tion to be a leader in battery technologies in
CO2 emissions intensity
business sense, adds customer value and is its sector and expects to roll out a number from product use
a sound and sustainable path forward. of battery products, which started with the
This year, SEK 1,711m was invested in launch of the K535i power cutter in 2019.
R&D, a large share of which was dedicated In 2019, we reported on the establish- tCO2e/SEKm VA
700
to product innovation and efficiency. Invest- ment of the Group’s battery competence
ments focused primarily on developing our center. Its purpose is to bring together tech- 600
battery and robotics offering. But we are nology know-how from across our divisions 500
also investing heavily in innovating con- and applications. The center supports each 400
nected solutions, through precision compe- division to deliver solutions to market faster. 300
tence in AI and digitalization. We have been It also improves cost efficiency, ensures bet-
200
recruiting experts in the area since 2015 and ter control of the supply chain and anchors
100
built strategic partnerships with organiza- our technology and sustainability leadership
tions such as Sweden’s innovation agency position. Drawing on the competence of our 0
2015 2016 2017 2018 2019 2020
Vinnova, Chalmers University, the City of battery center, we began producing battery
CO2 emissions intensity from product use were
Gothenburg and startups to inspire innova- packs in-house this year and launched a reduced by 52% between 2015 and 2020.
tion to go electric. hybrid rider with a state-of-the-art battery pack.
12 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
Efficiency gains
A large share of our business will continue Percentage of sales of battery
within petrol-powered products and and electrical p
roducts
increasing efficiency is a priority. On aver-
age, we decreased fuel consumption in
these products by between 15 and 20 per- %
40
cent compared to previous product ver-
sions. Steep improvements in fuel efficiency
will continue. 30
Biofuels are already a viable option. In
2020, we worked with Finnish fuel producer
20
Neste to test and launch Husqvarna XP
Re-Power 2 and Power 4, bespoke biofuel
alternatives for use in small engines. Avail- 10
able in Europe, Re-power contains 10 per-
cent biofuel mixed with petrol and it is cli-
mate compensated for its remaining CO2 0
2015 2016 2017 2018 2019 2020
emissions.
Regulatory compliance will push effi- Approximately 33% of total sales of motor-
ciency further for handheld petrol-products. ized products are battery, electrical products
In Europe, representing over half of our mar- and robotics compared to 11% in 2015.
ket for petrol-powered products, EU6
requirements for reduced emissions are in
the pipeline. R&D efforts today will bring
between 25 and 35 percent CO2 reduction
in this equipment when rolled out in 2026.
Husqvarna and Construction divisions
aim to expand their presence in emerging
markets; many of which will be served
through petrol-driven equipment. We see
growing regulatory demands for them,
especially in China.
13 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
Electric!
Lean power machine
With hybrid and battery solutions Many customers working in construction still rely on petrol and
we’re helping customers get plugged diesel to power their products, especially for heavy-duty pur-
poses.
in to a future with renewables. Generators are fallback electricity sources for many construc-
tion sites when access to the grid is not possible. Construction
division’s Power Pack is a fuel-saving automatic power-on-
demand, adjustable for different equipment. Power-on-demand
can be switched off when constant power is desired.
CEORA - Coming soon to
a soccer field near you!
The new Husqvarna CEORA promises
to deliver large-scale mowing with
low noise and huge cost savings, but
without the direct emissions.
This revolutionary profes-
sional robotic mower can
manage grass areas of up to Ride on down the greenway
50,000 m2, and can replace In 2020, we introduced the P535HX rider that
petrol-driven ride ons that combines options to power the lawnmower by
often populate golf clubs, battery and diesel fuel. Despite their CO2
soccer fields and public downsides, petrol-driven ride ons have domi-
parks. The big unveil of nated the market, especially for heavy-duty
CEORA will be in 2021 and needs. With its potential CO2 savings of up to
ready for release in 2022. 30 percent, this new rider heralds a new era.
14 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
The climate impact of robotic lawn mowers vs. petrol ride-on
GWP/season (kg) End-of-Life
500 Use
Production
400
Using a robotic lawn mower is
the preferable alternative on all
A pathway to low-carbon solutions
300
markets; its CO2 impact is about
80-90% less per cutting season if it
Batteries are fundamental to robotics and batteries are also key to transitioning to 200 is used continually over the asses-
sed lifetime. The LCA comparison
low-carbon energy systems. They enable users to connect to electricity deriving is based on customers with 5,000
from renewable sources to power their products. 100 m2 sized lawns.
When the energy mix is solely based on renewables like wind power, the poten-
0 An LCA comparison of a robotic
tial CO2 savings of battery products is remarkable. Swedish users emit less CO2 All lawn mower 550 and petrol-driven
DK FI FR DE SE CH markets
during the use of their mowers because of the high share of renewable energy in Ride on mower R214TC.
the power grid. In Germany, CO2 emissions are slightly higher due to current reli- Robotic lawn Ride on
mower 550 mower R214TC
ance on coal in some regions.
Business ambition for 1.5°C
We want society to emerge from Covid-19 Ambition for 1.5°C, a letter to reaffirm our 2050 at the latest,” Henric Andersson,
with an even stronger resolve to shift to a commitment to operate our business Husqvarna Group President & CEO states.
resource-smart economy. But we can’t do aligned with a pathway to keeping to As of year-end 2020, some 363 CEOs
this alone. We need to gather business 1.5°C. have signed the Business Ambition for
leaders in a strong commitment to “By signing the Business Ambition for 1.5°C commitment, which is led by the
change. 1.5°C, we are committing to achieve our Science Based Target Initiative in partner-
In May 2020, Group CEO Henric Science-based target and reach net zero ship with the UN Global Compact and the
Andersson joined a global group of busi- CO2 emissions across our value chain by We Mean Business coalition.
ness leaders in sending Business
15 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
Operational efficiencies
Climate neutral is no longer an towards fully renewable, with 60 percent of
their electricity and Construction division
aspiration, it is a tangible commit-
has 15 percent. Some 17 sites within the
ment. Well over half of the electricity Group have yet to secure 100 percent
we use in plants, warehouses and renewable electricity agreements.
offices comes from renewable sources. Going renewable
Solar capabilities are up in Nashville, U.S.,
By year end, we reduced CO2 emissions
Changzhou in China and to a small degree
intensity from operations by 73 percent
in Huskvarna, Sweden. This reduces CO2
since 2015, well beyond our 2020 target of
emissions and makes us at least partly inde-
30 percent. This is largely thanks to increas-
pendent from local power grids. Solar elec-
ingly sourcing renewable electricity. Today,
tricity covers about 31 percent of Chang-
62 percent of our electricity derives from
zhou’s needs and 12 percent for the Nash-
renewable sources, up from 58 percent in
ville plastics site in the US. In 2022, we will
2019 and 1 percent in 2015.
install wind power at the Construction fac-
As per our life-cycle analysis, emissions CO2 emissions intensity
tory in Ath, Belgium. Share of renewable electricity
from manufacturing represent about one from manufacturing
percent of our total CO2 footprint. But Manufacturing equipment tCO2e/SEKm VA
actions here have not only reduced CO2 % 20
We are also reducing our electricity use 70
emissions, it also lowers costs and engages
through awareness raising and investments
our organization in Sustainovate. Unchanged 60
in efficient production equipment such as 15
from 2019, our Group operated 30 produc-
moulding machines. Gardena has also 50
tion facilities, of which 20 were in Europe,
included energy management requirements 40
four in the U.S., three in China, one each in 10
for purchasing new machines.
Brazil, Japan and Australia. Some are 30
This year, we made investments in effi-
located in fossil-fuel intensive regions.
cient equipment valued at SEK 1,292m 20
Gardena is leading the Group in securing 5
(1,577m).
the largest share of renewable electricity. As 10
Through efforts to reduce our energy use,
of 2021, all of its electricity use will derive 0 0
total consumption has fallen by 24 (16) per- 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
from renewables, thanks to agreements for
cent since 2015, while our sales have
plants in Australia and in Germany. 62% of the electricty used in operations derive The CO2 emissions intensity deriving from man-
increased by 16 (17) percent. from renewable sources, compared to 1% in 2015. ufacturing was reduced by 73% between 2015.
Husqvarna division is also edging
16 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
Increased transparency
of supplier CO2 impacts
Engagement in the CDP Supply target. With many suppliers located in
regions dependent on carbon-intensive
Chain program has improved our
electricity, such as China and Eastern
insight and capabilities in supply Europe, it is important to align reporting on
chain CO2 impacts, delivering the our CO2 impacts.
We intend to leverage our purchasing
results we needed to meet our 2020
spend in order to help suppliers prioritize
target. energy efficiency and encourage them to
use renewable electricity where it is an
We have reduced CO2 emissions intensity option. As we are one of many customers for
from our supply chain with 38 percent since most suppliers, we must be able to present
2015. a strong business case for them, have
Doing business with us is contingent on ongoing dialogue and the right tools at
reducing CO2 . As of 2019, we have been hand. We have a fourfold approach to
engaging suppliers to provide us with data engaging them:
on our upstream CO2 emissions through the
• We require suppliers to measure and
CDP Supply Chain program. CDP (formerly
report CO2 emissions to the CDP
the Carbon Disclosure Project) is a respected CO2 emissions intensity
CO2 emissions information hub for investors. • We require suppliers to identify actions from suppliers
This year, 72 of 186 suppliers responded on how to reduce CO2 emissions
to our request to disclose their emissions. In • We encourage suppliers to set CO2 tCO2e/SEKm VA
2019, 42 of 60 were engaged in a pilot. 2020 reduction targets 30
is the first year we disclose supplier emis-
• We encourage them to set a
sions; in previous years data was not suffi-
Science- based target. 20
ciently available.
Some 69 percent of our respondents had
We train commodity managers on the CDP
CO2 reduction initiatives in place and 58% 10
program to equip them to engage suppliers
had reduction targets.
and guide them in their own reductions. In
Through the CDP, we have more reliable
addition to ongoing engagement, we follow
data, and have worked more proactively 0
up with suppliers throughout CDP disclo- 2015 2016 2017 2018 2019 2020
with suppliers on how to achieve efficiency
sure cycle. Supplier CO2 emissions intensity was
gains. Supply chain impacts could poten- reduced by 38% between 2015 and 2020.
tially be a barrier to achieving our carbon
17 / Sustainovate Progress Report 2020 / Husqvarna GroupCarbon
Sustainovate performance –– Carbon
From air to sea, road and rail
We ended the year with our 200,000 SEK in funds that is reinvested in
other carbon reduction initiatives. Regular
target on track, despite some follow ups help ensure that our CO2 aims
obstacles of transporting are an integral part of our just-in-time
approach. We follow up on performance on
goods across borders in a a quarterly basis.
pandemic. Rail is used as a transport option, includ-
ing from Asia to Europe, which we intend to
increase. It is several times cheaper and cuts
Group-wide, our transport CO2 emissions
CO2 emissions 25-fold per ton shipped.
were reduced by 30 percent compared to
the 2015 baseline and in terms of CO2 inten- Smart packaging delivers CO2 savings
sity. We have shipped lower volumes, On Group level, we introduced Husqvarna
thanks to a more optimized transport net- Improved Print Packaging Opportunity
work and improved supply and demand (HiPPO) in 2017, a program to rethink pack-
planning to reduce air freight. We have also CO2 emissions intensity
aging solutions and product design in order from transportation
introduced smarter packaging that to improve transport volume efficiency.
increases the shipment fill-rate. Each division is leveraging this work to tCO 2e/SEKm VA
Shifting from air to sea, rail and road is by reduce the volume of their transported 5
far the most effective way for us to limit CO2 products. Through these initiatives, we are
emissions from transport. In 2018, we com- achieving sizeable cost savings and CO2
4
mitted to limiting just-in-time air freight for reductions. Some examples that underline 3
some customers. This was achieved despite their potential include:
increased logistics complexity and last- 2
minute delivery requirements. We remain • Packaging to better fit EU standardized
intent on shifting away from air freight as pallets, offers CO2 saving of 473 tons for 1
much as possible across our divisions. outbound packaging
0
The use of an internal pricing mechanism • New inbound packaging generates a sav- 2015 2016 2017 2018 2019 2020
for air freight was helpful for keeping ing of 308 tons CO2. The CO2 emissions intensity from transporta-
Husqvarna division on track with its share of tion was reduced by 30% between 2015 and
the target. This generated more than 2020. The slight increase in 2020 was due to a
rise in air freight during the pandemic.
18 / Sustainovate Progress Report 2020 / Husqvarna GroupCircular
Sustainovate performance –– Circular
2020 HIGHLIGHTS
• Launch of Sustainovate Open
• Partnerships with academia and industry such as
the Royal Swedish Technical University to find
and scale innovative thinking
• Founding partner in ‘Power for all’ Alliance.
NEXT STEPS
Why we are
• Explore opportunities in production environ-
ments to use recycled materials such as plastics
for products.
thinking in circles
The value we create
Rethink and redesign for a resource-smart
customer experience. Husqvarna Group is
rethinking ways to enhance the customer
A circular approach gives us a because materials and resources are under experience. A circular approach puts smarter
utilized and thrown away. And in the long use of resources in sharp focus and it helps
deeper understanding of how our
term, prices may rise for sourcing them. All us reevaluate how customers can be more
products impact resource use, how these trends have major impacts on both productive, use less water and energy, protect
we can deliver greater value to our our customers and the business. biodiversity and adopt solutions like sharing. In
The path towards circularity will be a long short, a circular approach loops the customer’s
customers and help them contrib- end-to-end journey and brings resource-lean
one, but there is a strong case to start the
ute more to sustainability. journey today. We are just beginning to thinking to the heart of how to deliver value.
transform our value chain from a linear pro-
In all markets, the way people engage with cess into more of a loop — where we strive
products and services is changing — more to design-out waste and pollution, keep
and more, having access to a product rather products and materials in use and do our
than ownership is gaining ground. part to regenerate nature. TARGET
At the same time, the world is facing By year-end 2025, we aim to have 50 inno- By 2025, we’ll launch
resource scarcity due to climate change and vations launched that reflect our circular 50 circular innovations.
growing consumption. We know that bil- thinking. This is an entirely new focus area
lions of dollars in value are lost every year for us. In 2020, we prioritized the circular
19 / Sustainovate Progress Report 2020 / Husqvarna GroupCircular
Sustainovate performance –– Circular
areas that we need to tackle, based on the Construction division is already extending Our approach
principle of the 5R’s — reduce demand, their product’s life span by taking larger
reuse, repair, remanufacture and recycle. We equipment back to repurpose them, and Our circular target addresses prod- We evaluate circular innovations
identified stakeholders along the value part of its business is conducted through uct impacts across our value chain, based on the degree of circularity
chain and began to execute our plan of rental services. This market is expected to from suppliers and operations to (see box), the value proposition and
action. One priority was to pinpoint relevant grow over the next decade. product use and end-of-life. Inte- their business potential. The target
criteria that will define the scope of circular gration into existing business pro- is measured against:
innovations and what is required of us to Smart-resource use cesses and securing the right know- • The number of nominated circular
realize them. One of our most important materials is how and competence are linchpins innovations
plastic. In 2021, we will explore areas where to realizing this opportunity.
The digital effect • The number of approved circular
we can replace virgin plastics with recycled
innovations that have been com-
How we deliver customer value is as impor- and biodegradable material in our prod- Each division engages its organiza-
mercially introduced to the market.
tant as what we deliver. In this opportunity, ucts. In the meantime, we are reducing the tions on the target. Group-wide
we are re-evaluating how customers get amount of plastics spill in production flow activities and tools to support divi-
The Circular Innovation Committee,
their jobs done effectively, using smarter or and are feeding it back into our manufactur- sions include:
consisting of stakeholders from the
fewer products while helping them reduce ing process as raw material. Defined criteria on the scope of
• Group, every division and external
CO2 emissions, use less water, and protect
circular solutions expertise evaluate innovations. The
ecosystems. Connected products, digital-
• Group-wide initiatives that build committee meets on a quarterly
ized services and innovative business mod-
partnerships for innovation. basis. The criteria for circular will con-
els have an important role to play.
tinue to evolve in 2021.
This year, 1 million users were digitally
connected to our products and services. WHAT GOING CIRCULAR
Tapping into this wealth of data helps us MEANS FOR US
support product users on how to optimize We apply three principles to our defi-
their products and extend their life span. nition of circularity, based on the ben-
For example, a digital chip to track product efits they bring to the planet. For us,
performance is to be included in most a circular innovation is a great idea that:
newly manufactured Construction products • Regenerates natural systems
by 2023. • Reduces the need to extract
We tasked 100 people with the job of materials and closes loops in
our economy
exploring applications for Internet of
• Keeps products and materials in
Things, artificial intelligence and other digi- use.
tal solutions that may contribute to scaling
circular solutions. Their know-how enhances The degree of circularity is deter-
our ability to predict and influence con- mined by the 5R’s - Reduced demand,
sumer and customer behavior, indicate when Reuse, Repair, Remanufacture and
it is time to service a product and better align Recycle.
supply with demand.
20 / Sustainovate Progress Report 2020 / Husqvarna GroupCircular
Sustainovate performance –– Circular
Resource smart CASE /
Our circular journey has begun! We are Using water wisely
partnering with others and triggering We are experiencing longer periods of drought
and for good reason, concerns about water use
innovation that improve smarter use of are on the rise. The garden is a great place to be
resources. smart about water use.
Through a combination of product innovation
and enhanced software, the Gardena Smart
System and Micro-Drip System can improve
water efficiency in the garden by up to 70 per-
cent. Underground drip irrigation lines both
prevent evaporation and carry water to every CASE /
corner of the garden. Sustainovate Open challenges
This year, sales of water-efficient irrigation
products jumped 192 percent, compared to innovative thinkers
2015, far exceeding our objective of a 50 percent Sustainovate Open 2020 is a start-up challenge
increase since 2015. launched this year to reward disruptive innova-
Gardena’s Micro-Drip-System was a finalist in tions that bring people, nature and urban envi-
the government-sponsored German Sustaina- ronments together through circular solutions.
bility Award Design 2021. More than 20 Swedish startups took part in the
CASE / challenge and nine innovations landed on our
’Power for All’ leads the charge short list. The prize of a pilot budget of 300,000
SEK was ultimately awarded to Ekkono
Do you have a drawer-full of batteries collecting dust, but Solutions for its Edge Machine Learning soft-
none that fits your needs? We aim to fix that. ware.
Together with Bosch, Gardena is a founding partner in They will take their idea to the proof-of-
‘Power for All’, a platform to share common battery solu- concept stage together with us, and scale it with
tions across household products. the end goal of embedding it into Husqvarna
“Our users want powerful, reliable and flexible batteries Division’s range of robotic lawn mowers. This
– preferably for all applications around the house and gar- offers us the opportunity to stretch the lifespan
den,”says Pär Åström, President of Gardena division. of the Automower, personalize them, and create
Using Bosch battery technology, ‘Power for All’ elimi- even longer-lasting customer relationships.
nates the frustration of incompatible batteries and charg- We see initiatives like these as a a gateway to
ers by supplying a uniform standard. outside-the-box thinking. It strengthens our pro-
For the 2021 gardening season, Gardena is converting cesses for capturing external innovation and
its entire 18-volt range to the Alliance battery system. commercializing great ideas.
See www.powerforall-alliance.com for more information.
21 / Sustainovate Progress Report 2020 / Husqvarna GroupCircular
Sustainovate performance –– Circular
Digital world
Our growing offering of digitalized services help custom-
ers and consumers use water and energy resources more
efficiently and spread the joy of using not owning.
Tools-for-you booths –
With the Husqvarna Carbon Foot- unmanned and app-controlled
Our professional products print Calculator, professional land- tool sheds – enable pay-by-use
are widely available through scaping companies can better under- rentals of chain saws, leaf blowers
rental services across stand the CO2 impact of their and trimmers. Drawn to the bene-
Europe. In this way, profes- machine fleet and reduce resource fits of not needing to service and
sionals can ensure that they use. Via machine sensors and built-in own products that are only used
always have access to special- connectivity, the new tool is part of occasionally, we’re helping cus-
ized equipment and can pass Husqvarna Fleet Services™. tomers in cities in Sweden, France,
it on once it’s no longer Germany, USA and Australia take
needed. a leap into the sharing economy.
Under the banner of
Ihop - ‘together’ in Swed- Gardena’s Smart App optimizes watering
ish - we are piloting a digi- schedules and helps avoid unnecessary
tal platform that helps watering of plants. It delivers irrigation
neighbors find interested planning that considers plant type,
candidates with whom to their location and type of soil. It
share ownership of even considers sunrise and sunset
high-investment garden- to help gardeners reduce evaporation.
ing tools like chain saws
and robot mowers.
22 / Sustainovate Progress Report 2020 / Husqvarna GroupPeople
Sustainovate performance –– People
2020 HIGHLIGHTS
• Promoted green urban areas through HUGSI,
Husqvarna Urban Green Space Index
• Continued UNICEF partnership
• Engaged internally through an ambassador
program, workshops, divisional activities and
Yammer conversations.
NEXT STEPS
• All-employee online training program
• Develop marketing strategies on sustainable
choices
• Incentivizing leadership teams to promote
sustainable products and business models
Launch a diversity and inclusion program, with
Influencing actions that matter
•
associated performance indicators.
The value we create
There is no better way to build trust than to
make a difference together. Our approach
We seek to inspire actions that make resource scarcity, diversity, talent, as well as rests on bringing out the passion, drive and
health and safety. curiosity of our own teams and those of our
a lasting difference. In 2020 we set a
customers. We can maximize positive impact
goal of empowering 5 million cus- Customers in sharp focus by encouraging customers to opt for the most
tomers and colleagues to make Our customers lie at the center of everything sustainable choice and by helping them to
we do. It is with them that we can massively envision the difference they can make. We
sustainable choices by 2025.
scale our efforts to shift to low-carbon and inspire through partnerships with others and by
resource-smart thinking. A large share of the giving our teams the tools to be change agents.
Supporting 5 million people to commit to
CO2 that products emit occur when they are
action is no small task. It requires significant
used. How customers use and service prod-
efforts to raise awareness and build capacity.
ucts also has an impact on product dura-
This opportunity challenges us to influence
bility, biodiversity, safety and water use. In TARGET
and inspire beyond what is within our direct
this opportunity, we will find ways to work By 2025, we will empower 5 million cus-
control.
closer with them to help them better interact tomers and colleagues to make
When our teams are committed and pas-
with our products and see benefits for others sustainable choices.
sionate about sustainability, our customers
and for the planet.
will follow. We will be introducing training
for all employees that cover climate change,
23 / Sustainovate Progress Report 2020 / Husqvarna GroupPeople
Sustainovate performance –– People
Teams with passion and spirit An inclusive organisation Our approach
We build trust between people and create Our new Diversity & Inclusion program aims
caring places to work by bringing out the to heighten awareness and raise our bar, We measure progress on our goal of to Group management. Responsibili-
passion of our teams. This involves promot- particularly within gender diversity. We need empowering 5 million people as fol- ties include building strategic part-
ing diversity and giving teams the tools and to improve our performance in these two lows: nerships, tailored communications,
freedom to innovate. priority areas and now have a roadmap in • The number of employees that training for brand, sales, communica-
In 2020, we held ten Sustainovate work- place to deliver change that we will roll out have taken Sustainability training tions and marketing functions and
shops in which more than 1,000 people par- in 2021. • Products and solutions sold that tracking progress. Activities and
ticipated. We also launched an ambassador have been proactively marketed as tools that support our divisions and
program and have ongoing social media Tackling impacts of climate change more sustainable and that is sup- local organizations include:
conversations to engage teams in our ambi- We are committed to doing what we can to ported by third-party verification
such as life-cycle analysis or test • Sustainovator ambassador pro-
tions. tackle the impacts of climate change and gram
reports.
In every division, we have initiatives in mitigate the effects of natural disasters. Our
place to engage employees in our sustaina- U.S. teams have supported firefighters and • Division-specific activities to
We will begin measuring progress on engage employees
bility priorities. These include competitions disaster relief personnel for decades. We
this opportunity in 2021. Each divi- Yammer conversations with 1,000
that capture the great ideas of employees also partner with organizations like UNICEF •
sion engages within its organization, followers to maintain momentum
and fast track them to implementation. and businesses that can support our objec-
supported by Group-wide Sustaino-
tives and increase access to green parks, on Sustainovate, highlight success
vate priorities and tools.
biodiversity and clean water. stories and celebrate engagement
Divisions focus on the aspects of
and Sustainovate heroes
Sustainovate that are most relevant
to their business, based on a mat- • Training programs
eriality assessment conducted in • Diversity and inclusion program.
2019. These priorities are integrated
into each business plan and progress
is measured and reported quarterly
CREATING SUSTAINOVATORS
To keep Sustainovate relevant and inspiring, our Sustainovator ambassador pro-
gram engages volunteers to contribute great ideas from across the organization. At
launch in mid-2020, approximately 30 people from across the Group signed up to
take part in shaping Sustainovate initiatives and applying them to local operations.
The program will host quarterly webinars to inspire Sustainovators and keep
them up dated on the agenda as well as on our progress. We’ll not only share best
practice, we’ll draw on inspiration from external initiatives and other leaders in sus-
tainability.
24 / Sustainovate Progress Report 2020 / Husqvarna GroupPeople
Sustainovate performance – People
Stimulating sustainable choices
We will achieve our target through partnerships, learning
from others and engaging in issues where we have an oppor-
tunity to affect change. With this ripple effect, we are building
our commitment to inspire others.
CASE /
Green city spaces
Green spaces are a city’s lungs. They Husqvarna division , we see more urban
improve air quality, help to manage rain- green spaces in Europe and North Amer-
water and surface runoff and contribute to ica (+38 km2), but globally, there’s -0.01
wellbeing. They are becoming increasingly percent less vegetation in 2019 compared
important as urban populations grow. As to 2018.
part of our efforts to raise the importance
of green spaces, Husqvarna division held CASE /
its fifth annual Living City event, which was
a global digital meeting for experts within
A partnership that makes
the business, city architects and NGOs. every drop of water count
Dutch urban planner and architect Winy
Maas set the scene on the grand possibili- According to UNICEF, approximately 785 As part of our contribution, for every sold
ties of sustainable cities, with his vision of million people do not have access to clean limited edition Gardena watering kit (con-
future urban environments. He presented water. For children under five, water and taining a blue hose connector labeled
The Green maker, software to help cities in sanitation-related diseases are a leading “Gardena for UNICEF”), we contributed €1
practical ways, with ideas to envelope cause of death. to the cause. The campaign was available in
existing buildings with plants and features We aim to help change that. Since 2018 2019 and 2020 across five markets. The
to attract local birds and insects. The Gardena has been partnering with UNICEF partnership will continue in 2021 with a spe-
meeting went on to showcase practical to help provide access to clean drinking cial edition product: a Micro-Drip-System
examples and engaging case stories. water to more than 160,000 children and starter kit for efficient and water-saving
The importance of meeting across sec- their family members. Our support helps plant irrigation.
tors is rising. In HUGSI, our 2020 analysis of fund efforts in Niger, Africa, for example, to
urban green spaces conducted by build infrastructure for water access.
25 / Sustainovate Progress Report 2020 / Husqvarna GroupYou can also read
