Ready for the future
ESG Report 2023
Contents
CONTENTS
Statutory reporting
Management's report | 69 Risk assessment and policies (§ 99a) | |||
73 | Diversity | |||
74 Data ethics (§ 99d) | ||||
6 | A word from our CEO | 75 | Responsible tax | |
8 | Our business model | 76 | EU Taxonomy | |
9 | Active ownership | Our businesses | ||
10 | ESG highlights 2023 | |||
11 | Actions and results · Group | 15 | Our businesses | |
12 | Board of Directors and Executive Management | 16 | BioMar | |
23 | GPV | |||
30 | HydraSpecma | |||
37 | Borg Automotive | |||
44 | Fibertex Personal Care | |||
51 | Fibertex Nonwovens |
ESG data overview
- Environmental reporting 2023
- Social reporting 2023
- Governance reporting 2023
Statutory report on corporate responsibility pursuant to section 99a of the Danish Financial Statements Act
This ESG report constitutes the Schouw & Co. Group's report on corporate responsibility for the 2023 financial year provided in accordance with section 99a of the Danish Financial Statements Act. The report's statutory sections also include our report on data ethics, see section 99d of the Financial Statements Act. The report on gender composition in management pursuant to section 99b of the Danish Financial Statements Act is provided in the company's Annual Report.
This publication is a translation of the Danish ESG Report 2023. The original Danish text shall be decisive for all purposes and in case of any discrepancy, the Danish wording shall be applicable.
Contents
Management's report
3 ESG-rapport 2023
Overview
At Schouw & Co., we are responsible long- term owners generating growth through transformation. We build businesses of the future by putting people first.
HighlightsESG Highlights
37.2 | 2.8 | -2% | 14% | ||
DKK bn revenue | DKK bn revenue | reduction of | share of | ||
CO2e emissions | renewable energy | ||||
36 | 146 | ||||
years of making successful | years as an | ||||
transformations and long-term | industrial business | ||||
Revenue (DKK bn) | |||||
investments | |||||
avg. annual growth rate of +15%
Our company portfolio
Strong portfolio of six industry-leading B2B businesses headquartered in Denmark
BioMar
GPV
HydraSpecma
Borg Automotive
Fibertex Personal Care
Fibertex Nonwovens
100 | 6 |
facilities in 35 countries | attractive companies |
in our portfolio |
15,000
skilled and dedicated employees
+14% | ||||
+35% | ||||
+14% | 37.2 | |||
+2% | 32.6 | |||
21.3 | 24.2 | |||
20.9 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
Contents
Management's report
4 | ESG Report 2023 |
We are responsible long-term owners enabling growth through transformation of market-leading industrial B2B businesses.
Jens Bjerg Sørensen, President & CEO of Schouw & Co.
Contents | 5 | ESG Report 2023 |
- A word from our CEO >
- Our business model >
- Active ownership >
- ESG highlights 2023 >
- Actions and results · Group >
- Board of Directors and Executive Management >
MANAGEMENT'S REPORT
Contents
SEE VIDEO WITH JENS BJERG SØRENSEN
Management's report
6 | ESG Report 2023 |
A word from our CEO
READY FOR THE FUTURE
2023 was a good year for Schouw & Co. both in terms of our financial performance and within our work with ESG. Again this year, we reduced GHG emissions, and at Group level, we increased the proportion of energy from renewable sources. And not least, we have worked diligently on preparing for the upcoming reporting directive.
Contents | Management's report | 7 | ESG Report 2023 |
It is therefore satisfactory that Schouw & Co. once again drive momentum on several of the objectives we have set for ourselves.
Jens Bjerg Sørensen, President & CEO
Schouw & Co. has a long history as a responsible and reliable owner, and we have issued corporate responsibility reports for a good many years. Focusing on responsibility, both financially and in a broader sense, is embedded in our values. Given the size of Schouw & Co., with 15,000 employees in nearly 40 countries, it is necessary to consider our impacts on the world - both positive and negative. It is therefore satisfactory that Schouw & Co. once again drives momentum on several of the objectives we have set for ourselves.
Greenhouse gas emissions are, of course, an area of considerable focus. Some of our businesses use large amounts of energy in production, and it is therefore a great achievement that we have managed
to reduce the Group's emissions every year since we started measuring CO2 emissions in 2020. We are well under way to achieving our target of a 35% reduction by 2030.
We have always prioritised the health and safety of our employees, and we have a strong and sustained focus on reducing the number of occupational accidents and ensuring good working conditions for all our employees and this continues to be a high priority in 2023 as well.
Each of our businesses work with the focal areas and objectives that are relevant to their particular industry and context. Borg Automotive, for example, can now document that remanufacturing automotive parts instead of manufacturing new ones
implies, on average, a 60% reduction in CO2e emissions and a 70% reduction in resource consumption. At Fibertex Personal Care, we launched a new low-weight product in 2023 that has the potential to reduce the volume of plastics in diapers considerably. These are merely two examples of how our businesses promote innovation and invest in solutions and products that address some of the challenges we are facing as a society.
Also in the ESG area, 2024 will be an eventful year. A key element is the implementation of the new EU reporting directive, which means that, from 2024, we will no longer issue a separate ESG report, but will integrate our ESG reporting in the annual report. This also means that
new performance indicators will be introduced, that definitions will be changed, that reporting requirements will be tightened, and that the structure of the report will change. We have a strong foundation to build on and take a serious approach to the task at hand.
We have set the direction and gained solid momentum. We are now ready for the future.
Jens Bjerg Sørensen,
President and CEO
Aarhus, 1 March 2024
Contents | Management's report | 8 | ESG Report 2023 |
Our business model
Schouw & Co. has a long-term investment horizon. We invest in Danish industrial businesses with international operations and the potential to grow and evolve. We believe in long-term value creation through active ownership.
VALUES
When exercising ownership of a business,
Schouw & Co. will always be guided by an intention
to create value in a decent and trustworthy manner. Our aim is to consistently be relevant and meaningful owners and to challenge and develop our businesses. We do not believe that micromanagement and unnecessary reporting and intervention create long-term value.
Long-term and | Results are created by | Making every penny | A relevant owner | Patient, but |
visionary | people | count | demanding | |
As owners, we willingly | We generate earnings | We have an industrial | As owners, we know that | We exercise an |
take risks and invest | and returns on a par | mindset and view | change is necessary and | engaging and consistent |
to future-proof our | with the best, but always | operational streamlining | we continually adapt, | ownership approach |
businesses with due | in a decent and trust- | as the foundation for | but we always safeguard | through and together |
consideration for the | worthy manner. | greater efficiency and | Schouw & Co.'s reputa- | with the current man- |
risk involved. | competitive strength. | tion and values. | agement team, support- | |
ing them in exercising | ||||
their full operational | ||||
responsibility. |
Contents
Management's report
9 | ESG Report 2023 |
Active ownership
Our strategy is based on three 'wheels' that reflect the Group's modus operandi and our mindset. We use a responsibility wheel to highlight our strategic prioritisation of ESG and responsible conduct.
Conglomerate strategy
Diversified
portfolioActive and developing
ownership
Financial versatility
Openness
Active and developing ownership
Profitable growth
Efficient use of capital
Future-proofing
Responsibility
Produce
responsibly
Protect
employees
Promote
innovation
Produce responsibly
The companies of the Schouw & Co. Group are required to manufacture their products efficiently in terms of resource consumption and climate impact.
Protect employees
All employees of the Schouw & Co. Group must be able to go to work and return home safely every day - anywhere in the world.
Promote innovation
Our companies assume responsibility for ensuring strong governance and compliance, and they allocate resources for the development of sustainable solutions.
Contents
Management's report
10 ESG Report 2023
ESG highlights
Produce | Protect | Promote | ||||||||
efficiently and responsibly | workers and ensure | innovation and | ||||||||
attractive places to work | strong governance |
2023
Schouw & Co.'s responsibility wheel sets out the Group's targets going forward to 2030 in the three focal areas. In 2023, we gained solid
2030 Ambitions
Reduce GHG emissions by 35% (scopes 1+2)
Transition to 100% renewable electricity
Calculate a baseline for scope 3 before 2025
2030 Ambitions | 2030 Ambitions |
Achieve high employee | Improve in-house governance |
satisfaction across the Group | procedures |
Strengthen our diversity mindset | Invest in and facilitate |
innovative sustainability | |
Achieve an LTI frequency rate | |
below 3 at Group level | Strengthen ESG reporting and |
taxonomy alignment |
momentum and are now ready for the future with further measures and initiatives towards 2030.
14% | 4 | Lost-time injury (LTI) frequency rate | ||||
renewable energy | businesses having | 4.4 | 452 | |||
12% in 2022 | ongoing or finished | |||||
scope 3 baseline | ||||||
projects | incidents per million working | DKK million paid in income tax | ||||
-19% | hours, reduced from 4.7 in 2022 | |||||
4 | 7.7% | |||||
247 | 238 | 208 | 200 | |||
161 | ||||||
businesses have now | of revenue is currently | |||||
2020 | 2021 | 2022 | 2023 | 2030 | established employee | taxonomy-aligned |
targets | satisfaction surveys and | |||||
Scope 1 ('000 tonnes of CO2e) | ||||||
set targets |
Scope 2 ('000 tonnes of CO2e)
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Schouw & Co. A/S published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:34 UTC.