ASSA ABLOY AB 
Sustainability Report 2023
Leading our industry towards a more sustainable future
Contents | |
Who we are ............................................................................................................ | |
The UN Sustainable Development Goals (SDGs) | 10 |
Performance and 2025 targets | 12 |
How we operate | |
How we operate | 14 |
Addressing climate change | 14 |
Sustainable innovation | 18 |
Sustainable operations | 22 |
Supply chain management | 26 |
People | 30 |
What we offer | |
What we offer | 33 |
Sustainability in our daily operations | 33 |
Sustainability governance | |
Sustainability governance | 37 |
Sustainability data tables | 45 |
EU Taxonomy tables | 49 |
GRI Index | 52 |
Reporting principles | 55 |
Auditor's report | 56 |
Glossary | 57 |
About the report
This report, along with additional information available online, describes our sustainability initiatives and performance in 2023, and addresses issues that ASSA ABLOY has identified as the most important to our stakeholders. As a signatory to the UN Global Compact, ASSA ABLOY will submit this report to the UN Global Compact as its Communication on Progress Report 2023. This report has been prepared in accordance with the GRI Standards (see pages 52-54 for GRI content index). The data presented in this report has been collected over the calendar year and includes all ASSA ABLOY operations. For further information regarding the Sustainability Report and its reporting principles, see page 55.
Recognition and memberships
ASSA ABLOY is included in FTSE4Good, the OMX GES Sustainability Sweden PI Index, and in the Kempen SNS SRI Universe.
We have participated in the Carbon Disclosure Project (CDP) since 2007. For 2023, the Group received a score of B in the CDP Climate Change Program, and a score of C in the CDP Water Program.
In 2017, ASSA ABLOY became an official regional partner in the World Green Building Council's Europe Regional Network. The Network represents a confederation of over 20 Green Building Councils, eight Regional Partners and close to 5,000 company members.
Other important main memberships include:
The Confederation of Swedish Enterprise (Svenskt Näringsliv), The Royal Swedish Academy of Engineering Sciences (IVA), The Connectivity Standards Alliance (CSA), FiRa Consortium, and Security Industry Association (SIA).
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction| Who we are | How we create value | How we operate | What we offer | Sustainability governance | 1 | | ||
Highlights 2023
Dow Jones Sustainability Index Europe
ASSA ABLOY is a constituent of the Dow Jones Sustainability Index Europe for the 3rd year in a row. The index tracks the performance of the top 20% of the 600 largest European companies in the S&P Global Broad Market IndexSM that lead the field in terms of sustainability.
INJURY RATEWATER INTENSITYENERGY INTENSITY
25% | 18% | 12% | ||||||
Our injury rate has decreased | Our water intensity has | Our energy intensity has | ||||||
by 25% vs. 2022. | decreased by 18% vs. 2022. | decreased by 12% vs. 2022. |
Reduced carbon footprint
In 2023, the Group has reduced its absolute Scope 1 & 2 | ENVIRONMENTAL PRODUCT | ||
carbon footprint by 23%, against the 2019 baseline. | CARBON FOOTPRINT | SUSTAINABILITY AUDITS | |
DECLARATIONS | |||
Reduced water consumption
During 2023, water intensity reduced by 51%, against the 2019 baseline.
Reduced waste
In 2023, non-hazardous waste intensity in the Group decreased by 25%, against the 2019 baseline.
4% | 765 | 246 | ||
The Group's Scope 1 & 2 absolute | The Group carried out 765 | By the end of 2023 the Group | ||
greenhouse gas emissions decreased | sustainability audits of direct material | had 246 Environmental Product | ||
by 4% vs. 2022. | suppliers during 2023. | Declarations verified and | ||
published. |
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction| Who we are | How we create value | How we operate | What we offer | Sustainability governance | 2 | | |||||
Leading our industry towards a more sustainable future
Sustainability is a pivotal business driver, which will enable us to reduce our environmental and carbon footprint while continuing to grow our business. Our long-term commitment to sustainability will provide significant opportunities to reduce our costs, reduce our climate risk, and to develop more sustainable solutions to meet our customers' needs. When done right, sustainability equals profitability.
The growth in green buildings is accelerating the demand for more sustainable solutions.
Our sustainability program
Throughout the year, we made positive progress on our targets and sustainability program to 2025. In 2023, against our baseline year 2019, we reduced our water intensity by 51%, our waste intensity by 25% and our energy intensity by 34%. Our dedicated teams across the organization continued to implement focused projects, ensuring we are on a good path to realizing our 2025 targets. The UN Sustainable Development Goals (SDGs) and our sustainability program go hand in hand, where our program enables us to contribute to the SDGs. This is explained in more detail throughout the report.
Addressing climate change and emerging regulation
We are fully committed to delivering on our ambitious Science Based Targets (SBT), to halve our absolute Scope 1 & 2 carbon emissions and reduce absolute Scope 3 emissions by 28% by 2030. Our 4-pronged strategic approach to Scope 1 & 2 emissions is delivering positive results. We have reduced our Scope 1 & 2 emissions by 23%, against our 2019 baseline. Our Scope 3 emissions make up the vast majority of our total emissions and represent the carbon footprint of our wider value chain. Our Scope 3 target is challenging. To address this, we have assembled cross functional science-based targets teams who are dedicated to driving the most
important activities in our Scope 3 action plan to deliver on our targets. We have set up a science-based targets governance structure, which includes members from our executive team, to ensure we are on a good path to achieving our goals.
In 2023, we expanded on our Task Force on Climate-related Financial Disclosures (TCFD) reporting to include quantitatively assessing our climate-related opportunities, as well as our climate-related risks. In preparation for the pending EU Corporate Sustainability Reporting Directive (CSRD), we have taken a systematic approach. This includes a gap analysis to see where we are currently, a double materiality assessment to understand our impact materiality and financial materiality, as well as comprehensive stakeholder engagement dialogues. I am confident we are well placed to meet the needs of CSRD in 2024.
Growing market for sustainable solutions
The growth in green buildings, and need for a more sustainable built environment, is accelerating the demand for more sustainable and resilient solutions. Our customers have their own sustainability agendas that they need to address. Our access solutions can enable our customers to significantly reduce their energy consumption and related greenhouse gas emissions. We can create shared value, by commercializing sustainability to provide customers with
-4%
Absolute carbon
emissions
-12%
Lower energy
intensity
-18%
Reduction in
water intensity
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction| Who we are | How we create value | How we operate | What we offer | Sustainability governance | 3 | | |||||
products that will improve their carbon footprint and meet their sustainability goals, it's a win-win.
Sustainability is integrated into our innovation process from the outset, selecting more sustainable materials, increasing our products' energy efficiency, and designing our next generation of products using circularity principles. We are continuing to develop more Environmental Product Declarations (EPD), a product transparency document which is an increasing requirement for green building specifica- tions. This enabled us to accelerate our growth, winning multiple landmark certified green building projects in 2023.
Ensuring the health and safety of our employees
Our people are our most important and valuable asset. Evolution through our people, enabling and empowering them to grow themselves and their careers, will ensure ASSA ABLOY's long-term future and success.
We remain committed to working toward an
injury-free workplace. In 2023, we further developed our Health & Safety program, rolling it out across the organization. As we grow through acquisition, we sometimes acquire companies with health & safety challenges. In the short term, this can increase our overall injury rate. However, we are convinced we can improve the health and safety performance of these companies, by accelerating them into our Health & Safety program. This reduces the Group's injury rate and more importantly, less people are getting hurt. We have seen concrete examples of this during 2023, where our injury rate reduced by 20% against our 2019 baseline.
ASSA ABLOY remains committed to the principles of the UN Global Compact in the areas of human rights, labor, the environment and anti-corruption. This report contains our annual communication on our progress.
Overall, we continue to evolve and make positive strides forward in our sustainability journey. I am proud of our willingness to lead our industry towards
a more sustainable future as evident by our commitment to science-based targets and delivering on our Sustainability Program 2025. I get excited when I see how embedded sustainability has become in our organization and how our people strive to meet our ambitious targets. Sustainability is a decisive business driver, it enables us to reduce our risk and costs, improving our profitability, makes us more relevant to our customers, and able to attract and retain future talent.
Finally, I would like to thank our committed colleagues for their hard work and dedication during the year. Thank you also to all our customers, partners and shareholders for their trust and loyalty to ASSA ABLOY. Together we are leading our industry towards a more sustainable future.
Stockholm, 6 March 2024
Nico Delvaux
President and CEO
Read more | 2025 | 2030 | 2050 | |
on page 14 | ||||
Our targets | Science Based Targets | Net zero | ||
Sustainability program to 2025 | ASSA ABLOY has set science-based | ASSA ABLOY has committed | ||
focuses on the most material areas, | targets, limiting global temperature | to reaching net zero no later | ||
ensuring we have the biggest impact | rise to 1.5°C, by halving emissions | than 2050. | ||
where it is needed most. | by 2030. | |||
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction | Who we are| How we create value | How we operate | What we offer | Sustainability governance | 4 | | |||||
Who we are
Together we create access
61,000 | >70 | 176 | >10,000 |
Employees1 | Countries | R&D centers | Patents |
The global leader in access solutions
The ASSA ABLOY Group is the global leader in access solutions. Every day, we help billions of people experience a more open world with innovative solutions that enable safe, secure and convenient access to physical and digital places.
Access solutions for every need
Our portfolio includes a complete range of access solutions in areas such as mechanical and electro mechanical locking, access control, identification technology, entrance automation, security doors, hotel security and mobile access. Our offerings are delivered separately or combined to form a complete, full-service access solution. Through continuous and sustainable innovation, we develop products and solutions that meet our customers needs.
Solutions
Services
Openings
Master key systems | Identities | |
Access control | ||
Entrance automation | Authentications | |
Location services | ||
Data and analytics |
1 By the end of December 2023.
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction | Who we are| How we create value | How we operate | What we offer | Sustainability governance
Our journey towards a sustainable future
Halve emissions | Net zero | |
We have the ambition to halve carbon | ASSA ABLOY will reach net zero, | |
emissions compared to 2019. | no later than 2050. | |
20302050
5 |
Sustainability in the value chain
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nufactur |
2020
Sustainability Compass
The Sustainability Compass was introduced in our product development processes.
2016
Sustainability is a driver throughout our value chain. It is an important element in innovation, sourcing, production, employee development, ASSA ABLOY's products and solutions, and in maintaining good relations with external stakeholders.
Innovation: New products are evaluated from a lifecycle perspective. Many recently developed products save energy as a result of improved insulation and intelligent control of door
Science Based Targets
We committed to set science- based targets.
4th sustainability program
Fourth sustainability program with new targets to 2025.
2015
2010
2nd sustainability program
Second sustainability program launched for 2010-2015 with measurable targets for water consumption, energy efficiency, greenhouse gas emissions, chemical handling and health & safety.
3rd sustainability program
Third sustainability program for the 2015-2020 period with more ambitious targets. The program was extended to include audits of suppliers with focus on low cost countries.
opening solutions. Innovation is carried out either locally, divisionally, or shared between the divisions depending on the content and scope.
Sourcing: Every year, the Group purchases a considerable amount of material, components, and products from about 8,800 direct material suppliers around the world at a value of more than SEK 29 bn. Our suppliers are evaluated from a sustainability perspective.
Manufacturing: The manufacture of our products should be carried out safely and with the lowest possible environmental impact.
Market presence: ASSA ABLOY is present in more than 70 countries with about 1,000 sites. More than two-thirds of these sites are in North America and Europe. Wherever we do business, we follow the Code of Conduct, respect the laws and regulations governing business ethics in the countries where we operate, and we require all of our partners to do the same. Customers: Our ambition is to supply high-quality products that fulfill customer requirements, have a long life, are manufactured with minimal use of resources, and have a minimal environmen-
2007 | 1st sustainability program |
First sustainability program and annual sustainability report | |
launched in 2007. The program focused on integration of |
procedure for quality and environmental management and introduced structures that allowed everyday operations to continuously improve their sustainability performance.
tal impact throughout their lifecycle. Our customers are large institutional and commercial customers (within healthcare, education, retail, hospitality, office buildings, and industry), small and medium-sized customers (offices, stores), and residential customers (apartments, houses). Examples of our distribution channels include security systems integrators, locksmiths, security installers, building and lock wholesalers, retailers, DIY, hardware and security stores, original equipment manufacturers, and door and window manufacturers.
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction | Who we are |How we create value| How we operate | What we offer | Sustainability governance | 6 | | |||||
How
we create
value
Our strategic framework
The ASSA ABLOY strategy house is our common strategic framework. It contains all the building blocks of our strategy and gives our employees direction and guidance.
Vision
To be the global leader in providing innovative access solutions that help people feel safe and secure so that they can experience a more open world
Mission
Building sustainable | Providing added value to | Being a world leading | Conducting business in |
shareholder value | our customers, partners | organization where | an ethical, compliant |
and end-users | people succeed | and sustainable way |
Financial targets | Strategic objectives | Strategic activities |
10% | • Growth through customer | • Continue with successful |
relevance | acquisitions | |
growth / business cycle | • Product leadership through | • Grow in emerging markets |
16 -17% | innovation | • Increase service penetration |
we do | base | |
• Cost-efficiency in everything | • Actively upgrade installed | |
EBIT / business cycle | • Evolution through people | • Generate more recurring |
revenue |
Sustainability
Core values and beliefs
Empowerment | Innovation | Integrity | |
We have trust in | We have the | We stand up for | |
people | courage to change | what's right | |
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction | Who we are |How we create value|
Our core values and beliefs guide our daily decisions and inspire us to act, enabling opportunities for all employees to develop and grow.
Vision and mission
Our vision provides us with direction and describes what we want to achieve as an organization - to be the global leader in providing innovative access solutions that help people feel safe and secure so they can experience a more open world.
Our mission describes our role as a company, our reason for being and how we aim to serve our key stakeholders.
Financial targets
Our financial targets are what we are aiming to achieve financially over the business cycle. Our sales growth target of 10% per year is based on 5% organic growth and 5% growth through acquisitions.
Strategic objectives
Our strategic objectives are the cornerstones of our strategy which guides us in everything we do. These are further described in our Annual Report.
Strategic activities
Our strategic activities are the key priorities shared across our divisions to deliver on our growth ambition. We also have three shared priorities to enable this growth: consolidate footprint while focusing on value added activities, optimize supply chain and logistics as well as reduce product cost and environmental impact.
How we operate | What we offer | Sustainability governance | 7 | |
Sustainability
Sustainability is integrated in everything we do. We view sustainability as a journey of continuous im- provement, built on a foundation of transparency and integrity. As the industry leader, we take responsibility to mitigate climate change and ensure the health and safety of our employees.
Our commitment to science-based targets demonstrates our willingness to further improve our competitiveness with sustainable products, solutions, and operations. Supporting customers in fulfilling their sustainability agenda is essential to accelerate growth through customer relevance.
Core values and beliefs
Our core values are empowerment, innovation, and integrity. They communicate what we stand for as an organization and are the foundation for how we treat each other and work with our stakeholders. Our values foster a sense of security and trust, as well as a feeling of community and cooperation. They guide our daily decisions and inspire us to act, enabling opportunities for all employees to develop and grow. Our values and beliefs are reflected in the "Together We" culture initiative throughout ASSA ABLOY.
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
Introduction | Who we are |How we create value| How we operate | What we offer | Sustainability governance | 8 | | |||||
We help people feel safe and
Our resources
How we operate
secure
Every day, we help billions of people to experience a more open world with
61,000
employees in more than 70 countries around the world. We are truly global, uniquely local
3,600
We are a global company with a uniquely decentralized business model with about 1,000 sites including 200 production facilities1. We use a multi-brand strategy to leverage our global and local strengths and address different market and customer segments and routes
to market. Acquiring relevant businesses to continue our growth is key in our strategy.
The Group's strategic direction is to lead the trend towards the world's most innovative and well-designed access solutions.
Our strategic objectives and activities are executed locally, which gives a high level of autonomy in decision-making so we stay close to our customers.
innovative solutions that enable safe, secure and convenient access to physical and digital places. By responsibly using human capital, natural resources and capital, we continuously create sustainable value for our shareholders and other stakeholders. Together we create value!
employed in R&D working with our sustainable innovations
>200
strong brands and diversified product portfolio
>10,000
patents
200
efficient production and assembly facilities
Financial | Strategic | Strategic |
targets | objectives | activities |
10% | • Growth through | • Continue with |
customer relevance | successful acquisitions | |
growth / business cycle | • Product leadership | • Grow in emerging |
through innovation | markets | |
16 -17% | • Cost-efficiency in | • Increase service |
everything we do | penetration | |
EBIT / business cycle | • Evolution through | • Actively upgrade |
people | installed base | |
• Generate more | ||
recurring revenue |
~50,000
suppliers for direct material and indirect services. We have strategic and cost-efficient suppliers
SEK 92 bn
in shareholder equity
Sustainability
Sustainability is part of everything we do throughout ASSA ABLOY's value chain.
Together we are guided by our core values and beliefs
Empowerment | Innovation | Integrity | |
We have trust in | We have the | We stand up for | |
people | courage to change | what's right | |
ASSA ABLOY | SUSTAINABILIT Y REPORT 2023
1 Production facilities larger than 1,000m2.
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Assa Abloy AB published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2024 09:20:04 UTC.
