Assa Abloy : Sustainability report 2021.pdf

Sustainability Report 2021

Accelerating towards a sustainable future

Contents
Highlights 2021................................................................................	1
Who we are
Who we are ........................................................................................​	2
The global leader in access solutions .........................	2
CEO statement ...........................................................................	4
How we create value
How we create value ​.........................................................	6
Our value creation business model ........................	6
The UN Sustainable Development Goals (SDGs) .8
Performance and 2025 targets ...............................	10
How we operate
How we operate ​...............................................................	12
Our strategic direction .............................................	12
Addressing climate change​....................................	14
Sustainable innovation ............................................	16
Sustainable operations ............................................	20
Supply chain management​.....................................	24
People ............................................................................	28
What we offer
What we offer ​....................................................................	32
Sustainability in our daily operation​...................	32
Sustainability governance
Sustainability governance ​............................................	36
Sustainability data tables ​........................................	46
GRI Index ........................................................................	50
Reporting principles ..................................................	52
Auditor's report ...........................................................	53
Glossary ..........................................................................	53

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 2021, 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 20 Green Building Coun- cils, eight Regional Partners and over 4,600 company members.

Other important main memberships include:

The Confederation of Swedish Enterprise (Svenskt Näringsliv), The Royal Swedish Academy of Engineering Sciences (IVA), Physical Security Interoperability Alliance (PSIA), The Zigbee Alliance and The Z-Wave Alliance.

Targets

In 2021, we made a very positive start against our targets in our sustainability program to 2025. We are working on setting our science-based targets, while already driving ambitious initiatives to realize our goal to halve emissions by 2030.

Read more on p. 10-11

Innovation

We continue to focus on sustainable

innovation, developing more sustainable access solutions to meet the increasing demand from our customers, due to strong growth in green buildings.

Read more on p. 16-19

Operations

During 2021, we continued to drive

initiatives to further make sustainability an organic part of our daily operations, resulting in improved resource efficiency.

Read more on p. 20-23

People

Our People are our most important asset. In 2021, the health, safety and well-being of our colleagues has been a key priority.

We are convinced that culture and

leadership will enhance our organization

and our people ahead.

Read more on p. 28-31

Highlights 2021

Highlights 2021

INJURY RATEWATER INTENSITYENERGY INTENSITY

		13%			23%			14%
	Our injury rate was	The water intensity has	The energy intensity has
		reduced by 13%			decreased by 23%	decreased by 14%
GREENHOUSE GAS EMISSIONS	SUSTAINABILITY AUDITS	ENVIRONMENTAL PRODUCT
DECLARATIONS
		2%	861	276
The Group's total greenhouse gas	The Group carried out 861	By the end of 2021 the Group
emissions increased by 2% due to	sustainability audits of direct	had 276 Environmental Product
the higher activity level. However,		material suppliers.	Declarations verified and
compared to the base year 2019, the						published.
emissions have decreased by 17%.

Improved health & safety performance

In 2021, the Group Injury Rate reduced by 20% compared with a 2019 baseline, as a result of increased focus on health & safety.

Carbon footprint reduction

ASSA ABLOY has reduced its absolute carbon footprint by 17%, against a 2019 baseline.

Reduced water consumption​

During 2021, water intensity reduced by 24%, against a 2019 baseline.

Dow Jones Sustainability Index Europe

ASSA ABLOY became a member of the Dow Jones Sustainability Index Europe. 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.

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Who we are

The global leader in ­access solutions

The ASSA ABLOY Group is the global leader in access solutions. Every day, we help billions of people to 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

We offer a complete range of access solutions with market leading positions in areas such as mechanical and electromechanical locking, access control, identification technology, entrance automation, security doors, hotel security and mobile access. Our offerings are delivered both separately and together as part of a full-service access solution.

Solutions

Service

Openings
	Master key systems	Identities
	Access control
Entrance automation	Authentications
	Data and analytics

A decentralized organization

We are a global company with a uniquely decentralized business model that enables us to quickly meet and deliver on customer needs. Our local business units know local standards inside-out and optimize resources and products according to the local conditions and demand.

The regional divisions manufacture and sell mechanical and electromechanical locks, digital door locks, cylinders and security doors, adapted to the local market's standards and security requirements. The global divisions manufacture and sell access solutions, identification products and entrance automation in the global market.

Regional divisions

Opening		Opening		Opening
Solutions		Solutions		Solutions
EMEIA		Americas		APAC

Strong brands

Our brands play an important role in creating trust, loyalty and differentia- tion. We use a combination of master, endorsed and standalone brands to reach all our audiences. ASSA ABLOY is our employer brand and main commercial brand, HID covers secure identities and access management, and Yale covers residential products and services.

Global divisions

GlobalEntrance

TechnologiesSystems

Group brand and employer brand

Master brands

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Who we are

Our journey towards a sustainable future

Halve emissions

Compared to 2019, we have the ambition to halve greenhouse gas emissions.

Net zero

ASSA ABLOY will reach net-zero, no later than 2050.

2030

2020

2050

Sustainability compass

The sustainability compass was introduced in our product development processes.

2016

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.

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.

Electromechanical on the rise

The Group sees fast-growing demand for electromechanical products, as well as ­electronic and digital solutions. Since 2011 these have sharply increased

from 22% to 30% of Group sales. Mechanical­ products continue to increase, but electromechanical products are growing ­considerably faster.

Sales by product group

n Mechanical locks, lock systems and fittings, 23%

n Entrance automation, 31%

n Electromechanical and electronic locks, 30%

n Security doors and hardware, 16%

Together we create access

51,000	>70	6%	9,500
employees	countries	of our employees	patents
		work in R&D

Customer split	New construction/Aftermarket
n Commercial, 75%	n New constuction, 33%
n Residential, 25%	n Aftermarket, 67%

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