CSR activities

Key sustainability issues

OEM's Board has the ultimate responsibility, through the Group management team, for the Group's sustainability activities. Of the key sustainability issues, the focal points and risk areas identified as being of the greatest importance for both OEM and the Group's stakeholders are the following.

Environmental responsibility – The environmental impact from the Group's product and passenger transport, heating of premises and products and packaging materials.

Economic and ethical responsibility – Financial stability and strength is essential for investment in sustainable business development. Ensure responsible business practices that represent human rights and oppose corruption.

Social responsibility – As a responsible employer, be able to offer employees skills development, a positive working environment, good health and safety, and oppose and prevent all forms of discrimination and harassment in the workplace.

The operational responsibility lies in a decentralised corporate culture in the companies. The Group's companies perform at least three sustainability-related activities each year. One of the activities in 2020 was to measure and report emissions of greenhouse gases in accordance with the Greenhouse Gas Protocol (GHG Protocol).The activities are followed up by the boards and management teams. If necessary, the Parent Company can support these activities with tools and processes.

CSR activities

Report emissions of greenhouse gases in compliance with the GHG Protocol

To improve its sustainability efforts, OEM reported emissions of greenhouse gases in 2020 as defined by the ghg Protocol, which is one of the most widely used emissions reporting standards in the world. The ghg Protocol requires emissions to be broken down into 3 categories, or scopes. In 2020, OEM focused on reporting in accordance with scopes 1 and 2, and kept to goods transport and business travel in scope 3. Scope 1 Direct greenhouse gas emissions over which the business has control.
Scope 2 Indirect greenhouse gas emissions from electricity, district heating, district cooling and steam.
Scope 3 Other indirect greenhouse gas emissions arising in the value chain.
Type of emission Scope  Impact  
Direct emissions 1 040 ton s of CO2  Primarily travel by company car.
Indirect emissions 0,11 tons of  CO2  Mainly electricity use.
2 642 tons of  CO2  Mainly goods transport.

The transport of goods is responsible for the most emissions, followed by business travel by car. The impact of the pandemic on the company's travel is evident through reduced emissions from business travel.

Greater focus on sustainability

The results of the report also form a basis for future activities and the development of sustainability activities that began in 2020. In the future, the sustainability targets will be linked to the UN Global Goals, Agenda 2030, and some of its 17 goals. A sustainability board made up of individuals from a number of the Group's companies was also set up in 2020. The purpose of the board is to ensure there is an increased focus on sustainability throughout the Group. OEM is committed to a culture of openness and high ethical standards. Employees play a key role in identifying any non-conformances and are able to report suspected wrongdoing via OEM's whistleblowing system.

Committed to reducing its carbon footprint

The environment is part of OEM's Code of Conduct and priority is given to activities that lead to greater environmental responsibility. Goods transport, travel, heating of premises and manufacturing and use of products have the greatest environmental impacts in OEM's operations. There has been a strong focus on these areas for many years and OEM strives to find good environmental solutions and supports development initiatives in these areas.

 

OEM's extensive knowledge of the products and applications also enables it to help customers make environmentally-sound and good-quality choices of components and solutions. In combination with supplier assessments, which provide information on the suppliers' sustainable development practices, this is an integral part of its sustainability activities. Warehouse management is another important part of OEM's sustainability programme. The operations are continuously working to optimise inventory levels of different products so that the correct quantities are purchased while improving availability for the customers. The environmental impacts of freight transport operators are monitored to enable the best transport options to be selected. OEM is also committed to reusing packaging materials as far as possible.

Energy savings produce results

One successful activity is an energy-saving project spanning several years that OEM is conducting at its facilities in Tranås. Activities and investments that have been carried out include modernisation of the ventilation system, expansion of the heat pump system with geothermal cooling to replace an older electric boiler, and installation of automatic high-speed doors to reduce heating costs and improve the workplace environment. In December 2019, a solar panel array was installed at OEM's logistics centre at Höganloft. It generated approximately 240 mwh in 2020. Lighting in most of the properties was replaced with led lighting and this will continue in 2021. Thanks to the energy-saving measures, the amount of electricity used at the Höganloft logistics centre was the same in 2020 as in 2017, despite a 40% expansion of the facility's area. At other properties, energy consumption has fallen by between 25 and 50%, depending on the property.

Quality is critical to competitive advantage

Ensuring quality at every stage of the business process is critical to OEM's competitive advantage. The companies have therefore long been working in a systematic manner to develop and improve quality and efficiency. The Group's own activity management system, “oqd” – OEM Quality Development is based on Toyota's principles. The management system includes close monitoring of non-conformances, visualisation of results compared to objectives and improvement initiatives from employees. OEM Automatic in Sweden has developed the system which is also used to varying extents in the rest of the Group.

Certified companies

In Sweden, OEM Automatic, OEM Electronics, Svenska Batteripoolen, Internordic Bearings, Telfa, Ernst Hj Rydahl Bromsbandfabrik, Svenska Helag, Agolux, ATC Tape Converting, OEM Motor and Elektro Elco have been awarded iso 14001 environmental management system certification and iso 9001 quality management system certification. In Poland, OEM Automatic has been awarded iso 9001 quality management system certification.