Strategic focus areas that combine good profitability and sustainable value creation
Our goals are focused sharply on profitable growth and sustainable value creation with healthy finances. Our strategies for achieving the goals are tried and tested and based on our business principles, focusing on four strategic areas: growth with profitability, innovation, market-oriented expansion and a long-term approach.
Sustainable growth
Our goal is for total growth to average 20% per year on a sustainable basis in order to create opportunities for good profitability. Our long-term strategy is to supply the market with sustainable energy solutions, thereby helping the world transition to a more sustainable society and a reduced carbon footprint.
International guidelines and initiatives
We follow and work according to several internationally recognised standards, guidelines and principles. Our guidelines and policies are based on international conventions and initiatives such as the Global Compact, ISO 26000 (international guidelines for handling social responsibility issues) and the Swedish Anti-Corruption Institute.
We submit an annual report on our progress to the UN Global Compact in accordance with the principles we have signed and committed to work with in our value chain.
We support the UN’s Sustainable Development Goals in their entirety but are focusing on six of the goals that are clearly linked to our internal goals and action plans and that we believe we can influence.
Market-oriented expansion in a sustainable world
The globalisation of our business gives us the chance to be represented in the right location with the right provider. With our decentralised organisation, we can scale our businesses and develop locally in the best possible way while still leveraging the benefits of belonging to a global Group.
Sound business ethics
We are continuously investing in attractive market segments in order to achieve optimal market presence and sustainable global expansion.
Sound business ethics form our fundamental responsibility throughout our value chain. Our business relationships and business methods are based on us complying with legislation and applying sound business ethics. We comply with international market requirements and sanctions and do not manufacture or sell products that are banned in any country or market. Individual markets may have local laws and customer requirements that must be adhered to. We are transparent in our communication and reporting and it is mandatory that we comply with laws and requirements.
Our values and business principles entail zero tolerance for all forms of corruption and apply to all parts of our business. Our zero tolerance for corruption is clearly communicated to our business partners.
In addition to mandatory anti-corruption training that all employees who may be exposed to corruption must undertake on a continuous basis, all our employees are urged to be observant, ask for advice if unsure, and to report incidents if they have been exposed to any form of bribery or other unethical behaviour. The Group’s whistle-blowing policy has been translated into all local languages where we operate.
Innovation focusing on intelligent energy solutions
Always being at the cutting edge with the most attractive product range is key to profitable growth. With a high rate of product development, based on research and new technology, we can offer products and solutions that appeal to the market while helping to reduce environmental impact.
Digital technology development is focused on making future energy systems around the world more connected, intelligent, reliable and sustainable. NIBE contributes to this development.
Products and new development
International estimates predict an increase in energy demand of 40% by 2040. This means that the rate of global energy efficiency enhancement must increase along with a shift towards renewable energy production, and in this respect, we are well positioned for the future. Energy efficiency, ecodesign and a life-cycle approach are important to us.
For example, intensive product development work is underway to replace today’s refrigerants with new ones that have lower climate impact.
Climate impact
In our innovative product development, we focus on reducing products’ climate impact throughout their life cycles. Our LCE-classified products support the shift to a smaller carbon footprint and help customers improve energy efficiency and convert to renewable energy.
We have set a long-term target of a 60% reduction in the carbon dioxide index to 0.9 by 2030, compared with the 2014 index of 2.19, which is in line with Agenda 2030.
The best way to reduce our own global climate impact is through energy optimisation and by reducing energy consumption and carbon dioxide emissions in our production units by eliminating fossil fuel and replacing heating systems with heat pump solutions. These measures are being implemented on a continuous basis.
A long-term approach
Since our beginnings nearly 70 years ago, we have created a global Group and a presence worldwide as well as a solid platform for further expansion with profitability. Clear shared values and long-term ownership are behind the continuity and stability in the Group.
Responsible business conduct and related risks
Our business principles and values are based on the conviction that great freedom coupled with responsibility in all areas create good profitability and longevity. Responsible business conduct and corporate social responsibility are fundamental to our ability to live up to our management philosophy and be a stable corporation.
Our governance model for each individual company in each business area is closely linked to our business model, which is based on local boards of directors and strong management in the companies.
To achieve our goals we require good leadership and good relationships with employees, which in turn creates a secure and stable workplace in the long term.
Every year, a risk assessment is carried out in our evaluation of business risks, according to our NIBE Internal Control Standard (NICS). The risk of corruption is also evaluated in the risk evaluation.
Risk assessment and evaluation of both new and existing suppliers and their performance is carried out continuously, creating security around our choice of supplier and ensuring continued strong cooperation. If we identify unacceptable risks in exceptional cases, or a lack of desire to make improvements, we will terminate the collaboration.