Our Business

We consider sustainability to be a key success factor in becoming a leading provider of a safer future. We understand sustainability not only within the context of environmental protection, but also as a holistic approach. The growth and profitability of Gunnebo enables us to invest in innovations that drive higher levels of efficiency so more environmental benefits can be achieved. Managing sustainability also includes how we drive our business. We are committed to:

  • Achieving the Group’s financial goals by driving a sustainable business (for details, see the Annual Report above)
  • Demonstrating clear and ethical leadership
  • Establishing clear guidelines and expectations for suppliers and implement necessary controls

Our Business: Governance

Commitment

Strong corporate governance is pivotal to our Sustainability Approach and we believe good governance practices serve our long-term interests. We demonstrated that aspect when we released our first Code of Conduct in 2002. It has now been 18 years that all Gunnebo’s employees have been following these guidelines defining how we act ethically in every aspect of our jobs. We are now taking a new step in improving our governance. We want sustainability to be driven across various levels in the organisation – from our Group Executive Team to the Business Units and individuals.

Actions: What we have done

Group Sustainability Committee

Appropriate structures need to be put in place if sustainability is to be systematically integrated into business practices. With this in mind, Gunnebo decided to implement a new governing body at the end of 2017: the Gunnebo Group Sustainability Committee. This is the highest body managing the area of sustainability in Gunnebo and consists of our CEO, our CFO and three SVPs from our Group Executive Team representing all areas of the company. The committee meets three times per year and is responsible for promoting the sustainability agenda throughout the Group, defining strategic priorities and programs to implement and monitoring the Group’s progress.

Assess & Act

Across Gunnebo Group, more and more initiatives and ideas around sustainability are veing developed. To improve coordination and impact, the Group launched a new initiative in 2020 named “Assess and Act”. This is a tool for auditing our progress that will bring together best practices from across the Group, providing a framework and to-do list for managers. The tool enables the group to assess what is done, identify priorities, draw up action plans and follow up on their implementation. All major entities of the group have participated in this assessment in 2020 and have drafted their actions plan for 2021 to improve their overall performance.

QSE Certification

Gunnebo long ago recognised the necessity of operational excellence. Our ambition has been to certify all of our production plants for their management systems for Quality, Environment and Safety by 2020. Except for the Group’s latest acquisition, all the group production facilities are certified for ISO 9001, ISO 14001 and ISO 45001. The Cominfo plant, acquired in December 2019, is certified ISO 9001 and will aim for ISO 14001 and ISO 45001 by the end of 2022.

Code of Conduct

Gunnebo’s Code of Conduct gives employees clear guidelines, defining how they should act ethically in their jobs and professionally in their interactions with all of the Group’s stakeholders. Employees in the Group take interactive training on the Code of Conduct, where they also learn to manage risks related to corruption, anti-competitive practices or conflicts of interest. These training activities are part of the induction programme for new employees and help to assure an understanding of Gunnebo’s corporate culture. In 2019, Gunnebo updated its Code of Conduct to reflect the latest strategic changes in the Group and to integrate it within its Sustainability Approach. Following this update, it was the Group’s ambition to refresh all employees’ training on the Code of Conduct through its HR online training platform. At the end of 2019, over 99% of all employees took this refreshment training.

Channel Partner Code of Conduct

In the last quarter of 2020, Gunnebo Group released a Channel Partner Code of Conduct for all its distributors and Channel Partners, setting out clear standards on ethics, business practices, labour, human rights, safety and environment. The Group’s goal is to develop this new policy over the next few years and engage with distributors and contracted partners around our sustainability values.

Anti-Corruption

The Group applies zero tolerance to all cases of bribery and corruption. No employee of Gunnebo should accept any gift or personal favour that might reasonably be believed to have an influence on business transactions. As the Group does business with different partners (clients, channel partners, suppliers) in countries with a high risk of corruption, it strives to get them to comply with the principles of our different Codes of Conduct.

Human Rights

Gunnebo does not tolerate any form of harassment or violence in the workplace, and the use of forced labour and child labour is strictly prohibited in all company operations. This is important to state, as Group operations are conducted to a certain extent in high-risk countries in terms of child and forced labour. Gunnebo’s approach to human rights is stated in the Code of Conduct and stresses that all humans, whatever nationality, gender, ethnic origin, religion, language, or any other status, are all equally entitled to human rights without discrimination.

Looking ahead

We are committed to continue developing a strong governance within the Group and will continue to develop the organisation in that way in the years to come in collaboration with the new owners.

Our Business: Suppliers

Commitment

Legislation and society are placing an ever- increasing demand on organisations to implement reliable systems to control their suppliers. More than ever, there is a need to determine how serious our external contractors and service providers are and to professionally assess the suitability of their arrangements. With this in mind, we want to establish clear guidelines to determine which suppliers can work with Gunnebo and implement necessary control to achieve that.

Actions: What we have done

Our operations and customers are all over the world. As such, we want to be sure that we can source products and services of a consistently high quality wherever we are.

In response, we have established our own global network of suppliers for our manufacturing units. Today, this network within manufacturing comprises several thousands of suppliers with a total purchasing volume of around €80 million for our direct materials. Around 80% of this is attributable to 210 suppliers, which we call our “major suppliers”.

Our sales units mainly rely on our manufacturing units as main suppliers. However, where direct materials supplies subsist due to local disposition, we apply the same level of requirements to our suppliers. To this day, 29 additional “major suppliers” have been identify in our sales units.

Supplier’s Code of Conduct

In order to clearly define the Group’s expectations, the Gunnebo Supplier’s Code of Conduct has been released at the end of 2018 and the Group Purchasing policy was updated. This document is setting out, for our suppliers, clear standards on ethics, business practices, labor, human rights, safety and environment.

The Group strives to ensure that all major suppliers adhere to this Supplier’s Code of Conduct and uses the principles therein among the criteria for selecting new business partners. The Group goal is to work with its major suppliers and ensure that they meet the social, ethical and environmental criteria’s.

At the end of 2020, 97.1% of the Group’s major suppliers were declaring in line with the principles that are set in the Supplier’s Code of Conduct. Furthermore, between 2019 and 2020, 35 suppliers’ audits on Sustainability have been performed by the purchasing teams in order to follow up on compliance with the most critical suppliers.

Looking ahead

In the upcoming years, we will continue working with our Supplier’s Code of Conduct, to ensure that we meet the requirements we have set.

We want to conduct an audit with all our critical suppliers. As we develop, we will implement different classes of supplier to identify our most critical suppliers. Our aim will be then to conduct an audit with all those critical suppliers. We firmly believe that we can all work closely together to mitigate a significant proportion of our sustainability risks and impacts.