OEM’s
SUSTAINABILITY-
REPORT
2021
OEMs
SUSTAINABILITY REPORT
2021
Sustainability is a key competitive tool for OEM and essential for continued economic growth and strong profitability. OEM aims to satisfy the requirements and expectations of customers, suppliers, employees, share holders and society concerning sustainability.
By focusing on economic stability, reduced negative impact on the environment and high ethical standards, OEM also enhances its competitive edge and position as an attractive employer. This is an ongoing process, in which sustainability helps to create a workplace where our employees are content, are able to develop and feel proud to represent their company. OEM’s Board of Directors, through group management, has overall responsibility for the group’s sustainability work. The operational responsibility lies in a decentralised corporate culture in the companies. The Sustainability Board that was established for 2021, comprising representatives from the larger companies, coordinates sustainability work across the whole group, ensuring a high level of quality and focus. The parent company provides support with the development of competence and supplies tools and processes for employee surveys, supplier evaluations, and initiatives for quality and the environment. This working model allows OEM to guarantee focus, quality and responsibility in sustainability practices at every stage.
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The daily commitment of employees makes a difference, and is a prerequisite for the success of OEM. It is the employees who promote the competitiveness of the company and contribute towards social development. It is therefore an important factor in work with sustainability to be an attractive employer, and to have a workplace where employees are content and able to develop. The sustainability report covers all companies in the OEM group and is prepared in accordance with the statutory requirements in the Annual Accounts Act, chapter 6, 12 §. The Board of Directors has approved the sustainability report for submission.
Competence development is included as part of personal development and the employees’ knowledge is continuously strengthened in areas such as sales, technology, finance and IT.
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BUSINESS MODEL OEM is a value-adding link between customers and leading manufacturers of products and systems for industrial applications. OEM brings value to its customers by offering a wide and diverse range of products, coupled with far-reaching technical product competence and applications know-how. OEM serves as the extended arm of the suppliers in each market and, through the efforts of a strong marketing and sales organisation, aims to make them a leading player in their niche. This makes OEM the best distribution channel for its suppliers in OEM’s markets.
MANUFACTURERS
CUSTOMERS
The development of our business operations is based on
Four central processes
Product range development.
Sales process. OEM runs an efficient sales process based on personal selling and extensive product knowledge.
OEM offers a unique and extensive range of products from leading manufacturers.
Logistics.
Market communication.
OEM has an efficient logistics process with high service standards.
OEM creates modern marketing communication that supports its sales.
What this means for our manufacturers: Assistance with marketing in local markets.
Access to components from more than 400
Can have their products marketed with complementary
manufacturers.
products.
In-depth component knowledge.
Reach markets and customers that are difficult to reach
End-to-end solutions with complementary components.
when acting alone.
Possibility to reduce the number of manufacturers.
Help with product customisation.
Deliveries to the right place at the right time.
Logistics solutions that meet customer demands.
Assurance of high product quality.
Feedback for their own product development.
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What this means for our customers:
OEM will develop logistics solutions that deliver high customer service and quality and provide high cost efficiency.
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STRATEGIES OEM has defined five strategic areas that are important for the company to continue to develop successfully and achieve its financial targets.
GROWTH OEM creates growth by growing organically, through acquisitions and through geographic expansion. These three together will generate growth that meets the growth target. 1) Organic growth Organic growth is prioritised at OEM. OEM achieves organic growth by increasing its market shares and expanding the product range the company offers to its customers. Where OEM is well established, businesses are expected to grow faster than the market average. In markets where OEM has yet to achieve a position among the five largest players, our ambition is to achieve considerably higher growth. 2) Acquisitions The acquisition of companies is a fundamental part of the work OEM does to develop the business. OEM acquires companies and product ranges that strengthen its market position within existing product areas on existing markets, including companies that add a completely new product range or give OEM access to a new geographic market. 3) Geographic expansion Geographic expansion to new markets takes place when there are good opportunities for OEM to become a prominent player by representing many of the company’s suppliers.
PRODUCT RANGE OEM offers a product range consisting of industrial components and systems from leading suppliers. The range is adapted to the local markets in which OEM operates. Continuous development of the product range is of central importance for OEM – work that is carried out together with both existing and new suppliers. Each local marketing organisation is also tasked with finding new products that will further enhance the competitive edge of the portfolio of offerings.
MARKETING OEM shall have strong marketing activities based largely on face-to-face selling, combined with online activities that provide a hub for the sales process. Personal meetings are crucial to understanding customer needs, and also an opportunity for OEM to offer its experience and technical competence. Face-to-face selling is supported by digital and printed marketing communication materials.
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LOGISTICS OEM shall develop logistics solutions that deliver excellent customer service and quality, as well as a high level of cost-efficiency. There are a total of 15 logistics units in the group. Each unit adapts its range to current operations and works towards greater coordination of the stockholding with other warehouses. Many of OEM’s logistics units have processing units close by that are skilled in delivering unique adjustments for specific customers and the installation of products.
EMPLOYEES AND MANAGEMENT All activities should be permeated by an informal culture with the focus on entrepreneurship. OEM gives its staff opportunities to develop within the company, taking into account the targets and strategies of the business and the ambitions of the staff. Recruitment and employee strategies will lead to a significant number of leadership positions being filled internally.
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SUSTAINABILITY GOALS For 2021 OEM introduced a sustainability development programme in order to more clearly define associated activities, set out the goals it aims to achieve and strengthen focus on sustainability work within the group. The first step in this process was to conduct a stakeholder and materiality analysis to enable new group-wide sustainability targets to be put in place. The targets are linked to Agenda 2030 and some of its 17 goals. Responses from the dialogue with stakeholders were collated to provide a clear picture of the Global Goals that each group thinks OEM ought to prioritise. The goals that received the most votes from each stakeholder group are presented below.
STAKEHOLDER ANALYSIS RESULTS CUSTOMERS
OEM’s
SUSTAINABILITY-
SUPPLIERS
EMPLOYEES
OWNERS
OEM har prioriterat 4 av de Globala målen utifrån de fokus- och riskområden som har identifierats ha störst betydelse för såväl OEM som för koncernens intressenter.
MATERIALITY ANALYSIS RESULTS
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REPORT
2021
OUR SUSTAINABILITY GOALS OEM shall ensure sustainable economic growth and decent working conditions for employees of OEM and its suppliers.
OEM is committed to reducing environmental impacts by lowering its carbon emissions.
Minimum sales growth of 10% per annum through a business cycle. ...... 15% • 100% of all employees shall have a performance appraisal during the year. result ...... 95% • The Employee Satisfaction Index shall be over 4.0 when the ESI survey is conducted. result ...... 4.0 • Implement and measure the number of supplier assessments in 2021. result ...... 140. •
result
•
•
OEM shall have an inclusive work environment where everyone has equal opportunities based on their qualifications for the job, without regard to gender.
OEM shall apply its extensive knowledge of products and applications to help customers make sustainably-sound choices of components and solutions.
oem shall measure, set targets and reduce emissions based on the ghgProtocol. result ...... Scope 1: 976 tonnes of CO2 (1,027 tonnes of CO2) Scope 2: 131 tonnes of CO2 (159 tonnes of CO2) Scope 3: 2,155 tonnes of CO2 (2,803 tonnes of CO2) 100% renewable energy purchased through 2030. result ...... OEM is already purchasing a significant amount of renew................ able energy today and makes this a priority when entering ................ into new agreements.
•
oem shall increase the percentage of women as new hires with the aim of increasing the number of women in senior positions. result ...... The number of female employees has risen from 20% to ................ 21% and the number of female leaders from 15% to 18%
•
100% of the supplier assessments performed shall evaluate the supplier’s and products’ most significant environmental aspects and the quality performance of products. result ...... The work has begun and will be further developed in 2022 oem shall communicate products that are good from a sustainability perspective more clearly in its marketing communications and sales processes. result ...... This is already a natural part of the sales process and ................ marketing communications today. The focus in 2022 will be ................ on developing this further
•
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The prioritised goals also cover the three aspects of sustainability. Environmental responsibility – The environmental impact from the group’s products, product and passenger transport, and the heating of premises. Examples of risks: Purchase and sale of products that may contain environmentally hazardous substances, the use of environmentally hazardous packaging materials, transport of both products and passengers. Economic and ethical responsibility – Financial stability and strength is a prerequisite to invest in sustainable business development. Guarantee responsible business that represents human rights and opposes corruption. Examples of risks: The business stops developing, which affects the financial stability and strength. Departure from the group’s Code of Conduct, which leads to breach of human rights in the business of the group or suppliers. Offer of, or acceptance of bribes or other form of undue payment with a view to induce someone to act in conflict with the prescribed undertakings. Social responsibility – As a responsible employer to be able to offer employees enhanced competence, a sound working environment, good health and security, and to oppose discrimination and harassment in the business. Examples of risks: Working environment risks (that can put the lives and health of employees at risk). Every kind of discrimination, harassment, abuse or threats at the workplace. Other conditions that do not contribute to a safe and pleasant working environment for employees.
Economic and ethical responsibility
SUSTAINABILITY Environmental responsibility
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Social responsibility
ENVIRONMENTAL RESPONSIBILITY OEM encourages actions and initiatives that lead to greater environmental responsibility and preventative measures in order to give priority to environmentally friendly solutions. OEM has identified the transport of goods, travel, heating of premises and manufacturing and use of products as the areas having the greatest environmental impact. There has been a strong focus on these areas for many years and OEM strives to minimise the environmental impact as far as this is technically possible and environmentally motivated. It is also important to initiate and support the development initiative within these areas, work that is performed in close collaboration with the Group’s suppliers through product development and the creation of new products and suppliers. Several of the businesses in the group are quality and environmentally assured in accordance with ISO 9001 and ISO 14001.
Products and range The group continues to search for and supply products and solutions that are climate smart and of high quality for customers, and which contribute to sustainable development and diminished impact on the environment. It is OEM’s explicit aim to use its extensive knowledge of products and applications to influence a customer’s choice of components and solutions from a sustainability perspective. Supplier assessments will be used to assess the supplier’s and the products’ most significant environmental aspects and the quality outcomes of products. OEM attaches immense importance to always supply the components that function best in the customers’ applications, and can therefore, through customer knowledge and technical ability, also initiate developments towards more sustainable components. OEM also communicates information about sustainable products in its marketing communication materials and sales processes.
Logistics The group’s logistics is to the very highest degree a sustainability factor. The optimisation of stock levels and handling reduces consumption and creates better access for customers, and also results in less lifting and handling for personnel. The businesses work continuously to optimise the ratio between incoming and outgoing deliveries so that the right quantity is purchased. This reduces both transports and the consumption of packaging materials. 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. OEM will develop logistics solutions that deliver high customer service and quality and provide high cost efficiency.
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Real estate The group continues to work to reduce the environmental impact from its business properties and other premises. The objective is, from year to year, to find energy saving areas to reduce consumption. Activities implemented in 2021 include the continuation of the group’s energy saving programme, which has run for a number of years. The logistics centre at Höganloft has upgraded additional elements of its lighting system, with new fixtures from fellow subsidiary Hide-a-lite, and has optimised the number of light sources to ensure the appropriate luminous flux. The end result is an annual saving in electricity consumption of 70,000 kWh. A decision has also been made on further increasing the number of solar panels at the group’s properties. The existing solar cell array generated approximately 181 MWh in 2021. During warmer periods of the year geothermal heating is used to cool the premises, which means that there is no air conditioning consuming energy.
Company cars With a total of some 900 employees on several markets, the group also has a direct impact on the environment through the choice of company cars and carbon emissions from these. The objective is to achieve an annual reduction in carbon emissions through the choice of company cars and replacing traditional meetings with video meetings. The new working methods that have emerged during the pandemic have clearly shown that this is possible.
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The existing solar cell array generated approximately 181 MWh in 2021. During warmer periods of the year geothermal heating is used to cool the premises, which means that there is no air conditioning consuming energy.
Emissions of greenhouse gases in compliance with the GHG Protocol OEM has reported emissions of greenhouse gases 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 three categories or scopes. OEM focuses 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. Goods transport generates a significant share of emissions, followed by business travel and heating of premises. OEM monitors the environmental impact of freight transport operators to enable the best transport options to be selected, and also reuses packaging materials as far as possible. The considerable impact of the pandemic on the company’s travel continued in 2021, as evidenced by the relatively low level of emissions from business travel. The results of the report also provide a basis for additional activities linked to the company’s sustainability goals. SCOPE 1
2021
2020
Business travel by car
948 tonnes of CO2
1,001 tonnes of CO2
Energy own premises
28 tonnes of CO2
26 tonnes of CO2 1,027 tonnes of CO2
TOTAL SCOPE 1
976 tonnes of CO2
SCOPE 2
2021
2020
Energy own premises
131 tonnes of CO2
159 tonnes of CO2
TOTAL SCOPE 2
131 tonnes of CO2
159 tonnes of CO2
SCOPE 3
2021
Energy leased premises
189 tonnes of CO2
2020 160 tonnes of CO2
Goods transport
1,924 tonnes of CO2*
2,606 tonnes of CO2
Business travel
42 tonnes of CO2
37 tonnes of CO2 2,803 tonnes of CO2
TOTAL SCOPE 3
2,155 tonnes of CO2
* Reporting on Scope 3 is incomplete due to difficulties in obtaining data from some forwarding agents
One of OEM’s explicit aims is to reduce its environmental impact by reducing carbon emissions. This will be implemented by means of monitoring, setting goals and reducing emissions based on the GHG protocol. One further objective is for energy to be purchased from 100% renewable sources by 2030. To compensate for carbon emissions through financial contributions the largest subsidiary in the group has calculated the impact from company cars and chosen to enter into a cooperation agreement with the Swedish fund-raising trust “Vi Agroforestry”.
Greater focus on sustainability OEM has a strong and clear ambition to put greater focus on sustainability issues in the future by establishing clearer targets for the business, enabling it to take a more purposeful and hands-on approach within this area.
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ECONOMIC AND ETHICAL RESPONSIBILITY Since 2013, OEM has had a mutual Code of Conduct as a platform for the group’s work with sustainability. The objective is to create effective and responsible work with relevant activities, and that development in environmental, ethical and social issues takes place harmoniously. Clear accountability creates a sharper competitive edge and enhances its position as an attractive employer. Moreover, the company is inspiring a healthy business culture. OEM’s Code of Conduct is based on the ten principles set forth in the United Nation’s Global Compact in the areas of human rights, labour, the environment and anticorruption. These areas are the key components of the responsible approach that it is natural to take for all Group companies. The Code of Conduct also puts demands on suppliers. They must confirm in writing that they act within the framework of the law in respective countries, oppose corruption and otherwise live up to the intentions of the Code Of Conduct, for example by offering their employees a safe and sound working environment where there is no child labour. The objective is to continuously increase the proportion of suppliers who confirm the Code of Conduct in writing as well as regularly perform supplier assessments. The group does not accept corruption, bribes or other unfair competitive measures, and all such events are reported. The OEM group supports and respects the protection of human rights and works to ensure that complicity in crime concerning the infringement of human rights does not occur.
CODE OF CONDUCT Human rights 1) oem supports and respects international human rights within the company’s sphere of influence. 2) oem shall not be complicit in human rights abuses.
Working rights 3) oem upholds freedom of association and recognises the right to collective bargaining. 4) oem has a zero-tolerance policy towards any type of forced or compulsory labour. 5) oem has a zero-tolerance policy towards any type of child labour. 6) oem is against all discrimination with regard to recruitment and the performance of work.
The environment 7) oem supports the precautionary approach with regard to environmental hazards. 8) oem undertakes initiatives to promote greater environmental awareness. 9) oem encourages the development of environmentally-friendly technologies.
Anti-corruption 10) oem is committed to countering corruption in all forms, including extortion and bribery.
OEM has a web-based whistleblower function as the group is committed to a culture of openness and accountability with high ethical standards, and its employees play a key role in identifying any non-conformance with the values and ethical guidelines of the group. Every employee is given the opportunity to either openly or anonymously report all forms of suspected irregularities, which is important to promote a high level of business ethics. The chairman of the audit committee is the recipient of the whistleblower function.
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Economic stability and strength is a prerequisite to invest in sustainable business development. In a world that is continuously changing, the business must continuously develop. OEM’s overall vision is to be a leading technology trading group in industrial components and systems, in selected markets in Northern, Central and Eastern Europe. OEM offers a wide and diverse range of industrial components from leading suppliers, and through a well-developed local market organisation and effective logistics constitutes a better alternative to the suppliers establishing their own sales companies. OEM also contributes a high level of expertise and service. All of this creates a long-term partner for customers and suppliers, which in turn is synthesised in profitability, growth and development. The economic development can be followed in the Annual Report.
SOCIAL RESPONSIBILITY The OEM group aims to be experienced as an attractive employer of current, potential and former employees. This demands that all measures in the area of human resources are characterised by a professional attitude, with explicit guidelines for both managers and staff. The objective is for all employees to receive a performance appraisal every year concerning development, their work situation, the working environment, and, where appropriate, discrimination, gender equality, health and safety, etc. In 2021, approx. 95% of all employees had an appraisal.
The commitment of employees make a difference OEM’s major competitive advantages are the competence and commitment of its employees. In an increasingly competitive market, where in many cases the products are becoming more and more similar, it is often the dedication and efforts of the employees that make the difference. The high level of expertise of the employees is based on the combination of top technical expertise and a strong sales focus. OEM’s product specialists and sellers are key persons in relations with manufacturers and customers. Their knowledge and commitment build lasting and trusting relationships in line with OEM’s business model. It is becoming more and more important to develop additional value and effective internal processes, which in many cases are adapted to an increasingly digitalised world. The employees are the guarantee that OEM in both the short and long term can maintain its position as one of Europe’s leading technology trading groups.
Personal development towards specific targets Employees who continually develop and have a long-term perspective, in combination with a continuous pipeline of young talent are important for OEM’s long-term competitiveness. OEM is therefore continually working to develop its attractiveness as an employer, both for existing and future employees. OEM encourages the development of all its employees in several different ways. The use of individual development plans is one of the most important activities. Business objectives are combined with individual goals to create plans that facilitate the ongoing development of the skills of all employees. The contents of the personal development plans are discussed at annual performance appraisals. Completed activities are evaluated and plans for the coming year are established. Skills development is part of the employees’ personal development and their know-how and expertise are regularly updated through training in sales, technology, finance, IT and other areas.
Ambitious sales force OEM has always had the development of its sales team as a focal area. The sales professionals must have extensive knowledge of the products, a strong sense of business responsibility and work closely alongside the customers. They can then independently drive the sales process forward and live up to OEM’s high ambitions concerning the ability of sellers to identify new business opportunities and give customers the best service on the market. The sales personnel follow training programmes that run over several years to enable them to meet the requirements. Newly-hired sales personnel attend internal and external courses aimed at promoting personal development and creating an efficient sales methodology. A solid background in sales also opens doors to other positions at OEM, such as sales manager or business area manager.
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Creativity and inquiring minds are encouraged All of OEM’s employees are encouraged to shape their own careers by being curious, creative and goal-oriented. Most leaders are recruited internally and a great amount of energy and effort is channelled into identifying and developing individuals with leadership qualities who can become future leaders, both locally and centrally. Career progression is generally within the respective company. Complementing this are central initiatives, such as Group-wide talent-development programmes aimed at improving skills and building networks among the employees. Experience of sales work or work within the product organisation is highly valued in the employee’s career progression and the company encourages employees to move to positions in different parts of the company and different countries too. OEM’s leadership culture is based on strong teams and specific targets. Each manager builds his or her team and sets clear individual goals for his or her colleagues.
Young employees strengthen the organisation The organisation continually recruits young talent with an interest in technology and sales. Thanks to well-designed induction programmes and personal development plans, the new employees quickly learn their duties and are assigned progressively more responsible work. Young talents who are given responsibility and development opportunities within the organisation also creates a good breeding ground to be able to develop into leaders, and OEM has a long tradition of recruiting the majority of new managers and leaders internally. For example, new employees are introduced through trainee programmes for newly graduated employees with degrees in engineering or economics, and the potential to assume leadership responsibilities in the future. OEM also cooperates with several different educational institutions, by offering traineeship and guidance in thesis projects. This is a means of attracting future recruitment, and at the same time spreading awareness of OEM’s business activities.
Commitment to equality At OEM, everyone has equal opportunities based on qualifications for the job, without regard to religion, ethnicity, nationality, gender, age, disability or sexual orientation. As part of OEM’s ongoing work with sustainability most of the group companies carry out in-depth activities in the area of equal opportunities, such as the training of employees and preparation of policy documents. OEM’s sector is traditionally male-dominated, but the company is striving for a more equal gender balance. OEM’s explicit objective is to increase the proportion of female employees overall, in order to subsequently bring about an increase in the proportion of female senior executives. To succeed in this, OEM has to increase the proportion of female job applicants during recruitment processes, in particular within customer-facing and supplier-facing roles. In 2021 there was an increase in the proportion of women in the group, up to 21% from 20% in 2020. The number of female managers increased from 15% to 18% in 2021.
Well-being is a core issue The well-being of employees has been a core issue ever since OEM was first established. Well-being and health are essential in order to perform and develop, both as an individual and as a group. OEM invests in creating a pleasant, safe and secure working environment, and the company encourages a healthy lifestyle by supporting physical exercise and preventive health care. Activities designed to create good cohesion and improve group dynamics are often conducted in conjunction with conferences or workplace meetings. This has posed a particular challenge in the past two years, as the opportunities for joint activities have been severely limited owing to the pandemic. This has also meant that OEM has taken the well-being and health of employees very seriously by following up and evaluating the conditions that impact the employee’s work environment to varying degrees. This has resulted in measures to facilitate e.g. working from home, physical distancing at the work places, digital meetings and other parts to reduce the spread of infection.
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Employee surveys
Employee surveys are carried out to follow-up the long-term and strategic development of human resources. Employee surveys cover basic working conditions, health and the working environment, motivation and incentive, and job satisfaction. In 2021 a number of companies conducted their own employee surveys, all of which recorded a Satisfied employee index of 4.0 or higher. In the most recent group-wide survey, the response rate was 97% of employees, with an overall Satisfied employee index of 4.1 on a scale with a maximum of 5.0, and most of the companies recorded 3.9 to 4.2, which may be considered to be relatively satisfied employees. The employee surveys are reported and processed the board meetings in respective companies. This is a way of identifying OEM’s strengths and weaknesses as an employer and can be followed up to achieve further improvements. Employee surveys will continue to be carried out regularly to chart changes and to implement improvements and thereby continue to increase the Satisfied employee index. The next group-wide employee survey will be conducted in 2022.
In connection with many of OEM’s logistics units, there are processing units that efficiently make customer-unique adaptations and assembly of products.
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Employee turnover OEM strives to ensure that employees get on well and develop so that key competence is retained and that OEM is seen as an attractive employer during the recruitment of new talent. At the same time, the Group is dependent on renewal and new forces that balance long-term skills and experiences. Accordingly, OEM strives to have a staff turnover at a low yet reasonable level. In 2021 there was a total employee turnover of 14%. Employee turnover increased by 4.5 percentage points compared with the previous year. Historically, however, this remains low. During the year the group’s workforce has increased by a total of 13 people. However, what is most important to OEM is that its employees are happy and feel that they are developing, and the aim is to capture this in individual performance appraisals as well as through continuous development work.
Employee turnover increased by 4.5 percentage points in 2021.
LENGTH OF EMPLOYMENT
AGE SPLIT
(No./years)
(No./age)
300
300
250
250
200 200 150 150 100 100 50 50
0
56
46
36
26
11
– 12
8–
7
3
5
5
5
4–
1–
-1
–
–5
–4
–3
5
-2
Absence due to illness In 2021 absence due to illness was on average 7.0 days per person, which is a reduction of 0.5 days from the previous year. Health is essential in order to perform and develop, both as an individual and as a group. The objective is that no one should be affected by physical or mental ill-health as a result of their working situation. OEM encourages a healthy lifestyle by supporting physical exercise and preventive healthcare.
Labour law All our companies and suppliers must, in accordance with our Code of Conduct, comply with the minimum requirements in national legislation concerning labour law. OEM has zero tolerance for forced labour and works actively to ensure there are no infringements of regulations in our business or our value chain.
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OUR ROLE IN SOCIETY OEM accepts responsibility also at social level. The companies in OEM have a strong local anchorage and they often do business in small localities. The companies contribute towards strengthening the societies where they are active through a vital and long-term entrepreneurship, support of local club activities and cooperation with different organisations. The companies strive to recruit new employees locally and to offer job opportunities to young people. Through an active and constructive dialogue with the local society the companies want to create the prerequisites for local growth.
Taxes Through employer’s contributions and taxes the group contributes to our communal welfare. National tax laws and regulations are followed in all the respective countries where business is carried out.
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EU TAXONOMY OEM is covered by the EU’s directive on sustainability accounting (Non-Financial Reporting Directive or NFRD), and therefore reports in line with the established taxonomy and the rules and regulations for sustainability reporting for 2021. For that reason, we present the proportion of our group sales (turnover), capital expenditure and operating expenditure for the 2021 reporting period associated with taxonomy-eligible economic activities related to the first two environmental objectives: climate change mitigation and climate change adaptation.
Proportion of taxonomy-eligible economic activities
TOTAL (SEK MILLION)
Sales
PROPORTION OF TAXONOMY-ELIGIBLE ECONOMIC ACTIVITIES (%)
PROPORTION OF TAXONOMY-NON-ELIGIBLE ECONOMIC ACTIVITIES (%)
3 774
0
100
Capital expenditure
53
79
21
Operating expenditure
11
8
92
Qualifying economic activities 7.7 Acquisition and ownership of buildings
Sales (SEK million)
Capital expenditure (SEK million)
Operating expenditure (SEK million)
2,5
42,0
0,9
Definitions
Taxonomy-eligible economic activity means an economic activity that is described in the delegated acts supplementing the taxonomy regulation, irrespective of whether that economic activity meets any or all of the technical screening criteria that have been laid down. Taxonomy-non-eligible economic activity means any economic activity that is not described in the delegated acts supplementing the taxonomy regulation.
Taxonomy
We have examined the relevant taxonomy-eligible economic activities based on our activities as a technology trading company that also has property holdings, and have identified the following in accordance with delegated acts supplementing the taxonomy regulation. Economic activity
Description
7.7 Acquisition and ownership of buildings
Purchase properties and exercise ownership of the property.
NACE code 68
Assessment of our taxonomy-eligible activities The majority of OEM’s properties are owned for the purpose of being used for own activities and, under the taxonomy regulation, are therefore not eligible. In 2021 a property was acquired in Finland for the purpose of being used solely for own activities, but which during the year has also had external tenants.
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Key performance indicators Sales
The proportion of taxonomy-eligible economic activities of our total sales has been calculated as the portion of taxonomy-eligible net sales divided by total net sales. The taxonomy-eligible portion (economic activity 7.7) is defined as the portion of owned properties that also have external tenants. Total net sales is defined in accordance with IAS 1.82(a). and can be found in the Consolidated Statement of Income in the Annual Report as Net sales.
Capital expenditure The proportion of taxonomy-eligible economic activities of our total capital expenditure has been calculated as the portion of taxonomy-eligible capital expenditure divided by total capital expenditure. The taxonomy-eligible portion (economic activity 7.7) is defined as the portion of owned properties that also have external tenants. Total capital expenditure comprises additions to tangible and intangible assets during the financial year, before depreciation and amortisation, revaluations, including impairments, and excluding fair value changes. Goodwill is not included in total capital expenditure. Assets acquired during the year can be found in Note 13 in the Annual Report.
Operating expenditure
The proportion of taxonomy-eligible economic activities of our total operating expenditure has been calculated as the portion of the taxonomy-eligible operating expenditure divided by total operating expenditure. The taxonomy-eligible portion (economic activity 7.7) is defined as the portion of owned properties that also have external tenants. Total operating costs refers to direct non-capitalised costs that relate to building renovation measures, shortterm leases, maintenance and repair, and any other direct expenditure relating to the day-to-day servicing of assets of property, plant and equipment by the company or a third party employed for this purpose and that are necessary to ensure the continued and effective functioning of such assets.
The OEM Group’s goal is to be perceived as attractive employers of current, potential and former employees.
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Box 1009, Förrådsvägen 2 573 28 Tranås, Sverige 075-242 40 00 info@oem.se Org.nr: 556184-6691
Release year: 2022
OEM International AB