OEM INTERNATIONALS
SUSTAINABILITYREPORT 2023
SUSTAINABILITYREPORT 2023
OEM shall ensure sustainable economic growth and promote decent labour conditions for both OEM and its suppliers. The sustainability strategy is not just part of the business model, it is at its core and is a driver of development and growth. OEM will be at the forefront of sustainable development in line with Agenda 2030, and its sustainability efforts will comprise the economic, ecological and social aspects of sustainability. The ambition is to achieve sustainable profitable growth, reduce negative environmental impact, maintain a high standard of business ethics and to be an attractive workplace.
Sustainability is a competitive advantage, and the organisations’ in-depth product and application expertise also includes sustainability aspects and thus forms a natural part of the business. Through an explicit commitment to reducing environmental impact, maintaining high ethical standards, promoting equal opportunities and economic sustainability, OEM strengthens its position in the market and its reputation as an attractive employer. Employee commitment is critical to OEM’s success. The company’s competitiveness and contribution to societal progress is down to the efforts of its employees. Remaining an attractive employer with a workplace in which employees thrive and have opportunities for advancement, is therefore a core component of the company’s sustainability strategy.
The Board of Directors of OEM, through Group Management, has the executive responsibility for the company’s sustainability efforts. The decentralised corporate structure ensures that the operational activities are lodged with the individual companies whose goals and plans are in line with OEM’s overarching sustainability goals. To further reinforce its sustainability efforts, OEM has appointed a Sustainability Committee that includes representatives of the larger-scale companies. The Committee’s objective is to ensure group-wide coordination, quality and focus on sustainability issues. If necessary, the parent company can offer additional support with tools and processes.
A key component in maintaining high ethical standards and a transparent corporate culture is the whistleblower service, which ensures that employees can report any wrongdoing.
The Sustainability Report covers all companies in the OEM group and is prepared in accordance with the statutory requirements set out in Section 12, Chapter 6 of the Swedish Annual Accounts Act. The Board of Directors has approved the Sustainability Report for submission.
BUSINESS MODEL
OEM’s business model is based on creating value for customers and suppliers. A steadfast commitment to improving and developing its offerings to customers results in a unique range of products and systems which, along with the technical expertise of its employees, create value for customer products and processes. With a local presence, OEM markets its products effectively and reaches out to customers that the suppliers would otherwise find it difficult to reach.
MANUFACTURERS
Product range development
OEM offers a unique and extensive range of products from leading manufacturers.
In developing our activities, we work on the basis of four key processes
CUSTOMERS
Sales process
OEM runs an efficient sales process based on personal selling and extensive product knowledge.
Logistics
OEM has an efficient logistics process with high service standards.
Marketing communication
OEM creates modern marketing communication that supports its sales.
What this means for our manufactures:
Assistance with marketing in local markets.
Can have their products marketed with complementary products.
Reach markets and customers that are difficult to reach when acting alone.
Help with product customition.
Logistics solutions that meet customer demands.
Feedback for their own product development.
What this means for our customers:
Access to components from more than 400 manufacturers.
In-depth component knowledge.
End-to-end solutions with complementary components.
Possibility to reduce the number of manufacturers.
Deliveries to the right place at the right time.
Assurance of high product quality.
STRATEGIER
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
OEM prioritises organic growth. OEM achieves organic growth by increasing its market shares and expanding the product range that the company offers to its customers. Where OEM is well established, the operations are expected to show growth above the underlying market growth. In markets where OEM has not yet reached a position among the top five players, the aim is to achieve significantly higher growth.
2) Acquisitions
Business combinations are a priority in OEM’s growth strategy. 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 into new markets will take place when it is possible for OEM to become a prominent player by representing several of the company’s suppliers.
PRODUCT RANGE
OEM shall offer a product range consisting of 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 ACTIVITIES
OEM shall have a strong marketing approach, which is mainly based on personal sales combined with the website as a hub in the sales process. Face-to-face meetings are essential to understand the customer’s needs, while providing the opportunity to share OEM’s experience and technical expertise. Face-to-face selling is supported by digital and printed marketing communication materials.
LOGISTICS
OEM shall develop logistics solutions that deliver high levels of customer service and quality, as well as significant cost efficiencies. In total, there are 15 logistics units within the group, with the majority of the real estate owned by OEM. 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 also have processing units that provide efficient customised adjustment and assembly 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.
Jonas Wahrby, Sustainability Coordinator, Elin Gustafsson, Quality and Sustainability Manager at OEM Automatic, & Caroline Lundborg, Environmental and Sustainability Coordinator at OEM Electronics.
SUSTAINABLE DEVELOPMENT GOALS
For 2021, OEM introduced a sustainable development programme in order to more clearly define associated activities, set out the goals it aims to achieve and step up sustainability efforts 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. OEM has continued its efforts in line with this working model and Agenda 2030, and the Global Goals inform the principles of OEM’s sustainability goals. OEM has chosen to focus on 4 of the 17 Global Goals. To optimise and drive the sustainability agenda forward, the subsidiaries’ own sustainability goals should be linked to the group’s main goals. Depending on the specific circumstances of the companies, they can also have other goals linked to any of the other targets under the Global Goals.
The 4 priority Global Goals were chosen based on the focal points and risk areas identified as having most significance to both OEM and the group’s stakeholders. OEM believes that change starts from within and has therefore categorised identified focus areas from the product, which is the core business, to people and the environment.
THREE ASPECTS OF SUSTAINABILITY
OEM believes that change starts from within and has therefore categorised identified focus areas from the product, which is the core business, to people and the environment, which also ensures that the goals cover the three sustainable development aspects.
PRODUCTS
Inventory the number of suppliers that have a sustainability report.
Communicate environmentally sound products in marketing communications and sales processes.
The number of supplier assessments should increasecompared to 2022.
PEOPLE
The organisations now have a more extensive dialogue regarding sustainability with their suppliers.
OUTCOME: This is already a natural part of the salesprocess and marketing communication.
547 (476)
At least 30% women in recruitment, with the aim of increasing the number of women employed. 23%
At least 20% women in recruitment for sales and product services, with the aim of increasing the number of women in management positions over time. 17%
Inventory the number of suppliers who have a code of conduct. 231
100% of all employees shall have a performance appraisal during the year > 95%
PLANET
Halve CO2 emissions every 10 years, base year 2020.
100% renewable purchased energy
Fossil fuel-free vehicle fleet by 2030.
Implement activities to reduce fossil fuel dependency in freight transport.
Increase knowledge, awareness and commitment in the organisation.
Scope 1: 1,045 tonnes CO2 (1,027)
Scope 2: 606 tonnes CO2 (153)
Scope 3: 4,945 tonnes CO2 (3,013)
Some of the increase in emissions can be explained by much more extensive reporting.
The companies already purchase a high proportion of renewable energy . This is also prioritised when new contracts are signed.
New company car policy and contracts are formulated toenable this.
Focus area 2023 with several activities completed. For example, several group companies have signed an agreement with the Geodi Marine Fuel Insetting programme for bio-based sustainable fuels for shipping.
In 2023, a large number of activities were carried out at company level to increase awareness and engagement.
PRODUCTS
Economic and ethical responsibility
PRODUCTS
OEM will use its extensive knowledge of products and applications to influence a customer’s choice of components and solutions from a sustainability perspective. Financial stability and strength is a prerequisite to invest in sustainable business development. Examples of risks: A lack of control of the supply chain does not ensure compliance with sustainability requirements in manufacturing. Can lead to the purchase and sale of products that contain, for example, environmentally hazardous substances.
ECONOMIC AND ETHICAL RESPONSIBILITY
Guiding customers in choosing the right components is a key element in the sustainability efforts. Product manufacture and use has a major environmental impact and it is therefore important to initiate and support development initiatives in these areas. Activities are performed in close partnership with the group’s suppliers through product development and the creation of new products.
THE RIGHT OFFER FOR INCREASED SUSTAINABILITY
OEM offers sustainable solutions through, for example, low-energy and high-efficiency products, reduced need for travel, smart products that help streamline production and enhance operations or simply contain fewer raw materials. Products with a long life that can be repaired and are made of recyclable materials are also a good fit for the circular economy. With its comprehensive product knowledge, OEM offers a holistic perspective and works closely with customers on both small and large projects. OEM not only strives to sell products, but also to help create better overall solutions. This is achieved either in collaboration with partners who are experts in specific areas, or by bringing together products that can work together to help customers save energy or work more efficiently, for example.
OEM’s ambition to offer sustainable solutions not only supports the transition to a sustainable society, but also provides a competitive advantage and creates new business opportunities. OEM’s goals include advancing knowledge and promoting awareness of, and commitment to, sustainability within the group, continuing to integrate sustainability into sales processes and training, and working with suppliers to offer even more sustainable products and solutions.
PEOPLE
OEM shall have an inclusive working environment where everyone has equal opportunities based on their qualifications for the job regardless of gender, ensure sustainable economic growth and promote decent working conditions at both OEM and its suppliers.
Examples of risks: The business stops developing, which affects financial stability and resilience. Working environment risks that can put the lives and health of employees at risk. Any form of discrimination, harassment, abuse or threats at the workplace. Non-compliance with the group’s Code of Conduct, which leads to breach of human rights in group or supplier activities. 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
OEM accepts responsibility also at the societal level. The companies in OEM have a strong local commitment and they often do business in small communities. The companies contribute towards strengthening the communities in which they are active through vital and long-term entrepreneurship, sponsorship of local club activities and partnering with diverse organisations. The companies strive to recruit new employees locally and to offer job opportunities to young people. Through proactive and constructive interaction with local communities, the companies seek to foster local growth and progress.
TAXES
Through employer’s contributions and taxes the group contributes to our communal welfare. National tax laws and regulations are complied with in all the respective countries where we conduct business.
EQUAL-OPPORTUNITY ORGANISATIONS
Creating gender-equal organisations with healthy corporate cultures and sound working environments is a priority. It also makes OEM an attractive employer for both existing and future employees. Employee development and continuous replenishment of young talent is an important part of building a longterm competitive company. The goal is for all employees to have a performance appraisal each year to discuss their professional development, work situation and work environment, and where necessary address any discrimination, equality, health and safety issues, etc. In 2023, performance appraisals were conducted with over 95% of all employees.
At OEM, everyone has equal opportunities based on qualifications for the job, without regard to religion, ethnicity, nationality, gender, age, disability or sexual orientation. One of OEM’s overall sustainable development goals is to increase the percentage of female employees with the ultimate aim of increasing the number of women in senior positions. Organisations where every individual has equal opportunities are more dynamic and have a stronger competitive advantage. The aim is to recruit two-thirds of managers internally, and senior positions are currently often held by people with a background in the sales and product organisations. This means that increasing the share of women in these areas is particularly important for achieving the gender equality objective. The technology sector is generally male-dominated and there is an over-representation of male applicants for recruitment. The focus is therefore on increasing the number of female applicants, especially within services that work closely with customers and suppliers. A series of activities are in place to maximise the chances of succeeding with this, including setting requirements for those condu cting the recruitment process and giving female candidates the opportunity to meet female employees during the recruitment processes.
The proportion of women in the group is 23%, which is an increase of 2 percentage points compared to the previous year.
LONG-TERM RELATIONSHIPS DEVELOP THE BUSINESS
Strong employee trust and long-term relationships with customers and suppliers are an important part of the business model. Sales and product specialists play a key role in development of the businesses’ customer offerings, which in turn facilitates growth and profitability. The sales professionals therefore work closely alongside the customers with the goal of providing the best service in the market and always exceeding customer expectations. The product organisations work closely with the suppliers and hold face-to-face meetings at both the suppliers’ factories and at OEM’s entities. For large-scale projects, it is customary for suppliers to visit customers together with OEM staff to create the best conditions for making competitive offers.
PERSONAL DEVELOPMENT AND SPECIFIC GOALS
Strong teams with specific goals, for both the group and individuals, are success factors and key to OEM’s leadership culture. The main responsibility for employee skills development rests with each individual company. In addition, key initiatives such as group-wide development programmes are undertaken to both strengthen skills and build networks between employees. Personal development and specific goals are imperative for employee satisfaction and happiness. Annual performance appraisals and individual development plans play an important role in continuous skills development. Development plans are individualised based on follow-up of the previous years’ activities and the employee’s ambitions combined with the objectives and needs of the organisation. Effective employee development processes are also an important resource for identifying new leadership candidates.
NEW YOUNG EMPLOYEES REINFORCE THE ORGANISATIONS
The expertise and commitment of employees are what make the difference in an increasingly competitive market. Strong teams and continuous skills development enable OEM to meet the increasing demands of the market for in-depth product and application expertise. An interest in technology and sales is therefore favoured in recruitment in that it brings dynamism and drive to the organisation.
‘An important part of building competitive organisations is to continuously reinforce them with new young employees. Induction programmes and personal development plans are used in order to ensure that new recruits settle into their duties quickly. In the long term, this also reinforces the employee’s own career prospects with the possibility of gradually filling more responsible positions. 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. To facilitate future recruitment and raise awareness of OEM’s activities, OEM partners with several educational organisations by offering internships and supervision of degree projects for example.
WELL-BEING IS A CORE ISSUE
Happiness and health are essential for enabling employees to perform and develop to best ability throughout their career, both individually and as part of a team. Workplaces must provide an attractive, safe and healthy environment, and regular investments are made to safeguard those standards for the employees. Activities designed to create good cohesion, strong teams and group dynamics are often conducted in conjunction with conferences, workplace meetings and other gatherings. OEM offers employees support for physical activities to encourage a healthy lifestyle.
EMPLOYEE TURNOVER
Accordingly, OEM strives to keep staff turnover at a low yet reasonable level. In 2023, the overall employee turnover rate was 12%, which was stable compared to the previous year. The number of employees increased from 998 to 1054 in 2023. Of these, 32 were added through acquisitions and 13 were reinforcements to existing operations.
ABSENCE DUE TO ILLNESS
In 2023, absence due to illness averaged 7 days per person, which is unchanged since the previous year. Sound health is essential in order to perform and develop as both an individual and as a group. The objective is for no one to 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 of forced labour and works actively to ensure there are no violations of regulations in our operations or our value chain.
PLANET
OEM will contribute to climate change mitigation by reducing CO2 emissions, which is critical to slowing down climate change.
Examples of risks: Purchase and sale of products that may contain environmentally hazardous substances. Use of environmentally hazardous packaging material in packaging. Transportation in terms of both goods and passenger transportation.
LOGISTICS
Goods transportation has a major environmental impact and is a priority area in our sustainability commitment. By optimising the ratio between inbound and outbound deliveries and ensuring that the right quantities are purchased, we reduce both the number of transport operations and the consumption of packaging materials. The environmental impacts of freight forwarders are monitored to enable the best transportation options to be selected. OEM is also committed to reusing packaging materials as far as possible.
PLANET
Environmental responsibility
PROPERTIES
OEM is strongly committed to implementing sustainable solutions with the goal of reducing energy consumption and its carbon footprints. As part of this commitment, OEM invests in solar panels on the properties it owns. The installation of solar panels continued in 2023 and now meets more than 80% of the annual electricity requirements of the properties in Tranås, Sweden. More solar panels will be installed on properties in Finland and Denmark in 2024. Several of the group’s companies use renewable electricity in their premises, which is also a priority for new electricity supply contracts. In addition to this, the climate impact of existing properties and buildings is surveyed with regard to heating, cooling and lighting to achieve energy savings. On-going energy efficiency projects include drilling more boreholes and installing more heat pumps, replacing old ventilation systems, replacing fluorescent lighting fixtures with LED in all properties, and installing high-speed sliding doors.
VEHICLE FLEET
With a total of some 1,000 employees, the group also has a direct impact on the environment through its choice of company cars and carbon emissions from these. OEM aims for the vehicle fleet to be fossil-free by 2030. A new service image policy permits electric cars to be chosen as company cars to a greater extent. The objective is to achieve an annual reduction in carbon emissions through the choice of company cars, more efficient driving practices, and by replacing traditional meetings with video meetings.
EMISSIONS OF GREENHOUSE GASES IN COMPLIANCE WITH THE GHG PROTOCOL
OEM has the long-term goal of reducing greenhouse gas emissions. The reporting requirements of the GHG Protocol provide an important tool for measuring and monitoring emissions. Emissions are classified into 3 Scopes where OEM has previously focused on Scopes 1 and 2 as well as goods transportation and business travel in Scope 3. Work on more complete Scope 3 reporting commenced in 2023, which accounts for some of the increase reported for 2023. More complete reporting of Scope 3 emissions is also necessary for reporting under CSRD and ESRS, and will also enable us to join the Science Based Targets initiative (SBTi). The results of the reporting are also used as a strategic tool for the sustainability agenda and serve as the basis for further activities linked to the companies’ sustainability goals.en kommande anslutning till Science Based Targets-initiativet (SBTi).
1
SCOPE 2 SCOPE 3
Direct greenhouse gas emissions, i.e. emissions that the organisation itself is responsible for and can influence.
Indirect emissions in the form of purchased energy from external suppliers. The operations can influence Scope 2 emissions by choosing climatefriendly energy suppliers.
Indirect emissions beyond purchased energy, such as materials, transport and other external suppliers.
Part of the increased emissions in 2023 is explained by significantly more comprehensive reporting.
Goods transportation and business travel are the two areas that have the greatest impact on OEM’s emissions.
OEM has taken significant steps towards more sustainable transportation over the past year. One example is signing up for the GEODIS Sustainable Marine Fuel Insetting Solution and the introduction of sustainable fuel for sea freight. Several companies in the group have now signed up and contribute to a cleaner environment and a more sustainable shipping process.
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 direct greater focus at sustainability issues in the future by establishing more well-defined targets for the business, enabling it to take a more purposeful and hands-on approach within this area. OEM also has a number of overall activity goals aimed at increasing internal commitment and communicating information about OEM’s sustainability actions and initiatives and raising awareness of sustainability in general.
OEM CODE OF CONDUCT
Since 2013, OEM has had a mutual Code of Conduct as a platform for the group’s commitment to sustainability. This ensures that environmental, ethical and social concerns are addressed consistently within the group in the interests of greater efficiency. Transparent accountability strengthens our competitiveness and enhances our reputation as an attractive employer while promoting a sound business culture.
The Code of Conduct is based on the ten principles laid down in the UN Global Compact in the areas of human rights, labour law, the environment and anti-corruption. The Code of Conduct also lays down requirements for our suppliers. They must confirm in writing that they operate within the constraints of their national law, that they abide by anti-corruption practices, and otherwise live up to the intentions of the Code of Conduct, for example, by offering their employees a safe and sound working environment and prohibiting child labour. The objective is to continuously increase the proportion of suppliers who agree to comply with the Code of Conduct in writing, and to perform supplier audits on an ongoing basis.
CODE OF CONDUCT
HUMANS RIGHTS
1) OEM supports and respects international human rights within the company’s sp here 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 ENVIROMENT
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.
The group has an online whistleblowing system in place as an important mechanism for maintaining high ethical standards and a culture of transparency. This provides a channel for employees to report any violations or suspected wrongdoing or misconduct. The chairman of the audit committee is the designated recipient of whistleblower notifications.
Financial stability and strength is a prerequisite to invest in sustainable business development. In a world that is continuously changing, the business must continuously develop.
VISION
BUSINESS CONCEPT
”It
is OEM’s vision to be a leading technology trading group in industrial components and systems for sustainable development.”
OEM’s business concept is to offer an extensive and detailed range of industrial components and systems from leading suppliers in selected markets in Europe. OEM’s well-structured local marketing organisation and efficient logistics offer suppliers a better alternative to setting up their own sales companies. OEM provides a high level of expertise and service and markets the products according to the specific conditions of each market.
All of this creates a long-term partner for customers and suppliers, which in turn is synthesised in profitability, growth and development. OEM’s financial performance can be followed in the Annual Report.
EU-TAXONOMY
OEM adheres to the requirements of the EU 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 2023. We therefore present the share of our group sales, capital expenditures and operating expenses for the reporting period 2023, which are associated with taxonomy-eligible economic activities related to all six environmental objectives.
PROPORTION OF ECONOMIC ACTIVITIES COVERED BY THE TAXONOMY
7.2 (CCM & CCA) 3.2 (CA)
7.6 (CCM & CCA)
DEFINITIONS
Taxonomy-eligible financial activity means a financial activity that is described in the delegated acts supplementing the taxonomy regulation, irrespective of whether that financial activity meets any or all of the technical screening criteria that have been laid down.
Taxonomy-non-eligible financial activity means any financial 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.
6.5 (CCM & CCA)
Transport by motorcycles, passenger cars, and light motor vehicles
7.2 (CCM & CCA) 3.2 (CA)
7.6 (CCM & CCA)
7.7 (CCM & CCA)
and operation of
ASSESSMENT OF OUR ACTIVITIES COVERED BY THE TAXONOMY REGULATION
For environmental objectives 1 and 2, it has been assessed that more activities are applicable to OEM’s operations. The vast majority of vehicles in the OEM fleet consist of leased cars, which our sales professionals present at customer visits. For 2023, this means that activity 6.5 is eligible for reporting. Energy from own solar panel systems has long been a strategically important commitment. In recent years, work has been initiated on extending installation of these on the majority of our owned properties. For 2023, activity 7.6 will thus be eligible for reporting. 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, one property was acquired in Finland and in 2023 one property in Sweden was acquired. In the long term, both of these properties will only be used for own operations, but since they housed external tenants in the reporting year, activity 7.7 is still reportable. An additional assessment in this activity is that rented properties should also be subject to reporting.
A review has been carried out for additional reporting on environmental objectives 3-6. The assessment is that only environmental objective 4 with activity 3.2 apply to OEM’s operations. Corresponding activity is also found in environmental objectives 1 and 2, which have duly been taken into account. Needs-based refurbishment is carried out on an ongoing basis for our own properties, where the focus is on renewability and circularity. Furthermore, OEM sells large volumes of components that can be used as spare parts or replacement components. However, it is not possible to quantify with certainty an actual proportion of sold components that are used by the end customer as a spare part or as a subcomponent of a larger application. Thus, the assumption is made that activity 5.2 is not considered to apply to OEM’s operations.
OEM has no operations that have points of contact with nuclear energy and fossil gas-related activities.
Nuclear-related
1. The company conducts, finances, or is exposed to research, development, demonstration, and expansion of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
2.
3.
The company conducts, finances, or is exposed to the construction and safe operation of new nuclear facilities for the production of electricity or process heat, including district heating or industrial processes, such as hydrogen production, as well as safety upgrades of these, using the best available technology.
The company conducts, finances, or is exposed to the safe operation of existing nuclear facilities that produce electricity or process heat, including district heating or industrial processes, such as hydrogen production from nuclear energy, as well as safety upgrades of these.
Fossil gas-related activities
4. The company conducts, finances, or is exposed to the construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
5. The company conducts, finances, or is exposed to the construction, renovation, and operation of combined heat/cooling and power plants using fossil gaseous fuels.
6. The company conducts, finances, or is exposed to the construction, renovation, and operation of heat generation facilities that produce heat/cooling using fossil gaseous fuels.
TAXONOMY COMPATIBILITY
Based on analysis of environmental objectives 1-6, OEM’s assessment is that only activity 7.6 Installation, maintenance and repair of renewable energy technologies is taxonomy-aligned. In 2022, a project commenced to install solar panels on all of our owned properties and this project continued in 2023 and will continue in the coming years. Climate risk analyses are carried out on an ongoing basis as part of strategic decisions such as the expansion of solar panel installations. Through these, together with the activities reported elsewhere in this sustainability report, we believe that the criteria for minimum safeguards are met. In 2022, taxonomy-aligned CapEx amounted to SEK 2 million, where this has increased by approximately 150 per cent to SEK 5 million, and the plan is to continue investing in the coming years. The total taxonomy-aligned CapEx reported both this year and in the previous year is shown in the balance sheet item Buildings and land.
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 proportion subject to the taxonomy is defined as follows:
- Activity 6.5 is defined as being the proportion of assets to which OEM provides right-of-use.
- Activity 7.6 is defined as the proportion of owned properties where OEM provides the service.
- Activity 7.7 is defined as the proportion 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 proportion of taxonomy-eligible capital expenditure divided by total capital expenditure.
The proportion subject to the taxonomy is defined as follows:
- Activity 6.5 is defined as being the proportion of assets to which OEM provides right-of-use.
- Activity 7.6 is defined as the proportion of owned properties where OEM provides the service.
- Activity 7.7 is defined as the proportion 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 are reported in Note 13 in the Annual Report.
OPERATING EXPENDITURE
The proportion of taxonomy-eligible economic activities in our total operating expenditure has been calculated as the share of the taxonomy-eligible operating expenditure divided by total operating expenditure.
The proportion subject to the taxonomy is defined as follows:
- Activity 6.5 is defined as being the proportion of assets to which OEM provides right-of-use.
- Activity 7.6 is defined as the proportion of owned properties where OEM provides the service.
- Activity 7.7 is defined as the proportion of owned properties that also have external tenants.
Total operating costs refers to direct non-capitalised costs that relate to building renovation measures, short-term 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.
PROPORTION OF ECONOMIC
Auditor’s report on the statutory sustainability report
To the general meeting of the shareholders in OEM International AB, corporate identity number 556184-6691
Engagement and responsibility
It is the board of directors who is responsible for the statutory sustainability report for the year 2023 and that it has been prepared in accordance with the Annual Accounts
The scope of the audit
Our examination has been conducted in accordance with FAR’s auditing standard RevR 12 The auditor’s opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is substantially different and less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion.
Opinion
A statutory sustainability report has been prepared.
Jönköping on the date of our digital signature
Öhrlings PricewaterhouseCoopers AB
Frida Wengbrad Authorised Public Accountant
OEM INTERNATIONAL
Box 1009, Förrådsvägen 2 573 28 TRANÅS, Sverige
Tel +46-75-242 40 00
E-post info@oem.se
Webb www.oem.se
OEM AUTOMATIC AB
Box 1011, Dalagatan 4 573 28 TRANÅS, Sverige
Tel +46-75-242 41 00
E-post info@oemautomatic.se
Webb www.oemautomatic.se
OEM MOTOR AB
Box 1011, Fredriksbergsgatan 2 573 28 TRANÅS, Sverige
Tel +46-75-242 44 00
E-post info@oemmotor.se
Webb www.oemmotor.se
TELFA AB
Box 1011, Fredriksbergsgatan 2 573 28 TRANÅS, Sverige
Tel +46-75-24 24 450
E-post info@telfa.se
Webb www.telfa.se
OEM AUTOMATIC (SHANGHAI) CO., LTD
Room 117, Building 8
Shanghai Zhongtian Science & Technology Business Park, 787 KangQiao Rd
SHANGHAI 201315, P.R. of China
Tel +86-21-3331 1200
E-post info@oemautomatic.cn
Webb www.oemautomatic.cn
OEM AUTOMATIC FI
Box 9, 20101 TURKU
Fiskarsinkatu 3, 20750 TURKU, Finland
Tel +358-207 499 499 E-post info@oem.fi Webb www.oem.fi
OEM AUTOMATIC AS
Postboks 2144 STRØMSØ Bjørnstjerne Bjørnsonsgate 110 3003 DRAMMEN, Norge
Tel +47-32 21 05 05
E-post post@oem.no
Webb www.oem.no
OEM AUTOMATIC KLITSØ
A/S
Engholm Parkvej 4
3450 ALLERØD, Danmark
Tel +45-70 10 64 00
E-post info@oemklitso.dk
Webb www.oemklitso.dk
SVENSKA BATTERIPOOLEN
AB
Box 1011, Fredriksbergsgatan 2
573 28 TRANÅS, Sverige
Tel +46-75-24 24 300
E-post kundsupport@batteripoolen. se Webb www.batteripoolen.se
ELEKTRO ELCO AB
Tallvägen 5
564 35 BANKERYD, Sverige
Tel +46-36-290 60 00
E-post elektro@elco.se
Webb www.elco.se
NEXA TRADING AB
Datavägen 37 B
436 32 ASKIM, Sverige
Tel +46-31-14 13 80
E-post info@nexa.se
Webb www.nexa.se
AB Ernst Hj. Rydahl
INGMAR LILJENBERGS AB
Mobilgatan 6
235 39 Vellinge, Sverige
Tel +46 40 56 22 90
E-post info@liljenberg.se
Webb www.liljenberg.se
AKKUPOJAT OY
Satakunnankatu 38
28130 PORI, Finland
Tel +358 2 631 8600
E-post akkupojat@akkupojat.fi
Web www.akkupojat.fi
OEM ELECTRONICS FI
Box 9, 20101 TURKU
Fiskarsinkatu 3, 20750 TURKU, Finland
Tel +358-207 499 499
E-post info@oem.fi
Webb www.oemelectronics.fi
OEM ELECTRONICS AB
Box 1025, Förrådsvägen 2 573 29 TRANÅS, Sverige
Tel +46-75-242 45 00
E-post: info@oemelectronics.se
Webb: www.oemelectronics.se
INTERNORDIC BEARINGS
AB
Box 105, Lerbacksgatan 3 571 22 NÄSSJÖ, Sverige
Tel +46-75-242 49 40
E-post info@internordic.com
Webb www.internordic.com
SVENSKA HELAG AB
Box 6, Dalagatan 4 573 21 TRANÅS, Sverige
Tel +46-75-242 46 00
E-post helag@helag.se
Webb www.helag.se
SVENSKA HELAG AB Boskärsgatan 23, 702 25 Örebro, Sverige
Tel +46 19 20 96 60
E-post brons@lagermetall.se
Webb www.lagermetall.se
AGOLUX AB
Box 6, Dalagatan 4 573 21 TRANÅS, Sverige
Tel +46-75-242 45 50
E-post: kundsupport@agolux.se
Webb: www.agolux.se
ATC TAPE CONVERTING AB
Box 575, Veddestavägen 17 175 26 JÄRFÄLLA, Sverige
Tel +46-8-564 708 80
E-post info@atc.se
Webb www.atc.se
AB ERNST HJ. RYDAHL
BROMSBANDFABRIK
Box 12, Brisgatan 19, 651 02 KARLSTAD, Sverige
Tel +46-10-550 94 00
E-post mail@rydahls.se
Webb www.rydahls.se
IBEC
Aartsdijkweg 111 2676 LE MAASDIJK, Nederländerna
Tel +31-174 52 51 00
E-post info@ibec.cn
Webb www.ibec.cn
RAUHEAT OY
Kirvestie 1
26510 Rauma, Finland
Tel +358 2 54 90 400
E-post rauheat@rauheat.fi
Webb www.rauheat.fi
INTERNORDIC BEARINGS
AB
Aia 8 80010 PÄRNU, Estland
Tel +372-5059 849
E-post info@oem.ee
Webb www.oem.ee
AGOLUX AB Vilandes 3-3 1010 RIGA, Lettland
Tel +372-5295 114
E-post info@oemautomatic.lv
Webb www.oemautomatic.lv
OEM AUTOMATIC UAB
Raudondvario str. 101, 47184 KAUNAS, Litauen
Tel +370-64015 878
E-post info@oem.lt
Webb www.oem.lt
OEM AUTOMATIC LTD
Whiteacres Cambridge Road
Whetstone LEICESTER LE8 6ZG
England
Tel +44-116 284 99 00
E-post information@uk.oem.se
Webb www.oem.co.uk
ZOEDALE LTD
Priory Business Park, Stannard Way
Bedford MK44 3 WG, England
Tel +44-1234 83 28 32
E-post enquiries@zoedale.co.uk
Webb www.zoedale.co.uk
DEMESNE ELECTRICAL
SALES
The Square Industrial Complex
Tallaght, Dublin 24, D24 ED71, Ireland
Tel +353 1-4047777
E-post sales@demesne.ie
Webb www.demesne.ie
Publication year: 2024
OEM AUTOMATIC SP. Z O.O. ul. Działkowa 121A
02-234 WARSZAWA, Polen
Tel +48-22-863 27 22
E-post info@pl.oem.se
Webb www.oemautomatic.pl
OEM ELECTRONICS PL ul. Działkowa 121A, 02-234 WARSZAWA, Polen
Tel +48-22-863 27 22
E-post info@pl.oem.se
Webb www.oemelectronics.pl
OEM AUTOMATIC SPOL. S R.O. Prazska 239, 250 66 ZDIBY, Tjeckien
Tel +42-0-241 484 940
E-post info@oem-automatic.cz
Webb www.oemautomatic.cz
OEM AUTOMATIC, S.R.O. Bratislavska 8356, 917 01 TRNAVA, Slovakien
Tel +421-33-2400-160
E-post info@oem-automatic.sk Webb www.oemautomatic.sk
OEM AUTOMATIC KFT. P.O. Box: 111, Gyár u. 2 2058 BUDAÖRS, Ungern
Tel +36-23-880 895
E-post info@oemautomatic.hu Webb www.oemautomatic.hu