Elektroskandia Sverige sustainability report 2017

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Contents

Elektroskandia Sverige sustainability report 2017 1

The logistics centre of the future 3

The year in brief 4

Company presentation 5

Materiality and materiality analysis 6

Strategy, management and follow-up 8

Organisation 9

Stakeholders and stakeholder dialogue 10

Finance and business ethics 12

Business ethics 14

Sustainable products and services 16

Energy-smart 17

Annual customer satisfaction survey 18

A chain is only as strong as its weakest link 19

Our environmental work is ongoing 20

Cylinda 22

Environmental impact of our business 23

Energy-efficient lighting that boosts well-being 25

Our employees 27

Corporate Social Responsibility/Commitment 32

About the report 34

GRI-index 35

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Statement from the CEO: The logistics centre of the future 2017 was the year in which we completed our new logistics centre, a place where we will have room to grow and accommodate the future needs of our customers, suppliers and staff. This was an historic year for us at Elektroskandia.

In 2017, we completed work on our new logistics centre in Örebro, where we placed great emphasis on getting the organisation and processes in place. It was a challenging, but enjoyable year, and we have put one of our key values – team spirit – to the test. We officially opened our new logistics centre in September!

Our new logistics centre is a modern facility with a high level of automation and a number of renewed and remodelled processes. We are proud of all areas of the pro-perty, which has been has been given the environmental building rating “Silver”. It feels good to know that the building maintains such a high standard, which benefits the environment both indoors and out. We have also capitalised on renewable energy through the solar panel installation on the property.

We maintained our focus on sustainable sources of energy such as charging stations and solar panels. With regard to the latter, we entered into a partnership with a supplier whereby we will work together to prepare a range that suits our customers.

Over the past year, Elektroskandia, Cebe and Cylinda all launched apps. Elektroskandia and Cylinda have also developed new websites. In addition, we introduced con-figurators in consultation with our suppliers. This is a tool developed to make it easier for our customers to choose the right products to meet their needs. Development of

our digital channels has a key role to play in our strategy. We want it to be simple to place orders, follow orders and view stock availability.

On 1 July, a new tax was introduced on chemicals in some electronic goods so as to reduce the incidence, spread and exposure of hazardous fire retardants. The objective of the tax is to favour the manufacture and use of alternatives that are gentler on health and the environment. We are “approved warehousers” according to the Swedish Tax Agency. A step in the right direction for the industry!

Over the past year, we continued the roll-out of CPR-approved cables (see p. 16 for details). In collaboration with our suppliers, we have reviewed and updated the range. This was an important decision targeted at boos-ting demand for sustainable products.

The market has changed, which has naturally affected us. Margins are under pressure, and competition is becoming tougher. Our values are therefore more important now than ever before. I am looking forward to a 2018 where we make full use of our new logistics centre and become even more efficient. It is also sure to be a year where we can provide our customers with even more innovative and sustainable solutions, and supply them with the best service and range.

Anders Nordlöw, CEO

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The year in briefJanuary

• We launch the new Elektroskandia mobile app

• Industry kick-off

February

• Supplier meet – ELKO named “Supplier of the Year, 2016”

• Reorganisation in Logistics

• Finance reorganised to put a more efficient process in place

• Our new website – elektroskandia.se – comes online

March

• We open the doors to our new logistics centre

• First incoming delivery to Lindvallsgatan

• Telecoms Day 2017

April

• Rickard Dittlau takes up the position of EVP Sales

• Michael Almqvist takes up the position of EVP Markets

• Cylinda’s new website launched

May

• Elfack trade fair

• Elektroskandia participates in Sonepar’s global Energy & Sustainable Weeks

June

• Åsa Pantzar takes up the position of EVP HR

• The Business Development division is created to reinforce the sales organisation

July

• New tax on chemicals introduced

August

• Celebrations to mark the official opening of our new logistics centre for all Elektroskandia employees – around 500 took part

• Sustainability report in line with GRI G4 published for 2016

September

• Official external opening of our new central warehouse on Lindvallsgatan, with invited guests representing the county council, the Municipality of Örebro, suppliers, customers and the parent company.

October

• Record sales for a single month – “all time high”

November

• New mobile app for Cylinda launched

December

• Electricity grid division passes the billion mark

• Cylinda’s graphic guidelines and logo updated

• Telecoms division exceeds budget

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About ElektroskandiaElektroskandia – The leading electrical technology wholesaler in Sweden

We market and sell electrical equipment and systems in the fields of power/automation, tele/data/security, lighting, domestic appliances and industrial necessities. We employ 857 people at 48 locations all over Sweden.

Elektroskandia Sverige AB is a part of the Sonepar Group – one of the largest electrical wholesalers in the world. The Group currently comprises 167 companies in 44 countries and on five continents. Elektroskandia has been operating as an electrical wholesaler in Sweden since 1904. The company head office is located in Rotebro in the Municipality of Sollentuna, Sweden.

In our position of intermediate link between manufactu-rer and end customer, we are keen to be more than simply a passive link in the chain. We strive to use our systems and our experience to contribute to improving efficiency and profitability in our customers’ purchasing and sales organisations.

Our customer base is extraordinarily broad and varied. We work with everyone from owner-operated enterprises to huge multinational groups, and believe that the service level we supply should exceed expectations at both ends of the spectrum. We always strive to commission the leading suppliers in the world, and we stock more than 50,000 items.

In addition to working with the broadest range of items in the sector, we operate logistics solutions that set the standard for the industry. Logistics is the driving force behind everything we do. We make sure that the right product reaches the right customer in the right place and at the right time. Our employees work to connect 2,500 suppliers to 13,000 customers. Every day, we handle 600 tons of electrical material at our logistics centre in Örebro – which means we dispatch an order line every three seconds!

On request from our customers, we are happy to enter into in-depth working relationships where our organisation functions as a fully integrated part of their business. The objective, as ever, is to improve efficiency and thereby profitability for our customers.

We employ people with authentic technical skills combi-ned with in-depth knowledge of the products and systems we sell. They can quickly answer your questions and put the various products in context.

Elektroskandia owns the Cylinda brand, which supplies the Swedish market with a complete range of domestic appliances, where Cylinda Service is Cylinda’s service organisation and has its own team of service fitters who have received specialist training in Cylinda products.

Milestones in our history:

1904 Asea IM founded

1917 Elektroskandia established

1962 Asea IM merges with Elektroskandia

1967 Central warehouse in Örebro constructed

1991 Integration – Servicebolaget

1992 Integration – Scan Electric

1992 Acquisition – KraftGross

1994 Integration – Fläkt Belano

1997 Hagemeyer acquires Asea Skandia

1999 Logo switch – Asea Skandia becomes Elektroskandia

1999 Lager 2000 inaugurated & Establishment in China

2000 Webshop launched

2001 Sale of ventilation and discontinuation of sheet metal activities

2006 Acquisition – Cardi Belysningsspecialisten AB

2008 Sonepar acquires Elektroskandia AB and its ope-rations in China

2012 App for m-commerce launched

2015 Sonepar Nordic’s head office is moved to the Elektroskandia headquarters in Rotebro. Elektroskandia Sverige AB becomes the parent company of Alfa Elektro Sp. z o.o., Cardi Belysningsspecialisten AB, Otra Norge AS and SLO Oy – which is the parent company of SLO Eesti AS, SLO Latvia SIA and UAB SLO Lithuania

2016 New launch of Cebe as a brand

2016 Ground is broken at the site of our new logistics centre in Örebro

2017 Cylinda and Elektroskandia launch new websites and apps

2017 Official opening of our new logistics centre

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Materiality and materiality analysis For us at Elektroskandia, the concept of “sustainability” entails continuous quality work in the areas of finance, social

issues and environmental matters. Healthy profitability is, of course, a precondition for powering out business forward

in the long term. By working with social issues and environmental matters, we also improve the working relationship

with our employees and stakeholders.

“Sustainability” means different things depending on whom you ask at Elektroskandia:

• HR Businesspartner (specialists in HR issues) works to ensure low employee turnover and to minimise sick leave.

• Our logistics specialists focus on ensuring the accessibility of times so as to keep transport emissions down.

• Our sales department is most interested in setting up long-term contracts, where customers can see the benefits of consolidated deliveries – which translates into reduced environmental impact.

• Our purchasers strive to work with suppliers who live up to the ten principles of the UN Global Compact, and who abide by American requirements to refrain from using conflict minerals.

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Key sustainability issues for Elektroskandia

In order to identify Elektroskandia’s key sustainability issues, we completed our second significance analysis in the form of a workshop in August 2017. Employees from the marketing, logistics, finance, IT, quality, environment and Cylinda departments participated in the event, along with OHAS officers.

On the basis of a gross list of sustainability aspects, and taking as our starting point GRI G4, we evaluated how important each aspect is to Elektroskandia, with regard to impact/risk/opportunity. We then performed an evalu-ation from a stakeholder perspective for each and every one of our key stakeholders. The overall assessment of the stakeholders was then calculated to produce a mean value.

Figure 1 illustrates how the group evaluated the various aspects. These were discussed with the stakeholders in 2016 and 2017, when they were given the opportunity to study our sustainability reports prepared in accordance with GRI, and in connection with our work to follow up on our code of conduct for suppliers.

Compliance with laws and regulations was rated highest of all. By making sure to comply with all relevant laws and regulations, we can be sure of acting in an ethically responsible manner, and maintaining a high environ-mental standard. We consider Swedish legislation to be strong, and we are convinced that this is important to our stakeholders. Financial results were also viewed as being extremely important to all – the capacity to take the long-term view demands stable profitability.

The Elektroskandia value chain

Purchasing, sales, warehouse and support functions such as HR, finance, market communication, aftermarket and IT make up the value chain at Elektroskandia. We have identified great opportunities to influence all these links in the chain.

We work with around five transport companies, with whom we carry out annual contract negotiations. Transport emissions constitute a key impact area, which is why these values are reported to us.

We supply customers in the construction industry – in the form of large and small companies of electricians – as well as national and local government organisations and players in the fields of industry, construction and proper-ty; and, of course, resellers and their customers. We take responsibility through good customer communication; we suggest options in the form of actively sustainable products, but we always respect our customers’ decisions and make sure to stock our customers’ preferences.

The group determined that we can apply the greatest influence to our own processes, and to our suppliers.

For details of how we influence our suppliers, see Section 10: Sustainable products and services.

Figure 1: The work group assessment from the workshop held on 29 August 2017

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Strategy, management and follow-upFor us at Elektroskandia, “sustainability” encompasses financial, social and environmental dimensions. Profitability

is, of course, essential to running our business in the long term, and we can be sure of a better working relationship

with our stakeholders if we show consideration for social and environmental issues.

Sustainability work at Elektroskandia is built on the following cornerstones:

• Our vision, which lays out the company’s long-term strategic direction.

• Our business concept, which explains what we do.

• Our environmental and quality work, which has been under way since 1995.

• Our environmental and quality goals are adjusted following assessment at least once a year. In addition, we follow up on them every month through the corporate management result meetings, and in the department that actually set the target.

• Environmental goals are defined on the basis of an environmental report. The most recent version was prepared in spring 2016. Our environmental and quality policy was reformulated in 2016 as an actual sustainability policy.

• The values we identified, discussed and formulated in writing in 2011–13, and which we all return to in our everyday work, are: customer focus, the will to lead and to win, entrepreneurship, team spirit and taking the long-term view.

• The first edition of our code of conduct for employees was completed in 2013. The code is reviewed and discussed every year.

• Policy for sustainability, the environment, quality and safety.

• Ongoing dialogue with our owners, customers, suppliers and employees with the purpose of continuing to develop in the field of sustainability.

• Long-term goals for 2017–2021 along with the associated strategy and the budgeted targets for the year.

The executive management of Elektroskandia has set out the company’s business policy. Measurable goals for the business have been specified and are described in other sections.

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Every autumn, the management team draws up a business plan for the coming year. The plan forms part of the company strategy and covers a period of five years. This work includes discussing the most significant sustainabi-lity issues and setting up relevant goals. The management team meets regularly to follow up on goals and to agree on corrective measures. Each department follows up on the goals and strategies that have been agreed within its respective area.

The executive management meets twice a year; this group is made up of all business managers (approx. 50 mana-gers). These meetings play a significant role in deploying the long-term goals.

All work processes, routines, checklists and instructions necessary to drive Elektroskandia operations towards the fulfilment of business plans and company policy are documented or referred to in our business system.

The principal aim of the Elektroskandia business system is to meet requirements from customers, public authori-ties, owners, suppliers and employees with regard to the production and delivery of our products and services, and to the management of the business.

A secondary aim of the business system is to facilitate management of the business such that all processes run more flexibly, and that they develop on an ongoing basis.

On creating the Elektroskandia business system, we also chose to focus on aspects of the external environment, and to ensure that internal OHAS risks are dealt with systematically.

The Elektroskandia business system is certified in accor-dance with the ISO 9001:2008 and ISO 14001:2004

standards.

The business system is examined annually through inter-nal audits. In 2017, the company’s internal organisation for quality and environmental audits worked with the following issues:

• Sustainability work: Do you know where to find the Elektroskandia sustainability report?

• Are you familiar with Elektroskandia’s goals and values?

• Familiarity with copyright, IT security and telephone policy

Changes to legislation and other decisions from au-thorities are monitored centrally by our quality and environment organisation. The respective departments are informed as and when necessary. Follow-up on com-pliance with legislation is performed in connection with the internal audits.

The management team assesses and evaluates the efficien-cy and applicability of the business system on an annual basis. In all change work, we show consideration for the precautionary principle as stated in Article 15 of the Rio Declaration (http://www.gdrc.org/u-gov/precaution-7.html). Our ambition is to avoid negative environmental impact by forecasting our actions and making adjustments wherever possible.

Elektroskandia participates actively in sustainability work through our membership of the following sector organi-sations: SEG, EHL, LJUSA, The Association of Swedish Advertisers and Power Circle. We are also affiliated with FTI, REPA and the El-Kretsen association.

The diagram illustrates the overarching organisation of the company, as well as the units represented in the corporate management.

Organisation

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Stakeholders and stakeholder dialogue Attentiveness to the needs and opinions of our stakeholders is crucial to Elektroskandia’s business. That is why it is

only natural for us to maintain an ongoing dialogue with our most important stakeholder groups. During a workshop

held in August 2017, we established that the four key stakeholders and two groups which are not classed as key sta-

keholders – but who are considered more important than others identified in 2015 and 2016 – are still the most

important. Our key stakeholder categories are the stakeholder groups on which we are considered to have the greatest

influence and/or those who are most strongly affected by Elektroskandia’s business.

Our four key stakeholder categories are:

• Owners

• Customers

• Suppliers

• Employees

Two other stakeholder groups we consider to constitute an intermediate layer (i.e. not key stakeholders per se, but more important than others) are:

• Trade union organisations – in our case, primarily the Swedish unions Unionen and HAF.

• Sector organisations (SEG and EHL, El-Kretsen).

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Stakeholder Dialogue opportunity Stakeholder’s expectations on us

Customer Our sales staff in customer meeting

Annual customer satisfaction survey

Dialogue in stores

Breakfast meetings

Right sustainable product

Sustainable deliveries

Right price at the right place and at the right time

Suppliers Market department meets suppliers in negotiations

Supplier follow-up meeting

Annual supplier satisfaction survey

Annual supplier get-together

In 2017, we have:

Informed suppliers about our new code of condu-ct, and they have signed it to confirm compliance

Encouraged suppliers to carry out a gap analysis

Performed risk analysis

Selected a supplier and conducted an audit

Launched the work to track conflict minerals

Clear picture of requirements before con-tract negotiations

Good dialogue and follow-up on require-ments

Information about the market conditions

Owners Elektroskandia is a wholly owned subsidiary of the French Sonepar Group

We continuously keep our owners informed of the company’s intentions

We maintain an ongoing dialogue with our sister companies – in Germany, for example – that are working on sustainability issues

Four board meetings per year

Dialogue in working groups

Executive meetings

MS Yammer

Shared our sustainability work by presenting our report in line with GRI in English

Long-term, stable returns through careful use of resources (Society, environment and employees)

Employees Four business meetings in 2017 in the working group

At least three separate follow-up meetings with managers, one long and two short

Employee satisfaction survey (not performed in 2017)

Responsible behaviour by the employer:

Good terms of employment and work environment

Stable, long-term employer

Trade union organisations

Collaboration meetings in the form of a central committee, where union representatives meet the company management – over and above Co-Determination Act (MBL) negotiations and other information meetings

Good dialogue (otherwise the same as for employees)

Sector organi-sations

Four meetings per year at CEO level

Other meetings at other levels within the company

Good dialogue, and being a role model regarding sustainability issues

We will be continuing our dialogue with our key stakeholders in 2018. A key aspect of this is to provide them with access to this report, and to discuss our – and their – commitment in these issues.

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Finance and business ethicsFinancial aspects Why are they so significant to us?

In order to remain competitive over time, and to ensure our survival, we need to build up reliable profitability. We need to continue instilling confidence so that our customers and suppliers view us as their preferred choice. We strive to use systems and authentic experience to help boost efficiency and profitability in both our own and our customers’ purchasing and sales organisations. We thus function as a key bridge between manufacturer and end user, and our ambition is to be more than simply another passive link in a chain.

How do we handle them?

In 2017, we focused on improving customer value and increasing efficiency. These are both important to our capacity to accommodate our customers’ altered behavio-ur while maintaining stability and profitability. We have also been working towards other goals such as assuring our position, reinforcing the integration of sustainability considerations, and increasing skills transfer through greater internal mobility. We have continued to invest in accessibility, transparency and quality. It is important to us that we enable customers to make informed decisions and to understand our products. These are factors that inevitably boost customer value.

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Financial targets 2015 Actual

2016 Actual

2017

Budget

2017 Actual

Profit 195,066 409,704 355,992 292,795

Operating profit 278,766 294,029 249,028 143,125

Directly generated financial value

Earnings (net sales and sales of assets) 5,954,223 5,800,571 6,023,311 6,048,285

Distributed financial value

Operating expenses (payments to suppliers of pro-ducts and services)

-5,526,373 -5,500,969 -5,748,209 -5,922,228

Salaries and remuneration (as well as pensions, insu-rance policies, company vehicles, corporate healthcare, etc. HR-related costs)

-555,544 -573,165 -607,617 -622,682

Payments to financiers (all financial payments, interest payments to lenders)

-16,299 -8,750 -11,800 -10,802

Payments to the public sector (tax) -61,704 -67,613 -53,288 -33,734

Investments in society (gifts) -211 -208 - -280

Retained financial value

Investments, repayment of capital (investments and repayments of capital)

34 - - -

All figures in the table are in kSEK; empty fields means no budget figures at that level.

Profits, operating capital and investments are followed up monthly by the management.

Financial impact

Healthy culture for salaries and remu-neration

Remuneration, Elektroskandia AR Note 3

Social commitment

Financial stability Profit

Operating capital

Key figures

AR page 8

AR page 8

AR page 2

Indirect financial impact

Sustainability integrated into internal processes

ISO certification

The overview above states where information not included in the overview itself can be found. For example, “AR Note 3” indicates that this information is presented in our annual report as submitted to the Swedish Companies Registration Office.

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Business ethicsEthical business is a precondition for good relations between Elektroskandia and our partners. Our ambition is to be

a role model in these areas as well on our market.

We have taken Swedish legislation as the basis for our work in the field of business ethics and corruption. The company’s values and code of conduct are the building blocks in this work. For example, the code of conduct for employees states that any conflicts of interest must be reported without delay so that the employee(s) in ques-tion can obtain help in dealing with them. All managers and employees in the sales and marketing organisation received training in the code of conduct in 2013. All new employees are required to familiarise themselves with the code of conduct when they join the company. Sponsorship and charity work are run exclusively from the central office so as to eliminate the risk of bribery.

We believe that the biggest risk is lack of knowledge among our employees and partners. Sales staff, employees

of the marketing organisation and managers have been identified as being more vulnerable to the risk of corrup-tion than others. Instruction in working with the code of conduct has therefore been targeted in particular at these groups. In 2017, all managers were informed about the work that is not being carried out to reinforce our anti-corruption work even further. The management team received training from the Group’s anti-corruption expert in the spring of 2015. Both the Board of Directors and the management team have also been given instruction in the parent company’s – Sonepar’s – policy and procedures with regard to combating corruption. Everyone who has asked for information about Elektroskandia’s policies and procedures for combating corruption has been given this information.

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The table below shows which groups have been informed about the code of conduct.

Staff categoryApprox. number

2017 % Informed about policy

Sales 430 100%

HR managing func-tion, other

30 100%

Other 320 50%

Total 780 82.5%

Checks on compliance

Elektroskandia’s internal quality and environment audi-tors performed audits and simultaneously checked com-pliance with the code of conduct. No incidences of non-compliance with regard to business ethics or anti-cor-ruption were noted. See the table below for the number of audits for the years 2015–17.

2015 2016 2017

Number of audits performed

65 53 49

SO5 – No confirmed incidents of corruption and measures adopted

No confirmed incidents of corruption were recorded in 2017. Undesirable behaviour that limits competition is described in the code of conduct.

Reports of irregularities (complaints)

The code of conduct informs employees of how they can call attention to suspicion of irregularities, and ma-kes it clear that they will not be subject to reprisals for doing so. During the past year, our parent company has introduced a system for improving the whistleblowing process for our employees. Other stakeholders can report irregularities directly to their contact, to the company management or via the company’s general email address: info@elektroskandia.se

No complaints concerning societal impact (local com-munity), the environment, human rights or employment conditions were received by Elektroskandia in 2017.

Integrity of customers and suppliers

No confirmed complaints concerning breaches of custo-mer integrity were registered. To ensure that customer and supplier data are handled with integrity, these data are processed by a centralised group. Customer data are dealt with by the sales support organisation, whose members have received special training in how to regis-ter and remove this information. The same procedures are followed with regard to supplier information for the purchasing organisation.

Compliance with laws and regulations

Elektroskandia has not identified any breaches of laws or regulations in 2017.

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Sustainable products and servicesThe work to select products and services is one of the primary processes at Elektroskandia.

We sell around 200,000 different items. These include a great many energy-efficient products, as well as a handful of items that are hazardous to health and/or the environ-ment. Our marketing department is aware that certain products contain hazardous substances – and possesses up-to-date knowledge about this – and strives actively to suggest products with a lower negative impact were pos-sible. Our EVP Marketing, who is also a member of the corporate management team, follows up on the business continuously, backed by the various market and product managers. A number of key figures per product area have been tracked to measure development in supplier perfor-mance. Examples of these key figures are market share, sales compared to budget and previous year, stock value, turnover speed and level of availability. As our logistics centre has been relocated, the key figures for 2017 were less healthy than those for the previous year, especially with regard to the level of availability. We are well aware of this situation and are working actively to rectify it.

Over the course of 2017, we at Elektroskandia have con-tinued our work to disseminate our code of conduct to our suppliers. We held five sustainability audits on site at our suppliers during the past year, and now have more than 400 signed agreements.

Environmental impact from products and services

Products that contain substances hazardous to health and/or the environment are identified by the product manager as soon as they are included in our range. Examples of such products are adhesives and sprays. When it comes to products of this kind, we provide customers who request them with product safety sheets, which the sales staff print out and attach to the product in question. All sales staff are trained in handling these products, and their knowledge is checked regularly by the company’s internal quality and environment auditors.

We have not been informed of any accidents caused by products that we have delivered in 2017.

We also do the following to contribute to a sustainable environment:

• Offer customers mats to prevent leakage from stocks of poles.

• Offer unpacking and pre-installation, thus promoting sorting at source and helping reduce waste in the field.

• We have reduced the use of resin splices that contain isocyanates.

• Over the past year, we have expanded our range of solar cells and e-mobility items (charging stations for electric vehicles).

As from 1 July 2017, all flame retardant cables must be CE-labelled in accordance with the new fire proof classes known as CPR (Construction Product Regulation). The new system is part of the EU’s construction product regulation, and has been prepared to ensure reliable in-formation throughout the EU. This means that as from 1 July 2017, all flame retardant electrical, signal and communication cables must be CE-labelled and tested to ensure they meet the new fire requirements.

A major benefit of these cables is that they are halo-gen-free, which means that in the event of a fire, the smoke will be light and less toxic, which would naturally facilitate evacuation. Nor do the cables generate any corrosive hydrochloric acid, which destroys electronic equipment. Finally, they contain no phthalates or dioxins, which are hazardous both to health and to the environ-ment. Simply put: cleaner cables.

Working closely with our suppliers, Elektroskandia has ac-tively informed customers at an early stage about the new requirements, and has actively phased out non-CPR-la-belled cables, replacing them with CPR-labelled cables.

Poles and guy anchors have long been impregnated with creosote to ensure a protracted service life. Elektroskandia offers customers other options in concrete, sheet metal or recycled plastic.

Working closely with Vattenfall, Elektroskandia has its range with options to creosote-impregnated poles, and now stocks poles impregnated with an agent containing copper, salt and boron. The partnership with Vattenfall also includes maintaining a certain level of stock for improved accessibility.

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For customers who still use creosote poles for their aerial wires, we offer a service that involves our laying out textile matting under the stocks of poles on delivery. This matting prevents any surplus oil running off into the surrounding soil, but allows water to pass through.

Energy-efficient lighting solutions.

Elektroskandia is a member company of the Swedish Belysningsbranchen (Lighting Industry) association, and we work actively at both company and sector level to come up with smart lighting solutions.

Correct lighting minimises environmental impact through efficient energy use. The cleanest power does not come from natural gas or biofuel – and not even from wind

power or solar cells. The cleanest kilowatt hour is the one that does not need to be generated. The reason for this is simple: a lighting installation that is 10–15 years old often uses five times as much energy as a new installation. It is the extremely rapid technological development in the field of lighting, especially in the form of LED technology, that is opening the door to these environmental savings. However, there are still a lot of old systems in operation, which generate significant and unnecessary impact on the environment.

Today, the majority of the lighting solutions distributed by Elektroskandia are LED lighting with adjustable power supply, and our light designers recommend optimal ligh-ting with appropriate control defined by presence and level of daylight.

Energy-smartAs the leading electrical technology wholesaler in Sweden, we work constantly and purposefully to do our utmost to create conditions that allow our customers to make the best deals possible. We do so by continuously improving our range and simplifying the handling of all items, etc. At the same time, we are keen to reduce environmental impact. The “Energy-smart” concept links business be-nefits with unswerving focus on sustainability.

Energy-smart has to do with providing products, package solutions and smart logistics solutions. It is an approach to business that means a win for everyone involved. It makes

things easier for you, as a customer, if you can always find a more sustainable option – one that also lets you save money through reduced electricity expenses, for example.

Energy-smart is our company’s approach to fo-cusing on sustainability in a broader perspective, which is something we are convinced everyone must do. For additional information (in Swedish), visit www.energismart.elektroskandia.se

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Annual customer satisfaction surveyForm of survey

We carry out an annual customer survey through telephone interviews. We have been conducting this survey for more than ten years, and have thus built up a level of continuity and history for the questions, where we ask customers to rate Elektroskandia on a scale of 1–5, comparing us with our competitors on the market.

Selection

We at Elektroskandia have supplied our partner IFE Market & Management AB with customer data con-taining information such as name of company, name of person and turnover figures. The selection has then been made on a random basis among the customers.

Number interviewed

IFE has interviewed a total of 600 customers divided as follows:

Electrical installation 400 (50 x 8 regions)

Industry 100

Electricity grid 50

Telekom Sweden 50

Incidental questions 2017

Because we moved our logistics centre to a completely new facility in Örebro this year, we have chosen to include two supplementary questions concerning this move to establish how it affects our customers.

SCI

Some questions are too general for Elektroskandia and difficult for the regions to influence. Other questions are more-or-less directly linked to the respective regions. The questions linked to specific regions lay the foundations

for the SCI for the region in question.

2017 2016 2015 2014 2013 2012

SCI Total 3.90 3.95 3.87 3.89 3.84 3.83

Region

1. Stockholm 3.90 3.93 4.01 4.06 3.82 3.80

2. Småland 4.00 3.79 3.99 4.16 3.68 3.84

3. Mid 4.07 3.96 3.97 3.97 3.98 3.98

4. Centre 3.59 3.81 3.92 3.90 3.91 3.79

5. East 4.08 3.81 3.91 3.89 3.78 3.84

6. North 3.94 3.89 3.91 3.64 3.80 3.67

7. West 3.81 3.77 3.79 3.91 3.83 3.96

9. South 3.78 3.82 3.66 3.86 3.82 3.81

Rating scale

Excellent > 4.05

Very good 3.85–4.04

Good 3.65–3.84

Satisfactory 3.45–3.64

Unsatisfactory < 3.44

Goal

The goal is for us to improve every year, and to exceed our own SCI.

Improvement measures

All employees within the sales organisation are to study the results, and improvement measures are prepared for each working group.

We have identified weaknesses in the communication, where not everyone who needs to study the information has received it. This is one area we will be looking to improve over the coming year.

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A chain is only as strong as its weakest linkThe tired old cliché is actually remarkably apt in this context. Because we will not succeed in changing much unless every link of what we commonly call “the value chain” is committed to joining in and adopting our ideas. This demands teamwork. It is not enough for us simply to say that we supply the market with more energy-efficient products and services. We actually have to do so, and that demands a great deal of work on our part – work that we are more than happy to take on.

Suppliers

Those manufacturers and suppliers we choose to work with must also consider this an important initiative that they are keen to support. Simply put, they need to deliver the right type of products – products that are in demand on the market, and which simultaneously live up to the stringent requirements we have set out in our code of conduct. We set the same high requirements on our suppliers as we do on ourselves, and which we then pass on to the market.

Distributors

The distributors we commission must naturally also work actively with efficiency and environmental issues so that the transports out to our customers generate the least possible environmental impact, taking into account the high level of service our customers require with regard to delivery times and precision.

Elektroskandia

We at Elektroskandia must, of course, shoulder the majo-rity of the burden ourselves – and we are more than happy to do so. Working closely with our customers and suppliers, we must produce the products and services the market demands. There are already a great many items available in the Energy-smart programme, and more are being added all the time. We need to be especially attentive in

this context so that we can continue to supply the items that are in high demand on the market.

You, our customer

We at Elektroskandia must market the Energy-smart concept so that you, our customer, are aware that the option exists and how simple it is to order and use the products and services in question. At the same time, we can demonstrate the financial and environmental benefits you stand to gain by making Energy-smart choices.

Your customers

Finally, your customers – the contractors and construction clients – must know that the option exists, and be aware of the benefits it offers. Both as an element in their own businesses, and with regard to how they can help end users save money.

If we manage to achieve our aims and to deliver ener-gy-efficient products that people genuinely want – and which actually save money and protect the environment – then we have succeeded. And the circle, or the value chain, is closed.

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Our environmental work is ongoingBecoming involved and taking responsibility for the environment demands smart solutions, particularly in the fields of energy efficiency and renewable energy. Energy-smart is a key initiative in this context, but it is far from our first, and will not be our last. We will continue working with these important issues, both on our own and in association with others – as we have already done for a long time. Here are some of the partnerships in which we are participating:

Product liability, environment

Elektroskandia is responsible for ensuring that all cata-logued products comply with the applicable EC directive (Machinery Directive, Low Voltage Directive, EMC Directive, RoHS Directive, WEEE Directive) and, where necessary, the applicable environmental legislation and CE labelling regulations.

Elektroskandia applies a quality management system in accordance with the ISO 9001:2008 standard, and has been certified since 11 December 1996. (Certificate no. 2006-SKM-AQ-2335 DNV 2009-06-24.)

Elektroskandia applies an environmental management system in accordance with the ISO 14001:2004 standard, and has been certified since 15 June 1998. (Certificate no. 2006-SKM-AE-1118 DNV 2009-06-24.)

Regarding environmental declarations, our suppliers are responsible for ensuring that these are available at SEG (the Swedish Electrical Wholesalers’ Federation) and online at enummersok.se. The environmental declara-tions are available for download via our website at www.elektroskandia.se under the header for the respective item.

RoHS: As of 1 July 2006, Directive 2002/95/EC banned the use of mercury, cadmium, lead, hexavalent chromium and the flame retardant substances PBB and PBDE in newly manufactured electrical and electronic products.

Energy declarations

The Cylinda range complies with the EU energy label-ling regulations, which is covered by the ECO Design Directive stating that labels must be displayed on all the following items in stores: refrigerators, freezers, freezer boxes, washing machines, dryers, dishwashers, cooking ranges, ovens and fans. The declaration states the product’s energy class and is intended to help custo-mers compare products from the perspective of energy consumption.

The REPA register and El-Kretsen

REPA is the business community’s solution for manu-facturer’s liability with regard to packaging made of plastic, metal, paper/card and corrugated card. For details see www.repa.se.

El-Kretsen is the business community’s service company, tasked with ensuring compliance with manufacturer’s liability in the field of electrical and electronic products, as well as batteries. They organisation is intended for com-panies that make or sell products covered by the relevant legislative rules. For details see www.el-kretsen.se/english/

Power Circle

Power Circle is the stakeholder organisation for the electrical power sector, an association for future issues.

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The organisation works to highlight the role of electri-city as a facilitator for sustainable societal development. With a broad network, and in close consultation with the partner companies, Power Circle enables dialogue and exchange, development and demonstration, as well as in-fluence through best practice and practical experience. For additional information (in Swedish), see powercircle.org.

Correct handling of products hazardous to health and the environment

Products hazardous to health and the environment must naturally be handled in such a way as to minimise the risk of negative impact, injury and damage. This is important to us, to our customers and to the environment.

We at Elektroskandia take responsibility for keeping up with the requirements pertaining to the handling of different types of material, so that our customers can feel confident that products which constitute a hazard to health and the environment are being handled correctly.

The chemical products we sell are stored in containers outside the central warehouse property.

Updated safety data sheets about the hazardous properties of the products, as well as the associated risks and applica-ble safety measures, are available to users via our website. When transporting products hazardous to health and the environment, we always comply with the applicable rules and regulations.

Requirements on suppliers

We at Elektroskandia strive to establish strong, long-term business relations and a healthy working relationship with our suppliers. The majority of our suppliers are Swedish companies that are subject to Swedish legislation, and have long since obtained quality and environmental management certification. While they have made varying amounts of pro-gress in their sustainability work, most of them have succeeded in using their input in the field of quality and environmental management work to establish a firm base from which to continue improving in the area of long-term sustainability. Our suppliers, in turn, have production facilities and subcon-tractors all over the world.

In 2015, Elektroskandia commenced work to prepare a code of conduct for our suppliers. The code describes the expecta-tions we have on our suppliers with regard to human rights, labour conditions, the environment and anti-corruption.

In 2016–17, we at Elektroskandia presented our code of conduct to our suppliers as an attachment to the prevailing contractual terms and conditions. Our suppliers have signed the documents, and we have stored them in our archives. Several of our suppliers have submitted a self-assessment to determine how well they consider themselves to be placed with regard to our stated criteria and requirements. The internal implementation work kicks off with a workshop where our market mangers with responsibility for suppliers conduct a risk assessment on our strategic suppliers. Purchases from our strategic suppliers currently account for around 80 per cent of our total volume of purchases. The objective here is to identify any shortfalls and to ensure that we focus initially on the pertinent areas so as to allow us to apply various measures to minimise the risk.

The code of conduct prepared by Elektroskandia has been added to the company’s supplier contract over the course of 2017. Elektroskandia will reserve the right to conduct unannounced inspections at the premises of suppliers who have entered into agreements with Elektroskandia, with the purpose of ensuring compliance with our code of conduct. Five audits were performed in 2017.

An evaluation template has been prepared for all suppliers, which we use to check that they have a quality management system and an environmental management system in place. Fully 93 per cent of our 116 biggest suppliers have a quality management system certified in accordance with ISO 9001, and 90 per cent of them have an environmental management system in line with the ISO 14001 standard.

Correct market communication

In no cases has Elektroskandia breached legislation per-taining to market communication, advertising or spon-sorship.

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CylindaElektroskandia sells domestic appliances under the Cylinda brand, with the products being developed and made by European OEM manufacturers. Cylinda’s five main suppliers are leading providers and manufacturers of domestic appliances under their own brand and as OEM manufacturers in Europe and in other markets around the world.

Production and sourcing are primarily performed in EU member states and Turkey. All Cylinda suppliers are obliged to comply with EU legislation and regulations with regard to production, development energy require-ments and safety. All Cylinda products are CE-labelled, demonstrating that the product in question complies with the RoHS II Directive.

Through its affiliation with the El-Kretsen association, Elektroskandia is required to live up to its manufacturer’s liability obligations with regard to the collection and processing of domestic appliances sold on the Swedish market by the company.

Elektroskandia similarly demands that suppliers to Cylinda abide by the terms and conditions defined and agreed in the Elektroskandia code of conduct for supp-liers. Elektroskandia’s code of conduct encompasses all relevant UN and ILO conventions.

In 2018 the Cylinda Product & Procurement function is planning to complete a risk analysis and an audit of compliance with our code of conduct at one of our pro-duction units.

All Cylinda’s major suppliers are members of The European Committee of Domestic Equipment Manufacturers: CECED, and they abide by the guidelines that have been formulated with regard to the environment, trade and domestic appliance safety in Europe.

The European domestic appliance in dustry focuses on developing energy-efficient products, and the regulation of the classification of pro ducts has, in most areas, taken place through the EU’s Ecodesign Directive pertaining to domestic appliances.

In 2017, the European Parliament, the European Council and the European Commission agreed to redefine ener-gy labelling within the EU, with the new system to be introduced in 2019. The current labelling with the “A+” to “A+++” categories will be replaced by a scale from A to G, with the intention of making it easier for consu-mers to make conscious, energy-smart choices. Cylinda is counting on the new system being introduced towards the end of 2019, when it is expected to help increase the number of energy-efficient domestic appliances on the Swedish market.

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Environmental impact of our business Smart energy saving – taken as read for us

We at Elektroskandia take responsibility for minimising our electricity consumption, and ensuring that we use green electricity exclusively so as to keep our environ mental im-pact to a minimum. The electricity we receive comes from hydropower (72%), wind power (18%) and biofuel (10%).

The 43,500 m2 logistics centre in Örebro accounts for the greatest proportion of energy consumption within the company, and has been rated energy class B. In April

2017, we moved into our new logistics centre, which has been given the environmental building rating “Silver”. The logistics centre features geothermal heating and solar panels, as well as parking spaces with charging stations for electric vehicles. These new measures are designed to reduce energy consumption and thus environmental impact.

We fit our newly established stores with eco-friendly ventilation systems, and we use only LED light fittings. This provides us with an energy saving of 65 per cent compared to the light fittings we used previously.

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Mapping environmental aspects

We map environmental aspects every four years – most recently in 2016. The mapping process cove-red our logistics centre in Örebro, our head offi-ce in Rotebro and the eight other properties with the highest volumes.

The decisions about which environmental aspects to prioritise were taken by the company management.

The environmental aspects mapped are assessed on five criteria:

• Laws and regulations

• Financial criteria

• Quantities

• Environmental criteria

• Stakeholders

The environmental aspects are assessed as follows:

• 9–12 points is significant

• 7–8 points is less significant

• 4–6 points is negligible from an environmental perspective

The assessment of environmental aspects was performed by a sustainability group appointed by the Elektroskandia management after consumption figures were collected from several different suppliers.

The list below presents the significant environmental aspects for Elektroskandia Sverige AB.

Area Score AspectSorting at sourceCorrugated card & Cardboard 9 SignificantHard plastic 9 SignificantOffice paper 9 SignificantDomestic appliances 9 SignificantCombustible 9 Significant

Energy consumptionElectricity consumption 10 SignificantDistrict heating 10 Significant

TransportGoods transport 10 SignificantCompany cars & Service vehic-les

10 Significant

Internal transport, die-sel-powered

10 Significant

Chemical itemsChemical items in the business 9 Significant

ForkliftsWheel loaders 11 Significant

Forklifts, diesel-powered 11 Significant

We are happy to share some other en-couraging figures:

Electricity consumption at our logistics centre in Örebro has dropped from 3,505,444 kWh in 2013 to 2,348,342 kWh in 2017.

As the new logistics centre was officially brought onli-ne in April 2017, we will be establishing a baseline in 2018 and using it subsequently to set targets for energy consumption.

In the period April–September, 1,914,370 kWh of power was consumed at the new logistics centre.

District heating consumption at the logistics centre in Örebro decreased from 7,102,428 kWh/year in 2011 to 3,220,277 kWh/year in 2017. In 2017, consumption fell considerably due to the fact that the temperature at the warehouse was minimised progressively after the move to the new logistics centre.

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Energy-efficient lighting that boosts well-beingAs the leading electrical technology wholesaler in Sweden, we are naturally keen to lead by example. At our new lo-gistics centre in Örebro, we have installed state-of-the-art technology to save energy and ensure pleasant lighting. All light fittings and sensors are controlled through the DALI system. In the office areas, there are a total of 1,964 LED panels and 365 sensors to detect presence and run daylight compensation. Daylight compensation entails adjusting lighting levels depending on how much light is admitted through the windows so as to save energy. The lights are dimmed and switched off in areas where no people are present. The warehouse, which is the very heart of our business, features 794 light fittings in a total area of 33,600 m2. Only 272 fittings are used to cover the main area of 29,300 m2 from a height of 12 metres. They provide 250 lux, which is more than sufficient for the business we run. The warehouse as a whole is covered by 129 presence sensors, divided into 40 zones where the light is dimmed in aisles where no people are present. Conscious choices in the form of steering and sensors, have enabled us to optimise our energy consumption.

Chemicals in our business

The chemicals used in our business are primarily to be found in lubricants, detergents and spray paints. They are used to only a limited extent and in small amounts and we naturally comply with all the applicable legislative requirements.

Travel

We are working continuously to minimise travel when other options such as video- or Skype conferencing are

available. Our travel policy promotes choosing the most environmentally friendly travel option – i.e. taking a train rather than a plane if possible. There is also a car pooling app that employees can use to register their travel in advance with a view to sharing transport.

With a few exceptions, the fleet of 274 company cars is made up of Volvo V70 and V90 models. Over the cour-se of 2017, the fleet covered 3,190,170 km, generating emissions of 542,779 kg of CO

2.

Cylinda has 31 Renault Traffic vans it uses as service vehicles. Over the past year, they have driven a total of 760,000 km to handle service tasks on domestic applian-ces. The environmental impact from this travel amounted to 70,680 litres of diesel, with emissions of 161,150 kg of CO

2.

Transport

Our policy entails:

• Ensuring that the service vehicles we purchase have diesel engines.

• Leasing our forklifts. This allows us to replace forklifts more frequently, thus maintaining a more energy-efficient, eco-friendly fleet.

• Our forklift fleet consists of 196 electric forklifts, 13 diesel models and 7 wheel loaders. The diesel forklifts and wheel loaders consumed 83,136 litres of diesel in 2017, generating emissions of 189,550 kg of CO

2.

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We dare to set the bar high for sorting

We have set the bar high when it comes to our own sorting at source. At our logistics centre in Örebro, which gene-rates the largest volume of waste, we have the stated goal of sorting 95 per cent of our waste at source. The result for 2017 was 94.1 per cent (2016: 95.9%). The fall in percentage can be explained by the fact that we left our previous, 50-year-old central warehouse and moved into the new logistics centre. Much of the waste generated in connection with the move was combustible waste.

At Elektroskandia’s head office and the other 47 properties where we operate stores, we handled 438 tons of waste (526 tons in 2016).

During the period covered by the report, recycling waste helped us cut emissions by 247 tons of carbon dioxide (147 tons in 2016), which is the equivalent of 823 trips

in a petrol-powered car between Haparanda and Ystad in Sweden (1,682 km).

Sustainable goods transport

We also make demands on our goods carriers. For ex-ample we check the utilisation of capacity by measuring and following up on the volume of goods in the vehicle. We also require our carriers to operate an environmental management system, which we review and follow up at annual meetings. Over the course of 2017, Elektroskandia completed 650,000 shipments with a total weight of 7.3 million tons, which were transported by around 300 vehicles per day. The environmental impact from this source primarily comprises emissions of CO

2. We

require our carriers to report emission calculations on a monthly basis, and they show environmental impact in kg CO

2/ton km.

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Our employees Managing HR work

The starting point for our HR work is the Elektroskandia Employee Policy (previously called the HR policy), which comprises the value base, the strategies and targets, and the guidelines that define how Elektroskandia operates with regard to relations between employer and employees.

Another steering document regarding employees is the OHAS database, where all steering and reporting documents are stored by company location (for example: safety rounds, accidents and incidents). The company’s internal auditors review and follow up on all locations within a 2-year period. This is something we follow up on an ongoing basis. Every quarter, we follow up on these points in meetings of the safety committee, attended by representatives of the management, trades unions and safety officers.

Over the past year, we have prepared a policy to combat victimisation and harassment. All employees are expected to contribute to a positive work environment, where we show respect for one another and appreciate diversity.

Attractive workplace

Our aim is to be an attractive workplace that allows plenty of space for expression and provides opportunities for skills development. We also strive to be an innovative employer with sights fixed firmly on the future. Above all, we want our employees to feel good at work, and to have the tools they need to do their job and to develop. We have employees who have been with the company for more than 40 years, which indicates that people enjoy working for Elektroskandia.

Given that some of our skilled employees are approaching

retirement age, and as we are continuing to expand, we increasingly need to attract new employees.

The table below presents the number of people we employ, and the form of employment. The company has consciously decided not to measure the number of employees linked to collective bargaining agreements as from 2016, which is why this figure is not reported.

Staff category 2015 2016 2017

Salaried employees 555 547 575

Salaried employees, of whom on open-ended contracts

98% 99% 98%

Salaried employees, of whom on fixed-term contracts

2% 1% 2%

Employees under collective agreement (warehouse and service)

253 262 282

Of whom covered by collecti-ve bargaining agreement

71% N/A N/A

Employees under collecti-ve agreement, of whom on open-ended contracts

93% 91% 76%

Employees under collective agreement, of whom on fix-ed-term contracts

7% 7% 24%

Total employees (salaried employees and employees under collective bargaining agreements)

808 809 857

of whom, men - - 660

of whom, women - - 197

Figures from 31 December 2017, 31 December 2016 and 31 December 2015

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Employment conditions at Elektroskandia

The terms and conditions of employment for all Elektroskandia employees are regulated in part by con-tracts of employment, and in part by collective bargaining agreements with the respective union organisations – as well as by the company’s own internal job regulations. These are laid down, for example, in the employee policy, the employee manual, travel regulations and in Elektroskandia’s ground rules – in the company car policy, for instance.

In 2017, our employee turnover rate was 11.8 per cent (of which 8.4% were voluntary severances, including retirement), which represents a decrease in relation to 2016, when the figure was 13.2 per cent (of which 8.9% were voluntary severances including retirement). Our ambition is to record a turnover figure of no more than ten per cent in total in 2018. We hold exit interviews to follow up on the reasons why staff choose to leave the company, and to pick up opinions and ideas about how we can improve as an employer.

Benefits

All Elektroskandia employees are offered a wide range of benefits, including flexible working hours, employee discounts on our range, fuel discounts and paid parental leave.We also organise training programmes in various areas with a view to boosting skills development.

We provide support in the event of corporate changes, social security agreements, group life insurance and pen-sions, as well as salary top-up in the event of sick leave.

Occupational health and safety

The goal for occupational health and safety work at Elektroskandia is first and foremost to eliminate risks of

injuries and illnesses. In addition, the working environ-ment is to be developed in a direction that promotes improved productivity, quality and – of course – well-be-ing. Through management, planning and inspections, industrial injuries are to be elucidated, risks investigated and appropriate measures adopted. The employer has ultimate responsibility for occupational health and safety, and must make sure that an organisation exists to take care of OHAS issues.

The psychosocial working environment and how our employees are feeling are issues the managers follow up on through our two RAQ interviews and performance appraisals, for example. RAQ stands for “Result, Activity and Quality”. We also pick up on psychosocial health among our employees through safety rounds containing questions targeted at the area, in our risk analyses, through our quarterly follow-up meetings (company meetings), and by providing our managers with training in the field. We also have a number of safety committees with OHAS offshoots from the respective trades unions, where OHAS issues are discussed and action plans prepared.

Elektroskandia regularly performs safety rounds at all branches and warehouses. We work with risk assessments and action plans in accordance with guidelines laid down in occupational health and safety legislation. We follow up on accidents and incidents on an ongoing basis. Most ac-cidents were reported from our logistics centre in Örebro, where inattention was a contributing factor to a number of accidents and injuries, which were all minor. As regards near misses, one of the most common causes has been the discovery of items on pallet shelving that were in danger of falling. During the course of 2017, we have reported 146 near misses and 57 accidents, which is up slightly on the previous year. Accidents are reported and dealt with on an ongoing basis, but are measured annually. The reason for the increase is that we have efficiently com-municated the importance of reporting both accidents and near misses.

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Corporate healthcare

According to the Elektroskandia occupational health and safety policy, the purpose of our working relationship with corporate health centres in all locations is to access help and support in issues that have to do with occupational health and safety.

The corporate healthcare system is to assist with exper-tise in the form of OHAS engineers, physiotherapists and occupational therapists, with the aim of preventing industrial injuries as far as possible by actively creating a good working environment.

The corporate healthcare services include:

• Rehabilitation

• Health check/health profile

• Support in OHAS issues

• Ergonomics (workplace measures)

All employees are offered the chance to have a health check at the age of 45, 50, 55 and 60, where they can choose a health profile or function profile at the corporate health centre.

Our ambition is for our employees to enjoy good health, and for us as an employer to prevent workplace-related sick leave as far as we can.

We have KPIs for sick leave, which we check and follow up on an ongoing basis. The rate of sick leave in 2017 was 3.9 per cent, up from 3.6 per cent in 2016 and 3.8 per cent in 2015 (based on planned working hours). We can see that sick leave has increased, which can be attributed to an extent to the fact that the past year featured an increase in workload on account of the project to move our warehouse. By training and coaching our managers in how to work systematically with OHAS issues and in health-promoting leadership, our ambition is to reduce sick leave and minimise the number of accidents.

Corporate fitness

We operate a scheme of keep fit offers for all employees and we are also working to launch alternative health and fitness initiatives such as lectures on health and diet, and shared activities in the form of fun runs, for example. Today, we run an ergonomically responsible workplace that takes into account the needs of the individual with regard to adapting office space.

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Skills Development

Our employees and the skills they possess constitute our greatest strength. That is why we work actively with per-formance and skills development. During the past year we rolled out our HR system “Goals and Performance” for all employees. The toolkit features tools such as a development plan, goals and performance. It is an excel-lent system support for the appraisals that employees and managers hold over the course of the year.

We run three fixed performance appraisals per year, which are also salary-based. Our intention in using this method is partly to establish salaries on the basis of performance, but also to set targets that are to lay the foundations for development and for assessing the skills our employees possess and what development they are seeking.

The expected performance and goals are determined at the performance appraisal at the start of each year. We follow up on employee performance through two brief RAQ interviews during the year, where there is also time to prioritise activities and assess whether they are in line with the goals set. We measure the number of perfor-mance appraisals completed annually, but as no employee

survey was carried out in 2017, we cannot publish exact figures this year. We have, however, noted an increase in the number of performance appraisals held compared with the previous year.

In 2017, we placed great emphasis on skills development, through measures including offering a significantly larger range of training courses. The company’s onboarding process, i.e. how we induct new employees, has also been reviewed and improved so as to help new employees get off to a good start.

Diversity and equal opportunities

Through conscious work with diversity, Elektroskandia is committed to contributing to a society in which each societal group and individual is viewed as an asset. Our ambition is to reflect society, our suppliers and our customers. Our diversity work is to be a natural part of the work to reinforce Elektroskandia’s competitiveness. When recruiting, we must always strive to create working groups composed of employees of different genders, ages, group affiliations and backgrounds. We follow up on the action plan for our diversity work annually through our employee satisfaction survey.

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Elektroskandia will work to:

• Increase awareness of – and insight into – equal opportunities.

• Promote a more even distribution between women and men at all levels and within all professional disciplines at the company.

• Expand the company’s total competence by increasing the number of female managers.

• Increase understanding and knowledge regarding the benefits of mixed working groups.

• Support men and women in combining parenthood and gainful employment.

• Actively combat and prevent all forms of discrimination, harassment, and other forms of victimisation at the workplace.

• Ensure that employees’ skills are assessed when setting remuneration so as to ensure equal pay for equal work – irrespective of gender.

Elektroskandia is an electrical technology wholesaler, and our employees work in various services: sales, warehouse and even in salaried employee positions. Our sector is heavily male-dominated, and around 77 per cent of the company’s employees in 2017 are men (86% in 2016 and 81.5% in 2015). We want to attract more women to our workplace. We are striving for balance between women and men in senior executive positions which, as the table below demonstrates, are unevenly distributed today.

We measure the average pay for the different professional categories. The total pay gap between men and women is currently at 10 per cent; at salaried employee level, it is at 16 per cent, and for warehouse employees it is 5 per cent.

We will be working to identify any unfounded differences in pay between men and women through internal and ex-ternal payroll mapping, which will be taken into account in future salary reviews. There should not be differences in salaries that can be objectively viewed as discriminatory.

Employee satisfaction survey

We generally carry out an employee satisfaction survey once a year, but decided not to do so in 2017 on account of the work to move to our new logistics centre. The next survey will be conducted in 2018. We carried out an employee satisfaction survey at our new logistics centre in Örebro in 2017 with a view to highlighting issues concerning the work environment during the move.

The survey featured five subsections (leadership, work situation, health, atmosphere and working relationship, and the company in general) with 7–10 sub-questions. Both employees and contract consultants were given the opportunity to complete the survey, and we achieved a response rate of 76 per cent. The survey produced an MEI (Motivated Employee Index) of 3.3 on a scale of 1–5. On the basis of the survey, each manager has worked with his/her team to prepare an action plan with prioritised areas and activities; the action plan will be followed up on the basis of our systematic OHAS work.

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Corporate Social Responsibility/ commitmentContribute to a better world

We at Elektroskandia take responsibility for sustainability in several ways, and we are keen to give our employees the opportunity to contribute to making the world a little better. We do so, for example, through the following activities and initiatives:

We save lives.Elektroskandia has chosen to partner with the “Blood Bus” to help keep the Swedish healthcare system supplied with blood. We launched this initiative in 2000, since when the bus has visited our facilities in Örebro and Rotebro every three months.

Defibrillators for emergency aid. Every year, around 10,000 people in Sweden suffer heart attacks. Only 500 of them survive. In 2015, we installed 55 defibrillators in our sto-res and offices to ensure that help can be provided without delay in the event that someone suffers an acute heart at-tack. In 2016, Elektroskandia held a nationwide training course in CPR, and 188 people took part. Additional employees have received this training subsequently.

The defibrillators installed are Powerheart G5 models, supplied by Dafo Brand – which also supplies our fire-fighting equipment. All defibrillators are registered in

the Swedish Defibrillator Register (A national register established on the initiative of the Swedish Resuscitation Council and the Swedish Civil Defence Association, in partnership with the Swedish Heart-Lung Foundation). The register shows the location of the nearest defibrillator. The intention is to make defibrillators more accessible to the general public, and thus to improve survival rates in the event of a heart attack.

Knowledge about working life

We consider it important to teach young people about working life, which is why we are happy to receive PRAO pupils, interns and students working on exam projects. It is valuable for them to have the opportunity to gain insight into our sector, and we also believe that this type of exchange of information enriches our business.

We are happy to open our doors to people interested in gaining work experience with us; for example, we offer after-school jobs, summer jobs and piecework, which may take the form of simple assignments such as clearing up and cleaning shelving units. Of course, all young employ-ees are issued with the appropriate safety equipment.

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Sustainable partnerships

In 2017, we donated approximately SEK 280,000 in sponsorship (SEK 132,000 in 2016) to local sports asso-ciations including Karlstad IBF, Hammarby football and Kvarnsvedens GOIF Skidor.

We also sponsored the Spinalis foundation with do-mestic appliances (valued at approx. SEK 50,000) from Cylinda for its newly built kitchen where wheelchair users can prepare their own meals. The facility is located in Frösundavik, Solna. The kitchen is specially designed as all patients are wheelchair users, and the intention is to teach them how to prepare meals and use all kinds of kitchen utensils for themselves. An additional goal is to teach the patients to become good cooks so that they have something extra special in their lives. We are proud to have had the opportunity to contribute our products.

Hjältarnas hus

In May 2017, a charity gala was organised in association with the Hjältarnas hus (Heroes’ house) foundation, where Elektroskandia took part as the principal sponsor. Hjältarnas hus is a temporary home for families with children where someone is suffering from a chronic

illness. Severely ill children and their families from the four most northerly counties in Sweden are referred to Norrland University Hospital in Umeå. Some families from this region face a journey of up to 700 km to reach this hospital. This means that families often have to split up if a child falls victim to a chronic illness. Through the Hjältarnas hus opportunity, children can stay living with their loved ones during the obligatory treatment periods, irrespective of whether they are required to spend a couple of days, weeks or months in the hospital. All funds raised at the charity gala were passed on to Hjältarnas hus.

Committed employees

In Sweden, approximately one child a day is diagnosed with some form of cancer. Six years ago, 9-year-old Tilda was diagnosed with Wilms’ Tumour, which is a malignant type of kidney tumour. When she realised that she had no chance of surviving the illness herself, she set up the Tildas hjälpande gåva (Tilda’s helping gift) foundation to help other children with cancer. Tilda drew her final breath on 31 October 2011.

Cristoffer Lundberg, Regional Manager in Småland, was deeply touched by Tilda’s story. Six years ago, he therefore took the initiative to organise a recurring collection at various events held by Elektroskandia in Oskarshamn and Kalmar. For example, lotteries and auctions are organised at October trade fairs, Christmas trade fairs and trotting events, with all proceeds being donated to the Swedish Childhood Cancer Foundation.

“We can all make a contribution. Over the past six years, we have collected almost SEK 300,078. Cancer affects everyone. Every krona we collect is one step closer to the goal – to combat this illness,” says Cristoffer.

The kitchen with the new domestic appliances donated by Cylinda to Spinalis, a home for wheelchair users that is located in Solna, Sweden.

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About the reportThis report is Elektroskandia’s first report in line with GRI G4, and refers to the calendar year 2017. It covers all activities in Elektroskandia Sverige AB in Sweden. Other financial data are published in the annual report and in the auditor’s report, which is registered with the Swedish Companies Registration Office.

For a complete list of all stores in Sweden see: http://extranet.elektroskandia.se/web/es2012.nsf

Our ambition is to publish the next edition of this report in July 2019.

Please address questions and enquiries about the report to: Karen Kruger, Sustainability Manager, on +46 8 923 883 or at karen.kruger@elektroskandia.se, or to Kjell Roman, Head of Marketing Communication, on+46 8 923 763 or at kjell.roman@elektroskandia.se.

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GRI-indexStandard information

Index Information Page

Strategy and analysis, a word from the CEOG4-1 Statement from the company’s CEO 3

Organisation profileG4-3 Name of organisation 5

G4-4 Key brands, products or services 5

G4-5 Location of the organisation’s head office 5

G4-7 Ownership structure and form of enterprise 5

G4-8 Markets on which the organisation is active 5

G4-9 Size of the organisation, including number of employees, turnover, capital 27, 13

G4-10 Number of employees, per type of contract, gender, region, full-time, fixed-term contracts 27

G4-11 Number of employees covered by collective bargaining agreements 100%

G4-12 The company’s supplier chain 19

G4-13 Significant changes in 2017 regarding size, structure, ownership and value chain. No

G4-14 How the precautionary principle is applied by the company 9

G4-15 External sustainability principles and initiatives supported by the organisation 9

G4-16 Membership of associations and trade associations 9

G4-17 Units not included in the report 34

Significant aspects and limitations identifiedG4-18 Process for defining report contents 7

G4-19 Significant aspects identified 7

G4-20 Limitation of respective aspects within the organisation 7

G4-21 Limitation of respective aspects outside the organisation 7

G4-22 Effect of altered information from previous reports.

No changes concerning scope and limitations

G4-23 Changes from previous reporting period.

No changes concerning scope and limitations

Stakeholder relationsG4-24 List of stakeholder groups 10

G4-25 Identification and selection of stakeholder groups 10

G4-26 Approach to interaction with stakeholder groups 11

G4-27 Topics, questions and the organisation’s response, including reporting 11

Report profileG4-28 Report period for the information

reported 34

G4-29 Date of publication of most recent report 34

G4-30 Report cycle 34

G4-31 Contact for questions about the report contents 34

G4-32 GRI content and reference 35

G4-33 Policy for external certification 34

G4-34 Management structure 9

G4-56 Values, principles and codes of conduct 9, 19

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Specific standard information

Finance and business ethics

EC1 12

EN29 13

EN34 13

HR12 13

LA 16 13

PR8 13

SO4 13

SO5 13

SO11 13

Sustainable products and services, and customer satis-faction

EN6 15

EN27 15

LA14 19

LA32 19

PR2 13

PR3 20

PR5 14

PR6 15

PR9 15

Environmental impact of our business

EN3 21

EN6 21

EN16 21

EN23 24

EN30 26

Our employees

LA6 29

LA10 30

LA12 31

LA 13 31

Corporate Social Responsibility/Commitment

SO1 32