SUSTAINABILITY

Sustainability governance

The Board of Directors is responsible for the organisation of AddLife and for managing the affairs of the company in the best interests of the shareholders. The CEO is responsible for the daily management of the company and for ensuring that AddLife operates in compliance with the regulations and standards applicable to a listed company. Consequently, the Board of Directors and the CEO are indirectly responsible for ensuring that AddLife addresses its impact, as well as its risks and opportunities, concerning sustainability. In 2023, AddLife began to systemise its sustainability reporting to the Board, with the process set to be completed in 2024. In 2023, a sustainability manager was hired to ensure that AddLife’s sustainability efforts comply with legal requirements and meet the expectations of our key stakeholders. The sustainability manager is also tasked with expanding the understanding of sustainability within the organisation. In 2023, the Board, Group Management and the business division managers received sustainability training, a programme that will extend into 2024.

Under our decentralised business model, we use a blend of central and local approaches to manage sustainability-related impacts, risks, and opportunities. AddLife has a group-wide sustainability strategy and Code of Conduct, as well as a Code of Conduct for business partners. Each subsidiary is responsible for its own business activities within the context of the requirements for growth, profitability and sustainability set by the Group. Our decentralised model, with about 85 operating subsidiaries, numerous product suppliers and a considerably larger number of product categories, poses challenges. Local responsibility and entrepreneurship, combined with a wide range of company sizes make it challenging to have a "one size fits all" model. Consequently, our sustainability approach is adapted from company to company. The incentive programmes offered to employees of the parent company and the managing directors of the subsidiaries include the fulfilment of AddLife's sustainability goals. Several of our subsidiaries are certified to ISO 14001 and ISO 9001, which serve as the cornerstone of their business development initiatives. Components of the management system include dialogue with customers and other key stakeholders, company risk analyses, and formulation of goals and action plans. The proportion of the business certified to ISO 9001 and ISO 14001 has declined because the sales of certified subsidiaries have decreased compared with those that are not certified.

Download Excel

In 2024, AddLife will begin work on establishing a due diligence process for sustainability issues. Processes, procedures and activities that could be part of such a process have been formulated, but have not yet been integrated. We aim to implement the due diligence process in all relevant processes and procedures, across the Group, in order to comply with future legal requirements and meet the expectations of our key stakeholders. In 2023, we launched a project to formulate an internal control process regarding sustainability information, which will extend into 2024.