Sustainability
The KWH Group is actively present in the business groups to build future-proof companies with sustainable business models.
KWH Group Sustainability Report 2024
In the context of stricter regulatory requirements and global sustainability initiatives, in 2024 the KWH Group continued to work on compliance with the EU Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). Although the KWH Group is not subject to the new reporting requirements for the reporting year, preparatory work is in full swing to align with the requirements and enhance competitiveness. For this year’s report, the KWH Group has chosen to move from previously reporting according to GRI Standards to reporting more in line with the requirements of CSRD and ESRS. This involves both an updated double materiality assessment and a revised ESG strategy.
Sustainability work
The cornerstones of the Group’s business model are deep commitment and an active presence in the business divisions to develop and build future-proof companies. This is with the aim of being a leading industrial group that drives innovation and sustainable business models. The KWH Group’s corporate strategy is focused on long-term value creation and developing stable businesses in the industries in which the business divisions operate. In addition to conferring a potential competitive advantage, sustainability is also a prerequisite for reducing the impact of the KWH Group on the environment, managing risks related to the various sustainability areas, and for democratic, just societies.
The KWH Group’s primary sustainability focus in 2024 was the implementation of an updated double materiality assessment in accordance with CSRD. The updated materiality assessment lays the foundation for the KWH Group’s preparatory work to meet the upcoming regulatory requirements and ensures that the ESG strategy covers the KWH Group’s material impacts, risks and opportunities related to sustainability. The ESG strategy underwent several minor revisions in line with the results of the materiality assessment and is thus based on the Group’s core values and material sustainability areas.
The KWH Group’s material sustainability areas
The updated double materiality assessment identified material areas that will guide the KWH Group’s resource allocation related to sustainability. The double materiality assessment included both the KWH Group and the four business divisions, KWH Freeze, KWH Logistics, Mirka and KWH Invest (Prevex). In connection with this, stakeholder dialogues were conducted with the KWH Group’s key stakeholders such as shareholders, representatives of all business divisions, internal functions, financial advisors and sustainability experts. Employee surveys from 2022 and 2023, and customer surveys from 2023 were also included to ensure a broad perspective.
Another step in the KWH Group’s sustainability work during the year was to expand its vision to include strategic priorities for each overall objective. The strategic priorities include both those relating to the overall sustainability work carried out by the KWH Group and more specific priorities for the environment, social responsibility and governance. The cornerstones of the business model are unchanged: deep commitment and an active presence in the business divisions to develop and build future-proof companies. In addition to the overall goals, the KWH Group has not currently developed or decided on any Group-wide goals related specifically to the material areas. Looking ahead, the Group will endeavour to carry out a review of previous initiatives and, on that basis, develop Group-wide goals for priority material areas.
Sustainability governance
The Group Board of Directors is ultimately responsible for managing the affairs of the KWH Group, including the Group’s sustainability work. For the business divisions, each CEO is ultimately responsible for driving the sustainability work forward for their business division. Sustainability is a regular agenda item at Group Board meetings and there are annual discussions on sustainability issues from several business perspectives. The Group Board will appoint an ESG Committee in 2025 to accelerate the work on sustainability issues.
The KWH Group has an internal policy framework that sets the guidelines for its actions as a responsible company. The policy framework is monitored and updated as required. In 2024, a review of the framework was initiated to clarify links to the identified material sustainability areas and their governance. Updated policies will be published in 2025. In addition to Group-wide policies, the business divisions also have business-specific policies based on their needs.