Industry and market-related risks

Risk level

Likelihood

Impact

Description

• In some cases, demand for Thule’s range is dependent on demand for other underlying products. If such demand should change, it could entail an adverse impact on Thule Group’s earnings

Counteracting factors and management

• Thule consistently monitors consumer trends and developments in adjacent industries to which the Group has a link, and is accustomed to quickly adapting to new trends, demand and needs.
• Thule Group’s proven flexibility in its purchasing and logistics organization entails a very high degree of adaptability

Risk level

Likelihood

Impact

Description

• Over a longer time horizon, if climate change impacts are unmitigated, the impacts can potentially hinder opportunities to enjoy an active life in terms of, for example, skiing in an alpine environment or water sports in polluted watercourses.

Counteracting factors and management

• Thule works with SBTi targets, both in our own operations, and with our supply chain keeping our work aligned with the Paris Agreement to not exceed the global temperature by 1.5 degrees.

  We work with our suppliers and customers to manufacture products with low climate impact, and we continuously renew our product portfolio, so that we are aligned with trends and market pattern, as well as to identify opportunities to live an active life.

  We work with several interest organizations to advance our interests of living an active life, and our aim is that by continued collaborative efforts, that we mitigate climate impacts so that the planet continues to be a source of inspiration for people to live an active life outdoors.

Risk level

Likelihood

Impact

Description

• Regulatory compliance in relation to relevant environmental law and other provisions on the environment are requisite to avoiding penalty fees and other sanctioning measures.
• Known, as well as currently unknown, clean-up costs could impact Thule Group’s operations, earnings and financial position.
• Increased production leads to an increase in overall environmental impact related to the manufacture and distribution of the Group’s products.

Counteracting factors and management

• Thule Group conducts systematic work to reduce the Group’s general environmental impact and to ensure the group’s operations are conducted in compliance with relevant environmental legislation and other environmental provisions.
• Thule Group pursues comprehensive quality and environmental management initiatives that impose requirements both on our own production and on that carried out by suppliers. As part of these efforts, the Group is gradually certifying all production facilities under the ISO 140001:2015 framework. The current status is always updated on the Group’s website.
• Thule Group works proactively to reduce environmental impact in all parts of the value chain, i.e., from the design of the products, through to the manufacturing and distribution process, consumers’ usage and the final waste management of the products.

Risk level

Likelihood

Impact

Description

• Over a longer time horizon, the long-term climate change that the world is undergoing could impact opportunities to enjoy an active life in terms of, for example, skiing in an alpine environment or water sports in polluted watercourses.

Counteracting factors and management

• Thule Group participates in several interest organizations and follows developments closely.
• Thule Group continuously renews its product portfolio to be able to follow trends in terms of consumer patterns as well as opportunities to carry out activities and live an active life.

Risk level

Likelihood

Impact

Description

• Thule Group purchases products and components from 650 suppliers around the world. The company’s products are sold in 138 markets. Overall, this inevitably entails the transportation of goods and components. The direct and indirect use of transportation services often involves the use of fossil fuels.
• The pandemic years entailed significant sales increases, which in turn entailed an increased transportation volume of input goods as well as finished products.
• A strained global logistics chain entails a risk of forcing more transportation to be conducted using energyintensive modes of transport.
• An increased share of direct to customer (DTC) sales through Thule’s own online channel means an increased number of short-distance shipments.

Counteracting factors and management

• Thule Group works to optimize necessary logistics flows.
• When procuring transportation services, emissions requirements constitute a vital parameter.
• Thule Group’s assembly and warehouse facilities are strategically located close to the Group’s main markets, helps optimize the company’s logistics flows.