Sustainability-related risks
Thule Group pursues operations that have both a direct and an indirect impact within the areas that the company has identified as being important to sustainable operations: environmental principles, social responsibility and corporate governance.
Thule Group pursues proactive environmental work within all of the Group’s units, to ensure that the operations are conducted with the least possible impact on the environment.
Thule Group adheres to rules and principles for human rights, working conditions and anti-corruption rules through affiliation with the UN Global Compact. As part of corporate governance, all employees and the Board of directors receive training in the company’s Code of Conduct. Thule Group also requires that the company’s suppliers, consultants and other business partners apply the principles
Deficiencies in sustainability efforts
Risk level
Likelihood
Impact
Description
- The confidence of society and the market in Thule Group’s sustainability efforts is a prerequisite for successful operations.
- Deficiencies in sustainability work can have a considerable negative impact on customer relationships in, for example, the automotive or sport and leisure industries.
- A precondition for an investor collective’s investment in a company is often that the company meets their sustainability requirements.
Counteracting factors and management
- Thule Group pursues comprehensive quality and sustainability initiatives that impose requirements on both our own operations and those conducted by suppliers.
- Thule Group continuously trains employees and suppliers in the Group’s Code of Conduct.
- General sustainability targets relating to the environment, quality and social responsibility are monitored on a quarterly basis.
Energy consumption
Risk level
Likelihood
Impact
Description
- Increased production may lead to increased energy consumption.
- Any shortcoming in the use of renewable energy could adversely impact the environment.
Counteracting factors and management
- Thule Group continuously measures the energy consumption at all of its facilities.
- Energy efficiency is a crucial factor for investments.
- When procuring energy, where possible, energy from renewable sources should be the first choice.
Environmental impact
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.
Climate risk
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.
Increased volume of shipments
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.
Deficiencies in health and safety
Risk level
Likelihood
Impact
Description
- The work environment, health and safety are central focus areas for Thule Group.
- Deficiencies in safety and the work environment entail an increased risk of ill health and incidents for the Group’s employees.
Counteracting factors and management
- Thule Group conducts systematic work to safeguard and improve the work environment.
- Thule Group continuously monitors a number of parameters within the area of health and safety. Opportunities for improvements are discussed in the central and local Safety Committees. Improvements are continuously implemented and debriefed.
Deficiencies in gender equality, diversity and discrimination
Risk level
Likelihood
Impact
Description
- Deficiencies in the implementation of and compliance with Thule Group’s core values could lead to deficiencies in gender equality and diversity.
- Deficiencies in the right to organize can lead to conflicts with labor organizations as well as public opinion.
Counteracting factors and management
- Thule Group conducts recurring in-depth employee surveys and actively follows up on these results.
- The work is conducted with full transparency in relation to policies, employee manuals and the reporting of breaches related to discrimination.
- Thule Group has a well-established whistle-blowing function to enable employees, suppliers and customers to bring possible breaches of the Group’s Code of Conduct to the Group’s attention. Technical administration of the whistle-blowing function is through an external platform, which means, inter alia, that the service can be provided in the notifier’s own language.
Violation of human rights
Risk level
Likelihood
Impact
Description
- Thule Group is a global company. In some countries, insights into human rights may be limited. This entails a risk that the company could involuntarily contribute to violations of human rights.
Counteracting factors and management
- Thule Group is a participant in the UN Global Compact and therefore abides by its ten principles.
- The company’s global Code of Conduct applies to all of Thule Group’s Board members, senior executives (including Group Management), employees and, to the greatest extent possible, suppliers, business partners, subsuppliers and customers.
- Thule Group’s supplier strategy includes the company’s sustainability aspects.
- Thule Group conducts CSR audits, both in-house and in partnership with the company Intertek.
Corruption
Risk level
Likelihood
Impact
Description
- Corruption threatens sustainable economic and social development around the world, particularly in poor regions. Corruption may exist to various extents in some countries and in different sectors of society. Thule Group sells products in 138 countries, and purchases products and components from more than 650 suppliers. This means that we, like many other companies, run a risk of becoming involved in unethical business transactions, fraud and irregularities in areas encompassing sales and procurement processes.
Counteracting factors and management
- Thule Group applies zero tolerance to unethical business practices. The company conducts obligatory courses on its Code of Conduct for employees, suppliers and business partners. In addition, courses are held on the regulatory framework of anticorruption and other policies. Combined with the framework of internal control and monitoring, this provides the foundation for an ethical business approach and correct financial reporting.
- Thule Group applies global and local authorization manuals in order to avoid conflicts of interest.
- Thule Group applies procurement processes that ensure sound business ethics.
- Thule Group provides suppliers with training on the company’s Code of Conduct, and conducts CSR audits, both in-house and in partnership with the company Intertek, to monitor and audit compliance with the Code of Conduct.