HOW HG WORKS WITH ESG
Acknowledging the past, shaping the future
The crafts industry has historically relied heavily on human and natural resources, often to the disadvantage of sustainability. Recognising the urgent need for a paradigm shift, HG is at the forefront of driving the industry transition to setting out people first, minimising waste and optimising efficiency. Our recognition of the past fuels our drive to redefine the future.
The fragmented nature of our industry has often seen smaller companies strive for agility, and in a few cases unconsciously prioritise immediate business performance over E, S and G. HG stands out not only as a leader but also as a unifier, using our scale and forward-looking vision to foster a culture where our local companies understand sustainable practices are fundamental, ensuring the long-term engagement and wellbeing of our people as well as our competitiveness.
When we are exploring opportunities for new local companies to join the Group, having such a strong ESG-led culture is an attractive proposition for many of these companies looking to partner with us. Furthermore, many of our customers value our holistic approach to ESG and we see this as a clear advantage during any tendering process and when competing for national contracts.
ESG leadership and governance
Incorporated into our governance, ESG leadership at HG means a comprehensive commitment to these principles throughout the organization. The Global Management Team (GMT) sets specific ESG-related policies, targets and initiatives, while our Board of Directors (BOD) endorses the overarching ESG strategy. Led by the GMT, with Managing Directors in Norway, Sweden, Denmark and Germany at the helm, these initiatives are implemented on the ground by the regional managers in collaboration with the local companies, ensuring harmonious and impactful implementation.
At the heart of our ESG work is the ESG Project Team, led by our ESG officer Thomas Thorsøe, it is a critical link between our Board of Directors, the GMT, and the local companies. This dedicated project team leads and develops our sustainability initiatives, ensuring that our efforts are not only strategic, but also aligned with our core values at all levels of our operations.
Our ESG Strategy
Our journey towards a robust ESG strategy began with a comprehensive materiality assessment understanding what’s important to our internal and external stakeholders. This assessment laid the foundation for our strategic priorities. These priorities are seamlessly woven into our overarching business strategy, ensuring tangible progress through action plans and monthly KPI reporting.
In anticipation of refining our strategy for 2024, we will undertake a double materiality assessment according to CSRD. This endeavour aims not only to measure the impact that HG has on the climate, but also to identify the potential effect that these factors may have on HG’s financial performance. This dual perspective ensures a holistic approach to our strategic planning.
Recognizing our core identity as a people-focused business, we have adapted our focus to emphasize the social aspects, leading us to rename our ESG terminology to SEG (Social, Environmental, Governance). This reorientation underlines our belief in the paramount importance of social factors in our sustainability efforts and complements our commitment to promote a positive impact on society, the environment and our governance practices.
S - Putting people first
Fostering a culture of mutual respect and care is fundamental to our identity. We are committed to being an employer of choice, investing in the wellbeing of our people and taking our social responsibilities seriously. Our ambition is clear: to create an unparalleled workplace where diversity is celebrated and everyone, regardless of who they are, feels valued and supported. We are committed to maintaining a safe and inclusive environment that encourages people to be themselves and creating a breeding ground for innovation and fresh ideas.
The cornerstone of our commitment to employee empowerment is the HG Academy, a testament to our commitment to continuous learning and professional development. The Academy serves not only as a hub for skills development, but also as a nurturing space to reinforce a culture of respect, inclusivity and collaboration, throughout the past 12 months, we have trained over 420 employees at the HG Academy.
Our stance on discrimination and bullying is clear – we have a zero-tolerance policy. To uphold this standard, we've put in place robust channels and policies that enable our employees to report such behaviour. While we've had instances of whistleblowing in 2023, each has been treated with the utmost sensitivity and appropriate corrective action has been taken. While it's unfortunate that such incidents occur, we are grateful for the vigilance of our employees, whose courage in speaking up enables us to maintain our ethical standards and foster a respectful workplace.
Our commitment to employee safety is unwavering. We believe that every member of our team deserves to return home every day safe and sound. To this end, we enforce strict adherence to safety practices and the use of appropriate equipment, ensuring that the physical safety of our employees is a non-negotiable priority.
HG Academy – investing in the work force
Launched in 2021, the HG Academy is now expanding its educational offering across Norway and Sweden, with programmes currently being developed in Denmark and Germany. The Academy is designed to provide a comprehensive learning experience, with a wide range of microlearning courses and webinars. These sessions cover a wide range of topics, including succession planning, diversity and inclusion, pride in craftsmanship and insights for new managers. Additionally, we offer face-to-face training on basic management principles, as well as our Greenhouse Talent Programme, which aims to develop the skills of potential successors and key employees. Each course is carefully designed to meet the specific needs of the audience and can be tailored to the participant's role within the organization.
To ensure maximum accessibility, all our courses are offered on demand. This flexibility means that any HG company can access and use these resources as and when they need them. Courses are primarily delivered in the native languages of our operations but our training in Code of Conduct is additionally offered in other languages such as Polish and English available on request. This ensures that all employees, regardless of their primary language, have the opportunity to engage with our content at their convenience.
Looking ahead to 2024, we have set a target of having at least 10% of our workforce participating in an HG Academy initiative. This goal underlines our commitment to fostering a culture of continuous learning and professional development throughout the HG family.
E - Our plan for the planet
Our environmental strategy is fundamentally based on understanding and subsequently minimizing the environmental impact of our operations. Our business model naturally supports this goal by extending the life of our customers’ properties, thereby reducing the need for new construction. We are strong advocates of the principles of a circular economy, always carefully assessing what waste we are producing in our processes.
We actively seek ways to reduce our operational impact, for example reviewing our travel practices and optimizing our waste management strategies. Our main source of emissions comes from vehicles and we are in the process of moving to a fossil fuel-free fleet to address this issue. Today, the majority of our painting supplies are eco-certified and we continue to look across our supply chain for environmentally friendly alternatives across all service areas.
As part of our role as a customer facing business, we also encourage our customers to choose more sustainable approaches, for example asking whether they would consider refurbishing existing surfaces rather than opting for replacement and providing them with more environmental options they might not have previously considered. For example, our floor restoration techniques not only revitalize the appearance of floors, but also significantly reduce the time and emissions associated with traditional resurfacing methods. Similarly, through M-TEK and M-TETT, we facilitate the partial repair of heating cables and drains, minimizing environmental impact.
The pursuit of ISO 14001 certification for all our local operations is a proactive step in strengthening our environmental stewardship. This standard is instrumental in improving our environmental performance and instilling a sense of pride in our teams.
Currently, all local companies report their Scope 1 and Scope 2 greenhouse gas emissions. We are committed to expanding our reporting to include Scope 3 emissions and are exploring the most efficient ways to do this without overburdening our local companies. Looking ahead to 2024, we plan to align with the globally renown Science Based Targets (SBTi) initiative, reinforcing our commitment to assessing our practices against rigorous science-based environmental targets. This forward-looking approach not only underlines our commitment to sustainability, but also positions us as a conscientious leader in the quest for a more sustainable future.
Changing the game
We challenge not only ourselves but also our suppliers and partners to improve their environmental, social and governance (ESG) efforts. By integrating ESG principles into every facet of our operations, we're moving beyond mere compliance, instead setting a new standard that we hold ourselves, and those we work with to. This resolute commitment redefines industry benchmarks and demonstrates that responsible business practices not only benefit the environment, but also the bottom line over time.
Our mission is clear: value our people, to care for our planet and conduct our business with absolute integrity. Our commitment to these core principles goes beyond making a profit; it's about driving meaningful change. As we move forward, we want you to know that this is just the beginning of our journey towards a more sustainable and responsible future.
We are proud craftspeople leading the way.
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