Sustainability governance
Our sustainability governance, is like all our corporate governance decentralised with responsible decision making. It is based on the frameworks established by Group management and the Head of Sustainability is responsible for leading and following up on the Group’s sustainability efforts.
The Board has ultimate responsibility for the Group’s sustainability work and approves the sustainability report on an annual basis. The CEO and Head of Sustainability regularly update the Board on progress, key sustainability topics and focus areas.
Group management is responsible for the strategic focus of our sustainability efforts and for managing and following up on results from the activities carried out by the companies. The CEO has ultimate responsibility for the Group’s sustainability work. Group management has adopted Fagerhult Group’s double materiality assessment and sustainability agenda.
Social sustainability topics are managed by the Group’s central HR function, which is tasked with supporting the companies’ HR management and developing efficient processes to share the Group’s collective skills. HR representatives from each brand meet monthly to conduct continuous dialogues on how processes can be improved, in order to drive development toward the Group’s joint HR strategy.
Sustainability work by Group companies
In our decentralised governance model, each company is responsible for its own sustainability initiatives and ensures that they are in line with the Group’s sustainability agenda and established targets. The managing director (MD) of each Group companyhas the ultimate responsibility for implementing and adhering to the Group’s Code of Conduct, including the Code of Conduct for business partners, and other regulations and guidelines at the local level. This includes relevant national laws and regulations as well as competition rules such as environmental legislation, labour laws and collective agreements. Each MD is responsible for communicating the content and importance of both codes of conduct and for ensuring that business partners and suppliers are also aware of them. Company managers are responsible for ensuring that each company pursues continuous competence development, primarily in the form of training activities that are based on local and individual needs. Each company is responsible for ensuring its own sustainable supply chain. Each company’s management is responsible for providing a safe and healthy work environment, and are required to proactively work to ensure an acceptable level of employee turnover and the minimising of occupational injuries.
