kinnarps-sustainability-report-2023

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The Better

Effect

Kinnarps / Drabert / MartinStoll / Materia / NC / Skandiform

KINNARPS AB GROUP’S SUSTAINABILITY REPORT 2023

Contents

Getting better

– together

MESSAGE FROM THE CEO

THE YEAR IN BRIEF

SUSTAINABILITY IS PART OF OUR DNA

SUSTAINABILITY ALL THE WAY

12

OUR FOCUS AREAS

18

RAW MATERIALS AND RESOURCES

22

CLIMATE

30

PURE MATERIALS

40

SOCIAL RESPONSIBILITY

46

CIRCULARITY

56

ERGONOMICS

66

RISKS AND GOVERNANCE

72

AUDITOR’S STATEMENT

74

ABOUT THE REPORT

This sustainability report relates to the

Kinnarps AB Group for the financial year 2023

(01/09/2022–31/08/2023). The previous report

was published in October 2022. We follow an

annual reporting cycle. This report has been

prepared in accordance with the provisions of

Chapter 6 of the Swedish Annual Accounts Act.

The Board of Directors is responsible for

the preparation of the report.

The Kinnarps AB Group is one of Europe’s leading suppliers of interior

design solutions for offices, schools and healthcare facilities.

We are a total interior solution provider and help our clients create

sustainable, future-proof spaces using our own brand portfolio,

various services and complementary products. Our curiosity

and interest in sustainable solutions mean that we are continually

working to improve our climate impact, enhance well-being,

and create timeless spaces. In this Sustainability Report, we focus on

six key areas in which all of us in the Group, together with our clients

and suppliers, can work to create a better effect for future generations.

This sustainability report is clickable.

Click on the section in the table

of contents that you wish to read

to go directly to that section.

Tip!

Long-term solutions

create sustainability

Together with our clients, we want to create truly sustainable, long-term interior

design solutions. We pride ourselves on creating products and solutions that

are designed for a long lifespan. This means a low life cycle cost for our clients,

as well as a lower environmental impact in practice.

In our work to create more sustainable solutions for our

clients, we see circularity as an important tool. However,

just because something is circular doesn’t automatically

mean that it is sustainable. That’s why we focus on

sustainable circularity. Kinnarps’ view is that sustainable

circularity is about making conscious choices based

on an in-depth needs analysis, and investing in flexibility

and high-quality solutions. This creates the conditions

for an interior design solution that lasts over time.

A detailed needs analysis that identifies the organisa-

tion’s actual needs is the launch pad for a successful

interior design solution with long-term sustainability.

We use our analysis tools for offices, schools and health-

care facilities to help our clients map out and understand

the needs of their organisation. This provides qualitative

data for making conscious choices right from the start

and creating a business adapted interior design solution

that supports the organisation’s way of working.

By designing solutions and products with flexibility in

mind, we make it possible to adapt the organisation’s

existing furniture to changing needs and work patterns.

The furniture can be combined in new ways and

functions can be added or changed. This not only

extends the lifespan of the furniture but also ensures

that our clients get the most out of their investment.

We design and produce high-quality and long-lasting

furniture. Our design is carefully considered from

the outset, so the furniture can last a long time and

be maintained, renovated, updated and given a new

look in the future. We also offer a range of services

to help our clients extend the life of their products.

Our design philosophy is based on the interplay between

aesthetics, functionality, ergonomics and sustainability.

The result is timeless, genuine and carefully considered

down to the smallest detail, from how a piece of furniture

is made and looks to how and where it is used. We start

with the user’s needs and our understanding of how to

create good total ergonomics. A high user focus ensures

that the interior design solution is relevant for more

users, thus increasing the benefit to both the individual

and the organisation.

Our factories are located in Sweden and we make

major investments in our units to ensure continued high

efficiency and reduce our environmental impact. In recent

years, we have started manufacturing more components

in-house, thereby increasing our control and ability to

ensure environmental performance and social conditions,

as well as reducing transportation. Our own logistics

system is unique in the industry. By wrapping our

products in reusable blankets instead of single-use

boxes, we can load 50% more furniture than the industry

average. This means that when others need three trucks,

we manage with just two. We can also assemble and

install the furniture at our client’s premises in half the

time of our competitors, and avoid more than half a tonne

of waste per truck by bringing the blankets home and

reusing them again and again. We are also adding the NC

Nordic Care brand to our logistics system, which means

that all our brands now are included in the system.

ROBERT PETERSSON

CEO KINNARPS AB

CERTIFIED WOOD RAW MATERIAL

The year in brief

PROPORTION OF FOSSIL-FREE ENERGY

EMISSIONS OF CARBON DIOXIDE PER TRADED SEK

CO-LOADING ALL OUR BRANDS

Kinnarps’ logistics concept is unique in the industry

and uses circulated packaging material in the form of

blankets instead of single-use packaging. This saves

270kg of packaging material per container and also

provides 50% more furniture space, thanks to denser

packing. This year, the system has been expanded

to include deliveries of NC’s products directly

to the client. This has reduced both the number

of shipments and carbon dioxide emissions.

BIO-BASED SURFACE TREATMENT

This year at our factory in Kinnarp we’ve

tested and introduced bio-based lacquer

on selected wooden details in our range.

The lacquer is partly based on renewable

raw materials from plants instead of fossil

raw materials and means a reduction

in carbon dioxide emissions of approx.

1.5 tonnes per year.

We’re leaving a successful year behind us and can look back on twelve months

filled with exciting client projects with a focus on sustainability. During the year,

we have tested new materials and innovations aimed at increased sustainability,

and made major investments for the climate and more circular flows.

MATERIA RE-LOVED

During the year, we’ve added yet another tool to our toolbox to

extend the lifespan of our high-quality products. With Materia

Re-Loved, we offer to take back a selection of products from

Materia for reupholstering. These reupholstered products are given

a green label to indicate that their lifespan has been extended.

Read more about our circular services on Page 60.

CUSHION MADE OF LEFTOVER FABRIC

This year, we’ve developed another product

made from leftover fabric from our own

operations. The Re-Fold cushion from

Materia is made from leftover fabric from

our Tranås factory. The fabrics used depend

on the leftover fabrics available at any

given time. The padding is also recycled

and consists of siliconised ball fibre.

LEXIE – SUSTAINABLE ALL THE WAY

Lexie is a comfortable and functional new

wooden chair that’s both Möbelfakta and

FSC® certified. Thanks to a design featuring

minimal components, all of which can easily

be separated and recycled, it is a circular,

long-term sustainable choice.

(FSC®C010544)

RARE – WITH RESPECT

FOR NATURAL MATERIAL

Rare armchair from NC, in FSC®- certified birch,

has been designed with a desire to make use

of the whole tree and show respect for the

wood. Parts of the tree that are usually hidden

behind textiles or incinerated have been used

to truly make the most of the material. Each

chair is unique – a small shift in colour or a twig

is a lovely testament to our love for nature.

73%

-47%

95%

KINNARPS AB

MATERIA AB

NC NORDIC

CARE AB

MATERIA

GROUP AB

KINNARPS

HOLDING AB

SKANDIFORM AB

1805

+40

+250

THE KINNARPS AB GROUP COMPANY STRUCTURE

Sales points

BRANDS

Sustainability

is part of our DNA

Employees

Markets

SALES

COMPANIES

We are

It all began with a young couple’s dream of a small

carpentry factory 80 years ago. We’ve grown into one

of Europe’s leading suppliers of interior design solu-

tions for offices, schools and healthcare facilities.

Since the company was founded in 1942, we’ve

had a passion for sustainability and a vision that

everything can be done a little better.

Using resources sparingly and creating long-term

solutions are part of our DNA and the core of our

business. We are constantly curious, and continue

to develop sustainable and successful interior design

solutions that enable both organisations and people

to thrive. The Kinnarps AB Group currently comprises

six production units, all located in Sweden, and has

a brand portfolio of seven brands. The Group is

a family-owned business, and the values that have

been embedded in the company from the outset

are still a major part of our heart and soul.

Sales companies

Headquarters and production unit

Production units

SEK 4.45 billion

Turnover

01

02

03

04

05

06

10

11

An invaluable value chain

The purpose of the Kinnarps AB Group’s business model and value chain

is to understand and fulfil the needs of businesses and organisations for

interior design solutions with associated services.

01 DESIGN

When we design and develop products, we set high

function and quality requirements. We work hard

to take all factors affecting sustainability into account

as early as possible in the development process,

such as pure materials, as little waste as possible and

an optimised use of resources. We design products

with a platform approach that gives the product

the flexibility to be renewed and changed over time.

02 RAW MATERIALS

When purchasing raw materials, components and

finished products, it’s important to us that they

come from sustainable sources and are produced

under good social conditions. We therefore set high

standards for both our suppliers and the products

supplied. The Kinnarps AB Group has a common

Code of Conduct covering social responsibility, which

we also follow up through on-site risk assessments

and audits at our suppliers’ production facilities.

03 SALES

We help our clients to analyse both their existing

and future needs, in order to create business

adapted spaces that promote health and efficiency. A

business adapted interior design solution furnished

with flexible and multifunctional products is a long-

term investment that can be adapted to changing

at a relatively low cost.

 Making the right purchase from the start is an

important part of reducing your environmental impact.

We are a total interior solution provider and help our

clients to implement their interior design solution with

the help of products from the Group and our partners.

04 MANUFACTURING

We manufacture on the basis of client orders, which

means that we only manufacture what is actually in

demand and avoid creating large stocks of products.

When manufacturing our products, avoiding eco-

hazardous and harmful substances is important to us.

We do this not only to ensure a good working

environment in our six manufacturing units, but also

to create healthy workspaces at our clients’ premises.

We make continuous efforts to improve our use of

resources by optimising the consumption of materials,

reducing waste, and utilising leftover materials.

05 DISTRIBUTION

We have our own logistics system that delivers

products from all our brands directly to clients. When

we pack our products, we use blankets and cardboard

sheets that we take away with us for reuse. This means

that we save packaging and have space for 50%

more furniture per shipment. Our trucks also run on

renewable diesel to further reduce our climate impact.

06 USE AND REUSE

It’s important to us to design products that last

a long time. That’s why we place great emphasis

on high quality, and the ability to update or refurbish

a product in order to extend its lifespan.

 We offer a range of services to help our clients keep

their interior design attractive for longer and change it

as necessary. Our furniture washing and maintenance

services keep the interior design in good condition,

while our renovation and updating services mean the

furniture can be repaired, customised to new needs

or given a new look.

DISTRIBUTION

SALES

RAW

MATERIALS

DESIGN

Value chain

MANUFACTURING

USE AND

REUSE

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12

Sustainability

all the way

At Kinnarps, we look at sustainability from a holistic perspective. This involves

using resources in an efficient and environmentally smart way, promoting

well-being, and helping our clients to do the same. It’s about offering products

that can be updated and reused, as well as delivering sustainably and creating

well-thought-out and flexible interior design solutions that have been made

to last. Most importantly, it’s about interior design always based on the actual

needs of the people using it. Furniture and solutions that contribute to well-being

and success – today and tomorrow.

“Demand that the

interior design is

designed to live a long

life and is prepared to

be updated, renewed

or renovated when

the time comes.”

Johanna Ljunggren

Sustainability Manager at Kinnarps

At Kinnarps, we look

at sustainability from the

perspectives of sustainable

spaces, sustainable people

and sustainable investment.

It’s when these three work

together that you achieve

sustainability all the way.

Designing sustainable, high-quality furniture with

pure materials is a matter of hygiene for us. But in

order for a piece of furniture to be truly sustainable,

it must be part of an interior design solution that’s

been designed according to the vision and needs

of a specific organisation. It is about spending time

and thought at the beginning of the project, analysing

the needs of the organisation and then designing

interior design solutions that support their users

and activities. Spaces with the right functions that

support well-being, efficiency and creativity give

sustainable people, which in turn leads to success

for the organisation as a whole.

A sustainable investment is just as much about the

present as the future, so it’s important to invest in an

interior design solution with a low life cycle cost, i.e.

a flexible, multifunctional and transformable solution

that can be adapted to changing conditions and

needs. At Kinnarps, we’re experts at creating precisely

this type of business adapted interior design solution

for our clients, and our products are also designed

and prepared to be updated, reused and recycled.

For us, sustainability is simply a lifelong commitment,

based on curiosity, a long-term approach, and an

indefatigable desire to do things differently and do the

right thing, and to pave the way for a better tomorrow.

14

15

Over the years, we’ve helped numerous clients design

value-creating transformations in their physical space.

We do this through our needs analyses Next Office®,

Next Education® and Next Care®, which help to create

business adapted and sustainable spaces. Thanks

to our many years’ experience in workplace strategy,

we know that solid preparatory work creates success.

The key is to map the client’s unique needs and work

patterns. This creates the conditions for achieving

the best and most sustainable solution.

Our needs analyses help the client gather valuable

knowledge and data before designing their spaces.

With specially developed tools, our experienced work-

place strategists guide the management team to es-

tablish the vision, goals and framework for the project.

Through workshops, lectures and an online survey,

they then help to map needs and work patterns and

involve all stakeholders in a carefully considered way.

The analysis provides the client with facts, a solid

knowledge base and a qualitative basis for how their

workplace can be designed to best meet their needs.

Well-considered, well-planned working environments

that meet the needs of both the organisation and

employees promote everything from well-being and

creativity to efficiency and productivity. This leads to

an efficient use of the available space, a reduced risk

of accidents and sick leave, and a stronger brand,

which facilitates both the recruitment and retention

of staff. In other words, a good and sustainable

investment.

Mapped needs show the way

The greatest sustainability impact is achieved by choosing the right interior

design solution from the start. To be able to do this, it’s important to map

out and analyse your needs, and create a business adapted and flexible

solution that lasts over time.

ANALYSIS

INTERIOR DESIGN

SOLUTION

FOLLOW-UP

IMPLEMENTATION

ANALYSIS

DEFINE THE END RESULT

The Next Office® needs analysis lays

the foundation for how your office spaces

should be designed to support employees

and the organisation in the best way possible.

INTERIOR DESIGN SOLUTION

FROM IDEA TO ACTION

We help you convert the needs analysis

results into a design concept, layout and

tangible drawing. We review ergonomics,

functions and sustainability.

IMPLEMENTATION

INTRODUCING THE POTENTIAL

Through our own efficient logistics and delivery system,

we deliver and install your interior completely according

to drawing. We help you introduce and implement

environments, furniture, ergonomics and working

methods so that everyone understands the potential.

FOLLOW-UP

KNOWING IS BETTER

THAN GUESSING

Based on your needs analysis, you

can then continuously follow up on

how your office is working and identify

whether your needs have changed.

17

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Kinnarps’ sustainability

work in five points

3.

4.

2.

5.

1.

WELL-BEING BEGINS IN THE SPINE

In our product development, we collaborate with

ergonomists who are experts on our physical and

psychological needs. This enables us to create

customisable products that enhance people’s well-

being, and minimise sick leave and work injuries. We

design products that promote movement in different

ways. Chairs with swivel function or springiness in

the back, height-adjustable desks or meeting tables,

balance balls and stools with tilting function are

just a few examples. All Kinnarps task chairs are

designed to support or encourage movement.

DESIGN WITH A PURPOSE

We base the design of our products on circularity,

as we believe it should be easy to upgrade and

replace parts to extend the lifespan of the furniture.

Everything to ensure our clients are able to renew

their interior design and create attractive workspaces

without great inconvenience or environmental

impact. For example, we offer 26 product ranges

with removable upholstery, which makes it easy

to reupholster these products in a cost-effective

way, without unnecessary transportation.

FURNITURE TESTED TO LAST

Our products are tested for compliance with strict

quality requirements in our own accredited Test

& Verification Centre in order to guarantee high

quality and product safety. In addition, we have more

than 50 proprietary tests that we use in our product

development to simulate how the products are used

in reality and thus test their durability. This also means

that our clients receive products that last longer,

which not only shrinks their investment costs over time

but also significantly reduces their climate footprint.

MADE IN SWEDEN

All our factories are located in Sweden, and thus

have high environmental and working environment

requirements.

 We also demand social responsibility within our

supplier chain, via our Supplier Code of Conduct,

which mandates an on-site risk assessment and

monitoring to ensure socially acceptable conditions.

 In our production, we also deal with waste materials

in various climate-smart ways. For example, some

of our factories are heated using wood waste from

their own production. In addition, we’ve developed

the innovative Re:fill material, which consists of

leftover fabric from our production in Skillingaryd

and recycled PET bottles.

 We have stringent environmental requirements for

all our products and many of our products are also

ecolabelled. This means that the products are safe

and contain no unnecessary or harmful chemicals,

which creates healthy working environments and

better indoor quality.

REUSABLE BLANKETS

We use blankets as packaging material instead

of single-use boxes for the delivery of products

from all Kinnarps’ brands. The blankets are then

taken back for reuse on the next delivery, saving on

waste management and about 270 kilos of packaging

per truck shipment. The blankets also mean that we

can fit 50% more furniture in our trucks, compared

to other companies in the industry. This is just as

positive for the climate as it is appreciated by our

clients, as it means fewer and faster deliveries.

18

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Our focus areas

Product and service quality

Pure materials and chemicals

Social responsibility

Transport and resource management

Circularity

Product labelling

Climate

Waste and emissions

Transparency

Ergonomics and health

Working environment

Far-sighted, responsible entrepreneurship

Responsible raw wood

Skills and development opportunities

Local involvement

IMPORTANCE FOR STAKEHOLDERS

IMPORTANCE FOR KINNARPS’

BUSINESS STRATEGY

STAKEHOLDER DIALOGUE

Which issues are important to the people who influence or are influenced by our operations? Knowing this

is essential to enable us to pursue our sustainability work effectively, and we therefore maintain a regular

dialogue with our stakeholders. This is done by methods including interviews, focus groups, surveys,

and ongoing meetings in our daily operations.

THE KEY STAKEHOLDERS WE HAVE IDENTIFIED:

Clients / Regulators / Owners / Employees / Trade unions / Authorities / Society / Media / Retailers / Suppliers /

Lenders / Insurers / Certification bodies

MATERIALITY ANALYSIS

Which sustainability issues are most relevant to our operations? On the basis of the stakeholder dialogue,

we carry out a materiality analysis, which is revised annually. The analysis not only identifies the areas

in which Kinnarps’ stakeholders have the highest expectations but also those of major importance

to our business strategy. We have summarised the most important areas in our six focus areas.

Our focus areas

Materiality analysis

Climate

Social responsibility

Ergonomics

Raw materials

and resources

Circularity

Pure materials

p.22

p.30

p.40

p.46

p.56

p.66

In order to identify which sustainability areas are most important

for our business, we maintain a dialogue with our stakeholders

and conduct an annual materiality analysis.

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