Sustainability
Sustainable business value is achieved by working according to our sustainability framework and goals. Our approach to sustainability is for these types of issues to be integrated into our business, both as part of our day-to-day operations and as part of our strategic processes.
Promoting sustainable development
We at Arla Plast are working to contribute to agenda 2030 and to the UN's Global Goals for Sustainable Development and to Sweden's climate goals 2045. We have identified the goals that are most relevant to our business and where Arla Plast can contribute the most. A strong financial position creates the prerequisite for sustainable development. A profitable business not only provides returns to owners, it also creates jobs and enables investment. Arla Plast has therefore adopted a number of financial targets that support the strategy for sustainability.
Internal governance - sustainability
Our sustainability work is led by group management and coordinated by the quality manager. The starting point is a sustainability strategy, long-term goals and sustainability-related governance documents. Sustainability work is an integral part of Arla Plast's operational management including business plan and budget work. Sustainability work and results/progress are communicated through the sustainability report and through an ongoing dialogue with stakeholders.
Arla Plast's CEO regularly presents sustainability results to the Board, which reviews and monitors the results towards the company's goals. The Board of Directors is responsible for the company's sustainability strategy and policies and approves the sustainability report.
Sustainability goals and strategy
Arla Plas is based on three sustainability areas:
- Environmental footprint
- Social sustainability
- Business ethics
Environmental footprint
Reducing our environmental footprint is our biggest sustainability challenge. We are endeavouring to reduce our climate impact throughout the value chain and from a product life cycle perspective. The production of the plastic granules, our main input in the manufacture of extruded plastic sheets, is the single largest contributor to our carbon footprint. We are continuing to cooperate with external partners, especially raw materials suppliers on developing non-fossil or partially fossil-free materials and to work actively on recycling and take-back. Arla Plast's goal and strategy for the reduction of its environmental footprint is based on the focus areas efficient use of materials, sustainable customer offering and sustainable production.
1. Efficient use of materials
The production of the raw material, which is our input for the production of extruded plastic sheets, accounts for the vast majority of the carbon footprint of our operations. It is therefore of the utmost importance that the material is used as efficiently as possible.
Key issues in the efficient utilization of materials:
• Increasing take-back of materials from customers
• Increasing the reuse of regrind in production
• Reducing regrind generation
2. Sustainable customer offering
Arla Plast's ambition is for customers to appreciate the company's offering as one of the most sustainable in the industry.
Key issues in sustainable customer offerings:
• Increasing the share of products with a lower CO2 footprint
• Increasing the use of recycled materials
• Increasing the share of investments that enable circularity
• Sustainable modes of transport
3. Sustainable production
Arla Plast strives to continuously develop its production facilities to put it at the forefront of sustainable production. Through our extensive industry experience, we have acquired unique expertise by developing our own production processes and products so that they have less of a negative impact on the environment and climate
Key issues in sustainable production:
• Increasing the purchase and use of renewable energy
• Reducing environmentally hazardous waste
• Reducing the use of fresh water
• Health and safety
Social sustainability
Being a workplace where people thrive and have the opportunity to grow and develop isn't just a corporate goal, it's a key part of our identity and how we want to be as an organization. We firmly believe that by investing in our employees we are not only creating a positive working environment but also laying a strong foundation for our sustainable future.
Arla Plast's corporate culture
Our corporate culture is characterized by the fundamental principles of quality, speed, service and flexibility. These core values shape the way we interact with our customers and each other within the organization.
Employees
Our Personnel Policy is based on acknowdedging our employees' know-how and skills, achieving equal proportion between men and women, a high level of ethics, and open and honest communication that enables the exchange of ideas. Arla Plast is based on a set of values that promotes a work environment where everyone is of equal value. This means everyone at Arla Plast should have the same rights, obligations and opportunities.
Health and safety
Our employees should feel safe, and we promote a healthy working environment. As Arla Plast has production facilities, it is important to limit the risk of workplace accidents and occupational injuries. All production facilities have certified management systems for health and safety, and all new employees are trained in safe working practices. Our long-term aim is to have no accidents or injuries that lead to absence.
Training and skills development
An important part of being an attractive employer is offering opportunities for development and career options. Through a planned and systematic introduction process, all new employees are given the opportunity to familiarize themselves with the organization and start working. The need for training or other activities to enhance skills is identified during employee performance appraisals. There are a number of examples of employees who have switched between different tasks or undergone further training during their employment, thus taking on new tasks and greater responsibility.
Working conditions
Arla Plast aims to ensure that its employees are healthy, committed and motivated. We believe health and safety provides the basis for this. So health and safety measures at Arla Plast are an integral part of everyday work and are conducted on a long-term basis. This means we work systematically with health and safety, conduct regular risk assessments and monitoring, set clear goals and develop action plans based on these. The work includes both physical and psychosocial health and safety, including issues related to ergonomics, protection and safety, sick leave, the promotion of fitness, and alcohol and drugs. We regularly conduct employee surveys to find out how the organization and the working environment are perceived by employees. The results are published and followed up by both company management and union representatives.
Business ethics
Arla Plast's ambition is to develop in a sustainable and responsible way. One way to ensure good business ethics and corporate responsibility is to create awareness and understanding in employees and other stakeholders. This is supported by a Code of Conduct, policies and training programmes.
Arla Plast has a guide for all its employees called The Arla Plast Way.
The Arla Plast Way describes and guides employees regarding how to act in different situations and is based on the Sustainability Policy and Code of Conduct. The guide contains
• Arla Plast: a good place to work
• Honesty and integrity
• Respect for customers
• Respect for each other
• Respect for company property
• We care about the world around us
• Inside information issues
Human rights and corruption
Guidelines on human rights and corruption can be found in The Arla Plast Way. All employees and company representatives have been trained on The Arla Plast Way and the appropriate laws in the countries in which we operate. A whistleblowing function is in place to detect if someone violates these. No incidents were reported in 2023.
Suppliers
All plastic granule purchases are made from approved suppliers that have passed our supplier selection process. We work upstream, which means that we only accept suppliers that have committed to complying with international human rights, labour law and anti-corruption rules. In addition to our own personnell, we work with carefully selected subcontractors at our production facilities in areas such as construction, safety, cleaning, IT, maintenance and logistics. All subcontractors are informed of our Health and Safety Policy, our procedures and, of course, our Code of Conduct. Our supplier monitoring includes checking suppliers' compliance with our Code of Conduct. No cases of suppliers breaching our Code of Conduct were
noted during the year.
Governance of sustainability
Overall responsibility for the company's sustainability work lies with the Board of Directors, while the CEO has operational responsibility.
Sustainability efforts are managed and monitored through a management system with action plans and measurable targets. This also includes joint policies and guidelines. Target fulfilment and action plans are monitored and reported regularly to Group Management, which in turn regularly reports developments and results to the company's Board of Directors. The Group's Board of Directors continuously evaluates the sustainability work through reporting at Board meetings.
Systematic approach
Sustainability efforts form an integral part of Arla Plast's operational management. Progress has been made with many of the company's sustainability priorities. In recent years, this work has been further intensified. We have raised the level of ambition in order to develop a sustainable product portfolio, increase supplier responsibility, raise the level of responsible business practices, develop a sustainable workforce and directly address our climate impact in various ways.
Guideline documents
The company has adopted a number of policies and guideline documents. All policies have been approved by the Board of Directors, and those that are primarily relevant to Arla Plast's sustainability work are presented below.
The Sustainability Policy and Code of Conduct, including The Arla Plast Way, set out Arla Plast's overall conduct with regard to customers, employees, suppliers, business
ethics, anti-corruption and wider society.
The Operating Policy governs how the company aims to achieve a good and safe working environment and how it aims to minimize negative impacts on the external environment.
The Insider Policy is intended to reduce the risks of insider trading and other unauthorized practices and to facilitate the Group's compliance with the applicable rules on handling inside information.
The Purchasing Policy guides the company's efforts to establish and develop long-term business relationships with suppliers and other partners.
The Related-Party Policy is intended to reduce the risk of errors and irregularities arising from related-party relationships and transactions.
The management system ensures a long-term, focused and systematic approach to continual improvement.
Commitments and initiatives
Arla Plast supports the UN Global Compact initiative and is committed to fulfilling the principles on human rights, labour law, the environment and anti-corruption.
These principles also form the basis of our Code of Conduct. In addition, Arla Plast is committed to contributing to Agenda 2030 and the Sustainable Development Goals (SDGs), and has identified the SDGs that are most relevant to the company and where Arla Plast has the greatest impact and can contribute the most.