Sustainability

Compliance risk management is vital for identifying risks and upholding our social license to operate. We have established a comprehensive risk matrix covering regulatory compliance changes, business ethics, anti-corruption, climate change, and pollution concerns. This will be complemented by vigilant regulatory monitoring at national and international levels. Our approach to risk is data-driven and continuous, addressing both general and local levels. 

Environmental and human rights due diligence will inform our policies and Codes of Conduct. Our commitment to compliance extends beyond our organisation. Our Codes of Conduct ensure employees and supply chain partners uphold our standards and values. We also extend this approach to third-party risk management, collaborating only with companies committed to legal compliance, anti-corruption, and environmental and safety guidelines. Partner risk management will be tailored to regional specifics, considering sector, country, and product risks. Non-compliance may lead to necessary actions, such as potentially discontinuing business relations.

We actively involve our staff and management in matters of sustainability and compliance. Throughout 2022, a comprehensive series of interviews was undertaken to identify risks and opportunities related to sustainability. Additional initiatives are in the pipeline, including the communication of our sustainability strategy to the entire staff, alongside training sessions on our Code of Conduct, health and safety protocols, and broader sustainability topics. Certain training courses will also be extended to contractors, temporary employees, and key business partners.

To maintain our position as leaders in our industry and to remain a compelling choice for clients and employees, it is essential we explore ways to enhance the sustainability of our current business model. Our model is closely tied to elevated standards and an innovative mindset. Throughout 2023-2024, we're committed to intensifying our sustainability endeavours, encompassing improvements both upstream and downstream. These efforts will align perfectly with existing and forthcoming policies, legislation, and standards.

Business ethics lie at the heart of our business model, and we've anchored them in our Codes of Conduct. With KeyPlants' production firmly based in a controlled factory environment in Sweden, adhering to Swedish laws and regulations, we steadfastly uphold the safety of the workplace and material handling (SHE EHS). However, we acknowledge the potential presence of ethical risks that warrant our attention. In response, we are implementing a series of complementary measures. These includes launching a global anti-corruption initiative, encompassing a comprehensive risk assessment to identify high-risk jurisdictions and the appropriate measures to address them. All staff members will undergo anti-corruption and business ethics training to ensure complete compliance. We are also planning a due-diligence program on environmental and human rights aimed at employees and stakeholders throughout our supply and value chain.

We will actively engage in dialogues with our suppliers, particularly during the procurement process, to enhance transparency, leverage knowledge and best practices, and identify potential risks and opportunities. Through these dialogues and an enhanced procurement approach, we are committed to ensuring that all suppliers adhere to our Code of Conduct and to addressing any instances of non-compliance. Our Code of Conduct encompasses both our requisites and the supplier approval procedure. This will be aligned with criteria set by international governance instruments (e.g., UN, EU).

Within the supply chain context, we will consider various issues, such as social risks and climate-related challenges, in addition to threats to biodiversity, natural resources, and human rights. Our strategy includes plans to implement a system of third-party audits. Additionally, we are proactively identifying suitable associations to join, enabling us to learn from and exchange insights and achievements with other organisations within our sector.

We will continue to create an inspiring and safe work environment by updating staff manuals and health and safety routines, and further developing our Code of Conduct for both management and employees. Furthermore, focused efforts to enhance work safety will be implemented at our production facility and for staff working on building projects abroad. We will also continue to enhance our appeal as an employer of choice.

Staff surveys will take place more frequently to monitor well-being and satisfaction levels. Routines and checklists will be introduced for countries with planned building projects, ensuring safety and adaptation to local cultures. This approach guarantees secure and efficient project implementation, reinforcing our reputation in these countries.

We strive to build a strong brand that aligns with the Masco Group, while still reinforcing our own KeyPlants brand and values. The KeyPlants brand embodies transparency, accountability, and proactive engagement. Our aspiration is to be at the forefront of sustainability and contribute to societal well-being through our business model, which requires fewer natural resources such as water, chemicals, and other raw materials compared to conventional construction projects.

Our commitment to innovation is reflected in our pre-engineered facility solutions, which are designed and constructed for swift reconfiguration and redeployment throughout the facility's lifecycle. This includes the ability to relocate walls to accommodate new operational layouts. As a result, our clients can quickly respond to patient needs around the globe without unnecessary pollution stemming from conventional demolition and construction processes. A strong brand also cultivates trust and goodwill among our staff, customers, and suppliers alike.

Climate-related risks will be addressed through various strategies. Climate considerations and responses will be integrated into the procurement process, guiding us to avoid high-risk products and materials while favouring options with low climate impact whenever possible. These climate change-related matters could impact our customers, suppliers, and access to specific materials and products. This, in turn, may influence emerging building standards and preventive measures like constructing flood walls. To manage this, we'll closely assess risks, monitor products affected by climate change, and identify substitutes or adapt to new standards accordingly.

Climate neutrality stands as one of our main sustainability goals, and we're committed to implementing measures that will lead to near net-zero CO2 emissions across our operations. This encompasses actions spanning everything from material, product, and service selection to production, transportation, and project site activities. In 2022, all sources of CO2 emissions were identified and evaluated in terms of CO2e. Goals and indicators will be established to continually reduce our operational impact. For emissions that can't be entirely eliminated, offsetting measures will be considered.

Additionally, we'll integrate climate adaptation into both our operations and projects. A more proactive approach to climate adaptation will be implemented from conceptualisation to project realisation. Risks related to flooding, droughts, and storms will be identified, monitored, and addressed. These considerations will then influence decision-making during project definition and guide material and product choices during the design phase, favouring materials capable of withstanding storms, heatwaves, or flooding, for instance.

We will continue our commitment to minimising the adverse environmental impacts of our operations. KeyPlants Emtunga holds ISO 14001:2015 and 9001:2015 certifications, which demonstrate our adherence to concrete and well-regarded environmental and quality standards. This not only demonstrates our fulfilment of environmental and quality obligations, but also underscores our accountability toward the environment, quality, customers, staff, owners, and other stakeholders. Our proactive efforts will extend upstream to encompass measures related to materials, components, products, and services procurement. Similarly, downstream actions will encompass strategies to reduce pollution in transportation, production processes, and waste streams.

We are also keen to further address the preservation of biological biodiversity and will incorporate objectives and measures into our decision-making processes as buyers, producers, sellers, and project leaders in the upcoming year. These measures will also be adapted to project locations. Collaborating with our clients, we will leverage our position to influence the choice of facility locations and on-site activities, all with the aim of protecting biological diversity.