Sustainability Report 2023

Sustainability Report

Aura Light is ISO-certified in quality, environmental management, and occupational health and safety (9001, 14001, and 45001) and a member of SBTi (Science Based Targets initiative).

We have conducted a materiality analysis and set clear goals to reduce our carbon footprint across the entire value chain by 2030.

90% of our products’ carbon footprint occurs during the usage phase, which is why it’s important for us to develop sustainable lighting solutions and guide the customer towards solutions that are sustainable over time.

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Sustainability is the way forward In a world facing environmental challenges, it is essential for companies to take responsibility and contribute to sustainable development. As a lighting provider with in-house manufacturing in Sweden, we can make a significant impact, both in terms of the company’s carbon footprint and by guiding our customers toward sustainable choices. This involves energy-efficient lighting and sustainable material selection, as well as creating good lighting for health and well-being.

In 2023, we established clear goals for our sustainability efforts, encompassing economic, social, and environmental sustainability.

It’s crucial that our partners and suppliers adhere to our code of conduct, that our employees have a safe working environment, and that our products contribute to reduced energy consumption. We have integrated some of the UN’s Sustainable Development Goals in Agenda 2030 into our long-term work, focusing on green energy, innovation, and sustainable consumption and production.

For example, we have a goal to increase the energy efficiency of our products from an average of 120 lumens per watt to 140 until 2030, as well as to increase the proportion of products with smart controls to ensure that they are not unnecessarily lit.

Our most significant opportunity to make a difference lies in ensuring that the market offers as energy-efficient and smart lighting solutions as possible, as 90% of our climate impact occurs during the products’ use phase. With our own production facility in Vimmerby, Sweden, and close relationships with our customers, we have also contributed to renovation projects over the past year where customers have retained parts of their lighting solution but upgraded to the latest technology. This enables reuse while making lighting more energy-efficient. We are at the beginning of our sustainability journey, and we look forward to sharing our work and progress continuously.

Henrik Håkansson CEO Aura Light

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Lower carbon footprint with sustainable material By choosing recyclable materials with low carbon dioxide

reduced to less than a quarter of the global average. Hydro

emissions, we actively contribute to reducing global

thus produces aluminum with one of the lowest emission

emissions.

levels in the world. Hydro Reduxa has a maximum CO2 of 4.0 kg per kilo of aluminum. Aura Light’s luminaire Helags is

For us, it’s important to choose materials that last over time

manufactured with Hydro Reduxa.

and leave as small climate footprint as possible. Thanks to energy-efficient technology, we contribute to our customers

Hydro CIRCAL

reducing their energy consumption, sometimes by as much

Hydro Circal is recycled aluminum made with at least

as 80 percent. We also choose our material with care when

75% recycled aluminum scrap after consumption. The 75%

creating new luminaires. Collaborating with multiple suppliers

recycled materials are exclusively from aluminum which has

challenges us to test new and more sustainable materials.

reached its service life and which is used and returned to

Today, we have a partnership with Hydro, which manufactures

the loop via recycling. The aluminum can, for example, come

some of our aluminum profiles using either low carbon dioxide

from demolished construction projects, food and beverage

or recycled aluminum.

containers and scrapped cars. Using recycled aluminum in the production process also means lower heat, which in turn

Hydro REDUXA

contributes to the need to generate less energy. Hydro uses

Hydro Reduxa is carbon dioxide-efficient aluminum when

only the finest and least polluted scrap materials to ensure

renewable energy sources such as water, wind and solar are

that no additional energy is used to recycle it. The luminaires

used in the production. Thanks to the use of renewable energy

Sevede, Exzite and Kvill are manufactured by Hydro Circal.

sources, carbon dioxide emissions per kg of aluminum are

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Step by step towards a sustainable production With knowledge of lighting, the potential to manufacture

Recycling for circularity

our own products and a long-term approach, we want

Together with Stena Recycling we can give old material new

to take an active role in creating sustainable lighting

life and all our waste is handled in a safe way.

alternatives, from raw material to finished product.

Minimal spillage, reduced transports and a safe environment With a factory and production line in Vimmerby, Sweden, we

We have a large machinery park that has served us well

are close to our customers. Here, we work on various aspects

for many years. As the old ones are replaced, we take the

including design, product development, testing, and upgrading

opportunity to choose energy-smart machines that provide

of lighting products. Our entire production is also located

minimal amount of waste and enable us to produce lighting

here, where we manufacture, assemble, package, and dispatch

in durable materials and in a greener way. Our goal is for all

our products. This means we have the flexibility to develop

machines to be examined from a sustainability perspective

a production line that is both sustainable and clean. It all

before purchasing for the best possible environmental choice.

started with the decision to go green and, among other things, choose green electricity. With an offshoot of the UN’s global

Much of our sustainability work results in one and the same

sustainability goals and target nine: Sustainable industry,

positive profit - reduced transport. Long and heavy transport

innovations and infrastructure, we go step by step towards

is a major environmental obstacle today and we want to pull

a more sustainable lighting production. All to meet the UN’s

our straw to the stack to reduce unnecessary transports. By

global sustainability goals.

continous work with smart packaging, logistics and less waste, we aim to transport greener.

Small efforts that make difference to the environment At Aura Light, we have reduced waste from cardboard with

With all the production in one place, we can easily monitor

over 30 percent by converting corrugated cardboard into

it step by step and ensure safe and minimal handling of

filling material that can be reused for deliveries. The cardboard

chemicals, smarter and more energy efficient production and

become shock absorbing mats that replace bubble wrap, paper

that all our employees can work in a safe, healthy and pleasant

and other packing material. An excellent way to reduce the

environment.

use of plastic and reduce our costs for purchasing packaging materials. Simply good, cheap and environmentally friendly!

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One step in the right direction Aura Light has joined the Science-Based Targets initiative and clear goals have been set to reduce our company's direct emissions by 2030.

This is SBTi The Science Based Targets initiative (SBTi) is a framework that assists companies and organizations in establishing science-based climate targets aligned with the objectives of the Paris Agreement, which aims to limit global temperature rise to 1.5 degrees.

As a member, it is our responsibility to actively reduce greenhouse gas emissions, we have therefore set specific targets to reduce our emissions by 50 percent in both Scope 1 and Scope 2 by 2030.

The SBTi is a collaborative effort between the Carbon Disclosure Project (CDP), The United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund For Nature (WWF).

Scope 1 covers emissions that directly originate from our operational activities, such as those from own factories.

Scope 2 encompasses indirect emissions resulting from the consumption of purchased electricity, steam, heating, and cooling by the reporting company.

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Certifications for sustainability Aura Light is ISO-certified in quality management, environmental management, and occupational health and safety management system.

Sustainability is fundamental to the company’s long-term success and an integral part of our management systems and good business practice.

Therefore, sustainability is included in the job descriptions within our organization. We also work with social responsibility based on ISO 26000.

ISO 9001 Quality Management.

ISO 14001 Environmental management.

ISO 45001 Occupational health and safety management systems.

CO²-emissions 2022 Category

Sweden

Norway

Finland

Germany

Totals tonnes

Energy consumption

8,67

2,25

5,97

2,70

19,59

Company Cars

79,06

20,91

18,31

60,63

178,90

Total percent/category Energy consumption

9,87

Company Cars

90,13

Total tonnes

198,50

CO²-emissions 2023 Category

Sweden

Norway

Finland

Germany

Totals tonnes

Energy consumption

11,09

2,44

5,97

2,70

22,20

Company Cars

69,47

26,56

18,31

60,47

174,81

Total percent/category Energy consumption

11,27

Company Cars

88,73

Total tonnes

197,01

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Materiality analysis 2023 We have identified four areas where we have the greatest opportunity to influence within the sustainability field.

These areas involve our impact in our product development, our work in logistics and procurement, our employees’ health and well-being, and finally, influencing the customer to choose sustainably.

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Product Development

Supply Chain

Operation

Customer Choice

Area

Production facility and development as well as in collaboration with strategic suppliers.

Products are purchased from third parties as well as components for own production.

About 150 employees in 4 countries, one production unit.

Sales of sustainable lighting to the the professional market.

Questions

∙ Energy efficiency ∙ Conscious choice of materials ∙ Climate footprint ∙ Product lifetime

∙ Efficient transport ∙ Reduced energy consumption and reduced CO2 emissions ∙ Code of conduct and quality requirements for our suppliers ∙ Reduce emissions and waste management of products and components ∙ Production/deliveries in our nearby area

∙ Systematic work environment work ∙ Health and well-being ∙ Competence development ∙ Diversity and inclusion ∙ Energy efficiency and travel

∙ Communicate and retrain sustainable lighting solutions ∙ Guide the customer to energy efficient choices with long life ∙ Economy and sustainability go hand in hand

Value adding

∙ Reduced impact from products in use ∙ Contribute to circular flows ∙ Sustainable material choices to contribute less virgin material that needs to be extracted from the ground ∙ Long service life of the installation

∙ Reduced CO2 emissions good for the climate ∙ More cost effective and climate-friendly transportation ∙ Ensured social sustainability ∙ Reduced waste and less emissions lead to better economic and ecological sustainability

∙ Safety in the work environment ∙ Employee engagement ∙ Increased knowledge ∙ Inclusion and diversity boost innovation and decision-makin ∙ CO2 savings

∙ Loyal customers ∙ Customers who install sustainable lighting solutions reduce their carbon footprint over the life of the product ∙ Educated customers and coworkers ∙ The sustainable solution is also economically beneficial during the period of use

Opportunity to influence

High

Medium

High

Medium

Our goals for sustainability Product Development

Operations

To increase our average

Improve well-being within the

product portfolio from 120

organization by establishing a

lm/W to 140 lm/W by

health year in 2024.

the year 2030.

Halve energy consumption in our Supply Chain

premises by 2030. Halve emissions

Ensure that all our

from our vehicles by 2030.

Customer Choices Increase sales of smart lighting controls by 10% annually until 2030.

suppliers have signed the Code of Conduct by

Host two sustainability

2024.

seminars per year.

Product Development

and in our immediate vicinity. We already collaborate with

With our own production facility in Sweden, we have the

several local actors for materials and components.

opportunity to develop our product range as sustainably as possible. Sustainability is integrated as a common thread

Operations

throughout the entire process from concept to finished

Our employees are our company! We will actively work on

product. We strive to develop luminaires that are as energy-

leadership development in the coming year and initiate health-

efficient as possible, using as little virgin material as possible.

promoting activities together. We have a systematic work

The product should also be as lightweight as possible. The

environment management system in place at our production

design and packaging should enable environmentally friendly

facility in Vimmerby according to ISO 45001:2018. As part of

shipping. By ensuring a long lifespan for our products, we

our SBTi work, we have goals to halve our energy consumption

reduce the number of products entering the market, and

in our premises and halve emissions from our company car

through careful material selection, we aim to develop materials

fleet by 2030.

that can be reused, with only the technology in the luminaire itself being upgradeable.

Customer Choices 90% of our climate impact occurs during the products’ usage

Supply Chain

phase. By offering the market as energy-efficient products

It’s important for us that our suppliers adhere to our code of

as possible, we contribute to a reduced carbon footprint.

conduct, something we actively work on together with our

Education and knowledge make it easier for the customer

partners. To learn more about our code of conduct we refer

to choose a sustainable solution. We continuously organize

to our brochure Code of Conduct. Through good delivery

seminars and training sessions to disseminate information

reliability, we can streamline shipments and reduce waste.

about sustainable lighting.

Long-term, the goal is to have most of our partners in Europe

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The United Nations’ Sustainable Development Goals The global goals for sustainable development have the power to create a better world, and we at Aura Light have embraced these to our business to be a part of creating a sustainable tomorrow. We have set goals to increase the energy efficiency of our products and to increase the products with smart lighting control to ensure that they do not shine unnecessarily.

These three are our selected goals.

Energy smart lighting

Innovation as a core value

Sustainable consumption

7.3 By 2030, double the global rate of

9.4 By 2030, upgrade infrastructure

12.4 By 2030, achieve environmentally

improvement in energy efficiency.

and adapt industries to make them

friendly management of chemicals and all

sustainable, with more efficient resource

types of waste throughout their life cycle.

utilization and increased use of clean and environmentally friendly technologies

12.5 By 2030, significantly reduce the

and industrial processes.

amount of waste through measures to prevent, reduce, reuse and recycle waste.

12.8 By 2030, ensure that people everywhere have the information and awareness needed for sustainable development.

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“By offering the market as energy-efficient products as possible, we can contribute to a reduced carbon footprint.”

Transport purchases Regarding shipments, we collaborate with the transportation company Fraktus. This collaboration means that we minimize emissions through carefully selected modes of transportation.

The goal is efficient deliveries, competitive prices, and minimal environmental impact. Air and express deliveries are only used on rare occasions. In 2023, we transported goods with emissions equivalent to 150,724 kg of CO2. The table below shows our total CO2 emissions from freight.

Transportation (tone)

2022 CO2

2023 CO2

Fraktus

158

150,7

Connected to systems for collection of electrical products We are connected to collection systems in the markets where we are active, by that we ensure that old electrical products are managed and recycled in an environmentally and legally compliant manner according to applicable laws. Examples of these organisations that we are members of is Elkretsen and NPA in Sweden, RENAS in Norway and Lars and Interzero in Germany.

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“The supplier must follow the local laws and regulations in the countries where the supplier is operating.”

Aura Light Supplier Policy

where the right of association is limited or under development,

We shall always comply with laws and regulations concerning

the supplier shall support that development and ensure

emissions and social conditions in our operations. Our key

that employees can meet the top management to discuss

suppliers must share our view on this, and therefore Aura

salary and working condition issues without any negative

Light requires suppliers to meet the following minimum

consequences.

requirements: • Employment contracts Legality of Operations and anti-corruption

The supplier shall follow local legislation. The employees shall

The supplier must follow the local laws and regulations in the

have written employment agreement. Working hours and

countries where the supplier is operating. Aura Light does not

salaries shall be clearly recorded and salaries shall be duly paid.

accept any form of corruption. This includes, but is not limited to, bribes, blackmailing and unfair competition.

Health and Safety issues The suppliers must secure that the workplace is safe and

Basic Employee Rights

that necessary precautions has been made to prevent

The supplier must comply with the below international

accidents. Measures to prevent and minimize the impact

conventions set by the UN and the ILO. This means minimum

of fires and other risks shall be taken. The employees shall

standards for the following 5 issues:

receive education on the safety regulations and proper use of machines and safety equipment.

• Human Rights Our suppliers shall comply with the UN Declaration on human

Environmental issues

rights.

The supplier shall comply with environmental standards applicable to the field of operations. This means following

• Child labor and forced labor

local laws and regulations as a minimum requirement. It also

No child labor or forced labor at Aura Light´s suppliers or

means that the supplier shall be aware of sustainable aspects

sub-suppliers is accepted. The use of such labor is a material

and the impact that their activities have on them. The supplier

breach to the supply agreement with Aura Light.

should have an action plan for reducing this impact.

• Discrimination

Supplier status and continuous improvements

The supplier shall not discriminate with regards to employees

Aura Light expects the supplier to be able to show us, or a

based on race, creed, sex, marital or maternal status, age,

third-party auditor, proof of the status of above demands.

political affiliation, national origin, sexual orientation, or any

Aura Light also expects the supplier to work in a structured

other basis prohibited by law.

and documented way with improvement of the issues covered by this Policy. Aura Light also requires the supplier to

• Freedom of association

communicate this policy to sub suppliers to create awareness

Freedom of labor unions and association rights as well as

about Aura Light requirements throughout the whole supply

right of collective bargaining shall be respected. In countries

chain.

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Employee well-being drives success We strive to support a work environment that stands for

The results of these surveys contribute to a key performance

entrepreneurship, autonomy, and efficiency, grounded

indicator - the Co-worker Engagement Index that we follow

in respectful and honest relationships. Our aim is to be a

and analyze. Our relationships, both internal and external, are

company where our people are empowered and motivated to

governed by our Code of Conduct, providing clear guidelines

make meaningful contributions, and we use the force of our

for ethical and respectful interactions. It's crucial for us to

differences as our strength to create a constant movement in

foster a company culture of equality, embracing inclusion and

our changing everyday life.

diversity at every level. Achieving a balanced workplace where everyone feels valued and included is a key priority for our

Our people are the heart of the company, and therefore, we

success.

place a strong emphasis on health. We work with focus on the relationship part of health and more specifically a common

Additionally, we make promises to our customers centered

view on our leadership, co-workership and team.

around our core values of Quality, Engagement, Flexibility,

In our commitment to sustainability, we measure amongst

and Speed, ensuring that we consistently deliver on our

other things the perceived well-being of our people through

commitments.

anonymous surveys on a regular basis.

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Sustainability Report - 2024-03-18

“We have set clear goals for our sustainability efforts, encompassing economic, social, and environmental sustainability.”