EN - ESG rapport 2023-24

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ELEVATING

ATMOSPHERES WITH RESPONSIBLY MADE ACOUSTIC SOLUTIONS

In a busy world like ours, calm and peaceful environments are more important than ever. To fully engage in social activities and promote mental and mindful awareness, we need an atmosphere that allows us to relax.

We create those kinds of atmospheres. At home. In the office. In restaurants and bars. Our Danish-made panels enhance both acoustics and aesthetics in any space they are installed. We take a no-compromise approach to the design of acoustic solutions, working purposefully to ensure that our solutions are not only practical, durable, and meaningful, but also fascinatingly discreet in their execution.

We are proud to be a forward-thinking company that is built on human values. Our products are created with the purpose of improving the quality of life for our customers. Our range brings calm, focus, and beauty to

everyday life – through excellent acoustic solutions designed for the future. We work with values of sustainability and the principles of circularity to design long-lasting and high-quality acoustic solutions.

We value fine craftsmanship, attention to detail, and the high quality of our products, just as we prioritize exceptional service. We place a high emphasis on responsible materials and processes. At the same time, we constantly strive to initiate activities that reduce our environmental footprint without compromising on details, quality, or design.

CONTENT

OUR CEO’S STATEMENT

Karl Frank Venø Nielsen 2023-2024 has been a year marked by significant progress for Fog & Venø. Through innovation, strategic partnerships, and investments in our production, we have strengthened our position in the market while embedding responsibility as a core value within our company. I would like to highlight some of the key achievements and steps we have taken on our ESG journey.

One of our most notable milestones was the achievement of Swan Label certification for our acoustic panel in a slatted design. This certification is not only a world first, but also proof of our ability to combine design, quality, and responsibility. After a year of intensive work with our suppliers and internal preparations, we can now offer a product that meets some of the strictest environmental and quality standards on the market. The certification is an important step towards more transparent and documented production processes.

We have also taken concrete steps to make our production more responsible. The installation of solar panels at the factory is a key part of this effort. The solar panels cover a signif-

”The installation of solar panels at the factory marks our first step in a long-term strategy to reduce our carbon footprint and achieve both economic and environmental benefits.”

icant portion of our electricity consumption and mark our first step in a long-term strategy to reduce our carbon footprint. It is investments like these that ensure we can achieve both economic and environmental benefits in our production.

With the establishment of our production at Drejervej 2, we have gained access to 20,000 m² of state-of-the-art production facilities, significantly increasing our capacity and flexibility. This expansion allows us to produce up to 15,000 panels per day and meet growing demand both nationally and internationally.

The relocation has also allowed us to optimize workflows and implement more efficient production methods, strengthening our competitiveness.

An important organizational milestone has been the appointment of Ole Madsen as CFO. His financial expertise strengthens our leadership team and ensures we have the right skills to handle the growth and complexity that comes with our expansion. At the same time, the merger with Denlab as a sister company has opened new opportunities. Denlab, formerly known as Denwood, is a socially responsible company with a strong tradition of including vulnerable groups in the labor market. The merger supports our focus

on social responsibility and strengthens our position as a company that makes a difference – for people as well.

On the product front, we have made a mark with the launch of the FR Felt panel, a world first in acoustic panels. This product represents a breakthrough in combining functionality, fire safety, and aesthetics, and we see great opportunities in both existing and new markets.

Recognition is also an important part of our journey. Winning the Growth Entrepreneur Award from the Business Council Herning and PWC’s Owner Leader of the Year in region is a clear indication that we are on the right path. These awards reflect not only our ability to innovate but also the dedicated work our employees put into the company every day.

Internally, we have strengthened our organization through extensive LEAN training for all employees. This initiative has not only increased efficiency but also created a stronger culture of continuous improvement and collaboration across the company.

Finally, our partnership with FCM Samfund is an important part of our commitment to the local community. Through this partnership, we actively contribute to social initiatives that make a difference for people, and we see it as a natural extension of our values as a company.

These achievements mark a year of growth and innovation, where we continue to balance the commercial needs of the business with our responsibility towards people and the environment. We look to the future with ambitions to maintain and expand our position as a company that creates value – both in the market and in society.

PROUD PARTNER IN FCM SAMFUND

At FOG & VENØ, we are proud to be a partner in FCM Samfund – FC Midtjylland’s social responsibility program, which strives to create positive change in the Central Jutland region. Through sports and community, FCM Samfund promotes well-being, health, and inclusion, with a special focus on supporting vulnerable groups and young people.

Our partnership goes beyond financial support. We actively contribute our network, resources, and expertise to strengthen the program’s efforts and

capacity. Together, we share a vision of creating social change that enhances young people’s personal and professional development through education and meaningful activities.

The partnership reflects FOG & VENØ’s values of responsibility and commitment to the local community. We look forward to continuing our support for FCM Samfunds important work and being an active part of their mission to make a difference in the region.

WORLD PREMIERE: NORDIC SWAN

ECOLABEL ACOUSTIC

PANELS

Fog & Venø has become the first company in the world to achieve Nordic Swan Ecolabel certification for our acoustic panels with a slatted design. This milestone sets a new standard for more sustainable building materials and supports our ambition to provide solutions that combine high quality with responsible production.

The Nordic Swan Ecolabel is one of the most stringent environmental certifications, setting strict requirements for the entire product lifecycle – from material selection to manufacturing, use, and disposal. Our acoustic panels meet these requirements by minimizing environmental impact without compromising on aesthetics or functionality.

This world premiere is the result of dedicated innovation and close collaboration with our suppliers. We are proud to offer the market a certified solution that simplifies sustainable and responsible choices for our customers.

Facts About Nordic Swan Ecolabel Acoustic Panels

• World Premiere: Fog & Venø is the first manufacturer in the world to offer Nordic Swan Ecolabelled acoustic panels with a slat-based design.

• Stringent Requirements: The certification covers the entire product lifecycle –from material selection to disposal.

• Environmentally Responsible Choices: Nordic Swan Ecolabelled panels make it easier for customers to choose sustainable solutions.

QUALITY, INNOVATION, AND RESPONSIBILITY – OUR CORE VALUES IN EVERYTHING WE DO

Our company is built on three core values that form the foundation of everything we do. These values guide us in our decisions, our development, and the way we conduct our business.

Quality

We place great emphasis on meticulous craftsmanship and uncompromising quality in all our products. Our acoustic panels are made from carefully selected materials and undergo strict quality controls to ensure they meet our high standards. We strive to deliver solutions that not only meet but exceed our customers’ expectations, contributing to healthier and more comfortable indoor environments.

Innovation

We are constantly seeking new ways to challenge the status quo and set new standards in sustainability and design. Through continuous research and development, we aim to create innovative acoustic solutions that combine aesthetics with functionality. Our goal is to offer products that are not only visually appealing but also make a positive impact on the environment and society.

Responsibility

We integrate environmental considerations throughout our value chain – from material selection to production and packaging. We prioritize the use of recyclable materials and actively work to minimize our environmental footprint. Our commitment to responsibility is also reflected in our social initiatives, as we strive to make a positive impact on the communities we are part of.

ACOUSTICS AND AESTHETICS WITH A VISION FOR THE FUTURE

At FOG & VENØ, our mission is to create solutions that enhance both the acoustics and aesthetics of spaces, whether in private homes, workplaces, or public environments. We are dedicated to combining functionality and design with a responsible approach to both the environment and society.

Our acoustic panels are more than just products – they represent a significant contribution to healthier indoor climates and more inspiring surroundings. We strive to develop solutions that make a difference in daily life while being designed with care for future generations.

Through innovative materials and production methods, we ensure that our products meet the highest quality standards. Our approach is built on a holistic mindset, considering not only the aesthetic and functional aspects but also the impact we have on the world around us.

With respect for nature’s resources and a strong commitment to contributing positively to society, we aim to create solutions that promote well-being – both today and for generations to come.

SOLUTIONS THAT MAKE A DIFFERENCE

We aspire to be the leading provider of responsibly produced acoustic panels and to inspire others in the industry to adopt greener practices. Our vision is to create products that not only enhance quality of life but also respect the planet’s resources.

”Our vision is to create products that both enhance quality of life and respect the planet’s resources. ”

FAMILY VALUES AS A FOUNDATION

As a family-owned company, we cherish our roots and values. Collaboration, mutual respect, and a passion for quality are the foundation of everything we do. We prioritize creating a workplace where innovation thrives, and where each employee feels like an important part of our shared journey towards a more sustainable future.

ESG FRAMEWORK

Environment

We prioritize sustainability throughout our entire value chain. From the selection of materials to production processes and packaging, we actively work to minimize our environmental footprint. Our goal is to combine innovation and responsibility to contribute to a more sustainable future.

Society

People are at the heart of everything we do. We work to promote well-being and inclusion both within our company and in the communities we are a part of. Through social initiatives and partnerships, we contribute to making a positive difference for those around us.

Governance

We take pride in having a transparent and responsible management practice. With strong ethical principles and a focus on accountable governance, we ensure that our company is run in a way that builds trust and long-term value for all our stakeholders.

Fog & Venø’s Stakeholder Design

Local Community Owner/ Investors

EXTERNAL STAKEHOLDERS

INTERNAL STAKEHOLDERS

The Board Management

Employees

Customers Banks Partners

The Company

Internal Stakeholders

External Stakeholders

Suppliers

MATERIALITY ASSESSMENT AND ESG STRATEGY

The Foundation for Fog & Venø’s Future

To ensure that this report reflects the most significant issues for Fog & Venø, we have conducted a dual materiality assessment based on input from the company’s internal stakeholders. This approach has enabled us to identify the areas that are most important to both our organization and the external environment in which we operate.

In the coming period, we will expand this analysis to include a full dual materiality assessment that also incorporates external stakeholders. This process will provide an even stronger foundation for identifying and prioritizing the ESG issues that are central to both our stakeholders and our long-term strategy.

As part of this effort, an ESG steering committee was established at Fog & Venø over the past year. The steering committee is composed of representatives from across the organization, ensuring that relevant internal stakeholders are involved. It is this committee that has defined the requirements for the content of the current ESG report.

We view this structure as a crucial foundation to ensure an integrated approach to ESG, where both internal and external perspectives are considered, and where we can continuously adapt our efforts to meet the demands and expectations that are relevant for our company and the environment in which we operate.

ENVIRONMENT

We prioritize sustainability throughout our entire value chain. From material selection to production processes and packaging, we actively work to minimize our environmental footprint. Our goal is to combine innovation and responsibility to contribute to a more sustainable future.

Scope 1

Direct emissions

Natural gas for heating

Wood pellets

Diesel fuel for trucks

Gasoline for company cars

Electricity for company cars

Total Scope 1 emissions (tons) CO2e

Total Scope 1 emissions (tons) CO2e in 2023/2024

Total Scope 1 emissions (tons) CO2e in 2022/2023

Total Scope 1 emissions (tons) CO2e in 2021/2022

CO2e reduction of approximately 69,1% from 2022/2023

DIRECT EMISSIONS

Scope 1 emissions were significantly reduced from 76.09 tons CO2e in 2022/2023 to 23.48 tons CO2e in 2023/2024 – a reduction of 69.1%.

The most significant change is due to our transition from using natural gas for heating to using wood pellets, a more CO2-neutral energy source. This shift has reduced our dependence on fossil fuels and has been a key part of our strategy to reduce direct emissions.

Contributions to the reductions include:

A significant decrease in diesel consumption for trucks, from 46,899 liters to 22,852 liters, resulting from optimization of logistics and transportation.

A reduced use of gasoline for company cars, reflecting a transition to more energy-efficient vehicles and electrification.

The overall development in our Scope 1 emissions reflects our ongoing efforts to reduce our environmental footprint and support the transition to more sustainable energy sources and transportation solutions.

Percentage distribution of direct emissions 2023/2024

Environment – Sustainable Operations

Scope 2

In 2021, greenhouse gas emissions were 412 g CO2 per kWh. In 2022, they increased to 443 g CO2 per kWh, and in 2023, they reached 499 g CO₂ per kWh. As the CO2 values for 2024 are not yet available, the 2023 level is being used.

Total Scope 2 emissions (tons) CO2e in 2023/2024

Total Scope 2 emissions (tons) CO2e in 2022/2023

Total Scope 2 emissions (tons) CO2e in 2021/2022

Information regarding fuel distribution and environmental impact related to electricity production in Denmark comes from energinet.dk and energistyrelsen.dk.

INVESTMENT IN RENEWABLE ENERGY

Scope 2 emissions, covering electricity consumption for facility operations, were reduced from 324.60 tons of CO2e in 2022/2023 to 314.50 tons of CO2e in 2023/2024.

At Fog & Venø, we are taking significant steps toward a greener future with our latest investment in renewable energy. We are in the process of installing 628 solar panels on the roof of one of our production buildings, marking an important milestone in our efforts to reduce the environmental impact of our operations.

With a total area of 1,256 m², the system is expected to provide a capacity of 257.5 kWh. This means that the solar installation will cover approximately one-third of our total electricity consumption, making a significant contribution to more responsible energy use in our production.

As part of the initiative, we have also prioritized employee involvement. A visual monitor in the production area allows our employees to track energy production and gain insights into how renewable energy contributes to the company’s daily operations.

This investment is part of our overall strategy for green transition and responsible growth. We look forward to continuing our work to create a more sustainable future.

Percentage distribution between external energy sources and the company’s own solar energy production in the period 2023/2024.

Grid electricity 89,8%

Solar panel system 10,2%

The total amount of solar energy for the period 2023/2024 is 65,863 kWh. This includes 20 grams of CO2e/kWh for the company’s own electricity production.

330,374 312,201

FOG & VENØ

(Location-based)

PERCENTAGE DISTRIBUTION OF SCOPE 1 AND SCOPE 2

Scope 1: Own combustion of fuels, processes, production, and transportation.

Scope 2: Purchased electricity, heating, and cooling.

SOCIETY

People are at the heart of everything we do. We work to promote well-being and inclusion both within the company and in the communities we are a part of. Through social initiatives and partnerships, we contribute to making a positive difference for those around us.

Total number of employees in 2023/2024

Total number of employees in 2022/2023

Total number of employees in 2021/2022

A GOOD WORK ENVIRONMENT AS THE FOUNDATION

At Fog & Venø, a good work environment is a cornerstone of our company. We strive to create an environment where our employees thrive, feel valued, and have the opportunity to contribute to the community. To ensure this, we continuously monitor employee satisfaction through surveys and monthly pulse checks. These provide us with valuable insights into what is working well and where we can make improvements to strengthen the work environment further.

As part of our efforts to create a healthy and developmental work environment, we also offer training and workshops on relevant topics such as sustainability, certifications, and our internal standards. These activities enhance employees’ understanding of important areas and enable them to actively contribute to our work with responsibility and quality.

This combination of continuous well-being monitoring and targeted competence development not only creates a better workplace but also strengthens our shared focus on driving Fog & Venø forward as an innovative and responsible company.

The percentage distribution of gender for 2023/2024

Men 67%

Women 33%

Systematic focus on the work environment

Fog & Venø has a dedicated occupational health and safety organization that works purposefully to ensure a healthy and safe working environment for all employees. As part of this effort, we regularly conduct workplace assessments (APV) to identify risks and areas for improvement. The results from the APVs form the basis for specific actions that improve both the physical and psychological aspects of the workplace.

This systematic approach supports our ambition to create a workplace where well-being and safety go hand in hand with efficiency and quality.

PULSE SURVEYS AS PART OF AN ONGOING EFFORT

To ensure continuous focus on the work environment, we have implemented monthly pulse surveys during this period. These smaller surveys provide us with a quick and accurate insight into employee well-being and the work environment. The pulse surveys allow us to respond proactively and launch initiatives that continuously improve working conditions and ensure that employees feel heard and valued.

Introduction to Employee Satisfaction

At Fog & Venø, employee satisfaction is a central priority, as our employees are the foundation of the company’s success. To ensure a healthy work environment and understand areas where we can improve, we conduct regular employee satisfaction surveys. These surveys give us valuable insights into both strengths and challenges within the organization and form the basis for our ongoing development.

Based on the latest employee satisfaction survey, we have calculated an overall satisfaction percentage that represents employees’ experiences across key areas such as influence, work quality, collaboration, and work-life balance. The results show generally high satisfaction while also identifying specific areas where we can focus to further strengthen well-being and engagement.

Employee Satisfaction Percentage 2023/2024

80.5% employee satisfaction (out of 100%)

FUTURE GOALS FOR EMPLOYEE SATISFACTION

Based on the analysis, we look forward to launching targeted initiatives that can further enhance employee satisfaction. We recognize both the areas where we are already strong and those where there is room for improvement. As part of our strategic effort, we have an ambitious goal of increasing overall employee satisfaction to 95%.

This goal supports our vision of creating a workplace where well-being, engagement, and collaboration go hand in hand with high productivity and quality. We will continue to monitor satisfaction and use data from future surveys as a guide for our efforts.

COMPETENCE DEVELOPMENT AND WORK ENVIRONMENT: IMPLEMENTATION OF LEAN PRINCIPLES

As part of Fog & Venø’s production strategy, we have integrated LEAN principles as a central tool to strengthen efficiency and create more value in our work processes. To ensure that all employees have the necessary skills to work within this framework, we have implemented a comprehensive competence development effort, where the entire organization has participated in a LEAN basic training course.

All employees have now achieved certification at the yellow belt level in LEAN. This gives employees a fundamental understanding of how LEAN principles can be applied in practice to improve work processes, reduce waste, and enhance collaboration across departments. Addi-

tionally, our internal trainers have undergone further education and obtained a black belt in LEAN, which qualifies them to act as coaches and mentors within the company.

This initiative not only helps optimize production but also contributes to a stronger work environment, where employees feel competent, involved, and motivated. By investing in employees’ skills, we are not only creating better processes but also a culture characterized by learning, engagement, and continuous improvement.

EMPLOYEE INVOLVEMENT IN CONTINUOUS DEVELOPMENT

As part of our focus on continuous improvements, we have implemented improvement boards in production. These boards provide employees with a platform to share their ideas, report shortcomings, and offer suggestions for optimizing work processes.

The purpose of the improvement boards is to strengthen employee involvement and ensure that everyone has a voice in the development of our production methods. By making suggestions visible and addressing them, we contribute to a culture where innovation and improvements become a natural part of everyday work.

This initiative is an important tool in our work with LEAN principles and supports our goal of creating a more efficient and engaging workplace.

Number of workplace accidents

SAFETY AND ASSURANCE IN THE WORKPLACE

During this period, Fog & Venø has focused on strengthening the work environment through both strategic and operational initiatives. As part of our efforts, we have conducted a workplace assessment (APV) and subsequently developed an action plan to address the identified challenges. This action plan forms the basis for our ongoing efforts and is continuously evaluated and adjusted during our team meetings.

To ensure a structured approach to work environment and safety, we track workplace accidents and near-misses through two systems: Reportable accidents are reported to the public system Virk, while other incidents are submitted via Jotform to our safety group. This provides us with a detailed overview of incidents and enables us to act proactively.

Work Environment Data 2023/2024:

• Serious workplace accidents: 2 incidents, one of which resulted in absenteeism (fall from a ladder).

• Other incidents: 8 near-miss accidents were recorded.

• Initiatives: Completed workplace assessment (APV) with an action plan and follow-up meetings to address incidents and improvements.

We are focused on further reducing the number of accidents through continued attention, dialogue, and the implementation of preventive measures. Our goal is to create a safe workplace where the risk of accidents is minimized, and employee well-being is enhanced.

Tracking and Initiatives

Workplace Assessment (APV) completed: Yes

Action plan created: Yes

Follow-up meetings: Ongoing

Registration methods: Virk for serious incidents, Jotform for other incidents

GOVERNANCE

We take pride in having a transparent and responsible leadership practice. With strong ethical principles and a focus on responsible governance, we ensure that our company is operated in a way that builds trust and creates longterm value for all our stakeholders.

OUR COMMITMENT TO

ETHICAL

GOVERNANCE AND DIVERSITY

We actively work to ensure that both we and our customers and suppliers operate our businesses in a responsible manner. We encourage our partners to make ethical choices and implement business practices that promote responsibility and transparency.

Good corporate governance is a core value for us, and we always strive to stay updated on relevant policies, regulations, and requirements to ensure we meet the highest standards. Our internal policies serve as the foundation for our actions, ensuring we operate with credibility, ethics, and respect for our surroundings.

At the same time, we place great emphasis on creating a workplace that fosters both professional and personal

development for our employees. We aim to create an environment where ambitions can flourish, and where diversity and inclusion are valued as strengths –in leadership, in teams, and across the organization. It is important to us to build a culture where everyone feels included and has the opportunity to contribute their unique perspectives and skills.

Our commitment to ethical governance, responsibility, and diversity is not only part of our values – it is a driving force that ensures we continue to evolve as a credible and innovative company.

STRONG INTERNAL POLICIES AND RESPONSIBLE INITIATIVES

We are committed to a series of internal policies and systems that ensure responsible operations. These include a data protection policy that ensures compliance with applicable legislation, as well as a quality control policy that supports high standards in all processes.

We prioritize employee development through policies for training and development opportunities, and we actively work with workplace assessments (APV) and performance reviews (MUS). Additionally, we have a robust IT policy and security protocols in place to protect the company and our stakeholders.

To promote transparency and accountability, we offer a whistleblower system that allows employees to report irregularities anonymously. We also focus on diversity and gender balance in both leadership and the board of directors to ensure representation and equality across the organization.

Internal Policies and Systems

• Data Protection Policy

• Quality Control Policy

• Training and Development Policy

• IT Policy and IT Security

• Whistleblower System

• Workplace Assessment (APV) and Performance Reviews (MUS)

• Achieving Diversity Balance Across the Board, Executive Leadership, and Management Teams

OUR COMMITMENT TO RESPONSIBLE FORESTRY

At Fog & Venø, we are committed to ensuring that all the wood we use comes from responsibly managed forests. Our goal is for 100% of our wood purchases to be FSC®-certified, which documents that the wood is produced with consideration for environmental, social, and economic standards.

This goal is a central part of our procurement strategy and reflects our ambition to promote responsible forestry. Through collaboration with certified suppliers,

we aim to contribute to the protection of biodiversity, ensure fair working conditions, and support responsible forest management practices.

We view FSC certification as a guarantee that our wood products meet the highest standards of responsibility and transparency throughout the supply chain.

GOAL FOR RECYCLED PLASTIC AND CIRCULAR ECONOMY

At Fog & Venø, we have a clear goal that all plastic used in our products should be made from recycled plastic. This strategy is a key part of our efforts to integrate the principles of circular economy into our production.

By using recycled plastic, we help reduce the demand for virgin plastic materials and promote more efficient resource use. Our goal is to create a value chain where plastic materials remain in circulation, are recycled, and thus reduce the environmental impact of both production and disposal.

This approach is a central part of our strategy for responsible material management, where we balance high product quality with a long-term focus on resource efficiency and circular economy.

Objectives:

• All wood materials purchased must be FSC certified.

• All plastic purchased for the product must be made from recycled plastic.

• All waste must be recyclable.

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