SUSTAINABILITY REPORT 2017
2
CONTENTS
ABOUT THIS REPORT
4
CEO’S STATEMENT
5
NILSONGROUP IN BRIEF
6
OUR CONCEPTS
7
OUR COMPASS
8
SUSTAINABILITY RISK ANALYSIS
9
OUR STAKEHOLDERS
10
STAKEHOLDER DIALOGUE AND MATERIALITY ANALYSIS
11
PRODUCT DEVELOPMENT
12
OUR VALUE CHAIN
12
STUDIO SWEDEN
14
AN INTERVIEW WITH OUR TECHNICAL DIRECTOR
15
PRODUCTION
16
LOGISTICS
22
SALES
24
PRODUCT USE – LONG LIVE OUR SHOES
28
EMPLOYEES
29
FEETFIRST ACADEMY
31
COLLABORATION AND SOCIAL COMMITMENT
32
GRI CONTENT INDEX
34
NilsonGroup aims to drive sustainable development for the Nordic footwear industry. We aim to conduct our operations based on sound ethics, and to promote sustainable development through our entire supply chain, from product development to in-store sales, in accordance with our vision and business concept. NilsonGroup’s sustainability policy.
3
ABOUT THIS REPORT SUSTAINABILIT Y REPORT 2017
This is NilsonGroup’s statutory sustainability report pursuant to Chapter 6 of the Swedish Annual Accounts Act. The report was prepared in compliance with the Core Option of the GRI standards. In addition to the required aspects, we have opted to report on additional aspects of material importance to our business. The purpose of this report is to present the company’s sustainability efforts throughout
the entire supply chain, from the design phase until the customer takes the product home. The report aims to explain to our stakeholders how we incorporate sustainability into our operations, what risks we face in doing so and how these risks are managed. On page 9, there is more detailed information on the sustainability risks associated with environmental care, working conditions, human resources and corruption, and about our internal procedures and governing documents.
The report refers to our efforts during calendar year 2017. The previous report presented our efforts during calendar year 2016 and was published in spring 2017. We have not found any inaccuracies in the 2016 report. To allow comparisons to be made with earlier reports, we have presented historical KPIs reaching back three years. This report covers all of our operations, as far as is possible. The report has not been audited by an external party.
We put feet first.
SUSTAINABILITY – IT’S A GIVEN We are convinced that an issue as important as creating a sustainable future must include all aspects of society. Our sustainability efforts cover environmental care, social responsibility, human resources, human rights and anti-corruption. Politicians, industry and civil society all have important roles to play. We work with the sustainability aspects mentioned above, from our position as a leading player in the Scandinavian footwear industry with production in several Asian countries. At NilsonGroup, we meet our challenges with enthusiasm and responsibility. We’re convinced that sustainability management has enormous development potential. Daring to be innovative is a deeply rooted part of our corporate culture. We address sustainability at every stage of our supply chain – from the initial idea to the shoes purchased by our customers. NilsonGroup strongly condemns all forms of corruption and bribery. Our employees are expected to conduct themselves with honesty and transparency towards customers, suppliers and colleagues. All our dealings must be of a professional and workrelated nature. We are open to suggestions and seek an active dialogue with our partners and stakeholders. Do you have questions, views or tips regarding sustainability? Don’t hesitate to share them with us on csr@nilsongroup.com. You can read more about our sustainability efforts on feetfirst.se/omoss/vart-ansvar.
4
CEO’S STATEMENT EXPANDED RANGE AND INTEGRATED SERVICES
2017 was generally a tough year for the footwear industry. In light of this, we are pleased that our stores predominantly selling NilsonGroup’s shoe brands continued to enjoy positive growth. During the year, we forged ahead with our efforts to develop larger stores with an expanded range of products and integrated services. This work will continue during 2018. NilsonGroup aims to offer customers a clear concept with a wide range of choice and the best quality at the best price. Having larger stores will make our store operation more flexible and efficient. In turn, this will enable us to free up more time for personal interaction with customers as well as reduce our transports. In parallel with the expansion of our physical stores, we have been working intensively on developing our e-commerce and other digital channels. This work is currently in progress, and is aimed at gathering together all our concepts in a single website to meet customer needs and adapt to changing consumer patterns. During the year, we also expanded our customer club FEETFIRST Friends and launched it in Norway and Finland. Moreover, we are proud to announce that our prototype workshop, Studio Sweden, opened at our head office in Varberg, Sweden in 2017. Having our own studio raises our employees’ expertise and speeds up the process of transforming ideas into
new products. By finding the best solutions for each product at an early stage in the development process, we increase the quality and lifespan of our shoes. We are also seeing positive results from having increased our technical expertise and number of employees in development and production as part of our long-term quality improvement efforts. The number of complaints we receive, which was already low, decreased further during the year and is now at a record low. We are delighted about this, as we know that a growing awareness regarding sustainability is increasingly causing customers to seek out and expect high-quality shoes with a long lifespan. We have also initiated efforts to increase the proportion of sustainable materials in our shoes, and these efforts will continue in 2018. At NilsonGroup, we place high value on employee satisfaction. One of our long-term goals is to be the footwear industry’s most attractive employer. To assess the current situation, we carried out an Employee Motivation Index twice during the year. The results were encouraging. To ensure our continued success, it is crucial for all employees to be given the right conditions to succeed in their daily work. During the year, seven new training courses were added to the FEETFIRST Academy, our online development programme for store staff. These courses make it easy for us to provide tailored training to employees throughout the country.
lessen our environmental impact. For instance, by using a new type of boxes, we have reduced the total freight volume from our production offices in China. Moreover, by introducing cross docking, where incoming goods are delivered directly from port to store, we have also decreased our freight volume in Sweden. The positive results we achieved together in 2017 bode well for the company’s continued success from a financial, social and sustainability perspective. I would like to thank all our employees for their excellent efforts, and look forward to another year of creating the highest possible value for our customers. Together, we will continue working towards our goal of becoming Scandinavia’s leading shoe destination.
Mats Nilsson, CEO NilsonGroup AB
During the year, we continued working to decrease our transport and, as a result,
By finding the best solutions for each product at an early stage in the development process, we increase the quality and lifespan of our shoes. 5
NILSONGROUP IN BRIEF OWNERSHIP AND BOARD OF DIRECTORS
FIGURES
NilsonGroup AB is a private company owned by
Net sales 2017: MSEK 2,268
Skofemman AB, which is in turn owned by N3 Group AB.
Total assets: MSEK 1,064 , of which (liabilities) MSEK 349
The Board of NilsonGroup AB consists of founder Rolf
and (shareholder’s equity) MSEK 715
Nilsson’s three children, who are also the owners, along
Number of employees: 1,201 (converted into full-time
with two representatives. The Board is comprised of 60%
positions)
women and 40% men. The age distribution is 60% >50
Number of stores in Sweden, Norway and Finland: 238.
MANAGEMENT TEAM
GEOGRAPHIC LOCATION
The Company’s management team is comprised of the
The Company’s head office is in Varberg on the west coast of
CEO, the Deputy CEO, business area managers and the
Sweden. The Company has branches in Norway and Finland.
heads of sales, finance, IT, logistics, marketing, business
We have two production offices in China, one in Wenzhou
development and HR.
and one in Quanzhou.
FIGURES IN BRIEF
SW
NO
FI
TOTAL
FULL-TIME
320
14 6
21
4 87
PART-TIME
1313
253
147
1713
WOMEN
15 01
388
15 9
2048
MEN
13 2
11
9
15 2
TOTAL*
9 87
13 9
75
1201
NUMBER OF STORES
18 2
37
19
238
* Converted into full-time positions.
ORGANISATION CHART
CEO
Deputy CEO
Marketing
Sales
IT
HR
Business development
Finance
NG Far East
Supply chain
*
* Franchise-based stores. ** With the sub-brands Jerns and Radical Sports.
6
**
Logistics
OUR CONCEPTS
DIN SKO - With a wide and fashionable range of shoes coupled with
ECCO – Comfort, function and quality are the key values that underpin
NILSON SHOES – With high fashionability, service and knowledge, we offer an unbeatable selection of the market’s popular shoe brands.
JERNS – With high fashionability and knowledge, we offer an
RADICAL SPORTS – With high service and knowledge, we
SKOPUNKTEN – With a wide selection of fashionable shoes at low prices combined with unique special offers, we give customers a secure and simple shopping experience.
an attractive offering, we create a strong shopping experience for trend-conscious consumers.
offer the latest sport fashions from leading brands. Everything you need for the urban life. The best of sneakers.
our Ecco concept.
unbeatable selection of top quality classic shoe brands.
7
OUR COMPASS
SHOES ARE OUR CORE BUSINESS Our success is based on high-quality, fashionable footwear designed under clear concepts. By working with high volumes, we offer customers good shoes at cheaper prices, rather than cheap shoes.
OUR CUSTOMERS ARE OUR MOST VALUABLE ASSET NilsonGroup exists thanks to our customers, and our employees are here for them. The key to our success is creating satisfied, returning customers who want to recommend us to others.
WE ARE MORE THAN A FOOTWEAR CHAIN
OUR WORK HAS A STRONG INFLUENCE ON OUR SURROUNDINGS
With long experience and an integrated customer value chain, we possess unique expertise and possibilities. We take responsibility for all aspects from design and product development to in-store customer interaction and our digital communication. We package and present our values through our concepts.
Our workplace is valuable to more people than our employees. Our business has an important impact in the municipalities where we operate, and in the entire footwear industry in Sweden, Norway, Finland and our production countries.
WE MAKE ADDED VALUE FOR OUR CUSTOMERS
WE ARE PROUD OF OUR HISTORY
With genuine interest, we inspire and guide our customers to help them find the best products for their needs. Our expertise and commitment are crucial to customer experience.
With pride and humility, we nurture our history, our corporate culture and our heritage.
OUR CORE VALUES – CENT
VISION THE NORDIC SHOE DESTINATION
MISSION WE PUT FEET FIRST
C
WE THINK ABOUT CUSTOMERS
E
WE THINK EASY
N BUSINESS CONCEPT TO MAKE BUYING SHOES SIMPLE, FUN AND INSPIRING.
8
T
We see everything from the customer’s perspective. Whatever our job is, our actions are always governed by customers’ needs.
We take the straightest route between two points. We always use as few intermediaries as possible and embrace the challenge of making attractive, high-quality products while keeping things simple.
WE THINK NEW We love to challenge. We are curious and have the courage to try new things.
WE THINK AND SHOW TRUST Everyone thrives and develops best when they are given trust and responsibility. Our trust of people is the foundation for the positive attitude that we want to permeate everything we do.
SUSTAINABILITY RISK ANALYSIS IDENTIFIED RISK AREAS
STAGE OF SUPPLY CHAIN
MEASURES
GOVERNING DOCUMENTS
ENVIRONMENT Limited natural resources
Whole supply chain
Emissions
Production, logistics
Sustainable materials Active quality management Start of product reuse initiatives Active efforts to increase environmental initiatives in factories Monitoring of waste management and emissions Active efforts to reduce transport Chemical restrictions
Energy consumption
Product development, production, sales
Control of energy consumption Head office, Stores, Factories
Water consumption
Production
Monitoring of water consumption and factory emissions
Environmental policy Sustainability policy Restricted Substances List (RSL) Code of conduct
SOCIAL CONDITIONS AND EMPLOYEES Wages and salaries
Production, employees
Overtime Health and safety
Production Production, employees
Code of conduct updated with guidelines on living wage Contractual starting salaries Continuous efforts to promote equal remuneration Regular monitoring of overtime during factory visits Regular H&S training in factories Regular monitoring of H&S training in factories Regular monitoring of production chemicals Systematic health and safety efforts Health and safety committee at Head Office Regular training in factories Regular inspections at factories Regular inspections at factories, as needed Training in labour law for managers at HQ, stores Training in document management and management systems at factories
Code of conduct Group policy Diversity policy Restricted Substances List (RSL)
Right to free trade union organisation Worker accommodation Management systems
Production
Access to clean water
Production
Regular inspections and follow-up at factories
Disciplinary actions Discrimination
Production Production, sales, employees
Forced labour
Production
Young workers
Production
Diversity policy Group policy Code of conduct
Child labour
Production
Regular training and inspections during factory visits Regular training and inspections during factory visits Training in labour law for managers at HQ and stores Induction training, policies Zero tolerance in code of conduct and regular inspections during factory visits Regular inspections during factory visits, regulations and follow-up as needed Zero tolerance in code of conduct and regular inspections during factory visits
Regulations regarding corruption Induction training for new employees and labour law training for managers Training and dialogue with suppliers Procedures for rotation of staff members who deal with our factories
Group policy Code of conduct
Production Whole supply chain
RESPECT FOR HUMAN RIGHTS
ANTI-CORRUPTION Corruption
Whole supply chain, employees
9
OUR STAKEHOLDERS
OWNERS
CUSTOMERS We want to be easily accessible to our customers and always aim to respond quickly to customers in stores, online, via our website, in social media and by email.
Sound, profitable investments are crucial to the company’s future success. Positive growth is crucial in order for NilsonGroup to continue conducting ambitious and responsible sustainability efforts.
PUBLIC AUTHORITIES We aim to contribute to improving the sustainability of the industry as a whole, and our collaboration with public authorities plays an important part in achieving this goal. For instance, we impose strict requirements on the handling of chemicals in our production factories as well as in our products.
EMPLOYEES
SUPPLIERS
We are convinced that conducting integrated sustainability efforts is crucial to achieving employee satisfaction and being an attractive employer.
Through our production offices, members of our staff can visit suppliers’ factories and communicate directly with suppliers without intermediaries.
NETWORKS AND COLLABORATIONS By collaborating with other players, we increase our possibilities of influencing our surroundings and promoting industry development.
FREIGHT CARRIERS
NON-PROFIT ORGANISATIONS
The majority of our products are manufactured in Asia, and transportation is an important part of our supply chain. We choose transportation partners that conduct systematic quality and environmental efforts.
We believe that maintaining a direct, open and respectful dialogue with non-profit organisations benefits our sustainability efforts.
We are convinced that conducting integrated sustainability efforts is crucial to achieving employee satisfaction and being an attractive employer.
10
MATERIALITY ANALYSIS NilsonGroup’s sustainability team is comprised of representatives from all the company’s departments, and meets regularly to discuss the company’s continued sustainability efforts. The sustainability team prepared guidelines for a stakeholder dialogue, which was initiated during the previous reporting period in the form of a dialogue with NilsonGroup employees. During 2017, we further intensified our dialogue with stakeholders by carrying out a questionnaire among customers randomly selected from our customer club. Based on the questionnaire responses, we identified a number of material aspects in order to gain a clearer picture of how we can further improve our sustainability efforts.
OUR PRODUCTS
PRODUCT’S SUPPLY CHAIN
OFFICES AND STORES
Technical expertise in factories Chemicals in production Working conditions in factories Training in factories Anti-corruption – suppliers Factory emissions Energy consumption in factories Social responsibility of suppliers Packaging optimisation Transport modes Transport chemicals Transparency of suppliers
Product quality Chemicals in production Choice of materials Product versions Design Environmentally friendly product options Animal rearing
Staff training Energy consumption in stores/HQ Emissions/Waste Store interior/marketing material Gender equality in NilsonGroup Transparency in the company Anti-corruption – NilsonGroup Social responsibility In-store product expertise Shoe care products Product reuse
HIGHER
MATERIALITY MATRIX
Environmentally friendly product options
Product quality
Chemicals in production
Choice of materials
Transparency of suppliers
Design
Emissions/waste
Working conditions in production
Gender equality in NilsonGroup
Staff training
Social responsibility
Energy consumption in stores/head office
RELEVANCE TO NILSONGROUP
Product reuse
Chemicals in production
Product versions
Technical expertise in factories
Store interior/marketing material
Energy consumption in factories
Factory emissions
Anti-corruption – suppliers Packaging optimisation Transparency in the company Anti-corruption – NilsonGroup Social responsibility of suppliers Transport modes Transport chemicals Training in factories In-store product expertise HIGH
Shoe care products Animal rearing HIGH
HIGHER
RELEVANCE TO STAKEHOLDERS
11
PRODUCT DEVELOPMENT
OUR VALUE CHAIN Each pair of shoes sold in NilsonGroup’s physical and online stores has completed a long journey from initial idea to finished product. We are continuously developing our value chain expertise, and take an increasingly active role in value chain management. All our shoes are thoughtfully designed and organised in collections that are planned and produced long before they appear in the stores. We aim to incorporate sustainability in our daily work and throughout our supply chain. Our supply chain is the core of our business and covers all steps a pair of shoes has to undergo from creative idea at the product development stage to the point where the shoes are sold and used by customers.
PRODUCT DEVELOPMENT
PRODUCTION
LOGISTICS
SALES
USE
PRODUCT DEVELOPMENT HIGHER QUALIT Y THROUGH BROADER COLLABORATION
By conducting design and product development in-house, we have the potential to influence sustainability through our choice of material, suppliers and product design. Today, almost 75% of our products are developed via our two production offices in China. Conducting our own product development brings us closer to our suppliers and gives us greater knowledge and insight into their daily production processes. It also makes it easier to evaluate the various risks we encounter and how to minimise them. Moreover, the employees in our production offices are an important link between our purchasing department in Sweden and the suppliers producing our shoes. They speak the local language, which facilitates communication with regard to test procedures, order placement and our requirements concerning our products and their
12
production. The offices also train suppliers in new procedures and processes and how to meet our requirements.
collections to promote sustainable consumption.
In recent years, we have employed five technicians and placed greater focus on product development to assure the quality of the end products. The product developers and technicians collaborate closely through the whole development phase and spend a large part of their working hours at suppliers’ factories. This collaboration results in shorter lead times and greater control over our products, quality and fit.
For the uppers of our shoes, NilsonGroup uses synthetic or cotton textiles, leather or artificial leather. The soles are made of TPR (synthetic rubber), TR (synthetic rubber), PU (polyurethane) or rubber (natural rubber). We currently only use new upper materials for our products. Certain soles, such as TPR soles, contain leftover materials from our sole production. Leftover and surplus materials are collected at the factory and reused in production.
The choice of materials in our products has a significant impact on quality, fashionability, price, chemical content, factory working conditions and, not least, the environment. NilsonGroup focuses strongly on ensuring that the materials and components in our shoes are free from undesirable chemicals. We work systematically to include more sustainable materials in our
We only accept hides and pelts from animals reared for meat production, and where the hide/pelt is a by-product. We do not accept hides or pelts from cats, dogs, Karakul lambs or lambs and sheep that have been subjected to mulesing. Neither do we accept hides or pelts from minks, foxes, rabbits or other animals that have been reared, captured or killed for their fur.
13
PRODUCT DEVELOPMENT
STUDIO SWEDEN Our prototype studio in Varberg During the year, Studio Sweden opened at our head office in Varberg, Sweden. It is the second facility of its kind in northern Europe. Having our own prototype studio gives us various advantages when creating our new collections. The most important advantage is that product developers, buyers, technicians and other persons involved can work as a team and develop collections at our head office in Varberg, something that very few Swedish brands are able to do. Everyone working in production becomes more involved in the process, leading to greater engagement. Having our expertise gathered in Studio Sweden in-house also makes it easier to spread knowledge regarding craftsmanship
14
and shoe production within the company. We see great value in the fact that our product developers can draw a shoe and then watch it being produced over one or two days. Maintaining close collaboration with our technicians also allows us to assure and optimise product quality early in the process. It also saves time and reduces transport by eliminating the need to send samples backwards and forwards between our production offices and Sweden. It also allows us to control the process by testing different materials and colours on site, as well as to achieve a perfect fit. Any necessary adjustments can later be made with the assistance of the product developer and other experts in Varberg.
Maintaining close collaboration with our technicians also allows us to assure and optimise product quality early in the process.
AN INTERVIEW WITH OUR TECHNICAL DIRECTOR Paulo Martins, originally from Portugal, has worked at NilsonGroup for many years. Paulo has over 30 years’ experience in shoe manufacturing and brings valuable expertise to our quality management. We visited Studio Sweden to ask our Technical Director a few questions. HOW WOULD YOU DESCRIBE THE SHOE MANUFACTURING PROCESS?
“Shoe production is a multi-step process. In simple terms, the process starts with the shoe last, which provides the basis for the shoe. We draw the design on the last and can see the proportions in 3D. After this, a modeller produces the pieces of the pattern, which are cut out in the material chosen by the product developer or buyer and stitched together to create the shoe upper. Before assembling the upper, toe and heel caps are fitted so that the shoe keeps the shape of the last. During assembly, the upper is moulded over the last and the underside is glued onto the innersole. Finally, the outersole is glued into place and the heel is attached. Once the shoes are finished, they are tried on to check the fit.” WHAT IS THE TURNAROUND TIME FROM THE INITIAL DRAWING TO THE SHOES’ ARRIVAL IN THE SHOP?
“About 140 days. The time can vary slightly, depending on how long the design process takes. Now that we have our own studio where product development and prototype production are carried out on site, we can create a shoe prototype in one day.” WHAT IS THE MOST DIFFICULT PHASE OF SHOE PRODUCTION?
“Shoe production is a craft requiring a high level of expertise and feel. Creating a prototype is difficult enough, and then manufacturing 10,000 pairs with the same feel, quality and fit is a huge challenge!” IS THERE ANYTHING YOU’D LIKE TO TELL PEOPLE WHO DON’T KNOW MUCH ABOUT SHOE MANUFACTURE?
“What most people don’t realise is that industrially produced prototypes and shoes are made in more or less the same way. Many people believe everything is done by machine, but in fact much of the process is done by hand. You could say that most shoes are more or less hand-made.”
Creating a prototype is difficult enough, and then manufacturing 10,000 pairs with the same feel, quality and fit is a huge challenge!” WHAT DO YOU CONSIDER THE MOST COMMON PREJUDICE ABOUT CHINESE PRODUCTION?
FINALLY – WHAT IS YOUR FAVOURITE SHOE IN TERMS OF DESIGN AND TECHNOLOGY?
“That it’s poor quality, which isn’t true at all. China has evolved enormously over the past 15 years. It’s a structured society with a very high level of ambition. I believe this is one of the reasons why China is able to manufacture shoes that few other countries are able to make.”
“After spending so long in the shoe industry, I’ve learned to love all types of shoes. But what they all have in common is quality, fit and comfort.”
15
PRODUCTION
PRODUCTION CHOICE OF SUPPLIER – THE KEY TO SUCCESSFUL PRODUCTION
NilsonGroup does not have factories of its own, but works with various suppliers who produce our shoes in close collaboration with us. Our suppliers include branded suppliers, traders/agents and direct suppliers. Direct suppliers generally own their own factory, which simplifies their work in many ways. Direct suppliers produce the majority of our own-brand shoes. Almost all suppliers that are managed via our production offices are direct suppliers. Each supplier has unique expertise. In practice, this means that one supplier might specialise in manufacturing shoes with heels, while another is an expert in high boots and ankle boots. Collaborating with the right supplier at the right time is the key to successful production. Before we initiate a new collaboration with a supplier, many aspects need to be examined and agreed on by both parties. The right product type needs to achieve the right quality, the right price, fulfilment of minimum CSR requirements and positive test order results.
Working together constructively with a focus on both parties’ interests encourages trust and long-term collaboration. The potential for developing together is a prerequisite for a sustainable and responsible business partnership. NilsonGroup has consciously shifted from regarding suppliers as opponents and focusing strongly on knocking down prices and lead times, to seeing our suppliers as partners. Working together constructively with a focus on both parties’ interests encourages trust and long-term collaboration. NilsonGroup evaluates its private label suppliers twice a year.
16
factured under safe and equitable working conditions, as production in low-wage countries entails many risks in areas such as human rights, corruption, working conditions and environmental care. Our first code of conduct was adopted in 2002, and has formed part of the basis for our collaboration agreements with suppliers ever since. Our code of conduct is based on the UN’s declaration of human rights, UN conventions on the rights of the child
The evaluation examines what worked well and less well in our collaboration with the supplier during the previous season and which areas we need to address together. After the evaluation is completed, we give the supplier feedback on their results.
ACTIVE SOCIAL RESPONSIBILITY PRODUCES POSITIVE RESULTS
It is vital to ensure that our shoes are manuPRODUCTION COUNTRIES
2015
2016
2017
CHINA
84.3%
84.8%
82.1%
VIETNAM
3.6%
3.4%
4.3%
INDONESIA
1.6%
2.0%
2.2%
THAILAND
1.0%
1.0%
1.1%
REST OF ASIA
2.1%
2.1%
3.0%
PORTUGAL
1.8%
2.0%
2.3%
ITALY
1.6%
1.3%
1.5%
REST OF EUROPE
2.9%
2.5%
2.5%
NORTH AFRICA
0.8%
0.8%
0.8%
SOUTH AMERICA
0.1%
–
–
Reported percentages >0.1.
75% 76%
8% 9%
76% 9%
17%
15%
15%
2017
PL SUPPLIERS VIA OFFICES BRAND SUPPLIERS PL SUPPLIERS (NOT VIA OFFICES) PL: PRIVATE LABEL
Development of number of suppliers in relation to purchased volume.
2017 2016 2015
N
TIO DA MO
OM
RK
WO
K
R WO
RS
OU
H ING
LIN
CIP
DIS
N
TIO NA
I RIM
MS
TE YS TS
S
RIE
LA
A DS
NilsonGroup’s suppliers’ level of compliance with code of conduct.
85.5%
85.0%
84.7%
NilsonGroup has chosen to favour a coaching approach towards suppliers. We regularly train our managers and workers to ensure they can implement procedures and structures directly in the factories. We see a coaching approach as a prerequisite for sustainable improvement. We also provide
93.7% 94.1% 94.5%
92.8% 92.7% 93.5%
same factories for too long. If corruption is suspected, an investigation is made and an action plan drawn up based on the results. No cases of corruption were reported in the company in 2017.
& S UR ION ER LTH Y BO UN TION RK LA EA AFET E O H A D D W S E T, G RA NIS N C RC EN AN UN E T GA ME FO DIS ES NM YO RE OR GE G O F A A R N W VI TO MA EN HT RIG S
ION
CT YA AR
83.7% 82.9% 83.5%
79.1% 78.8% 77.4%
80.4% 80.7% 82.7% 62.5% 60.2% 63.0%
50%
C AC ER
100% 100% 100%
92.1% 92.2% 92.9%
100% 100% 100%
100%
risk of corruption during the production stage. For this reason, we have issued clear regulations for the employees at our production offices as well as our suppliers. Maintaining a strong presence in factories and an open dialogue with our suppliers helps create common views and values regarding anti-corruption. As a further measure to prevent misconduct between our employees and suppliers, we frequently rotate the employees who deal with factories to prevent them from working with the
100% 100% 100%
and the elimination of all forms of discrimination as well as the core conventions of the International Labour Organisation (ILO). In addition, we follow the national legislation and regulations in force in each country of production. The code of conduct as a whole is very comprehensive and covers many aspects of social responsibility, with the main focus on working conditions in the production process. NilsonGroup has a zero tolerance policy against all forms of corruption. We have identified the greatest
TAL TO
2015 2016 2017
17
FORMULATION OF ACTION PLAN – FACTORY IMPLEMENTS CHANGES.
FU V LL
UP
ISIT
2ND FOL
FURTHER ADJUSTMENT OF ACTION PLAN – FACTORY IMPLEMENTS CHANGES.
LO W
PRODUCTION
1 ST
the audits are pre-announced and the rest are unannounced. Most of the audits are internal and performed by our in-house CSR coaches, who are employed locally at our production offices in China. These coaches are experts in social responsibility in production, and work in accordance with NilsonGroup’s code of conduct and minimum requirements.
FOLLO UP W
ADJUSTMENT OF ACTION PLAN – FACTORY IMPLEMENTS CHANGES.
Cycle of visits for assurance of FCIF compliance.
support and make ourselves available to our suppliers in their day-to-day work. In 2017 we focused on training in fire safety, chemicals and protective equipment. We also worked on improving our factories’ management systems to safeguard documentation and procedures in the organisation and ensure that they do not rely on individual employees. Based on our coaching approach, we have opted to place extra emphasis on certain parts of the code of conduct in the form of minimum requirements. Minimum requirements are basic requirements governing working conditions in factories, and are cornerstones of our code of conduct. Our minimum requirements include zero tolerance towards child labour, forced
labour and discrimination. All suppliers must meet these requirements at all times. If we discover during an audit that a factory we use is violating these requirements, we give them a predetermined action plan to follow. If the factory fails to follow the action plan, we suspend our collaboration with that specific factory for at least one year. Before initiating collaboration with a new supplier, we ascertain that they meet the minimum requirements. Read more about minimum requirements and action plans on feetfirst.se/omoss/vart-ansvar/produktion. To ensure that our code of conduct, our minimum requirements and our chemical restrictions are complied with, we perform regular audits of the factories. The number of audits is needs-based. Roughly half of
These coaches are experts in social responsibility in production, and work in accordance with NilsonGroup’s code of conduct and minimum During the audits, the coaches use NilsonGroup’s internally developed Factory Compliance Internal Form (FCIF). The FCIF is based on the BSCI (Business Social Compliance Initiative) auditing tool, and includes our code of conduct, chemical restrictions and environmental issues. NilsonGroup’s basic principle is to work in cycles of three visits, of which the first one is a “full visit”. During a full visit, all 260 questions in the FCIF are gone through in detail. After the first visit, an improvement
0.4% TRAININGS CARRIED OUT AT SUPPLIERS’ PREMISES
99.6%
APPROVED TESTS NON-APPROVED TESTS
Results of total number of tests carried out in 2017.
18
2015
41
-**
2016
71
37*
2017
74
51*
Total number of trainings for suppliers regarding the various aspects of our code of conduct. * Training implemented by supplier with NilsonGroup’s support. ** Insufficient data available.
plan is prepared in collaboration with the factory, focusing on any areas where deviations were detected. The following two visits check compliance with the improvement plan. Third party inspections of the factories are performed as a complement to, and to assure the quality of, our internal audits. A third party is an independent, external inspector with no relationship to either NilsonGroup or our suppliers. External audits are primarily performed on suppliers in countries where we do not have our own staff. We see continuous improvements during our inspections. Salary issues and the right to free trade union organisation continue to be important focus areas. Among other things, we will impose stricter demands on factories to train their workers in their rights regarding working hours and safety, and to pay all workers a living wage according to our code of conduct. Factories that we have worked with for a long time report their improvements on an ongoing basis, while newer factories are given a specific implementation period. It is natural for us to focus primarily on the
PRODUCTION AND ENVIRONMENTAL In 2015, environmental care was added as a separate section in our FCIF auditing tool. This section includes the areas environmental policy, Waste management, energy consumption and emissions. The aim is to help our suppliers make improvements in these areas and more easily monitor our factories’ implementation of environmental measures. Our aim is for all suppliers to have basic knowledge of the external environment and their factories’ impact on it.
FCIF
2015
2016
2017
NUMBER OF INTERNAL VISITS/AUDITS
127
105
98
AVERAGE SCORE FOR COMPLIANCE WITH – CODE OF CONDUCT
85%
85%
86%
Number of completed visits in relation to suppliers’ average level of compliance with the code of conduct.
newer factories since the established ones are usually more stable. With regard to our suppliers’ CSR efforts, we see clear positive development in factories with which we collaborate directly via our production offices (internal suppliers). Meanwhile, we will now increase our follow-up efforts in factories where we use agents or traders as intermediaries (external suppliers).
CRUCIAL CONTROL OF HARMFUL CHEMICALS
We are constantly surrounded by different types of chemicals. Most substances we come into contact with in daily life are not harmful to our health. Shoes and their components also contain chemicals, and at NilsonGroup we work with our suppliers to ensure that our products do not contain any substances that are banned or harmful
19
PRODUCTION
to health or the environment. We are not content simply to ensure that our finished shoes are free of harmful chemicals, but also go further back in the supply chain to ascertain that no harmful substances are used during the manufacturing process. We see this as an important part of creating safe and healthy working conditions at suppliers’ facilities and counteracting negative environmental impact such as pollution of groundwater and arable land around our production units.
NILSONGROUP AND QUALITY In recent years, NilsonGroup has focused strongly on improving the quality of its shoe production. We have staff members and technicians who spend a lot of time in production at our suppliers’ factories. They also bring their knowledge to Sweden through collaboration with designers and product developers in Studio Sweden. By doing a thorough job at the product development stage and then following up on it during production, we have improved the quality of our products and significantly reduced the number of complaints received in recent years. In 2017, we more than doubled the number of physical tests performed to further assure the quality of our shoes before sending them to stores.
NilsonGroup’s restriction lists are based on the EU REACH legislation (Register, Evaluation, Authorization and Restriction for Chemicals), although in many cases we impose higher requirements than those set down in law. The lists are specially adapted to shoe production and formulated in collaboration with chemical experts and accredited laboratories. Our restriction lists are published on feetfirst.se/omoss/vart-ansvar/produktion.
By doing a thorough job at the product development stage and then following up on it during production, we have improved the quality of our products and significantly reduced the number of complaints received in recent years.
According to NilsonGroup’s supplier requirements, all glues, solvents and similar substances must be accompanied by relevant and accurate safety data sheets, which must be clearly displayed and easily accessible in the factory. A Material Safety Data Sheet (MSDS) contains information about the
COMPLAINTS
2015
2016
2017
TOTAL
1.43%
0.81%
0.68%
Complaint statistics for all concepts.
LIST OF SUPPLIERS NilsonGroup is transparent about its suppliers. You can see a list of our suppliers on our website.
feetfirst.se/omoss/vart-ansvar/produktion
20
chemicals in the substance as well as instructions for storage and handling and how to proceed in the event of an accident. ENSURING QUALITY THROUGH CAREFUL TESTING
The products are tested both before and during production. Besides the tests we initiate ourselves, we are regularly informed about the tests our suppliers perform both internally and externally. The tests we carry out each season are carefully selected, with a particular focus on children’s products. If a tested material fails to meet our requirements or is found to contain a prohibited chemical, we do not use it in our shoe production. We also have our own test laboratory in China where certain physical tests are performed, e.g. regarding outsole adhesion and colour fastness. Tests that we cannot do ourselves are independently carried out by external accredited laboratories. In total, we carried out roughly 12,500 physical and chemical tests in 2017. During the year we increased the quantity and types of physical tests performed in order to further improve our quality assurance. We are performing more tests at suppliers’ production facilities, where most of our suppliers have invested in test equipment for controlling product quality. Chemical tests are carried out by external accredited laboratories to ensure that the guidelines in our restriction list are followed. We collaborate with the Chemicals Group at Swerea IVF to ensure we remain updated and can take action if necessary.
21
LOGISTICS
LOGISTICS THE TRANSPORT CHAIN – FROM MANUFACTURING TO STORE
NilsonGroup is acutely aware of the environmental impact and risk associated with its transport. By using environmentally conscious carriers, we continuously strive to minimise carbon dioxide emissions from our transportation. We actively strive to choose safe and environmentally friendly carriers and transport companies. We actively strive to maximise the fill level of our self-produced shoe boxes and load carriers, e.g. sea freight containers. Approximately 7.2 million pairs of shoes were manufactured for NilsonGroup in Asia and Europe in 2017, of which 6.2 million pairs were handled via our central warehouse in Varberg. The majority of our shoes manufactured in Asia are transported by sea. Products manufactured in Europe are transported by truck directly to our central warehouse in Varberg.
NilsonGroup always follows the latest environmental solutions for onshore and offshore traffic. The goods are usually transported from our central warehouse to our stores by truck, sometimes combined with rail. By optimising the fill level of pallets, we continuously strive to reduce our number of shipments. We also rationalise our transportation by bundling together our shoes with marketing material and online orders.
IMPROVEMENTS IN 2017
We improved our packaging for shipments from China. By using boxes made of thinner and stronger cardboard, we have reduced the size and total volume of our shipments from China by roughly 12%. We tested rail shipments of approximately 35,000 pairs of shoes from China. Rail shipment is both faster and more environmentally friendly. However, there is still limited capacity available for rail shipment, and the cost is also significantly higher than for sea shipment. We implemented cross-docking, meaning that goods are transported directly to stores instead of going via our central warehouse in Varberg. This reduced our number of shipments in Sweden. We introduced piece picking as a method of replenishing stock for Din Sko. By piece picking shoes instead of whole ranges of products to stores, we reduce stock levels in stores and prevent unnecessary shipments.
collaborates with the Clean Cargo Working Group (CCWG), and both these organisations work to achieve a cleaner marine environment by raising awareness among
17%
COLLABORATION AND ENVIRONMENTAL COMMITMENT
NilsonGroup always follows the latest environmental initiatives for onshore and offshore traffic. We are a member of the Clean Shipping Index (CSI). This membership is important to us as almost 83% of our import freight is carried by sea. CSI
22
2016
shipping companies regarding recycling, emissions, marine impact etc. Read more about their efforts on www.cleanshippingindex.com.
83%
15%
SHIP TRUCK AIR AND RAIL
Chosen transport mode in percent.
2%
2017
83%
By optimising the fill level of pallets, we continuously strive to reduce our number of shipments.
23
SALES
SALES OVERALL STORE EXPERIENCE Our new FEETFIRST store concept will enable NilsonGroup to make more efficient use of in-store space and improve customers’ overall experience. Gathering two or more concepts in a single store gives customers more choice, a seamless shopping experience, integrated services and the convenience of paying for all products at the same checkout. Having common work procedures for all our concepts makes things easier for both customers and staff and frees up more time for direct customer interaction. At NilsonGroup we want customers to have a wide range of choice and always get the best quality at the best price. We strive to care for our customers in the best possible way, for instance via our customer club, FEETFIRST Friends. Here customers can collect bonuses on their purchases from all our store concepts – Din Sko, Jerns, Nilson
Shoes, Radical Sports, Skopunkten and our franchise-based Ecco Stores.
Having common work procedures for all our concepts makes things easier for both customers and staff and frees up more time for direct customer interaction. Since FEETFIRST Friends opened in 2009, the number of members has steadily increased. Today the club has just over 1.4 million members. Members receive news and information about offers and campaigns, primarily via e-mail and SMS. In autumn 2017, FEETFIRST Friends was also launched in Norway and Finland. Read more about our customer club on our website feetfirst.se.
Each day we receive questions on quality, chemicals and our code of conduct, which are made directly to the staff in our stores or by e-mail to our head office. We value these questions and always aim to respond to the customer as quickly as possible. In addition, our stores have well-established procedures for quickly referring these questions to our head office.
CONSCIOUS ENERGY CHOICES IN STORES Our stores use a lot of energy. Our customers need the right lighting and a pleasant environment when they visit our stores. For this reason, it is important that we make smart choices so that we can offer this experience in a resource-efficient way. We conduct active sustainability efforts together with our collaborative partners, for instance property owners. This can regard anything from waste separation to choice of
It takes a long time for a plastic bag to degrade. On average, 200 plastic bags are used per person per year in Sweden. To promote improvement in this area, NilsonGroup has joined One Bag Habit, an initiative jointly launched by H&M, KappAhl and Lindex on 1 June 2017. In August, NilsonGroup joined the growing number of Swedish companies opting to make a difference by decreasing the use of plastic bags. The aim of One Bag Habit is to charge customers for plastic bags in stores and donate the surplus from the sales to sustainable development projects. In 2017, we donated SEK 500,000 to STEPS, a Swedish research project. All the plastic bags in our stores are made of 100% recycled plastic, half of it recycled from consumer plastic waste and half from factory waste. By reducing the total number of plastic bags used, we further contribute to curbing environmental impact.
24
electricity supplier. In those stores where we have influence over the choice of energy, we only use environmentally friendly electricity. Our main furnishings supplier is certified by and compliant with I-way and Q-way. (ISO 9000 and ISO 14000). This means they carry out continuous improvements based on action plans and documented goals for quality, environment, working environment and employee health and safety. The Swedish Act on Energy Audits (2014:266) forms the basis for the extensive energy-saving initiatives currently underway in our stores. Energy-efficient lighting is installed in all new stores. The lighting in our existing stores is gradually being replaced with LED lighting. In 2017, LED lighting was installed in approximately 40 stores. This will have the dual effect of cutting energy consumption and reducing the need for extra cooling in the stores, since the LED luminaires consume less energy and emit
2014-15
2015-16
2016-17
-4%
-2%
-3%
ENERGY CONSUMPTION
Reduced energy consumption in equivalent stores from previous years. less heat. We also install automatic lighting in areas such as kitchens, toilets, offices, cleaning and laundry areas. We have reduced energy consumption in our stores again this year. An analysis of energy use at our main office and central warehouse is currently in progress, and will enable us to make further energy savings.
PRODUCT REUSE IN SOUTHERN SWEDEN NilsonGroup has a collaboration with the Skåne-based company TextilRecycling whereby NilsonGroup donates shoes that customers have returned to our stores. TextilRecycling is a social enterprise that manages the collection of clothing, shoes
and textiles for reuse or recycling. Today, 20 stores in the Skåne region and Växjö are involved in this collaboration. The returned shoes are deposited in special collection containers installed in the stores. The containers are emptied regularly by TextilRecycling’s staff, and the shoes are then sent on to the company’s partner firms for sorting, material recycling or resale. This collaborative venture contributes to reducing our waste, since the returned shoes would otherwise have been thrown away and incinerated. Any returned shoes that are deemed unsuitable for reuse are not put in the collection containers. Find out more about TextilRecycling on www.textilrecycling.se
SOCIAL MEDIA
YOUTUBE
@dinsko @eccostores @feetfirstshoes @nilsonshoes @skopunkten
FEETFIRST Din Sko Skopunkten
#dinsko #nilsonshoes #skopunkten
linkedin.com/company/nilsongroup
25
SALES
E-COMMERCE FAST GROWING E-COMMERCE Retail stores are facing significant challenges as more and more customers choose to shop online. Nilson Group is in the middle of this transition and taking strong steps to balance and complement our physical stores with our rapidly growing e-commerce services. For instance, customers can now order items via our online shop and pick them up from one of our stores, where the staff can offer further services and advice to enhance the customer experience.
Products ordered online to stores are bundled together with other goods, resulting in fewer shipments, reduced waste and optimised fill levels. Consequently, these processes are an important part of our sustainability efforts. We offer free shipping and free returns on all goods picked up and returned via our stores. Any online shopping returns can be dropped off at any NilsonGroup store. The idea is to give our customers a seamless combination of physical and digital shopping.
IMPROVEMENTS IN 2017 26% of goods ordered online were bundled together with other goods and picked up from our stores.
50% of the plastic bags used for goods bought online are made of recycled material. In 2018, these bags will be made of 100% recycled material.
26
FEETFIRST INTEGRATES OUR CONCEPTS With FEETFIRST, we continue to reinforce the link between our stores, customer club and online shopping. All our store concepts – Din Sko, ECCO, Jerns, Nilson Shoes, Radical Sports and Skopunkten – are gathered together in a single website, www.feetfirst.se. An integrated online shopping system gives customers an easy means of making purchases from all our brands and concepts at one and the same time. Each concept’s individuality is highlighted while the shopping functions are integrated. At www.feetfirst.se, we also offer shoes that can only be purchased from our online shop – Online Exclusive.
The idea is to give our customers a seamless combination of physical and digital shopping.
27
USE
LONG LIVE OUR SHOES! EXTEND YOUR SHOE LIFE
At NilsonGroup we are passionate about shoes. We are proud of our products, and our primary goal is for customers to be satisfied with the shoes they buy from us. We aim to meet and preferably exceed customers’ expectations of our products in terms of quality, safety, value and sustainability. Customers can also make a difference. They can extend the life of their shoes through correct use and maintenance. CAREFULLY CHOSEN PRODUCTS
In collaboration with our supplier, we have
chosen a wide range of shoe care products for all type of materials. The products are completely free of fluorinated substances. Some of our products are marked with the Good Environmental Choice eco-label of the Swedish Society for Nature Conservation. NilsonGroup also has its own range of insoles, available in our stores and online. SUSTAINABILITY IN EVERY STEP
you on which shoe care products to use for our different shoes and how to use them for optimal results. Instead of throwing away used shoes, we encourage customers to donate them to others who need them. This prolongs the shoes’ useful life and reduces environmental impact. Among other organisations, we work with Human Bridge and Textile Recycling. Read more under our collaborations.
Correct maintenance extends your shoes’ life. Caring for your shoes regularly can make them last longer. Our in-store staff can advise
TIPS FOR EXTENDING YOUR SHOES’ LIFE All shoes need to be thoroughly dried and aired. This means you shouldn’t use the same shows several days in a row. Instead, alternate between different pairs and allow them to rest for a day or two. Use a shoe horn when putting your shoes on, to avoid damaging the heel uppers and chafing your feet. If you add insoles, your shoes will stay fresh for longer. Putting a thermal sole inside winter shoes improves their insulation capacity. To further extend your shoes’ life, you can have them re-healed or re-soled by a cobbler. Instead of throwing shoes away, you can give them to charity for somebody else to use. There are many people who need shoes but can’t afford to buy new ones.
28
BEING ON OUR TEAM TRAINING AND PERSONAL DEVELOPMENT GO HAND IN HAND
One of NilsonGroup’s long-term goals is to be the footwear industry’s most attractive employer. We want our employees to find every day meaningful and enjoy coming to work. NilsonGroup works systematically and continuously to ensure good working conditions in every part of our organisation. We aim to make the most of each employee’s skills. By setting clear goals and focusing on individual development, we aim to give all employees opportunities to develop in their professional roles. All employees are informed about NilsonGroup’s group policy, which covers areas such as human rights, gender equality, health and safety and corruption. New employees also attend induction training to learn about the company’s procedures and policies. All NilsonGroup’s employees are responsible for staying informed about laws and internal regulations relevant to their work. NilsonGroup strongly condemns all forms of corruption and under no circumstances condones the offering or acceptance of bribes or other unethical payments. Our employees are expected to conduct themselves with honesty and transparency towards customers, suppliers and colleagues. All our dealings must be of a professional and work-related nature, and may never be influenced by personal interests. If corruption is suspected or reported, a targeted action plan is implemented. No cases of corruption were reported in 2017. Moreover, NilsonGroup has an equality and diversity policy in place which is based on equal rights and opportunities for all people. Employees should report any suspected cases of discrimination to their immediate manager or to our HR department. Any cases of workplace discrimination or harassment are investigated and followed up on by the HR department, and are to be treated with confidentiality. No cases of discrimination were reported in 2017.
Managers at our stores and head office undergo training in labour law, which covers topics including corruption and discrimination. All NilsonGroup’s policies are easily accessible to our employees, and each employee is responsible for staying informed about internal and external regulations, policies and instructions.
NilsonGroup aims to make the most of each employee’s skills and attributes by offering tailored training courses.
There is a health and safety committee at the company’s head office, where union representatives and selected managers meet 2-4 times a year. The health and safety committee deals with matters regarding health and safety at the head office There is a very low frequency of accidents and work-related injuries throughout the whole company. Strong efforts continued in 2017 to reduce sick leave, especially long-term sick leave. This resulted in a reduction of cases of long-term sick leave. These efforts are conducted in collaboration with the occupational health services, and will continue during the coming years.
29
NilsonGroup is bound by four collective agreements which regulate our starting salaries. Under the Work Environment Act (Arbetsmiljölagen), all organisations are required to conduct systematic environmental management efforts. These efforts include performing regular health and safety checks, risk assessment and consequence analysis. NilsonGroup places high priority on continuous health and safety improvement. Health and safety issues are included in existing trade union agreements and are also regulated in the Work Environment Act. No cases of discrimination were reported in 2017. NilsonGroup has a strong tradition of supporting trade union activity. Maintaining close dialogue with trade unions is natural to us. Meeting frequently to share information is a vital part of being an attractive employer. Our aim is for NilsonGroup to be the preferred employer for people wanting to work in the footwear industry.
SAME STAFF MANNER AND WORK PROCEDURES IN ALL STORES
NilsonGroup has an Employee Handbook covering all aspects relevant to our store staff’s work, from goods handling to robbery and threats. Each chapter addresses the rules and procedures for different work duties. Our store staff are required to sign a certification that they have read and understood the Employee Handbook. NilsonGroup’s security department performs internal audits in stores once a year to ensure that the procedures are followed properly. Staff from the security department visit the store and check, together with the store manager, that the applicable rules and procedures are followed. In addition, a risk analysis is carried out to ensure workplace safety. If major deviations are detected in the risk analysis, the security department initiates an in-depth analysis where certain established parameters are examined and compared. This analysis might show that
the deviation is due to internal misconduct, for instance false returns, which is the most common form of misconduct.
ENVIRONMENTALLY CONSCIOUS CHOICES
Automatic lighting has been installed in most areas of our premises to reduce energy consumption. Our waste is separated and all obsolete hardware is disposed of by environmentally friendly methods. We use EPEAT (Electronic Product Environmental Assessment Tool, www.epeat.net) when purchasing new computers. EPEAT is a global rating system for greener electronics, and is used to help buyers identify environmentally friendly choices. We only buy products with the highest EPEAT rating, Gold, which meets most environmental criteria. In 2017, we bought two new company cars which both comply with the new environmental regulations established in 2013.
EMPLOYMENT VIA OUR PRODUCTION OFFICES
EMPLOYEE FACTS – 2017 266 women and 12 men took parental leave.
NilsonGroup has 283 employees in managerial positions, which always include HR responsibility.
Approximately 2,200 hours of staff training were undertaken in the company.
91% of our employees attended performance reviews.
30
We encourage our production offices to recruit local employees. At present, 80% of the managers at our offices in China are local employees, while 85 % of other employees are locally recruited. Two of our reasons for recruiting locally are to ensure good communication between employees and to promote local social development. By local employees, NilsonGroup means employees that reside at the location and are born and raised in the country. Staff training is regularly carried out at our two production offices in China. During the year, 18 staff training courses were carried out in safety and competency development.
TRAINING FOR SUCCESS
All our internal training courses are gathered together in the FEETFIRST Academy. To ensure our continued success, it is crucial that all employees are given the right conditions to succeed in their daily work. The training courses we offer give all employees opportunities for professional development and growth. The courses are web-based and available to all our store employees. Some of the courses are seminars intended for managers.
It is crucial for all NilsonGroup’s new employees to be adequately prepared for their job. For this reason, in 2017 we introduced an induction programme for new store staff in the FEETFIRST Academy. The aim of the programme is to help new employees make a swift, smooth and easy transition into their new job. During 2017, we launched a further seven training courses as part of our goal to “Increase employees’ opportunities for training and development”.
A total of 1,224 persons undertook training via the FEETFIRST Academy last year, resulting in a total of roughly 2,200 hours of training. The seminars are primarily targeted at store managers and regional managers and last a full working day. Consequently, the number of training hours varies between employees.
EXAMPLES OF TRAINING COURSES
INTRODUCTION TO LEADERSHIP
FIRE SAFETY
This course provides an introduction to the leader role in
Course participants will learn to recognise fire risks at their work-
NilsonGroup. It explores what this role entail in practice and teaches
place and in other day-to-day surroundings, how to help prevent fire
methods for coaching team members.
in stores and warehouses, and what measures to take in the event of a fire.
SHOE CARE One of our courses teaches shoe care. After completing the course,
IN-STORE SECURITY
employees can offer customers advice on how to care for their shoes
This course covers the most important rules and regulations for
and prolong their lifespan.
in-store security, and is recommended as part of the programme “Protection against robbery in the retail sector” organised by the Police, the Swedish National Council for Crime Prevention (Brottsförebyggande rådet) and the The Swedish Retail and Wholesale Council
DIFFICULT DISCUSSIONS
(Handelsrådet Arbetsmiljö och säkerhet).
Difficult Discussions is an external course for regional managers that aims to provide tools and methods for facilitating difficult discussions of various types.
31
BECAUSE WE CARE It is a given for us to engage and participate in social improvement and sustainability initiatives and projects. We do this by taking active responsibility for the societies we operate in, and for sustainability issues in general.
MEMBERSHIPS
Member since 1984.
Member since 2011.
svenskhandel.se
furfreeretailer.com
Member since 2010.
Member since 2016.
swerea.se
csrvastsverige.se
Member since 2012.
Member since 2016.
cleanshippingindex.com
csrvastsverige.se
ENGAGEMEMT
During 2017, Nilson Group donated 5,384 pairs of shoes to Human Bridge, a professional organisation that carries out material-related aid projects. Human Bridge works to make a difference to people and the environment. Read more on humanbridge.se
SOS Children’s Villages is a federation devoted to improving the life of those children who are most vulnerable. NilsonGroup has worked with SOS Children’s Villages since 2007, supporting a children’s village in Putian, China. sos-barnbyar.se
See page 24. Read more on onebaghabit.se
See page 33. Read more on cancerfonden.se
See page 25. Read more on onebaghabit.se
32
THE SWEDISH CANCER SOCIETY In 2017 we collaborated in a campaign with the Swedish Cancer Society (Cancerfonden) and Pink Ribbon. Our skilled product developers developed models specifically for this campaign, and the sales surplus was donated to the Swedish Cancer Society. We also designed a pretty shoe bag and shoe laces in satin, which were sold in our stores in aid of Pink Ribbon. The campaign was hugely successful and enabled us to donate SEK600,000 to the Swedish Cancer Society.
33
GRI CONTENT INDEX
ORGANISATIONAL PROFILE 102-1
Name of the organisation 6
102-2
a) Description of the organisation’s activities 6-8*
b) The organisation’s products and brands 8
102-3
Location of the organisation’s headquarters 6
102-4
Countries where the organisation operates 6
102-5
Ownership and legal form 6
102-6
Markets served 6
102-7
Scale of the organisation 6*
Number of employees 6*
Corporate structure 6
Net sales 6*
Total capitalisation broken down in terms of debt and equity 6*
Quantity of products or services provided
102-8
a) Total number of employees by employment contract and gender 6
6
b) Total number of employees by employment contract and country 6
c) Total number of employees by employment type and gender
6
ABOUT THIS REPORT – SELECTION AND LIMITATIONS
102-45
a) List all entities included in the organisation’s consolidated financial statements or equivalent documents
b) State whether any entity included in the organisation’s consolidated financial statements or equivalent documents is not covered by the report
102-46
a) Explain the process for defining the report content and the aspect boundaries
102-47
b) Explain how the organisation has implemented the reporting principles for defining report content
102-48
The effect of any restatements of information provided in previous reports, and the reasons for such restatements
102-49
Significant changes from previous reporting periods in the scope and aspect boundaries
4
102-50
Reporting period
4
102-51
Date of most recently published report 4
102-52
Reporting cycle 4
102-53
Provide the contact point for questions regarding the report or its contents
4
102-54
Specify the ‘in accordance’ option the organisation has chosen
4
*
–
– 4
4, 11
List the material aspects identified in the process for defining report content
11 –
–
d) Report whether a significant portion of the organisation’s activities are performed by workers who are not employees of the company – –
e) Report any significant variations in the numbers reported in disclosures 102-8 a,b,c (such as seasonal variations) – –
102-55
Specify the GRI Content Index for the chosen option and list all aspects included in the report
34, 35
f) Explain the process for compiling the data
6
102-56
External assurance
4
102-9
The organisation’s value chain
12-28
102-10
Significant changes to the company during the reporting period
102-11
Precautionary principle or approach
5, 6*
103-1
Explanation of the material aspects
102-12
List economic, environmental and social initiatives which the organisation endorses or subscribes to 9
11
103-2
Management approach to material aspects
11-30
List memberships of organisations 32
103-3
Evaluation of the management approach and results of the evaluation
11-30
102-13
STRATEGY AND ANALYSIS 102-14
ETHICS AND INTEGRITY 102-16
32
Statement from the organisation’s CEO about the organisation’s sustainability strategy 5
The organisation’s values and policies 3, 4, 7, 9
a) Governance structure of the organisation
b) Committees responsible for decision-making regarding economic, environmental and social sustainability
301-2
Percentage of materials used that are recycled input materials 12
302-1
Energy consumption 25
302-4
Reduction of energy consumption 25
WORKING CONDITIONS
Worker representation in formal joint management–worker health and safety committees 29
6
403-2
Sick leave, sickness absence and workplace injuries
6
403-4
Health and safety topics covered in formal agreements with trade unions 29, 30
404-1
Hours of training per year per employee 31
404-2
Training programmes for employees
31
404-3
Percentage of implemented performance and career development reviews
30
STAKEHOLDERS 102-40
The organisation’s stakeholders
10
102-41
Total number of employees covered by collective agreements
30
102-42
Selection of stakeholders
10, 11
102-43
The organisation’s approach to stakeholder engagement
11
102-44
Key topics and concerns raised through stakeholder engagement, including how the organisation responds to key topics and concerns
11
34
ENVIRONMENTAL ASPECTS
403-1
CORPORATE GOVERNANCE 102-18
MATERIAL ASPECTS AND ASPECT BOUNDARIES
29
GRI CONTENT INDEX
HUMAN RIGHTS
PRODUCT SAFETY
406-1
Incidents of discrimination and corrective actions taken 29
407-1
Share of suppliers in which the right to freedom of association and collective bargaining may be at risk
416-1
Percentage of products assessed with regard to health and safety
16-19
416-2
Percentage of non-compliance with health and safety criteria
408-1
Operations and suppliers at significant risk for incidents of child labour 16-19
17, 18 29, 30
301-3
Percentage of returned products
20
409-1
Operations and suppliers at significant risk for incidents of forced or compulsory labour, and corrective actions taken 16-19
412-1
Human rights 16-19 29, 30
414-1
New suppliers screened using social criteria 16-19
19, 20
* Refers to Annual Report ** Not described in full with new way working methods Fully compliant with GRI Partly compliant with GRI
35