Positivity - a sustainability story from the Proton Group

Proton stands for positive change. With clever industrial solutions we create meaningful jobs and conserve the earth’s resources. Together we can contribute to a better world for the next generation.

Photo: Martin Johansson, Martin Andersson (Figjam) and Anna Hållams

68

Proton Services

Proton Engineering Proton Finishing

Proton Lighting 10

Proton Structure

The Proton Group is a family-owned corporate group with five business areas: Edge, Engineering, Finishing, Lighting and Structure. Our service company, Proton Services, supports them all.

48

Proton pursues locally targeted sustainability measures in a global context. Caring about the people and environment around us is the first step to contributing to a more sustainable world. Store Mosse is one of the many valuable natural environments around us that we can rejoice in and be proud of.

DAVID GUSTAFSSON, CEO OF THE PROTON GROUP

Sustainability offers a fantastic opportunity to develop a company”

The Proton Group focuses on growth. Is it really possible to combine growth with sustainability? Customers, consumers and demanders want sustainable solutions. In general, public awareness has increased to the point where clearly documented sustainability measures are often a requirement for doing business. Companies that want to grow in the future will have to offer sustainability as a part of their business model.

If we can develop a surface finishing method that has less environmental impact but protects the components just as well, there’s a good chance the customers will choose us. And that means we’ve contributed to a sustainable solution – and grown our business at the same time. When it comes down to it, it’s a matter of survival. If we can’t turn things around, there’s no tomorrow for any of us. And there definitely won’t be a Proton Group.”

How does the Proton Group weigh in sustainability when making acquisitions?

“We have a checklist of about 15 points. One of them expressly states that the company must have a sustainable business concept. JL Safety in Skara, which we acquired a few years ago, is a good example. It’s an engineering safety consulting company that saves lives by helping to make our customers’ working environments safe and secure.”

What sustainability

issues does the Proton Group prioritise?

“We are inspired by the Global Compact, mainly because it has a high recognition factor and is easy to communicate. Using the same terms with all of our different stakeholders simply makes our sustainability measures more effective. We focus on three perspectives: Social, Environment and Economy.

T he Proton Group’s sustainability story is the first step of a long journey that never ends. A journey with many challenges – and even more opportunities,” David Gustafsson says. “Sustainability offers a fantastic opportunity to develop a company.”

During 2021, we conducted a stakeholder and risk analysis that allowed us to select several focus areas to prioritise.”

How do you develop the different perspectives?

“Our aim is to become carbon neutral by reducing emissions. For example, we are working to convert energy sources and reduce our dependency on LPG (liquefied petroleum gas).

It is easy to get caught up in global thinking, but we see great opportunities to make a difference on a local plane. We can contribute to well-being in the community and for individuals in the long and short term by creating job opportunities. It is also important to be able to offer all types of jobs. We don’t just need academics – industrial and production jobs are vital to society and the economy. We can provide that important first job to a person who is far removed from the labour market, and we can also help our existing workers to advance in their skills. We’ve had several good examples in the past year of employees who have been able to take on a new role.

Financially, we aim for long-term stability and resilience. In our world, that means profitability of about 6–8 per cent and indebtedness no less than 35 per cent. We also have a modest dividend policy. This allows us to invest in our business, in our employees and in our sustainability measures.”

The Proton Group does not have to report on its sustainability efforts, does it?

“No, there is no requirement for mandatory sustainability reporting according to the Swedish Annual Accounts Act. We also do not choose to call this a report, since we only since last year have compiled this type of summary and we are aware that we have a long way to go. We want to be clear and transparent about our operations with our customers, employees and other stakeholders, and in some ways we must do so, for our own sake.

Naturally, we must meet all the legal and societal requirements, but customers also demand that we can describe our sustainability measures before they will do business with us. Doing so also gives us an idea of our strengths and weaknesses and what we need to work on in the future.

Personally, I think it’s an advantage from an sustainability perspective that the Proton Group is family owned and not listed on the stock exchange. It makes us look further to the future and think in longer terms when making investments.”

What achievement

in

sustainability are you most proud of in the past year?

“The climate calculations we did in Proton Finishing is an important starting point for our continued efforts.

It helped us to crystallise what to focus on when we continue with our other business areas. I’m also very proud of having set aside the resources we need to pursue ambitious sustainability efforts through a new organisation and new hires.”

The greatest challenge is the switch to a low-carbon economy and how to create new, circular business models in which everyone is prepared to contribute.

Have you had any setbacks?

“Yes. Late in 2021 we discovered that a person in a managerial position at one of our manufacturing units had been taking advantage of people in a vulnerable position and demanded money in exchange for job offers. The person was fired and we reported it to the police. It was a terrible disappointment to discover that such a thing was happening in our organisation, but it was also an important lesson that we need to work even more actively establishing our core values and our Code of Conduct.”

What is your greatest sustainability challenge and what will it take to achieve it?

“The greatest challenge is the switch to a lowcarbon economy and how to create new, circular business models in which everyone is prepared to contribute. Above all, there is often a lack of financial incentive in our business deals. As subcontractors, we often go further in our sustainability work than the procurement specifies, so it is still very difficult to turn a profit on that added value. Those who invest heavily in a carbon-neutral factory cannot count on that investment paying off right now. That’s a problem we need to solve. My personal opinion is that we

all need to start making demands of each other throughout the value chain. Customers need to start making demands of us, and we need to start making demands of our suppliers. In our case, it’s largely about transports. We also have a lot of work to do in terms of traceability. I think this will take completely new legislation and new systems. The authorities could also simplify regulations; it’s not easy to navigate over time and make investments, because the conditions keep changing – in particular, the handling of various fuels. It will take greater collaboration between society, the business sector and consumers to achieve true change.”

What do Proton’s stakeholders think of the work that’s going on?

“We have been very clear that we see our sustainability work as a way of creating a positive difference for the coming generations. My perception is that many stakeholders – customers and employees alike – appreciate this, that we’re doing something meaningful, it’s not just about having a job here and now. I sometimes hear from new employees that they applied to work for us specifically because we take sustainability seriously.”

Global growth – together

Organisation and business model

The Proton Group is a family-owned business group with the Malveholm family as the largest owners. Its operations are divided into five business areas: Edge, Engineering, Finishing, Lighting and Structure, which operate in a variety of industries that are all linked to industrial production. Several companies operate in the business areas, each with free reins to conduct their own businesses and their sustainability programmes under their own responsibility. To support these operations, the Proton Group has established a special service company, Proton Services, which provides expertise in finance, HR, IT, marketing, sustainability and management.

In their specific fields of expertise, the companies in the five business areas have customers in an array of industries, which serve as suppliers, product owners or consultants to the automotive, construction, property and furniture sectors. Proton Group customers are primarily located in Europe, but some are in Asia, North and South America. Some long-term customers include names such as Ahlsell, Alfa Laval, Autoliv, Gunnebo Fastening, Hestra Inredningar, IKEA, Kockums Maskin, Koenigsegg, Kongsberg, MAN, Nevs, Renault, Rexel, Scania, Shiloh, Tesla, Thule, Volvo Trucks and Volvo Construction Equipment.

One of the core ideas of the Proton Group is that the business areas can benefit from each other’s strengths by working together on sustainability, sharing of skills and business development. The wide range of business activities also helps to make the group somewhat recession-proof and allows it to move sustainability investment funds between businesses where needed.

Strategic presence in the Nordics and Baltics

Skara

Gothenburg Hillerstorp Anderstorp

Forsheda

Eskilstuna Värnamo Proton Group headquarters

Bankeryd Skillingaryd

Growth strategy

The Proton Group pursues an active growth strategy with the aim of doubling sales every ten years. The sales target for 2030 is SEK 1.5 billion. This growth is to be achieved organically and through acquisitions, and through an increased global presence.

• We develop companies with unique abilities that are, or have reasonable potential to be, leading in their field.

• We invest in companies that have, or have the potential for, good dividends, long-term growth and limited risk.

• We have a healthy financial base that is stable in the long term.

• We are long-term owners with no ultimate time limit.

• We have operations in a variety of industries to reduce vulnerability and increase resilience.

• The dedication and knowledge of our staff are crucial to our development. This makes a decentralised organisation natural to us.

These strategies are steps towards these goals:

1. Strong business areas with their own, motivated management and clear focus on results.

2. Long-term resilient financial basis:

SOLIDITY

>35% YIELD CAPITAL EMPLOYED >15% NET INDEBTEDNESS

<1.5x EBITDA

No single industry is to make up more than 1/3 of sales at the aggregate group level.

3. We actively seek new acquisitions based on our primary strategy.

4. The group supports the business areas and their subsidiaries with funding, analysis and resources in finance, HR, IT, marketing, sustainability and management.

History

The Proton Group was founded in 1990 when a number of stakeholders, including Leif Malveholm, bought out a group of ten industrial companies and delisted them from the stock exchange. The aim was to build an industrial group with several pillars to stand on. The existing base was the surface finishing companies that currently make up the business area Proton Finishing. The strategy was to invest in environmental improvement measures, as the group owners expected that tighter environmental regulations would make it harder for smaller companies in the business to compete. Part of that strategy involved creating synergies between the surface finishing business and the construction business, which is now the business area Proton Engineering. Throughout its history, the Proton Group has faced both opportunities and setbacks, but it has always succeeded in offering stability to its customers and employees. The Proton Group has maintained an AAA credit rating for more than 25 years. After a series of significant investments in environmental and other measures, as well as divestments of non-strategic assets, the Proton Group is well-equipped for future growth.

1990

The Proton Group is founded.

2012

Transition to buying fossil-free electricity.

2018

Transition from fossil natural gas to renewable biogas.

2011

Generational shift – ownership passes to Leif Malveholm’s children Daniel, Marcus and Sanna.

2017

TIA – incident management system for risks, incidents and accidents is implemented.

2018

Soil remediation of property in Markaryd where previous surface treatment business operated.

2019 Proton Group acquires JL Safety and CEDOC.

2020

The Proton Group acquires Gunnar Hansson Svetsteknik and Teknikrör i Kinna, which have now merged to form Weldin Gothenburg.

2020

Transition to purchasing environmentally declared hydropower.

2021

The Proton Group acquires Alsab.

2022

The Proton Group publishes its first sustainability story.

2023

Producing our own renewable electricity through our first solar panel installation.

2022

Report of climate footprint, CO2 emissions from all surface treatment businesses.

OUR BUSINESS AREAS

Proton Lighting

Lighting solutions for a sustainable society

Proton Lighting is one of Scandinavia’s most experienced suppliers of energyefficient lighting for healthy, productive environments. The luminaires are developed and manufactured with innovative light sources and lighting control to meet stringent demands for sustainability. The products are marketed under the classic, well-known brands Exaktor and Solutions.

COMPANIES

Proton Lighting, Värnamo

Proton Lighting, Helsinki, Finland

NUMBER OF EMPLOYEES IN 2022

2022 SALES (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

By offering energy-efficient LED lighting in combination with intelligent control systems, Proton Lighting can help its customers reduce their energy consumption and their carbon footprint. The current energy crisis and rising electricity prices also highlight clear business benefits from a financial perspective. In addition, more and more customers are demanding good ergonomic lighting for improved employee health, wellbeing and safety. Public environments with good, energy-efficient lighting also make people feel safer, which provides greater benefit from a societal perspective.

Värnamo

Helsinki

OUR BUSINESS AREAS

Proton Engineering

Supplier to leading vehicle manufacturers

The Proton Engineering business area focuses on high-quality components for the automotive and manufacturing industries. Currently the business area includes two companies: Proton Engineering in Skillingaryd and in Klaipèda. The companies perform pipe and tube bending, end forming and welding and have a long tradition of deliveries to leading vehicle manufacturers in Sweden and the world.

COMPANIES

Proton Engineering, Skillingaryd

Proton Engineering Lithuania, Klaipèda

NUMBER OF EMPLOYEES IN 2022

2022 SALES (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

As a supplier to the heavy vehicle industry, Proton Engineering’s ability to deliver well-designed, durable components is crucial to the life cycle of the finished vehicle. Proton Engineering’s sustainability measures create added value for its customers by providing resource and energy-optimised solutions and products that were created under good working conditions with stringent demands for suppliers both upstream and downstream.

Skillingaryd Klaipèda

OUR BUSINESS AREAS

Proton Edge

Services in quality and safety

COMPANIES

Proton Technology, Bankeryd

JL Safety, Skara

Cedoc, Skara

NUMBER OF EMPLOYEES IN 2022

2022 SALES (SEK MILLIONS)

The Proton Edge business area embraces three highly specialised companies focused on quality and safety. Proton Technology is a market leader in corrosion and surface testing for the international automotive and furniture industries. JL Safety specialises in machine safety and CE marking, and helps manufacturing companies to ensure safe workplaces. Cedoc develops software for risk assessments and documentation of machines. 17 26

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

JL Safety and Cedoc contribute to creating safer, healthier working environments and reduced risk of injury in industry. Proton Technology provides quality assurance of surface-finished components, ensuring a longer life cycle of products on the market. Proton Technology’s services are also strategically important for the development and quality assurance of new, more environmentally friendly surface finishing technologies.

Skara

OUR BUSINESS AREAS

Proton Structure

Building the industrial infrastructure of the future

The Proton Structure business area consists of Weldin Gothenburg, which develop safe, efficient infrastructures for the distribution of materials and media. The company represents unique expertise in advanced pipe and tube installations for industries such as pharmaceuticals, food and the process industries.

COMPANIES

Weldin Gothenburg, Gothenburg

NUMBER OF EMPLOYEES IN 2022

2022 SALES (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

As consultants for companies in fields such as food, process industries and chemical industries, the company in this business area are part and parcel of these customers’ transition to more energy and resource-efficient production. Many customers are building new or completely renovating their facilities to meet future demands for sustainable production, and Weldin Gothenburg assists them with providing complete solutions, from planning and design to construction.

Gothenburg

OUR BUSINESS AREAS

Proton Finishing

Experts in surface treatment

The Proton Finishing business area consists of six companies that specialise in various surface treatment processes – primarily in the form of corrosion protection, but also decorative coating for customers in the automotive, construction, furniture and other industries.

COMPANIES

Proton Finishing Alsab, Anderstorp

Proton Finishing Anderstorp

Proton Finishing Eskilstuna

NUMBER OF EMPLOYEES IN 2022

Proton Finishing Forsheda

Proton Finishing Hillerstorp

Proton Finishing Industripulver, Anderstorp

179 306

Eskilstuna

2022 SALES (SEK MILLIONS)

Anderstorp

Forsheda

Hillerstorp

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

Surface treatment is an industry that involves extensive handling of chemicals that are hazardous to humans and the environment. By developing new, sustainable processes for reduced environmental impact, and by pursuing active personal safety measures, the companies in Proton Finishing can be seen as innovative, attractive business partners as sustainability becomes an increasingly important aspect in procurement.

MARIA THOM, SUSTAINABILITY MANAGER, PROTON GROUP

Maria Thom is Sustainability Manager at the Proton Group and has worked with environmental issues in the industry for nearly 20 years. She started working at Proton Finishing as quality and environmental manager in 2014 and now also has strategic responsibility for sustainability at group level.

Why did you choose to get involved in sustainability issues?

“I studied chemical engineering and physics at Chalmers. At the end of my programme, when it was time to specialise, I chose a focus on energy and the environment, and my interest in the field grew more and more as I entered the professional world. I’m driven by the idea of contributing to long-term sustainability – for Proton, of course, but also for my family, my children, my friends and community, and also for myself.”

You’ve worked professionally with environmental issues for almost the whole of the 2000s. How has the situation changed?

“The most important change is that demands from all sorts of stakeholders have increased. It isn’t just the legislators – the customers, suppliers, the media and the neighbours across the street all care more about the environment these days. Not to mention all the young people who prioritise the environment and sustainability.

I’ve had the pleasure of working with companies that have had a strong environmental focus over the years, where these issues are taken very seriously, but the biggest difference now is that so many really care about what we do!”

Why is sustainability so important to the Proton Group?

“It isn’t more important to Proton than to anyone else. Working consciously with sustainability-related issues is extremely important to any company that wants to stay relevant on the market. Sustainability is a matter of survival from many perspectives.”

What do the stakeholders think is most important right now?

“What they care about most right now is the climate. Proton’s stakeholders are very clear that they want us to show progress in our efforts to reduce our climate impact and our carbon dioxide emissions.”

Sustainability is a matter of survival from many perspectives”

What is the greatest sustainability challenge for the Proton Group?

“Carbon dioxide emissions and reduction of emissions are a very important issue, and our stakeholders will demand even more in this area in the future. Another major challenge is to go even deeper into the supply chain and ensure that our sustainability demands are met the whole way – not just in terms of climate sustainability but also other sustainability-related requirements. The challenge is that we often have complex supply chains. For example, Proton Lighting works with many components from different parts of the world.”

What is the greatest opportunity?

“The drive and will in the organisation and from the owners. We have an opportunity to show that we are forward-thinking and we make things happen. In some areas, we’ve got a bit of a lead on our competitors, especially in surface treatment. And having the whole Proton Group behind

us also gives us extra muscle and investment opportunities. The fact that we have such breadth in different business areas, which are not always synced in the business cycle, can sometimes be an advantage.”

What do you look forward to working further with?

“On a personal plane, I think it’s going to be fun working with all of the group’s business areas and getting to know them even better. Previously, my focus has been entirely on Proton Finishing. Climate calculations and supply chains will be an exciting challenge that we will invest a lot of energy in. The plan is to complete climate calculations for all of Proton Finishing’s facilities in 2022, then to apply what we have learned and continue working systematically with the other business areas. The work of mapping the supply chains was initiated during 2023 through an internship by a student from JIBS.”

“I’ve had the pleasure of working with companies that have had a strong environmental focus over the years, where these issues are taken very seriously, but the biggest difference now is that so many really care about what we do!”

Sustainability policy

For Proton Group, sustainability means that we take active responsibility for the impact our operations have on society. Being a sustainable company is fundamental to the long-term development of our operations and business. Our ambition is to develop solutions that contribute to a sustainable world for future generations.

Proton Group considers sustainable business a social, ethical, environmental and economic responsibility where we work purposefully in all our operations to practise what we preach: committed, clear, courageous and curious. We transparently evaluate and report our impact on society.

Curious Clear

Proton’s Sustainability Strategy

Employees

We want to contribute to safe, secure working environments that allow our employees to grow. We want to make it possible for people with different backgrounds to work under good conditions. Through our products and services, we also contribute to greater safety for our customers’ employees.

Society

We want to contribute to a community where children and young people have meaningful free-time activities and where we can help young people to get an education, internships and jobs. So we participate in many activities with schools and associations. We also want to ensure a good working environment and consideration of the environment in our value chains, including the supplier and customer links.

Climate impact

We want to contribute to the Paris Agreement by reducing our climate footprint. As our first step, we are doing climate calculations on each part of our operations, after which we will establish a plan for how to achieve our goal of being climate neutral by 2045.

ERONMENT

Our sustainability strategy is based on three perspectives: Social, Environment and Economy. Within the frameworks of each perspective, we have two focus areas where we work towards clear goals, which we monitor using key figures. The choice of perspective and focus areas is based on a risk and materiality assessment.

ECONOMY

We want to contribute to inclusive industrialisation and promote sustainable innovations. By developing sustainable solutions, we can add value to our customers’ sustainability measures. With our own innovative development projects, we can also make our own operations more circular.

Growth

We want to contribute to sustainable growth, where we can continue to invest in new technology, develop new products and services and develop our employees’ skills through profitable operations.

Local footprint

We want to contribute to a better use of resources by reducing our use of materials and preventing, reducing, reusing and recycling our waste. We also work to handle chemicals responsibly to reduce negative consequences to human health and to the environment.

Risk analysis

Climate impact (CO 2 emissions)

Our operations contribute to CO2 emissions, which have a negative impact on the climate. It would be a business risk not to reduce our CO2 emissions, because of increased demands from our customers.

Resource use

Reckless use of raw materials, electricity and water negatively impacts the environment and the economy. These risks also embrace the raw materials used, waste in production and the handling of waste in manufacturing and end use.

Materials and chemicals

Exposure to certain materials and chemicals during use can occur throughout the value chain and impact the natural environment, the working environment and people’s living environments.

Reduced faith in the brand

Not living up to legal requirements, our Code of Conduct and our stakeholders’ expectations in sustainability matters can harm our brand and our stakeholders’ faith in us.

Risks in the working environment

Within our business operations, there is a risk of accidents, injuries and illness among our employees. This can negatively affect our employee brand and our ability to recruit skills.

Culture of silence

The existence of a culture of silence creates a risk that employees don’t dare to discuss problems or report breaches of policy or our core values.

Hazardous emissions

Our operations generate noise and emissions of pollutants into the air, water and soil, which are subject to specific conditions through permits from authorities. At incidents there is a risk that we will violate these permits.

Decline of biodiversity

In and around our properties are land areas that risk constraining biodiversity and nature’s provisioning capacity if they are not used properly.

Climate-related consequences

Heavy rain can lead to a risk of flooding of production facilities, leading to a risk of long-term production loss.

Business with countries at war

Conducting business with companies in countries at war leads to both social and financial risks throughout the value chain.

The risk analysis shows risks that have great impact on individuals, the environment and our ability to conduct business. The identified risks are general for our business and apply to the whole Proton Group. The individual companies in the group are each responsible for making detailed risk analyses of their own operations.

We work with tools such as our sustainability policy, climate calculation, energy audits, renewable electricity and supplier assessments.

We work strategically and practically with sustainable solutions and reduced use of resources through our sustainability policy, purchasing policy, various labels and certifications, permit terms and conditions and management systems.

We work with tools such as chemical management systems, risk assessments, replacing materials and chemicals, and supplier assessments. We also demand information on chemical content based on IMDS, REACH and SCIP.

We monitor legislation and maintain continuous dialogues with suppliers and customers.Tools such as our core values, supplier assessments and ranking, our sustainability policy, business strategy and Code of Conduct help us in this.

We continuously develop our health and safety policy and systematically develop our routines, risk analyses and assessments, safety rounds, incident reporting, employee satisfaction surveys, employee appraisals, internal training and key figure monitoring.

We use tools such as our core values, Code of Conduct, NMI tools with action plans and a reporting tool for whistleblowing.

Opportunities to reduce climate impact through choice of materials, energy solutions, transports, suppliers and increased resource efficiency and circularity.

Opportunities to reduce our own use of materials, increase circularity and ensure long life cycle of our products.

Opportunities for increased dialogue with customers and suppliers and offer more sustainable products and processes.

Opportunities for further development of a sustainable business strategy. Cataloguing of the value chain as regards to sustainability criterias. Clearer supplier agreements and monitoring. Training of employees.

Opportunities for continuous improvement.

Opportunities for continuous improvement.

Our operations are subject to authorisation, which means that we follow a control programme, emergency routines and a non-conformance system with regular audits and inspections.

We work in the framework of our sustainability policy, but we currently have no established routines for working in this area.

Opportunities to minimise our emissions.

Opportunity to analyse how we can contribute to increasing biodiversity.

We work with risk analyses, preventive measures, emergency preparedness and crisis scenarios.

Opportunities to update risk analyses with climate-related risks for all facilities.

We use tools such as our core values and our Code of Conduct, which includes business ethics.

Opportunities for continuous improvement.

Stakeholder analysis & Stakeholder dialogue

Stakeholders

Customers

Type of dialogue

Sales organisation and customer support, annual customer satisfaction index (CSI), customer meetings, customer reviews, development projects, trade fairs and customer events, annual reports, interim reports, the sustainability story, website, web portals and social media, Protonen magazine.

Employees

The annual employee satisfaction index (ESI), annual performance reviews, various meeting forums in the business, safety inspections and safety committee, intranet and the Ernest business system, annual report, interim reports, the sustainability story, Protonen magazine.

Owners and Board

Board meetings and regular reporting.

Suppliers and partners

Orders and supplier meetings, annual supplier assessments and ranking, industry associations and network meetings, customer surveys, inspections and audits, trade fairs and customer events, annual reports, interim reports, the sustainability story, the website, web portals and social media, Protonen magazine.

Authorities

Verification and reporting based on permit requirements, inspections and information transmissions, projects, workshops and seminars, regulations and updates of regulations, agreements and permits, inquiries and surveys, annual reports, interim reports, the sustainability story, web portals.

Local community

Discussions when needed, sponsorship activities, internships, study visits and open houses and events in the local area. Annual reports, interim reports, the sustainability story, website, web portals and social media, Protonen magazine

The stakeholder analysis was conducted based on all of the Proton Group’s business activities. The prioritisation of the stakeholders takes into account both how we influence the stakeholders and how they influence us. In the coming year, we plan to conduct several stakeholder dialogues focusing on sustainability, to collect comments and expectations from our stakeholders. For business areas covered by ISO certification – Proton Technology, Proton Engineering, Proton Lighting and Proton Finishing – stakeholder analyses are done for each business.

Essential questions

Industry and business requirements, fulfilment of requirements and expectations, business ethics and the Code of Conduct in the supplier chain, improvements and development, climate impact, life cycle and life time, partnership and long-term relationships, competence and knowledge sharing.

Satisfaction, fellowship and activities, the attractiveness of the workplace, various benefits and work-life balance, environmental and health-and-safety issues, skills enhancement, professional and personal development, employee spaces, tools, equipment and clothing, community involvement and security through stability and a long-term perspective.

Strategic direction, development and change, competence, growth, profitability and cash flow, satisfied workers and customers and ambassadorship, business ethics.

Sustainable value chains, long-term thinking and partnership, financial stability for the reduction of financial risks, active collaboration for improvements and development, business ethics through the Code of Conduct.

Adherence to laws and permits, improvements and development, long-term thinking and stability, sustainable operations and conservation of resources, measurement data and statistics.

Noise, emissions, the appearance and layout of the area and traffic flows, living up to regulations and requirements, sponsorships, contributions and engagement, job opportunities.

Good to know about our sustainability story

MATERIALITY ASSESSMENT

In 2021, we worked to provide a structure to our sustainability measures. Among other things, we conducted a risk analysis (see page 34) and a stakeholder analysis (see page 36). Along with the other efforts we carried out in health and safety, environmental and quality work, these analyses formed the basis of our sustainability strategy (see page 32). Our sustainability and sustainability measures focus on three perspectives: social, environment and economy. Within these perspectives we have identified six focus areas that lie within our influence and our stakeholders’ expectations. Our sustainability strategy contains long-term goals for each focus area as well as a link to the global sustainable development goals. Short-term goals are continuously set within the framework of each business area’s business plan.

ORGANISATION AND GOVERNANCE

The Proton Group’s sustainability measures are based on the organisation’s sustainability policy and Code of Conduct, both of which have been established by the Board of Directors. The Code of Conduct covers matters such as business ethics, anti-corruption and human rights. Health and safety measures are a continuous focus based on a shared health and safety policy. We also have an equal treatment policy. The majority of the group’s policies are shared; however, each business area has its own environmental policy based on its own operations. The Proton Group’s work is governed

SUSTAINABILITY-RELATED POLICIES:

• Sustainability Policy

• Code of Conduct

• Health and Safety Policy

• Environmental Policy

• Equal Treatment Policy

• Guidelines for Purchasing and Procurement

• Company Car Policy

CERTIFIED TO:

• ISO 9001

• ISO 14001

• IATF 16949

• ISO/IEC 17025

• Safe Water

• ISO/IEC 17020 C

• SS-EN ISO 9606-1

• SS-EN ISO 14732

and monitored using certified management systems (ISO 9001 and 14001). This governance and monitoring structure also includes sustainability measures and during 2022 a sustainabiliy forum was established.The aim with the sustainability story for the group is to be able to report its sustainability measures in the future according to the Swedish Annual Accounts Act.

“

It is easy to get caught up in global thinking, but we see great opportunities to make a difference on a local plane. David Gustafsson, CEO

SOCIAL

Within this perspective, we work actively with ethical and social issues, primarily from a local perspective, as this is where we are able to have an influence. Our employees are important to us, and their commitment and wellbeing is a necessity for us to develop and contribute to sustainable growth. We also care about the society where we operate, and we want to be a credible actor that provides jobs and activities that enhance the quality of life for many. A large part of this is simply good common sense and is a requirement for finding the right employees and selling our products and services.

We want to contribute to safe, secure working environments that allow our employees to grow. We want to make it possible for people with different backgrounds to work under good conditions. Through our products and services, we also contribute to greater safety for our customers’ employees.

OUR OBJECTIVE

Ambassadors In 2030 we will have satisfied employees, corresponding to a score of 25 eNPS* in the employee survey. Safe workplace . The goal is zero workplace injuries resulting in absences. In 2030 we will have achieved 10 risk observations per incident. Personal growth. In 2030, all employees will be offered 16 hours of training a year. Whistle blowers. Our long-term goal is to have zero deviations leading to whistle-blowing.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy, Code of Conduct, Health and Safety Policy and Equal Treatment Policy, and through our management system. The group CEO and the business area managers are ultimately responsible, and each manager is responsible for the work at their own level of the organisation. Our follow-up tools are our annual employee survey and performance reviews, as well as regular reviews and key figure follow-ups on scorecards. Health and safety is monitored daily through safety inspections, risk assessments and incident reports, which are summarised monthly in the key figures.

COMPLETED ACTIVITIES AND EVENTS

In the past few years, we have built a strong basis for securing our employees’ development and health. We have reviewed and updated our Code of Conduct to more clearly align it with our Sustain-

ability Policy. We have also implemented the TIA system for managing accidents, incidents and risks, and a whistleblower system at group level. First-aid courses, installation of defibrillators, expanded wellness benefits and an option to receive a bicycle benefit have also been implemented at group level. In 2021 and 2022 we carried out extensive and very important measures to enhance personal safety when handling chemicals, including training courses and improved first aid equipment for chemical accidents at Proton Finishing. Proton Lighting designated 2022 the Year of Health, which included daily walks around the factory building and a monthly health breakfast with the whole staff. Renovations to freshen up and improve the employee areas are underway.

CHALLENGES AND OPPORTUNITIES

Because we work in industrial production in our business areas, there is a risk of workplace accidents and exposure to chemicals. The fact that we are a multicultural organisation with many nationalities also means that we face a social and ethical challenge in which we must constantly strive to create a shared view and be aware of linguistic challenges and cultural differences. In the long term, breaches of our Code of Conduct can weaken our brand and our attractiveness as an employer. Our ability to work sustainably with safety and our Code of Conduct is a challenge for us. Making our employees aware of these matters and increasing commitment in the organisation will require time and energy. One activity this year will be a training course for all employees about the Code of Conduct and whistleblowing. We see a challenge in ensuring ideal health and safety for our employees who carry out work at our clients’ locations, and we will work to improve this through safety equipment, high-visibility gear and first aid supplies.

eNPS (the Net Promoter Score) measures the company’s attractiveness, brand and popularity among employees by answering the question: On a scale of 0 to 10, how likely is it that you would recommend this organisation as an employer to a friend or acquaintance? Index from -100 (worst) to 100 (best).

We want to contribute to a community where children and young people have meaningful free-time activities and where we can help young people to get an education, internships and jobs. So we participate in many activities with schools and associations. We also want to ensure good health and safety and environmental conditions in the workplace.

OUR OBJECTIVE

Contribute resources to community development . The goal is that by 2030 we will contribute to or participate in 100 different community development activities per year. Sustainable value chains. We will define a goal for our work with sustainable value chains for measuring according to Amfori, BSCI or a similar system. This work is underway, with the goal of having a system implemented in 2024.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy, Code of Conduct, Health and Safety Policy and Equal Treatment Policy, and through our management system. The group CEO and the business area managers are ultimately responsible, and each manager is responsible for the work at their own level of the organisation. Certain environment-related issues related to the immediate community are governed in part by our environmental policies and in part by the revisions and inspections linked to our permits. Currently we do not have any established systems for measuring and monitoring our goals in the Society focus area. Therefore, we do not show any key figures for them. We plan to design a system for measuring the number of community involvement activities and the value of these contributions during the course of 2023. The work of ensuring health and safety and environmental consideration in our value chains requires a careful analysis of our value chains to identify what system we need to use. This is a longterm project that will take several years.

COMPLETED ACTIVITIES AND EVENTS

The Proton Group’s businesses already demonstrate strong commitment to their local communities. We primarily support an array of activities that benefit children and teens. We have also supported the needy in Ukraine through donations to UNHCR. We also actively work with universities, trade schools and primary schools by offering opportunities for internships and degree projects, and we can participate in teaching and help with the design of certification programmes. In one project, about 80 students at Jönköping International Business School (JIBS) conducted a stakeholder analysis for the Proton Group as part of their course on Organisational Theory for Profit and Purpose in autumn 2022. They interviewed about 50 of Proton’s stakeholders. Proton Lighting has an established partnership with the inclusive employer Samhall, which provides production jobs to people who have difficulty breaking into the labour market. Proton Engineering Lithuania locally supports “Red Noses Clown Doctors International”, a non-profit organisation that spreads joy to those who need it a bit more, including children in hospitals.

CHALLENGES AND OPPORTUNITIES

Having a reputation as an active, valuable force in society enhances the Proton Group brand among our customers and stakeholders, which makes it easier to find attractive employees. That is why our action plan includes carrying out a training course for all employees regarding our Code of Conduct and whistleblowing. The course will include Proton’s attitude and efforts to ensure ethical actions in business relationships, human rights, a safe working environment and active environmental measures. To enhance opportunities to take environmental, social and ethical responsibility in society throughout the value chain, we are working to establish a groupwide system to assess and evaluate our suppliers from a sustainability perspective and thereby to identify and eliminate any risks. This project got underway in 2023 through an internship of a JIBS student.

ASSOCIATIONS AND ORGANISATIONS THAT THE PROTON GROUP CONTRIBUTES TO

• The Confederation of Swedish Enterprise

• The Swedish Electroplaters and Surface Finishers Society (SYF)

• The Scandinavian Automotive Supplier Association (FKG)

• Lagans Vattenvårdsförening (River Lagan water conservation association)

• Forsheda business association

• The Hillerstorpare community association

• Nissans Vattenvårdsförbund (River Nissan water conservation association)

• Anderstorp business association

• Interior Cluster Sweden/Föreningen svenska möbelklustret

• SPF (Svensk Pulverlackteknisk Förening) (Swedish powder coating association)

• Halland’s entrepreneurs’ network

• El-kretsen

• Sveriges Elgrossisters Service (Swedish electrical wholesalers’ network)

• SIS Standards Institute

• Värnamo Näringsliv business association

• Säker vatten (Safe Water)

• The Confederation of Swedish Enterprise Service

• FTi (Förpacknings- och tidningsinsamlingen)

• IFK Värnamo’s football school

• Värnamo Hockey

• Värnamo Tennisklubb

• Värnamo GIK (hockey club)

• HC Hockey Lidköping

• Skara Handbollsförening (handball club)

• Lundsbrunns golfklubb

• IF Hallby Fotbollssklubb

• Götaströms Golfklubb

• Gislaved Hockeyklubb

• Lions Club

• Aktiv Skola

Each year, IFK Värnamo’s popular football school attracts young people from the entire region as well as other parts of Sweden. The Proton Group is a regular sponsor of the event.

Activities that contribute to reflection

Understanding starts with breakfast

Equal opportunities and equality are grand concepts that can easily drift off into the ether. At Proton Lighting, these concepts have been brought down to earth and put into practice. A good breakfast or a brisk walk may provide fresh perspectives on the job.

Every day at 10 am, everyone at Proton Lighting in Värnamo put down their tools and put on their coats. It is time for a brisk ten-minute walk around the factory and, come rain or shine, regardless of the weather and the season and despite being voluntary, almost everybody joins in.

“For many years, we had exercise drills, but this is better. As I said, it’s not compulsory but, in my experience, most people look forward to their little

morning walk. We have also noticed major changes in both physical and mental health,” says Agan Sela, health, safety and quality manager at Proton Lighting.

Mapping important issues

During 2021, a pilot project was conducted at Proton Lighting to map areas employees considered important to wellbeing and job satisfaction.

“Among other things, we held an exercise in which they were asked to write down what they considered important on post-it notes. This grew into a considerable pile that we then sorted to ascertain the most important issues: opportunities for development, a reasonable wage, security, a sense of community, respect, good health with less stress, and shared coffee breaks,” says Agan.

Group-wide policy

For Proton Group HR manager Mari Lundqvist, it goes without saying:

“The most important thing isn’t drawing up nice-looking documents and plans. Success in providing equal opportunities is based on talking about the issues within the organisation. It should feel natural.”

The lessons of the pilot project, together with annual employee surveys, have provided the foundation for Proton’s new group-wide Equal Opportunities Policy.

“During 2023, all managers and staff in our various business areas will receive training on our Code of Conduct and equal opportunities work. Everyone should feel secure in the knowledge of how to proceed if they feel that their dignity has been violated, and of how our whistle-blower policy works, says Lundqvist, who underlines that it is not the policy in itself that gets the job done. This is something employees must do together, and the work is never done.

“In the Proton Group, we therefore undertake many activities that touch on various social issues and that can contribute to reflection. Thoughts and ideas that can then become second nature.”

Building a sense of community

The post-it note pilot project was the starting point for a successful project called the Year of Health. While this was fundamentally a health project, in hindsight it clearly had significant social impact. The morning walk is one of the activities

included in the project that have now been made permanent. Another is the monthly communal breakfast. According to Anh Le, a member of the production support team, this has been very rewarding, and not only for health:

“Nobody talks about work, we joke a lot. You get to know and understand one another better, which also makes it much easier to treat one another with respect and patience on the shopfloor. You know that a colleague needs a little time with the language and that you might need to explain something one more time. She believes that language is an important element of equal opportunities work.

“Vietnamese, Bosnian, Thai... we have many different mother tongues here at Proton Lighting, and knowledge of Swedish varies depending on how long you’ve been working. That’s why we always try to speak Swedish, both while working and on breaks. It’s important to use the same language, so we don’t misunderstand each other. For Anh, equal treatment is the same thing as job satisfaction. “Everyone respecting and speaking to one another. For me personally, it’s also important to have the opportunity to develop and learn more.” Right now, she is looking forward to a training course on quality.

Rotation has an effect

Agan Sela explains that skills development takes place on several levels: internally, on subjects such as quality and electrical safety, and, for those who are interested, externally in collaboration with, among others, Campus Värnamo.

“Another important element of skills development, participation and health is job rotation. We have established rotation as a standing concept. It’s not just a matter of reducing musculoskeletal injuries, but also of broadening one’s knowledge, about both your and your colleagues’ jobs. And its great for the culture.”

If the unthinkable happens Proton Finishing invests in personal safety

The surface treatment industry is considered heavy, dirty and dangerous. That’s why a new safety project was initiated in 2021. The goal is for the employees to have the latest personal protection equipment – and the knowledge to use it. “We want to be the best in the business at personal safety,” says COO Henrik Dyberg.

Proton Finishing is currently overhauling its sustainability measures as part of its longterm strategy. Occupational safety is a top priority, Henrik Dyberg says.

“It’s part and parcel of the job. When you work with surface treatment, harmful chemicals are used daily. Many of them can be lethal if not used correctly. That’s why we’ve launched a project focusing on personal safety.”

In collaboration with our supplier Medical Care System, Proton Finishing has taken stock of all units to investigate whether our routines and PPE (Personal Protective Equipment) can be improved even more. All employees will also take a training course.

“This isn’t about doing the bare minimum – we want to be the best in the business at personal safety,” Dyberg says. “Our aim is to have zero incidents and to make sure that everyone feels safe and secure at work.”

Immediate response is crucial

The top priority is to prevent accidents by having the right training, the right handling of materials and the right PPE, says Markus Wahren, marketing manager

at Medical

Care System.

“We’ve assessed all of Proton Finishing’s facilities and examined safety when handling chemicals. For example, we made sure that staff have the right PPE: gloves, coveralls, safety glasses, facemasks and visors.”

And should anything happen, the latest equipment must be on-site to neutralise the threat or minimise the damage.

“These chemicals can penetrate the skin or the eye and get into tissues, so it is extremely important to eliminate spills and splashes immediately and use a hypertonic rinse. This means that the rinsing solution extracts the chemicals from the tissues even if they have penetrated deeply. Chemicals that can penetrate the skin or eye can otherwise continue to destroy the tissue for days.”

Carrying a personal eyewash with you that will neutralise the chemicals saves valuable time because it can be used immediately.

Vital knowledge

It is not enough to have safety equipment on site. The employees must also have the knowledge to use it correctly.

“You need different kinds of protective gloves for

different types of chemicals. You can’t just put on any glove and assume you’re protected – you need the right glove. Another detail that many people miss is that all gloves that have been subjected to chemicals must be considered single-use gloves. You can’t put them down somewhere and let the next person use them, because they may have had a breakthrough. Many people who develop skin conditions have used old gloves where chemicals have broken through.”

Everyday safety

Marie Askestam is a process and maintenance manager at Proton Finishing in Forsheda, one of the facilities with the most hazardous working environments.

“Our chemical baths range from corrosive to hot, alkaline and acidic, so you need excellent safety procedures and emergency preparedness. In our facility, safety glasses, gloves and the new eye washes are mandatory as soon as you enter the production line. It’s very important to us to know that we have the absolute best equipment.”

The production line is now also equipped with a Diphoterine® solution in the form of a portable fullbody shower, not unlike a fire extinguisher.

“If you get splashed, you can strip down and wash it off immediately, instead of having to run off to an emergency shower. This type of solution can make all the difference. Because even if we know what to do to work safely, accidents do happen.”

Beautiful factories

“Personal safety is one of the most important elements of sustainable entrepreneurship,” says Maria Thom, quality and environment manager.

“We must be able to stand tall when we talk to our customers, end users and other stakeholders, and show that our work is sustainable and that the people working in our factories are healthy and happy.

In our strategy, we talk about wanting ‘beautiful factories’ – which doesn’t just mean attractive on the surface, it means that everyone who works here is thriving.

Now, we are equipping our factories with the absolute best emergency preparedness, while our employees are being specially trained in how to act if the unthinkable happens. Being able to offer a safe and secure workplace where staff enjoy working is vital in order for us to be able to recruit and keep employees. Having a good reputation is very important to us.”

The eyewash is easily accessible in a holster.

Hazardous fluids and chemicals are handled both in Proton Finishing’s lab and out in production. Here,Marie Askestam is working in the lab in Forsheda. The picture was arranged for the photo shoot, when only harmless fluids were used .

Safety equals social sustainability JL Safety in a long-term partnership with Fazer

Fazer is one of the biggest food producers in the Nordics and is very proactive about safety.

“It’s all about social sustainability,” says Jonas Sundell, Work Environment Manager at Fazer.

The Machinery Directive defines the basic health and safety requirements for all machinery released on the EU market. Every company that pursues any kind of machinebased production must ensure that it follows this directive, not just for the sake of the law itself, but to ensure safe, accident-free workplaces.

JL Safety in Skara, one of the companies in the business area Proton Edge, is a market leader in machine safety, risk assessments and CE marking. The company offers expertise and tools for meeting the regulations for machines and use of equipment, and helps the customers develop their machine safety procedures as a whole or as needed. One of the customers that has worked with JL Safety for a long time to ensure a safe workplace is food giant Fazer.

With sales of EUR 1.1 billion, Fazer is one of the biggest food companies in the Nordics, with products exported to more than 40 countries. Fazer employs about 6,000 people in seven countries in the bakery and confection markets as well as non-dairy and plant-based food products. About 500 people work at the three Swedish bakeries in Lidköping, Eskilstuna and Umeå.

Action plan and risk assessment

“Our partnership with JL Saftey started ten years ago when Fazer was looking for help in putting together all the pieces of the Machinery Directive,” says Dario Dzananovic, site manager at Fazer’s bakery in Lidköping.

This made it an obvious choice to turn to JL Safety when Fazer started its Safe Machines 2025 project. A preliminary study led to an action plan in which Fazer and JL Safety now jointly review procedures to ensure that they harmonise between all the bakeries. Strategic people are designated and trained to enhance skills in machine safety and CE marking – providing

training to people in Fazer’s management and purchasing as well as maintenance, project management and safety representatives.

“We have carried out a review of our machinery and continued to carry out risk assessments for all machines and machinery lines,” says Jonas Sundell, work environment manager at Fazer. “We have done these risk assessments both internally and with the help of JL Safety.”

“Same condition or better”

Safe workplaces should be a matter of course at all businesses. Yet Jonas Sundell was still pleasantly surprised when he took up the role of Work Environment Manager at Fazer three years ago.

“I was impressed that safety is the number one priority at the company. Fazer has taken a key decision that all machines and machinery lines that are part of the various bakeries should be at the forefront when it comes to safety,” says Jonas.

It’s all about minimising accidents and incidents involving old, new and refurbished machines. All of the 500 or so employees working at Fazer’s bakeries need to know what is required in terms of machine safety, hygiene and food requirements.

Dario, who is now in his fifth year at Fazer, elaborates:

“You should go home in the same condition as you came to work, if not better.”

The fact is that Fazer sees its proactive safety work as a part of its sustainability measures.

“Absolutely, it’s all about social sustainability,” says Jonas.

A task that never ends

Complying with the Machinery Directive means so much more than what at first glance seem to be purely safety issues, Dario explains. You need to conduct skills enhancement and you need to review and assess the machine fleet and technical standards.

Fazer sees its proactive safety work as a part of its sustainability measures.

A satisfied Work Environment Manager and Site Manager, who got “really good results” in a health and safety audit.

Jonas Sundell and Dario Dzananovic state: “JL Safety has been an excellent sparring partner for Fazer in our continuous safety and risk assessment efforts.”

“

“And all measures included in a review lead to improvements, not just for safety.

The production staff, the managers – all of us together do risk assessments, and they result in better processes and greater degrees of sustainability. In the long term, we will even see gains in reduced energy consumption.”

It is clear that Dario is passionate about this.

“All companies say that safety is their top priority, and a lot of them do very good things, but what I’m proud of and can really guarantee is that our work on safety isn’t just triggered by changes such as new equipment or other events. Fazer budgets for continuous safety measures, risk assessments and training that we carry out together with JL Safety using their CEDOC software.”

Considerable experience

Fazer uses a safety concept called LOTO, which is a procedure for safe access to machines that involves locking routines for operators and maintenance staff.

“JL Safety provides support and helps us develop this work. The staff are very knowledgeable and easy to get hold of, and that is something we really appreciate,” says Jonas.

Dario adds,

“JL Safety and the CEDOC software have helped us to coordinate everything, to work in a standardised and uniform way and to train us. It’s an arrangement that works extremely well.”

Dan Assarsson, Operations Manager at JL Safety and the person who has worked most closely with Fazer, describes the cooperation in equally positive terms.

“It’s a big project that Fazer has taken on, using risk assessments to make sure its facilities are safe. We’ve worked with Fazer for many years and also with other players in the food industry. Now we have applied all the experience we have accumulated to create the best possible conditions for Fazer to have safe machines for its employees and thus create sustainability for everyone through fair working conditions. Sustainability and safety always go hand in hand,” says Dan Assarsson.

ENVIRONMENT

If we destroy the earth and deplete our natural resources, entrepreneurship and growth will be meaningless.

Within the confines of this perspective, we have chosen to focus on our climate impact for the obvious reason that it is crucial to the future of mankind. The climate is also the single most important question to our stakeholders. If we do not take our responsibility, then we won’t do business. In the near perspective, we are working on our local footprint and what we can influence in our local environment, with the aim of reducing the negative effects of our operations and creating positive change. We are sweeping in front of our own door.

Climate impact

We want to contribute to the goals of the Paris Agreement by reducing our climate footprint. As our first step, we are doing climate calculations on each part of our operations, after which we will establish a plan for how to achieve our goal of being climate neutral by 2045.

OUR OBJECTIVE

Climate-neutral. Our goal is to be climate neutral as regards scope 1 (direct emissions) and scope 2 (indirect emissions from electricity) by 2035. In 2045 we will also be climate neutral as regards scope 3 (indirect greenhouse gas emissions outside the realm of the company’s operations). Goal fulfilment will be measured using the key figure CO2 per work hour. Energy consumption. The proportion of purchased electricity will have decreased by 40% by 2035. This goal will be measured in purchased kWh per work hour.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy and Environmental Policy, and through our management system. The group CEO and the business area managers are ultimately responsible and each manager is responsible for the work in their organisations. For a monitoring tool, we use key figures that are monitored annually, with the aim of doing so at shorter intervals. The key figures on electricity consumption and CO2 emissions are primarily based on purchasing data. The intent is to do climate calculations on all businesses in the Proton Group, after which we will establish an action plan for how to achieve our goal of climate neutrality.

COMPLETED ACTIVITIES AND EVENTS

In cases where we can control our own purchases, the entire Proton Group has purchased solely fossil-free electricity since 2012, and since 2020 all electricity comes from renewable sources. In 2018 all natural gas was replaced with biogas. Energy surveys have been done at group level and we have also in-

stalled charging stations for electric cars outside the headquarters and Proton Lighting. Proton Technology, which handles many samples from international companies, has reduced the number of outgoing shipments, and also offsets the climate impact of the shipments. In 2021, we took the first, very important step in our climate work with the climate assessment we did as a pilot project at Proton Finishing Forsheda. The lessons learned from this will serve as the foundation for the climate calculations at all of Proton Finishing’s operations in 2022.

CHALLENGES AND OPPORTUNITIES

Emissions of carbon dioxide from our operations make up the lion’s share of our negative environmental impact, but this is also the area in which we have the greatest opportunity to make the most changes. The energy transition is an extensive challenge, which is why we will be conducting climate calculations for the entire group. The calculations done so far at Proton Finishing show that we need to make ourselves independent of LPG (liquefied petroleum gas), which is responsible for a large portion of our emissions. We are currently working intensively to find alternative energy solutions for our LPG needs in Forsheda and Eskilstuna. In the business areas of Proton Engineering, Proton Finishing and Proton Lighting, we will also conduct energy measurements for lines and machines in order to identify opportunities to save energy and monitor the results of that. Several heat recycling projects are underway to reduce our energy needs, but to reduce the amount of energy purchased requires not only energy conservation, but also our own energy production. During the year, our first solar panel installation is planned to go online, at Proton Finishing Industripulver. At group level, we will implement guidelines for sustainable investments and climate compensation. We will also continue to install charging stations for electric cars at all of the group’s units.

Key figures

* Adjusted value from previous 6.7 due to new knowledge about emission factor biogas ** Business area Proton Edge not included

GOAL FOR 2035

-40%

OUTCOME IN 2022*

-28%

* Starting position 2021: 68 kWh per working hour

Local footprint

We want to contribute to a better use of resources by reducing our use of materials and preventing, reducing, reusing and recycling our waste. We also work to handle chemicals responsibly to reduce negative consequences to human health and to the environment.

OUR OBJECTIVE

Waste . Our goal is to have operations that by 2035 do not generate any waste that is sent to landfill or energy recovery. Instead, we will be able to recover materials, recycle, reuse or eliminate the waste. Candidate chemicals Our goal is that no listed substances will be included in the chemical products we use or in the products we sell as of 2035. Company cars . Our goal is that all purchased company cars will be of the highest environmental class by 2025.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy and Environmental Policy, and through our management system. The group CEO and the business area managers are ultimately responsible and each manager is responsible for the work at their own level of the organisation. For a monitoring tool, we use key figures that are monitored annually, with the aim of doing so at shorter intervals. Governance also occurs through checks and inspections regarding various environmental permits from authorities.

COMPLETED ACTIVITIES AND EVENTS

A large proportion of the activities that have been carried out up to now have been done in the framework of Proton Finishing. This is in part because Proton Finishing works intensively with chemicals, and also because the company very actively pursues change measures with the aim of transforming the entire industry. These measures include soil remediation of a previously owned, now divested property in Markaryd, renovated water treatment plants and improved

management of processes and water treatment plants. Investments in membrane technology in the plating bath in Forsheda have resulted in a more efficient process that uses fewer resources and generates less waste. During the course of the year, the process in the Forsheda water treatment plant has been optimised, which has allowed more water streams to be treated in an internal treatment plant instead of being sent away as hazardous waste. Proton Lighting has reduced its use of water in its paint shop and reduced the amount of particles in its outgoing air. The group’s policy regarding the use of company cars has been adjusted with new terms to increase the percentage of electric cars and plug-in hybrids.

CHALLENGES AND OPPORTUNITIES

The major risks in the focus area are linked to chemical handling in the Proton Finishing businesses, and to some degree also Proton Lighting and Proton Engineering. We have made some progress here in creating even more efficient processes and governance. Among other things, we will inventory our use of listed substances in these three business areas. For example, a project is underway to replace all remaining cobalt-containing passivations to cobalt-free. To create change, it is important to persevere and keep conducting projects that take us towards the future. One example is the improvement planned at Proton Finishing to establish a process with only passivation for zinc castings, which means fewer process steps and less use of resources, resulting in less waste. We continue to work hard to be able to bring in more water streams into the internal water treatment plant in Forsheda, in order to further reduce the large amount of hazardous waste this business generates, and also to be able to recirculate water into the process so it can reduce the amount of purified process water it emits. The small measures are also important; for example, JL Safety and Cedoc are planning to digitise their training material for customers in order to reduce the use of paper.

Waste

3,6

0%

Percentage

CANDIDATE CHEMICALS

34

30

0

listed substances in used chemical products listed substances in used chemical products

Everything that happens, happens in Värnamo – and that makes it easier to take a holistic approach”

Social, environment and economy – when you work in the lighting industry, it’s all connected. Johanna Gustafsson and Tobias Levinsson explain how.

“With luminaires from Proton Lighting, our customers can save energy and reduce their impact on the climate, while seeing their investment pay off financially,” says Johanna Gustafsson, environment and sustainability manager at Proton Lighting. “All this contributes to lighting that makes people feel good. But we have also created an internal development and production environment where we work actively to reduce our own environmental impact.”

Creating sustainable values for the customer

Energy-efficient lighting is an important element in the switch to a low-carbon economy, and now as energy prices are soaring, the economic impact is an increasingly important factor for customers, says Tobias Levinsson, product manager at Proton Lighting.

“We can take an everyday parking garage or similar facility as a typical example. They are often fitted with older model ‘fat’ fluorescent lights, what we call T8s. These old lamps consume a huge amount of electricity. By replacing them with modern LED luminaires fitted with smart controls, we can sometimes reduce the customers’ power consumption by up to 85%. In such cases, an investment in new luminaires can pay for itself in less than two years.”

But good luminaires alone are not enough. To achieve this kind of energy saving, they also have to be used in the right way. To ensure this, the luminaires are equipped with smart light sensors and proximity controls using microwave detectors. The best part about these sensors is that they don’t

just work the traditional way – switching the lights on and off in the entire facility when someone comes in.

“Rather, they note the movement of a person through the parking garage or facility and switch on the luminaires individually as the person passes them,” Tobias says. “They provide just enough light that the person can see well and feel safe, without wasting electricity in other parts of the facility where no one is.”

Good advice from start to finish

In order to achieve these results, Proton Lighting offers its customers advice throughout the process. The customer receives proposals for lighting planning designed to meet all current legal requirements, provide a good lighting environment and optimal power consumption.

“By having good awareness of the processes in our own manufacturing, we can help the customer make good decisions at an early stage,” Johanna says.

“For example, perhaps the customer wants a luminaire to be painted with a particular paint or colour. In that situation, we can check their wishes against our routines. If it turns out the paint isn’t good from an environmental standpoint, we can suggest a better choice.”

Production and manufacturing in Sweden

What makes Proton Lighting different from many others in the lighting industry is that everything happens in house, on site at Proton Lighting in Värnamo.

Johanna Gustafsson, environmental and sustainability manager, Proton Lighting. Tobias Levinsson, product manager, Proton Lighting.

“We have a one-stop shop: from development to choice of components to manufacturing to sales. We also have key people who are specialists in all the important fields: development, design, lighting planning and environment, which makes it easier to maintain sustainable dialogues throughout the chain,” Tobias says.

Johanna adds that it makes things easier that the products are developed and manufactured in the same place.

“This means that we can control the entire process – down to the tiniest bit of metal,” she says, giving several examples of initiatives they have carried out, which you can read about in the sidebar.

With production in house, Proton Lighting can also shoulder a significant amount of social responsibility. Through many years of collaboration with Samhall, the company has had the benefit of a number of workers who would otherwise be left out of the job market.

By having good awareness of the processes in our own manufacturing, we can help the customer make good decisions at an early stage.

The big bus garage at Veinge Bus needs a lot of light to facilitate the staff’s maintenance work. The new luminaires from Proton Lighting provide a lot of light and excellent working conditions without reducing energy efficiency.

“Samhall’s employees get the opportunity to work in our production or our warehouse. They are also offered electrical safety training. If they pass the training, they can start working as installers for us. Obviously this is a requirement for our own installers as well.”

Focus on the supply chain

Are there no challenges? Of course there are, Johanna says.

“The next question we need to ask ourselves is what our products contain, particularly the electronic components. We can’t just sit and wait for someone to come and tell us. Much of this is about gaining better knowledge about the supplier chain. Our goal is for our products to be completely SCIPfree – that is, free from Substances of Concern listed on the candidate list, which is also an EU requirement. If we identify such components, we must find alternatives to replace them with – and this is a challenge.

“As environmental and sustainability manager, I enjoy working at Proton Lighting because it is an organisation that dares to make choices, and that means we have good prospects of getting even further.”

COMPLETED INITIATIVES

By reducing the thickness of the metal in certain components, we have reduced material consumption and weight, which in turn leads to lower weight in transport and a reduced climate footprint.

Only powder coatings are used and the chemical processes are continuously monitored. Upgrading of powder coating guns, installation of new filters and new hanging technology in the paint shop have contributed to reducing waste and emissions to air.

Adjusting the final rinse stage has reduced emissions from rinse water by 75%.

All energy purchased is 100% renewable. The company has also installed 12 new electricity meters and a comprehensive control system to make the entire process energy efficient.

New energy-efficient LED lighting for fast-paced sporting events at the Munkedals BK arena in Skogsvallen.

A first step towards climate neutrality

Proton Finishing is the Proton Group’s pioneer in climate calculations. The first climate calculation was completed in the winter of 2021 at Proton Finishing in Forsheda.

“Apart from learning precisely where we need to implement measures, we can now give our customers detailed information about how the surface treatment they choose impacts the climate,” says sustainability developer Sandra Vatn.

SSandra Vatn is the sustainability developer at Proton Finishing. Her job is to improve the company’s health and safety and environmental measures and to head various developmental projects, including calculating the impact of the business activities on the climate. In the winter of 2021, the company began the complex task of generating climate calculations for all of Proton Finishing’s units. All the GHG protocols were complete in early 2023 and are now used in our customers’ sustainability reports, in Proton Finishing’s improvement measures and also in our quotations.

What is a climate calculation?

“We calculate our climate footprint by converting all impact our activities have on the climate into CO2 equivalents . We include all of our processes, both upstream and downstream in the facility, as well as the type of energy used and what CO2 emissions the products have before they come to us and the climate impact from our waste.”

That sounds complex!

“It is. The tricky part is that climate calculations are

fairly new to all of us; there’s not a lot of information for us to go on. But now that the first one has been done, we’ve established a working structure that we can base our continued work on, both in the Proton Finishing companies and in the other parts of the Proton Group. What we’ve learned is

Sandra Vatn is the sustainability developer at Proton Finishing.

* Conversion of the impact of all greenhouse-affecting gases, expressed as a single shared unit.

that it takes close dialogue with our suppliers; our purchases of chemicals and energy make up a large part of our climate impact. Many of our suppliers didn’t have this information but developed it at our request. And that takes some time and patience. By making these demands on our suppliers, we are also helping to drive development forward. Several of our customers have also started to demand the same things of us.”

How do you handle questions about climate footprint from your customers?

“We use our climate calculations to obtain key figures per surface-treated surface and line. This means that the customer not only learns the average for the entire facility but can get detailed information on the difference between different processes and base their decisions on that.”

What does the climate calculation at Proton Finishing in Forsheda show?

“The use of LPG is a big problem. Even if we already knew that, we didn’t realise what a large proportion it really represents. But the powder and zinc pellets are also high on the list, both because they are main products and because they have the highest emission factors, so these are also things we need to work on. We have already switched suppliers of zinc pellets and improved our climate profile through that change.”

Do you have any other projects under way?

“Yes, the solar panels we looked into last year are now on order and will go online this year. My colleagues are pursuing several exciting projects, for example a preliminary study on AGVs – automated guided vehicles – which will reduce the number of accidents with forklifts, technology to enhance corrosion performance with greener processes than ED coating, and of course speed enhancements that are directly linked to energy efficiency.

Surface treatment is an energy-demanding process in some cases.

“

The Stena Recycling facility in Skarvikshamnen in Gothenburg specialises in water and oil purification. They receive polluted water and oil from many different industries.

The separator from Volute is a strategically important part of the pipe installation by Jonas Bäckström and his colleagues at Weldin Gothenburg at Stena Recycling. Their sustainability commitment also extends to the grid structure and the piping on the roof.

Stena Recycling squeezes out the last drops

Recycling specialists Stena Recycling lead the way in the industry’s transition to greater sustainability. Pipe laying is a strategically important link in the company’s latest project in the port at Skarvikshamnen in Gothenburg, which is being carried out by the specialists at Weldin Gothenburg, a part of Proton Structure.

Stena Recycling is one of Sweden’s biggest recycling companies, aiming to help create a more circular society. Its business concept is to receive waste material from industrial production and other businesses for reuse or refinement into new products or new energy. Iron and metal, hazardous waste, electronics, plastic and paper are just some of the materials in which Stena Recycling has extensive expertise. The Stena Recycling facility in Skarvikshamnen in Gothenburg specialises in water and oil purification. They receive polluted water and oil from many different industries.

“The automotive industry, other manufacturing industries and car washes are our most common customers,” says Robert Karlsson, head of technology and development at Stena Recycling.

“All companies today face difficult demands to handle their waste materials properly. And that’s where we come in.”

Things no one wants

The idea is to take care of materials that are a problem for a customer, and further refine them

in a sustainable way so they can be of use in the next step.

“For example, say we get waste oil. We purify it and can send it on to another area of use. Everything we do is about sustainability – from the services we offer to our own operations. Our facility here in the port handles hazardous waste, which of course adheres to all legal requirements.”

Even more sustainable

Right now, Stena Recycling is remodelling its water purification process with the aim of reducing the environmental impact of its own operations. To help you to understand the details, let Robert Karlsson give you a crash course in water purification:

“When you purify water, it results in a substance called sludge, which consists of the impurities and particles that were removed from the water. The challenge with the sludge is that it still contains some water – to put it nicely, it’s sort of like chocolate sauce.

This sludge has a value, because it can be sent for energy recovery, for example to a combined heat and power plant. Currently, the sludge is stabilised with another material for transport.”

“By remodelling our facility and expanding it with a sludge dehydrator based on modern dehydration technology, we can create a drier material with less volume, which means fewer transports, which in turn will have a positive impact on fuel consumption and our climate footprint.”

Seeing and building the structure

So it’s a win-win situation – and that’s where the infrastructure specialists at Weldin Gothenburg come in. Stena Recycling bought the dehydration plant from a supplier, but Welding Gothenburg was chosen to remodel the facility and integrate the new dehydration plant.

“Our job has been to see to it that everything is installed effectively and intelligently so everything works exactly as planned,” says Magnus Krantz, project manager at Weldin Gothenburg. We also helped with the blueprints and design planning.

In addition to the process-related parts of the pipe installation, we were also in charge of installing mezzanines, stairs and railings. It’s quite an extensive project and it is to be CE-marked as well. We’re very happy to have been entrusted with the task. Much of our job is about listening and being flexible, so Stena Recycling really gets the most out of their sustainability investment. It’s an added bonus that the project contributes to a combination of better resource management, reduced climate impact and business benefit.”

The new facility will go online this autumn. Looking forward to the results, Robert Karlsson emphasises how much he appreciates the great teamwork.

“It gives a great sense of security and added value that the staff at Weldin Gothenburg have so much experience in design and welding, because they can provide solutions and good ideas based on knowledge and a lot of experience.”

Mezzanines and railings are an important part of the installation that contribute to a safe and easy environment to work in. From

the left: Jonas Brolin, Magnus Krantz, Stena Recycling’s Robert Karlsson and Jonas Bäckström.

ECONOMY

Having a healthy financial base is a necessity for us to pursue our sustainability measures. This is why we work with developing our operations and services from a economic perspective to make them more circular and attractive on the market. Having sustainable growth with expanding operations and finances is also a necessity for us to offer secure, rewarding jobs, contribute resources to society through taxes and fees, and last but not least, have the muscle to pursue change projects to benefit the environment and climate.

We want to contribute to inclusive industrialisation and promote sustainable innovations. By developing sustainable solutions, we can add value to our customers’ sustainability processes. With our own innovative development projects, we can also make our own operations more circular.

OUR OBJECTIVE

Sustainable products and services. In 2030 100% of the products and services we offer will be sustainability declared. Sustainability-promoting development projects from a brand and business perspective. By offering our customers circular solutions, we make sustainability measures a natural part of our business development. In 2023, a new brand strategy will be implemented.

GOVERNANCE AND MONITORING

Through internal development and improvement projects, we can contribute to improved sustainability for our customers and our employees alike. With more circular, resource-efficient and ergonomic solutions, we can integrate the sustainability perspective in our business concept and create sustainable growth for ourselves and others. However, we cannot report any key figures today for any of our focus areas, as we lack any tools for systematic monitoring. The goal is to reflect the internal information flows that already exist at management level in our business areas and see how far we can build them up. One such example is Proton Lighting, which currently performs light and energy calculations for its customers that concretely show the link between development, customer benefit and climate impact.

COMPLETED ACTIVITIES AND EVENTS

The Proton Group’s business areas have many established activities in this area. Proton Engineering’s development team supports automotive customers in the development of new solutions for fuel transition; Proton Finishing’s X-Team was created to design new solutions for sustainability in all areas of the

operations; and Proton Lighting carries out development projects for more ergonomic and energy-efficient working environments in combination with innovative LED products. In the framework of JL Safety’s operations, we offer safer working environments and machine safety. Proton Technology, a leader in corrosion testing, ensures that customers can develop products with better resistance and lifespan, which in the long term can contribute to reduced use of materials and better conservation of resources. Weldin helps its customers with solutions for energy transition and conserving energy and raw materials. To further enhance the group’s sustainability measures, the organisation was reinforced during the course of the year with sustainability managers in Finishing, Lighting and Group.

CHALLENGES AND OPPORTUNITIES

Since being able to produce sustainability declarations for products and services is a strong competitive advantage, we are beginning to develop a system for sustainability declarations in each of our business areas. For example, within the year customers of Proton Finishing will be able to see the climate footprint of their surface treatment right on their quotations. Examples of individual activities include that Proton Lighting will continue to develop the use of light controls for lower power consumption and enhanced comfort, and to develop products with a circular economy in mind. Proton Finishing aims to develop a more environmental pre-treatment for ED powder and a process with only passivation for zinc castings. At the same time, Proton Finishing will carry out an automation and AI project for a more sustainable operational procedure. We aim to implement requirements to incorporate recycled material in the metal components, increase prototyping and review the washing process in order to win new business in Proton Engineering. To equip the whole group for future challenges, we are switching our business system to Microsoft Dynamics. A new group brand strategy was decided on in spring 2023, which will be implemented during the course of the year.

We want to contribute to sustainable growth, where we can continue to invest in new technology, develop new products and services and develop our employees’ skills through profitable operations.

OUR OBJECTIVE

Profitability . We have a profitability goal of 6–8% over the business cycle.

Growth . We have an annual growth goal of at least 7.2%.

Solidity . We have a solidity goal of at least 35%.

Ambassadors We aim to measure customer satisfaction in all of our business areas and to achieve a cNPS* of 25 by 2030.

GOVERNANCE AND MONITORING

Our profitability is measured monthly, because the operating profit is measured the current month and the cumulative value is measured throughout the year. In the future we will measure all figures monthly, but always rolling. Until now, growth has been measured via a monthly report that compares with the previous year sales and budget. From January 2023 we will measure growth rolling over the last 12 months and in relation to the vision in the group strategy of a doubling of sales every ten years. Solidity is measured once a year.

COMPLETED ACTIVITIES AND EVENTS

In 2019–2020, the Proton Group made a series of acquisitions aiming to promote growth in the group by broadening the offering to the customers. The acquisitions included JL Safety and Cedoc, which specialise in consulting and software in machine safety (the Proton Edge business area) and Alsab (the Proton Finishing business area). With the acquisitions of Teknikrör i Kinna and Gunnar Hansson Svetsteknik, a whole new business area was created: Proton Structure, which focuses on advanced pipe installations and infrastructure for the process industries. Our assessment is that the demand for qualified services in this area will increase as customers refurbish their plants and transform their processes as a part of their sustainability measures. In 2023, the two companies merged into

Weldin Gothenburg AB to create better conditions for growth. In 2021, the Proton Group initiated a project in partnership with the University of Gothenburg and growth researcher Jonas Fasth to actively pursue and develop the group’s growth measures. The management group and business area managers have attended workshops and strategy development meetings, and now they are starting to implement their learning in the organisation. Our key figures on growth and solidity in 2021 require a comment to put them into perspective as regards the pandemic. Growth in 2021 is strong in relation to the goals, but must be viewed in the light of the loss of sales in 2020 and the recovery the following year. The strong solidity of 2021 can also be linked to the pandemic; government support was received and thus no dividends were paid out, which had a positive effect on solidity. Projects were carried out in partnership with customers and end customers to jointly find opportunities for better solutions and growth.

CHALLENGES AND OPPORTUNITIES

The Proton Group’s strategic growth goal is to double sales every ten years. We cannot achieve this on our own; it must occur in partnership with our customers. Our challenge at the moment is thus to get closer to our customers in order to be able to develop new, sustainable offers that support them in their profitability and in their sustainability development. Among other things, we need to get involved earlier in our customers’ product development process to meet their needs through development. To get an understanding of how well we meet their expectations, we will conduct customer satisfaction surveys via NPS in all companies. To grow and develop, we need to enhance our sustainability profile – by providing more information and communication through customer meetings, social media and events, for example. Based on the dialogue with our customers, we will then set aside the necessary development resources to continue with our growth-promoting measures. We cannot attain sustainable growth on our own; it will only be in partnership. Thus, a challenge for the future will be to find more partners in many areas to further enhance our opportunities for sustainable solutions, products and services.

Key figures

ANNUAL PROFITABILITY

As a percentage over a business cycle.

GOAL

6-8%

ANNUAL GROWTH

Percentage per year.

6,3% 6,1%

OUTCOME IN 2021* OUTCOME IN 2022

OUTCOME IN 2021

6%

4,5% OUTCOME IN 2022

>7,2%

GOAL

* Outcome compared to 2019 due to reduced turnover in the pandemic year 2020

GOAL >35% SOLIDITY

Percentage per year.

OUTCOME IN 2021

49% 52% OUTCOME IN 2022

Growth researcher: Change makes companies and individuals grow”

Growth is a priority in the Proton Group’s strategy – and is also part of the group’s sustainability strategy. In 2021, a growth project was initiated in collaboration with the School of Business, Economics and Law at the University of Gothenburg. The aim is to create the change needed to achieve the group’s growth goal.

Jonas Fasth is a researcher and lecturer at the Gothenburg School of Business, Economics and Law, where he focuses on strategy and change processes in growth companies. In his research, Jonas studies the dynamics of growth to develop knowledge about the activities and processes that created it. His focus is on the actions of the managers and employees of growth companies.

In his collaboration with the Proton Group, Jonas was in charge of workshops and discussions that will form the basis of our future change work. The project was conducted at management level and resulted in a change project for which we will build support in the organisations in each of the business areas.

“The core question I’m trying to answer is: What defines a growth company?” he explains. “Growth companies are good at handling change and thinking outside the box. These are insights that greatly benefit both employees in the company and private individuals. Change makes companies and individuals grow.”

What is change?

“Change is learning. Imagine a company, or person, for that matter, being able to make maximum use of all the available resources – both those within the company and those in the world around them. The possibilities would be endless. It is theoretically possible, but in real life no one manages it, because there is something in the way. I call it the ‘understanding gap’. The understanding gap is the difference between where we are now and what we have the potential to achieve. It affects the way we think and our mental map, which is what we base our actions on as individuals and as groups. When we realise that we can do things differently, that we can change things, we reduce the gap and get a bit closer to that optimal situation.”

What does it take to succeed with change?

“If you run a business, it’s important that you have the right people. It doesn’t matter how good your ideas are if you don’t have staff who can carry them out. But with the right people you can succeed, even if the idea is only semi-good. As a business,

you need to recruit, and keep, employees who have that energy. Then, of course, not everyone has the same energy levels, and they don’t have them all the time. Some people are going through a difficult period in their personal lives, or have other reasons to resist change. If 100 employees participate in a change process, you can bet that there are 100 different perceptions of what’s going on. All people act based on their understanding and do their very best. It’s very unusual that someone resists out of sheer spite. To create change and energy, we also need a clear framework that gives us the best conditions to work in. So we need to paint a clear picture of what goal we want to achieve and create a game plan that shows how we work and according to what values. Then all employees need to have the right conditions to act based on what they can and want to achieve. This is not about comparing performances, who does more and who does less, it’s about everyone contributing in their own way. And finally, the company must have the energy, the skill, the time and the money it takes to implement

the changes. In a learning organisation, you create time and space for people to think, but unfortunately time is often lacking in organisations.”

Jonas Fasth is a growth researcher at the University of Gothenburg

It is our values that carry us forward”

Our core values are the foundation of Proton Engineering’s sustainability measures.

“From a pure business perspective, our sustainability measures can contribute to giving our customers added value. And here, our values carry us forward and have given us a certain advantage,” says Proton Engineering’s CEO Marcus Malveholm.

roton Engineering is registered with NQC Supplier Assurance, a self-assurance questionnaire (SAQ) system for sustainability reporting. The system specialises in handling supplier risks in the automotive industry and according to Supplier Assurance is the most frequently used self-assurance system in the automotive sector.

Global advantage

In the latest report, Proton Engineering shows a total score of 80%, a strong result in national comparisons and even globally. The industry average in Sweden is 60% and the global average is 67%.

Proton Engineering’s CEO Marcus Malveholm thinks that the good results are due to the company’s core values.

“We have a strong grounding in our values, and sustainability is a natural part of this. Our goal was not to get bogged down in internal measures. We have taken it a step further and begun to measure and understand our footprint on the world with the assistance of our suppliers.”

One of the areas in which Proton Engineering has succeeded particularly well is in the use of materials, prioritising recycled and traceable metal.

“Being able to procure and offer our customers recycled materials is an effective way of reducing

our and our customers’ carbon dioxide footprint, without in any way affecting the quality of the finished component,” says Marcus Malveholm.

“We do not use any environmentally hazardous chemicals in our production and we monitor the lists of harmful substances.”

The stringent requirements Proton Engineering has for their suppliers apply across the board.

“Naturally we require that they follow all conventions, laws and regulations. But we also want them to select at least three areas under the Global Compact in which they regularly measure and demonstrate improvements. We are still in the early stages of these efforts, but we have begun doing regular follow-ups of our suppliers on site.”

No management system

What brings down the total score of Proton Engineering is the working conditions, human rights and health and safety in the workplace, says Marcus, explaining that they do not have a management system for these issues yet.

“For companies operating in Sweden, where we have exemplary labour laws, health and safety legislation and strong unions, it has not been deemed necessary to establish management systems for monitoring these things. Everything works well

anyway. But the lack of a management system brings down our points, so we plan to establish one, such as ISO 45001, which is the management system for health and safety. But I can’t say when it will happen; nothing has been decided yet.”

Marcus points out that Proton Engineering has a long tradition as an industrial company with strong roots in the local community.

“The people in and around the company are extremely important to us, and we have a long tradition of offering our employees growth opportunities, both in the form of CPD and in the form of new tasks. We also work closely with the region’s universities and host at least one degree project a year.”

Future challenges

During the course of the year, Proton Engineering conducted an energy audit and identified opportunities to save energy and reduce our climate impact.

“The result is that we are currently replacing our old T8 fluorescent tubes with energy-efficient

LED lighting. We will also make investments related to our compressors, and we are planning a major initiative to recycle the heat from our automatic welding machine, using it to heat the building.”

Other improvement opportunities that Proton Engineering has identified are in IT security, although this is an issue related to group-level management.

From a financial sustainability perspective, Proton Engineering, like many other companies, faces major challenges.

“There is great uncertainty, with worries about rising inflation and prices of everything from materials to energy and transports. This is unfortunately a situation we can’t remedy just by saving; for us it’s about working efficiently and balancing our costs according to what is reasonable. We have to find a way to ensure that everyone in the supply chain, all the way to the end customer, has the opportunity to generate a profit and we can share the increased costs. This is a giant challenge now, for us and everyone else.”

CEO Marcus Malveholm

“We

have a long history of offering our internal talents the chance to have a career or try out new fields.”

80% Proton Engineering’s total score

60% National comparison

67% Global comparison

NQC Supplier Assurance, SAQ Self assurance system, 2021 result

Company management

Working conditions and human rights

Health and safety

Business ethics

Environment

Supplier dialogue

Responsibility when purchasing raw material

100%

37% 68% 80%

93%

80% 100%

Our skills contribute to products that last longer”

The ability to create change through others is Proton Technology’s most important contribution to sustainability.

“Globally, corrosion damage in industry is said to correspond to about three per cent of a country’s GDP; the same is true in Sweden,” says Stefan Gustafsson-Ledell. “That’s a huge amount of money, and a massive environmental impact, when all those parts need replacing.”

Great demands and tough conditions

Proton Technology in Bankeryd is considered one of the leading laboratories in the industry for corrosion testing. The business is based on the concept of testing according to applicable requirements regardless of where in the world the product is used, whether for high temperatures and humidity or cold climate and salted roads.

The business is accredited to ISO/IEC 17025, certified to ISO 9001 and 14001, and a member of the international ILAC network. The facility in Bankeryd has the equipment and expertise to conduct tests using over 200 different methods corresponding to a variety of industry standards and requirements. Proton Technology has customers in many of the world’s leading truck and vehicle manufacturers and their customers worldwide.

It also has customers in the furniture and manufacturing industries.

Lasts longer

For Stefan and his colleagues, the core operations – the services – are Proton Technology’s significant contribution to a more sustainable society.

“If we can verify the effect and the requirements for the surface treatment, we contribute to ensuring that our customers’ products last longer. Many of our customers have also started looking at their surface treatment methods to see if there are more environment-friendly processes that give the same or better results. Our tests help them with that. I also like to think that our flexible attitude and stringent requirements contribute to spreading knowledge and changing attitudes and methods on other markets around the world.”

And Proton Technology’s customers confirm this. Patrik Gustafsson is Head of Cab & Bus Body, Materials Technology, YTMR, at Scania:

“The market today has zero tolerance of corrosion damage, both aesthetically and in terms of corrosion affecting function. Scania is a

“With our tests, we contribute to reducing the throw-away mentality worldwide,” says CEO Stefan Gustafsson-Ledell.

“With our tests, we contribute to reducing the throw-away mentality worldwide.

premium brand, so we do not permit any kind of corrosion on our products. Corrosion testing our components in different environments is necessary to ensure the quality of our products over time, and therefore also an important part of our sustainability measures. By making sure that our components meet the requirements of our standards, we can achieve the premium level we strive for. Scania has approved Proton Technology to conduct corrosion tests because they meet our extremely high demands for quality, reliability and delivery.”

Thomas Rönnblom, Global Test Manager at IKEA, has similar thoughts:

“Regularly testing the quality of our products’ surfaces as regards corrosion and adhesion is a necessity for maintaining high quality, no matter where in the world the product will be used. There is also a strong sustainability argument, because high quality means a long lifespan.”

People in focus

Environmental impact in the operations is limited.

“We use chemicals in some of our tests, but a very small volume and the handling is well documented and regulated under our ISO 14001

certification. Salt water is our biggest consumable,” Stefan continues.

The transport of samples from Swedish and international customers to the lab in Bankeryd is the part of the operations that generates the greatest climate footprint, but there are no precise calculations of how great it is.

“However, we do have established methods for limiting transport emissions as much as possible. We have extensive information routines to ensure that our customers send us the right samples and the right number of them to avoid unnecessary transports. As standard, we do not send the samples back; we take it upon ourselves to recycle the materials. All transports are carried out by logistics companies that offset their climate impact.”

Because Proton Technology is a service company, its employees and their skills are a priority element of sustainability.

“We have a major focus on the people in our organisation and work hard to be able to offer a good, safe working environment for the individual to be able to develop. We want our employees to stay and contribute for a long time.”

CEO Stefan Gustafsson-Ledell

Proton Technology in Bankeryd is considered one of the leading laboratories in the industry for corrosion testing. It has the equipment and expertise to conduct tests using over 200 different methods corresponding to a variety of industry standards and requirements

Box 1002, 331 29 Värnamo, Sweden

+46 370 69 56 20, info@proton.se

protongroup.com