Taking sustainability issues into considerations in operations increases the value of the company by leveraging opportunities and managing financial, social and environmental risks. The Group applies the precautionary principle and takes action to prevent or mitigate injury or harm to human health or the environment.
Our business is exposed to a number of risks, such as product development risks, production and supply chain risks, risks of corruption and fraud, reporting risks, environmental as well as health and safety risks. These can potentially have a greater or lesser material impact on the Group. The responsibility for long-term material risks follows the Group’s delegation procedure and is imparted from the Board to the CEO and President, and from the CEO and President to the Divisional Presidents.
Risks related to human rights, health, safety and the environment can arise in the entire supply chain, both at our suppliers and at our own production facilities, and these risks can be followed by reputational risks for well-known brands owned by the Group.
Sick leave and issues related to wellness can negatively impact the productivity of the Group and unsatisfied employees may also not recommend Husqvarna Group as an employer. The Code of Conduct, policies and guidelines, as well as the People Process provide a foundation for a sound business environment.
Having a broad supply chain increases the risk that products may contain components that are not produced sustainably. The Group and its suppliers must share the same high standards for the environment, labor and human rights.
The risk of corruption and fraud exists in markets where Husqvarna Group conducts business. In regions with estimated higher risks, Husqvarna Group strengthens its efforts
Environmental risks related to the Group’s operations include physical changes in climate and natural resources, changes in customer or legal requirements for products, generating and handling emissions and waste, and potential environmental liabilities in connection with the acquisition of land or production facilities. In the case of acquisitions or cessation of operations, environmental risk assessments are always conducted by qualified experts.
More information on risk management can be found in the Annual Report