Creating sustainable value

Two years into Sustainovate 2025, which is our strategic approach of combining sustainability and innovation, and we have seen good progress this year.

In some cases, it is visible in the numbers, such as our -32% reduction in CO2 emissions since 2015 across our value chain. Our progress can also be measured in the launches of innovative products like the Husqvarna CEORATM, our autonomous professional lawncare solution, and Husqvarna Construction's PACE battery system; which are disrupting markets for professional users. Or, it is seen through the customers, organizations and suppliers we have influenced to make more sustainable choices. Whether in the data, the solutions, or the partnerships, these are all essential contributors to our ambition to lead the industry in low-carbon, resource-smart solutions.
At the same time, 2022 has been overshadowed by major global events. The continued effects of the pandemic and the outbreak of a tragic war in Ukraine have had a devastating impact on human lives and were followed by economic turbulence. These are powerful reminders that our success rides on striking a balance between managing the long-term view and being responsive to a fast-changing landscape in a responsible way.

We create sustainable value by contributing to society with solutions that tackle climate change and resource scarcity, all while consistently delivering returns to our shareholders.

Leading our industry

We aim to lead by setting high and long-term ambitions and delivering solutions to complex challenges, like resource scarcity and transformation to net-zero emissions. This benefits our customers, investors, society, and employees, all of whom value our leadership ambition. That is why Sustainovate lies at the heart of our strategy. Through Sustainovate and its three targets for Carbon, Circular and People, we are taking on global challenges of our time, and are addressing them through our pioneering spirit and innovation capability. This mindset creates lasting value by generating financial returns for our shareholders and contributing to a more sustainable society. Simply put, this is sustainable value creation.

Climate action

Summarizing 2022, our CO2 footprint reduction is at -32% and we are on track to deliver on our Science -based target of a -35% CO2 reduction across our value chain between 2015 and 2025. Our efforts to transform our business continue. Our ambitions include increasing our share of electrified motorized products to 67% by 2026 from 34% today. Although demand for electrical and autonomous products is growing, supply-chain disruptions impacted our ability to deliver electrical products according to plan this year. This fall, we announced that we are accelerating our efforts to shift to a low-carbon offering and will increase R&D investments in autonomous mowers, battery, smart watering and professional product segments. This investment is a meaningful step even beyond our 2025 Carbon target. Husqvarna Group is a company that thrives on transformation. This capability has never been more important as we lead our industry into low-carbon, resource-smart solutions. We are building an ever stronger Group by capturing new opportunities that strengthen our position.

Triggering change for circular solutions

With ten approved and 19 nominated circular innovations and a growing funnel of great ideas, we are also on track to launch 50 solutions for a resource-smart customer experience by 2025. Launched this year, Gardena's EcoLine of gardening tools made with recycled materials is a great example of how a new mindset and methods can speed up the development of more sustainable solutions. It also encapsulates the intention of our circular opportunity: to encourage us to rethink how we design our products and transition to more sustainable materials like recycled plastics.

Engaging people in sustainable choices

2022 is the first year of reporting on the People target to empower five million customers and colleagues to make sustainable choices. We see a growing understanding of the need to shift away from both fossil-fuel solutions and primary raw materials and there is an increasing willingness to pay for more sustainable choices. This is a start, but we need to broaden our offering, deepen engagement and continue to build partnerships to make the impact we want. To make this difference, we need to empower our teams. In 2022, we launched our sustainability e-learning program to raise awareness about how we can engage in solutions for future generations and for our business. To date, over 2,000 employees have taken the course. Lastly, I want to reiterate how grateful we are to all our colleagues, customers, suppliers and partners who play such a big part in our Sustainovate journey. We’re looking forward to driving our next phase of Sustainovate together

Pavel Hajman
CEO