Assa Abloy (ASSA) Sustainability Seminar 2025 summary

Strategic approach to sustainability

• Sustainability is a core driver for profitable growth, integrated across all divisions and business processes, with each division responsible for its own agenda and group-level coordination.

• The company is ahead of most 2025 sustainability program targets, including energy and water intensity, hazardous waste, and organic solvent reduction, with a 36% reduction in Scope 1 and 2 emissions and a 10% reduction in Scope 3 emissions since 2019.

• Science Based Targets are central, with a 50% reduction goal for Scope 1 and 2 and a 28% reduction for Scope 3 by 2030, and net zero by 2050; progress is tracked with granular data and cross-functional teams.

• Sustainability is embedded in executive incentives, governance structures, and acquisition due diligence, with regular board oversight and integration of new entities into reporting and targets.

• Regulatory compliance is proactive, with early CSRD reporting, double materiality assessments, and alignment with global standards, supporting profitable growth and market leadership.

Sustainable innovation and product development

• Sustainable product innovation is guided by the Sustainability Compass, focusing on lifecycle thinking, circularity, and transparency, with tools for portfolio and product-level carbon footprint analysis.

• All new products must achieve at least a 20% CO2 reduction compared to previous versions and include a sustainability value proposition, with EPDs and LCAs widely used for transparency and compliance.

• Circularity is advanced through handbooks, pilot projects, and spare part centers, aiming to enable maintenance, reuse, and recycling across diverse product lines.

• Digitalization, AI, and connectivity are leveraged in products like EcoLogic, which optimize operations for energy savings and reduced carbon footprint for customers.

• Sustainable innovation supports decoupling growth from emissions, with tools for scenario planning and strategic decision-making.

Supply chain and Scope 3 emissions management

• Scope 3 emissions, representing 96% of the total footprint, are addressed through supplier engagement, data accuracy improvements, and targeted action plans for procurement, innovation, and logistics.

• 95% of supplier spend is covered by signed Codes of Conduct, and 100% of direct material suppliers in risk countries are audited, with corrective actions and re-audits as needed.

• Sustainability audits are conducted in risk countries, with a structured process for corrective actions and continuous improvement, and child labor is a zero-tolerance issue.

• Supplier summits and individual engagements drive awareness and joint action on CO2 reduction, focusing on greener materials, recycled content, nearshoring, and process improvements.

• The supply base is diverse, with large suppliers generally more advanced in sustainability, and ongoing efforts to align all suppliers with Science Based Targets.