Side 24
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 24 to eliminate work-related accidents, thus we will continue with even stronger focus on behavior and emphasize that no matter what, personal safety always come first. Safety will continue to be on top of the agenda in the year to come. Focus on ongoing learning We strive to continuously upskill our employees, so the value of the individual employee increases and the employee skills remain relevant inside as well as outside of TCM Group. We use on the job training and through annual review we together with the employee make plans to support this. We believe that training has the best effect when it is available when it is most relevant for the individual and it can be applied in practice. Besides working with learning and training internally, our TCM Learning platform also covers the training of sales staff for our brands and kitchen installers. Tolerant workplace We must take responsibility for training the next generation of qualified employees and give them the chance to learn relevant competencies and gain useful work experience. Throughout the year, TCM Group helps many people to gain practical work experience, all of whom for some reason need a helping hand to gain a foothold on the job market. We work continuously with apprentices in TCM Group and in 2023 we had 12 apprentices in the Group. We have become more focused on hiring people with different backgrounds to our offices to reap the benefits of diversity. We are also committed to creating positions with reduced working hours, wherever it is practically possible, and we continuously offer citizens job clarification processes in close collaboration with the municipality. A talented and diverse workforce At TCM Group we are convinced that a diverse and inclusive work environment will benefit our business and our society in general. At TCM Group, we recognize the differences between our employees. We believe that diverse teams, including management groups, have a better as well as more innovative collaboration leading to better decision-making that are encouraging inclusiveness and tolerance among employees. In TCM Group, we work actively to be a responsible workplace that recruits, promotes, and develops employees based on the individual's competencies and support diversity. We thus aim for our recruitment, promotions, terms of employment, and any dismissals to be carried out without regard to gender, age, nationality, sexual orientation, physical ability, disability, political opinion, ethnicity, family status, religiosity, or other beliefs. We also aim to achieve an appropriate equal distribution of men and women in managerial positions. Our approach to promote diversity and inclusion is formulated and anchored in our diversity and inclusion policy. The policy is available on TCM Group homepage. Case: AUBO Production - Social responsibility At AUBO Production is almost 10 % of the employees employeed in positions with reduced working hours, in jobs that are designed specifically to the individual and their needs. This is not somehting new, but deeply rooted in the culture of AUBO. The key to this, is that they speak openly about the individual's limitations and allign expectations. AUBO Production know they have been a success when flexjobbers resigns -ready to take on new challenges outside the organization. We constantly strive to ensure that every employee has the same opportunities, regardless of gender. As a result, we focus on equal terms and identify candidates of different genders when we hire new managers. We also seek to ensure a workforce composition consisting of a combination of both young and experienced employees. We seek to promote diversity and achieve sensible gender diversity in both the Board of directors and the Executive Management and other management levels. TCM Group aims for a gender composition in the rest of management as well as in the total workforce, where the underrepresented gender makes up at least 40% in line with the objective for the composition of the board of directors (see governance section page 31). The executive management consists of the CEO and CFO who are both male, but including second management level the underrepresented gender makes up for 44%. For the complete management group the underrepresented gender makes up for 31%. The current composition reflects the traditional gender distribution within manufacturing companies, where there is a predominance of male foremen in production, and at the administrative level, a slight predominance of female employees. During 2023 new competences from both gender has been added to the management group. Development towards a more equal gender distribution in other management levels will happen gradually in connection with organisation development and recruitment.We seek to meet of target by 2029. Compensation At TCM Group it is our policy that equal jobs are rewarded with equal pay. Any difference in pay is solely based on qualifications and experience (please see page 83).
Side 25
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 25 We take responsibility UN Global Compact principles: 7, 8, 9 We take pride in the fact that all our products are both designed and produced in Denmark. Good craftsmanship is a focal point in our production in combination with quality and a high degree of innovation. We focus continuously on reducing our climate impact, and our production waste and increasing the recycling rate of our waste. Environmental sustainability and emissions It is TCM Group’s ambition to achieve net zero direct and indirect emissions from sources owned or controlled by TCM Group (Scope 1 and Scope 2) by 2028. An important step towards this has been to enter into a contractual agreement ensuring that since January 1st 2023 our electricity consumption has been fully covered by renewable energy certificates from wind and solar power. During 2023 AUBO Production became part of TCM Group. Having already gone through meny of the same steps as TCM Group towards reducing the CO2 emissions, the addition of AUBO only affected the Scope 1 emission of the Group. Approved SBTi target Having already taken the first steps towards a reduced CO2 emission, we have in 2023 set a CO2 reduction target which has been approved by Science Based Targets initiative (SBTi). We have set a target of reducing our scope 1 and scope 2 emission by 42% by 2030 from a 2021 baseline year. According to SBTi guidelines a company of TCM Group size must ensure min 42% reduction of scope 1 and 2 with baseline year 2021 by 2030 to be in alignment with the Paris agreement. Having our target approved by SBTi also means we have committed to start to map our scope 3 emissions which will be a main priority in 2024. TCM Group has committed to ensure net zero C02 emissions for scope 1 and 2 by 2028 and we continue our journey to meet this goal. Electricity consumption In 2023 TCM Group has decreased its electricity consumption by 17%, this despite that AUBO Production has been included into TCM Group accounting for the full year of 2023. At AUBO Production we see an increase in electricity consumption, this is a result of a transition from heating systems based on natural gas to electric heating pumps. The direct savings are a result of investments made to increase energy efficiency and continuously actively promote how daily awareness and behavior can affect energy efficiency at our production facilities. Electric company cars TCM Group operates a company vehicle fleet consisting of 28 mixed passenger vehicles and commercial vans. To reduce our impact, we have in 2023 taken the first fully electric vehicles into our fleet. The transition to electric cars will happen gradually and at a pace that follows the development of charging networks and regular replacements of vehicles. Waste At TCM Group we have a constant focus on limiting waste in general. At our manufacturing sites is all waste sorted in material fractions, which allows us to ensure that waste is used with the highest possible resource value. Our wood fraction is returned to our chipboard supplier and together with wood from Danish recycling centers used for production of chipboards that then will be used by TCM Group in the production of new kitchens. Wood from our worktop production of useable size finds new use as serving trays or is delivered to wood workshops at local schools. In the coming year TCM Group will continue its focus on waste management and waste reduction internally, with suppliers and engage in external partnership as TCM will participate in two different projects under Closing the Loops, value stream focused projects supported by The Danish Board of Business Development. While we have made good progress in raising the percentage of waste that goes to recycling in 2023, these external partnerships can become crucial to reach our aim of recycling 99.7 % (based on weight) of all material categories during 2025. Water management TCM Group uses very limited amounts of water for production. Water is primarily used for sanitation and heating purposes. Water used for production is used to support our painting processes; any wastewater in that respect is carefully separated and disposed of in the right manner. Case: Waste management Through an intensive focus on waste management and the dedication our employees, the Nettoline factory has been able to not only to ensure an increase in the portion of waste that is recycled by 18.5% but at the same time they have been able to reduce the amount of waste with 111 ton. Distribution of Co 2 emission Transport 20% 10% Heating 80% 44% 2023 2022 Electricity 0% 46% The shift in the distribution of TCM Group C02 emissions in 2023 is a result of only using renewable electricity.
