CSR & SUSTAINABILITY REPORT 2019/20
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CSR & SUSTAINABILITY REPORT 2019/20
CSR & SUSTAINABILITY REPORT 2019/20
CONTENTS
ABOUT BANG & OLUFSEN 3 RESULTS:
LETTER FROM CEO 4 Environmental & climate impact 11
Resource efficient operations 11
BUSINESS MODEL 5
Sustainable products 12
RISK ASSESSMENT IN Responsible employer 15
BANG & OLUFSEN’S VALUE CHAIN 6 Work life 15
Diverse culture 17
CSR STRATEGY 7
Role in society 19
UNITED NATIONS SUSTAINABLE Future innovators 19
DEVELOPMENT GOALS 9
Sound & health 21
Responsible partner 23
OVERVIEW OF CSR RESULTS 2019/20 24
CSR TARGETS FOR 2020/21 25
ABOUT THE REPORT 26
BANG & OLUFSEN FACTS
1925 900 70
FOUNDED IN 1925 THE COMPANY EMPLOYS OPERATES IN MORE
IN STRUER, DENMARK AROUND 900 PEOPLE THAN 70 MARKETS
ABOUT THIS REPORT
This report provides a status on Bang & Olufsen’s work on Corporate Social Responsibility (CSR) and Sustainability for the
financial year of 2019/20 in compliance with the reporting requirements set out in section 99a and b of the Danish Financial
Statements Act (Årsregnskabsloven). The intention is for the report to provide insight and understanding into the scope of
Bang & Olufsen’s CSR work, and how these activities form an integral part of the day-to-day business of the company.
2 BANG & OLUFSEN
CSR & SUSTAINABILITY REPORT 2019/20
ABOUT BANG & OLUFSEN
Bang & Olufsen is a global design icon operating in the combination of beautiful sound, timeless design, and
intersection between consumer electronics and luxury. unrivalled craftsmanship.
The Company was founded in 1925 in Struer, Denmark,
by Peter Bang and Svend Olufsen, whose devotion and The company’s innovative and progressive products
vision remains the foundation for the company. are sold worldwide in mono- and multibrand stores,
online and business-to-business. Bang & Olufsen also
The rich heritage built around the relentless determi- engages in brand collaborations and brand licensing.
nation to create products that push the boundaries of The company employs around 900 people and oper-
audio technology continues to place the company at ates in more than 70 markets. Bang & Olufsen’s shares
the forefront of audio innovation. Every Bang & Olufsen are listed on NASDAQ Copenhagen A/S.
product continues to be characterised by the unique
OUR VALUES
PRIDE, PERSISTENCE AND PASSION
OUR CORE CAPABILITIES
BEAUTIFUL SOUND
All products are created to deliver
the most seamless and powerful
sound experience no matter the
circumstances – natural, authentic
and as the artist intended, regard-
less of size or shape.
UNRIVALLED
TIMELESS DESIGN CRAFTMANSHIP
Design starts by seeking true Only materials of the highest
innovation to make each product quality are used in Bang & Olufsen
better. Innovation is the inspira- products. From pearl-blasted
tion that drives form and expres- anodised aluminium, authentic
sion and the end result is design leather, Scandinavian wood and
that is performance-driven and the fabrics that cover the products,
magical. the company’s commitment to
craftsmanship is unique.
BANG & OLUFSEN 3
CSR & SUSTAINABILITY REPORT 2019/20
LETTER FROM THE CEO
Dear stakeholder,
implemented for Beosound Balance We partnered with Sound Hub
2019/20 was a challenging year for and Beosound A1 2nd generation. Denmark to help 12 start-ups within
Bang & Olufsen with lower than ex- Bang & Olufsen is widely recognised the sound and technology industry,
pected sales and COVID-19 impact- for the longevity of our products, initiated six STEM initiatives towards
ing our business. To improve our and longevity has great significance young people, including our annual
financial performance, we launched for sustainability. Our ambition is ‘B&O Innovation Camp’ that this
a new strategy and implemented to continue to make products with year took place in Shanghai with
several initiatives, and we have a long lifetime, as well as exploring 30 international students. This year,
raised new capital to get us through new models for lifetime prolonga- we also continued to leverage our
the COVID-19 crisis. tion and use of recycled content in unique capabilities within sound to
our products. help improve the quality of life for
Despite our financial challenges, people. In October, we announced
we have made good progress on Last year, we took several initi- that we, together with key partners,
our corporate social responsiblity atives to improve our employee had received DKK 40 million from
(CSR) and sustainability efforts engagement score. We believe that Innovation Fund Denmark for a
this year as we continue to exe- engaged and motivated employees new sound and health project. The
cute on our three-year strategy. are a key enabler for commercial purpose of the project is to develop
At Bang & Olufsen, CSR and sus- success, and we are pleased to an advanced sound system that
tainability forms an integral part of report that we saw an increase the can remove unwanted sound from
our business and we firmly believe engagement score. We will launch a homes and hospitals as this could
that companies acting responsibly new programme in the beginning of significantly improve life quality.
create more long-term value for 2020/21 with the aim to strengthen
society and stakeholders. The three- values, culture and engagement This report provides an overview of
year strategy that guides our efforts across the company. Improving the our CSR and sustainability achieve-
towards 2020/21 is focused on four gender balance is a key priority for ments in 2019/20 and targets for
key areas: Environmental & Climate us. However, we did not achieve next year. We did not achieve all our
Impact, Responsible Employer, Role our target of at least 25% female targets for 2019/20, but we have
in Society and Responsible Partner. senior managers this year, though seen solid progress in most areas
we did improve from 19% last year through focused efforts and target-
In 2019/20, we saw solid progress to 22% this year. We will continue ed initiatives.
in our work to minimise the climate our efforts to improve in this area –
and environmental impact of our and next year we will outline a new In 2020/21, we will continue to
company. We reduced the carbon long-term vision for diversity and execute on the strategy with an
footprint of our building portfolio inclusion. Despite our increased fo- enhanced focus on minimising the
and decreased the CO2 emissions cus on mental health during, we did environmental and climate impact
related to our own logistics system see a slight increase in the number of Bang & Olufsen. In addition, we
by moving more transportation of long-term illness cases caused by will during next year develop a new
from air to sea freight through a the psychological work environment. strategy for sustainability and soci-
structured approach. In addition, We will work to reverse that devel- etal impact to replace the current
we achieved an important mile- opment in the next financial year. framework that expires in 2020/21.
stone with the launch of our new
sustainable packaging strategy that We have an ambition to increase Kristian Teär
will minimise the climate impact our contribution to society based President & CEO
and increase resource efficiency. on our core capabilities of sound,
The new strategy has already been design and craftsmanship.
4 BANG & OLUFSEN
CSR & SUSTAINABILITY REPORT 2019/20
BUSINESS MODEL
The consumer is at the centre of everything – by constantly
improving the value delivered to consumers, Bang & Olufsen
strives to become the most desired audio brand in the world.
DUCT INNOVATIO
P RO N
D e si g n &
nolog y partners
hips
tech
tion based on
nova n, craftsm sou
In esig ans nd
d hip ,
p r operations
CONSUMERS
Marketin e, e
s si n g
Retail p rship
s er v
s
oce
rshi p
partn
g,
u m nt &
ic
sa o m
artn
ne
le
e
e
su
m
re
s
C
G
art
pp
cu i
ers coll
ni
RIN
o rt ro
um
gp
P
, lo a b
al
s/
rin
gi or
TU
RE
st
tu
ic a
TA
AC
b
ac
s,
tio ra
uf
ns nd an
IL
UF
M
N
A
M
Internal value streams
Partner-driven value streams
Bang & Olufsen’s operating model builds on partner asset-light operating model enables Bang & Olufsen to
collaboration in everything from design to production adapt to changes and the financial performance more
and distribution. Advanced innovative features in top- robust.
range products flow to the rest of the portfolio. The
BANG & OLUFSEN 5
CSR & SUSTAINABILITY REPORT 2019/20
RISK ASSESSMENT
IN BANG & OLUFSEN’S
VALUE CHAIN
Bang & Olufsen is committed to ensure that the
entire value chain is considered when evaluating the
range of potential risks related to the company’s
operations.
Risks are taken into account on stakeholders. A core team con-
a daily basis and by doing so, stantly evaluates risk in the value
Bang & Olufsen is able to address chain to determine the potential
societal and environmental as- impact, evaluate threats and work-
pects of business operations and ing proactively to mitigate them.
bring value to all the company’s
ASSOCIATED RISK FOR SPECIFIC STAKEHOLDERS AND AREAS
BANG & SUPPLIERS
OLUFSEN MATERIALS (PRODUCTION) TRANSPORT RETAILERS CONSUMERS DISPOSAL
• Human rights • E xtraction of • Human rights • CO2 emissions • Human rights ustomer
• C ecyclable
• R
virgin materials health and waste
• Labor rights • Labor rights • Traffic safety nti-
• A
safety
• Climate Corruption eneral
• G
• Diversity • Anti- nti-
• A
effect from roduct
• P waste
Corruption Corruption • Compliance
nergy
• E packaging compliance
consumption and products • Energy • Human rights
• GDPR
Consumption
• Water use • Human rights
• Water use
• Pollution • Labor rights
• CO2 emissions
• Waste • Anti-
Corruption • Waste
• CO2 emissions
• Dangerous
ork environ-
• W
substances
ment and
mental health
• Work safety
6 BANG & OLUFSEN
CSR & SUSTAINABILITY REPORT 2019/20
CSR STRATEGY
In 2017/18, Bang & Olufsen launched a revised reduce the CO2 emissions of its
three-year CSR strategy. The strategy reflects the operations by managing its energy
consumption and environmental
company’s ambition to increase the positive impact impact in accordance with the ISO
and minimise the negative impact Bang & Olufsen 14001 standard.
has on the environment, climate and society.
Responsible Employer
Bang & Olufsen wants to be rec-
The strategy consists of four focus Environmental & Climate ognised as a people-oriented and
areas; Environmental & Climate Im- responsible company. This involves
Impact
pact, Responsible Employer, Role a strong focus on empowering the
in Society and Responsible Partner. Bang & Olufsen is committed to company’s employees and helping
minimising the adverse impact on them develop their competencies
The strategy was developed on the the environment and climate from as well as promoting the health and
basis of input from both internal the company’s own operations well-being of people working at
and external stakeholders (e.g. and its supply chain as well as to Bang & Olufsen and ensuring a di-
consumers) and on an assessment continuously reducing the environ- verse and inclusive working culture.
of the societal, climate and envi- mental footprint of the company’s
ronmental impact of the company products over their entire lifecycle. Ensuring that employees have the
and existing efforts. The CSR strat- proper knowledge to perform their
egy provides a coherent framework Resource efficiency, serviceability work in a safe manner also remains
for Bang & Olufsen, building on and high-quality standards have a priority. Bang & Olufsen respects
the company’s core values and been an integral part of the compa- employees’ right to freedom of
brand and guided by the 17 United ny’s daily operations for years, and association and collective bargain-
Nations Sustainable Development Bang & Olufsen has been widely ing and the right to raise concerns
Goals (SDGs). Bang & Olufsen is recognised from a functional, aes- without fear of retaliation.
committed to the UN Global Com- thetical and technological perspec-
pact principles, the ILO declaration tive for the design and long-lasting
on human rights, labour rights, characteristics of its products.
Role in society
environment and anti-corruption. However, it is the company’s ambi- Bang & Olufsen operates in a re-
Bang & Olufsen contributes to a tion to push the boundaries even sponsible and transparent manner
number of SDGs, and the company further by creating more sustaina- and is committed to creating value
has chosen to enhance its focus on ble products while also improving to all the company’s stakeholders.
two specific SDGs, namely “Good the user experience. The company will continue to share
Health & Well-Being” and “Quality knowledge and making the compa-
Education” (goals nos. 3 and 4) This will include exploring the use ny’s expertise available to society
in relation to the “Role in Society” of more recycled materials, better and stakeholders, while continuing
focus area. sourcing, better packaging and to support community initiatives in
the introduction of more circular the societies in which the company
principles in the design of products. operates.
Bang & Olufsen will also work to
BANG & OLUFSEN 7
CSR & SUSTAINABILITY REPORT 2019/20
Towards 2020/21, the company will craftsmanship and design, which the company will continue to en-
work to enhance two particular are related to the company’s core gage constructively with its supply
areas: capabilities. Bang & Olufsen aims chain based on a view to driving
to do that by sharing expertise, continuous improvements and
• Sound & Health: Bang & Olufsen making the company’s resources based on the assumption that sup-
aims to use its core capabilities available and working with rele- pliers share Bang & Olufsen’s com-
within sound to help improve the vant institutions and partners mitments to international principles
quality of life for people by con- for human rights, labour rights, the
tributing to research and helping environment and anti-corruption.
Responsible Partner
to create awareness of the pos- Bang & Olufsen will also work with
itive effect sound can have on Responsible supply chain relation- retail partners to ensure that they
people’s health and well-being. ships are becoming an increasingly live up to the company’s ethical
• Future Innovators: Help nurture important aspect because Bang & and social standards and expecta-
and inspire the next generation Olufsen’s business model is chang- tions from all stakeholders.
to develop skillsets within areas ing towards becoming more of a
such as technology, engineering partner-based approach. Therefore,
CSR FRAMEWORK
ENVIRONMENTAL RESPONSIBLE ROLE RESPONSIBLE
& CLIMATE IMPACT EMPLOYER IN SOCIETY PARTNER
Resource efficient Work life Future innovators Supply chain
operations No serious injuries and high Inspire and educate the next Engage with suppliers
commitments
Work towards climate employee engagement generation to support the to raise responsibility
neutral operations innovators of tomorrow standards
Our
Sustainable products Diverse culture Sound & Health Retailers
Minimise the environmental At least 25% female leaders Engage with partners to Engage with retail partners
& climate impact of our by 2020/21 improve people’s health to ensure a strong
products through sound compliance culture
foundation
CORE VALUES
Our
8 BANG & OLUFSEN
CSR & SUSTAINABILITY REPORT 2019/20
UNITED NATIONS
SUSTAINABLE
DEVELOPMENT GOALS
Bang & Olufsen supports the United Nations Sustainable
Development Goals (SDGs), and is committed to
driving progress on selected goals that are closely
aligned with the company’s CSR strategy. All the United
Nations Sustainable Development Goals (SDGs) are
important. Bang & Olufsen has chosen to enhance three
specific SDGs, namely “Responsible Consumption &
Production”, “Good Health & Well-Being” and “Quality
Education” (goals 12, 3 and 4)
BANG & OLUFSEN 9
CSR & SUSTAINABILITY REPORT 2019/20
ENVIRONMENTAL RESPONSIBLE ROLE RESPONSIBLE
& CLIMATE IMPACT EMPLOYER IN SOCIETY PARTNER
Bang & Olufsen is Bang & Olufsen is com- Based on its core capa- Bang & Olufsen works
working to reduce CO2 mitted to improving bilities Bang & Olufsen to ensure responsible
emissions across its oper- gender equality. The is committed to helping supplier and retail rela-
ations. This work includes company has launched promote technology, en- tionships by integrating
investments in energy several new initiatives and gineering craftsmanship the company’s environ-
efficiency initiatives and over the past three years and design competencies mental, social and ethical
moving towards less the company have seen to young people through standards and by consist-
intensive energy sources positive developments in various programmes and ently focusing on impact
with the long-term ob- the proportion of women initiatives. and risk.
jective of climate neutral in senior management.
operations.
Bang & Olufsen aims to
Bang & Olufsen strongly use the company’s core
Bang & Olufsen has in- believes that all em- capabilities within sound
creased its focus on how ployees deserve fair to help improve the qual-
the company manufac- treatment, safe working ity of life for people by
tures, designs, creates conditions, and freely contributing to research
and delivers products to chosen employment. The and helping to create
help drive progress to- company has banned any awareness of the positive
wards a more circular and forced, bonded, or inden- effect sound can have
low-carbon economy. tured labour, involuntary on people’s health and
prison labour, slavery, well-being.
or trafficking of persons
within the company’s
supply chain.
Bang & Olufsen works
to uphold fundamental
rights and freedoms of
all people. The company
promotes a diverse and
inclusive culture and will
not tolerate discrimina-
tion of any kind.
10 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
RESULTS:
ENVIRONMENTAL &
CLIMATE IMPACT
Bang & Olufsen continuously work logistics as they are all major con- Resource efficient
to reduce the energy use and envi- tributors to the company’s environ- operations
ronmental impacts associated with mental and climate impact. Long-
the company’s activities. Climate term, Bang & Olufsen is committed In 2019/20, Bang & Olufsen in-
change represents a major risk to working towards climate neutral vested in several new initiatives
also to society, and it is a growing operations. The company aims to to optimise and adapt the energy
concern among Bang & Olufsen’s reduce the CO2 emissions of its consumption in the company’s
most important stakeholders such operations by managing its energy building portfolio. A key initia-
as governments, employees, con- consumption and environmental tive was an investment in district
sumers, retailers etc. The company impact in accordance with the ISO heating to optimise and adapt the
strive to run a sustainable business 14001 standard. energy consumption in the com-
by reducing the energy consumed pany’s headquarters in Struer, This
in the building portfolio, produc- will reduce the CO2 emissions in
tion and creation processes and connection with the consumption
BANG & OLUFSEN 11CSR & SUSTAINABILITY REPORT 2019/20
of energy for the heat supply by reduce the company’s CO2 emis- company’s ambition to do even
800 tonne per year in the future, sions going forward. more within this area by structuring
which corresponds to a total annual and scaling its core capabilities of
reduction of 20%. Bang & Olufsen has rolled-out sev- sound, design and craftsmanship to
eral initiatives within planning and create more sustainable products.
The energy savings generated from logistics the past 6-7 months, send- A focus area for Bang & Olufsen
the various projects implemented ing more products by sea instead this year has been improving the
amounted to a reduction of 653 of air to reduce CO2 emissions. This product packaging design to
tonnes CO2, a reduction of 15% includes new launches Beosound reduce the environmental and cli-
compared to last year, and thus the Stage and Beosound Balance that mate impact and increase resource
company has achieved the target from the early planning phases efficiency, while still ensuring the
of at least 5% reduction of CO2 were scoped for sea shipment. company deliver the right consum-
emissions in the building portfolio. Combined these initiatives have er experience.
contributed to the company reach-
Last year, Bang & Olufsen initiated ing its target of a reduction of CO2 Based on a thorough analysis of
a thorough analysis to assess the emissions of own logistics system Bang & Olufsen’s packaging design
company’s CO2 footprint with sup- by 5-10%. In total, the decrease was system, the company has devel-
port from Technical University of around 35%. This was, however, oped a new sustainable packaging
Denmark (DTU). The work revealed significantly impacted by the lower strategy that takes into account
that 95% of the company’s total than expects sales. Per kilo, the CO2 the full product system from the
CO2 emissions from the transpor- emissions dropped 4.4% compared material extraction, manufacturing,
tation phase stems from airfreight, to last year. transportation, use and end of life.
mainly related to moving products The new strategy has three focus
between inventory locations. The areas:
study also identified tangible KPIs
Sustainable products
and actions that will enable the Bang & Olufsen has been widely 1.
Reduce and avoid: Only using the
company to closely monitor and recognised for creating long-last- relevant and necessary materials,
ing products. However, it is the in order to reduce the impact
from product packaging.
2.
Minimise the impact: Select
“A key focus area for materials with a lower CO2 impact
and with preference for materials
Bang & Olufsen this year has been from renewable sources, e.g.
choosing paper/cardboard over
improving the product packaging plastics and foam and increasing
design to reduce the environmental
focus on sourcing recycled
materials.
and climate impact and increase 3.
Close the loop: Make it easy and
resource effeciency” simple to dispose of and recycle
Bang & Olufsen packaging.
12 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
Bang & Olufsen aims to make
products with a long lifetime, as
well as exploring new models PACKAGING IMPROVEMENTS FOR BEOSOUND
for lifetime prolongation and use BALANCE AND BEOSOUND A1
of recycled content in products.
Lifetime prolongation is important Beosound Balance, launched in is with paper pulp trays to hold
as it reduces annual CO2 footprint spring 2020, is the first prod- the product and all the acces-
of products by circling longer and uct where the new sustaina- sories, replacing the EVA foam
reselling is substituting purchase ble packaging strategy was tray. Overall, the CO2 impact
of new virgin product and captures implemented. For Beosound is reduced by 6.4 % compared
more value of energy investments Balance paper pulp trays have to the previous packaging
already done. To explore this been introduced, a renewable solution*. The new packaging
further, the company has initiated a material that can easily be has been optimised in regard
project with University of Aalborg disposed of and recycled when to both weight and volume.
to explore the consumer user no longer needed. The prima- Lower weight demand less CO2
journey and a refurbished business ry packaging for Beosound emissions during transporta-
model. However, this is yet to yield Balance is made entirely out tion, while lower volume will
tangible results. of paper-based materials that increase the number of items
makes disposing of the box per transport unit. By using
Bang & Olufsen achieved its target and the inserts easy. mono-materials (paper based)
of implementing new guidelines for and easily separable parts, it
sustainable packaging, however the The new strategy has also been has also been made simpler for
company only partly accomplished implemented for Beosound A1 the consumer to recycle all of
the objective of exploring new 2nd Generation. The packaging the packaging materials.
models for life prolongation and
use of recycled content in products.
* this is a rough screening estimate done via MECO methodology.
BANG & OLUFSEN 13CSR & SUSTAINABILITY REPORT 2019/20
15%
CO2
ENERGY REDUCTION
Through energy efficiency
Investment in district heating in Struer
projects, B&O reduced its CO2
emission in its facilities by
653 ton.
Bang & Olufsen
has rolled-out
several initiatives
80%
within planning and
logistics the past
6-7 months, sending
OF ALL WASTE more products
RECYCLED by sea instead of
B&O recycled almost 80% of its air to reduce CO2
production waste, which mainly
emissions.
consists of aluminium waste.
AREA TARGET 2019/20 STATUS
• Reduce CO2 in buildings with at least 5% Accomplished (15%)
• Reduce CO2 emissions of own logistics sys- Accomplished (35%)
tem by 5-10%
ENVIRONMENTAL
& CLIMATE IMPACT • Implement new design guidelines for sustain- Accomplished
able packaging during 2019/2020
• tart to explore new models for lifetime
S Partly accomplished ( )
prolongation and use of recycled content in
products
14 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
RESULTS:
RESPONSIBLE EMPLOYER
Bang & Olufsen wants to be rec-
ognised as a people-oriented and
responsible company. This involves
a strong focus on empowering the
company’s employees and helping
them develop their competencies
as well as promoting the health and
well-being of people and ensuring
a diverse and inclusive working
culture
Work life
A target for Bang & Olufsen this
year was to improve the employee
engagement score from 70 to 72.
The target was achieved with an
index score of 72 in the Beovoice
survey* conducted in October and
November 2019 among all employ-
ees. On the back of the decline in
engagement score in 2018/19, sev-
eral initiatives were launched to ad-
dress the issues highlighted in the
survey, and the company is pleased
that the initiatives and actions have
Bang & Olufsen hosted internal events in connection with Copenhagen Pride Week in contributed to an improvement.
August to celebrate diversity and inclusion
The company’s Human Resources
function (HR) not only defines
“Bang & Olufsen believes that employee-related policies and
guidelines but also continuously
equality and diversity can addresses risks associated with
company’s workforce – both in
contribute to a healthier and more terms of retainment, talent de-
dynamic work environment, velopment and attraction of new
employees. Therefore, Bang &
where passionate employees can Olufsen also aims to continue to
work to improve the engagement
learn and grow, and be an among employees and based on
important enabler of success” the results from this year survey,
three main areas for improvement
has been identified – and these are
leadership communications and
* Beovoice survey is the company’s Employee Engagement Survey that is carried
out by external provider Ennova.
BANG & OLUFSEN 15CSR & SUSTAINABILITY REPORT 2019/20
transparency, work conditions and communication and training. Activ- sessions, knowledge sharing and
ways of working. The company has ities included introduction of learn- stress tests. In addition, the compa-
already launched a number of new ing modules with movies about first ny continued a pilot project initiat-
initiatives within these three areas aid, fire threats, accidents and near ed last year targeted managers and
to ensure that the progress made in miss as well as ergonomics and aimed at providing better support
2019/20 continues. waste management. The accident and tools for them to reduce stress
frequency fell from 3.0 last year and create better working condi-
In 2018/19, the company’s top 30 to 2.4 this year and none of the tions for colleagues.
leaders attended a new leadership incidents were serious and did not
training programme, “Leading for cause long-term absence. Despite the company’s increased
Results”, to ensure that leaders focus on mental health, there was
have the right tools and skillset to Increased focus on initiatives a slight increase in the number of
support the company’s transfor- related to mental health was a long-term illness cases caused by
mation journey. This year the pro- target this year and this has been the psychological work environ-
gramme was extended to include achieved, In May 2019, the compa- ment as the number of cases went
all leaders, and 88 of the 97 leaders ny launched Beominds – a com- from five in 2018/19 to seven in
(91%) at Bang & Olufsen at that pany-wide programme with focus 2019/20. This is not satisfactory,
time completed the training. on mental well-being activities and and Bang & Olufsen is committed
this programme has grown in scope to reverse that development and
A combination of an active work- this year. Among other, the compa- bring down the number of cases. It
ing-environment organisation ny launched its first Global Mental is the company’s assessment that
and good collaboration between Health Week for all employees. The the increase to some extent can
unions, employee representatives initiative was launched in connec- be attributed to the reorganisation
and management are key to ensure tion with World Mental Health Day and cost reduction programme,
a healthy and safe workplace – on 10 October 2019 and consisted that also included redundancies
both physically and mentally. This of a range of different activities, in- that was implemented during the
year, the company continued its cluding an internal awareness cam- financial year as a response to the
strong focus on safety procedures paign on the importance of mental company’s financial challenges.
in Factory 5 through increased health, mindfulness and yoga
16 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
Diverse culture diverse composition with a large The BoD believes that members
Bang & Olufsen believes that equa number of international profiles. should be chosen for their overall
lity and diversity can contribute to Today, a total of 42% of the compa- competences, and also recognises
a healthier and more dynamic work ny’s senior leaders have an interna- the benefits of a diverse Board
environment, where passionate em- tional background. in respect of experience, culture
ployees can learn and grow, and be and gender. In 2015, the BoD set
an important enabler of success. At The Board of Directors (BoD) a target for female representation
the end of 2018/19, the Board of Di- consists of 11 members elected according to which the company’s
rectors adopted a new People and at the General Meeting. At the goal is to have two female mem-
Diversity policy that defines diver- Annual General Meeting in august bers elected by the General Meet-
sity across age, gender, culture and 2019 three female members were ing by 2018. This target has now
competencies, and this year the elected, and there are currently five been achieved.
company’s target was to increase female members on the BoD. The
the focus on promoting diversity three new members all have inter-
and hiring a diverse workplace. national backgrounds.
This target was achieved through
a number of initiatives, including
equal recruitment processes driven
by HR, multiple cross-company
events celebrating diversity and
inclusion and a continuation of the
Google #IamRemarkable initiative –
a programme that empowers wom-
en and underrepresented groups to
celebrate their achievements in the
workplace.
Improving the gender balance
continues to be a focus area for
Bang & Olufsen, and this year the
goal was to ensure that the share
of women in senior management
positions was at least 25%. This tar-
get was not achieved as the share
of women only increased from 19%
in 2018/19 to 22% in 2019/20. The
company will increase its focus on
gender diversity to ensure that this
target is achieved next year. The
company’s new Group Leadership
Team established in March also
includes five female members out
of 14 in the team. In addition, the
senior management team has a
BANG & OLUFSEN 17CSR & SUSTAINABILITY REPORT 2019/20
BEOMINDS
In May 2019, the company
launched Beominds – a company-
wide programme with focus
on mental well-being activities
and this programme has grown
in scope this year.
DIVERSE CULTURE
42% of the company’s senior
management leaders have an
international background.
AREA TARGET 2019/20 STATUS
• Increase focus on initiatives related to mental Accomplished
health
• Continue focus on promoting diversity and Accomplished
hiring a diverse workplace
RESPONSIBLE
EMPLOYER • Improve share of women in senior manage- Not accomplished
ment to at least 25% (director+) (22%)
• Improve employee engagement score from Accomplished (72)
70 to 72
18 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
RESULTS:
ROLE IN SOCIETY
students from around the world campaign called ‘Girls’ Day in Sci-
Future Innovators
to be part of a three-week-experi- ence’ that aims to create awareness
Supporting global talents is a key ence of innovation processes and about the lack of girls in science
part of Bang & Olufsen’s DNA, and problem solving. The students were fields and kindle their interest. This
this year the target was to run at tasked to create an audio product year around 40 secondary school
least five initiatives to help and for urban Chinese consumers on girls visited Bang & Olufsen’s head-
promote STEM competencies for the move. The ‘B&O Innovation quarters in Struer to experience
young people. This was achieved Camp’ was made in collabora- how science plays a crucial role for
through several new and recurrent tion with a number of European the development of products and
initiatives. and Asian universities. Together meet with some of the company’s
with external professors from the female employees, who shared
One of the company’s recurrent attending universities, Bang & their personal stories and gave
programmes to support young tal- Olufsen designers and engineers them an introduction to some of
ents is the ‘B&O Innovation Camp’ challenged and provided guidance the career paths in the company.
that took place for the 11th time to the students during the camp.
in July 2019. This year, the camp In 2018, Bang & Olufsen partnered
was in Shanghai, China and Bang In recent years, Bang & Olufsen has with Harman Lifestyle, Aalborg
& Olufsen had invited 30 talented been part of a Danish nationwide University, Danish Sound Network
40 secondary school girls visited Bang & Olufsen as part of the Girls’ day in Science campaign in Denmark.
BANG & OLUFSEN 19CSR & SUSTAINABILITY REPORT 2019/20
Bang & Olufsen sponsors ’Run To The Beat’ – an annual running event and concert in Struer with more than
4000 participants.
and Struer Municipality to create
the world’s first international sound “Bang & Olufsen will continue
technology innovation environ-
ment, Sound Hub Denmark. The
to support Sound Hub Denmark
hub is business acceleration in a and aims to extend the company’s
sound professional co-working
environment that gives small partnership and mentor
businesses and startups access to
sound, craft, and test facilities as
startups in areas such a consumer
well as highly specialised skills from experience, product development
industry leaders and institutions.
and marketing.”
Bang & Olufsen is committed to
help nurture and support these
startups and participants in ac-
celerator programmes through company did not reach its target In 2019/20, Bang & Olufsen also
extensive knowledge sharing based of 15. Bang & Olufsen will continue continued to engage in community
on the company’s core capabilities to support Sound Hub Denmark activities in Struer. As a partner in
within sound. Since the beginning and aims to extend the company’s the international sound art festival,
more 30 startups have used the fa- partnership and mentor startups Struer Tracks, the company helped
cilities of Sound Hub Denmark. This in areas such a consumer experi- created the sound art pieces ‘The
year Bang & Olufsen supported ence, product development and Receiver’ and ‘Amplied Views’ that
12 startups, which meant that the marketing. were covered in both Danish and
20 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
international media. Bang & Olufsen the target for the year. In addition, sound impression management in
also sponsored ‘Run To The Beat’ the company entered into new re- these areas might help improve life
– an annual running event and con- search projects during the year. quality. Bang & Olufsen will contin-
cert in Struer with more than 4000 ue to pursue opportunities to take
participants. A key project this year was ISO- part in relevant research projects
BEL (Interactive Sound for Better that can benefit from the com-
Living) where Bang & Olufsen pany’s capabilities within sound
Sound & health partnered with Soundfocus, Wave- and share findings with relevant
Bang & Olufsen wants to use the care and Aalborg University on a stakeholders.
company’s core capabilities within DKK 40 million project funded by
sound to help improve the quality Innovation Fund Denmark. Current Bang & Olufsen did not reach its
of life for people by contributing research studies have shown that target to partner with a global or-
to research and helping to create unwanted sound have significant ganisation to raise awareness of the
awareness of the positive effect health consequences and the pur- positive impact of music on mental
sound can have in health-related pose of this project is to develop health. This was due a repriorisa-
areas. During 2019/20, Bang & an entirely new type of advanced tion of organisational focus and
Olufsen continued the work within sound system that can remove funding due to the company’s fi-
the existing two research projects unwanted sound. The project is nancial challenges. This project has
that the company initiated last year, focused on developing systems for now been postponed until further
and thus the company achieved people’s homes and in hospitals as notice.
’Run To The Beat’ in Struer, August 2019.
BANG & OLUFSEN 21CSR & SUSTAINABILITY REPORT 2019/20
FUTURE INNOVATORS
B&O has a long history of
working with institutions
and partners to help nurture
and develop young people
interest in Science, Technology,
Engineering and Mathematic
(STEM). In 2019/20, B&O actively
supported six initiatives
to support STEM.
SOUND & HEALTH 12 STARTUPS
Bang & Olufsen partnered with Soundfocus, Through its partnership
Wavecare and Aalborg University on a with Sound Hub Denmark,
DKK 40 million project funded by Innovation B&O supported 12 startups
Fund Denmark. The project is focused within technology and
on developing systems for people’s homes sound.
and in hospitals to reduce unwanted sound
which might help improve life quality.
AREA TARGET 2019/20 STATUS
• Support at least 15 startups Not accomplished (12)
• Run at least 5 initiatives to help and promote Accomplished (6)
STEM competencies for young people
ROLE IN
SOCIETY • Continue work with 2 key research projects Accomplished
within sound and health
• Partner with global organization to raise Not accomplished
awareness of the positive impact of music
22 BANG & OLUFSENCSR & SUSTAINABILITY REPORT 2019/20
RESULTS:
RESPONSIBLE PARTNER
Bang & Olufsen continued to en- a new Anti-Corruption Policy, Team the company has seen a pos-
gage with suppliers to raise respon- Stakeholder, CSR and Sustainability itive development in compliance
sibility standards and no critical Policy, People and Diversity Policy rate within procurement processes
issues have been reported by sup- and Business Conduct and Ethics – going from a compliance rate
pliers during the past year. Policy. The Business Conduct and in September 2019 of 70% to a
Ethics Policy was launched through compliance rate of 89%. Thus, the
Bang & Olufsen achieved its target a global awareness campaign with company achieved its target of
of strengthening the internal com- focus on a new internal governance strengthening training in and aware-
pliance function by hiring a Global resource for policies and guidelines. ness of the procurement processes
Compliance Officer in newly estab- among employees. In addition, the
lished position. He is responsible Employees play a key role in iden- company ran an IT Security Aware-
for the implementation of new pro- tifying areas of improvement or ness Training Programme to ensure
gramme that reflects the company’s unacceptable workplace behaviour safer digital behaviour. 80% of the
values, integrity and commitment and an internal awareness campaign company’s employees completed
to compliance. In 2019/20, the pro- called BeoShare was launched to that.
gramme effectiveness was evaluat- support a workplace where all em-
ed and core elements strengthened, ployees feel welcome, included and The company achieved its goal of
such as risk assessment process, are free to express their views. continuing the roll-out of updated
corporate standards and internal contractual framework to retail
reporting processes. The company also launched an partners. The framework is key to
internal campaign ‘spend company ensure compliance with legal issues
The company achieved its target of money wisely’ to increase aware- and mitigate third-party risks. The
completing the revision of Business ness of the guidelines on purchasing roll-out has increased awareness of
Conduct & Ethics Policy and training of non-production related products and compliance with data privacy
of key stakeholders. In 2019/2020 and services. This also included standards to safeguard customers’
the Board of Directors approved a training for select employee groups. personal data and strengthened
revision of the global policies result- With the campaign and a strong compliance within anti-corruption
ing in five global policies including focus from the Group Leadership and sanctions control regimes.
AREA TARGET 2019/20 STATUS
• Strengthen training in and awareness of the Accomplished
procurement processes among employees
• Strengthen internal compliance function Accomplished
RESPONSIBLE
PARTNER • Complete revision of Business Conduct & Ethics Accomplished
Policy and complete training of key stakeholders
• Continue roll-out of updated contractual Accomplished
framework to retail partners
BANG & OLUFSEN 23CSR & SUSTAINABILITY REPORT 2019/20
OVERVIEW OF
RESULTS 2019/20
AREA TARGETS 2019/20 STATUS
• Reduce CO2 in buildings with at least 5% Accomplished (15%)
• Reduce CO2 emissions of own logistics system by Accomplished (35%)
5-10%
ENVIRONMENTAL
& CLIMATE IMPACT • Implement new design guidelines for sustainable Accomplished
packaging during 2019/2020
• tart to explore new models for lifetime prolon-
S Partly accomplished ( )
gation and use of recycled content in products
• Increase focus on initiatives related to mental health Accomplished
• Continue focus on promoting diversity and hiring a Accomplished
diverse workforce
RESPONSIBLE
EMPLOYER • Improve share of women in senior management to Not accomplished (22%)
at least 25% (director+)
• Improve employee engagement score from 70 to 72 Accomplished (72)
• Support at least 15 startups Not accomplished (12)
• Run at least 5 initiatives to help and promote STEM Accomplished (6)
competencies for young people
ROLE IN
SOCIETY • Continue work with 2 key research projects within Accomplished
sound and health
• Partner with global organization to raise awareness of Not accomplished
the positive impact of music
• Strengthen training in and awareness of the procure- Accomplished
ment processes among employees
• Strengthen internal compliance function Accomplished
RESPONSIBLE
PARTNER • Complete revision of Business Conduct & Ethics Policy Accomplished
and complete training of key stakeholders
• Continue roll-out of updated contractual framework Accomplished
to retail partners
24CSR & SUSTAINABILITY REPORT 2019/20
TARGETS FOR 2020/21
FOCUS AREA OUTLOOK AND KEY TARGETS 2020/2021
• Reduce CO2 in buildings with at least 5%
• Implement sustainable packaging strategy for upcoming products in the
ENVIRONMENTAL On-the-go and Flexible Living category
& CLIMATE IMPACT
• Reduce CO2 emissions of own logistics system by 5-10%pr. kilo
• Introduction of formalised circular product design program
• Improve Employee Engagement score from 72 to at least 74
RESPONSIBLE
EMPLOYER • Improve share of women in senior management to at least 25% (director+)
• Support at least 10 startups through collaboration with Sound Hub Denmark
• Run at least 5 initiatives to help and promote STEM
ROLE IN SOCIETY competencies for young people
• Continue work with key research projects within sound and
health and share knowledge with key stakeholders
• Strengthen training in the procurement processes in the organisation
• Launch internal compliance training program
RESPONSIBLE
PARTNER • Establish global compliance committee
• Improved due diligence onboarding process for high risk commercial
partners
BANG & OLUFSEN 25CSR & SUSTAINABILITY REPORT 2019/20
CSR GOVERNANCE
Bang & Olufsen has established The Group Communications & CSR CSR agenda. This includes the re-
a strong governance structure to team will function as the CSR Com- sponsibility for developing, imple-
support the implementation of mittee’s secretariat. They will be menting and communicating about
the updated strategy and ensure responsible for driving the overall CSR, including on new initiatives.
that Bang & Olufsen achieves its
ambition.
BOARD OF DIRECTORS
CSR Committee
The CEO has appointed the mem-
Decisions
bers of the CSR Committee, which
GROUP LEADERSHIP TEAM
is responsible for overseeing the
implementation of the updated
CSR strategy, and setting the CSR COMMITTEE
strategic direction and coordi-
nating the various CSR initiatives.
The committee reports to Bang &
Olufsen’s Group Leadership Team
Implementation
(GLT) and is chaired by the Head of
Group Communications & CSR.
BUSINESS OPERATIONS
Contact:
Head of Group Communications & CSR Jens Gamborg, jgam@bang-olufsen.dk
26 BANG & OLUFSENBang & Olufsen A/S Tel. +45 9684 1122 Bang og Olufsen Allé 1 corporate.bang-olufsen.com/en/csr DK-7600 Struer Registration no: 41257911 Denmark
You can also read
