The UN’s sustainable development goals Eight years have passed since the UN launched the 17 Sustain- able Development Goals (SDGs). Since 2015, the SDGs have served as a guideline for how states, companies and people can contribute to curbing the negative development that includes climate change, excessive consumption, pollution, poverty and inequality in the world. At Ege Carpets, we have incorporated the SDGs directly into our Sustainability Strategy. Our primary focus is the SDGs to which we can contribute as much as possible. These are goals that can be linked directly to our strategy and core activity: the manufac- ture and sale of carpets. We have previously focused on SDGs 7, 12 and 14. Our commit- ment to Science Based Targets last year made it relevant to also include SDG 13. As we realise our Sustainability Strategy towards 2030, new themes are emerging, while others are receding into the background. For many years, SDG 14, Life Below Water, has driven our work to use more recycled materials, since plastic waste is a major contributor to marine pollution. In recent years, our work with our raw materials has looked beyond plastic waste and considered additional forms of recycling. We are therefore now transferring our ambitions for recycling of waste plastic as a raw material in our carpets to SDG 12, Responsible Consumption and Production. We are also introducing SDG 17, which reflects the importance of partnerships for achieving our long-term goals. Sustainable Development Goal 12: Responsible Consumption and Production One way to ensure efficient use of natural resources is by re- using the materials we have already extracted from nature. For example, by converting used plastic bottles into felt backings for our carpets. Or by using yarns made from regenerated nylon from used carpets, old fishing nets and other industrial nylon waste. Or by reusing the adhesive from old car windows to re- place latex in our tile backings. The common denominator is that we view waste as valuable resources that can take the place of virgin materials. We are dedicated to the concept of circular economy. We have most focus on this in Herning North and Gram, where the most energy- and resource-intensive processes take place, but there are also initiatives at all production units in the group. Our long-term ambition is to produce the world’s most sustainable carpets, among other things by generating less waste and in- creasing recycling, while protecting water resources during pro- duction, investing in renewable energy, and ensuring that the company takes social responsibility. Sustainable Development Goal 13: Climate Action and Sustainable Development Goal 7: Affordable and Clean Energy SDGs 13 and 7 both concern the climate. We believe that we contribute directly or indirectly at a high level to the underlying targets described above, although by their nature the targets are directed more towards the national level. For many years, we have invested in renewable energy to cover our electricity con- sumption. Every year, we buy climate credits, in the form of GO certificates from offshore wind turbines, equivalent to our actual electricity consumption during the year. All of our production units are included in the agreement, to ensure that 100% of elec- tricity consumption is covered by the investments. We thereby contribute to the goal of achieving sustainable energy, which in the long term will hopefully help to lower prices and increase global availability. With our commitment to Science Based Targets, we are also taking the work on climate action to a new level. We will realign production processes so as to significantly reduce carbon emis- sions, just as we will replace raw materials and ensure greater recycling of waste, to reduce emissions. This will enhance our climate action and contribute to keeping global warming below 1.5°C in line with the Paris Agreement. While SDG 7 primarily relates to Scope 1 and 2 in the greenhouse gas accounts, SDG 13 concerns Scope 3 and reducing carbon emissions in the value chain. Sustainable Development Goal 17: Partnerships for the Goals We cannot solve the sustainability challenges we face alone. Partnerships within our own industry and across other industries are required if we are to succeed in making the world’s most sus- tainable carpets. Our CircleBack system is a good example of this. We would never have succeeded if both we and Aquafil had not entered into the project with an open mind and a willingness to invest time and resources in developing the solution together. We expect partnerships to become an even more important strategic tool for us in the future and to take both our own and our partners’ performance to new heights. 17
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