Moving forward on sustainability and business Dear reader, Designing beautiful carpets for a sustainable future is what we exist to do. Design leadership and progressive sustainable thinking within all parts of our business model are the pillars that our ambi- tious growth strategy is built upon. We believe that sustainability has vital strategic value. Today’s customers want products and services that align with their values. They want to support businesses that are doing good for people and the planet. Businesses that act responsibly on environmental, social and governance issues. When sustainability is anchored in our business strategy, we exceed customer expectations and deliver products of value. We build long-lasting relationships of trust and advance our position in our industry. But sustainability is more than a way for us to secure good customer relationships. It is also a way for us to future-proof our business. Risks related to resource scarcity, climate change and social inequality will have substantial impact on our operating model if we do not execute our due dili- gence and act accordingly. By carefully evaluating sustainability-related impacts on our business model, we also put ourselves in a position where we can seize the opportunities that arise. Naturally, there are expenses related to shifting a business towards a sustainable future, but we believe the returns outweigh the costs. By investing in sustainable initiatives, we achieve efficiency, we save energy, and we reduce waste - and thus save valuable resources. We increase employee engagement by providing meaningfulness to the day-to-day work. All these parameters contribute to a robust business model that can withstand the uncertainties of today’s markets. In conclusion, sustainability is a fundamental tool to secure our business’ continued growth. This report will give you detailed insights into our strategic focus on sustainability and the initiatives that we have completed in this financial year. You can, among many other exciting initiatives, read about our new business unit “From waste to resource” where production waste is given a new life as an innovative product with multiple applications for the interior industry, and read about our progress on our large-scale electrification project on two of our manufacturing sites along with the GHG emissions reduction that the project brings with it. I hope you will enjoy reading the report. CEO Rune Stephansen 5
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