Progress report 2022

Adding value
to your brand

CEO Comment

“Despite the uncertainty that society in general has experienced, the year developed better than expected and outperformed the previous record year in both sales and profit”

Highlights this year include–continuing to build and strengthen our CSR team, adding a new sourcing organisation, increasing our compliance competence, starting a new Material Team, developing digital products, and continuing to build our IT systems. All these areas are intrinsically linked and together help put Nilörn on the right path to reaching our sustainability targets and reducing any negative impact on people and the planet.

Krister Magnusson, CEO

2021 in brief

Higg & Sedex

 

In 2021 we continued to include more external production units in the Higg Facility Environmental Module. We prepared for external verification of our self-assessment in Nilörn Bangladesh, East Asia and Turkey. We implemented the Higg Facility Social & Labour Module in Nilörn Hong Kong, Bangladesh and Turkey to measure wages, working hours, health and safety and employee treatment.

We engaged more of our external supply chain in Sedex, and over 87% of our supply from risk-classified countries is third-party audited.

ENVIRONMENTAL CERTIFICATE

SVENSK MILJÖBAS

In 2021, Nilörn Sweden was certified according to the Svensk Miljöbas (Swedish Environmental Base). The association promotes sustainable development and reduced environmental impact, and its environmental management system is tailored to smaller organisations. The standard is based on ISO 14001 but with simplified documentation requirements. It focuses on environmental improvements and open reporting.

Employees satisfaction

 

Employees are the heart of Nilörn and it is important that everyone is satisfied so they can do a great job. Every six months, we invite our employees to respond to an anonymous survey, which provides insights into areas for improvement. The results are monitored closely and measured through NPS (Net Promoter Score). Together with the whistleblowing function, the survey enables all employees to have their say, adding to an open, friendly and supportive workplace.

Sales 2021 in SEK

Operating profit 2021*

Operating margin 2021*

*Excluding items affecting comparability

Numbers

Nilörn has grown yearly by 10% in average and having an operating average margin of 11.1%

Sales

Operating profit

We are global

13

Offices

6

Offices/
Manufacturing bases

5

Sales representation

Employees

Gender split

%

%

Sustainability

Strategy

Nilörn sustainability strategy More Fit for the Future is based on the company’s mission “Adding value to your brand” together with the global Sustainable Development Goals (SDGs) and a materiality analysis done in 2019. The strategy is built around three pillars: clients, production and supply chains, and employees.

We are committed to minimising the way our business could, in any way, slow the transition towards the future envisioned by the 17 SDGs. We have conducted an internal analysis to identify the SDGs to which we can contribute most. While all SDGs are key to achieving a more sustainable society, we recognize Nilörn’s contribution to the 2030 Agenda is most significant to the following six goals.

Sustainability

Towards a sustainable value chain

We integrate a sustainability perspective in every part of our value chain, whether directly or by influencing our partners and spreading best practice.

Going Digital

“Enhancing a circular solution within the fashion industry requires products that are connected”

This area is continuously growing of both interest and importance. Enhancing a circular solution within the fashion industry requires products that are “connected”. This means every garment having a unique identity that is possible to track and trace. This also gives the opportunity for consumer engagement using unique QR-codes or NFC-technology. Using a scalable solution our clients can start small and grow from there with functionality and possibilities added over time.

Vision

To be the best label and branding company in the world

Nilörn has had good development over the last 10 years and is now focusing its efforts to take the company to the next level. This means creating even more structure when it comes to sourcing, CSR, IT-support systems and sales. The goal is to achieve good synergy, through being an international group and, at the same time, being flexible and close to our clients. The best of both worlds.