We connect
a greener
world
Sustainability Report 2023
2
NKT Cables Group Sustainability Report 2023
Contents
01 Introduction
04 Key sustainability targets
05 Letter of commitment
07 Business model
08 Partnerships and commitments
02 Strategy and
Governance
10 Sustainability governance
11 Sustainability strategy
12 Materiality assessment
14 Program portfolio
03 Environment
17 Climate change
35
NKT has a strong
ambition of being a
responsible employer
04 Social
37 Own workforce
43 Human rights
45 Community engagement
46 Data privacy and data ethics
06 Data sheets
56
Introduction
57 Environment
62 Social
65 Governance
67 EU Taxonomy
07 Appendix
75 GRI content index
77
Independent assurance statement
on selected ESG data
81 ESG ratings 2023
27 Resource use and circular economy
34 Biodiversity and ecosystems
05 Governance
49 Business conduct
Cover photo: Wooden power cable drums located at the NKT factory in Warszowice, Poland.
This report describes the progress of NKT Cables
Group A/S made on compliance with the principles
of the UN Global Compact. NKT Cables Group A/S
is part of NKT A/S.
NKT Group annual reports 2023
Annual Report
Remuneration Report
Corporate Governance Report
3
NKT Cables Group Sustainability Report 2023
0104 Key sustainability targets
Introduction
05 Letter of commitment
07 Business model
08 Partnerships and commitments
4
NKT Cables Group Sustainability Report 2023
01 Introduction
Key sustainability targets
Environment
Total scope 1 & scope 2 emissions
Metric tonnes CO2e
Scope 3 emissions* (Cat. 1 & 11)
Kilotonnes CO2e
Recycling rate
Percentage share of total waste diverted
to reuse, recycling and composting
Scope 1
Scope 2
-24%
10,101
7,716
Purchased
Goods & Services
Use Phase
+4.5%
>90.0
82.2
78.0
82.6
6,039
6,399
-27.5%
2019
2021
2022
2023
2030
Target
2021
2022
2023
2028
Target
* The increase in scope 3 emissions (in comparison to the baseline year)
is reflective of NKT’s general business growth
63,868
+7%
15,550
13,578
14,494
2019
2021
2022
2023
Social
Diversity and inclusion score
-90%
2030
Target
+4.1%
72
73
76
65
59
>74
Total recordable incident rate
Per 200,000 hours worked
+34.5%
1.52
1.20
1.19
1.13
<0.6
2019
2020
2021
2022
2023
2025
Target
2020
2021
2022
2023
2028
Target
5
NKT Cables Group Sustainability Report 2023
01 Introduction
Letter of commitment
Interconnected power
grids are essential to
the green transition
In 2023, the global transition to renewable energy continued to progress despite
geopolitical and macroeconomic challenges. The way forward is to continue to accelerate
investments in an interconnected power grid, to increase transmission security and
strengthen the grid infrastructure essential for high utilization of renewable energy.
The green transition has progressed globally in 2023, with a high
rate of deployment of renewable energy despite challenges in the
offshore wind industry and with several nations re-evaluating their
climate targets and agendas. Regardless of these challenges most
countries continued to persist in their commitments and have
invested heavily in offshore wind and interconnected power grids
to ensure stable and efficient transmission of renewable energy.
This is much needed. These challenges come at a time when the
1.5° trajectory of global warming recommended by the UN is under
pressure and with the effects of climate change becoming increas-
ingly evident with extreme temperatures, droughts and heavy
rainfalls across the globe.
The way forward is to recommit to and strengthen climate action
even further, accelerate and increase renewable energy generation,
and continue to invest in an interconnected power grid.
To continue progress in the transition to renewable energy, we
still need swifter and more agile processes in the permitting and
tendering phases of energy infrastructure projects. Furthermore,
an increased focus on sustainability in the value chain is central
to driving the decarbonization of the energy infrastructure. A key
element is to strengthen the significance of a low-carbon footprint
in tender criteria by ensuring at least a 30% weight on sustaina-
bility. This would enable the environmental impact from manufac-
turing, transportation, and installation of products and solutions to
be more carefully considered.
Towards a low-carbon future
In 2023, we continued to grow our business while executing our
sustainability strategy and strengthening the global power grids
essential to the transition to renewable energy. In close collabo-
ration with our partners, we have connected offshore wind farms
to shore, enabling renewable-generated electricity to flow across
borders and ensuring necessary upgrades and repairs of the
low-, medium-, and high-voltage power grids across Europe.
During 2023, we have completed several power cable projects
which are now enabling the flow of renewable energy to millions of
households. Furthermore, we have continued executing on several
high-profile power cable projects essential to the transition to
renewable energy in the coming years.
In September this year, we reached a significant milestone in our
journey towards net-zero emissions when the Science Based
Targets initiative approved our near-term decarbonization targets.
They include reducing scope 1 and 2 emissions by 90% until 2030
6
NKT Cables Group Sustainability Report 2023
01 Introduction
compared to 2019, continuing to operate with 100% renewable
electricity through 2030, and reducing absolute scope 3 emissions
from the use of sold products and purchased goods & services by
27.5% in 2030 from a 2019-baseline.
We are well on the way to reaching the targets for our scope 1
and 2 emissions, which have been reduced with 77% since 2019
and we continued to use renewable electricity for our operations.
While reducing scope 3 emissions in the two categories by 24%
compared to last year, they are still well above the baseline.
This development is as expected and should be seen within the
context of strong business growth in recent years. We maintain our
high ambitions for scope 3 and continue executing on the roadmap
aligned with reaching our target.
As a central player in the power sector, we are committed to
lead the way towards a more sustainable future by engaging in
dialogues with key stakeholders in the industry. At COP28 in
Dubai, we participated in discussions focusing on how to continue
the decarbonization of the power cable industry, and the impor-
tance of timely investments in upgrading the aging power grids
and enhancing interconnectivity globally. This will increase grid
flexibility, transmission security, and the utilization of the renewable
energy generated.
now being addressed through dedicated initiatives implemented
company-wide.
As a leading company in the power cable industry, a high-per-
forming, diverse, and inclusive organization is a key enabler for our
growth journey. This makes attracting, developing, and retaining
talents and employees a high priority for NKT. In 2023, we have
continued to strengthen our focus on ensuring an inclusive corpo-
rate culture based on diversity, collaboration, and our strong
purpose.
We remain committed to conducting our business in accordance
with the principles of the UN Global Compact and look forward
to continuing to support the necessary acceleration of the green
transition.
Our power cable systems are the backbone of the green transi-
tion. We connect wind farms, solar power and extend the existing
power distribution and transmission grid to ensure the flow of
renewable energy. Without a proper and interconnected infrastruc-
ture implemented, the green transition will stall.
Let us take immediate action, speed up processes, and continue
to connect a greener world.
Responsible partner and employer
Part of our sustainability journey is to continue our aspiration and
efforts to be a fair and responsible partner and employer.
Claes Westerlind
President and CEO, NKT A/S
Chair of the Board, NKT Cables Group A/S
Let us take
immediate
action, speed
up processes,
and continue
to connect a
greener world.
We have a strong focus on health and safety while safeguarding
human rights and work to empower people across the organi-
zation, the industry, and in local communities. In 2023, we have
seen an unsatisfactory development in safety incidents which is
Claes Westerlind
President & CEO
NKT A/S
7
NKT Cables Group Sustainability Report 2023
01 Introduction
Business model
Resources
Business
Value creation
People
NKT’s core consists of a diverse,
engaged and highly skilled workforce
Innovation
More than 130 years of pioneering the
power cable industry with innovative
technology for the future
Partners
NKT’s business is built on
long-standing relations and
strong partnerships
A greener world
Sustainability is at the heart of NKT with
a strong focus on connecting a greener
world and delivering net-zero emissions
by 2050
Societal value
NKT has a strong focus on ensuring equal
opportunities in the organization, actively
engaging in local communities and oper-
ating according to high safety standards
Customer value
NKT supports its customers with exten-
sive experience, high quality solutions and
services and strong project execution
Shareholder value
NKT is creating shareholder
value through business
performance
Solutions
Specialized in high-voltage power cable solutions
for on- and offshore installation
Applications
Markets building wires, low- and medium-voltage
power cable solutions
Service & Accessories
On- and offshore power cable services and a full portfolio of
accessories for medium- and high-voltage power cable systems
Business lines
8
NKT Cables Group Sustainability Report 2023
01 Introduction
Partnerships and commitments
Climate commitments
Broader sustainability
In 2023, the Science Based
Targets initiative approved the
near-term decarbonization targets
set by NKT marking an important
step in the journey to net-zero
emissions.
As a member, NKT has committed
to taking corporate action to halve
global emissions by 2030 in line
with a 1.5°C pathway.
Under the UN Global Compact,
NKT has committed to actively
work towards conducting
operations within the 1.5°C
trajectory by setting science-
based targets.
NKT is a member of the UNFCCC
Race to Zero global campaign
rallying to take rigorous and
immediate action to halve global
emissions by 2030.
NKT has been a member of the
UN Global Compact since 2009
and actively supports and acts
on principles to drive sustainable
changes.
NKT is an active member of
Europacable, supporting the
focus on promoting sustainable
and fair conditions in the wire and
power cable industry.
Diversity and inclusion
Stakeholder interaction
To continue to promote
diversity and inclusion
across the company, NKT
has pledged to abide the
UN Women’s Empowerment
Principles and has a
corporate target of no less
than 30% women in senior
leadership positions in 2025.
As a member of the Above
and Beyond Diversity
Council, NKT is actively
taking part in addressing
the barriers obstructing
the advancement of
more women into top
management.
NKT supports the
Tekniksprånget internship
program to promote
careers in engineering
for female students in
Sweden.
NKT is a signatory to the
Confederation of Danish
Industry’s Gender Diversity
Pledge to actively promote
gender diversity across the
organization.
NKT supports the work
of Femtec.Alumnae in
actively promoting and
strengthening female
career opportunities in
science and technology
in Germany
NKT is a founding member of the
Powering Net Zero Pact where
companies from the energy
sector have committed to a series
of social, environmental, and
corporate commitments.
NKT is a partner in The Copper
Mark, providing an assurance
framework promoting responsible
practices across the value chains
of copper, molybdenum, nickel
and zinc.
9
NKT Cables Group Sustainability Report 2023
02 Strategy and
10 Sustainability governance
11 Sustainability strategy
12 Materiality assessment
14 Program portfolio
Governance
10
NKT Cables Group Sustainability Report 2023
02 Strategy and Governance
Sustainability governance
Sustainability is integrated in NKT’s
operations with a clear governance
structure that ensures continuous
progress towards achieving the
company’s sustainability ambitions.
Formulator
■ The CEO is accountable for the sustainability
strategy and Sustainability Report and oversees
performance and progress on sustainability initiatives
■ Sustainability is an integral part of CEO
responsibilities and is also addressed at formalized
meetings at least once per quarter
Board of Directors
Audit committee
Remuneration committee
ESG committee
Other committees
CEO
Group Leadership Team (GLT)
Sustainability Steering Group
Group Sustainability / Group Finance
Driver
■ Councils and functions ensure sustainability trends
are captured, planned and prioritized. They provide
guidance to the Sustainability Council and ensure
actions from the Sustainability Steering Group and
the Sustainability Council are addressed
■ Councils have monthly meetings or as needed
Compliance Board
HSE Council
Sustainability Council
Group HR
Group HSE
Environmental Council
Business work streams - organised according to sustainability priorities
Approver
■ The Board of Directors approves the sustainability
strategy and the sustainability report annually
■ Sustainability is part of the agenda quarterly
■ The ESG Committee is a Board of Directors’
committee charged solely with preparing resolutions
to be taken by the Board of Directors in fulfilling the
responsibility for oversight of relevant ESG policies,
strategies and programs of the company
■ The Audit Committee (AC) oversees the integrity,
processes, controls, and disclosures of NKT
sustainability reporting.
Proposer
■ The Global Leadership Team (GLT) and the
Sustainability Steering Group implement the
sustainability strategy
■ Sustainability is embedded in all areas of the
business and addressed at formal meetings at least
once per quarter
Owner
■ Group Sustainability is the overall owner of
sustainability and advisor to the corporate ESG
program
■ Group Finance is the overall owner of sustainability
data and controls
Implementer
■ Ensures that processes, controls, and governance
are implemented in the organization, captures ideas
and collects performance data. Meetings as needed
11
NKT Cables Group Sustainability Report 2023
02 Strategy and Governance
Sustainability
strategy
NKT believes that sustainability is not just a
responsibility, but a strategic imperative.
The corporate strategy, "ReNew BOOST", reflects this belief by
incorporating sustainability in all three pillars of the strategy and by
designating the third and crucial pillar as "Let's drive sustainability".
NKT is a central player in the energy transition and recognizes the
pivotal role that power cable systems play as critical infrastruc-
ture towards a low carbon future. This position presents not only
commercial opportunities but also a responsibility to manage the
company’s sustainability impacts and risks effectively.
To drive sustainability, NKT works around three focal points: decar-
bonization and climate action, circularity, and ensuring a fair, inclu-
sive, and just transition to a low-carbon economy. This includes
considering the company's employees, the communities in which it
operates, and the corporate value chain.
NKT aims to drive sustainability while positioning the company to
seize the opportunities presented by the broader sustainability transi-
tion. Moreover, NKT aspires to be an active partner in this transition,
serving as a change agent for an accelerated shift. In essence, the
strategy is threefold: managing impacts and risks, seizing the oppor-
tunities that sustainability presents, and being a catalyst for change.
ReNew BOOST strategy
The third pillar of NKT's ReNew Boost strategy, "Let's Drive Sustainability" has three focal points
underpinned by responsible business practices. The focus areas are derived from NKT's material impacts,
risks, and opportunities and gives direction to the corporate actions for sustainability.
Let's Grow
Let's Innovate
Let's Drive Sustainability
Climate action
Be a leader in driving the
green transformation of the
power cable industry by
reducing corporate carbon
footprint and entering
partnerships that address and
resolve climate challenges.
Circularity
Create a sustainable value
proposition by ensuring
environmental stewardship
through the lifecycle of products
and solutions. Also, actively
pursue zero waste through
transformation of own waste into
other products.
Social
Be a fair, inclusive and safe
workplace empowering trust
and engagement within the
organization, the industry, and
in local communities.
Responsible business
NKT conducts business operations as a trusted partner and employer and sustainability risk
are integrated in business processes and the overall business.
12
NKT Cables Group Sustainability Report 2023
02 Strategy and Governance
Materiality
assessment
The materiality assessment identifies and
prioritizes sustainability topics. It provides
direction to NKT’s sustainability strategy
and ensures that the company addresses
the most material environmental, social, and
governance impacts as well as the associated
risks and opportunities for the company and
all stakeholders across the value chain.
In 2022, NKT updated its materiality assessment to simultane-
ously consider impact and financial materiality. Recognizing that
materiality assessment is a continuous process, NKT commits
to updating the corporate materiality assessment in line with the
Corporate Sustainability Reporting Directive (CSRD) to ensure NKT
identifies and addresses existing and emerging impacts, risks, and
opportunities. NKT furthermore commits to a CSRD compliant
reporting for 2024.
In the 2022 update of the corporate materiality assessment, the
material issues were finalized via a formal process, which included
an analysis of global sustainability challenges (incl. trends, reports,
guidelines), deep dives by topic segment, industry peer bench-
marking, and a comprehensive stakeholder engagement process.
Materiality assessment
High
)
e
r
o
c
s
e
v
i
t
a
l
e
r
(
y
t
i
l
a
i
r
e
t
a
m
l
a
i
c
n
a
n
F
i
Circular products and waste
Climate change
Business ethics and governance
Energy management
Talent attraction
and management
Responsible supply chain management
Employee health, safety and well-being
Innovation and technology
advancements
Community engagement
Diversity and inclusion
Product quality
and safety
Human rights and
labour standards
Data protection
and cyber security
Water management
Biodiversity
Medium
Impact materiality (relative score)
High
Categories of material topics
Relevance of the material issues to NKT’s stakeholders:
customers, suppliers, investors and public organizations
Envirionment
Social
Governance
Medium
Moderate
Large
Significant
13
NKT Cables Group Sustainability Report 2023
02 Strategy and Governance
This extensive research supported NKT’s identification and prioriti-
zation of highly relevant sustainability issues.
Guidance from the Global Reporting Initiative (GRI) was used to
establish what is material in terms of impact. GRI suggests that
materiality assessments should consider both internal and external
factors, including the organization's mission, strategy, stakeholder
concerns, societal expectations, and influence on suppliers and
customers, in addition to compliance with international standards
and agreements.
The financial impact assessment was conducted in accordance
with guidelines from the Sustainability Accounting Standards
Board (SASB). This covers the identification of topics, which impact
operations and could result in financial impact through revenues,
costs, assets, liabilities, and cost of capital. These topics were
selected based on their relevance to investors, applicability across
industries, actionability by companies, and stakeholder consensus.
The assessment followed a stakeholder-centric approach. Inter-
views and workshops with suppliers, customers, employees, and
public organizations were at the core of identifying material topics,
quantifying potential impact and validating the final scores.
The materiality
assessment
identifies
and prioritize
sustainability
matters.
It provides
direction to NKT's
sustainability
strategy.
14
NKT Cables Group Sustainability Report 2023
02 Strategy and Governance
Program portfolio
Sustainability programs at NKT are a direct reflection of our strategic
imperative as outlined in the sustainability strategy, and are designed
with a clear focus on the most material topics and risks.
Environment
Climate change
Social
Own workforce
1. Natural-gas free operations
11. Safety strategy 2026
2. Energy efficiency
12. Training and skills development
3. Transition to alternative fuels
13. Diversity and inclusion
In 2023, NKT continued to strengthen and
execute on its decarbonization programs, which
remain a central focus together with waste
minimization and circularity. Simultaneously, the
efforts to creating a safe and inclusive work-
space, with a strong emphasis on diversity and
inclusion, were sustained.
While some programs, such as community
engagement, may not be directly material to
the company, they are important because they
reflect NKT’s commitment of being a trusted
partner for local communities.
The approach to new topics related to NKT’s
corporate sustainability efforts are developed on
an ongoing basis. This includes increasing the
ability to meet a corporate responsibility towards
human rights in the workforce and the value
chain, and the responsibility towards nature and
biodiversity.
NKT production sites, all located in Euro-
pean countries, adhere to the latest national
regulations governing waste management,
water usage, pollution prevention and control,
emissions management, and working condi-
tions. Complying with the health, safety, and
environmental regulations is considered NKT’s
license to operate and is thus not classified as
a separate program. Nonetheless, the actions
taken to meet these regulations directly influence
the environmental footprint of the company and
its products while enabling continued progress
towards NKT's corporate sustainability ambi-
tions.
Learn more in the
Integrated Management
System Policy
4. SF6 mitigation and management
5. Supplier engagement
Resource use and circularity
6.
Waste management - reduce,
recycle, and repurpose
7.
Circularity – closing the loop
8. Packaging initiatives and
take-back program
9.
Product footprint
Biodiversity and ecosystems
10. Biodiversity
14. Human rights
15. Community engagement
16. Data privacy and ethics
Governance
Business conduct
17. Management of relationships
with business partners
18. Corruption and anti-bribery
19. “Speak-up culture”
20. Responsible tax practices
21. Supplier due diligence
15
NKT Cables Group Sustainability Report 2023
Environment
17 Climate change
27 Resource use and circular economy
34 Biodiversity and ecosystems
03
16
NKT Cables Group Sustainability Report 2023
03 Environment
Environment
Decarbonisation targets
Environmental programs at NKT are centred around
three key areas: climate change, resource use and
circularity, and biodiversity.
90%
27.5%
100%
reduction of CO2e
emissions for scope 1
and 2 in 2030 compared
to 2019
reduction of CO2e
emissions for scope 3,
category 1 & 11 in 2030
compared to 2019
annual sourcing of
renewable electricity
by 2023 and continuing
through to 2030
In 2023, the primary focus remained on climate
change, with programs concentrated on the
company’s largest decarbonization levers. NKT
has steadily progressed on reducing its scope
1 and 2 emissions by 2030 in line with its near-
term target.
SBTi validated near-term target
In 2023, the Science Based Target initiative
approved NKT's near-term science-based emis-
sions reduction target. NKT has also committed
to set long-term emissions reductions targets with
the SBTi in line with reaching net-zero by 2050.
Carbon emissions reduction plan
At the forefront of resource use and circularity,
NKT has worked to eliminate landfill waste and
remained focused on increasing its recycling
rate to a level exceeding 90%. NKT maintained
existing circularity initiatives, initiated new ones
together with partners across the value chain,
and is developing an overall circularity strategy
and approach.
NKT also advanced its efforts on biodiversity,
leaning on science-based targets for nature. This
marks the beginning of the corporate journey
towards preserving and enhancing biodiversity.
Read the full near-term science-based target
and net-zero commitment
100%
80%
60%
40%
20%
-77.3%
2019
Renewable
Energy
2023
Removing
natural gas
Transition
alternative
Fuels
2030
* Find method statements and comments for non-financial data at page 60, 63, and 65.
17
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Climate-related risks
Key risks, impacts, and opportunities
NKT aims to leverage opportunities to mitigate
and adapt to a changing climate. The opportuni-
ties are predominantly linked to NKT as a central
contributor to the electrification of society and
the energy transition.
NKT recognizes the importance of under-
standing and managing, to the greatest extent
possible, the potential impacts that climate
change can have on its business operations,
as well as on the global market and the political
landscape in which NKT operates.
With the increase in frequency and severity of
extreme weather events such as coastal floods
and severe windstorms, there is a growing need
to implement actions on managing climate
related risks in order to future-proof the compa-
ny's operations. These developments are also in
line with an increasing expectation from inves-
tors and regulators.
Climate risk assessment
In 2023, together with a third-party partner, NKT
conducted a physical climate risk assessment;
and investigated how projected climate-related
risks, under various climate scenarios and time
horizons, could potentially impact the company’s
production sites.
Based on the climate risk assessment carried
out, NKT has identified a range of physical and
transitional risks considering relevant climate
scenarios by the IPCC. Recognising the general
uncertainties of climate-related scenarios,
NKT will draw on the updated findings as the
company continues to expand on its under-
standing of how climate change can potentially
impact business operations in the future.
The results of the climate risk assessment are
visualised to the right and on the following page.
Physical climate risks
Very high
High
Moderate
e
r
u
s
o
p
x
E
Low
Very low
River flood: Velké Mezirici (CZ)
Coastal flood: Karlskrona (SE)/Asnaes (DK)
Sea level rise: Nordenham (DE)
Severe storm: Nordenham (DE)/Asnaes (DK)
Hail storm: Cologne (DE)
Sea level rise: Asnaes (DK)
Severe storm:
Karlskrona (SE)
Velké Mezirici (CZ)
Cologne (DE)
Kladno (CZ)
Heat stress:
Cologne (DE)
River flood:
Cologne (DE)
2023 (Current/short term)
Physical Climate Risks
2030 (Medium term)
Time horizon
2050 (Long term)
Physical risk - Acute
Physical risk – Chronic
Continuously exposure across all time horizons:
18
NKT Cables Group Sustainability Report 2023
03 Environment
NKT’s main transition risks
Transition risks
Transition risk - Policy and Legal
Policy actions seeking to lower greenhouse gas
(GHG) emissions, either by promoting adaptation or
imposing constraints on high-emission activities.
Transition risk – Technology
Investment in new technology and innovations to
support the transition to a low-carbon future will
affect the competitiveness of old technologies, which
may turn into stranded assets.
Transition risk - Reputation
Failing to meet climate goals and commitments
can harm relationships with investors, regulators,
customers, and employees, and negatively impact
the company’s commercial relevance and reputation.
Transition risk – Market
Risk of new and more climate friendly materials/
raw materials becoming more expensive and less
accessible. Changing customer behaviour entailing
reduced demand for goods and services or shifts in
consumer preferences towards new entrant players.
Very high
High
Failing to meet climate goals
and commitments
Moderate
e
r
u
s
o
p
x
E
Low
Very low
Policy actions that seek to
lower GHG-emissions
New and more climate friendly
materials/raw materials
Changing customer behavior
Technological
improvements/investment
Next Steps
Going forward, NKT will:
■ Extend the physical climate risk assessment
to the supply chain and NKT's non-production
sites, such as office locations. This will provide
a complete overview of the major climate-re-
lated risks to the business.
■ Identify and/or update existing mitigation
measures based on the new risk assessment
at all production sites and locations. This will
be based on the specific physical climate risk
identified for each location. Mitigation meas-
ures have previously been identified at some
sites and include but are not limited to busi-
ness continuation plans or physical structures
to limit the risk exposure.
2023 (Current/short term)
2030 (Medium term)
Time horizon
2050 (Long term)
Climate scenarios and time horizons for physcial and transition risks
2023 (Current)
< 2°C scenario (RCP2.6/SSP1): < 2°C*
2030
2-3°C scenario (RCP4.5/SSP2): 2-3°C*
2050
> 4°C scenario (RCP8.5/SSP5): > 4°C*
* Temperature rise from pre-industrial times by the end of the century
19
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Natural gas-free operations
Key risks, impacts, and opportunities
Natural gas is one of NKT’s largest sources of
CO2e emissions when considering Scope 1 and
2 emissions. NKT primarily uses natural gas for
facility heating, and in certain operations during
the production process.
Considering the share of natural gas that consti-
tutes NKT's total corporate emissions, it is
critical to eliminate its use in operations to meet
the corporate net-zero ambitions.
Natural gas also has historical links to energy
security and can be subject to security politics,
which further emphasizes the need for lesser
dependency in the future.
Management and approach
NKT is phasing out natural gas from eight facto-
ries across Europe. The approach is tailored to
the local context and is centred around:
■ Implementation of alternative technologies,
including the installation of heat pumps,
excess heat capture and solar panels.
■ Engaging with local authorities to support the
development of new heating and electricity
sources, in particular in Asnaes, Denmark, as
described below.
■ Transitioning from natural gas to biogas in
scenarios where no other feasible alternatives
to gas usage are available in the short term.
■ In 2023, the construction of a district
heating plant in the direct neighbourhood
to the Asneas production site in Denmark
progressed. Once commissioned, excess
heat from production will be fed to the district
heating system. The plant will supply the
Asnaes production site with heat eliminating
natural gas consumption at the site.
Progress
■ Natural gas consumption in 2023 was 16,829
MWh in comparison to 15,131 MWh in 2022,
an increase which NKT actively adresses.
■ All sites using natural gas have either allocated
budget, concluded feasibility studies, planned
roadmaps and/or acquired third-party offers
on technology-related measures suitable to
the local site’s set-up, e.g. on purchasing
and installing heat pumps and solar panels,
or investments to capture excess heat from
production.
■ In 2023, NKT sourced biogas at the Cologne
production site in Germany to meet part of
the site’s yearly gas consumption needs. The
site has prepared investment plans to intro-
duce technology changes designed to reduce
natural gas consumption in general.
Next steps
In 2024, NKT will focus on the following actions
to phase out the use of natural gas:
■ Finalize road maps to eliminate natural gas
use at all our production sites.
Target
Natural gas free operations by 2030.
Carbon intensity from natural
gas, tCO2e per mEUR
5.39
3.97
-16.4%
1.91
1.60
2019
2021
2022
2023
-100%
2030
Target
CO2e emissions from natural gas
consumption, tCO2e per mEUR
5,092
5,019
+11.4%
2,763
3,079
2019
2021
2022
2023
-100%
2030
Target
■ Implement optimal solutions to realize positive
impact.
Find method statements and comments for
non-financial data at page 60-61.
20
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Energy efficiency
Key risks, impacts, and opportunities
NKT is on a growth trajectory and is investing
heavily in its operations, which is likely to
increase energy consumption. However, by
focusing on energy efficiency, the aim is to
balance this growth with the corporate decar-
bonisation and net-zero goals.
Decarbonisation also entails using energy more
efficiently and effectively. Overall, energy effi-
ciency actions can offer significant opportunities
such as cost savings, new business oppor-
tunities, and positive environmental impact.
However, it also presents challenges such as the
need for large upfront investments and poten-
tial operational changes. There are also risks
involved, including measurement challenges,
regulatory compliance, and technological
dependence.
Management and approach
NKT has embedded its focus on energy effi-
ciency within the corporate strategy to drive
continuous monitoring and progress. The
ongoing monitoring of energy performance
allows for prompt responses to anomalies and
provides key information to enhance energy
efficiency. The company also addresses this
challenge by implementing processes, which
promote a data-driven progress on energy
efficiency and enables rapid responses to
deviations in energy consumption patterns.
Notably the energy intensity, measured as MWh
per mEUR, is declining, showcasing the success
of the strategy and actions to improve energy
efficiency.
Progress
During 2023, NKT focused on the following
actions to improve our energy efficiency:
■ Achieved ISO 50001 on energy management
at one of the major production sites. This is in
addition to the ISO 5001 certifications already
received at other company sites. The certifi-
cation will support working systematically on
energy efficiency measures.
■ NKT conducted comprehensive energy
assessments for individual components in the
production line. This effort led to significant
operational adjustments, such as discontin-
uing the use of energy-inefficient equipment
and modifying operational modes to reduce
energy consumption during idle periods.
■ Continued replacing legacy light sources with
LED.
Next steps
■ Continue to implement long-term energy
efficiency programs at all sites.
■ Leverage energy data to drive energy effi-
ciency and remedial actions as needed.
Target
Continuous improvement of energy
efficiency.
Energy intensity related to
stationary equipment and
facilities, MWh per mEUR
197
158
-28.8%
135
96
2019
2021
2022
2023
Find method statements and comments for
non-financial data at page 61.
21
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Transition to alternative fuels
Key risks, impacts, and opportunities
Achieving a low-carbon society necessitates a
transportation system founded on electrification
and alternative fuels. However, the transition
to alternative fuels relies on well-established
political frameworks and investments in both
infrastructure and emerging technologies.
Furthermore, it relies on collective efforts of all
stakeholders to drive a broader commitment to
actively contribute to a fossil fuel free future.
Management and approach
Reducing and decarbonizing fuel consumption
plays a key role in meeting NKT's decarbon-
ization goals. NKT is partly using alternative
fuels in the company fleet and in stationary
equipment, and the installation vessel, NKT
Victoria has been upgraded to run on biofuel. As
NKT Victoria is currently engaged full time she
consumes a significant amount of fuel.
NKT is furthermore implementing program
initiatives to eliminate the use of diesel in internal
logistics and stationary equipment by 2027.
The company is also advancing to achieve full
transitioning to electric/hybrid vehicles for the
company fleet by 2025.
Progress
In 2023, NKT Victoria became certified to
operate on biofuels such as hydrotreated
vegetable oil (HVO). NKT is thus one of the first
companies in the power cable industry capable
to replace fossil fuels in offshore cable installa-
tion. Using HVO as a fuel can significantly reduce
the carbon footprint from NKT Victoria’s oper-
ations, with up to more than 98%1. The biofuel
HVO is produced using a portfolio of raw material
consisting of residual and waste products. NKT
Victoria can fully or partly operate on HVO during
offshore operations as requested by NKT’s
customers. She can furthermore operate on
power from shore during cable loading activities.
Target
Fossil-free fuel for land-based vehicles
by 2027. Company fleet will be electric/
hybrid by 2025.
CO2e emissions from fossil fuel
consumption related to internal
vehicles and stationary equipment,
metric tons CO2e
2,341
+19.1%
2,249
1,889
1,637
-100%
2027
Target
2019
2021
2022
2023
1 Based on DEFRA database. The database information used for the comparison is based on scope 1 emission for the respective fuels for the
assets under direct control and does not include scope 3 and outside scope emission for this calculation.
Find method statements and comments for
non-financial data at page 60-61.
22
NKT Cables Group Sustainability Report 2023
03 Environment
Next steps
Going forward, NKT will focus on the execution
of these initiatives. Specifically, NKT will:
■ Execute program initiatives enabling transition
to electricity and/or biofuel powered internal
vehicles and stationary equipment.
■ Continue dialogues with customers to ensure
availability of infrastructure for alternative fuels
at installation sites. Continue dialogues with
customers to use HVO for NKT Victoria during
cable installation operations.
NKT Victoria can
now operate on
biofuel during
offshore operations
significantly
reducing
her carbon
footprint.
Climate change
As such, this can contribute significantly to the
company’s decarbonization journey. It also
reduces sulphur content and particulate matter,
leading to improved quality of emissions.
In 2023, NKT's fossil fuel consumption for
internal vehicles increased due to increased fuel
consumption for equipment in service & instal-
lation activities. However, NKT also continued to
progress on shifting its fleet and internal vehi-
cles to electric vehicles. Similar to 2022, NKT
proceeded with the following actions to accel-
erate its transition to alternative fuels:
■ Shift to electric car fleet via the corporate
car policy. Upon lease renewal, the previous
vehicle is exchanged for an electric vehicle
and NKT thereby stepwise replaces fossil-fuel
vehicles in its fleet to electric ones.
■ NKT replaced additional internal logistic
vehicles - such as forklifts - to electric vehicles
and will replace the few remaining vehicles.
The replacement of larger heavy-duty vehicles
remains challenging in terms of technological
feasibility and cost. Currently a number of
these are instead operating, or will operate, on
biofuels to minimise their environmental impact.
23
NKT Cables Group Sustainability Report 2023
Climate change
SF6 mitigations and
management
Key risks, impacts, and opportunities
SF6 is a greenhouse gas with a high global
warming potential and with an increasing atmos-
pheric concentration. It is commonly used in
products for power transmission and distribu-
tion, for example in medium- and high-voltage
electrical equipment which traditionally contains
SF6 for insulation. Leakages of SF6, and other
F-gases, pose major risks to the environment,
continued progress on the transition to a green
energy system, and global climate goals.
In line with recent EU legislation, NKT supports
the general transition towards phasing out the
use of SF6 in electrical grids.
Management and approach
NKT currently uses SF6 gases in a small selec-
tion of products and while testing and validating
products.
As part of the corporate strategy, NKT is actively
working on developing alternative solutions to
replace SF6 for example in the cable accesso-
ries product portfolio.
Furthermore, NKT works actively to minimize the
use and prevent potential leakages of SF6 and
other F-gases in our own operations. Poten-
tial leakages and release of SF6 are mitigated
via risk reduction measures and monitoring
processes, which allow for detecting and
managing potential leakages rapidly.
Progress
NKT has an ongoing development program for
SF6 alternatives.
In 2023, NKT improved SF6 leakage moni-
toring and detection systems and management
processes at one production site and identified
potential risks at other sites. In comparison
to last year, NKT had only one minor leakage
incident.
Additionally, NKT maintained the following meas-
ures to prevent SF6 leakages at the production
and testing sites:
03 Environment
Target
SF6-free cable accessories
implemented by 2027.
SF6 leakage intensity,
metric tons CO2e per MEuro
-16.4%
0.141
0.118
0.013
2021
2022
2023
Find method statements and comments for
non-financial data at page 60.
24
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Preventive measures:
■ Internal education of relevant employees.
■ Only certified staff handles SF6.
Next steps
NKT will continue to act towards mitigating and
managing SF6 gas leakages and to phase-out
SF6 gases from electricity grids. The focus will
be to:
■ Clear and implemented routines, risk assess-
ments, equipment testing.
■ Maintain strong processes and security meas-
■ Control cards for gas measurements imple-
mented.
In case of a leakage:
■ Alarm systems and emergency evacuation
ures to mitigate SF6 leakages.
■ Continue ongoing programs to develop
solutions with more sustainable alternatives
to SF6.
equipment in place to handle remaining gas.
■ Ensure that F-gases with a low Global
Warming Potential are procured.
■ Continuous improvement process in place
for lessons learned, root cause analysis
and implementation of identified preventive
actions.
NKT has
an ongoing
development
program for SF6
alternatives.
25
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Supplier engagement
Key risks, impacts, and opportunities
NKT is a manufacturing company and sources
raw materials globally. The materials used, such
as copper, aluminium, steel, and plastics have a
significant impact on climate, environment, and
society and additionally the majority of metal
reserves originate in countries with high risk
profiles.
A significant portion of NKT’s sustainability
impact is therefore attributable to the supply
chain - about one-third of NKT's scope 3 emis-
sions are associated with 'purchased goods and
services'.
Adressing the decarbonization of the supply
chain is therefore a vital opportunity for NKT to
reduce the corporate scope 3 emissions and
simultaenously provide low-carbon solutions to
its customers.
Management and approach
NKT‘s Supplier Engagement Program adresses
the sustainability risks and impacts within its
supply chain and aims to reduce climate and
adverse human rights impacts.
The program is based on collaboration with stra-
tegic partners in the supply chain and primarily
targets suppliers of metals and plastics, identi-
fied as high-risk in terms of climate and environ-
mental as well as human rights impacts in the
corporate materiality assessment. The program
also targets suppliers within offshore installation
works due to the high fuel consumption, which
contributes significantly to the corporate climate
impact.
The Supplier Engagement Program is designed
to foster transparency and to build strong
relationships for change. A crucial aspect of
this is alignment with customers and suppliers
on a decarbonization roadmap, which is key
to offering low-carbon cable solutions and
achieving corporate decarbonization targets.
Target
Science-based target: 27.5 % reduction in scope 3 until 2030 in the
scope 3 category 1 “Purchased Goods and Services” and category 11
“Use of Sold Products”.
Share of suppliers in engagement program
Targets
2025
100%
75%
75%
63%
2023
35%
20%
89%
2022
50%
28%
with scope 1 and 2 emission reduction targets
with scope 3 emission reduction targets
offering low-carbon alternative material incl. compliant carbon footprint evidence (EPD/LCA)
Find method statements and comments for non-financial data at page 65-66.
26
NKT Cables Group Sustainability Report 2023
03 Environment
Climate change
Progress
During 2023, the following activities were
completed:
■ Onboarded additional suppliers to the
Supplier Engagement program, this included
installation sub-contractors.
■ Integrated climate questionnaires into the
corporate qualification tool and other IT
systems used for procurement.
■ Integrated ESG parameters into our sourcing
approach for high impact production materials
and into category strategies of production
related materials.
■ Joined The Copper Mark and engaging in
their Impact working group which covers
environment and human rights impacts. The
Copper Mark is a multistakeholder assurance
framework that promotes responsible produc-
tion practices across the copper value chain,
providing independent third-party verification
and contributing to sustainable development.
■ Increased transparency on high impact mate-
rials and associated product footprints.
Next steps
Going forward NKT will:
Prioritizing supply chain impact
Metal and plastics are core components in the production of a cable. Metals and plastics are based on the
extraction, processing, and manufacturing of raw materials, which have a significant impact on climate,
environment, and society. To minimize these, NKT actively works in strategic partnerships with suppliers of
metal and plastics, enabling both targeting of the largest environmental and social risks and contributing to
the sustainability of the produced cable.
■ Develop Sustainable Procurement Policy.
Metals – Copper, Aluminium, Steel, Lead
■ Conduct trainings for internal stakeholders
and suppliers on Sustainable Procurement
Policy and guidance on supplier Product
Carbon Footprint.
■ Integrate ESG parameters into Category Strat-
egies e.g. with installation subcontractors.
■ Integrate human rights and strengthen social
aspects in the Supplier Engagement Program.
Processed metals are used in
cables for various purposes,
such as conducting electricity
(aluminium and copper), providing
strenght (steel) and shielding
(lead).
Processing and
manufacturing
Extracted metals are
turned into usable forms,
often through smelting,
refining, and alloying.
Raw material extraction
Metals are extracted from
the earth through mining,
whereas ores are collected
and then processed to
obtain the pure metal.
Plastic – PE, PVC, Filling Compounds
Manufactured plastic are used
in the cables for insulation (PE,
PVC) and filling purposes (filling
compounds).
Processing and
manufacturing
The raw materials undergo
a polymerization process
to create resins, which are
then formed into the desired
plastic products.
Raw material extraction
Plastics are derived from
natural, organic materials
such as cellulose, coal,
natural gas, salt, and, of
course, crude oil.
27
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
Waste management – reduce,
recycle, and repurpose
Key risks, impacts, and opportunities
Responsible handling of waste fractions and
materials is central to enable the minimization
of NKT’s impact on nature and climate change.
In general, NKT has well-developed waste
management systems and strong partners to
support this at factory and project sites and NKT
has the opportunity to become the first leading
cable manufacturer to reach landfill levels less
than 1% and beyond towards zero. However, as
the attention on circularity increases in 2024, it is
critical to also optimize on waste in the design,
processes, and manufacturing of our products
to drive progress – especially in processes using
scarce materials, such as copper, or potentially
polluting materials, such as chemicals and
plastic. Additionally, NKT’s focus on reducing
landfill and incineration, and increasing reuse
or recycling is important to its business and
sustainability ambitions.
Management and approach
NKT strives to make efficient use of resources in
all production processes, prioritizing high effi-
ciency in resource consumption, and maximizing
recyclability of unavoidable waste. A strong
focus is placed on reduction of waste, including
open and closed-loop recycling of metals and
plastics. This is addressed through sustainable
product design and initiatives at all produc-
tion sites to both reduce the amount of waste
produced and increase the rate of circularity.
The initiatives take local context into account,
reflecting the national differences in current recy-
cling and waste infrastructure available across
different countries. However, NKT will always
follow the most ambitious approach to reduce
waste and increase recyclability – whether that is
corporate or local regulation.
Three guiding principles have been defined as
part of NKT’s waste strategy:
1. Advance circularity in materials and
material use.
2. No compromise on landfill and incineration.
3. Integrate the 5Rs (refuse, reduce, reuse,
repurpose, recycle) of waste management
across NKT.
As key elements in achieving a circular economy,
NKT considers the interactions between circu-
larity, waste management and the regeneration
of nature to ensure projects and targets align
and support each other.
Target
≤1% waste directed to landfill and
incineration by 2026.
≥90% of production waste diverted
to recycling or reuse by 2028.
Waste directed to landfill and
incineration (no energy recovery),
percentage share of total annual
waste volumes
4.0%
-0.4%
1.7%
1.7%
1.3%
<1.0%
2020
2021
2022
2023
2026
Target
Find method statements and comments for
non-financial data at page 61.
28
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
Waste management – reduce,
recycle, and repurpose
Progress
■ Successfully directed 4.5% more of total
waste to re-use, recycling and composting
instead of recovery and incineration than in
2022.
■ Improved sorting and tracing of waste streams
to enable improved waste treatment, which
included the involvement of external stake-
holders to identify opportunities for improved
waste handling.
■ Reduced diversion of waste directed to
recovery with 4% of total waste generated
compared to 2022.
■ Increased existing in-house recycling initiatives
to gather scrap material and feed it back into
the production flow post regranulation.
■ Reduced diversion to landfill to 1.3% of total
waste generated.
■ Reduced scrap rates at all sites via action
plans, target setting and tracking, for example,
mainte-nance routine of scrap containers.
■ Changed waste handlers to send waste to
incineration for waste recovery instead of
sending the waste to landfill. This necessitated
new equipment at NKT sites.
■ Introduced a system to trace waste streams at
one more factory. At two factories, NKT is now
tracing the waste streams from production
through SAP. The waste fractions are iden-
tified and mapped in SAP during the design
phase, which allows the production sites to
handle and manage the waste fractions more
efficiently.
Next steps
■ Continue investigating and implementing new
methods to increase reuse and recycling of
waste from production.
■ Leverage results from pilot project on recy-
cling and/or reuse copper scrap in collabora-
tion with suppliers and waste handler.
■ Explore partnership opportunities e.g. within
academia.
■ Strategize on increasing scope of the waste
fractions pilot project in production processes.
29
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
Circularity – closing the loop
Key risks, impacts, and opportunities
NKT actively supports an accelerated transition
to a low-carbon future – both through its prod-
ucts and services, and the methods in which
business is conducted. NKT recognizes that
circularity is essential to achieve the global goal
of net-zero emissions, and to ensure availability
of resources for the generations to come, by
reducing the dependency on new sourcing
raw materials. Circularity is also at the core of
addressing the global challenges of climate
change, resource consumption, pollution, waste,
and biodiversity loss. The evolving regulatory
landscape, customers' circularity demands,
and zero waste ambitions provide momentum
and opportunity to speed up NKT’s circularity
ambitions. NKT has the means to explore and
develop alternatives to non-renewable mate-
rials and increase the circular mindset in the
cable industry and beyond, and NKT is already
working actively towards enabling progress on
these topics both in-house and through partner-
ships, with a current focus on production and
installation activities.
Management and approach
Increasing the circularity rate is particularly
important for the key components of NKT’s
products, such as copper, aluminium, steel,
and plastics. Traditionally, these materials are
derived from resource-intensive processes with
negative impacts on environment, communities,
and human health. Therefore, NKT is focusing on
supporting the development of a circular mindset
as well as on testing and implementing alterna-
tive methods and materials wherever possible.
NKT already considers aspects of circularity in
its business model, e.g. by producing cables that
have a long life-time and providing repair services
to clients. Furthermore, NKT is actively working
to increase focus on circularity by developing
strategic ambitions on zero waste and circularity.
Going forward, NKT aims to ensure circularity
becomes second nature for stakeholders across
the value chain – and through the complete life-
cycle of its products, from design to end-of-life.
A core part of the strategy is to engage with
external partners, such as suppliers, waste
handlers, industry organizations, and customers
involved in re-use and recycling along the entire
value chain. This complements the previously
described actions on minimising waste and
increasing circularity in the design and manufac-
ture of our products. NKT's actions to increase
circularity will progressively enable customers to
install transmission systems with a lower climate
impact from a lifecycle perspective.
Progress
■ The first company in the power cable industry
to successfully develop mechanical recycling
of cross-linked polyethylene (XLPE) (2020).
■ Initiated pilot project to decrease the carbon
footprint from power cable production by
investigating methods to replace a substantial
proportion of materials used with recycled
polyethylene (2021).
■ Mixed material fractions, including XLPE,
PE, HFFR, foils and yarns, which cannot be
reused are recycled and then repurposed to
manufacture products like flowerpots, cable
drums, and traffic barrier pole feet.
Target
Continuously create a sustainable
value proposition through the lifecycle
of products and solutions, and actively
pursue zero waste through circularity.
Waste directed to re-use, recycling
& composting, percentage share of
total annual waste volumes
+4.5%
82.2%
78.0%
82.6%
>90%
70.0%
2020
2021
2022
2023
2028
Target
Find method statements and comments for
non-financial data at page 61.
30
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
■ Implemented measures to reduce consump-
tion by avoiding or reducing higher material
consumption than listed in the design; (action
plans, target setting and tracking in place).
■ Pilot project initiated in collaboration with
suppliers and partners to evaluate and test
reuse of materials to divert it from waste
category.
■ Strengthened the processes and activities for
inhouse recycling initiatives, e.g. for PVC in our
operations.
Next steps
■ Development of circularity strategy and policy
has been initiated to create ambitions and
frameworks for NKT. The strategic foundation
and action plan will be finalised in 2024.
■ Create baselines for circularity topics including
targets and metrics.
■ Circularity trainings for internal staff at NKT to
enable the mindset in all phases of production
as well as everyday work.
NKT is
actively
working to
increase
focus on
circularity.
31
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
Packaging initiatives
and take-back program
Target
Continue to develop the take-back
program with the aim to increase
circularity and logistics efficiency.
Key risks, impacts, and opportunities
Packaging products for transport and easy
installation is a significant challenge in elimi-
nating waste generation. During installation, there
is a risk of cable drums, trolleys, and packaging
materials being left as waste post-de- livery. This
creates a risk of increased waste and non-circular
use of otherwise reusable resources, resulting
in a negative environmental impact through
e.g. pollution. Furthermore, packaging on NKT
products becomes a part of customers’ waste
fractions. Optimizing packaging both in terms of
minimization, potential reuse/recycling, and/or
take-back systems is therefore a key component
in ensuring better outcomes for customers
Management and approach
NKT is working to reduce and optimize its use
of packaging materials. However, the need for
packaging of products remains today, and in
these instances, NKT works to increase the rate
of recycling or returnability of packaging mate-
rials. Additionally, NKT is working on rethinking
and redesigning the packaging materials or
shifting to alternative materials which have
reduced environmental impacts.
■ About 10% of the wooden drums and 65% of the
Qaddy® -trolleys are managed by the refund/
reuse system every year.
NKT is proud of its corporate systems to return
drums and pallets. The first drum take-back
program has been running for more than 30 years.
Next steps
■ Explore more possibilities to optimize drums
and logistics for the customers.
Progress
■ Introducing alternative stretch foil with improved
material properties to reduce foil consumption.
■ Evaluate further initiatives to improve type of
packaging materials and increase circularity in
our packaging.
■ Increase share of recycled content in packaging
■ Introduced circular pallet rental system and
buying of used pallets instead of new ones.
materials.
■ Pallet and drum return systems are in place
return system.
■ Increase share of packaging that is part of a
in many markets with customized setups but
with the same target of increasing returnability.
■ Sustainable sourcing of wood-based pack-
aging materials (e.g. PEFC certification of
wood suppliers).
■ Secure sustainable sourcing of for example
wood-based packaging materials.
32
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
Product footprint
Key risks, impacts, and opportunities
As a manufacturing company, the product is
at the core of NKT and to connect a greener
world, it is essential to work continuously with
the products’ environmental footprint. NKT
believes that it is fundamental that the materials
and approach leveraged to reach a sustainable
energy system should be produced, installed
and maintained with the lowest reasonable
environmental footprint. Power cables from NKT
have the potential to support a more sustainable
future, and NKT supports this by continuously
developing well-documented and optimized
product footprints. If not, NKT potentially risks
weakening its circular value proposition creating
disadvantages in the future market. NKT has the
opportunity to work closely with suppliers, part-
ners and customers to ensure quality products
with a minimal environmental footprint.
Management and approach
As a technology leader in the power cable
industry, NKT has a long-term strategy to be a
key player in developing the next generation of
power cables and accessories essential to drive
the transition to renewable energy. NKT works to
minimise and manage the environmental impact
and carbon footprint of its products and solu-
tions through the three focus areas below. NKT
works on these areas both through initiatives in
its own production sites and solution offerings,
and in partnerships with major suppliers and
customers.
Focus area 1: Providing transparency on the
environmental footprint of our products
NKT commits to supporting full transparency
of the carbon and environmental footprint as
part of the green transition. NKT provides Life
Cycle Assessments (LCAs) for its customers to
increase the transparency and accuracy of the
carbon and environmental footprint of its prod-
ucts. Environmental Product Declarations (EPDs)
are provided on standard products, allowing
customers to know the details for the items
procured. To do so, NKT continuously works on
increasing the availability and accuracy of rele-
vant data. NKT’s EPDs are prepared in accord-
ance with international standards and third-party
verification.
Focus area 2: Focus on low-carbon
and high circularity products
NKT works to increase the use of circular mate-
rials in its products. If requested, NKT provides
low-carbon materials to customers, and work
continuously with its strategic suppliers and
customers to further decarbonise its products.
It is important for NKT to not just deliver high
quality for its customers, but also to drive them
towards investing in solutions with high sustain-
ability considerations. NKT works to increase
circularity in its products through various areas
such as throughout the design phase, recycla-
bility of materials, reuse, and waste reduction.
NKT also works towards increasing the environ-
mental performance of its products, based on
the data mentioned under focus area 1.
Focus area 3: Research and development
NKT continuously works on the development
of new products and solutions. Doing so, it is
important to design products and solutions,
that can be manufactured sustainably and with
an efficient material usage. NKT furthermore
focuses on designing products and solutions
with low power losses, long product lifespans,
Target
Continuously create a sustainable
value proposition by ensuring
environmental stewardship through
the lifecycle of products and
solutions.
Complete development of
superconducting prototype
technology by 2024.
In collaboration with clients,
gradually decarbonize the materials
used in the cable cross sections.
33
NKT Cables Group Sustainability Report 2023
03 Environment
Resource use and circular economy
and with an increased potential for decommis-
sioning and recycling. Climate impact is a core
element in the R&D strategy and is integrated
in the business strategy. In NKT Group R&D
manages the development and continuous
improvement of new and existing materials in
close collaboration with the rest of the company
and through external partnerships.
As an example of an emerging technology,
superconducting power cable technology
enables power-dense transmission carrying
a large amount of electric power via a very
compact cable design. NKT is currently
engaged in the SuperLink project in Germany,
which is expected to become a 12 km cable link
with a power rating of 500 MW and a voltage
level of 110 kV. To keep the cable from over-
heating, NKT uses the environmentally harmless
refrigerant nitrogen – considering function and
sustainability at the same time.
Progress
■ NKT has provided solutions that have resulted
in a direct impact on the products’ carbon
footprint and the corporate scope 3 emis-
sions. This is for example related to solutions
using recycled or low-carbon copper or/and
aluminium.
■ Created third-party verified Environmental
Product Declarations (EPDs) on part of product
portfolio in line with international standards. To
facilitate this, NKT procured a EPD generator
tool specific to certain products.
■ Implementing low loss conductor (2021-2025)
that will help reduce the CO2e emissions from
power cable systems during operation.
Next steps
■ Increase the span of the environmental foot-
print calculations to cover the whole product
portfolio.
■ Continue development to maximise power
output while minimizing the use of metals and
plastics.
■ Continue development of HVDC and HVAC
■ Carried out LCAs for specific projects as per
technology.
customer requests.
■ Implemented improvements in manufacturing
processes to lower the environmental footprint
of production. See actions described in the
Environment section.
■ Continue collaboration with the supply chain
to source materials with low carbon footprints.
■ Investigate design for lead-free offshore power
cables.
■ Engaged metal and plastic suppliers through
■ Continue research and development of new
the NKT Supplier Engagement program.
materials focusing on increasing performance
and on decreasing environmental impact.
■ Increased the focus on procuring more
sustainable materials and engaging with ESG
responsible suppliers.
■ Continue technology development for the
SuperLink project.
34
NKT Cables Group Sustainability Report 2023
03 Environment
Biodiversity and ecosystems
Biodiversity
Key risks, impacts, and opportunities
Integrating nature and biodiversity into business
practices is essential for fostering sustainable
development and addressing global ecological
challenges. NKT is a company working in and
with nature and is actively taking responsibility in
protecting biodiversity.
The production and installation of power cables
has an impact on the environment and biodiver-
sity, which NKT actively addresses through its
strategic environment programs. Simultaneously,
corporate activities are influenced by the envi-
ronment, for example in terms of the availability
of natural resources used for the production of
power cables. NKT recognizes the importance
of understanding both types of risks to imple-
ment mitigation activities supporting a nature
positive business. The fact that NKT works
directly with natural environments, provides it
with a unique opportunity to apply the mitigation
hierarchy to improve biodiversity and the state
of nature, as well as implement nature-based
solutions and processes.
Management and approach
NKT is actively working on updating its approach
to biodiversity with a focus on materiality and
science-based metrics. Within an evolving regu-
latory framework and with shifting biodiversity
requirements from customers, NKT recognises
the complexities of biodiversity and is committed
to continuous learning and collaboration with
environmental experts.
NKT aspires to transition from a focus on risk miti-
gation to enabling a positive impact on biodiver-
sity through a comprehensive strategic foundation
resulting in concrete action plans targeting NKT’s
material impacts and sites. Minimizing the corpo-
rate impact on nature is closely linked to reducing
NKT’s environmental footprint, through circularity
and waste reduction initiatives as well as the envi-
ronmental management at production sites.
■ Onshore NKT has successfully worked in
Natura 2000 and other protected areas
to protect wildlife and biodiversity, e.g. by
protecting local birdlife for the duration of the
Shetland project cable installation.
■ The seabed is safeguarded during trenching
and cable burial, safe distance to marine
mammals is kept during offshore operations
and NKT has experience from several opera-
tions in high-risk marine environments.
Next steps
■ During 2024 NKT will develop and commit to
a Biodiversity Policy and strategic roadmap to
specify ambition and targets for biodiversity at
NKT projects and sites
■ Expand scope of risk assessment to include
main suppliers.
Progress
■ Initiation of analysis aligned with science-based
targets (SBT) for nature.
■ Increase measurement capabilities based on
scientific knowledge gained from SBT for nature.
■ Identification of pressures on nature related to
■ Develop and implement concrete initiatives to
NKT's economic activities and operational sites.
support biodiversity on land and sea.
Target
Aiming for biodiversity net gain in all
operations.
NKT is aligned with the science-
based targets for nature.
1
2
3
4
5
Assess
NKT is mapping material impacts
and dependencies in the value
chain.
Interpret & Prioritize
By prioritizing sites and projects,
NKT can pinpoint targets and level
of effort needed.
Measure, Set & Disclose
NKT wants to achieve a baseline,
target description and timeline for
action.
Act
Taking actions within the four categories
– Avoid, Reduce, Restore/ Regenerate &
Transform.
Track
NKT will monitor, adapt and verify
to ensure a continuously proactive
approach.
35
NKT Cables Group Sustainability Report 2023
04
Social
37 Own workforce
43 Human rights
45 Community engagement
46 Data privacy and data ethics
36
NKT Cables Group Sustainability Report 2023
04 Social
Social
Social programs at NKT are centred
around health and safety, diversity
and inclusion, human rights, and
community engagement.
In 2023, NKT continued its focus on being a
responsible employer. These efforts involved
a strong focus on the health and safety of the
company’s own workforce, ensuring equal
opportunities in the organization, and on
engaging with local communities in the areas,
where NKT operates.
Workplace safety is a license to operate for
NKT, and the company continuously work to
ensure the safety of its employees, suppliers,
customers, and partners by strengthening its
corporate safety culture. During the year, NKT
has strengthened its approach to human rights
to address impacts for both the company’s own
work force and value chain.
Targets
Diversity and inclusion
≥30%
≥40%
≥30%
≥74
representation of the
underrepresented gender
in NKT in the Group
Leadership Team and
the Extended Leadership
Team by 2025
representation of the
underrepresented
gender in NKT on the
Board of Directors
by 2025
minimum share of female
new-hires by 2025
in diversity and
inclusion score in
employee engagement
survey by 2025
Talent development
Health and safety
≥74
≤10%
≤5%
≤0.60
Employee Engagement
Score by 2025
attrition of employees
by 2025
attrition of identified
talents by 2025
Total Recordable
Incident Rate by 2028
37
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
Safety strategy 2026
Key risks, impacts, and opportunities
At NKT, hazards from the use of heavy and
complex equipment in production sites - in
addition to harsh environments and complexity
in installation operations - can pose a significant
risk for the health and safety of employees, part-
ners, and suppliers.
Management and approach
NKT is committed to ensuring a safe working
environment for all employees and has a target
of zero injuries. NKT operates with a common
set of standards, taking into consideration the
national differences in health and safety legis-
lation as well as the differences between local
sites. NKT is continuously engaged in mitigating
health and safety risks and aims to set global
corporate requirements and develop best prac-
tices to mitigate these risks at each location.
NKT addresses health and safety risk by
ensuring that thorough risk assessments
are conducted and top risks and causes for
incidents are mitigated accordingly. The aim
is to establish and maintain a strong culture
surrounding monitoring and corrective actions
with a particular emphasis on employee involve-
ment at all levels of the organization.
During 2023, NKT has experienced an increase
in its total recordable incident rate (TRIR) and is
therefore ramping up its efforts within health and
safety, both at NKT sites with ongoing expansion
and the assoricated risks thereof as well as at
NKT sites with stable operations. The objective
is to deliver on the corporate health and safety
strategy for 2024-2026 by accelerating the
execution of the three strategic pillars:
1. Local site maturity roadmaps: Development
and implementation of site-specific road
maps to close all identified gaps with regards
to health and safety. The road maps will be
based on the recently conducted maturity
Target
<1.05 Total Recordable Incident
Rate (TRIR) by 2023.
≤0.6 Total Recordable Incident Rate
(TRIR) by 2028.
Total Recordable Incident Rate
Total Recordable Incident Rate
(Per 200,000 hours worked)
+34.5%
1.52
1.20
1.19
1.13
<0.6
2020
2021
2022
2023
2028
Target
Find method statements and comments for
non-financial data at page 64.
38
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
assessments, which identified local gaps to
the health and safety requirements.
2. Global corporate safety standards: Develop-
ment and implementation of a set of global
corporate standards for the mitigation of the
top risks as well as for relevant health and
safety procedures.
3. Behavioural safety: Development and imple-
mentation of a behavioural safety program
across NKT to drive appropriate safety behav-
iours.
It is the responsibility of Group Health, Safety
and Environment to deliver on the three pillars.
Progress
NKT has completed the following actions during
2023:
■ A previous pilot project on behavioural
safety was successful and during 2023 NKT
launched the program across a large part of
its operations. This targets the main cause
behind the current incident rates, as analysis
has indicated that behaviour is the main driver
of the safety incidents occurring.
■ All sites have developed self-assessments to
be used for the development of local maturity
roadmaps.
■ NKT has launched and deployed 50% of the
global corporate standards for the mitigation
of top risks and related health and safety
relevant procedures.
■ The Group Health, Safety and Environment
function has been brought under the respon-
sibility of the Group COO. The Group COO
participates directly in the health and safety
council with representatives of all sites to
accelerate improvement.
■ Human rights risk assessment following
■ Strengthen the presence of the health and
the UN Guiding Principles on Business and
Human Rights has been performed for NKT´s
own workforce.
■ Global Safety Week 2023, focusing on aware-
ness through conducting workshops, pres-
entations, and safety tours.
safety organization in terms of local visibility
and capacities.
■ Strengthen the harmonised processes and
KPIs, such as by structuring and maintaining a
common health and safety database.
Next steps
■ Implement the NKT corporate global safety
standards developed during 2022 and 2023
and develop the remaining global corpo-
rate safety standards and implement them,
including strengthening health and safety in
the leadership development programs.
■ Road maps will be developed and imple-
mented to close any gaps identified in the
local maturity self-assessment carried out
during 2023. The execution of the road maps
will be done by means of a structured, audit-
wise approach, supported by additional
resources. All actions will be based on best
practices and will be tailored to the specific
location.
39
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
Training and skills
development
Key risks, impacts, and opportunities
To achieve the ambition of further organizational
growth in the coming years, NKT recognizes
the need to maximize the development and
retention of the current workforce. The transition
to a low-carbon economy requires enhancing
skills and competencies, and NKT is committed
to equipping its employees with the necessary
tools and knowledge within this and other rele-
vant areas.
A special focus on internal talent is essential to
secure highly specialized competencies and lead-
ership for the future. These competencies are not
only crucial for the growth of the organization but
also to the contribution to a sustainable future.
Attracting, developing and retaining talent with
the right competencies is critical to future perfor-
mance. Increased competition for top-talent can
impact attracting, developing, and retaining the
people necessary to deliver on our corporate
growth ambitions.
Management and approach
NKT continues to accelerate its focus on
expanding opportunities for employees and
overall talent development across its organiza-
tion via corporate programs, processes, and
tools. In 2023, NKT initiated the process of
updating its leadership principles to support the
corporate culture and growth journey. Further-
more, NKT will further strengthen its talent and
development processes in 2024. Engagement
remains a strong focus area with a commitment
to maintain and build on the progress seen in the
past years.
Progress
■ Procured on-demand learning library for all
employees.
■ Targeted focus groups to explore leadership
at NKT.
Target
Employee Engagement 74% or above.
Maximum attrition of employees 10%
Maximum attrition of identified talent 5%
Voluntary attrition, percentage share
-2.0%
9.5%
<10%
7.9%
7.5%
6.3%
2020
2021
2022
2023
2025
Target
Find method statements and comments for non-financial
data at page 64.
40
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
■ Launched team development toolkit with
Extended Leadership Team (ELT).
■ Finalise and deploy new NKT Leadership
Model and NKT Leadership Academy.
■ Trained internal facilitators to run team dynamics
and individual development discussions.
■ Develop strategically critical functional acad-
emies in partnership with business lines and
functions.
■ Launched mentoring program.
■ Redesign and digitalize global onboarding and
■ Expanded mobility support to enable global
offboarding.
deployment.
■ Expand team development toolkit to wider
population.
■ Further strengthen internal mobility, global
mobility, and talent processes.
■ Continued expansion of programme offering
for trainees, advance leadership, female fast
track, and mentoring.
■ Proactively drove succession planning.
Next steps
NKT will carry out the following to ensure
progress within training and skills development:
■ Continue delivery of functional and mandatory
trainings (e.g. procurement, compliance, legal,
health and safety).
■ Continue delivery and development of talent
programs.
NKT continues
to acceralate
the focus on
expanding
opportunities for
employee and
talent development
across the
organization.
41
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
Diversity and
inclusion
Key risks, impacts, and opportunities
Diversity and inclusion are integral to NKT's
sustainability strategy, fostering workplace
equity, and inclusive decision-making. These are
also key parameters in a fair and just transition
towards a low-carbon future, as diversity and
inclusion fosters meaningful participation by all
members of society. On a corporate level, NKT
works with diversity and inclusion for current and
future employees, including executive leadership,
to foster innovation and corporate progress.
Management and approach
NKT is a responsible employer and aims to
foster a culture enabling meaningful participation
of all employees. It is recognised that diversity
will increase the company’s ability to innovate
and execute on critical projects. NKT also
considers diversity and inclusion as key enablers
to increase employee retention, engagement,
and performance.
NKT focuses on engaging front runners and
passionate employees within diversity and inclu-
sion but also by driving awareness across the
organization. The corporate focus on diversity
and inclusion also includes talent attraction and
internal talent processes as enablers of a strong
organizational culture.
With regards to the wider community, NKT
focuses on diversity and inclusion through
outreach programs to inspire and support
women’s technical education and by supporting
women’s careers in relevant technical positions
within the industry after graduation.
Progress
■ Diversity and inclusion embedded in the
people strategy with clear diversity and inclu-
sion standpoints, targets, and roadmaps.
Target
≥ 30% representation of the underrep-
resented gender in NKT on the Group
Leadership Team and the Extended
Leadership Team, and ≥ 40% in the
Board of Directors by 2025.
Minimum share of female new hires
30% by 2025.
Diversity and inclusion dimension in
the employee engagement survey
≥ 74 by 2025.
Diversity and inclusion score*
+4.1%
>74
65
72
73
76
2020
2021
2022
2023
2025
Target
* To track workforce engagement, an annual survey
is conducted based on an employee engagement
index measured annually on a scale from 0-100.
The external benchmark in 2022 was 76. The
diversity and inclusion score is part of this annual
employee engagement survey.
Find method statements and comments for
non-financial data at page 64.
42
NKT Cables Group Sustainability Report 2023
04 Social
Own workforce
■ Conscious diversity and inclusion approach
in the corporate recruitment processes and
guidelines, for example through the intro-
duction and use of inclusive language tools
for job ads, inclusive use of imagery, data
driven decisions and a better presence where
diverse talents are present.
■ Carried out awareness training and role model
campaigns across the entire organization.
■ Senior leaders are measured on progress and
employee perception based on our Diversity &
Inclusion score in the engagement survey.
■ Diversity and inclusion activities to keep
building awareness.
■ Diversity and inclusion standards in
onboarding process.
Next steps
■ Continued focus on diversity and inclusion
■ Assessing the feasibility of company-wide
perspectives in employer branding, employer
value proposition, marketing, and advertising
policies and procedures for increased work-
force diversity.
Diversity and inclusion
NKT Code of Conduct
■ Continued investment in female leadership
■ Embedded diversity and inclusion in the
development.
corporate talent development and succes-
sion process, for example through expanded
offering of female leadership development
through formal training and mentoring
programs.
■ Targeted development activities for other
target groups.
■ Diversity metrics in all talent tools.
■ Introducing new diversity and inclusion
■ Establishment of local diversity and inclusion
module in the leadership program to drive
awareness and set expectations to wider
leadership community.
■ Collaboration with external partners, for
instance female technical networks, diversity
promoting organizations and CEO network.
champions.
■ Wider implementation of employee resource
groups focusing on diversity and inclusion.
Representation of the underrep-
resented gender in NKT on Board
of Directors, NKT Cables Group,
percentage share
40%
33.0%
33.0%
33.0%
33.0%
2020
2021
2022
2023
2025
Target
Representation of the under-
represented gender in NKT in
Senior Leadership
>30%
-1.0%
18.0%
19.0%
18.0%
13.0%
2020
2021
2022
2023
2025
Target
Find method statements and comments for
non-financial data at page 62-64.
43
NKT Cables Group Sustainability Report 2023
04 Social
Human rights
Human rights
Key risks, impacts, and opportunities
As a global company, NKT operates in a diverse
market, both as a producer and a consumer
of goods and services. This global presence
necessitates a strong focus on possible human
rights risks. NKT recognizes the complexities
of its supply chain, particularly in relation to
the procurement of materials such as copper
and aluminium often sourced from countries
where human rights are under pressure. This
puts NKT at risk of potentially being complicit in
human rights violations. To mitigate, NKT has a
proactively approach with processes in place to
identify and handle risks as part of the supplier
engagement program and vendor due diligence.
In light of the increasing global focus on human
rights, NKT is continuously strengthening its
human rights framework and remains committed
to identifying and mitigating human rights risks in
its value chains.
Management and approach
NKT is committed to safeguarding human
rights within its own workforce and for workers
throughout its value chain. The corporate
Human Rights Policy is a testament to this
commitment, reflecting internationally recog-
nized human rights standards. Specifically,
NKT's commitment aligns with the International
Bill of Human Rights and the eight fundamental
core conventions of the International Labour
Organization (ILO), which form the basis of
ILO's Declaration on Fundamental Principles
and Rights at Work. The corporate approach
is further guided by the OECD Guidelines for
Multinational Enterprises and the UN Guiding
Principles on Business and Human Rights.
NKT has initiated the implementation of a
human rights due diligence process, laying the
groundwork for a comprehensive approach that
includes assessing human rights, identifying
human rights issues, defining mitigating actions,
monitoring the effectiveness of these actions,
and communicating them transparently.
Central to NKT's approach are mechanisms
to address concerns related to human rights
and rectify any adverse impacts. Furthermore,
stakeholder involvement is a key aspect of
the company's commitment and NKT actively
engages both internal and external stakeholders
to ensure progress.
Transparency is central to the company's
approach, viewing the due diligence process
as a continuous journey towards improvement.
NKT is committed to safeguarding human
rights within its own workforce and for workers
throughout its value chain.
Progress
Below are the key highlights of the progress in
2023. NKT has:
■ Reaffirmed our existing commitment to
human rights under the Global Compact and
published the corporate Human Rights Policy,
which adheres to internationally recognized
standards. This policy extends to own work-
force, as well as workers and communities in
our value chain.
■ Conducted a human rights risk assessment
to evaluate actual and potential risks to own
workforce and the value chain, focusing on
strategic suppliers, particularly in the metals
value chain.
■ Internal enhancement of corporate policies
addressing health, safety, diversity, and inclu-
sion, with additional actions planned for 2024.
■ Leveraged initiatives like the Copper Mark in
the corporate value chain, e.g. participating in
an impact working group on human rights.
44
NKT Cables Group Sustainability Report 2023
04 Social
Human rights
■ Strengthened the focus on human rights in
the corporate supplier qualification and due
diligence process, and as part of onboarding,
suppliers shall accept NKT's Human Rights
Policy. NKT will continue to strengthen
processes to monitor human rights risks in the
supply chain.
■ Engaged with peers in the Human Rights
Accelerator Program of the UN Global
Compact, exchanging insights and building
competencies.
■ Continued promotion of the corporate whistle-
blower hotline as a central grievance mecha-
nism for employees and stakeholders.
This operates in conjunction with other state-
ments. Learn more here:
■ Approach to conflict minerals2
Human Rights Policy
Code of Conduct
Modern Slavery Statement
Modern Slavery Statement UK
and AUS
2 NKT uses the Conflict Minerals Reporting Template (CMRT) provided by the Responsible Minerals Initiative to increase transparency in respect of the smelters and refiners used in the supply chain and ensure they are conformant.
Next steps
Embedding
■ Further embed human
rights policy in existing
policies, staff handbooks,
and procedures and
thereby strengthen internal
awareness
■ Develop a human rights
training program available
to all employees.
Human Rights Due Diligence
1
2
3
4
Assessment
■ NKT’s human rights risk
assessment is a continuous
process, and the human
rights risk assessment will be
strengthened, particularly for
risks in the value chain.
■ Initiate focus on enhancing
stakeholder engagement.
Actions
■ Further integrate human rights
into the supplier engagement
program. Continue to leverage
multistakeholder initiatives to
address human rights issues,
either through direct engage-
ment with suppliers or collab-
orative initiatives.
Tracking
■ Human rights will continue to
be integrated into the existing
corporate due diligence
processes.
Communicating
■ NKT is dedicated to transpar-
ency and will communicate its
progress in external reporting.
Remedy and grievance
■ NKT treats all potential instances
of human rights violations with
utmost seriousness.
■ Cases submitted through the
corporate grievance mechanism
(whistleblower) or alternative
channels will undergo a
comprehensive investigation,
and the company will assume
its responsibility for remediation
following an evaluation of its
scope of influence.
45
NKT Cables Group Sustainability Report 2023
04 Social
Community engagement
Community engagement
Key risks, impacts, and opportunities
As a leading employer at multiple locations
globally, NKT commits to taking responsibility for
supporting the local community through active
participation in initiatives that drive sustainable
and positive community development. NKT
recognizes that its reputation is important for
securing talent attraction and retention both
locally and globally and that as a major employer
it has a responsibility for the local community.
Management and approach
NKT is committed to being a socially responsible
employer with a positive impact on the commu-
nities in which it operates. The company aims to
engage with internal and external stakeholders
to maximize positive impacts across local
communities, and mitigate any potential negative
effects caused by its operations.
The company’s community engagement is
built on a bottom-up approach where needs
and risks are primarily identified and addressed
locally. Experience and best practices are
shared across the NKT organization regularly.
The three pillars for the strategy are: Community
dialogue, Invest for the good of the community,
and Education and employment.
■ Collaborated closely with local universities,
science bodies, and schools.
NKT drives community engagement by
supporting employee participation in local
initiatives, aimed at fostering positive sustainable
development, improving corporate reputation,
and boosting employee engagement, retention,
and satisfaction.
Invest for the good of the community:
■ Conducted charity donations where employee
contributions are matched by the company.
■ Sponsored local sports clubs and employees
participating in sports events.
■ Sponsored events and organizations to spur
youth interest in Science, Technology, Engi-
neering, Mathematics (STEM) educations,
contributing to a robust pipeline of future
candidates.
■ Participated in local competency development
activities and female engineering networks
and events.
■ Made donations to local initiatives.
■ Supported employees returning from sick-
leave.
Progress
Grouped by the strategic pillars, NKT has:
■ Sponsored local cultural events, arts associa-
tions, and charity events.
Community dialogue:
■ Established a community engagement
approach and formal channels for employee
dialogue.
■ Engaged in dialogues with local municipalities
and governmental bodies.
■ Participated in local infrastructure projects and
business networks.
■ Supported positive development of the local
environment, e.g. through tree-planting and
clean-up events.
Education and employment
■ Collaborated with local employment agen-
cies, focusing on candidates far from the job
market and supporting underprivileged groups
to pursue successful careers.
Next steps
■ Increase collaboration between NKT entities
to share best practice and learning.
46
NKT Cables Group Sustainability Report 2023
04 Social
Data privacy and data ethics
Data privacy and
data ethics
NKT has established guidelines and training to
support staff's understanding of the handling
of data and has processes in place to ensure
that data is transferred in a secure manner and
complies with legal requirements.
Progress
■ Updated data privacy framework.
Next steps
■ Continue implementation of data ethics policy
and enhance internal data privacy policies and
procedures.
■ Continued support of employee's under-
standing of data protection and anchor local
responsibilities.
■ Clear role and responsibilities for handling and
■ Conducted training of high-risk employees.
managing data on local level.
■ Developed written guidelines to ensure ethical
and responsible use of AI tools.
Key risks, impacts, and opportunities
Violation of ethical and responsible data usage
requirements and non-compliance with appli-
cable data protection legislation, including the
EU General Data Protection Regulation (GDPR),
may cause serious damage to NKT data secu-
rity, business operations, and reputation. There-
fore, NKT complies with applicable data protec-
tion legislation including the GDPR and ensures
adherence to data ethics principles.
Management and approach
NKT respects all data, including non-personal
data, received, or collected from employees,
customers, and other stakeholders. Fair and
responsible data handling drives more efficient
NKT business processes and supports core
values and increases trust. Such data is handled
in compliance with applicable laws and regu-
lations and in accordance with internal ethical
standards.
Target
≥90% completion rate on data
privacy training.
Completion rate for data privacy
e-training, percentage share
-25.3%
87%
87%
90%
75%
65%
2020
2021
2022
2023
An adjusted approach for handling training records,
prompted by technical changes to the learning
platform, impacted the number of employees who
had completed their e-training by year-end.
Find method statements and comments for
non-financial data at page 64.
47
NKT Cables Group Sustainability Report 2023
05
Governance
49 Business conduct
48
NKT Cables Group Sustainability Report 2023
05 Governance
Governance
NKT is committed to conducting responsible
business, with integrity and ethics at the
foundation of the corporate sustainability strategy.
Compliance Board
In NKT, corporate governance is managed by
the Compliance Board, which oversees the
initiatives contained in the compliance program.
Ultimate supervision is performed by the Audit
Committee on behalf of the Board of Directors.
Board of Directors (Audit Committee)
CEO (Chair)
Head of Risk and Compliance
At NKT, the sustainability strategy is anchored by a
strong commitment to responsible business conduct,
integrity, and ethical behaviour.
In 2023, the company reinforced governance
programs, guided by the NKT Code of Conduct, to
ensure compliance with applicable laws, regulations,
and international standards, actively managing and
mitigating risks related to sanctions, corruption, and
bribery. NKT is proud of its strong culture protecting
whistleblowers, reinforcing the corporate commit-
ment to transparency and accountability.
A key initiative in 2023 involved enhancing sustain-
ability and ESG in the supplier due diligence. NKT
requires that suppliers adhere to applicable laws,
international regulations and the NKT Code of
Conduct, promoting responsible business practices
not just in the NKT organization, but also across the
value chain. NKT believes that achieving a sustain-
able future requires a collective commitment to
ethical business practices.
CFO
CHRO
CIO
General Counsel
Head of Corporate
Commercial,
Compliance and M&A
Business Line
Representative
Number of whistleblower reports 2020-2023
2023
1
4
2
2022
1
3
2
6
2021
3
6
2020
1
6
4
15
14
5
11
22
Substantiated
Unsubstantiated
Under investigation
Out of scope
49
NKT Cables Group Sustainability Report 2023
05 Governance
Business conduct
Management of relationships
with business partners
Key risks, impacts, and opportunities
Interaction with external partners - including, but
not limited to - customers and suppliers exposes
NKT to corruption, bribery, non-compliance
with trade controls, and other compliance risks
which could potentially cause a finanical impact,
damage the company's reputation or lead to
disqualification from business opportunities.
Management and approach
NKT is committed to operating an ethical busi-
ness and expects the same from its business
partners. NKT implements mandatory ethics
training of relevant new employees and annual
recertification of existing employees in addition to
enhanced training provided for specific regions
and functions. The training is provided in the
form of e-learning, policy documents, online and
face-to-face sessions where possible, to support
a culture of integrity and compliance with appli-
cable laws and to ensure that employees know
how to engage with business partners.
All business partners are expected to comply
with applicable laws, including export and
import regulations and to implement the prin-
ciples described in NKT's Code of Conduct in
their own businesses.
Business partners as well as employees are
encouraged to speak up if they experience
potential violations of the standards set out in
the Code of Conduct
Progress
■ NKT Code of Conduct being part of contrac-
tual requirements towards business partners.
■ Continued alignment of internal activities to
ensure compliance with export control and
trade sanctions.
■ Dedicated training of high-risk functions and
employees in high-risk regions.
■ Implementation of new compliance platform to
support screening activities.
Next steps
■ Expand and strengthen risk assessment
process.
■ Continued enhanced due diligence of agents
and distributors.
-15%
97%
95%
92%
■ Continued monitoring of medium and high-risk
third parties.
■ Continue to monitor countries of operation
in alignment with business growth and new
opportunities.
■ Developing links between social topics, such
as human rights, with business conduct.
>90%
77%
2020
2021
2022
2023
NKT Code of Conduct
Find method statements and comments for
non-financial data at page 64.
Target
Compliance and sanction screening
of all relevant business partners,
including those located in countries
that may be subject to sanctions.
90% completion rate on trade
sanctions compliance training and
recertification of relevant employees.
Completion rate for trade
sanctions e-training,
percentage share
50
NKT Cables Group Sustainability Report 2023
05 Governance
Business conduct
Corruption and anti-bribery
standards, the company offers training through
both e-learning modules and, where feasible,
face-to-face sessions.
Next steps
■ Maintain awareness, knowledge, and high
level of compliance through a compliance
training program and awareness activities.
Progress
■ Dedicated training of high-risk functions and
employees in high-risk regions.
■ Strengthen local ethical culture and level of
integrity by implementing local ownership and
accountability.
■ Continue development of self-help compliance
material and tools to all parts of the organiza-
tion.
■ Focus on competition law training.
■ Development of self-help compliance material
and tools to support employees in compliance
related areas.
■ Development of conflict-of-interest guideline to
supplement the Code of Conduct.
■ Strengthened governance framework.
Key risks, impacts, and opportunities
NKT acknowledges that any breach of ethical
values or practices has the potential to jeop-
ardize its operations. Working with business
partners in high-risk regions, NKT is exposed
to potential incidents of bribery, corruption, and
unethical business conduct. The company is
fully aware of these risks and adopts a proactive
approach to mitigate them in accordance with
the corporate commitment to adhere to all appli-
cable laws and regulations.
Management and approach
NKT has a zero-tolerance policy towards corrup-
tion and bribery. This commitment is evident
through a robust compliance program designed
to cultivate a culture of integrity and adherence
to applicable anti-bribery and anti-corruption
laws and regulations. NKT has established
comprehensive written policies and guidelines
governing various areas, including fair compe-
tition, the acceptance of gifts, entertainment,
hospitality, trade sanctions, conflict of interests,
confidentiality, and data privacy. To ensure that
all employees are well-versed in compliance
Target
Completion rate for e-training on
anti-bribery and anti-corruption
-21%
91%
92%
91%
>90%
70%
2020
2021
2022
2023
Completion rate for competition
law compliance e-training
-18%
96%
89%
88%
>90%
70%
2020
2021
2022
2023
An adjusted approach for handling training records,
prompted by technical changes to the learning
platform, impacted the number of employees who
had completed their e-training by year-end.
Find method statements and comments for non-
financial data at page 64.
51
NKT Cables Group Sustainability Report 2023
05 Governance
Business conduct
“Speak-up culture”
and resolution. As stated in the corporate human
rights policy, the whistleblower hotline extends
to workers and communities in the value chain
as an integral part of the commitment to ethical
business conduct and human rights. NKT has a
zero-tolerance policy on retaliation: suspicions
of misconduct that are reported in good faith will
not suffer from retaliation. Reports are investi-
gated in a timely fashion and confidentiality is
maintained throughout the process.
Progress
■ Monitoring of national implementation of EU
Whistle Blower Directive and local adjust-
ments to adhere to requirements.
■ Included questions on awareness of whistle-
blower hotline in annual employee survey.
Next steps
■ Continued awareness of hotline through
training and awareness campaigns.
■ Local initiatives to increase awareness among
blue-collar workers in particular.
There has been an increase in the number
of reports in 2023 following a dedicated
awareness campaign in 2022. The reports
have included, among others, concerns
about misuse of company assets, workplace
harassment, violation of confidentiality policy,
and conflicts of interest. All cases have been
investigated thoroughly, in accordance with
the whistleblower policy and procedures.
Where necessary, the appropriate action has
been taken to address the issues raised and
prevent recurrence.
Key risks, impacts, and opportunities
NKT is committed to fostering a culture of
openness, honesty, and integrity by asuming
full responsibility for the company’s actions and
promoting a strong Speak-Up culture. NKT
believes this is central to supporting ethical busi-
ness conduct and human rights. If stakeholders
are not comfortable raising concerns, NKT will
be unable to address potential issues appropri-
ately. Failure to address these issues can put
the company at risk of legal and reputational
damage and can also undermine trust among
internal and external stakeholders. Additionally,
unreported concerns put NKT at risk of unin-
tentionally supporting structures and working
conditions that are not in line with its Code of
Conduct.
Management and approach
Employees at all levels of the organization are
trained to identify and report potential concerns.
NKT has a dedicated whistleblower hotline open
to the public – not only employees and business
partners – for reporting of potential concerns,
ensuring a robust mechanism for early detection
■ Prompt and thorough investigation of reported
concerns with appropriate action taken to
avoid future wrong-doings.
Read more on the whistleblower hotline where you
also find a description of how NKT manages the
process and ensure anonymity.
2020
2021
2022
2023
Substantiated
Unsubstantiated
Under investigation
Out of scope
NKT whistleblower hotline
Find method statements and comments for non-finan-
cial data at page 65-66.
Target
Continued efforts to raise employee'
awareness about the whistleblower
hotline, including online and
face-to-face training and other
communication channels.
Number of whistleblower
reports 2020-2023
22
14
15
11
4
6
1
5
6
3
6
2
3
1
2
4
1
52
NKT Cables Group Sustainability Report 2023
05 Governance
Target
Ensure transparency in tax reporting.
Continue compliance with relevant
laws and regulations.
Find relevant data for
corporate tax in Section 2.5
in the Annual Report 2023.
Business conduct
Responsible tax practices
Key risks, impacts, and opportunities
NKT has a global supply chain with production
sites in multiple countries, and its products
and solutions reach a global audience. The
company operates across diverse tax jurisdic-
tions, entailing a heightened level of complexity.
Tax legislation allows for varying interpretations
and choices, and legislation and interpretations
tend to change over time, and at a different
pace from country to country. The recent rapid
development in tax legislation has significantly
increased the compliance burden for companies
of all sizes.
Management and approach
NKT has implemented a global corporate
tax policy characterized by responsibility and
sustainability, ensuring tax compliance and value
creation for all stakeholders.
NKT strives to minimize potential risks through
robust compliance processes and transparent
communication with tax authorities. In situations
where common practices or interpretations are
yet to be established, NKT follows the more-like-
ly-than-not principle and may seek advice from
tax advisors and tax authorities to establish a
reasonable interpretation. This principle dictates
that NKT will only adopt a position expected to
be upheld in court if challenged by tax author-
ities. Where legislation and practice allow for
different interpretations or choices, NKT will
adopt a tax position which must be justifiable,
defendable and in accordance with the NKT
Code of Conduct.
NKT does not operate in tax havens, and
it ensures that taxes are paid in the coun-
tries where value is created. Additionally, the
company seeks to benefit from tax incentives
in the countries where it is present. NKT is
committed to responsible tax practices, adher-
ence to international double taxation treaties,
EU regulations, relevant domestic, and OECD
guidelines.
Progress
■ Prepared for future extensive reporting
requirements (such as VAT and transfer
pricing) by further advancing the digital foun-
dation used for tax compliance and reporting.
■ Performed data gap analysis for the readiness
for OECD Pillar 2.
Next steps
■ Preparatory work for compliance with
upcoming legislation, such as CBAM.
■ Continue adherence to international double
taxation treaties, EU regulations and relevant
domestic and OECD guidelines.
■ Implement OECD Pillar 2 (minimum taxation).
NKT tax policy
53
NKT Cables Group Sustainability Report 2023
05 Governance
Business conduct
Supplier due
diligence
Key risks, impacts, and opportunities
NKT is exposed to risks in relation to supplier
compliance with legal and market require-
ments linked to health, safety, human rights,
climate, and environmental topics in addition to
quality and financial stability. From a sustaina-
bility angle, this program will need to adapt to
upcoming legislation, especially regarding the
Corporate Sustainability Reporting Directive
(CSRD) and the need to integrate value chain
information. The upcoming Corporate Sustain-
ability Due Diligence Directive (CSDDD), and
requirements in terms of human rights due dili-
gence integrated in multiple EU directives, local
legislation, and through increased customer
focus further underscore the need for adapt-
ability in the organization. Not being able to meet
these evolving legal and market requirements
poses a threat to business performance. NKT is
committed to staying abreast of these changes
and ensuring its practices align with both current
and future requirements.
Management and approach
NKT is continuously strengthening the ESG
requirements across its supply chain and
expects and requires business partners to do
the same as well as to fully comply with all appli-
cable laws, statutes and international regula-
tions, and the corporate Code of Conduct.
NKT works with approximately 5,500 suppliers
annually, and a segmentation model determines
the engagement level to manage supplier due
diligence and strategies. This is the first step
in the process of Supplier Lifecycle Manage-
ment (SLP). The segmentation exercise yields a
list of strategic suppliers (A+, A and B). Group
Procurement drives an aligned strategic supplier
due diligence approach to mitigate and mini-
mize exposure to health, safety, quality, financial
stability, human rights, climate and environ-
mental risks. As such, the overall corporate
due diligence process has sustainability as an
integral part of the exercise.
Target
Strategic suppliers (A+, A and B) are qualified
100%
2023
2022
2021
93%
96%
100%
97%
100%
81%
Share of strategic suppliers**** who have signed the Code of Conduct (%)
Share of strategic suppliers who have completed the qualification process (%)
Supplier audits conducted
+4
32
28
45
14
3
2020
2021
2022
2023
2025
Target
Find method statements and
comments for non-financial data
at page 65-66.
54
NKT Cables Group Sustainability Report 2023
05 Governance
Business conduct
Supplier Due Diligence Process
The corporate supplier due diligence process
includes a self-assessment questionnaire, which
is structured around five key topics:
■ General information
■ Compliance and Governance
■ Human Rights
■ Environment
■ Quality
These five topics combine to give a full over-
view of the suppliers’ performance in order to
become a qualified supplier for NKT.
Progress
■ Supplier Self-Assessment Questionnaire
structured into five key topics: General infor-
mation, Compliance and Governance, Human
rights, Environment and Quality. The supplier
responses are scored based on the answers in
each section.
Next steps
■ Develop further guidance on supplier due
diligence.
■ Continuously embed ESG topics into supplier
due diligence process.
Compliance to NKT’s
Code of Conduct
As a foundation for collabo-
ration, suppliers are required
to confirm compliance with
NKT’s Code of Conduct and
Human Rights Policy.
Supplier qualification
process
As part of NKT’s supplier
qualification process,
suppliers complete a self-
assessment questionnaire
which incorporates parame-
ters related to health, safety,
quality, human rights, climate
and environment.
Further material risk
related requirements
REACH (Registration, Eval-
uation, Authorization and
Restriction of Chemicals).
Responsible Mineral Initiative
(RMI) and connected Conflict
Mineral Reporting Template
(CMRT) if materials supplied
to NKT contain Tantalum, Tin
Tungsten or Gold.
Compliance risk review
A screening and monitoring
tool is used to check suppliers
against: sanction lists, watch-
lists and blacklists, politically
exposed persons (PEP)
and adverse media, etc. If a
non-compliance is detected,
the scope of the cooperation
must be reviewed and docu-
mented to NKT Compliance.
Validation
The supplier due diligence is
valid for two years and then
needs to be re-performed.
Supplier information
assurance
The supplier information
assurance is done through
an on-site supplier audit,
prioritized based on suppliers
strategic importance, risk and
quality parameters.
Financial stability
The financial stability of the
supplier is evaluated.
55
NKT Cables Group Sustainability Report 2023
06
Data sheets
56
Introduction
57 Environment
62 Social
65 Governance
67 EU Taxonomy
56
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Introduction to the data sheets
Reporting structure and principles
Scope: NKT uses operational scope for data collec-
tion for NKT Cables Group A/S and all subsidiaries.
NKT Cables Group A/S is headquartered in Brøndby,
Denmark. All its subsidiaries and sites in Germany,
Spain, UAE, Netherlands, Czech Republic, India,
Denmark, Norway, Poland, Australia, Sweden, Lithu-
ania, United King-dom, and United States are included
in the sustainability reporting.
Reporting period: Calendar year 2023 from
01.01.2023 until 31.12.2023 for all environmental,
social, and governance data. The data is reported
annually in the annual sustainability report.
Contact: Anthony Abbotts
VP, Head of Group Sustainability
info@nkt.com
Discontinued indicators:
New recruitments by type of employment and gender
Restatement of information:
Changes in reporting period:
NKT has aligned the reporting period for environmental
data with the financial year, necessitating a restate-
ment of all environmental KPIs from 2019 to 2022.
Environmental data in previous reporting periods have
been reported from the 4th quarter to the 3rd quarter of
the following year. The data for the current year, 2023,
has been reported according to the new period.
The restatement of environmental data for 2019 and
2020 utilized estimations to address data availability
limitations. Estimations and conversion factors were
derived from the financial performance of the respec-
tive periods and environmental performance trends
and patterns from 2021 to 2023.
Bioenergy and out-of-scope emissions methodology
N2O and CH4 emissions from the combustion of
bioenergy are allocated to scope 1 emissions. The
respective true CO2e emissions from the combustion
of bioenergy are stated as out-of-scope emissions.
Scope 3 Methodology
In 2023, changes were undertaken to NKT’s Green-
house gas (GHG) accounting methodology to improve
the quality of emissions data, in line with the GHG
Protocol. Methodology improvements include:
■ Spend-based emissions calculations updated to
utilize the most recent Supply Chain Greenhouse
Gas Emission Factors v1.2 by the U.S. Environ-
mental Protection Agency. This update replaces
the previous spend-based calculation methodology
based on the Quantis scope 3 evaluator tool which
was decommissioned on August 30, 2023. This
affects categories 1, 2, 4, 6, and 9.
■ The calculation for category 12 (end-of-life treatment
of products sold) is updated to utilize ecoinvent 3.8
end-of-life treatment emission factors. This update
replaces the previous calculation methodology
based on the Quantis scope 3 evaluator tool, which
was decommissioned on August 30, 2023.
Trend evaluation:
Is provided when yearly increase or decrease is more
than 5% compared to previous year.
Changes in business structure
affecting ESG performance:
No changes
■ Category 3 recalculated based on Scope 1 and 2
activity data, applying the average-data method
using average DEFRA emission factors for upstream
emissions per unit of consumption (well-to-tank) and
factors for trans-mission and distribution losses.
This update replaces the previous calculation meth-
odology based on the Quantis scope 3 evaluator
tool which was decommissioned on August 30,
2023.
To consistently account for these improvements,
Scope 3 estimates for previous years from 2019
through 2022 have been recalculated and restated.
This results in a change in total scope 3 emissions of
-3.0% in 2022. The following Scope 3 categories are
affected by the changes in methodology and have
accordingly been recalculated and restated:
■ Category 1: Purchased goods and services
■ Category 2: Capital goods
■ Category 3: Fuel- and Energy-Related Activities
■ Category 4: Upstream transport
■ Category 9: Downstream transport
■ Category 12: End-of-life treatment of products sold
57
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Environment
2023
2022
2021
2020
2019
Trend evaluation
Greenhouse gas emissions (GHG)
Scope 1
Total direct GHG emissions (Tonnes CO2e)
Scope 2
Total energy indirect GHG emissions - market-based
Electricity - market-based (Tonnes CO2e)
Heating -market-based (Tonnes CO2e)
Total energy indirect GHG emissions - location-based
Electricity - location-based (Tonnes CO2e)
Heating - location-based (Tonnes CO2e)
Scope 3 (Kilotonnes CO2e)
Category 1: Purchased goods and services
Spend-based
Mass-based
Category 2: Capital goods
Category 3: Fuel- and Energy-Related
Category 4: Upstream transport
Category 5: Waste
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transport
Category 11: Use of sold products
Category 12: End-of-life treatment of products sold
Total other indirect GHG emissions
Emissions from bioenergy (Tonnes CO2e)
Carbon Intensity (kgCO2e/EUR)
* Scope prior to 2020 included only production facilities.
14,270
13,386
14,214
14,848
15,601
224
42
182
42,587
41,658
929
2,232
772
1,460
19
4.8
84.1
0.3
1.1
8.7
21.2
5,484
267
8,123
1,490
0.008
192
26
166
38,753
37,933
819
1,457
248
1,209
8.9
4.5
34.7
0.2
0.6
7.6
12
8,644
254
10,423
1,902
0.009
1,337
0
324
40,387
39,444
944
1,415
284
1,131
6.3
4.7
32.5
0.2
0.3
7.2
8.6
4,984
269
6,727
642
0.012
13,367
13,072
294*
44,427
44,133
294
1,303
226
1,076
6
4.1
30
0.3
0.2
6.6
6.2
4,998
205
6,559
908
0.026
48,267
48,064
203
43,817
43,614
203
1,253
221
1,032
5.5
4.6
31.7
0.3
0.3
5.9
8.6
4,786
192
6,286
1,039
0.068
Total direct GHG emissions (Tonnes CO2e)
Increase driven by increased emissions from natural
gas, fuel consumption by NKT Victoria and methane.
Marked-based scope 2 emissions
Increase due to higher district heating consumption at
Swedish production sites, small increased electricity
consumption and reduction of renewable energy
share.
Location-based scope 2 emissions
Increase due to higher district heating consumption at
Swedish production sites and overall increased elec-
tricity consumption.
Scope 3 emissions
Total scope 3 emissions decreased from 2022 driven
by a reduction in category 11. Emissions of category
11 decreased due to a lower number of concluded
projects and thereby less km of cable considered in
category 11 calculations. All the remaining categories
increased likely due overall business growth in produc-
tion, investment activities and number of employees.
Emissions from bioenergy
Decreased as a result of reduced biofuel and biogas
consumption.
Carbon Intensity
Decreased primarily due to increased revenue in 2023.
58
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Environment
Energy consumption
Fuel for transportation of personnel and goods
Non-stationary sources: Diesel and fuel oil (MWh)
Non-stationary sources: Petrol (gasoline) (MWh)
Non-stationary sources: LPG (MWh)
Non-stationary sources: Renewable fuels (MWh)
Fuel for own stationary equipment
Natural gas (MWh)
Biogas (MWh)
Stationary equipment: Diesel (MWh)
Electricity and district heating
Electricity (MWh)
Share of renewable energy in electricity consumption (%)
District Heating & Cooling (MWh)
Energy Intensity (kWh/EUR)
2023
2022
2021
2020
2019
Trend evaluation
38,927
36,936
31,260
30,118
34,576
1,394
204
1,447
16,829
5,084
15
1,234
185
1,581
15,131
7,139
9
978
152
2,171
618
221
214
614
69
42
27,400
30,460
27,827
0
14
0
559
0
829
159,917
156,069
155,444
152,957
145,304
97.59
19,791
0.13
99.97
17,392
0.16
99.82
16,458
0.19
-
12,410
0.21
18
11,934
0.23
Non-stationary sources: Petrol (gasoline)
Increase due to increased petrol consumption in
Denmark.
Non-stationary sources: LPG
Increase due to increased LPG consumption in Czech
Republic.
Non-stationary sources: Renewable fuels
Decrease due to decreased biogas consumption at
Cologne site and reduced biofuel consumption at Karl-
skrona site
Natural gas
Increased as result of increased natural gas consump-
tion at Cologne site.
Biogas
Reduction due to decreased biogas consumption at
Cologne site.
Stationary equipment: Diesel
Increased due to higher diesel consumption for
stationary equipment at Karlskrona site.
District Heating & Cooling
Increased as result of higher district heating consump-
tion at Swedish sites.
Energy Intensity
Reduction of energy intensity primarily driven by
increase of revenue in 2023.
59
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Environment
2023
2022
2021
2020
2019
Trend evaluation
Waste and material utilization
Hazardous waste
Reuse, recycling and composting (Tonnes)
Recovery, including incineration with energy recovery (Tonnes)
Landfill and incineration (no energy recovery) (Tonnes)
Non-hazardous waste
Reuse, recycling and composting (Tonnes)
Recovery, including incineration with energy recovery (Tonnes)
Landfill and incineration (no energy recovery) (Tonnes)
Waste by treatment type
Reuse, recycling and composting (% of total waste volume)
Recovery, including incineration with energy recovery (% of total waste volume)
Landfill and incineration (no energy recovery) (% of total waste volume)
Material utilization
Material utilization rate (%)
Water
Water withdrawal
Municipal Water (m3)
Incidents
1,307
156
38
20,289
4,067
300
83
16
1.1
1,566
139
53
13,851
3,874
274
78
20
1.7
94.2
94.9
1,159
223
99
14,136
2,771
218
82
16
1.7
96
740
780
364
12,889
5,069
93
73
31
2
-
-
-
-
-
-
-
-
-
95.9
96.2
160,334
171,646
171,235
173,092
136,377
Environmental and climate impact incidents
0/0/7*
0/0/14*
0/0/9*
4.00
1.00
*
Environmental Impact Incident/Climate Major Incident//Climate Minor Incident
Waste by type
Overall waste generation increased likely due to
increased production output in 2023. Total volumes
of hazardous waste decreased and non-hazardous
waste increased.
Waste per treatment type
In line with waste & circularity strategy and respective
programs, the overall rate of waste diverted to ‘Reuse,
recycling and composting’ increased capturing waste
previously diverted to incineration. Incineration rate
and landfill decreased.
Water Consumption
Technical issues at Falun site in 2022 have been
resolved driving reduction of overall water consump-
tion in 2023.
60
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Methods and comments
– Environment
Greenhouse gas emissions:
Scope 1
Reporting is conducted based on the GHG Protocol
and covers direct NKT emissions included in the
scope of re-porting. Emissions are calculated based
on the emission factors applicable to the type of fuel.
CO2e emissions from biofuels are excluded from the
Scope 1 emissions and are reported separately as per
GHG Protocol. N2O and CH4 emissions from biofuels
are allocated to scope 1 as per GHG protocol.
The emission factors used for scope 1 emission
calculations are sourced from the UK Department for
Energy Secu-rity and Net Zero’s published ‘Green-
house Gas Reporting: Conversion Factors’ for the
respective year.
Scope 2
Reporting is based on the GHG Protocol and covers
indirect greenhouse gas emissions from the gener-
ation of power, cooling, heat, and steam purchased
and consumed by NKT. The calculation is conducted
based on the volumes purchased and uses average
emission factors based on the site location. Market
based emissions account for purchased renewable
energy and the respective Guarantees of Origin.
The emission factors used for scope 2 calculations
are sourced from the International Energy Agency, US
EPA eGrid, Sweden Energy and the UK Department
for Energy Security and Net Zero’s published ‘Green-
house Gas Reporting: Conversion Factors’ for the
respective year.
Scope 3
Reporting is based on the GHG protocol and accord-
ingly divided into 15 subcategories (Category 1-15)
of which categories 8, 10, and 13-15 are currently
determined as not applicable to NKT’s operations.
The remaining ten categories are partly calculated
through a spend-based approach and partly through
an average-data approach employing volume data. For
spend-based calculations, Supply Chain Greenhouse
Gas Emission Factors v1.2 by the U.S. EPA are used.
For average-data calculations, UK Department for
Energy Security and Net Zero (for the respective year)
conversion factors and ecoinvent 3.8 life-cycle emis-
sion factors are used.
■ Category 1 (partially), 2, 4, 6, 9 – Spend-based
calculations using U.S. EPA supply chain emission
factors covering direct and indirect GHG emissions
associated with the amount spent on a good or
service in the reporting year. Category 1 calcula-
tions are partially spend-based, representing 34.6%
of total category 1 emissions in 2023.
■ Category 1 (partially) – 65.4% of total category
1 emissions in 2023 are based on average-data
calculations where the mass of purchased materials
is multiplied with average life cycle (cradle-to-gate)
emission factors from the ecoinvent 3.8 database
for the respective material type.
■ Category 3 – Based on actual amount of fuel and
energy procured and consumed (Scope 1 & 2
activity data), employing the average-data method
using UK Department for Energy Security and Net
Zero (for the respective year) well-to-tank upstream
emission factors and factors for transmis-sion and
distribution losses.
■ Category 5 – Based on actual waste volume data for
the reporting year and UK Department for En-ergy
Security and Net Zero (for the respective year) emis-
sion factors for the respective waste and treatment
type.
■ Category 11 – Based on associated power losses
of the cables, per application and region, over their
lifetime using sales data on distance of sold cables,
power loss metrics from technical specifica-tions,
cable lifetime assumptions by EuropaCable and
ecoinvent 3.8 emission factors per voltage segment
and country.
■ Category 12 – Based on mass of sold products
iBased on mass of sold products in reporting
year employing assumptions on waste treatment
of ma-terials and material composition of sold
products based on procured materials. End-of-life
treatment emission factors are sourced from the
ecoinvent 3.8 database.
Emissions from bioenergy
Reporting is based on the GHG Protocol. CO2e
emissions from bioenergy incl. from diesel and petrol
with biofuel content are calculated and allocated as
emissions from bioenergy (out-of-scope) emissions).
The emission factors used for out-of-scope emission
calculations are sourced from the UK Department for
Energy Security and Net Zero’s published ‘Green-
house Gas Reporting: Conversion Factors’ for the
respective year.
CO2e emissions from natural gas consumption
Emissions are calculated based on the natural gas
consumption. The emission factors used for emission
calcula-tions are sourced from the UK Department
for Energy Security and Net Zero’s published ‘Green-
house Gas Reporting: Conversion Factors’ for the
respective year.
CO2e emissions from fossil fuel consumption related to
internal vehicles and stationary equipment
Includes CO2e emissions from diesel, petrol and LPG.
The emission factors used for emission calculations
are sourced from the UK Department for Energy
Security and Net Zero’s published ‘Greenhouse Gas
Reporting: Conversion Factors’ for the respective year.
SF6 leakage intensity
Calculated based on the total emissions from SF6
leakage by the annual revenue in market prizes (see
NKT annual reports).
Carbon intensity
Calculated based on the total scope 1 and 2 (market
based) emissions by the annual revenue in market
prizes (see NKT annual reports).
61
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Energy consumption
Includes all energy consumptions leading to genera-
tion of greenhouse gasses according to scope 1 emis-
sions from all production facilities including the NKT
owned cable-laying vessel.
Electricity and district heat
Include all heat, cooling and power purchased for own
consumption both for production and non-production
sites. Production sites use accounting methods based
on financial documentation. Where directly attributed
consumption data for non-production sites is not
available, estimations are based on the use per m2 and
consumption data of the entire asset.
Renewable electricity share
Share of renewable electricity (tracked through
guarantees of origin) of the total electricity
consumed by all NKT sites including production and
non-production sites.
Energy intensity
Calculated based on the total energy consumption
by the annual revenue in market prizes (see NKT
annual reports). All types of energy consumed within
NKT during the reporting period have been taken into
account in the calculation of the energy intensity.
Energy intensity related to stationary equipment
and facilities
Calculated based on the energy consumption of
stationary equipment and facilities by the annual
revenue in market prizes (see NKT annual reports).
Carbon intensity from natural gas
Calculated based on the total CO2e emissions related
to natural gas by the annual revenue in market prizes
(see NKT annual reports).
Waste by type and disposal method
Data on waste is collected based on invoices and
reports received from waste contractors, supple-
mented by site specific measuring methods. Waste is
reported for production sites producing more than 1%
of the total revenue-generating production in the year.
Waste diverted from disposal is allocated in the cate-
gory: "Reuse, recycling and composting".
Waste directed to disposal is categorized as
"Recovery, including incineration with energy
recovery", and "Landfill and incineration (no energy
recovery) ".
Material utilization
Calculated based on production volumes as a factor
for the scrap generated in relation to the product
produced. Material utilization is reported for produc-
tion sites producing more than 1% of the total reve-
nue-generating produc-tion in the year
Water withdrawal
Data collected based on invoices received from utility
companies, supplemented by site specific measuring
meth-ods where applicable. NKT receives third-
party water as potable water or process water, both
reported as municipal water. Other sources of water
are not applicable to NKT and are not listed as cate-
gories in the corporate disclosure. The third-party
water received is not withdrawn from water-stressed
areas and no respective category has been added to
the disclosure. Water withdrawal is reported for sites
producing more than 1% of the total revenue-gener-
ating production in the year. The data does not include
water withdrawal from Drammen, Norway.
Environmental incidents
Reported based on the HSE reporting principles.
Environmental Impact Incident (EII) means a discharge
or release of hazardous substances into the environ-
ment, or other negative impact on the environment or
stakeholders, have occurred. Discharges or releases
that have been decontaminated before causing harm
to the environment is not classified as an Environ-
mental Impact Incident but reported as an environ-
mental incident.
Incidents only impacting the climate is classified as
Minor or Major Climate Incidents, not as EII.
Incidents impacting climate are categorized as Minor
or Major based on the amount of emitted GHG
measured as CO2e. An emission less than 5% of NKT
Carbon Footprint Scope 1 (equals less than 500 ton
CO2e for NKT A/S) is classified as a Minor climate
incident.
62
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Social
2023
2022
2021
2020
2019
Trend evaluation
Own Workforce
In line with overall business growth, the number of
employees at NKT grew across type, region, and age.
The total number of employees in the Netherlands
surpassed the 50 FTE threshold and is therefore
included in 2023.
Total employees
Total female employees (FTE)
Total male employees (FTE)
Other (FTE)
Total permanent employees
Permanent female employees (FTE)
Permanent male employees (FTE)
Other (FTE)
Total temporary employees
Temporary female employees (FTE)
Temporary male employees (FTE)
Non-guaranteed hours employees, total
Non-guaranteed hours female employees (HC)
Non-guaranteed hours male employees (HC)
Other (HC)
Employees by country (FTE)
Czech Republic
Denmark
Germany
India
Netherlands
Lithuania
Poland
Sweden
United Kingdom
Other
Age distribution of employees
<30 (FTE)
30-50 (FTE)
>50 (FTE)
5,110
903
4,206
1
4,449
794
3,654
1
661
109
552
39
5
30
4
572
321
1,226
148
54
123
412
2,086
106
62
830
2,728
1,552
4,471
766
3,704
1
3,963
678
3,284
1
508
88
420
48
6
34
8
525
302
1,157
112
-
106
404
1,697
82
86
691
2,391
1,389
4,232
725
3,507
-
3,771
632
3,138
-
461
92
368
48
9
39
-
494
348
1,231
47
-
91
356
1,558
38
69
610
2,274
1,347
3,903
661
3,242
-
3,451
585
2,866
-
452
76
376
18
6
12
-
461
351
1,251
2
-
92
263
1,393
33
57
546
2,110
1,247
3,471
595
2,875
-
3,206
537
2,669
-
265
58
206
4
-
4
-
458
352
1,112
-
-
85
262
1,134
15
52
448
1,887
1,135
63
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Social
2023
2022
2021
2020
2019
Trend evaluation
Senior leadership*
Total senior leaders (FTE)
Total female senior leaders (FTE)
Total male senior leaders (FTE)
Gender diversity in senior leadership (%)
Average age (No.)
Nationalities in senior leadership (No.)
Employee attrition
Employee attrition rate (%)
Voluntary attrition rate (%)
Total employee attrition (FTE)
Total voluntary attrition (FTE)
Employee engagement
Employee Engagement Score (%)
Employees with performance and career development review (HC)
Health and safety**
Lost Time Incident Rate (Per 200,000 hours worked)
Total Recordable Incident Rate (Per 200,000 hours worked)
Lost Work Day Rate (Per 200,000 hours worked)
Fatal incident (No.)
Reported near misses (No.)***
Reported unsafe acts and conditions (No.)***
Senior leadership Includes the Group Leadership Team (GLT) and the Extended Leadership Team (ELT).
*
** 2022 data does not include Runcorn and Indian sites
*** In 2023 this KPI does not include Runcorn and Indian sites
78
14
64
18
50
15
9,9
7.5
437
332
76
1,831
1.01
1.52
18.2
0
428
5,510
78
15
63
19
49
15
13.7
9.5
543
375
80
10
70
13
48
14
11.5
7.9
433
297
80
14
66
18
49
12
8.8
6.3
304
218
73
1,530
74
1,204
65
1,030
0.59
1.13
8.2
0
436
4,100
0.57
1.19
12.0
0
328
2,269
0.41
1.20
11.6
0
532
2,723
53
8
45
15
-
10
13.6
8.0
434
257
58
858
0.73
-
21.3
0
259
1,922
Employee Attrition
Employee attrition decreased in relative and absolute
numbers. NKT runs multiple programs to attract, and
retain employees and talent, and to make NKT an
attractive workplace.
Employee Engagement
The number of employees with performance and
career development reviews increased with the overall
increase of employees at NKT.
Health & Safety
The rise in health & safety indicators reflects our
continued effort to strengthen incident detection and
reporting mechanisms. The updated health & safety
strategy responded to increased incidents and is a
testament to ensure the well-being of al employees.
64
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Methods and comments – Social
Employees by type, gender, and country
The metrics describing the NKT workforce are
based on a cut-off date on 31.12.2023 and therefore
describing characteristics of the workforce as is on
31.12.2023. The cut-off was extracted on 02.01.2024.
The values are reported in full-time equivalent (FTE) or
head count (HC).
“Total employees” describes active employees at NKT
including permanent and temporary employees.
“Permanent employees” are employees with an
unlimited employment contract with NKT, employees
without permanent contract but who hold an estab-
lished position in NKT's organizational chart, and
impatriates.
“Temporary employees” are employees with a contract
for a limited period of time.
“Total employees”, permanent and temporary
employees are reported in full-time equivalent.
“Non-guaranteed hour employees” are contingent
workers such as external freelancers, independent
contractors, consultants, or other outsourced and
non-permanent workers who are hired on a per-project
basis. Non-guaranteed hour employees are reported
in head count.
“male” and “other” employees. “Other” refers to the
following: all other genders than female and male
which an employee identifies with; that the employee
did not wish to disclose gender; or that the gender is
unknown.
“Employees by country” are reported for countries with
more than 50 permanent and temporary employees.
Permanent and temporary employees in countries
below 50 total employees are reported in “Other”. The
breakdown is reported in FTE.
The age distribution breaks down total employees in
three age brackets. The breakdown is reported in FTE.
Senior leadership
Includes the Group Leadership Team (GLT) and the
Extended Leadership Team (ELT). Senior leadership is
reported in full time equivalent (FTE), totals and gender
distribution.
Group Leadership Team (GLT) consists of Executive
Vice Presidents, CEO and CFO.
Extended Leadership Team (ELT) consists of Senior
Vice Presidents, Vice Presidents and Directors as well
as selected subject matter experts.
Gender diversity in senior leadership is the number of
female members of senior leadership divided by total
number of senior leadership positions multiplied with
100 (reported as percentage).
The employee gender breakdown describes the
number in full-time equivalent (FTE) of “female”,
Average age of senior leadership is the statistical mean
of age of all senior leadership members.
Nationalities in senior leadership is the count of unique
nationalities in the senior leadership group. The
number is by headcount.
Employee Attrition
Attrition is the same as employee turnover and
describes the departure of employees from the
organization for any reason (voluntary or involuntary),
including for example resignation, termination, death,
or retirement.
The attrition rates, both total and voluntary are calcu-
lated as share of total attrition or voluntary attrition of
permanent employees (see employees by type, gender,
and country for definition), reported in percentage.
more suitable tasks and/or reduction in working hours
beyond the day of occurrence.
Lost Time Injury (LTI)
A work-related incident with consequences of lost time
beyond the day of occurrence. Lost Time Incident Rate
(LTIR): The number of Lost Time Injuries (LTI) of NKT
employees, multiplied with 200.000 and divided by the
sum of worked hours.
Total Recordable Incident Rate (TRIR)
The combined number of Fatal Injuries, Lost Time Inju-
ries, Medical Treatment Injuries and Restricted Work
Cases, multiplied by 200,000 and divided by the sum
of worked hours.
Employee Engagement Score
Is a key metric of the yearly employee engagement
survey conducted in October 2023 and sent out to
all permanent and temporary employees at NKT. The
survey had a 84% response rate.
Employees with performance and career review
Include permanent office-based employees who
received a performance review in 2023 as part of the
internal performance and career review programs.
Medical Treatment Incident (MTI):
A work-related injury that is treated by a paramedic
or doctor (either on site or at a medical facility) not
resulting in lost time beyond the day of occurrence.
Restricted Work Case (RWC)A work-related injury
with the consequences of temporary assignment to
Lost Work Day Rate (LWDR)
The sum of lost workdays due to Lost Time Injuries
(LTI) multiplied by 200,000 and divided by the sum of
worked hours.
Fatal Injuries (FI)
A fatality as a consequence of a work-related injury.
Near miss (NM)
An incident which did not lead to a safety incident or
illness but which potentially could have done given a
slight shift in time or position.
Unsafe acts and conditions
Observed unsafe situations and behaviours that if not
corrected can cause harm and could result in inci-
dents, illness, and/or damage to material, property,
and/or environment.
65
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Governance
Ethics and integrity
Whistleblower
Total whistleblower cases
Concluded whistleblower cases
Whistleblower cases concluded as substantiated
Business conduct
Completion rate for e-training in Code of Conduct,
incl. anti-bribery and anti-corruption (%)
Completion rate for data privacy e-training (%)
Completion rate for competition law compliance e-training (%)
Completion rate for trade sanctions e-training (%)
Supplier due diligence
Supplier audits (No.)
Share of strategic suppliers*who have signed the Code of Conduct (%)
Share of strategic suppliers who have completed the qualification process (%)
Management systems
ISO 45001 certification, main production sites** (%)
ISO 14001 certification, main production sites** (%)
ISO 9001 certification, main production sites** (%)
Customer experience
CX Pro Performance (No.)
Satisfaction (No.)
NPS (No.)
Environmentally responsible (No.)
2023
2022
2021
2020
2019
Trend evaluation
Whistleblower
NKT ran an awareness campaign across the organi-
zation in 2022. The awareness campaign might have
contributed to the rise in reported whistleblower cases
in 2023.
Business Conduct Trainings
An adjusted approach of handling training records,
prompted by technical changes to the learning plat-
form, impacted the number of employees who had
completed their e-training by year-end.
Supplier quality audits
Increase due to onboarding of new suppliers
Share of strategic suppliers* who have signed
the Code of Conduct
Decrease due to increase of total number of strategic
suppliers
22
20
1
70
65
70
77
32
93
96
93
93
87
80
82
49
84
6
4
1
91
87
88
92
28
100
97
88
94
94
78
78
44
83
14
11
2
92
87
89
95
14
100
81
100
100
100
77
79
41
80
11
11
1
91
75
96
97
3
-
-
100
100
100
80
83
57
81
12
12
3
-
-
-
-
23
-
-
-
100
100
-
-
-
-
* Strategic suppliers (segmented as A+/ A/ B) represent 73% of the overall third party supplier spend. NKT has a total of 168 strategic suppliers
** Sites producing more than 1% of the total revenue-generating production in the year
66
NKT Cables Group Sustainability Report 2023
06 Data Sheets
Sustainability data
Methods and comments – Governance
Whistleblower cases
Whistleblower cases: The whistleblower hotline is in
place for both internal and external use. All cases are
assessed by the NKT Compliance function which
also determines whether a case is violating the Code
of Conduct or relevant legislation. The Compliance
Board, Audit Committee and the Board of Directors
of NKT, receive anonymized reports of the cases on
a regular basis. 15 out of the total number of cases
reported in 2023 fell outside the scope of the whis-
tleblower hotline. These predominantly pertained to
HR-related matters, including but not limited to indi-
vidual grievances and personnel management issues.
All cases relating to HR matters were referred to HR
who carried out investigations and ensured compli-
ance with relevant regulations and standards. 5 cases
were concluded as either substantiated or unsubstan-
tiated after an investigation and evaluation had been
conducted. 2 cases remain open as of 31.12.2023.
Compliance training
The Code of Conduct and Data Privacy training is
provided company-wide, while the Competition Law
and Trade Sanctions training is assigned to a selected
group of relevant employees with increased exposure
to business partners and high risk jurisdictions.
Suppliers signed the Code of Conduct
All strategic suppliers have gone through the regis-
tration process to confirm adherence to the Code of
Conduct. This means that 93% of the spend allocated
to strategic suppliers is compliant to the code accept-
ance by the suppliers.
Supplier audits
The supplier audit inspects a supplier's usage of
industry regulation practices, including the health and
safety and correct manufacturing processes. NKT
covers supplier audits in all areas such as quality,
health and safety, and sustainability, meaning that
supplier audits are done when relevant depending
on material risks, supply chain risks, or other issues
based on the risks and opportunities identified.
Supplier qualification process
Share of strategic suppliers that have gone through
the qualification process. 96% of the annual spend is
tagged to suppliers who have gone through the qualifi-
cation process with NKT.
Customer experience
Numbers are based on the results of the yearly
relationship survey conducted in October 2023.
Customers were asked to evaluate different state-
ments on a scale from 1 to 10. All other scores are
measured from 0 to 100.
CX Pro Performance
Main customer experience identification, contains 3
dimensions: Satisfaction, value for money, and willing-
ness to recommend.
Satisfaction
Shows the overall customer satisfaction
Net Promoter Score (NPS)
Shows the level of customer loyalty.
Environmentally responsible
Customers’ view on the extent to which extent NKT is
environmentally responsible.
67
NKT Cables Group Sustainability Report 2023
06 Data Sheets
EU Taxonomy
Turnover (voluntary report)
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
t
u
r
n
o
v
e
r
(
3
)
A
b
s
o
u
t
e
l
P
r
o
p
o
r
t
i
o
n
o
f
T
u
r
n
o
v
e
r
(
4
)
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
5
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
6
)
P
o
l
l
u
t
i
o
n
(
8
)
E
c
o
n
o
m
y
(
9
)
C
i
r
c
u
a
r
l
W
a
t
e
r
(
7
)
e
c
o
s
y
s
t
e
m
s
(
1
0
)
C
o
d
e
(
2
)
i
B
o
d
v
e
r
s
i
i
t
y
a
n
d
A.1. Environmentally sustainable activities (Taxonomy-aligned)
3.1. Manufacture of renewable energy technologies
CCM 3.1
349,042,574
13.6%
4.9. Transmission and distribution of electricity
CCM 4.9
489,815,721
19.1%
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
CCM 3.20
94,845,435
3.7%
933,703,731
36.4% 36.4%
933,703,731
36.4% 36.4%
-
0%
0%
-
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
3.1. Manufacture of renewable energy technologies
CCM 3.1
38,059,603
1.5%
4.9. Transmission and distribution of electricity
CCM 4.9
394,999,677
15.4%
EL
EL
N/EL
N/EL
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
Total
CCM 3.20
379,725,699
14.8%
EL
N/EL
812,784,978
31.7% 31.7%
1,746,488,709
68.0% 68.0%
0%
0%
820,682,454
32.0%
2,567,171,163 100.0%
Y
Y
Y
N
N
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
1
1
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
1
2
)
-
-
-
-
-
-
Y
Y
Y
Y
Y
-
W
a
t
e
r
(
1
3
)
Y
-
Y
Y
Y
-
P
o
l
l
u
t
i
o
n
(
1
4
)
Y
Y
Y
Y
Y
-
C
l
i
r
c
u
a
r
E
c
o
n
o
m
y
(
1
5
)
Y
Y
Y
Y
Y
-
i
B
o
d
v
e
r
s
i
i
t
y
(
1
6
)
Y
Y
-
Y
Y
-
a
l
i
g
n
e
d
(
A
1
.
)
o
r
-
e
l
i
i
g
b
e
l
(
A
.
2
)
t
u
r
n
o
v
e
r
,
y
e
a
r
2
0
2
2
(
1
8
)
S
a
f
e
g
u
a
r
d
s
(
1
7
)
i
i
M
n
m
u
m
P
r
o
p
o
r
t
i
o
n
o
f
T
a
x
o
n
o
m
y
C
a
t
e
g
o
r
y
(
e
n
a
b
l
i
n
g
a
c
t
i
v
i
t
y
)
(
1
9
)
C
a
t
e
g
o
r
y
t
r
a
n
s
i
t
i
o
n
a
l
a
c
t
i
v
i
t
y
)
(
2
0
)
E
E
E
E
-
-
-
-
-
-
T
Y
Y
Y
Y
Y
-
17%
12%
0%
29%
29%
-
0.1%
9.9%
0%
9.9%
39.2%
The primary sources of turnover contributing to the numerator of the turnover KPI in 2023 are taxonomy-aligned turnover in Solutions (838.8m) related to execution on high-voltage offshore wind and interconnector projects.
68
NKT Cables Group Sustainability Report 2023
06 Data Sheets
EU Taxonomy
CapEx (voluntary report)
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
P
r
o
p
o
r
t
i
o
n
o
f
C
a
p
E
x
(
4
)
C
a
p
E
x
(
3
)
A
b
s
o
u
t
e
l
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
5
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
6
)
P
o
l
l
u
t
i
o
n
(
8
)
E
c
o
n
o
m
y
(
9
)
C
i
r
c
u
a
r
l
W
a
t
e
r
(
7
)
e
c
o
s
y
s
t
e
m
s
(
1
0
)
C
o
d
e
(
2
)
i
B
o
d
v
e
r
s
i
i
t
y
a
n
d
A.1. Environmentally sustainable activities (Taxonomy-aligned)
3.1. Manufacture of renewable energy technologies
CCM 3.1
59,399,197
22.0%
4.9. Transmission and distribution of electricity
CCM 4.9
84,624,845
31.4%
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
CCM 3.20
4,385,410
1.6%
148,409,453
55.0% 55.0%
148,409,453
55.0% 55.0%
-
-
-
0%
0%
-
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
3.1. Manufacture of renewable energy technologies
CCM 3.1
3,993,980
1.5%
4.9. Transmission and distribution of electricity
CCM 4.9
45,665,245
16.9%
EL
EL
N/EL
N/EL
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
Total
CCM 3.20
17,557,545
6.5%
EL
N/EL
67,216,770
24.9% 24.9%
215,626,222
79.9% 79.9%
0
0
54,206,465
20.1%
269,832,687
100%
Y
Y
Y
N
N
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
1
1
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
1
2
)
-
-
-
-
-
-
Y
Y
Y
Y
Y
-
W
a
t
e
r
(
1
3
)
Y
-
Y
Y
Y
-
P
o
l
l
u
t
i
o
n
(
1
4
)
Y
Y
Y
Y
Y
-
C
l
i
r
c
u
a
r
E
c
o
n
o
m
y
(
1
5
)
Y
Y
Y
Y
Y
-
S
a
f
e
g
u
a
r
d
s
(
1
7
)
i
B
o
d
v
e
r
s
i
i
t
y
(
1
6
)
Y
Y
-
Y
Y
-
a
l
i
g
n
e
d
(
A
1
.
)
o
r
-
e
l
i
i
g
b
e
l
(
A
.
2
)
C
a
p
E
X
,
y
e
a
r
2
0
2
2
(
1
8
)
i
i
M
n
m
u
m
P
r
o
p
o
r
t
i
o
n
o
f
T
a
x
o
n
o
m
y
C
a
t
e
g
o
r
y
(
e
n
a
b
l
i
n
g
a
c
t
i
v
i
t
y
)
(
1
9
)
C
a
t
e
g
o
r
y
t
r
a
n
s
i
t
i
o
n
a
l
a
c
t
i
v
i
t
y
)
(
2
0
)
E
E
E
E
-
-
-
-
-
-
T
Y
Y
Y
Y
Y
-
32%
23%
0%
55.5%
55.5%
-
0%
19.1%
0%
19.1%
74.6%
The primary sources of Capex contributing to the numerator of the Capex KPI in 2023 are taxonomy-aligned investment in PP&E (128.0m), especially related to expansion of high-voltage production facilities in Solutions.
69
NKT Cables Group Sustainability Report 2023
06 Data Sheets
EU Taxonomy
OPEX (voluntary report)
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
P
r
o
p
o
r
t
i
o
n
o
f
O
P
E
X
(
4
)
O
P
E
X
(
3
)
A
b
s
o
u
t
e
l
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
5
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
6
)
P
o
l
l
u
t
i
o
n
(
8
)
E
c
o
n
o
m
y
(
9
)
C
i
r
c
u
a
r
l
W
a
t
e
r
(
7
)
e
c
o
s
y
s
t
e
m
s
(
1
0
)
C
o
d
e
(
2
)
i
B
o
d
v
e
r
s
i
i
t
y
a
n
d
A.1. Environmentally sustainable activities (Taxonomy-aligned)
3.1. Manufacture of renewable energy technologies
CCM 3.1
-3,071,803
9.1%
4.9. Transmission and distribution of electricity
CCM 4.9
-4,188,536
12.4%
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
OPEX of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
CCM 3.20
-1,095,641
3.3%
-8,355,980
24.8% 24.8%
-8,355,980
24.8% 24.8%
-
-
-
0%
0%
-
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
3.1. Manufacture of renewable energy technologies
CCM 3.1
-769,307
2.3%
4.9. Transmission and distribution of electricity
CCM 4.9
-5,550,903
16.5%
EL
EL
N/EL
N/EL
3.20 Manufacture, installation, and servicing of high,
medium and low voltage electrical equipment for electrical
transmission and distribution
OPEX of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. OPEX of Taxonomy-eligible activities (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy-non-eligible activities
Total
CCM 3.20
-4,386,536
13.0%
EL
N/EL
-10,706,746
31.8% 31.8%
19.062.726
56.6% 56.6%
0%
0%
-14,606,213
43.4%
-33,668,939 100.0%
Y
Y
Y
N
N
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The primary sources of OPEX contributing to the numerator of the OPEX KPI in 2023 are taxonomy-aligned maintenance of assets (7.1m), mainly in Solutions.
C
l
i
m
a
t
e
C
h
a
n
g
e
M
i
t
i
g
a
t
i
o
n
(
1
1
)
C
l
i
m
a
t
e
C
h
a
n
g
e
A
d
a
p
t
a
t
i
o
n
(
1
2
)
-
-
-
-
-
-
Y
Y
Y
Y
Y
-
W
a
t
e
r
(
1
3
)
Y
-
Y
Y
Y
-
P
o
l
l
u
t
i
o
n
(
1
4
)
Y
Y
Y
Y
Y
-
C
l
i
r
c
u
a
r
E
c
o
n
o
m
y
(
1
5
)
Y
Y
Y
Y
Y
-
S
a
f
e
g
u
a
r
d
s
(
1
7
)
i
B
o
d
v
e
r
s
i
i
t
y
(
1
6
)
Y
Y
-
Y
Y
-
a
l
i
g
n
e
d
(
A
1
.
)
o
r
-
e
l
i
i
g
b
e
l
(
A
.
2
)
O
P
E
X
,
y
e
a
r
2
0
2
2
(
1
8
)
i
i
M
n
m
u
m
P
r
o
p
o
r
t
i
o
n
o
f
T
a
x
o
n
o
m
y
C
a
t
e
g
o
r
y
(
e
n
a
b
l
i
n
g
a
c
t
i
v
i
t
y
)
(
1
9
)
C
a
t
e
g
o
r
y
t
r
a
n
s
i
t
i
o
n
a
l
a
c
t
i
v
i
t
y
)
(
2
0
)
E
E
E
E
-
-
-
-
-
-
T
Y
Y
Y
Y
Y
-
19.3%
13.4%
0%
32.7%
32.7%
-
0%
11%
0%
11%
43.7%
70
NKT Cables Group Sustainability Report 2023
06 Data Sheets
EU Taxonomy method statement
NKT is a European based turnkey provider of power
cable solutions and accessories. NKT has assessed and
deemed financial activities of 2023 both EU Taxonomy
eligible (activities contributing to the climate change
objectives) and taxonomy aligned (fully compliant). In
2023, there has been no significant changes in the
nature of financial activities compared to 2022.
NKT identified relevant business activities against the
EU Taxonomy screening eligibility criteria and taxono-
my-alignment under.
NKT is a member of the Task Force on Taxonomy of
the Europacable Sustainability Team. The taskforce
produced a taxonomy note in 2023 which attempts to
provide information on additional taxonomy elements,
i.e., alignment parameters, such as Technical
Screening Criteria. It also includes reporting templates
and regulatory mandatory requirements, necessary
for all cable companies in order to comply with the
regulation. In 2023, NKT utilized the jointly developed
information note as guidance.
NKT provides three taxonomy statements:
Eligibility
1.
For all the projects and products that relate to
manufactured cable systems for the renew-
able energy sector (wind turbines, photovol-
taic systems, and other renewable energy
applications, as well as products marketed
to the renewable energy sector) as per NACE
code C27.3 ‘Manufacture of wiring and wiring
devices’ - those financial activities have been
deemed eligible for activity 3.1 when they
comply with at least one of the below criteria:
■ Regulation (EU) 2020/852
■ Cables dedicated for a given renewable energy
■ Climate Delegated Act (Commission Delegated
■ Customers who are dedicated to renewable
Regulation (EU) 2021/2139)
■ Voluntary taxonomy reports NKT Cables Group A/S
energy
■ Statutory taxonomy report for NKT A/S
application
■ Complementary Climate Delegated Act (Commis-
sion Delegated Regulation (EU) 2022/1214)
Turnover, CapEx and OPEX are stated in EUR (euro).
and Photonics
■ Environmental Delegated Act (Commission Dele-
gated Regulation (EU) 2023/2486)
Abbreviations
CCM: Climate change mitigation
■ Amendments to the Climate Delegated Act
(Commission Delegated Regulation (EU) 2023/2485)
Three activities have been identified as eligible for NKT:
Y:
N:
Yes, Taxonomy-eligible and Taxonomy-aligned
activity with the relevant environmental objective
No, Taxonomy-eligible but not Taxonomy-
aligned activity with the relevant environmental
objective
■
■
‘3.1. Manufacture of renewable energy technologies’
EL:
Taxonomy-eligible activity for the relevant
objective
2.
‘3.20. Manufacture, installation, and servicing of
high, medium and low voltage electrical equipment
for electric transmission and distribution’
■
'4.9. Transmission and distribution of electricity’
N/EL: Taxonomy-non-eligible activity for the relevant
objective.
Enabling
Transitional
E:
T:
■ Projects and/or installations dedicated to
renewable energy
The substantial contribution criteria to climate mitiga-
tion for activity 3.1 is that the activity "manufactures
renewable energy technologies". This has been satis-
fied when the specific project or product satisfy one
of the above criteria. Economic activities allocated to
3.1 in 2023 include primarily projects to wind power
projects. Corresponding information on projects and
the respective customers are available publicly as
public announcements by NKT or its customers.
In 2023, the assessment of eligible economic
activities included activities under “3.20 Manu-
facture, installation, and servicing of high,
medium and low voltage electrical equipment
for electrical transmission and distribution”,
when compliant with the below criteria:
The manufacturing, installation, and servicing of
power cables and wires across various voltage
levels—high, medium, and low voltage—as well
as the provision of accessories for the transmis-
sion and distribution of electricity fall within the
eligible category. These activities explicitly comply
with the criteria outlined in section 3.20. However,
it’s important to note that cables used specifically
within buildings are not considered eligible for this
classification.
If the economic activity falls under 3.20 and 4.9,
the activity has been allocated to 4.9.
The financial activity has been deemed compliant
with the “Substantial contribution to climate
change mitigation” criteria when the eligible
activity encompasses the manufacturing,
installation, maintenance, repair, and technical
consulting services necessary for the operation
throughout the lifespan of the following compo-
nents:
■ Transmission and distribution current-carrying
wiring devices
■ Non-current-carrying wiring devices used for
wiring electrical circuits
These devices qualify if they contribute to
enhancing the proportion of renewable energy
within the system or improving energy efficiency.
The latter has been deemed satisfied when the
respective product has been sold to a market
(country) with a higher or equal share of renew-
71
NKT Cables Group Sustainability Report 2023
06 Data Sheets
able energy generation than the EU 2030 target
of 42.5% of renewable energy generation. Prod-
ucts sold to markets below this threshold have
not been included.
3.
Projects including both products and instal-
lation related to construction and installation
of interconnectors or enforcement of the grid
under the ‘4.9. Transmission and distribution of
electricity’ have been deemed eligible.
■
■
Specifically:
■ Engineering, procurement, construction and instal-
lation services to TSO & DSO
■ Products with installation services, dedicated to the
land transmission & distribution network as market
segments
The supply of equipment for electricity transmis-
sion and distribution networks—when the contract
does not include installation or project management
services—has been not considered eligible.
The financial activity satisfied the criteria for the
“Substantial contribution to climate change mitigation”
when complying with at least one of the following
criteria:
■
the system is the interconnected European system,
i.e. the interconnected control areas of Member
States, Norway, Switzerland and the United
Kingdom, and its subordinated systems.
the main purpose of the interconnector/power cable
system was to enable transmission of renewable
power between or within countries (based on the
specific project data) and if one of the countries'
carbon intensity of the grid was less than 100g CO2
e per kWh, the project was considered eligible.
Compliance with "Do no significant harm”
(DNSH)
The financial activities have only been included as
aligned, if they, among others, are complying with the
relevant “Do no significant harm” (DNSH) criteria’s for
the categories 3.1, 3.20, 4.9 and 7.6.
If projects within the same country or between two
countries where the grid carbon intensity was above
100g CO2 e per kWh, the projects were deemed not
aligned, unless project specific information is avail-
able to ensure that installed cable system carbon
intensity is below 100g CO2 e per kWh.
The assessment of the substantial contribution criteria
accounted for the type of project or product supplied.
In 2023, these comprised primarily interconnector
cables including installation services. Additionally,
countries with a carbon intensity more than 100g CO2
e per kWh have not been deemed eligible.
The contribution of the disclosed activities is on
climate change mitigation. The assessment concluded
no contribution of activities against the substantial
contribution criteria for climate change adaptation and
that none of activities are eligible under the other four
environmental objectives across turnover, Opex, and
CapEx as per Environmental Delegated Act (Commis-
sion Delegated Regulation (EU) 2023/2486).
NKT assessed DNSH criteria on:
(1) Manufacturing level
(2) Project and product level
The assessments are documented in either product,
project specific documentation and/or the integrated
management plans, processes and procedures for the
manufacturing sites. The respective activity has been
deemed only aligned if the activity satisfied the DNSH
criteria on manufacturing level and project and product
level.
Climate change adaptation:
NKT has diligently evaluated climate risks and asset
resilience across a spectrum of climate scenarios.
Comprehensive details can be found in the dedicated
climate risk section on pages 17-18 of the project
documentation.
Furthermore, NKT has conducted thorough assess-
ments at the manufacturing site level, focusing on
climate adaptation plans and measures. Notably, we
have exclusively included activities manufactured at
sites equipped with robust climate adaptation strate-
gies.
Sustainable use and protection of water and marine
resources:
NKT adheres rigorously to regulatory requirements in its
manufacturing operations ensuring responsible water
management. The company’s sites are situated away
from water-stressed areas. Project inclusion as part of
the taxonomy has been also contingent upon successful
environmental impact assessments (EIAs), providing
essential insights into potential water and marine
resource impacts. NKT or its clients are legally obliged
to conduct an environmental impact assessment.
Pollution prevention and control:
NKT diligently adheres to regulatory requirements
within its manufacturing operations, ensuring respon-
sible pollution prevention and control. The company’s
sites are strategically located to minimize pollution
impact. Project inclusion, as part of the taxonomy,
is contingent upon successful environmental impact
assessments (EIAs), which provide essential insights
into potential environmental impacts. Both NKT and its
clients are legally obligated to conduct thorough envi-
ronmental impact assessments
Protection and restoration of biodiversity and ecosys-
tems:
NKT diligently conducted an initial assessment aligned
with Science-based targets for nature and related
frame-works. Additionally, both NKT and its clients
adhere to legal obligations by conducting thorough
environmental impact assessments (EIAs) for many
72
NKT Cables Group Sustainability Report 2023
06 Data Sheets
projects. Only those projects that have success-
fully completed the assessment process have been
deemed aligned.
Read more on NKT’s approach to biodiversity on page
34.
Transition to circular economy:
NKT promotes the transition to a circular economy.
Key elements of this approach include:
■ High-Quality and Durable Cables: NKT designs and
manufactures cables to meet stringent quality and
longevity standards. Some cables often serve for
40 years or more. Additionally, NKT’s service and
installation division swiftly repairs cable systems,
minimizing disruptions and extending their opera-
tional lifespan.
Read more about NKT's transition to circular economy
on page 27-30.
The financial activities have been deemed not aligned
with the “Do no significant harm” (DNSH) criteria’s
when a project do not have the supportive documen-
tation to comply with the set criteria. This can be the
case when a project is new and thereby the necessary
documentation has not been developed yet.
Compliance with Minimum Safeguards
The Minimum Safeguards has been assessed on a
global company level with reference to the corporate
Code of conduct, the NKT human rights policy, related
policies, processes and governance. NKT aligns with
the UN Guiding Principles on Business and Human
Rights, as well as the OECD’s guidelines for multina-
tional enterprises. These principles extend to both the
internal operations and supply chain.
■ Waste and Circularity Strategy: NKT has imple-
Read more on page 43-44 and 48-54.
mented a strategic waste and circularity plan, with
a primary focus on increasing waste diversion to
recycling. By optimizing material usage and refining
recycling processes, NKT contributes to resource
efficiency while minimizing waste generation.
■ Recycled Content in Conductors: In alignment with
circular economy principles, NKT progressively
introduces cables with higher recycled content
in their conductors. This deliberate shift reduces
dependence on virgin resources and fosters
sustainable material practices.
Reporting Principles
The Turnover (revenue), CapEx and OPEX related to
taxonomy-aligned activities have been determined
based on the assessment of project/product eligibility
and alignment. Turnover, CapEx and OPEX that can
be linked to identified taxonomy-aligned activities are
classified as taxonomy-aligned and thereby included
in the numerator of the respective KPI. The proportion
of turnover, CapEx and OPEX that is associated with
taxonomy-eligible but not-aligned activities, i.e. those
eligible activities where NKT does not fulfil the tech-
nical screening criteria for taxonomy-alignment, has
been determined. The proportion of turnover, CapEx
and OPEX that is associated with taxonomy-non-eli-
gible activities, i.e. our activities that are not included in
the delegated acts, has been determined.
Double counting across activities has been avoided by
allocating a fixed base of Turnover, CapEx and OPEX
to the three material taxonomy-aligned activities or the
non-taxonomy aligned category. Applied ratios cannot
sum to more than 100%, which eliminates the risk
of double counting. Internal transactions have been
eliminated.
The share of taxonomy-aligned Turnover is calculated
as the Turnover from taxonomy-aligned projects and
products as a proportion of total Turnover. Turnover is
defined as ‘Revenue’ as found in the income statement
in the annual report and in accordance with NKT’s
revenue definition.
The share of taxonomy-aligned CapEx is calculated as
the investments related to assets, processes and tech-
nologies associated with taxonomy-aligned economic
activities as a proportion of total CapEx. The share
of taxonomy-aligned CapEx has been assessed to
categories per specific Business Line applying share
of taxonomy-aligned turnover per categories within
specific Business Line as allocation key. Most invest-
ments can and will be used to produce both aligned
and non-aligned projects/products, and NKT believes
that splitting between aligned and non-aligned turn-
over represents a good proxy for the split between
aligned and non-aligned activities. The majority of
NKT’s investments in 2023 have been within the Solu-
tions business line primarily related to existing produc-
tion facilities and technology, where a relatively larger
part of activities and turnover are taxonomy-aligned.
CapEx is defined as ‘investments in property, plant
and equipment’ and ‘Intangible assets and other,
net’ as reported in the cash flow statement in the
annual report plus the 2023 addition of ‘right-of-use
assets’ reported in the section on non-current assets
and liabilities in the annual report. It does not include
non-turnover related items. The nature of CapEx is
largely unchanged compared to 2022.
The share of taxonomy-aligned OPEX is calculated as
the OPEX associated with processes and activities
related to taxonomy-aligned economic activities as
a proportion of total OPEX. The share of taxonomy-
aligned OPEX has been assessed to categories per
specific Business Line applying share of taxonomy-
aligned turnover per categories within specific Busi-
ness Line as allocation key. Most costs can be asso-
ciated with both aligned and non-aligned projects/
products, and NKT believes that splitting between
aligned and non-aligned turnover represents a good
proxy for the split between aligned and non-aligned
activities. OPEX has been defined as direct non-capi-
talised costs that relate to research and development,
building renovation measures, short-term lease,
maintenance and repair, and any other direct expendi-
tures relating to the day-to-day servicing of assets
of property, plant and equipment that are necessary
to ensure the continued and effective functioning of
such assets. These cost items have been identified
within the line items ‘Staff Cost’ and ‘Other Cost’ in the
income statement in the annual report. The definition
73
NKT Cables Group Sustainability Report 2023
06 Data Sheets
of OPEX has been updated compared to 2022 as a
result of different interpretation of taxonomy regula-
tions. In 2022 OPEX was defined as non-capitalized
Staff Costs, Other Costs, and Other operating income
directly or indirectly associated with turnover related
activities. Costs of raw materials, consumables and
goods for resale have not been defined as OPEX in
2022 or 2023.
The updated OPEX definition provides better transpar-
ency on the actual cost related to research, develop-
ment, renovation measures, maintenance and repair
relating to servicing of assets of property, plant and
equipment that are necessary to ensure the continued
and effective functioning of such assets. Re-stated
2022 figures applying the new OPEX definition are
disclosed below. Absolute OPEX amounts are lower,
while shares of eligible and aligned activities show
only minor changes, since allocation principles are
unchanged.
2022 reported
2022 re-stated
2022 Opex
mEUR % of total
mEUR % of total
OPEX of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
OPEX of eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
OPEX of Taxonomy non-eligible activities (B)
Total (A+B)
161.8
33.6%
9.9
32.2%
55.6
263.7
481.1
11.6%
54.8%
100.0%
3.3
17.1
30.3
11%
56.3%
100.0%
74
NKT Cables Group Sustainability Report 2023
07
Appendix
75 GRI content index
77
Independent assurance statement
on selected ESG data
81 ESG ratings 2023
75
NKT Cables Group Sustainability Report 2023
07 Apendix
GRI content index
Statement of use
NKT has reported the information cited in this GRI content index for the full year 2023 (envi-
ronmental, social and governance data), with reference to the GRI standards. NKT refers to
the Annual Report 2023 (AR) and the Sustainability Report 2023 (SR).
GRI standard
Disclosure
GRI 1 used
GRI 1: Foundation 2021
GRI standard
Disclosure
Location
GRI 2: General
Disclosures 2021
2-1
2-2
2-3
2-4
2-5
2-9
2-10
2-11
2-12
2-13
2-14
2-16
2-17
Organizational details
Entities included in the organization’s
sustainability reporting
Reporting period, frequency and contact
point
Restatements of information
External assurance
SR p.56, NKT website
SR p.56, NKT website
SR p.56
SR p.56
SR p.75
Governance structure and composition
SR p.10
Nomination and selection of the highest
governance body
AR p.43-46
Chair of the highest governance body
AR p.47
Role of the highest governance body in
overseeing the management of impacts
SR p.10, AR p.49-53
Delegation of responsibility for managing
impacts
SR p.10, AR p.50
Role of the highest governance body in
sustainability reporting
AR p.50, SR p.10
Communication of critical concerns
AR p.22, SR p.48, p.65-66
Collective knowledge of the highest
governance body
NKT investor website
2-19
2-20
2-22
2-26
2-27
2-28
2-29
3-1
3-2
3-3
GRI 3: Material Topics
2021
Remuneration policies
Process to determine remuneration
Statement on sustainable development
strategy
Location
AR p.51-52
AR p.51-52
SR p.5-6, 11
Mechanisms for seeking advice and
raising concerns
Whistleblower hotline,
SR p. 51-52, 66
Compliance with laws and regulations
SR p.48, AR p.49
Membership associations
SR p.8
Approach to stakeholder engagement
SR p.12-13, 25-26, 49
Process to determine material topics
SR p.12-13
List of material topics
Management of material topics
SR p.12
SR p.17-55
GRI 207: Tax 2019
207-1
Approach to tax
Tax governance, control, and risk
management
207-2
207-3
Stakeholder engagement and management
of concerns related to tax
NKT Tax Policy
NKT Tax Policy
NKT Tax Policy
GRI 302: Energy 2016
302-1
Energy consumption within the organization
SR p.58
302-3
Energy intensity
SR p.58, 61
76
NKT Cables Group Sustainability Report 2023
07 Apendix
GRI content index, continued
GRI standard
Disclosure
Location
GRI 303: Water and
Effluents 2018
GRI 305: Emissions
2016
303-3
Water withdrawal
SR p.59, 61
305-1
Direct (Scope 1) GHG emissions
SR p.57
305-2
Energy indirect (Scope 2) GHG emissions
SR p.57
305-3
Other indirect (Scope 3) GHG emissions
SR p.57
305-4
GHG emissions intensity
305-5
Reduction of GHG emissions
GRI 306: Waste 2020
306-2
Management of significant waste-related
impacts
306-3
Waste generated
306-4
Waste diverted from disposal
306-5
Waste directed to disposal
SR p.57
SR p.19-26
SR p.27-33
SR p.59, 61
SR p.59, 61
SR p.59, 61
GRI 403: Occupational
Health and Safety 2018
403-1
Occupational health and safety
management system
SR p.37-38, 63-64
GRI 404: Training and
Education 2016
404-2
Programs for upgrading employee skills
and transition assistance programs
SR p.39-40
GRI 405: Diversity and
Equal Opportunity 2016
405-1
Diversity of governance bodies
and employees
SR p.62-64
77
NKT Cables Group Sustainability Report 2023
07 Apendix
Independent assurance statement on selected ESG data
SGS Poland’s assurance opinion
on KPIs in NKT Cables Group
A/S’s data sheets of NKT
Sustainability Report for 2023
Nature of the assurance/verification
SGS Poland (SGS Polska Sp. z o.o. - hereinafter
referred to as SGS) was commissioned by NKT
Cables Group A/S (hereinafter referred to as
NKT) to conduct an independent assurance
of the NKT Sustainability Report 2023 – Data
sheets (56-76) dated Feb 6, 2024 (hereinafter
referred to as the Report).
Intended users of this assurance statement
This Assurance Statement is provided with the
intention of informing all NKT’s Stakeholders.
Responsibilities
The information in the Report and its presenta-
tion are the responsibility of the Senior Leader-
ship Team and the management of NKT. SGS
has not been involved in the preparation of any
of the material included in the Report.
scope of verification (Data sheets, pages 56-76)
with the intention to inform all NKT’s stake-
holders.
■ ISAE3000 (Revised), Assurance Engagements
Other than Audits or Reviews of Historical
Financial Information;
of the assured part of the report, including
those responsible for producing and validating
KPI data
Assurance standards, type
and level of assurance
The SGS ESG & Sustainability Report Assurance
protocols used to conduct assurance are based
upon internationally recognised assurance
guidance and standards including the principles
of reporting process contained within the Global
Reporting Initiative Sustainability Reporting
Standards (GRI Standards) GRI 1: Foundation
2021 for report quality, GRI 2 General Disclo-
sure 2021 for organisation’s reporting practices
and other organizational detail, GRI 3 2021 for
organisation’s process of determining material
topics, its list of material topics and how to
manages each topic, and the guidance on levels
of assurance contained within the AA1000 series
of standards and/or ISAE3000.
The assurance of this report has been
conducted according to the following Assurance
Standards:
■ ISO 14064-3: 2019 Greenhouse gases —
Part 3: Specification with guidance for the
verification and validation of greenhouse gas
statements;
■ Remote site tours in Czech Republic (Velké
Mezir�íc� í), Poland (Warszowice and Knurów),
Denmark (Asneas) and Sweden (Alingsas)
production units
We are providing a limited level of assurance for
non-GHG data, using our protocols for:
■ Review of documentation of record to check
statements back to source.
■ evaluation of KPIs within the ESG scorecard
(against the ISAE 3000 (Revised).
We are providing a reasonable level of assur-
ance, using our protocols for:
■ evaluation of the GHG-related KPIs against the
ISO14064-3 Standard requirements.
Within the scope of assurance, the procedures
we performed included, but were not limited to:
■ Pre-assurance research
The assurance of this report has been
conducted according to the following Assurance
Standards:
Scope of assurance and reporting criteria
The scope of the assurance included evaluation
of quality, accuracy and reliability of specified
performance information as detailed below
and evaluation of adherence to the following
reporting criteria:
Reporting Criteria Options
1. GHG Protocol
2. ISO14064-1
3. GRI Standard (2021)
Our responsibility is to express an opinion on
the text, data, graphs and statements within the
■ SGS ESG & SRA Assurance Protocols (based
on GRI Principles and guidance in AA1000);
■ Interviews with the relevant managers and
directors with responsibility for each element
78
NKT Cables Group Sustainability Report 2023
07 Apendix
Specified performance information
and disclosures included in scope
Scope of the verification included independent
assurance of the NKT Sustainability Report
2023 – Data sheets (pages 56-76) dated Feb 6,
2024. NKT has defined the reporting period as
full calendar year 2023 for all social, governance
data; full calendar year 2023 and Q4 of 2022 for
environmental data (both GHG related and GHG
not-related).
Assurance methodology - non-GHG data
The assurance performed comprised the review,
evaluation of and providing comments on the
reporting processes as well as evaluating the
accuracy of the report content and indicators.
This included the following activities:
■ Desk study to identify material issues in
relation to the organisation, its sector, location
and operations, and stakeholders,
■ Interviews carried out with main persons
responsible on client’s side for data collection
and analysis (based in different locations; all
interviews conducted remotely via MS Teams)
to complete the evaluation of data collection
processes and accuracy of reported informa-
tion and data, including:
– Interviews with relevant personnel,
– Document and record inspection,
– Confirmation of information sources.
The procedures performed in a limited assur-
ance engagement vary in nature and timing
from, and are less in extent than for, a reason-
able assurance engagement. Consequently, the
level of assurance obtained in a limited assur-
ance engagement is substantially lower than
the assurance that would have been obtained
had a reasonable assurance engagement been
performed.
■ Evaluation of the NKT Sustainability Report
2023 against SGS ESG & SRA Assurance
Protocols (based on GRI Principles and guid-
ance in AA1000), Verification of GHG Inventory
to ISO 14064 and GRI standards 2021 and
ISAE 3000 in the level of limited assurance,
■ Planning of site visit (remote) and preparation
of bespoke checklists for evaluation of data
collection processes and accuracy of reported
data,
Assurance methodology - GHG related data
CO2 emissions from own operations were
verified at a reasonable level of assurance
according to standard EN ISO 14064-3: 2019
Specification With Guidance For The Validation
And Verification Of Greenhouse Gas Assertions,
to establish conformance with the requirements
of EN ISO 14064-1: 2018 and the WRI/WBCSD
GHG Protocol – A Corporate Accounting and
Reporting Standard (‘The WRI/WBCSD GHG
Protocol’), within the scope of the verification.
The materiality required of the verification was
considered by SGS to be below 5%, based on
the needs of the intended user.
The engagement included verification of emis-
sions from anthropogenic sources of green-
house gases included within the organisation’s
boundary and meeting the requirements of EN
ISO 14064-1: 2018 and the WRI/WBCSD GHG
Protocol. The organisational boundary was
established following the operational control
approach.
■ Description of activities: Manufacturing of High
Voltage Cables, Medium Voltage Cables, Low
Voltage Cables, Accessories and also Cable
Services and Technology Consulting
– Direct GHG emissions from stationary
combustion, mobile combustion, cooling
equipment, process sources;
– Indirect GHG emissions from imported
energy – purchased electricity, purchased
district heating, purchased district cooling
– Indirect Emissions List categories:
Category 1:
Category 2:
Category 3:
Category 4:
Category 5:
Indirect GHG emissions from
purchased good and services
Indirect GHG emissions from
capital goods
Indirect GHG emissions from
fuel and energy related
Indirect GHG emissions from
upstream transport
Indirect GHG emissions from
waste
Indirect GHG emissions from
business travel
Indirect GHG emissions from
employee commuting
Indirect GHG emissions from
downstream transport
■ Location/boundary of the activities: Produc-
Category 6:
tion sites in Europe (Czech Republic,
Denmark, Germany, Sweden, Poland, Norway,
United Kingdom) and also NKT Victoria
(vessel), warehouses, offices and others.
Category 7:
Category 9:
■ Physical infrastructure, activities, technologies
Category 11: Indirect GHG emissions from
and processes of the organisation:
■ manufacturing facilities, offices, warehouses,
vessel, transport and others
use of sold products
Category 12: Indirect GHG emissions from end
of life treatment of products sold
■ Types of GHGs included: CO2, N2O, CH4,
■ GHG sources, sinks and/or reservoirs
HFCs, PFCs, SF6
included:
■ Directed actions: none
79
NKT Cables Group Sustainability Report 2023
07 Apendix
Limitations and mitigation
Financial data drawn directly from independently
audited financial accounts has not been
checked back to source as part of this assur-
ance process (refers to EU Taxonomy KPIs).
Assurance process was performed remotely –
MS Teams tool and e-mails exchange was used.
Statement of independence
and competence
The SGS Group of companies is the world
leader in inspection, testing and verification,
operating in more than 140 countries and
providing services including management
systems and service certification; quality,
environmental, social and ethical auditing and
training; environmental, social and sustainability
report assurance. SGS affirm our independence
from NKT Cables Group A/S, being free from
bias and conflicts of interest with the organisa-
tion, its subsidiaries and stakeholders.
The assurance team was assembled based on
their knowledge, experience and qualifications
for this assignment, and comprised auditors with
expertise in ESG fundamentals, Social Auditing,
OHS Systems, Environmental Protection and
Carbon Footprint Assessments, Information
Security and Data Quality.
Findings and conclusions
Assurance/verification
opinion – non-GHG data
On the basis of the methodology described and
the verification work performed, nothing has
come to our attention that causes us to believe
that the specified performance information
included in the scope of assurance is not fairly
stated and has not been prepared, in all mate-
rial respects, in accordance with the reporting
criteria.
We believe that the organisation has chosen an
appropriate level of assurance for this stage in
their reporting.
Assurance / verification opinion
– GHG related data
On the basis of methodology described for
GHG data verification SGS concludes with
reasonable assurance that the presented CO2
equivalent assertion is materially correct and
is a fair representation of the CO2 equivalent
data and information, and is prepared following
the requirements of ISO 14064-1: 2018 and
the WRI/WBCSD GHG Protocol – A Corporate
Accounting and Reporting Standard.
NKT Cables A/S provided the GHG assertion
based on the requirements of ISO 14064-1: 2018
and the WRI/WBCSD GHG Protocol – A Corpo-
rate Accounting and Reporting Standard. The
GHG information for the period 01/01/ 2023 –
31/12/2023 disclosing gross emissions of 8 174
874 tCO2e (location based methodology), 8 132
511 tCO2e (market based methodology), 1 491
tCO2e (from biofuels combustion) are verified
by SGS to a reasonable level of assurance,
consistent with the agreed verification scope,
objectives and criteria.
We believe that the organisation has chosen an
appropriate level of assurance for this stage in
their reporting.
Quality and reliability of specified
performance information
During the verification process some examples
of good practice as well as some opportunities
for improvement in underlying processes were
identified and reported to NKT with the aim of
enabling a process of continual improvement
in collection and reporting KPI data. It may be
possible to roll out examples of good practice
to other KPIs, or parts of the business and the
opportunities for improvement identified may
be considered for implementation during future
reporting cycles:
Good practice:
■ Majority of KPIs are structured and well
supported by source data.
■ GHG-related data has expanded to include
scope 3 emissions.
■ Customer satisfaction data included in the
report are generated from well-managed
external systems.
■ Trainings-related data which is reported under
governance section is collected in internal
system and visible in real time; additionally,
information retained at the end of the reporting
period – end of December.
■ On-line platform used for data collection of
environmental data (Resource Advisor).
Opportunities for improvements:
Overall assurance process could be strength-
ened if for the next reporting cycles the process
would be started earlier or backed-up by pre-as-
surance activity (based on data sheets) – to
make sure all necessary changes are made in
advance of deadline dates.
■ KPIs source data and reporting process could
benefit from internal monitoring activity for
data collection tools and responsibilities – to
assure gaps occurring in data collection are
identified and corrected on a regular basis.
Adherence to GRI standards requirements
The report, NKT Sustainability Report 2023 –
Data sheets, complies with the requirements for
reporting with reference to the GRI Standards
set out in Section 3 of GRI 1. The significant
impacts are assessed and disclosed with refer-
80
NKT Cables Group Sustainability Report 2023
07 Apendix
ence to the guidance defined in GRI 3: Material
Topic 2021. The report has properly disclosed
information related to the company’s contribu-
tions to sustainability development.
As a result of GRI pre-assurance activity it was
confirmed that:
■ GRI Content index was published, including:
the title: GRI content index;
i.
ii. the statement of use;
iii. the title of GRI 1 used;
iv. a list of the reported disclosures from the
GRI Standards, including the disclosure
titles;
v. the titles of the GRI Standards that the
reported disclosures come from;
Adherence to GHG Protocol
and ISO14064-1:
Criteria against which a carbon footprint verifica-
tion assessment is undertaken are the require-
ments of ISO 14064 and GHG Protocol.
Signed:
For and on behalf of SGS Poland
Zbigniew Suchodolski
- Knowledge - Business Manager
Gdynia, Poland
Feb 8, 2024
vi. the location where the information reported
www.sgs.com
for each disclosure can be found;
■ Statement of use was provided (withing the
GRI content index) and included required
information: NKT has reported the information
cited in this GRI content index for the full-year
2023, with reference to the GRI standards.
NKT refers to the Annual Report 2023 (AR)
and the Sustainability Report 2023 (SR);
■ GRI notification: to be conducted after
publishing the report.
81
NKT Cables Group Sustainability Report 2023
07 Apendix
ESG ratings 2023
NKT is constantly increasing sustainability in all activities which was
recognized in ESG ratings provided by four independent agencies in 2023.
■ NKT A/S received an A- which is in the Leadership band
■ Rated Platinum with a score of 79 out of 100 in 2023 within the industry category “manufacture of
■ NKT is among the 14% of companies reaching Leadership level in the group
"Metal Products Manufacturing"
■ This places NKT among the top 1% of companies in total
wiring and wiring devices”
D-
D
C-
C
B-
B
A-
A
0 - 44
Bronze
45 - 53
Silver
54 - 65
Gold
66-72
Platinum
73 - 100
■ NKT is rated AA in the MSCI ESG Ratings assessment in 2023
■ As of December 2023, NKT A/S received an ESG Risk Rating of 20.8 from Morningstar Sustainalytics
and was assessed to be at medium risk of experiencing material financial impacts from ESG factors
CCC
B
BB
BBB
A
AA
AAA
Severe risk
40+
High risk
30 - 40
Medium risk
20 - 30
Low risk
10 - 20
Negl. risk
0 - 10
NKT A/S
Vibeholms Allé 20
DK-2605 Brøndby
Denmark
Company Reg: 6272 5214
T: +45 43 48 20 00
info@nkt.com
nkt.com
NKT is signatory to:
Science Based Targets initiative.
A commitment to become a net
zero emissions company.
United Nations Global Compact.
A pledge to implement universal
sustainability principles.
Europacable Industry Charter.
A commitment towards
superior quality.
d
e
v
r
e
s
e
r
s
t
h
g
i
r
l
l
A
3
2
0
2
©
.
p
u
o
r
G
T
K
N
f
o
k
r
a
m
e
d
a
r
t
a
s
i
M
T
T
K
N