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NL Industries, Inc.

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FY2023 Annual Report · NL Industries, Inc.
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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.

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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.

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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.

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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.

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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.

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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
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