5. Responsibility

Accountability within the company’s management with regard to sustainability is disclosed.

All activities under the sustainability agenda are centrally organized by Fenix Outdoor and implemented under a common framework by individual brands and entities. This allows the responsible managers to identify the appropriate individual approach and goal setting. The speed of development and the focus of the entities within Fenix Outdoor Group vary but all follow the same direction. The parent company Fenix Outdoor structures the sustainable sourcing, manufacturing, and product distribution. The brands focus on engaging their consumers through their responsibilities for product design, marketing, retail, and sales. In all these endeavors sustainability is a guiding principle. 

For more detailed information see CSR Report 2018, pp. 4-7.

6. Rules and Processes

The company discloses how the sustainability strategy is implemented in the operational business by way of rules and processes.

All Fenix entities are 1st obliged to follow the compliance rules and the Fenix Way and 2nd are connected through regular meetings, trainings and conferences aligning them with the overall Fenix strategy.

During 2018, we focused on the improvement of our social compliance system and strengthened the partnership with Elevate. We hired a new person focussing on Social Compliance Management and the different brands on CSR related matters as part of the CSR team on Fenix level.  We conducted social compliance audits at our own facilities and production sites and were audited by the Fair Labor Association. This year we were granted accreditation of our social compliance system.

We also hired a person taking care of our energy and environmental management as member of the CSR team on Fenix level focusing on our operational set-up and to integrate these topic in daily buisness even further.

By the end of 2018 about 95 (2017: 95,6 %) of our suppliers had signed the code, according to data from four brands and all Tier 1 suppliers.

7. Control

The company states how and what performance indicators related to sustainability are used in its regular internal planning and control processes. It discloses how suitable processes ensure reliability, comparability and consistency of the data used for internal management and external communication.

On each of our fact sheets an overview on those indicators most relevant for our four cardinal managerial areas is given including 2020 goals and achievements (compared to baseline or previous year).The priorities under each cardinal direction may, however, vary from year to year.

Reference guideline remains our Fenix Way, which captures the strategic approach to sustainability and our ambitions. We defined a KPI for each of our sustainability targets which are monitored by the CSO and the responsible CEO. KPI's include the amount of CO2 emissions per turnover, the number of stakeholder meetings, or the number of incidents regarding health and safety.

For more detailed information see CSR Report 2018

Through gradual checks by our financial auditors we currently assess the robustness and consistency of our data. We are also assessing IT-based tools to ensure a continuous and unbiased data gathering exercise.

Key Performance Indicators to criteria 5 to 7

Key Performance Indicator GRI SRS-102-16: Values
The reporting organization shall report the following information:

a. A description of the organization’s values, principles, standards, and norms of behavior.

Our corporate values and principles are mapped out in our Fenix Way (pp. 27 - 37). A revision of the document is foreseen in 2018 in order to reflect the enhanced professionalization of our ethical efforts.

8. Incentive Systems

The company discloses how target agreements and remuneration schemes for executives and employees are also geared towards the achievement of sustainability goals and how they are aligned with long-term value creation. It discloses the extent to which the achievement of these goals forms part of the evaluation of the top managerial level (board/managing directors) conducted by the monitoring body (supervisory board/advisory board).

Fenix has not yet integrated sustainability goals into the incentive schemes. Currently, different possible options to establish incentive systems in the future are being discussed.

Key Performance Indicators to criteria 8

Key Performance Indicator GRI SRS-102-35: Renumeration policies
The reporting organization shall report the following information:

a. Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
i. Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses, and deferred or vested shares;
ii. Sign-on bonuses or recruitment incentive payments;
iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

b. How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics.

for compensation: please, refer to page 36 of CSR Report 2018.

SHAREHOLDING OF SENIOR EXECUTIVES AS

PER 31.12.2018 (31.12.2017)

Martin Nordin, Executive Chairman
18 300 000 A-shares
and 242 568 B-shares (272 568 B-shares)

Susanne Nordin, Member of the board
20 000 B-shares (20 000 B-shares)

Sven Stork, Member of the Board; Mats Olsson, Member of the Board; Ulf Gustafsson, Member of the board; Rolf Schmid, Member of the Board
All no shares (All no shares)

Sebastian von Wallwitz, Member of the Board
1 000 B-shares (no shares)

Alex Koska, President
1 000 B-shares (1 000 B-shares)

Martin Axelhed, Vice President
6 500 B-shares (6 500 B-shares)

Henrik Hoffman, Vice President
10 250 B-shares (10 250 B-shares)

Nathan Dopp, Vice president
1 200 B-shares (1 200 B-shares)

Thomas Lindberg, CFO
1 100 B-shares (1 100 B-shares)

Marcel Gerrits, Global Supply Chain Director
No shares

Key Performance Indicator GRI SRS-102-38: Annual total compensation ratio
The reporting organization shall report the following information:

a. Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

This data is not provided according to the indicator. See page 36 of CSR Report 2018. the ratio to the average salary level lies at about 13:1; a ratio between the highest-paid individual(s)’ pay rise and the average staff pay rise would be 0,9:1

9. Stakeholder Engagement

The company discloses how the socially and economically relevant stakeholders are identified and integrated into the sustainability process. It states whether and how an ongoing dialogue takes place with them and how the results are integrated into the sustainability process.

Fenix Outdoor has open dialogues with civil society groups, namely those from the environmental and human rights side on selected topics. We partner in projects or explore best-practices and benchmarks for the outdoor industry.

In May 2017, we held our second Fenix Outdoor Stakeholder Roundtable. Experts and interested groups from various countries met in Stockholm to discuss Fenix Outdoor’s sustainability approach and agenda. It was appreciated that Fenix does not try to over-impress or over-communicate and gives a realistic and honest picture of where we stand; there was also acknowledgement of the diversity of areas we cover. Our retail entities and some brands are interacting more and more with various stakeholder groups. Be it through systematic surveys, social media, live chats or direct customer and supplier interaction, the sustainability agenda is becoming increasingly important.

For more detailed information see CSR Report 2018, p. 7

We identified our interest groups by the following guiding questions:
• For whom are we responsible?
• Who is directly or indirectly affected by our activities or their consequences?
• Who can influence or decide about our business endeavor?
• With whom do we want to build long-lasting relationships?

Based on these questions we have identified various stakeholder groups including NGO's, end-consumers, suppliers, business partners etc.

Key Performance Indicators to criteria 9

Key Performance Indicator GRI SRS-102-44: Key topics and concerns
The reporting organization shall report the following information:

a. Key topics and concerns that have been raised through stakeholder engagement, including:
i. how the organization has responded to those key topics and concerns, including through its reporting;
ii. the stakeholder groups that raised each of the key topics and concerns.

Please refer to the Materiality Matrix on page 8 of CSR Report 2018

10. Innovation and Product Management

The company discloses how innovations in products and services are enhanced through suitable processes which improve sustainability with respect to the company’s utilisation of resources and with regard to users. Likewise, a further statement is made with regard to if and how the current and future impact of the key products and services in the value chain and in the product life cycle are assessed.

Sustainability efforts shall become visible to our customers and reflect in our products we offer on the markets. The compilation in our annual CSR Reports is neither holistic nor exhaustive but it gives some indication, which route we have taken on our path to sustainability in each year. We are member to the Sustainable Apparel Coalition and Textile Exchange and, hence, are working and apply the know-how shared through these organizations. Our suppliers actively use teh FEM and support us in developing new products. They use and suggest innovative new production ways/measures. In addition, we cooperate with innovation partners, e.g., in the fabric supply or chemical industry.

The materials we use and how we produce has a major effect on the sustainability of our products. As such, Fjällräven aims to establish best practice regarding animal welfare and full traceability. In those respects, our ‘Down Promise’ and the ‘Traceable Wool Project’ are held in high regard. In 2017, Fjällräven began using recyclable wool and we focus on ensuring our material is completely traceable in terms of its origin. One major step in this direction is the story of Fjällräven's recovered wool. Our product development and innovation processes demand to take adequate sustainability aspects into consideration (e.g.; new materials in textile, energy efficiency in stoves, new packaging for products, new sustainability screening for products in stores; no plastic bags in stores, new interior design guidelines etc.)

For more detailed information see CSR Report 2018, pp. 7-8, 18-19, 31.

Key Performance Indicators to criteria 10

Key Performance Indicator G4-FS11
(report also in accordance with GRI SRS): Percentage of assets subject to positive and negative environmental or social screening. Link(Note: the indicator should also be reported when reporting to GRI SRS)

Not available. Fenix Outdoor has no financial assets but reinvests in expansion through the acquisition of additional outdoor brands.