UPONOR

Jan. 8, 2024

Demystifying ESG and Its Significance in Uponor's Operations 

by Alex Gross

ESG, an acronym for Environmental, Social, and Governance, encapsulates a business's impact on society and the environment. It encompasses transparency in business practices and accountability in implementing initiatives guided by the ESG model. 

Businesses are increasingly emphasizing the integration of ESG principles into their operations. ESG's scope extends beyond environmental concerns, encompassing the people involved with the business, including employees, customers, communities, and the environment. It assesses how the business impacts these stakeholders. In today's world, ESG is a crucial consideration for all stakeholders, including investors. It represents a commitment to transparency regarding risks and opportunities, ensuring that the company maximizes its contributions to society. 

Environmental Considerations: The First Pillar of ESG 

Environmental factors, the first pillar of ESG, encompass air and water pollution, biodiversity, carbon emissions, climate change strategies, deforestation, energy efficiency, waste management, and water management in relation to Uponor's business. 

Social Responsibility: The Second Pillar of ESG 

Social factors, the second pillar of ESG, focus on employees, shareholders, supply chain partners, and communities. Relevant business factors include labor practices, equal-opportunity measures, human rights, community engagement, diversity, customer, and product responsibility. 

Governance: The Third Pillar of ESG 

Governance, the final pillar of ESG, addresses ethical leadership, accountability, data transparency, and organizational alignment. Relevant business factors include business ethics, compliance, data disclosures, executive compensation, shareholder democracy, risk management, and board diversity. 

Uponor's Commitment to Sustainability: Enabling Sustainability Through Products and Solutions 

Uponor's products and solutions foster sustainability. The company consistently develops integrated solutions and initiatives with the best possible environmental footprint to support customers and sustainability. Through Uponor's people-first initiative, the company continually implements new policies that contribute to a positive work environment and, through industry collaboration, brings value to the communities using its products. 

Uponor's ESG Initiatives: Maximizing Positive Impact, Minimizing Environmental Footprint, and Maintaining Strong Governance 

Uponor is continuously strengthening its existing commitment to sustainability and people-first business practices through initiatives in the following three categories: maximizing positive impact, minimizing environmental footprint, and maintaining strong governance. The company aims to achieve these goals by 2027. 

Maximizing Positive Impact 

Uponor's goals for maximizing positive impact include: 

  • Offering customers a sustainable alternative for 50% of its product portfolio
  • Covering 90% of product sales with Environmental Product Declarations (EPDs)
  • Incorporating sustainability targets into new research and development projects 

Minimizing Environmental Footprint 

Uponor's goals for minimizing its environmental footprint include: 

  • Reducing greenhouse gas (GHG) emissions from its operations by 75%
  • Reducing GHG emissions from its supply chain by 20%
  • Reducing energy intensity by 15% 

Maintaining Strong Governance

Uponor's goals for maintaining strong governance include: 

  • Achieving 100% coverage of employee Code of Conduct training
  • Ensuring that 90% of spend is covered by the Supplier Code of Conduct
  • Linking ESG targets to management incentives in both short-term and long-term initiatives 

Alignment with the United Nations Sustainable Development Goals (SDGs) 

In 2022, Uponor identified seven of the United Nations' 17 Sustainable Development Goals (SDGs) where the company's work can make a significant difference: 

  1. Gender equality
  2. Clean water and sanitation
  3. Decent work and economic growth
  4. Industry, innovation, and infrastructure
  5. Sustainable cities and communities
  6. Responsible consumption and production
  7. Climate action

Uponor contributes to these seven SDGs through its sustainable products and initiatives. As the business grows, Uponor aims to align with as many SDGs as possible to ensure the maximum positive impact its business can have on the environment. 

Uponor's dedication to ESG principles is unwavering, and the company’s initiatives demonstrate its commitment to sustainability and social responsibility. The efforts to maximize positive impact, minimize environmental footprint, and maintain strong governance position Uponor as a leader in ESG practices. As ESG continues to gain prominence, Uponor is well-positioned to reap the benefits of its commitment to ESG principles.