Annual review 2021

Climate

Target for reducing emissions achieved – raising the bar going forward

The companies within Axel Johnson strive to use resources efficiently and in a way that reduces the impact on the environment. Priority areas are to reduce energy consumption in stores, offices and warehouses and to reduce emissions from our transport.

We reduce the environmental impact of transport through streamlining, in the form of improved route planning and filling levels, as well as through a gradual transition to a more diversified and greener vehicle fleet.

COMMON GROUP CLIMATE GOALS

In 2018, Axel Johnson developed a Group-wide climate goal, based on the GHG protocol, which categorizes emissions in different areas. * In 2020, we reached our interim target of a 25% reduction from the base year 2016, which was followed by continued positive development in 2021. Reasons for the reductions include more emission-efficient logistics and investments in energy efficiency in department stores and warehouses. Another area, which we don’t measure but where our companies have an impact, is to foster interaction through information and nudging our customers in order to impact climate change. These include Klubb Hemköp, which doubles the bonus on climate- and health-friendly products; KICKS, which promotes environmentally friendly modes of transport by making these a pre-selected alternative; and Dagab, which develops new vegetarian products for Axfood’s own brands.

 

TAKING RESPONSIBILITY FOR THE VALUE CHAIN

For commercial companies, the direct impact from our business is one we have immediate control over. At the same time, the vast majority of the value chain’s climate impact is in the production of the goods sold, and in some cases, in how they are used.

If we look ahead, it is our conviction that we also should take increasing responsibility for accounting for and reducing the climate impact of the products from other players that are sold within the framework of our business. As owner, Axel Johnson, like most of our companies, has begun the efforts of addressing the impact of goods sold and will set goals for this area as well.

New electric vehicles

Axfoods’ and Martin & Servera’s vehicle fleets are gradually switching to a larger share of biofuels and electrified trucks. In the fall of 2021, Martin & Servera signed an agreement with Volvo for the purchase of six heavy electric trucks, which was Volvo’s largest single order to date from a Swedish company. The quiet, electric and emissions-free trucks will be used in several stages, which is expected to reduce the total number of vehicles in Martin & Servera’s fleet. With electric trucks’ lower engine noise, there are greater opportunities to drive even in urban environments at night with reduced driving times and emissions as a result. Potentially, by utilizing a larger proportion of the hours of the day, an electric truck could thus replace several fossil-powered vehicles.

Sweden's biggest solar parks

With AxSol, Axel Johnson has a Group company where growth harmonizes with climate benefits. Other Group companies also invest in solar energy, on their own store and warehouse roofs and now also on a larger scale. During the fall of 2021, Martin & Servera and Alight built Sweden’s largest solar park, which went into operation at the beginning of 2022 and covers more than 40 percent of Martin & Servera’s electricity consumption. In 2021, Axel Johnson and Axfood entered into an agreement with Alight to establish two new parks, which will be Sweden’s largest, and more than doubles the total production of electricity from current largescale solar parks in Sweden. These facilities are still awaiting regulatory approval.