Stokke 2022 Transparency Act Statement
Stokke is hereby publishing its first statement in accordance with Norwegian Transparency Act for 2022. Please read below
Norwegian Transparency Statement
Stokke AS (hereinafter “Stokke”) as a Norwegian company in obligated to report and provide a statement in accordance with the Norwegian Transparency Act section 5 on its account of due diligence carried out in accordance with the OECD Guidelines for Multinational Enterprises.
As Stokke is reporting its financial statements in accordance with the Norwegian Accounting Act and is permitted to do so in the English language, this statement is also published in the English language.
This statement is provided on behalf of Stokke and all its subsidiaries.
2. About Stokke
Stokke, a renowned Norwegian company, is recognized worldwide for best-in-class solutions for children. Combining Scandinavian design with the ability to challenge the ordinary and make beautiful products that nurture family bonding. Our mission is to give children the best possible start in life, nurturing their self-reliance and confidence. With a history dating back over eight decades, Stokke remains committed to our Scandinavian heritage, craftsmanship and quality. The first product for children was launched in 1972 - the iconic Tripp Trapp® chair designed by Peter Opsvik. The chair is made in Europe and Stokke has sold more than 13 million chairs globally. Since 2014, Stokke has been owned by NXMH, a Belgian investment company specializing in technology investments. NXMH itself is owned by NXC, a South Korean holding company.
3. Our value chain
Stokke’s products are produced by independent manufacturing partners in 16 different countries worldwide. In total, Stokke has direct business relationships (first tier) with 29 suppliers and 86 percent of these have been a Stokke supplier for more than three years. With all our suppliers, Stokke targets long-term partnership with mutual transparency and predictability. Stokke conducts frequent visits to the suppliers focusing on continuous improvement benefiting both parties. There is transparency from our suppliers to the next Tier-levels and actions related to social responsibility as well as continuous improvement is frequently discussed. The manufacturing of Stokke’s wooden products is limited to Europe, while the production of textiles is carried out in China, India, Pakistan, and Turkey. Plastic injection and assembly are primarily situated in Europe, however for some products these activities take place in China and Taiwan.
4. Our work with the act
In the following, further details about how Stokke is working to fulfil the obligations of the Norwegian Transparency Act are described.
Stokke Member of Ethical Trade Norway (ETN)
Stokke places great value on fair practices throughout our supply chain and upholds a strong commitment to transparency and ethical business conduct. Social, environmental, ethical, and human rights are incorporated in business strategy, following OECD Due Diligence Guidelines for Responsible Business Conduct. Policies, including the Stokke Responsible Business Conduct and Supplier Code of Conduct, guide actions and are integrated in the management system and sourcing strategy. The Stokke Supplier Code of Conduct is signed early in the sourcing process with new suppliers, and Stokke actively communicates the sustainability strategy to them, emphasizing the increased focus on responsible business conduct throughout the supply chain. Since 2006, Stokke has been an active member of Ethical Trade Norway (ETN) and fulfilling the requirements for membership. Stokke has been reporting on an annual basis on actions and targets related to responsible business conduct to ETN for a period of 17 years. This partnership enables Stokke to continuously enhance its business practices in line with international standards.
Stokke Supplier Code of Conduct
Stokke adopted the Supplier Code of Conduct in 2009, which outlines our core principles for responsible business conduct. It is rooted in the UN and ILO conventions and provides the minimum criteria expected by all our suppliers. The foundation for this conduct is that the applicable legal framework in the region and site of production must be observed. In 2022, Stokke has continued to improve policy and practice that support business partners in adhering to the principles set in our Supplier Code of Conduct. As of 2022, 100% of Stokke’s first tier suppliers have received and accepted our Supplier Code of Conduct.
Stokke Policy for Responsible Business Conduct
Through the implementation of the Stokke Responsible Business Conduct policy, Stokke aims to assure all customers and business partners acknowledge and address any negative impact on society and the environment. The policy was formulated, presented, and approved by our Board of Directors in January 2022. It is also accessible to all employees.
Stokke has an anti-corruption policy that is outlined in both the Stokke Responsible Business Conduct and the Stokke Supplier Code of Conduct. All employees and suppliers are expected to comply with this policy. A mandatory e-learning module that all our employees must pass has been implemented since 2021.
5. Stokke’s work with due diligence
In line with the OECD guidelines, our company strives to proactively identify and assess any risks or potential adverse impact on people, society, and the environment. This evaluation encompasses not only our supply chain but also our business relationships. Our objective is to effectively manage and mitigate these risks to ensure responsible and sustainable practices throughout our operations. Stokke performs risk assessments on an annual basis to identify and assess any impact within the supply chain, ensuring active monitoring and evaluation of potential adverse effects on individuals, society, and the environment.
At an overall level, Stokke has implemented systems to collect and analyze data about our suppliers and supply chain, providing us with a comprehensive overview. Our products and key raw materials undergo detailed risk assessments. Stokke has a systematic approach to assessing risks in its supply chain, which includes two parts: a general risk assessment based the relevant country and industry risks, using information from the database Mvo Risco Checker (https://www.mvorisicochecker.nl/en). Secondly, an internal Stokke review of the specific supplier is carried out, incorporating data collected from various sources as a part of the review process:
a. Social audits performed by third party companies (frequency of audits depending on risk level identified);
b. Own visits and frequent follow-up (monthly to annual visits depending on the nature of collaboration);
c. Own knowledge of risk parameters; and
d. Deep-dive audits into the most salient issues of the relevant supplier.
The risk evaluation assigns a score to each supplier and highlights the most important issues that need to be addressed across our supplier portfolio.
By conducting risk assessments and actively monitoring potential risks, Stokke strives to ensure responsible and ethical practices throughout its supply chain, promoting the well-being and safety of workers involved in the production of its products. Stokke views its first-tier suppliers as system suppliers, responsible for managing sub-suppliers on behalf of Stokke. Close relationships are maintained with first-tier suppliers through frequent visits and collaborative efforts to drive continuous improvement across various aspects of the business.
From the 2022 annual risk assessments, Stokke identified Romania, Bulgaria, North Macedonia, China, Pakistan, India, Vietnam, Taiwan, and Turkey as countries with a higher risk profile for its supply chain.
1. Corruption: 17 of our 37 suppliers operate in countries with an elevated risk of corruption. These 37 operation sites account for 100% of sites in Stokke’s supply chain. There were no confirmed incidents of corruption in Stokke’s own operations or supply chain in 2022.
2. Child labor: Child labor is recognized as a potential risk in Romania, Pakistan, India, China, and Turkey. Stokke considers the risk of child labor in Romania to be low, given the industry sector in which it operates. Stokke maintains strong and long relationships with the suppliers in the other countries, conducting frequent on-site visits and implementing auditing schemes, which contribute to the low-risk perception of child labor for Stokke in these countries.
3. Environment - Climate impact: Producing and selling children products globally, Stokke acknowledge that our business is contributing to global warming and therefore possesses a risk for health and safety for both current and future generations. With ambitions for further growth, Stokke finds it essential to start taking action and have therefore prioritized climate actions as one of the salient topics to pursue from the 2022 risk assessment.
4. Environment – Deforestation: Due to the significant presence of wood in Stokke’s product range, Stokke wants to ensure that it is not contributing to deforestation and has therefore set this as one of the salient issues to address.
5. Stokke also assesses risks related to forced or compulsory labor, freedom of association, collective bargaining, and health and safety.
These areas have high risk scores in some of the countries Stokke operates within, but based on results from dialogue with suppliers, and deep dives into some of the areas in combination with the size of the business, Stokke has in 2022 concluded that these risks are not to be considered salient.
6. Stokke’s mitigation actions and plans during 2022
The outcomes of the risk assessment are addressed through implementing measures to cease, prevent, and mitigate any identified issues. The primary focus is on tackling the most significant negative impacts on people, society, and the environment as a priority. For the prioritized risks, actions are being set, both internally at Stokke, as well as with suppliers.
Based on the due diligence process, Stokke has in 2022 decided to focus on the most significant risks in its supply chain, namely A) wood supply and B) climate footprint. In the following this is described in more detail.
A) ASSESSMENT OF LOCAL RISKS IN WOOD SUPPLY CHAIN
Risks addressed: Environment – Deforestation, Corruption, Health, and Safety
Stokke acknowledges the substantial responsibility associated with wood product manufacturing and understands the significance of responsible forest management across the supply chain. Therefore, Stokke is prioritizing the protection of this valuable resource and ensuring that production practices do not contribute to deforestation, to support the health and safety of the workers in the supply chain and have measures in place to prevent corruption.
Objective for 2030: Map wooden supply chain to achieve full traceability back to forest and certification of all wooden products by 2030.
Objectives in 2023: Achieve FSC® certification for the Tripp Trapp® chair
Stokke has achieved the FSC certification for the Sleepi ™ portfolio, Stokke® Clikk™ and Stokke ® Steps™ high chairs.
Status: Stokke’s production of wood products is limited to Eastern Europe, where there are production sites in Bulgaria, North Macedonia, Romania, and Slovenia. In this context, Stokke has set a goal to create an overview of our wood supply chain up to forestry operations and have conducted a risk assessment of the wooden raw materials in our supply chain.
- Collaboration between Stokke AS and Soil Association Certification Limited (SA): A two-year project has been undertaken to assess the legality and sustainability of the Tripp Trapp® chair supply chain. In 2021, SA assessed the legality of wood sourcing carried out by our main partners, evaluating their compliance systems with the EU Timber Regulation (EUTR) and national legislation. Building upon this, in 2022 the focus was on identifying the actors in the supply chain, tracing timber back to its forest of origin, and creating supply chain maps with risk assessment and mitigation plans. The data collected were used to conduct detailed risk assessments of the three main Stokke suppliers. For each supplier, the risk assessments included identifying risks at the origin (non-certified forests) and the risk of losing traceability in the log yards or through sub-suppliers. As an outcome, the project delivered an overview of supply risks and timber origins, proposed a sampling regime, and actively collaborated with suppliers to establish documentation systems, provide training, and conduct audits on the implemented risk assessment systems.
- In 2022, Stokke has, with support from Soil Association, mapped the availability of FSC-certified materials in the supply chain for the Tripp Trapp® chair. As a next step in 2023, a 3rd party feasibility assessment is being conducted with the target to implement FSC for Tripp Trapp® chair by the end of the year. This mapping and certification process will be extended to our other products in the coming years, with the goal of all wooden products being certified by 2030.
B) CLIMATE FOOTPRINT OF STOKKE PRODUCTION
Risks addressed: Environment – Climate
Measuring carbon emissions is essential for Stokke as it provides us with an understanding of our environmental impact and enables us to identify areas that require improvement. To achieve meaningful progress towards reducing our environmental impact it is crucial for us to reduce greenhouse gas emissions resulting from our business and collaborate with suppliers, and partners to drive systemic change across the value chain.
Objective for 2030/2050: Following the requirements of the Science Based Targets Initiative (SBTi), Stokke has committed to:
1. Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030.
2. Reduce Scope 3 emissions by 25%from a 2020 baseline within the same time period.
3. Further, Stokke is committed to reducing absolute Scope 1 and 2 GHG emissions by 90% by 2050 from a 2020 base year.
4. Stokke also aims to reduce absolute scope 3 GHG emissions by 90% within the same time period.
Objectives 2023: Stokke will continue to reduce our carbon footprint in line with requirements set by SBTi, which means 12% annual reduction. The t goal is also to establish extensive action plans to secure the 2030-targets.
In 2020, Stokke commissioned an external consultant to calculate our first Corporate Carbon Footprint. This comprehensive mapping covered our entire business and served as the foundation for setting climate actions across our operations and supply chain. In 2022, ambitious short- and long-term emission reduction targets aligned with the Science-Based Targets initiative (SBTi) were established. Stokke measured carbon emissions from all our direct and indirect operations and developed a roadmap for reducing emissions. The primary focus areas for emission reduction are product design, manufacturing processes, and transportation. Stokke is committed to increasing the use of renewable electricity in manufacturing, incorporating lower emission materials like recycled or bio-based materials in products, and reducing emissions of inbound and outbound transportation.
7. Tracking implementation and results
Tracking the implementation of actions and results is essential to measure the effectiveness of the systematic approach and individual efforts in each stage of the due diligence process. This tracking provides insights into the company’s commitment to conducting thorough due diligence work.
The tracking and implementation of actions related to the most salient issues described above, is tracked by the Stokke Sustainability Manager, and reported to the Stokke Leadership Team and Stokke Board of Directors on a frequent basis.
 Further information on Science Based Targets can by found – https://sciencebasedtargets.org/
 GHG – Greenhouse Gas Protocol: Further explanation to Emission 1, 2 and 3 and the GHG Protocol can be found in the Stokke Sustainability report Stokke Sustainability Report 2022
This statement is approved and signed by the Board of Directors and the CEO of Stokke in June 2023.