Norwegian Transparency Act Statement 2024

Stokke, a renowned Norwegian company, is recognized worldwide for best-in-class products for children, including high chairs, strollers, nurseries, baby carriers, and more. Combining Scandinavian design with innovation, it creates premium solutions that support child development and foster family connection. Its mission is to empower children to thrive and explore their full potential. From launching award-winning innovations to evolving beloved classics, the company remains committed to delivering long-lasting value to families worldwide.

With a heritage spanning over nine decades, Stokke remains dedicated to its Scandinavian roots, craftsmanship, and uncompromising quality. Its journey into children’s products began in 1972 with the introduction of the iconic Tripp Trapp® chair, designed by Peter Opsvik. Made in Europe and considered a true design classic, Tripp Trapp® has found a place in more than 15 million homes worldwide and is featured in prestigious institutions such as MoMA in New York, the V&A in London, and Centre Pompidou in Paris.

Today, Stokke’s product portfolio includes a wide range of award-winning solutions designed to enhance daily life for children and their parents, at home and on the go. Signature products include the YOYO® stroller, Sleepi™ bed, Snoozi™ bassinet, Yoga™ bouncer and swing, Flexi Bath™, Limas™ carrier and the JetKids™ BedBox suitcase. Inspired by the early years, Stokke’s designs promote closeness and connection between parent and child.

Sustainability is a core value at Stokke. The company prioritizes the use of durable, high-quality materials to ensure its products are long-lasting, reducing waste and supporting a more sustainable future.

Since 2014, Stokke has been owned by NXMH, a Belgian investment company. NXMH itself is owned by NXC, a South Korean holding company.

Stokke’s products are produced by independent manufacturing partners in 14 different countries worldwide. In total, Stokke has direct business relationships (first tier) with 32 suppliers, and about 70 percent of these have been Stokke suppliers for more than three years. With all its suppliers, Stokke targets long-term partnerships with mutual transparency and predictability. Stokke conducts frequent visits to the suppliers focusing on continuous improvement benefiting both parties. There is transparency from the suppliers to the next tier levels. Actions related to social responsibility as well as continuous improvement are frequently discussed. The manufacturing of Stokke’s main wooden products is limited to Europe, while the production of textiles is carried out in China and India. Plastic injection and assembly are situated in Europe, China, and Taiwan.

Further details about how Stokke is working to fulfill the obligations of the Norwegian Transparency Act are described in detail in the section below:

Stokke as a Member of Ethical Trade Norway (ETN)

Stokke places great value on fair practices throughout its supply chain and upholds a strong commitment to transparency and ethical business conduct. Social, environmental, and ethical factors as well as human rights are incorporated in Stokke’s business strategy, following the OECD Due Diligence Guidelines for Responsible Business Conduct. Its policies, including the seminal Stokke Responsible Business Conduct (Policy for Responsible Business Conduct) and Supplier Code of Conduct (Stokke Code of Conduct_v3.1.pdf), are integrated into the management system and sourcing strategy as well as guide the company’s actions. New suppliers are required to sign The Stokke Supplier Code of Conduct early in the sourcing process, 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 fulfills the requirements for membership. Stokke has reported annually to ETN on its actions and targets related to responsible business conduct for the past 19 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 the company’s core principles for responsible business conduct. It is rooted in the United Nations (UN) and International Labor Organization (ILO) conventions and provides the minimum criteria expected to be enforced by all of the company’s suppliers. The foundation for this conduct is that the applicable legal framework in the region and site of production must be observed. Following many years of steady progress, Stokke continued in 2024 to improve policies and practices that support business partners in adhering to the principles set in the Supplier Code of Conduct. 100% of Stokke’s tier 1 suppliers have received and accepted the company’s 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 the Board of Directors in January 2022. It is also accessible to all employees.

Anti-corruption

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 employees must pass has been implemented since 2021.Stokke has a whistleblowing system with a confidential reporting hotline and web portal, managed by an independent third-party. This allows employees to report any concerns anonymously without fear of retaliation. In 2024, there were no confirmed incidents of bribery or corruption reported through these established reporting channels.

In line with the OECD guidelines, Stokke strives to proactively identify and assess any risks or potential adverse impacts on people, society, and the environment. This evaluation encompasses not only the supply chain but also the company’s business relationships. Stokke’s objective is to effectively manage and mitigate these risks to ensure responsible and sustainable practices throughout its 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.

Embedding responsible business conduct at Stokke involves developing strategies, plans, and relevant due diligence policies and guidelines that are supported and implemented by management. At the heart of Stokke's commitment to ethical business practices are the policies and principles outlined in the Stokke Responsible Business Conduct and the Stokke Supplier Code of Conduct. These foundational documents are integrated into the management systems and sourcing strategy, shaping the way Stokke conducts business both internally and throughout the supply chain.

Upon initiating partnerships with new suppliers, Stokke ensures early adherence to the Stokke Supplier Code of Conduct. Additionally, Stokke actively communicates its sustainability strategy to suppliers, emphasizing the commitment to responsible business practices throughout its supply chain.

The next phase involves identifying and evaluating the company's risks, as well as any actual negative impact on individuals, society, and the environment. This assessment encompasses the supply chain and business relationships. Stokke conducts annual risk assessments to identify and evaluate impacts within the supply chain and continuously strives to monitor and assess potential negative impacts on people, society, and the environment. Stokke integrates inherent and site-specific risk factors to assess potential vulnerabilities across the supply chain. Stokke’s comprehensive methodology empowers proactive risk management, ensuring responsible business practices companywide. The company collects and analyses data from audits and supplier visits to enhance the company’s risk assessment processes.

Stokke's products are manufactured by independent contractors across 14 countries globally, and the company maintains business relationships with a total of 32 tier 1 suppliers.

Stokke considers its tier 1 suppliers as system suppliers responsible for overseeing sub-suppliers on behalf of Stokke. Stokke maintains a close relationship with all tier 1 suppliers, involving frequent visits and collaborative efforts to continuously improve across various aspects of their joint business.

Stokke's risk assessment considers geographic factors, including country and/or region. Manufacturing primarily occurs in Europe (75%), China (15%) and Taiwan (10%). For each region, Stokke evaluates potential risks based on specific topics. Findings from audits are addressed with the suppliers and followed up with improvement plans.

The risk evaluation assigns a score to each supplier and highlights the most important issues that need to be addressed across the 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. From the 2024 annual risk assessments, Stokke identified Romania, Bulgaria, Slovenia, China, Vietnam, and Taiwan, as countries with a higher risk profile for its supply chain. Stokke is assessing the inherent risk in the supply chain using SEDEX, which is based on third-party data across 14 issue areas associated with specific countries and industries.

Out of these areas, 10 main areas have been considered relevant for Stokke:

1. Child labor: Child labor is recognized as a potential risk in Romania, Vietnam, and China, particularly due to country and sector-specific risks. Stokke's tier 1 suppliers did not employ any child workers during the last four years, as confirmed by audit reports within the reporting periods, with one minor exception where remediation was provided.
2. Forced and compulsory labor: Although systemic risks persist in China’s textile sector, no findings of forced or compulsory labor were identified through audits or supplier dialogues at either tier 1 or tier 2 levels.
3. Freedom of association: Challenges around freedom of association persist in several sourcing countries, notably China, Vietnam, and Romania. Stokke continues engaging with suppliers in order to emphasize the benefits of worker involvement for long-term commitment and workforce stability.
4. Discrimination: Discrimination risks have been identified in Vietnam, China, and Romania, though they are challenging to influence directly. Stokke's audits in this area have found limited specific information. The company remains committed to promoting fair treatment and aims to positively influence working conditions within these factories wherever possible.
5. Health and safety: Stokke's audit on “Health & Safety” identified mostly minor issues within Vietnam, Romania, and Slovenia. Continuous improvement measures were implemented together with suppliers.
6. Working Hours: Overtime management remains a key concern in China, Vietnam, Taiwan, Slovenia, and Bulgaria. China’s textile production sector is of particular concern. Deviations are regularly addressed through open dialogue and, whenever possible, joint improvement plans.
7. Regular employment: Audits indicate that most workers in China and Hungary, where this risk is flagged, have formal contracts and regulated conditions. Stokke maintains proactive and ongoing monitoring to ensure continued compliance.
8. Environment: Environmental audits show positive developments, including the use of renewable energy by several suppliers, accounting for a 52% share as of year-end 2024. No significant risks were identified at tier 1 level.
9. Corruption: Despite operating in regions with medium corruption risk, particularly China, no incidents of corruption were reported in 2024.
10. Wages: Wage-related issues such as insurance gaps and leave payment were identified in earlier audits. China and Hungary were flagged for this type of risk. Continued monitoring and reassessment are planned.

Overall, the priority risks identified refer to working hours, in particular overtime linked to forecasting inaccuracies, and health and safety, specifically personal protective equipment compliance in plastics manufacturing. No critical incidents were related to child labor, forced labor, or major environmental violations. Furthermore, Stokke reduced audit non-conformities by 33% in 2024, compared to 2023 (with 44 instances versus 66 instances in absolute terms). Key highlights of progress made in 2024 include launching forecasting training for suppliers to minimize overtime and an 8% reduction in total emissions year-on-year compared to 2023.

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. For the prioritized risks, actions are being set, both internally at Stokke, and in collaboration with suppliers.

Based on the due diligence process, during 2024 Stokke continued focusing 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. Furthermore, Stokke prioritizes supporting the health and safety of workers in the supply chain and having measures in place to prevent corruption.

Objectives in 2024:

Achieve FSC®-certification for the Tripp Trapp® chair.

Status 2024:

As of January 2024, all Tripp Trapp® chairs are produced exclusively using FSC®-certified wood, reinforcing Stokke’s commitment to sustainable forestry. These chairs are planned to be available from mid-2025.

This result was made possible due to the collaboration of the entire supply chain and building on the progress achieved in 2023, following a key development that made Stokke the first company to establish an FSC®-controlled wood supplier in North Macedonia. This was accomplished through a significant investment, ensuring that all sourced wood meets FSC® controlled origin standards.

Looking ahead, Stokke will continue its certification expansion, aiming for all wooden products to be FSC®-certified by 2030. Stokke has achieved the FSC® certification for the Sleepi ™ portfolio, the Clikk™ high chair, and the Snoozi™ Bassinet.

Objectives for 2025: Map the wooden supply chain to achieve full traceability back to the forest and ensure certification of all wooden products by 2025. In anticipation of the European Union Deforestation Regulation (EUDR), Stokke has made substantial progress toward compliance and now expects to meet this goal five years ahead of the original 2030 target.


B) CLIMATE FOOTPRINT OF STOKKE PRODUCTION

Risks addressed: Environment – climate

Measuring carbon emissions is essential for Stokke as it enables the company to understand its environmental impact and identify areas that require improvement. To achieve meaningful progress towards reducing its environmental impact, Stokke must reduce its greenhouse gas emissions, and collaborate with suppliers and partners to drive systemic change across the value chain.

Objectives for 2030/2050:

Following the requirements of the Science Based Targets initiative (SBTi)[1], Stokke has committed to the following reductions compared to its 2020 baseline:

1. Reduce absolute scope 1 and 2 Greenhouse Gas (GHG)[2] emissions
by 42% by 2030.

2. Reduce scope 3 emissions by 25% within the same time period.

3. Further, Stokke is committed to reducing absolute Scope 1 and 2 GHG emissions by 90% by 2050.

4. Stokke also aims to reduce absolute scope 3 GHG emissions by 90% within the same time period.

Status 2024:

Stokke achieved a further 8% reduction in total greenhouse gas emissions compared to the previous year, including a 14% reduction in scope 2 and an 8% reduction in scope 3 emissions.

Objectives for 2025:

Stokke will continue to reduce its carbon footprint in line with requirements set by SBTi. To support its 2030 targets, Stokke has implemented measures to localize production and warehousing in key regions, thereby reducing transportation distances from factory to consumer.

Tracking the implementation of actions and results is essential for measuring the effectiveness of both the systematic approach and individual efforts at 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.

This statement is approved and signed by the Board of Directors and the CEO of Stokke in June 2025.