The essentials in view
Alongside product development, quality, innovative production technology and cost efficiency, sustainability is one of the most important factors in ASSMANN's success. The high importance of the topic within the company also reflects the fact that we see sustainability as a dynamic process from the outset – one that is influenced by a variety of factors. Accordingly, we attach great importance to continuous dialogue with our stakeholders, through which we define, develop and, if necessary, adjust specific sustainability targets that can be validated.
One valuable tool for identifying and evaluating relevant topics and expectations from internal and external stakeholders is the materiality analysis we prepared in advance of this report. The internationally recognised methodology creates a common basis for discussion, thus providing a clear overview of opportunities and risks, expectations and the material sustainability topics – both from an internal perspective and from the point of view of external stakeholders.
Identifying stakeholders
Building on the materiality analysis of the 2020 Sustainability Report, we focussed on three stakeholder groups in the runup to the current report:
- CUSTOMERS AND LEGISLATORS: At their heart, all of ASSMANN’s business activities are focused on the needs of its customers, which is why this group is weighted appropriately in the assessment. The main focus here is on specialist retail partners as a key component of our sales strategy. As the consideration of and corresponding alignment with legal regulations is and will remain fundamental, legislative institutions and organisations are also included in this group.
- EMPLOYEES, WORKS COUNCIL, SUPPLIERS, SOCIETY: At ASSMANN, our employees are the key factor in shaping the company's processes. Together with them, we develop creative and customer-orientated solutions. As a company with a comparatively low vertical range of manufacture, our suppliers play an important role in our corporate philosophy. With increasing brand awareness and the expected need to become active in the private sector as a result of more people working from home, the relevance of the company’s public perception in society is increasing.
- PUBLIC INSTITUTIONS AND ASSOCIATIONS: Both these groups are important for ASSMANN when it comes to forming opinions and promoting innovation. However, they have little presence in our day-to-day business.
Assessment of potential material topics
The international standards for corporate sustainability reporting are developing just as dynamically as the topic of sustainability itself. In order to give ASSMANN plenty of time to prepare for the changes of the future, we have already based the preparation of the current Sustainability Report on the new European Sustainability Reporting Standards (ESRS), which will not be mandatory for us until 2026. These standards consider materiality from two perspectives, taking both financial materiality (outside-in perspective) and the impact materiality angles (inside-out perspective) into account. The aim of financial materiality is to determine which opportunities and risks may arise from ecological, economic or social factors with regard to ASSMANN's activities. The impact materiality describes the positive and adverse impacts ASSMANN has on the environment and people, taking the company’s entire value creation cycle into account. This double materiality analysis then leads to the identification and assessment of the material sustainability issues for ASSMANN. In order to obtain as comprehensive a picture as possible of the range of topics, a large number of discussions have been held with various internal and external stakeholders. The focus of these talks was on dialogue with the members of the sustainability team and the sustainability ambassadors. The internal and external representatives then evaluated the various sustainability aspects in the form of interviews, considering the character and relevance of each aspect. This was completed using a scheme from Nextra Consulting as a guide, which enables scaling of the various topics. Finally, the assessments were discussed again in the sustainability team, slightly adjusted in terms of their characteristics and categorised according to their thematic focus.
Description of the material topics
In the course of this detailed process, a total of 17 material topics were identified from the three overarching themes of environment, social aspects and economy/governance. These include the ecological topics of materials, air pollution, biodiversity, energy, logistics, employee mobility, disposal and recycling as well as chemicals in production. The company's own workforce, corporate culture and the the working conditions in the supply chain were identified as material in terms of social aspects, while influence on consumers, supplier management, digitalisation, customisation of services, legally compliant action and local responsibility were classified as relevant with regard to the theme of economy. In accordance with their scoring from the previous analysis, the topics were assigned opportunities, risks and a general description, and then entered into the materiality matrix designed for this purpose. This matrix, which lists both the material topics and those classified as non-material, such as "Animal welfare" and "Other pollution", thus maps out the company's sustainability roadmap for the coming years, which is backed up and filled with corresponding measures.
The course is set
By carrying out the materiality analysis and visualising the results in the materiality matrix, ASSMANN has taken another important step towards a sustainable future for the company. Through personal dialogue with our stakeholders, we have jointly established a basis for initiating sustainable action in a targeted and efficient manner for years to come.
Over the past few months, two fundamental questions have guided us through this important process, which is indispensable for identifying the relevant issues: “What impact does ASSMANN's activity have on people and the environment?” (inside-out perspective) and “What are the social and environmental impacts of ASSMANN's business activities?” (outside-in perspective). Our structured and targeted discussions with our internal and external stakeholders – an approach facilitated by our materiality analysis – enable us to whittle the now huge field of sustainability topics down to the ones that are truly relevant and important to ASSMANN, and to implement targeted measures with ecological, social and economic motivations.
Materiality matrix visualises results
The results of this detailed process are mapped in our materiality matrix. It clearly illustrates which topics are currently the most relevant for ASSMANN in terms of sustainability. In particular, these include environmental issues such as materials, air pollution, energy and biodiversity. However, the results of our double materiality analysis show that economic issues such as digitalisation and influence on consumers are also highly relevant to the company. The materiality analysis and the resulting matrix are not to be interpreted as static – new legislation, developments in the market and new demands from employees or other stakeholders can cause dimensions to shift and individual factors to gain or lose relevance. The redefinition of targets shows that our company is continuously evolving and facing up to future challenges.
Issue assessed by the sustainability team and other internal and external stakeholders using a points system from 3 to 9, with 3 to 4 categorising a topic as immaterial and 5 to 9 as material in one instance. No topics were categorised in the 8 to 9 range, which is why we have not shown the full axes in this diagram.
Our material topics
All topics classified as material are listed at this point, and their actual and potential adverse impacts on the economy, environment and people are determined. Specific measures and targets are outlined on the relevant topic pages. This section also explains why we have categorised five aspects as non-material.
Material
- Materials (incoming materials and finished products)
- Disposal and recycling
As an office furniture manufacturer with a daily production rate of 2,500 furniture parts, we process a large quantity of materials. The utilisation of wood and iron ore and the associated extraction of raw materials cause significant environmental impacts.
Risks: Resources are becoming increasingly scarce due to external circumstances. This is noticeable in the case of non-renewable raw materials such as iron ore. However, the renewable material wood is also becoming a rarer raw material due to droughts and pest infestations caused by climate change. This results in price increases. In addition, strict regulations regarding material procurement (EU Deforestation Regulation) and waste management (German Circular Economy Act, KrWG) pose challenges that we have to face.
Opportunities: By promoting the circular economy and focusing on reuse, ASSMANN has various opportunities to increase the proportion of recycled materials used in its products, reuse materials and utilise resources efficiently. This can help to reduce the extraction of primary raw materials from the environment, resulting in lower environmental impacts. In addition, focusing on the circular economy can open up new market opportunities.
Climate
- Energy (electricity and heat)
- Logistics (vehicle fleet and haulage companies)
- Employee mobility (company cars and employee commuting)
- Air pollution (CO2 emissions)
ASSMANN has a significant impact on the climate due to its production site, the materials it uses, and its logistics and employee mobility. The European Green Deal aims to reduce GHG emissions by at least 55 per cent by 2030 compared to 1990 levels. As a company, we are required to implement targeted measures to reduce our environmental impacts.
Risks: Fossil fuels in particular are becoming scarce and have high CO2 emissions. There is a risk that the switch to using renewable energies will not be implemented quickly enough to mitigate environmental impacts in time. Among other things, this can lead to rising production and logistics costs throughout the supply chain.
Opportunities: The expansion of renewable energies in particular opens up numerous opportunities for all areas of energy utilisation, especially for the in-house production of energy and the promotion of alternative drive systems for our vehicle fleet. In addition, new concepts can be implemented for our truck fleet in order to optimise routes and loads. Targeted carbon accounting on a company and product basis helps to compare and optimise the impacts of different activities.
Environmental protection
- Biodiversity (preservation of biological diversity)
- Chemicals
ASSMANN has a significant impact on biodiversity due to soil sealing at our production site and in our supply chain through the procurement of raw materials, particularly wood. In addition, various chemicals are used in production and the supply chain. We carefully monitor compliance with the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and RoHS (Restriction of Hazardous Substances) regulations through hazardous substance management, supplier self-disclosure and codes of conduct.
Risks: Risks are posed by the decline in biodiversity due to monocultures and climate change and a lack of reliable sources for wood products. There is also a risk due to stricter regulations regarding the use and production of chemicals.
Opportunities: A stronger focus on recycled materials can facilitate independence from fresh wood and further improve environmental protection. The use of chemicals at ASSMANN is continuously optimised through hazardous substance management and the use of environmentally friendly alternatives. We are in continuous dialogue with our suppliers to optimise the way chemicals are used upstream in the chain, such as in glues.
People
- In-house labour (working conditions and benefits)
- Working conditions in the supply chain
- Corporate culture (working atmosphere)
Through its actions, ASSMANN shapes the working conditions of its on-site workforce and endeavours to influence the working conditions of its direct suppliers, in particular through on-site audits.
Risks: The shortage of skilled labour is a challenge, especially in our region where there is a high density of furniture companies. High employee expectations and piecework in production, which is often perceived as a burden, pose further risks. It is not always possible for us to influence working conditions in the supply chain directly. In particular, the geographical distance makes cooperation with suppliers outside the EU more complicated than with suppliers within the EU or Germany. However, we are endeavouring to pay particular attention to this aspect as part of the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz).
Opportunities: As a family-run company with long-term visions, such as doing business for future generations and personal interaction, we strengthen our relationships with our employees. Flexible working models, company parties and the presence of a Works Council contribute to this. Thanks to long-term supplier relationships and regular supplier audits, we maintain good relationships with our suppliers and can bring about change together.
Corporate conduct
- Supplier management
- Digitalisation
- Legally compliant conduct
- Customisation of services
- Influence on consumers (safety, health)
- Regional responsibility (local commitment)
Corporate conduct is the term used to describe ASSMANN's entrepreneurial orientation and relationships in the supply chain, as well as overarching strategic measures such as digitalisation.
Risks: Stricter legislation, particularly with regard to social and environmental issues, as well as the pressure from certifications and changing customer requirements, pose particular challenges.
Opportunities: Thanks to our long company history, which has developed over the years in conjunction with strong partnerships, we are well positioned for the future with our deep roots. Our orientation as a holistic office furniture supplier enables us to offer custom services and optimise our influence on our customers.
Non-material topics
Animal welfare
We source only a very small proportion of leather for our products and pay attention to sustainable procurement. If this proportion increases, the topic of “animal welfare” will be re-valuated in the next materiality analysis.
Communities affected
To the best of our knowledge, the activities of ASSMANN and our suppliers have no impact on “affected communities” in the sense of indigenous peoples. The supply chain aspects are covered under “Working conditions in the supply chain”.
Other pollution
We have no significant impacts on soil, water, noise or food. Air emissions are taken into account in the “Environmental protection” and “Climate” sections.
Water
At ASSMANN, no water is used in production. The only water use is for sanitary and sprinkler systems Our suppliers have effective treatment facilities, so we do not currently need to consider any significant adverse impacts or risks.
Political commitment and lobbying
We are involved in various associations, but our greatest area of influence is on local networks. Our influence in the form of political commitment is therefore limited.