Materiality analysis

Material sustainability topics at Haypp Group.

Introduction

After doing our homework, we identified a range of areas where Haypp Group have an impact on our society and environment.

The framework

In 2020, using international guidelines, we created a platform where we can take a strategic approach to sustainability. The process has been done by the book, and produced a Sustainability Strategy built on this materiality analysis. The aim was to maximise value creation for society as a whole, while at the at the same time creating value for our shareholders. 

The framework established is a Sustainability Management System that address both opportunities and risks in a practical “hands on” manner.

Based on the overall statement on HAYPPs view of sustainability & ambition, the analysis is validated by internal interviews, bench marking, management discussions, youth leaders input and our customers.

The materiality analysis is aligned with international guidelines for sustainability ISO 26000, Global Reporting Initiative and industry best practice.

Materiality and risk analysis

Material Topic Materiality Risk (and/or opportunity) Management Strategic focus for Haypp Group
Economic topics
GRI 205: Anti-corruption Anti-corruption is an important question globally, even though our industry has not been particularly exposed. No market player cannot be overly confident and as our business grows it is reasonable to expect that the risk could increase. Corruption is a business risk wherever it exists. It is a risk in relation to business relations and our reputation. We have a Code of Conduct that all employees have to read and sign as well as a whistle blower system in place to identify all kinds of irregularities. Business Ethics
Environmental topics
GRI 301: Materials Haypp Group is working to be effective when it comes to all types of resources. We try to be energy efficient and reduce waste in every way we can. Being a e-commerce business we do this to reduce our negative impact on the environment in our operations and encourage our suppliers to do the same. The work includes waste, use of recycled materials, energy efficiency, effective packaging, logistics and more. Associated risks are increased costs for some materials. Identified a possibility to be at the forefront which could signify a better relation with both suppliers and customers. We strive to increase the use of recycled material in our packaging and evaluate incentives to reduce the waste in relation to all our markets. Innovation for Sustainable Growth
GRI 302: Energy Haypp Group, as the rest of the world, is dependent on energy. We consider it natural to do our best to contribute to smart energy consumption. Increased energy costs. We seize all opportunities to reduce our energy consumption and choose green energy from trusted suppliers when we have the possibility to impact the decision. Innovation for Sustainable Growth
GRI 305: Emissions The world needs to become climate neutral. This goal is important for us and we know that it is important for our customers and partners and we want to contribute. All must contribute. As an e-commerce business, our initial task is to see how we can impact the transport of our products to our customers. Increased costs of emissions in the future can create new costs for the business. We try to chose suppliers that will decrease the emissions in our value chain. Innovation for Sustainable Growth
GRI 306: Waste To us waste is mostly connected to packaging. The development of packaging design is fast and this contributes to the industry becoming more resource efficient, and contributing to the reduction of hazardous materials in the environment and optimizing transport. Haypp Group wants to contribute by setting good examples where ever we can to challenge the industry. For the environment, for our customers and for the company’s success. Badwill and increased costs for shipment of waste. There is an opportunity to contribute to solving the problems that can increase our brand’s attractiveness as a responsible market player. The packaging creates waste at customer level that should be recycled and the portion bags are sometimes thrown on the streets creating a problem for all. These are issues we contribute to solve. We are contemplating the best manner to increase recycling and separation at source. We require that of our suppliers and encourage our customers to do the right thing. Haypp Group has continuously worked towards removing all black plastics in products and logistics as black plastic is more difficult to recycle. We have also used our influence to increase the use of plastics from corn and other alternatives that are more environmentally friendly than ordinary plastic. Innovation for Sustainable Growth
GRI 308: Supplier Environmental Assessment Haypp Group is working to be effective when it comes to all types of resources. We try to be energy efficient reduce waste in every way we can. Being a e-commerce business we do this to reduce our negative impact on the environment in our operations and urge and encourage our suppliers to do the same. Risk that our suppliers do not live up to what Haypp Group promises its customers. Communication of Haypp Group’s Code of conduct, dialogue and testing. Innovation for Sustainable Growth
Social topics
GRI 401: Employment A success factor for us at Haypp Group is the engagement and skills of the employees. Personal development is increasingly important for them, and for the company. We know that Haypp Group develops when our employees reach new levels in their own personal development. People who are involved in Haypp Group’s operations and development should know the long-term ambitions of the business. There shall be opportunities for all and clear that efforts to improve leadership, sustainability, innovation and other skills is recognized and appreciated. Identified risks are increase turnover among employees, increased costs for recruitment and a lower degree of innovation and key people deciding to leave the company. Opportunities relate to lower costs, increased innovation and a better organisation. Active dialogue with employees and whistle blower function are essential to ensure that Haypp Group continues to be a fantastic place to work. Best Place to Work
GRI 403: Occupational Health and Safety Safety is a must for Haypp Group as we put a lot of emphasis on our employees and everyone must feel safe. Risk of occupational fatigue, especially during the covid-19 pandemic when many work from home. Whistle blower function in place where employees can report issues. Best Place to Work
GRI 404: Training and Education To be a market player at the forefront, Haypp Group is dependent on employees be able to continuously develop. Lower satisfaction level among employees Haypp Group has individual development plans for each employee Best Place to Work
GRI 405: Diversity and Equal Opportunity Diversity matters. It is important to our wellbeing and success. We are conscious about how much value equality and diversity adds to our business. Questions relating to salary, career opportunities, parental leave and to prevent discrimination are essential. To have a diversified workplace is to affirm opportunities, which includes an good workplace environment for today’s and tomorrow’s talents. Lower degree of innovation and lower satisfaction levels and people choosing to leave Haypp Group are identified risks. Active work with dialogue with employees and strive for equality and diversity when recruiting employees and managers. Best Place to Work
GRI 406: Non-discrimination Please refer to Diversity and Equal Opportunity Please refer to Diversity and Equal Opportunity Please refer to Diversity and Equal Opportunity Best Place to Work
GRI 412: Human Rights Assessment Human rights is an important topic which Haypp Group supports in any manner possible. It is important that all the products we sell are manufactured in a manner that respects human rights. Haypp Group has a limited risk exposure to risks related to human rights, but our biggest suppliers have a bigger risk exposure why it is important for us to avoid any negative impact. Please refer to Supplier Social Assessment Business Ethics
GRI 414: Supplier Social Assessment Human rights and other social issues are important to Haypp Group. We prioritise this and have high ambitions for our value chain. We have some tobacco products and nicotine that are manufactured from organic tobacco. Therefore, it is important to include requirements on our suppliers relating to social responsibility. The identified risks relate to Haypp Group not being able to influence or control our suppliers as we are a relatively small customer. The requirements on suppliers are set in our Supplier Code of Conduct. The Code is communicated and discussed with our largest suppliers. Controls are carried out where appropriate. Business Ethics
GRI 416: Customer Health and Safety Consumer health is a matter of concern for all industry players who manufacture or supply products in daily commodity trade, especially products containing chemicals or additives. For Haypp Group, working with consumer health means, respecting and enforcing age restrictions, being transparent with product information, labeling of the products so that consumers can make informed choices. In addition, Haypp Group offers non-nicotine alternatives for customers that wish to reduce their nicotine use or to quit altogether. We support and encourage initiatives that promote healthy user habits including sports and other activities that contribute to a healthy and balanced life. This is in line with the expectations from our stakeholders and our own values. Our business is dependent on us being on our customer’s side and support them. There is an opportunity as no other market player so clearly has taken the customer’s side with the goal of risk reduction perspective for tobacco and contribute to positive health effects on a global scale in line with the UN sustainability goals. Continuous product development, labs for testing of products and studies to acquire knowledge about the positive effects of oral nicotine, requirements set for suppliers, communication and information to increase knowledge. Health Contribution
GRI 417: Marketing and Labeling We aim to provide stellar service and information about our products and their impact on health, environment and society. If not provided, there is a risk of badwill and law suits. Continuously monitoring developments to ensure compliance Insights for All
GRI 418: Customer Privacy GDPR is a requirement in our business as we handle millions of purchases made by consumers each year. As Haypp Group is proud of our knowledge about the market and customers through different studies, it is important to respect people’s integrity. If not, customers would not feel comfortable to share experience and knowledge. The integrity of the customer is crucial to maintain a good customer relation. If we would not uphold the integrity of our customers it would not be possible for Haypp Group to provide insights and that part of our business. the value of our brand and reputation should not remain as high. We ensure to monitor developments and wants to be an active player Insights for All
Haypp Group specific assessment
Plastic Plastic is an important topic both in relation to the environment and sustainable consumption, two important topics for Haypp Group. We have chosen to highlight plastic as a separate category to be able to focus on plastic particularly. Considerations relating to plastic is important and given a sustainability perspective on the different levels of the production. It pertains to the strive to optimise the amount of plastic used in packaging, a better storage of the products but also an overall less use of plastic. Haypp Group encourages recycling and properly used and recycled, plastic is a good packaging material that we and our consumers appreciate. The impact of plastic on the environment is material and our products can easily be identified if thrown on the streets which can lead to badwill. Continuous information encouraging customers to recycle and discard of used products in the right manner.
Addiction Nicotine addiction is a globally discussed question. The question comes up in Haypp Group’s dialogue with the market and customers why it is very important to handle the question with respect. Addiction related to nicotine is present in all our development dialogues both internally and externally and must be handled correctly in relation to our business. Risks relate to ignorance and unwillingness about the effect from tobacco free nicotine products as a substitute for tobacco products. A risk that Haypp Group monitors is the risk for young people to use our products as a gateway to tobacco products which is contrary to our business values. Haypp Group is aware of the worry surrounding the use of nicotine and its effects. We are trying to provide the best available information and continuously work towards marketing, growth and the use of our products are not related to the unhealthy tobacco market, i.e. the use of our products shall save lives. The nicotine level in the products sold are carefully checked, we have a lab that tests the products to ensure that the products are safe. Even though we know that nicotine products are addictive, it is also a possibility for a mitigated risk for millions of smokers around the world.