0 1 . 05. 2 0 2 2 – 3 0 .0 4 .

2 0 2 3

CSR REPORT
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 2

THE CSR FOUNDATION OF BOCONCEPT

We must support the engagement and

wellbeing of our employees, understand
our consumers, and ultimately improve our
overall impact on the environment.

During this second reporting year we have started to go

OUR PEOPL E O U R C O N S U ME RS O U R E N V IRO N ME N T
much deeper into the roots and DNA of the company. We
have now established the brand’s key focus areas which
enables us to create the future processes of the company
with a much more sustainable angle.
Scope 1 Scope 1 Scope 1 Scope 1
650 T 591 T 646 T 351 T
Co2 Co2 Co2 Co2
Another important pillar has been our ambition to meet our
79% 78% 79%
SBTi target settings of an absolute reduction of our CO2(e)
emissions year on year of 2.5%. During the past year we
68% 64% 69%

36 42 49 59 8751
MWh
9179
MWh
9753
MWh
7413
MWh Scope 2
446 T
Scope 2
492 T
Scope 2
459 T
Scope 2
467 T
have moved our production facility away from natural gas Co2 Co2 Co2 Co2

to central heating supporting a much greener source and

20/21 21/22 22/23 20/21 21/22 22/23 2019/20 2020/21 2021/22 2022/23 19/20 20/21 21/22 22/23 19/20 20/21 21/22 22/23
thus a reduction of our Co2(e) footprint.
Motivation Recommendation
Although just implemented in December, we already see a
Employee satisfaction Net Promoter Score (NPS)
significant impact on the Scope 1 numbers - reducing the Energy and emissions
annual footprint by 40% to a new level of 351 Co2(e) Tons global development
from 646 tons in 21/22.

In 23/24 an even larger scope 1 reduction will be realized

as we are looking in to the first full year impact of the in-
vestment. In scope 2, the external effect of adding more
stores to our network has resulted in a slight increase.

The CSR report contains statement of corporate social responsibility cf. Section 99 a of the Danish Financial Statements Act and statement on data ethics cf. Section 99 d of the Danish Financial Statements Act.
W EL COME B OC ON C EPT PROFILE
COMPETENCIES AND AREAS OF BUSINESS
BoConcept Holding A/S is a global brand and an interna-
tional furniture franchise chain in the ‘affordable premium’
segment. The furniture and accessories collection is sold
through over 340 brand stores in over 60 countries with
BoConcept as franchisor, designer, business developer, ex-
clusive supplier and international distributor.
In addition, BoConcept has several subsidiaries around the
world, which are responsible for the sale and distribution of
our products in the various markets.
The furniture sold within a BoConcept store comes from
several suppliers, but can be classified into three larger
groups:
y BoConcept’s own production in Denmark
y European-sourced finished goods
y Asian-sourced finished goods
The make-to-stock products are kept in stock either in
Denmark (Ølgod) or China (Shanghai), from where they
are distributed, majority flat-packed, to the 60+ countries
around the world where BoConcept stores and studios
are located.Flat pack distribution means we can optimise
space during transportation thereby reducing cost and
CO2 emissions.
The flat-packed products also allow an easier end of life
process, as the majority of the products can be disassem-
bled and therefore disposed of more efficiently.
GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 3
The freight towards the stores is partially handled by
BoConcept and partially by partners, depending on the
recipient. Optimising space for shipping has always been
a crucial factor for the flow within BoConcept. To support
and optimise this flow, BoConcept is tightly integrated with
its partners globally, allowing the financial and environmen-
tal processes to go hand in hand with the communication
with the end consumer.
A large component of sales is made to order – meaning a
purchase order from a consumer is to be received before the
product will be produced. This method minimises production
waste and avoids overproduction.
The majority of the collection is expected to have a long
lifecycle span, reducing the risk of obsolete inventories.
The main risk in the assortment from a sustainability point
of view, sits within the accessories range, where season-
ality and trends change much faster than within furniture.
To support this and try to reduce the waste, the Collection
& Visuals team has been working on different models and
solutions and focusing more on longer lasting colours and
materials.
Over the past five years, to avoid waste of unsold products
BoConcept has sold discontinued products via both own
and external outlet channels as well as made several do-
nations to Danish women’s crisis centers and other charity/
volunteer organizations.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 4

OUR CHOSEN GOALS

Through our internal strategy process, we have identified 3 of the 17 United Nations Sustainability Development Goals (SDG’s) that our primary focus areas are tapping into. ‘It is our CSR vision to position
BoConcept as a company making
continuous improvements
in terms of societal responsibility and
sustainability’

Manufacturing
BoConcept’s CSR strategy supports this SDG BoConcept’s CSR strategy supports this SDG BoConcept’s CSR strategy supports this SDG be- waste

because we regularly calculate and report on our because we are focusing on finding methods for cause we continuously register our manufacturing

co
GHG emissions, and we work purposefully to designing and manufacturing our products in a waste, and optimisation actions are implemented

pa te

ns
E nu m p
s
ct
im lima

er tio
reduce emissions. We focus on optimising and re- resource-efficient way. This includes looking into on an ongoing basis. Waste fractions are sorted at

gy n
C
ducing our energy consumptions, and on working designing new products that can be disassembled the source, and disposals are done according to

s
towards converting to renewable and emission-re- in each material fraction at end of life, developing regulations and relevant practices. We are estab-
duced forms of energy. One of our focus points high-quality products that last for many years. lishing a systematic focus on identifying consum-

as de
is the transportation and material consumptions ers CSR focal points. We have decided to publish

Su art lop

s
ca e s/
nt
p ve

l p rs
st of me

fo um er

oi
associated with our business. an annual CSR report, as well as to establish a

ain p n

R ns om
a b ro d t

C S c ou s t
model for incorporating sustainability into product

ili uc

C
ty t
design and product development.
Communicate
Especially SDG target CSR performance

Especially SDG targets 9.4 is addressed Especially SDG targets

7.2 and 7.3 are addressed 12.2, 12.5, 12.6 and 12.8 are addressed
W EL COME B OC ON C EPT PROFILE
SUSTAINABILITY GOVERNANCE AND GOALS
During 2022/2023 our focus has been on delivering to the
promises made in the first reporting year.
We have placed a strategic focus on our products, their
footprint and the coming year’s strategy for incorporating a
clearer ESG agenda.
GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y
OUR TAR GET AR EAS OF 2022/ 2023
1 Plan for the phase out of Natural gas heating in our
DK facilities
2 Installation of electrical car chargers at our Danish
facilities and implementation of electrical trucks
(moving away from gas trucks) at our Danish ware-
houses
3 Implementation of the Målbar tool in own produc-
tion
4 Implement set internal CO2(e) follow up processes
in both HQ but also subsidiaries
5 Create a clear roadmap for our product focus in the
coming years
6 Prepare for dual / Local sourcing activities
A P P EN D IX
OUR R E S ULTS IN 22/ 23
Implemented and running
All trucks have been replaced in the warehouses.
Order placed for electrical car chargers - waiting
for installation from Clever.
Under implementation - the final part of the imple-
mentation is being carried out first half 2023/24,
with an expected live date end August 2023.
Fixed KPI process described an implemented in the
management dashboard starting september 2023
Focus areas has been chosen and a rough road-
map has been created
Consolidation process of our Chinese supplier base
has started resulting in a 33% reduction of our Chi-
nese supplier base
5
OUR F UTUR E TA R G E TS
To keep looking for potential ways to reduce scope
1 and 2 emissions by changing to greener energy
sources. Through this reduce our scope 1 and 2
emissions to support a reduction to and below cur-
rent targets of 2,5% per year
Continue the learnings from the Målbar project to
evaluate the next steps in our data collection within
the ESG area
To follow our SBTi reduction targets and work
towards furhter improvements
To implement these focus areas in our product to
market processes and measure on the outcome
To secure full implementation of the plan and start
to investigate the possibilities created by this initia-
tive
W EL COME B OC ON C EPT PROFILE GO A LS
EMPLOYEES
O U R ACTI ONS A ND RESULT S DURING
2022/23
We believe that the best results are achieved by creating
a safe and engaging workplace for all colleagues. It is our
ambition that we continue to improve and develop as a
workplace – with actions guided by our values.
At BoConcept, we are growing – and we want our People
to grow with us.
Employee engagement and wellbeing
Health & Safety is a top priority at BoConcept.
Ambition: At BoConcept, we consider our employees to be
our most valuable resource, which means that their health
and safety is our number one priority. We believe all work
accidents and hazards can be prevented, and we continu-
ously strive to provide an injury-free workplace for all em-
ployees.
RESU LT S O F L O ST TIM E A CCIDENT S
Unit 2022/23
LTAs per million
Lost time accidents 1)
workhours
Figures include BoConcept A/S, BoConcept Holding A/S and Layout Holdco A/S only.
E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 6
We want to grow a culture where all BoConcept employ-
ees feel a responsibility to maintain a healthy and safe
workplace and to speak up if they see unsafe or unhealthy
behaviour. Nobody should ever compromise safety or feel
pressured to cut corners, for example, in order to meet
business targets.
Actions: As part of our ongoing focus on the working en-
vironment in our offices, warehouses, and production, we
have invited external consultants for an audit in October
2022, to identify possible improvements and/or changes
needed.
In 2022/2023 BoConcept continued to give its employees
in Herning and Ølgod the opportunity to book 45-minute
well-being treatments/services from a professional thera-
pist, paid by BoConcept. This initiative is offered to prevent
and treat any work-related injuries, as well as promote gen-
eral well-being.
2020/19
2021/22 2020/21
(baseline)
10 10 15 10
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 7

We want to increase employee retention
Ambition: Retention of talent and competences is a top
priority at BoConcept. Our relationship with our employees
rests on the premise that a work life should be balanced
and sustainable in order to make people want to stay and
grow with us.
Results: Voluntary leavers (including both white-collar and
blue-collar workers) LTM was at 9.09% at the end of April
2023, which is a decrease according to last year’s %. This
development is attributable to the labour market trends
following the COVID-19 pandemic, with people making ca-
reer and job changes etc. In the previous financial year, the
percentage was at 14.5.

Actions: In order to retain our people, we arrange absence

interviews in the event of long-term illness, discussing
measures that may reduce the employee’s period of ab-
sence, initiate gradual return, or adapt the job tasks. We
also conduct structured exit interviews when people are
leaving to listen, learn and implement initiatives to become
an even better workplace.

DEVEL OP ME NT IN V OL UNTA RY L E AV E R S

2020/19
Unit 2022/23 2021/22 2020/21
(baseline)

Voluntary leavers % 9.09 14.50 4.90 9.80

Figures include BoConcept A/S, BoConcept Holding A/S and Layout Holdco A/S only.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 8

The engagement of our people is a key to a
successful development of our business
Ambition: Today more than ever, organisations rely on the
energy, commitment, and engagement of their people. Our
engagement surveys are important tools for ensuring our
global organisation is a great place to work
Actions: At BoConcept we measure employee engage-
ment twice annually. Based on this feedback, our execu-
tive management team and HR functions have deep dived
on two areas in the year ahead. One is onboarding of new
colleagues, which will remain a top priority for the second
year running. The other is to build more internal promotors
of BoConcept as a workplace.
Together with the central actions, we focus on making sure
there is a follow-up on the engagement surveys across
all teams in the company. We believe that each team will
need to find its own way by conducting sessions to reflect
and discuss team scores, design an improvement plan and
monitor follow-up.
Results: In the latest survey the response rate was 91%.
The individual comments provide a rich dataset for identify-
ing areas in need of improvement.
The overall satisfaction rate is 75 (improvement of 5 since
last survey. Motivation maintained at 79 (small increase
from 78) which is very close to the overall Loyalty Score 80
(improvement of 2 since last survey).
This year we have seen significant improvements in the All managers allocate time for regular – usually monthly –
work-life balance across the entire business – from 66/100 one-to-one meetings with their employees to discuss how
to 75/100. things are going and what to focus on. Furthermore, all
employees have a more in-depth and forward-looking dia-
R ISK AN D D U E D I LI GE N C E logue with their immediate superior each year which focus-
es on the employee’s development as a way of ensuring
Risks that both the employee and BoConcept can make the most
Risks within the employee area include: of the employee’s ambitions and potential.
y Unintentional developments or handlings of accidents
y Occupational health and safety
y Drop of employee satisfaction
y Loss of employee expertise
Due diligence
Our executive management team is directly responsible
for overseeing our performance within the employee area,
and the topics are regularly on the agenda at management
meetings.

EMP L O Y E E M O T I VAT ION A ND RECOM M ENDAT ION BoConcept carries out statutory workplace assessments
every three years in cooperation with the working environ-
Unit 2022/23 2021/22 2020/21
ment organisation. Given our high activity levels and all
the changes sweeping our organisation and impacting our
Motivation % of positive reply 79 78 79 work lives, challenges are bound to crop up which may
lead to imbalances. All employees are under an obligation
to inform immediate superiors or HR of any imbalances
Recommendation % of positive reply 69 64 68 that need addressing.

Figures include BoConcept A/S, BoConcept Holding A/S and Layout Holdco A/S only.
W EL COME B OC ON C EPT PROFILE
GENDER EQUALITY
O U R ACTI ONS A ND RESULT S DURING
2022/23
BoConcept has a gender balanced workforce. Striving for
equal representation of women and men benefits our ef-
forts to not only attract but also retain a diverse workforce
as well as improving performance and results.
Board of Directors
As of year-end 2022/23, one out of four general assembly
elected members of the Board of Directors of both Layout
Holdco A/S and BoConcept Holding A/S is a woman, and
one out of three general assembly elected members of the
Board of Directors of BoConcept A/S is a woman. All of the
above is considered an equal gender distribution, accord-
ing to section 99 b of the Danish Financial Statements Act,
and hence no targets have been set.
Other management levels
Ambition: At other management levels, it is company pol-
icy to ensure a gender distribution that reflects the Layout
Holdco A/S group’s organisation.
Actions: Activities for increasing the underrepresented
gender include having both genders invited to job inter-
*Gender distributions include data only for the group enterprises Layout Holdco A/S, BoConcept Holding A/S and BoConcept A/S
GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 9
views, wherever possible, and we instruct recruiters to
always present us applicants of both genders when the
applicants’ qualifications are at equal levels.
We regularly encourage current employees of both genders
to apply for management positions within the company. We
always keep our doors open to welcome leaders and em-
ployees regardless of gender, age, ethnicity and religion, as
promotions and hirings will always be based on our evalua-
tions of actual professional and personal qualifications.
Results: As of year-end 2022/23, the underrepresent-
ed gender share is 41%* at other management levels
compared to 36%* in the total group organisation. This R ISK AN D D U E D I LI GE N C E
compares to an underrepresented gender share at other
management levels of 38%* and 41%* in the total group We have HR and management focused on ensuring that
organisation in the previous year. We acknowledge that the our policy intentions are applied within this area, and as
female gender is currently slightly underrepresented at oth- such the topic is frequently on HR and management meet-
er management levels, and we are working on achieving a ing agendas. We regularly evaluate and communicate on
more equal gender distribution. our development, which helps us mitigate the risk of not
living up to our policy as referenced above.
At BoConcept we ask our employees to assess how inclu-
sive they find us as a workplace on a yearly basis. In Sep-
tember 2022 they rated us with an average score of 82/100
on questions related to equality and inclusion. A result we
are satisfied with and want to maintain.
W EL COME B OC ON C EPT PROFILE
ENVIRONMENT
O U R ACTI ONS A ND RESULT S DURING
2022/23
Supporting the change from diesel/gasoline to
electric cars
When entering the financial year, the ambition was to get
chargers installed at both our Herning and Ølgod facilities.
These have been ordered at Clever and we are currently
waiting for the actual installation.
Initially eight chargers have been ordered, but the installa-
tions are ready for an additional eight if needed.
Changing diesel and gas trucks to electric
Following last year’s approval of an investment in changing
gas trucks to electric we have executed this in the first half
of the financial year. All trucks operated on our locations
are now electric giving us a better working environment
and reducing the emissions.
Sustainability targets for the product assortment
We have prioritized a focus area within our product man-
agement to create a clear sustainability roadmap for our
assortment. This will be used as a guideline for any new
products that are introduced.
This work has resulted in a net list of initiatives from the huge
variety of choices within product sustainability. An area made
even more complex by the fact that BoConcept is selling
products to partners in 67 countries.
GO A LS E M P LO YE E S E N VI R O N M E N T SU PPLI ER S , C ON S U MER S A N D S OC IET Y A P P EN D IX 10
The defined focus areas are:
• Certification of raw materials
• Product lifecycle
• Emissions
As a brand, within each focus area we will be defining the
choices we will use as guidance in our product develop-
ment process.
The choices will be implemented in our fixed product to
market flow and thus become a natural part of the coming
year’s introductions.
Through our continuous changes in the assortment, this
will gradually move our overall assortment in a more sus-
tainable/documented direction.
Discontinuance of all chrome parts
Last year we announced a full discontinuance of all
Chrome parts by the end of 2024. We have succeeded in
moving this forward to 2023 and thus support the reduc-
tion of chrome being sold. All partners have been informed
and from September 2023 these will be removed from our
assortment.
OEKO-TEX® certified fabrics
As a part of the overall certification plan, we announced last
year that we would strive towards introducing OEKO-TEX® cer-
tified fabrics. This year we are introducing the new OEKO-TEX®
certified Tuscany fabric in our assortment.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU PPLI ER S , C ON S U MER S A N D S OC IET Y A P P EN D IX 11

FSC™ C177567

Implement FSC certification ments with our suppliers will be finalized during 23/24 en- The ambitions have been approved and are now visible on to reduce more than 30% of the current CO2(e) footprint in
When entering the year, the ambition was to sell the first abling us to reach our target. the website under “companies taking action” https://sci- scope 1 and 2.
FSC™ (FSC-C177567) certified products in October 2022 encebasedtargets.org/companies-taking-action#dashboard
(following the initial audit from Preferred by Nature in 2022, Implementation of Målbar tool to be used for The installation was finalized in December 2022, with full
and the inventory of non FSC products was “turned”). As calculating our CO2e footprint on individual An important step towards fulfilling this target was the impact in the 2023/24 financial year.
a step 2 in our implementation plan, our Asian Distribution products installation of central heating at our Ølgod plant, moving
Centre was to be included in our FSC certificate scope. Our ambitions in the 22/23 financial year were to initiate the away from natural gas. This installation alone is estimated
collaboration with Målbar and start the implementation of
In November 2022, we sold the first fully certified prod- the tool in our own production.
ucts from our assortment from our European warehouse. In
August 2022, the Asian Distribution Centre was included in At the end of the financial year, we are very close to having
our FSC scope. the final implementation done and we estimate that all cal-
culations will be ready by August 2023
Our latest assortment, the Autumn/Winter 2023 collection,
ENERGY EMISSIONS
is expected to be fully certified by the end of the year. Green energy and reduced energy consumptions
We continue to support the use of green energy where pos- 2020/19
Unit 2022/23 2021/22 2020/21
It is our ambition that by the end of the financial year 24/25 sible and have renewed our agreements with our supplier (baseline)
will be meeting our target of having more than 80% of our securing another year of green energy only for our office,
board assortment FSC certified (measured on number of production and warehouses in Denmark. Energy consumption MWh 7413 9753 9179 8751
“live” SKUs in the assortment).
Science based targets initiative (SBTi) CO2e emissions,
Metric tons CO2e 351 646 591 650
By the end of the 23/24 financial year, we are expecting to As a part of our commitment towards CO2(e) reduction we Scope 1
exceed 40% of the board assortment to be FSC certified. have signed up for the Science Based Target initiative un-
derlining our ambition of reducing our emissions with 25% Metric tons CO2e
CO2e emissions, 467 459 492 446
Further to our ambitions on our board assortment, it is calculated from the baseline year 2020. market-based
Scope 2 (859) (806) (772) (776)
also our aim to have 80% of our wooden based upholstery (location-based)
assortment FSC certified by the end of the calendar year
2024. The necessary IT-infrastructure and purchase agree- Water consumption 1) m3 2105 1861 1924 2362

Figures include BoConcept A/S, BoConcept Holding A/S and Layout Holdco A/S only.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU PPLI ER S , C ON S U MER S A N D S OC IET Y A P P EN D IX 12

RIS K AND D UE DILIG ENCE
Risk
Due to the historical limited reporting on consumption data
we risk unintentional development of energy consumption.
Due diligence
Our executive management team is directly responsible for
overseeing our performances within the environmental and
climate change areas, and the topics are regularly on the
agenda at management meetings.
and we ensure compliance with all applicable laws, regula-
tions, our own policies, and mutual agreements by always
having this as the foundation for our Code of Conduct and
overall management approach.
Mandatory REACH declarations commit our primary suppli-
ers to take ownership and responsibility within this area.
When it comes to investments, our mandatory CSR evalu-
ation scheme contributes to ensuring awareness from the
initial thought and throughout the investment process.

We manage our environmental and climate change risks by

applying systematic governance and management proce-
dures around our planning, design, and follow-up methods,

S UB TAR G ETS
S UP P ORTED
W I TH I N THE
ENV I R ON M EN TA L
A R EA
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 13

SUPPLIERS, CONSUMERS AND SOCIETY

O U R ACTI ONS A ND RESULT S DURING
2022/23
Getting ready for CSR-D
During the latter part of the 22/23 financial year, we have be-
gun our journey towards CSR-D compliance.
This is a very difficult and time-consuming process, where
we have tried to learn from both companies already started,
but also various consultants on possible approaches.
The road map towards the implementation of the CSR-D
reporting structure and the organisational footprint is to be
mapped out during the first half of the 23/24 financial year.
Further to this, the initial steps towards creating data and in-
terfaces will be started to prepare ourselves for the financial
year 25/26, when we must be compliant.
Quality
We always aim to introduce new products with a higher
quality than the existing assortment. Through this simple
process we ensure a continuous positive development of
the overall quality.
The new products introduced as part of our Autumn/Winter
collection in September 2022 have performed according to our
targets and overperformed compared to our existing collection.
The newly introduced items finished the year with a claim
rate of 1.28 vs 1.73 on the full assortment which is ex-
tremely important as this reduced repeat deliveries and
wasted CO2(e) emissions. Although this is positive, the
total colli claim rate is considered higher than anticipated,
which we attribute to the historical deliveries.
The claim rate is highly impacted by the historical sales
pattern and volume. In 2022/23 this was very visible when
looking at the first half of the year where the claim rates w
negatively impacted by the very high volumes delivered in
the last half of 2021/22. At the same time, the high volumes
in general within the furniture industry caused increases in
transportation and warehouse damages.
As the last part of 22/23 is expected to match 23/24 we
foresee a normalized claims flow during the coming year.
Simultaneously we have closed the gaps within transport
through guidelines and SOPs. This together with a general
reduction in stress in the shipping industry are all contribut-
ing to a lower overall claim rate and reduced second deliv-
eries in the financial year 23/24.
End consumer
As our insights and understanding of the end consum-
er continues to improve, we strive towards a continuous
improvement of our net promoter score. A measure sup-
ported by our quality initiatives, internal processes, and the
overall CSR approach.
2022/23 continued the impressive journey on this KPI as
we once again saw an increase in the positive feedback
given by the end consumer. We are extremely proud of this
result as this is the actual feedback from the market.

COLLI CLAIM RATE NPS GLOBAL DEVELOPMENT

2020/19 2020/19
Unit 2022/23 2021/22 2020/21 Unit 2022/23 2021/22 2020/21
(baseline) (baseline)

% of boxes shipped with claim 1.73 1.37 1.65 1.76 Consumer satisfaction NPS 59 49 42 36
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 14

Local sourcing
At BoConcept, we want to build a supplier footprint with a
much closer proximity to our main markets, through which
we aim to reduce unnecessary freight and handling. By do-
ing this, we also reduce our risk of negative social impacts.
This is a long process that will be an ongoing task as we
keep expanding our store network. With presence in 65+
markets, local sourcing becomes more and more impera-
tive as part of our CSR intentions. We are also tapping into
the global trend of supporting local production, as we see
an increasing tendency towards this request from our part-
ner network.
During the past year we have been focusing on consolidat-
ing our sourcing activities and strengthening our footprint
and flow from fewer suppliers in China.
As a result of this we have now started the process of ac-
tively reducing the number of Chinese suppliers with 33%,
creating better freight utilisation, less handling and com-
plexity. The implementation of this initiative will be running
throughout the coming year.
Besides preparing us for dual and local sourcing the result
of this initiative will also reduce travel activities and increase
the utilisation of resources at both our suppliers and inter-
nally. This will result in less waste and better processes.
Another great example on the change in our footprint is
within our upholstery sourcing. For the past 15 years we
have been supplying upholstery to the North American
market from China. Starting May 2023, all upholstery or-
ders will be produced in Europe and consolidated with all
other products supplied to the North American market from
our European Distribution Centre in Ølgod.
By doing this we can ship directly to the individual partner
in North America and bypass the current inland hub and
distribution structure. Not only will we be able to create a
much simpler flow, but we also reduce our inland freight
in USA to a minimum, focusing the majority of the transit
to be handled on water – a much better solution from a
CO2(e) context.
Anti-corruption, human and labour rights
We continue to evaluate our suppliers based on their devel-
opment and performance. With the consolidation of suppli-
ers in China we are further reducing our risk as the auditing
is now focused on the remaining suppliers.
We continue to work from our Code of Conduct signed by
all suppliers and employees ensuring a respectful working
environment in accordance with local legislation.
During the year, we saw no incidents of non-compliance
with the anti-corruption policy applying to all BoConcept
employees, as well as no major incidents of breaches of
our principles on human rights and labour rights.

The change in sourcing from ASIA to Eastern Europe will

SOURCING SPLIT – SCANDINAVIA, EASTERN EU, ASIA, EUROPE
be visible in next year’s sourcing split KPIs.
2020/19
Unit Area 2022/23 2021/22 2020/21
(baseline)

Scandinavia 15 17 20 26

Purchase value EU 9 4 4 4
split in to regions
in % Eastern EU 45 44 43 40

ASIA 31 35 33 30

Figures include BoConcept A/S, BoConcept Holding A/S and Layout Holdco A/S only.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 15

RIS K AND D UE DILIG ENCE
Risk
Our risks within this area include involvement in corruption
cases, breach of employee rules, problems with payment
of tax, problems with collaboration with trade unions, col-
laborations with dubious suppliers, poor handling of whis-
tle-blower cases, quality issues, breaches on human rights
etc.
Due diligence
Our top management group is directly responsible for over-
seeing our performances within this main area, and topics
are regularly on the agenda at management meetings.
Our reporting and control processes reduce our risk of col-
laborating with suppliers not fulfilling our minimum require-
ments. Through the continuous follow up and visits from
our sourcing organisation we ensure that our supplier base
lives up to the Code of Conduct applied guidelines.
The Code of Conduct approach, together with our whis-
tle-blower possibilities, also ensure that internally we are
compliant and have easy access to anonymous reporting.
Via follow up with our partners on the daily challenges and
potential improvements on our products, we ensure that
we stay proactive and in sync with our current assortment.
These insights, together with a strong focus in the New
Product Development process, ensure an ongoing im-
provement in the general quality levels.

S UB TAR G ETS
S UP P ORTED
W I TH I N
“ S UP P L I ER S ,
CON S UM ER S
A N D S OCI ET Y”
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 16

REPORTING PRINCIPLES

It is of great importance to BoConcept that all data is complete and as accurate as possible. The below reporting princi-
ples have been applied when collecting, handling and calculating our performances.

KPI figures Unit Reporting principles KPI figures Unit Reporting principles

(Total number of apps * total number of users) divided by (total number

Average Progress %
EMPLOYEES of completed apps * total number of users) *100

Content in numerator:
Net Promoter Score, NPS: Our market research metric based on
A lost time accident is recorded if it occurs during work hours and if it
regular surveys asking consumers to rate the likelihood that they would
causes more than one day of absence after the accident day.
Number of recommend BoConcept. Consumers are divided into “promoters” who
Accidents are considered work related if circumstances in the work NPS Score NPS score
accidents provide ratings of 9 or 10, “passives” who provide ratings of 7 or 8,
Lost time accidents environment caused or contributed to the accident. Travel to or from
per 1,000,000 and “detractors” providing ratings of 1-6. Difference in percent
work is not included.
work hours between promoters and detractors equal the net score.
Content in denominator:
The total number of worked hours in the group. A management position is defined as an employee with a managing
responsibility for other employees.
Counted as employees leaving BoConcept as a result of the employ-
Content in numerator:
ee’s own decision. Disclosed as number of leavers (numerator) com-
Voluntary leavers % Women at other Total number of women in the Executive Board and women in manage-
pared to the year’s average number of FTEs (denominator). Includes %
management levels ment positions below the Executive Board.
both white-collar and blue-collar workers.
Content in denominator:
We measure the job satisfaction and engagement of our employees on Total number of persons (men and women) in management positions.
Employee satisfaction
an ongoing basis via employee surveys. All persons are counted as FTEs.
%
(motivation and recom-
Disclosed as received positive replies (numerator) compared to total
mendation)
number of received replies.
W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 17

KPI figures Unit Reporting principles KPI figures Unit Reporting principles

ENVIRONMENT SUPPLIERS, CONSUMERS AND SOCIETY

Emissions are calculated and reported in accordance with the Green- Net Promoter Score, NPS: Our market research metric based on regular
house Gas (GHG) Protocol. surveys asking consumers to rate the likelihood that they would recom-
mend BoConcept. Consumers are divided into “promoters” who provide
Consumer satisfaction NPS score
Scope 1 and 2 emission conversion factors: A. electricity: We use ratings of 9 or 10, “passives” who provide ratings of 7 or 8, and “detrac-
site-specific or actual local CO2e conversion factors where available, and tors” providing ratings of 1-6. Difference in percent between promoters
if not available latest published country-specific factors from Internation- and detractors equal the net score.
CO2e emissions, Metric tons al Energy Agency are used. B. Liquid and gaseous fuels: We use latest Cost value of sourced goods per region (numerator) compared to total
scope 1 and scope 2 CO2e published GHG conversion factors from DEFRA. C. District heating: We Sourcing split %
cost value (denominator)
use site-specific or actual local CO2e conversion factors where available,
and if not available we estimate emissions based on emission levels in Number of boxes (counted as collis) with claims (numerator) compared to
Colli claims %
the specific country. total number of shipped collis (denominator).

Scope 2 emissions are reported in both market-based, and loca-

tion-based figures.
Our own energy consumption comes from our use of natural gas, gaso-
line, diesel, LPG, electricity and district heating. Reported consumptions
Energy consumption MWh
are based on meter readings and invoices. Calculation of energy con-
tents are based on latest published DEFRA statistics.
Includes the consumption of water intake from own sources and from
public or other external water utilities. Any collected rainwater and other
Water consumption m3 sources of surface water is not included.

Consumption data are based on meter readings or purchase documents.

W EL COME B OC ON C EPT PROFILE GO A LS E M P LO YE E S
OUR POLICIES
H U M A N A N D L A BO U R R I G H T S
BoConcept supports the international declaration of
human rights. We do not discriminate against any
person, regardless of race, sex, colour or religion.
BoConcept knows that people make the difference!
All employees are encouraged to bring up their ideas
to improve workflow, work environment or other parts
of the BoConcept business. The BoConcept Code
of Conduct states that all suppliers must ensure that
basic human rights and basic labour standards are
implemented. Further, we have communicated to our
present suppliers that we have enrolled in the UN
Global Compact program, and that we expect them to
run their companies applying the same ten principles
that we apply.
E N VI R O N M E N T SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX 18
AN T I -C O R R U P T I ON QUALITY
The purpose of the Code of Conduct is to ensure It is our aim to introduce products that continue to
that BoConcept A/S suppliers operate in accordance improve/reduce the number of consumer claims
with local, national and internationally recognised received. The latest additions to our assortment should
standards on human rights, labour, harvesting and the always perform better than discontinued models. At
environment. BoConcept A/S adheres to the principles the same time, we aim to continuously reduce the
of this code and expects the same of its suppliers. The amount of virgin/oil-based packaging materials and the
content is based on relevant ILO (International Labour waste created by our products.
Organisation, www.ilo.org) and UN conventions (www.
un.org). BoConcept demands that all vendors and
manufacturers must follow their national laws in every
conceivable situation. However, if the demands in this
Code of Conduct represent a higher standard than
the local legislation and other local regulations in the
country in question prescribe, the conditions in this
Code of Conduct will take precedence.
W EL COME B OC ON C EPT PROFILE GO A LS
OUR POLICIES
Working environment
BoConcept works locally with occupational health and
safety in the workplace and has appointed representatives
for both its white-collar and blue-collar workers in Herning
and Ølgod.
Offending actions / harassment
At BoConcept, we strive towards a responsible working
environment, where job satisfaction and openness are pri-
oritised. We expect a decent and constructive approach in
the workplace, which is why all working relations are built
on equal and respectful relationships among employees
and leaders.
We have a responsibility for creating a safe, trusting, and
motivating environment with equal opportunities for our
employees, and we do not tolerate any kind of harassment
in the workplace. BoConcept’s Code of Conduct encour-
ages all employees to speak up if they experience abusive
behaviour of any kind.
Remote working
Remote working is a flexible scheme, under which part of
the defined working hours may be performed from the em-
ployee’s own home, if management assesses that there are
duties that can efficiently be performed remotely.
E M P LO YE E S E N VI R O N M E N T
GDPR and the protection of personal data
At BoConcept, we strive to live up to the data protection
levels and expectations required by our stakeholders, to
ensure their rights to protect the personal data that we pro-
cess.
We make sure that we always comply with the applicable
data protection legislation. We inform the people whose
data we process (‘data subjects’) of our data processing
and the rights they have as subjects.
Data ethics
It is the company’s assessment that it does not have data
that has not already been adequately handled via the
GDPR legislation, which is why there is currently no as-
sessment of the need for a data ethics policy.
Employee development and training
At BoConcept, we believe that practical experience, com-
bined with periods of professional training, provides a
strong starting point for personal and professional growth.
Safety
Employee safety and well-being is a top priority at
BoConcept, and we aim for zero accidents in our factories
and offices.
SU P P LI E R S , C O N S U MER S A N D S O C IET Y A P P EN D IX
Environmental policy
We want to minimise our environmental impacts by using
good planning and design methods. Compliance with all
applicable laws, regulations and mutual agreements will
always be the foundation for our behaviour. As a priority,
we will focus on reducing our energy and resource con-
sumptions. We want to show environmental consideration,
by being aware of our influence on the environment. We will
do this by preventing polllutants and other negative im-
pacts, and by measuring and reporting on relevant environ-
mental parameters.
Climate change policy
We will strive towards an energy-efficient and cli-
mate-friendly use of energy. We will work on reducing our
energy consumption, converting it to more climate-friend-
ly energy types. Further, we will contribute to increasing
employees’ and other relevant stakeholders’ knowledge of
climate change.
19
Internal investment request policy
We want our organisation to be aware of the CSR impacts
of potential investments. To create this awareness, we have
initiated a CSR impact area on our investment requests,
ensuring awareness from the initial thought, throughout the
process.
Chemicals
As a franchisor, we want our suppliers to be on top of the
latest legislation and rules on chemicals and other sub-
stances imported to the EU. To ensure that they stay com-
pliant, we ask all our primary suppliers to sign a REACH
declaration, committing them to take ownership and re-
sponsibility within this particular area.
W E VALU E Y O U R FE E D B AC K
If you have any questions, comments or proposals relating
to this report, please feel free to contact us:

BoConcept Holding A/S

Mørupvej 16
7400 Herning
Denmark
CVR no. 34 01 84 13

E-mail: boconcept@boconcept.com
Telephone: +45 7013 1366

Kind regards,
BoConcept

Role and scope of the CSR report

This CSR report is an integral part of the management review of the
Layout Holdco A/S annual report 2022/23. The information and data
stated in the CSR report cover the period from 1 May 2022 to 30
April 2023. The content of this CSR report covers the entire group,
and a complete list of group companies can be found in the annual
report 2022/23 on page 45.