Planet

Rugvista's environmental strategy is underpinned by the principle that responsible business practices are a prerequisite for long-term value creation. Our objective is to decouple growth from resource use through optimized material choices and more circular flows. By switching to materials with lower carbon footprints, we mitigate our primary impact within the value chain and contribute to  sustainable development.

 Material topic

Climate change

Climate change is Rugvista's most material sustainability topic and is directly integrated into our business strategy, risk management, and long-term competitiveness. Reducing our carbon footprint is a business-critical priority to future-proof the company, meet increasing demands for transparency, and contribute to sustainable development.

Current goals extend to 2030 and are based on scientific methodology to support the Paris Agreement's 1.5-degree goal. Goals achieved ahead of schedule in 2025 will be reviewed and updated in 2026.

Calculation method, boundaries and comparability

Our climate calculations follow the GHG Protocol and cover Rugvista Group according to the principle of operational control. The organizational boundary encompasses our own operations and relevant emissions within the value chain, including those related to suppliers and raw materials. The calculations are based on emission factors from established sources such as UK DESNZ and Ecoinvent and are updated annually. In 2025, we increased the share of primary data from suppliers and further refined our approach to the collection and calculation of climate data. This has reduced our reliance on secondary data and provided more accurate results that better reflect our actual climate impact.

This year’s outcome shows an overall positive development, largely driven by strengthened data quality and an increased share of primary data. This, in turn, affects comparability with previous years, as historical figures have not yet been recalculated. In 2026, we will establish new base years in conjunction with a revision of several sustainability and climate goals. In this process, we will also recalculate historical comparison figures where relevant to ensure robust and consistent follow-up going forward.

Climate data (Scope 1-3) for the reporting period 2025 has undergone an external independent review by a climate consultant. The review has covered the calculation basis, data sources, and plausibility checks according to the GHG Protocol's methodology. The review covers the climate calculations and not the narrative text in the report. A full account of Rugvista’s climate impact per reporting category can be found at the end of this chapter.

Scope 1 & 2 - Own operations

Scope 1 and 2 cover emissions from company vehicles, energy use in warehouses and offices, and district heating. These emissions account for less than 1% of Rugvista's total climate impact, but represent areas where we exercise direct operational control. In 2025, previous warehouse operations were consolidated into a unified headquarters and logistics center in Malmö. The new facility is constructed in accordance with BREEAM certification requirements. The property is equipped with a solar panel system, enabling the production of renewable electricity and more efficient energy management..

Against the background of the move to a unified headquarters and logistics center in Malmö and the fact that Rugvista's 2030 goal for emission reduction in Scope 1 and 2 has been met ahead of schedule, a new base year and a new emission goal will be established in 2026 to ensure consistent and accurate follow-up.

Scope 3 - Indirect emissions

Scope 3 comprises indirect emissions within the value chain and accounts for approximately 98% of the our climate impact. These include purchased goods and services, energy use at suppliers, upstream and downstream transportation, waste, business travel, and employee commuting.

Scope 3 is primarily driven by emissions in the raw material stage (93%), including the extraction and processing of fibers, followed by factory-related emissions from our manufacturing partners (2.5%). Waste is described in more detail in the section Resource Use and Circular Economy.

Supply chain and material selection

Our work with Scope 3 is centered on the three areas where we possess the greatest opportunity to exert an impact: material selection, factory-level emissions from suppliers, and transportation. In 2025, we deepened our dialogue with our strategic suppliers and increased the share of primary data in our calculations through enhanced data collection. The work also comprises concrete preparations for the introduction of Digital Product Passports (DPP).

The next step is to more accurately correlate material and supplier data to enable prioritization of the right actions, with a rigorous focus on the segments of the value chain that account for the highest emissions.

Certification as an enabler (GRS & RCS)

During the year, Rugvista achieved its own certification according to the Global Recycled Standard (GRS) and the Recycled Claim Standard (RCS), both of which verify the recycled fiber content in our products. For us, this forms the foundation for an unbroken value chain based on trust – from recycled raw materials to the customer receiving their rug.The certification is a strategic enabler that allows us to verify our environmental claims with high precision and communicate transparently with our customers.

Through this initiative, we strengthen our market position and ensure our preparedness for future requirements regarding transparency and product labeling. As a direct result of this work, we expect to begin labeling specific products as certified on our website during 2026, facilitating informed choices for our customers.

Transportation and returns

All transports take place through external logistics partners and we utilize primary data for all flows. This means that our emission calculations are based on actual transport data (such as fuel type, driving distance, and filling degree), which ensures high precision in our CO2 reporting.

In 2025, our total emissions from outgoing transports decreased by 38 percent in absolute terms, despite sales volume increasing by 19 percent measured in square meters sold. This represents a clear decoupling between growth and climate impact in our outgoing transports. The main reason is a strategic transition from air freight to road transport, which reduced emissions from air freight by approximately 59 percent. Changes in our carrier mix during the year also contributed to reducing emissions. Overall, the climate intensity per square meter sold decreased by 48 percent.

As the return rate has increased slightly, we are initiating a cross-functional project in 2026 to analyze the underlying causes and identify measures to mitigate return flows.

We report our emissions per square meter to provide a representative picture of our efficiency, regardless of volume growth. Total climate impact per reporting category can be found at the end of this chapter.

On site in the wool value chain

Wool is one of our most important natural materials, but also the fiber in our range that has the greatest climate footprint. At the same time, upstream traceability in the value chain is often limited, which makes it difficult to fully ensure environmental consideration, social conditions, and animal welfare. In India, where most of our wool originates, the availability of certified wool is currently limited.
To meet these challenges, we initiated a project in 2025 with a focus on increased transparency. Through site visits to Indian sheep farms, washing facilities, and spinning mills, we have gained a deeper understanding of how wool is handled and where the greatest environmental impacts occur. This knowledge makes it possible to work more strategically with improvements, for example through regenerative methods directly at farm level.
The work continues in 2026 together with suppliers and experts. Our goal is to achieve full traceability down to the farm level and thereby take active responsibility for reducing GHG emissions from wool where we can have the greatest impact.

Business travel and employee commuting

At the end of the year, we entered into an agreement with an external travel agency service to ensure compliance with our guidelines and enable systematic follow-up of business travelers' climate impact, including ongoing access to primary emissions data.

To promote more sustainable commuting, we continue to offer subsidized public transportation cards and the opportunity to lease electric bicycles at a favorable price. In connection with the move to new premises, we have also installed more charging stations and offer subsidized charging to facilitate the transition to electric vehicles.

Rugvista's climate impact by reporting category

 Material topic

Resource use and circular economy

Every fiber and every piece of packaging represents an invested resource. For Rugvista, the circular economy entails taking responsibility for how these resources are utilized, preserved, and extended throughout the product's entire life cycle. The circular transformation is characterized by significant complexity and places high demands on strategic prioritization, structured follow-up, and transparent communication with customers, suppliers and the organization.

Framework for circular design

During 2025, we initiated the development of an internal framework – Design for Circularity. The purpose is to establish a structured model for integrating circular principles into design, purchasing, and supplier processes. The work is being carried out incrementally, from analyzing circular potential and regulatory requirements to establishing principles, goals, and practical implementation.

Our unique rugs: Innate circularity meets new requirements

Our handmade, unique rugs represent, in many respects, the most sustainable form of consumption. They are crafted from natural materials, possess a long lifespan, and carry an inherent second-hand value that makes them rarely exit the circular loop. From a resource use perspective, these products are already pioneers.

However, during 2025, we faced challenges in how these unique handicrafts align with future regulatory frameworks and circular certifications. Standardized industrial production models often create complexity for vintage products where each rug has its own history. Our work continues in 2026, where our ambition is to find methods that actually reward our unique rugs rather than excluding them. We aim to ensure that the unique nature of the handicraft is recognized in new standards so that transparency and artisanal traditions can coexist.

Implemented and ongoing circular initiatives 2025

In parallel with our strategic analysis, we have executed concrete actions during the year to reduce resource consumption and increase the share of circular materials in our operations. Below is a summary of both the improvements achieved in 2025 and the ongoing initiatives contributing to enhanced circularity.

Packaging materials

The share of recycled plastic in our own packaging increased from 30 percent to 47 percent. This reduces the use of fossil-based plastic and mitigates emissions within Scope 3.

Suppliers' packaging

During 2025, the share of suppliers using at least 20 percent recycled material in their packaging increased. The change was achieved through structured dialogue with relevant suppliers.

Collaboration with Mjuk

During the year, a partnership was initiated with the circular platform Mjuk. The purpose is to provide rugs with transport damage or aesthetic defects the opportunity for resale as an alternative to disposal.

Rugvista RE:USE

Through our collaboration with Tradera, Customers on the Swedish market can sell their Rugvista rug at no cost via the platform. The initiative facilitates life-cycle extension and supports circular use. The usage is currently limited, but the possibility is available and communicated through our Swedish website.

Waste from own operations

Our internal waste volume is minimal relative to production, but we strive to ensure responsible management where we exercise direct operational control. The majority of our internal waste consists of soft plastic, hard plastic, and corrugated cardboard.

With the relocation to our new warehouse in 2025, we are accelerating our efforts. The building’s BREEAM certification sets stringent requirements for the facility’s waste infrastructure, providing the optimal framework to maximize source separation and mitigate the volume of unsorted waste.

Chart: Waste own operations

Environmental impact in the supply chain

Beyond emissions related to raw materials, a significant portion of our environmental impact occurs in the production stage. This makes close collaboration, clear requirements, and rigorous supply chain monitoring essential. All suppliers, both new and existing, are subject to our minimum requirements. These include that suppliers are socially third-party audited, have signed our Code of Conduct, and comply with our Animal Welfare Policy and REACH Chemical Policy. We also require transparency and information regarding the next tier in the chain (at least Tier 2).

Chemicals and certification

Chemical management is a priority area, driven by both upcoming product information requirements (DPP) and customer expectations. In 2025, 86% (67%) of suppliers of newly manufactured rugs were certified according to OEKO-TEX. For products that still lack external certification, we ensure compliance through testing in independent laboratories. We also support prioritized suppliers in the work of executing and completing relevant certification processes.

Data-driven evaluation and management

In 2025, our annual supplier survey was expanded to strengthen transparency around the origin of raw materials (Country of Origin) and refine data within areas such as energy use, water consumption, and waste management. In 2026, the assessment will be further developed by integrating factory-related environmental impact as a structured parameter in our supplier evaluation. This improves comparability between suppliers and provides a more systematic basis for dialogue and prioritization of actions that mitigate environmental impact in the supply chain.

Audits and handling of deviations

New suppliers are screened based on environmental criteria as part of our onboarding process. All new suppliers during the year underwent such screening. Existing suppliers are monitored through external audits, which include environmental modules with assessment of compliance with environmental legislation, permits, chemical management, and waste management. Identified deviations are addressed through corrective action plans (CAP) with follow-up alongside the supplier.
Significant environmental impact refers to suppliers where screening or audits have identified serious violations of environmental legislation, systematic deficiencies in environmental management, or a risk of significant negative environmental impact. In 2025, no suppliers with significant environmental impact were identified.

Below is the environmental result table for suppliers. It is new for 2025, hence there is no comparison data from previous years.

Supplier assessment and results - Environment

Dialogue for future requirements

In 2025, we visited our prioritized suppliers in India. The purpose was, among other things, to prepare our suppliers for upcoming regulatory requirements while gaining insight into the producers' own perspectives on the transition. The visits provided a deeper understanding of how production is organized and how, for example, production waste is already utilized to a significant extent as a resource.
We also noted that the suppliers in several cases possess more detailed environmental data than has previously been reported. At the same time, it became clear that full transparency throughout the material chain remains a challenge. The work therefore continues in close dialogue with the suppliers to strengthen traceability, transparency, and data quality.