Sustainability risks
Rugvista’s most significant sustainability risks have been identified through the double materiality assessment and are linked to our focus areas: Planet, People, and Governance. These risks include both environmental and social impacts, as well as financial and business implications for the company.
In addition to business-specific risks, Rugvista is also affected by external factors such as regulatory changes, geopolitical developments, and trends in global supply chains.
Through clear requirements, structured monitoring, and long-term partnerships, we work systematically to identify, assess, and manage these risks. The most material risks and our overall approach to managing them are outlined below.
Focus area Planet
Climate change
Rugvista’s climate impact primarily arises in the value chain, particularly in the production of materials such as wool and cotton, as well as in transport. Increasing regulatory requirements, evolving customer expectations, and climate-related disruptions in the supply chain may affect costs, delivery capability, and long-term competitiveness.
Risk management: Climate targets aligned with the Paris Agreement, ongoing monitoring of emissions across the value chain, and steering of material choices through Rugvista’s material matrix. Climate data is also used in supplier dialogue and follow-up. See the Planet section for more information.
Resource use and circular economy
Rugvista’s products rely on natural raw materials such as wool and cotton. Limited availability, price volatility, or increasing regulatory requirements may affect costs and access to materials in the supply chain.
Risk management: Increasing the share of certified and recycled materials, as well as developing more resource-efficient and circular solutions. Material use is monitored through purchasing data and supplier dialogue. See the Planet section for more information.
Focus area People
Workers in the value chain
Rugvista’s rugs are manufactured by suppliers in several production countries, primarily in India and Turkey. In these regions, there is a risk of inadequate working conditions, including in areas such as occupational health and safety, working hours, wages, and freedom of association. Such issues may affect Rugvista’s reputation, business relationships, and regulatory compliance.
Risk management: All suppliers are required to comply with Rugvista’s Code of Conduct. Compliance is monitored through third-party audits, supplier dialogue, and corrective action plans where deficiencies are identified. Rugvista also conducts its own supplier visits and works with suppliers on improvement plans based on audit results. Audits are primarily conducted within the frameworks of amfori BSCI and Label STEP. See the People section for more information.
Own workforce
Risks related to workload, working conditions, and access to skills may affect employee well-being, engagement, and the company’s long-term development.
Risk management: Working conditions and engagement are monitored through employee surveys, dialogue between managers and employees, and a systematic approach to the work environment. The results are used to inform improvement actions and organizational development.
See the People section for more information.
Focus area Governance
Responsible business conduct and compliance
Failure to comply with laws, regulations, or internal guidelines may lead to sanctions, business risks, and reputational damage.
Risk management: Codes of Conduct for employees and suppliers, internal controls, training initiatives, and established reporting channels. Compliance is monitored through internal controls and supplier audits. See the Governance section for more information.
Corruption and unethical business conduct
Operations in certain supplier regions entail increased exposure to corruption risks in business relationships.
Risk management: Zero tolerance for corruption, clear policies, training initiatives, and an external whistleblowing service for reporting suspected breaches. See the Governance section for more information.
Political and social risks
Geopolitical developments, trade restrictions, conflicts, and social unrest in supplier regions may affect the supply chain, production stability, and delivery capability.
Risk management: Diversification of the supplier base, ongoing risk assessments, and collaboration with external initiatives such as amfori and Label STEP.
See the Governance section for more information.