Best Practices

Climeon AB is a company that produces a heat power system that uses the energy of waste and geothermal heat.

Climeon AB developed a whistleblowing policy that is an example of a sustainable solution in a business situation because it addresses ethical concerns and promotes transparency within the organization.

As stated in their annual report 2021 “Climeon introduced a dedicated whistleblowing function in 2020, which is accessed via the company’s website. The function allows employees, suppliers and also other stakeholders to anonymously report possible misconduct and problems. Reported cases are received by the company’s lawyer and HR function, and then forwarded as necessary to the CEO or Chair of the Board, depending on the nature of the case”.

By providing employees and suppliers with a mechanism to report concerns anonymously and without fear of retaliation, the company fosters a culture of accountability and integrity, which can lead to better decision-making and increased trust from stakeholders.

The policy demonstrates the company's commitment to ethical behavior and creates a sense of trust among employees and suppliers. When employees feel secure reporting concerns, they are more likely to identify and report any issues before they escalate, which can ultimately prevent legal, financial, or reputational damage and risks to the company.

Furthermore, the policy helps to align the company's values with those of its stakeholders, including customers and investors, who may prioritize ethical behavior and transparency when choosing a company to do business with or invest in.

Thus, the whistleblowing policy of Climeon AB addresses the social “S” of ESG. By developing and implementing such policy, the company allows not only its employees but also its investors, suppliers and stakeholders to express their opinion and concerns in a safe environment. This promotes wellbeing and inclusion throughout the whole Climeon’s value chain and increases satisfaction levels. By doing so, the company promotes social sustainability and boosts its productivity, as it is proven that satisfied employees are usually more productive.

Lastly, by involving stakeholders and investors the whistleblowing policy can help the company to build a sustainable and responsible reputation that can lead to long-term success, while promoting transparency within their processes. This also addresses the governance “G” of ESG.

“Social”: Labour standards, employee & stakeholders relations, human rights

“Governance”: transparency and accountability

• Increased employee/stakeholders’ satisfaction and trust levels
• Increased employees’ productivity levels
• Increased reputation of the company

While including the value chain and stakeholders in the decision process is a great idea that promotes positive changes and allows the company to prevent risks, this can comprise challenges such as needing longer periods of time for decision making. The reason for this is that all the requests and reported issues that the stakeholders submit have to be reviewed by the HR department, which then forwards the results to the CEO.

Hence, this implies a longer decision-making process. Nevertheless, the time spent on going through the reported problems can help the company prevent future risks and damage. Hence, investing time on this matter is, in fact, a very positive investment.

Want to save the world? | Contact Climeon. (n.d.). Climeon. https://climeon.com/whistleblower/ (Accessed on 5^th of June 2023)

Climeon. (n.d.). Turning heat into clean electricity | Climeon. https://www.climeon.com/ (Accessed on 5^th of June 2023)

Annual Report 2022. Climeon. https://mb.cision.com/Main/12353/3549442/1566427.pdf (Accessed on 5^th of June 2023)