1
Financial statements
TOMRA Annual Report 2022
Accelerating toward
a circular future
Annual Report
2022
2
Financial statements
TOMRA Annual Report 2022
www.mondigroup.com
70
80
90
100
120
160
70
± 2.5
80
± 3.0
90
± 3.0
100
± 3.0
120
± 4.0
160
± 4.0
92
± 3
104
± 3
116
± 3
127
± 4
159
± 4
214
± 5
0
220
± 50
220
± 50
220
± 50
220
± 50
220
± 50
220
± 50
7
93.5
± 1
94.0
± 1
96.0
± 1
97.0
± 1
98.0
± 1
99.0
± 1
4
4.6
± .6
4.6
± .6
4.6
± .6
4.6
± .6
4.6
± .6
5.2
± .6
3
88.0
± 3.0
88.0
± 3.0
88.0
± 3.0
88.0
± 3.0
88.0
± 3.0
88.0
± 3.0
9
112
± 3.0
112
± 3.0
112
± 3.0
112
± 3.0
112
± 3.0
112
± 3.0
Technical Data:
NAUTILUS® CLASSIC
1
Basis weight
g/m²
ISO 536
3
Caliper
µm
ISO 534
0
Roughness Bendtsen
ml/min
ISO 8791-2
7
Opacity
%
ISO 2471
4
Moisture abs.
%
ISO 287
23
Brightness UV
%
ISO 2470
29
CIE Whiteness
%
ISO 11475
Product meets EN 12281, requirements for copy paper for dry toner imaging processes and DIN6738, ageing resistance. Production processes
are certified according to ISO 9001, ISO 14001 and OHSAS 18001. Standard measurement uncertainty between laboratories is not incorporated.
SIGNIFICANCE OF VALUES: 2 SIGMA
This specification is valid for one year after issue or good till cancelled.
NAUTILUS® Classic combines the authentic recycled
paper shade with the stringent Blue Angel environmental
profile. This 100% recycled paper is optimized for trouble
free printing and copying. Send a visible environmental
message at first glance.
TECHNICAL CUSTOMER SERVICE
29.04.2019
Key Figures 3
Chief Executive Officer’s Review 4
Business Overview 6
Executive Leadership Team 8
Corporate Sustainability Report 10
Corporate Governance Report 32
2022 Summary and Highlights 38
Board of Directors 40
Directors’ Report 42
Financial Statements TOMRA Group 54
Notes TOMRA Group 62
Directors’ Responsibility Statement 88
Financial Statements TOMRA Systems ASA 90
Notes TOMRA Systems ASA 96
Independent Auditor’s Report 110
Alternative Performance Measures 116
Additional information about TOMRA’s organization is available at www.tomra.com.
Design: Tomra | Production: Mac & Alt AS | Photos: TOMRA, Colourbox.com
TOMRA Systems ASA, Drengsrudhagen 2, 1385 Asker, Norway. Telephone: +47 66 79 91 00
This publication is printed on 100% recycled fibers.
Table of contents
2
Table of contents
TOMRA Annual Report 2022
3
Financial statements
TOMRA Annual Report 2022
KEY FIGURES 2022 2021 2020 2019 2018
Operating revenues NOK million 12,188 10,909 9,941 9,346 8,596
EBITA NOK million 1,625 1,769 1,522 1,381 1,253
Operating profit (EBIT) NOK million 1,450 1,552 1,300 1,177 1,078
Profit before taxes NOK million 1,401 1,524 1,070 1,130 1,033
Net profit (profit for the period) NOK million 1,068 1,133 798 858 779
Total assets NOK million 13,932 11,589 10,977 10,867 9,595
Equity NOK million 6,380 5,993 5,429 5,076 5,077
Return on equity % 16,6 19,1 14,8 16,2 15,3
Return on total assets before tax % 11,8 14,4 11,9 11,8 12,0
Earnings per share NOK 3,48 3,70 2,63 2,78 2,50
Earnings per share fully diluted NOK 3,48 3,70 2,63 2,78 2,50
Net cash flow from operating activities NOK million 1,150 1,779 1,710 1,313 1,025
Number of employees as of 31 December 5,015 4,610 4,307 4,328 4,025
Female employees % 23 22 21 21 20
Female managers (of all managers) % 25 24 24 23 22
Number of reportable injuries 147 101 71 142 113
Carbon dioxide emissions Metric tons 39,720 33,920 32,400 36,200 33,000
3
Key figures
TOMRA Annual Report 2022
4
Financial statements
TOMRA Annual Report 2022
The world’s population reached 8 billion in 2022, adding one billion people during the
last 12 years. Decoupling growth and resource use is an obvious and urgent imperative.
For TOMRA, 2022 marked 50 years since the invention of the first reverse vending machine
to solve bottle return in Norway. Today we are proud of having built a broad, global, and
highly relevant business platform, while keeping a strong entrepreneurial spirit.
After the pandemic
2022 started on an optimistic note with the end of the
pandemic in sight for most countries. However, a new
crisis soon unfolded with Russia’s invasion of Ukraine,
followed by economic sanctions, instability in energy
markets and inflation levels not seen in decades at a
global level.
But 2022 was also a year of resilience. Supply chains
stabilized towards the end of the year, businesses
adjusted and found alternatives, and investment
in technology remained high on the agenda. The
circular economy has continued to grow and become
the new desired standard. Significant investment
is being employed in recycling technologies and
better systems for collecting and recovering valuable
materials from waste streams. The food supply chain
has experienced challenges from weather events,
soaring input costs, and geopolitical tensions, among
others. However, technology and automation have
continued to play an important role in improving the
efficiency and resilience of the food supply chain.
In 2022, we have increased our installed base of
reverse vending machines from 81,000 to 82,000 and
are today collecting in a clean loop approximately
45 billion containers. Two new markets rolled out
successful deposit systems during 2022: Slovakia
on January 1st, and Latvia on February 1st. More
effective collection systems are urgently needed to
reduce environmental harm, plastic in our oceans and
waterways, and wasteful use of resources.
According to Circle Economy, a global circular
economy will allow us to fulfill people’s needs with
only 70% of the materials we now extract and use.
We have seen significant investments taking place in
Recycling in 2022. Our order book reached record
levels growing by 37% in 2022 compared to the year
before. But despite important steps taken towards
more recycling, our progress as a global community
towards circularity stays slow. According to the same
study, the world has become less circular, estimated
now at 7.2%, compared to 8.6% in 2020, the negative
trend being attributed to rising material extraction.
The global food demand is projected to rise
significantly as well. The food industry needs to
quickly adapt to climate challenges and the prospect
of producing increasingly higher quality food for
an additional 2 billion more people by 2050. This
will require significant investment and reliance on
technology to both improve yields and to reduce
waste. In 2022, our order intake grew by 7%, mainly
driven by the food service segment gaining traction
in most countries.
In 1972 the first reverse vending machine was
invented in Norway. 2022 marked our 50th
anniversary, a unique moment celebrated together
with the TOMRA founders, Petter and Tore Planke,
and our 5,000 resource revolutionaries around the
world.
2022 in brief
In 2021 we initiated the TOMRA Safe program with the
conviction that all accidents are preventable and an
aim to ensure that a safety mindset is instilled in every
employee and that our safety culture is actively lived
and shared. As a group, our total reportable injuries
increased to 147 from 101 last year, where injuries
resulting in lost time were at the same level as in 2021,
whereas the number of injuries not resulting in lost
time increased, attributable to improved reporting
practices.
We have launched a Diversity, Equity, and Inclusion
strategy, as well as initiatives aimed at promoting
inclusion, working cross-culturally, leadership
development and robust hiring processes.
The demand for our solutions and technologies
continued to grow in 2022. Group revenues were
NOK 12,188 million in the year, representing a growth
of 12% from 2021. A challenging supply situation
and increased sourcing costs impacted earnings
negatively, and EBITA ended at NOK 1,625 million in
2022, a decrease of 8% from 2021. Cash flow from
operations was NOK 1,150 million in 2022, compared
to NOK 1,779 million in the previous year, the result of
4
CEO Review
TOMRA Annual Report 2022
An obligation
to grow
5
Financial statements
TOMRA Annual Report 2022
lower operating profit and higher working capital.
We end 2022 with a solid balance sheet and a
leverage level at 1.2x NIBD/EBITDA. We have been
rated A- by Scope Ratings during 2022 and we plan to
maintain an investment grade status going forward.
A sustainable future
In June 2022 we launched our ambitions and strategic
priorities for the next five years. We target to double
our business in five years through accelerating growth
in our core business while developing new adjacent
opportunities.
Well-designed deposit systems have proven to
be an effective way of improving circularity for
beverage containers. Several countries are in the
process of evaluating and implementing deposit
systems in the next five years. At the same time,
investments in recycling capacity are essential to
achieve sustainable waste management practices
and reduce the dependency on virgin materials.
Increased regulatory requirements weigh favorably on
the market environment for circular solutions. Labor
shortages and an increased need for automating
the food value chain create opportunities in the food
sorting business. Overall, we view the current market
environment as providing good organic opportunities.
Sustainable and profitable growth in core business is
the foundation of our strategy.
Our profitability has been negatively impacted in
2022 and we need to do better. We aim to lift
profitability levels in the medium term, while
continuing to invest in future-oriented activities
to capture growth opportunities and reinforce our
competitiveness in the long term.
Our strategic position today provides interesting
opportunities for developing adjacent businesses
and innovate on more dimensions. One such initiative
which we initiated in 2022 consists of leveraging our
sorting expertise and investing in plastic feedstock
sorting. By providing a high-quality plastic fraction to
recyclers, we help close a quantity and quality gap
in the market, and upgrade material that would have
otherwise been lost to landfill or incineration.
In 2022 we launched our updated sustainability
strategy, with an ambition to double our impact while
being safe, fair, and inclusive. To be successful we are
employing a holistic approach and have set targets
and measurement points for the areas that are most
material to our business. We have committed to
science-based targets that will guide us in our path to
reaching net-zero emissions.
After 50 years in the business, we stand highly
relevant and have built a culture of openness,
learning, and entrepreneurship. We are privileged
to have motivated and engaged employees that live
our purpose and values every day. And every day
brings additional reasons for decoupling growth from
resource use. Significantly more needs to be done.
We are stepping up and are committed to building a
strong and sustainable business that we can continue
to be proud of.
5
CEO Review
TOMRA Annual Report 2022
Tove Andersen
President and CEO TOMRA Systems ASA
6
Financial statements
TOMRA Annual Report 2022
Creating value through three divisions:
TOMRA was founded on an innovation in 1972 that began with the design, manufacturing and sale of reverse
vending machines for automated collection of used beverage containers. Today TOMRA provides technology-led
solutions that optimize resource use and recovery in the food, recycling, and ore sorting industries.
5,000+
EMPLOYEES
12.2
BILLION NOK REVENUES IN 2022
TOMRA’s vision of leading the resource revolution is about transforming how we obtain, use
and reuse our world’s resources.
Leading the resource
revolution
51%
19%
30%
0 %
20 %
40 %
60 %
80 %
100 %
COLLE CTION
REC Y CL I N G
FOO D
53%
28%
19%
0 %
20 %
40 %
60 %
80 %
100 %
COLLE CTION
REC Y CL I N G
FOO D
6
Business overview
TOMRA Annual Report 2022
2022 Revenue 2022 EBITA
7
Financial statements
TOMRA Annual Report 2022
TOMRA Collection
TOMRA Recycling
TOMRA Food
7
Business overview
TOMRA Annual Report 2022
8
Financial statements
TOMRA Annual Report 2022
Executive Leadership Team
MBA from the BI Norwegian Business School (1997); Master
of Science Degree in Physics and Mathematics from the
Norwegian University of Science and Technology NTNU (1994).
Career history: 2021: joined TOMRA as President and CEO;
1997-2021 Yara International ASA; Executive Vice President
Europe (2020-2021), EVP Production (2018-2020), EVP Supply
Chain (2016-2018), as well as diverse management roles with
responsibility for marketing, business development and finance.
Number of TOMRA shares held: 12,772 shares and 20,000
share options.
Board memberships: Publicly listed: Equinor ASA (member),
Borregaard ASA (member).
TOVE ANDERSEN B. 1970
President and CEO of TOMRA Group
B.Sc. Electronics, University of Salford, Manchester (1985).
Career history: 2016: appointed EVP Head of TOMRA
Collection; 2004-2016 TOMRA Systems ASA as CEO and
President TOMRA North America (2011-2016) and SVP
Technology TOMRA (2004-2011); VP Business Unit Tactical
Radio at Kongsberg Defense and Communications AS (2000-
2004), VP Product Management and VP R&D at Kongsberg
Ericsson Communications ANS (1997-2000); Technical
management and project management NFT-Ericsson ANS
(1990-1997).
Number of TOMRA shares held: 87,366.
Board memberships: Non-listed: Jets Vacuum AS (member).
HARALD HENRIKSEN B. 1963
Executive Vice President, Head of TOMRA Collection
Sustainable
development is at the
core of our business
model and strategy
8
Executive Leadership
TOMRA Annual Report 2022
9
Financial statements
TOMRA Annual Report 2022
Executive Master of Management with specialization in tax law,
BI Norwegian Business School (2021) and Bachelor’s degree in
Audit, Oslo Metropolitan University (2000).
Career history: 2022: appointed CFO of TOMRA; 2012-2022
TOMRA Systems ASA; Group Controller TOMRA Group (2018-
2022), Group Controller TOMRA Sorting (2012-2018), as well as
various financial roles in BDO, Aibel, and Fugro.
Number of TOMRA shares held: 3,594.
Board memberships: none.
EVA SAGEMO B. 1975
Chief Financial Officer of TOMRA Group
MSc in Industrial Economics and Technology Management from
the Norwegian University of Science and Technology NTNU
(2009).
Career history: 2022: joined TOMRA as EVP Group Strategy;
2014-2022 Yara International ASA; CFO Yara Europe (2020-
2022), VP Corporate Performance and Risk (2018-2020), CFO
Yara Industrial (2016-2018), Project Leader and later Head of
Group M&A at Yara (2014-2016), as well as experience from
McKinsey & Company (2009-2014).
Number of TOMRA shares held: 1,462.
Board memberships: none.
LARS KVERSØY ENGE B. 1984
Executive Vice President, Head of Group Strategy
PhD in Computer Science, University of Koblenz, Master’s in
Computer Science, University of Paderborn.
Career history: 2019: appointed EVP Head of Tomra Recycling;
2004-2019 TOMRA Systems ASA as Chief Technology Officer
and Head of Business Area Sorting Solutions; prior to joining
TOMRA through the acquisition of TITECH in 2004, he was
founder and Managing Director of Real Vision Systems GmbH
from (1998-2002).
Number of TOMRA shares held: 28,058.
Board memberships: none.
VOLKER REHRMANN B. 1961
Executive Vice President, Head of TOMRA Recycling
Master’s in Management, ESCP Business School and
Bachelor’s in Engineering, University of Clermont-Ferrand.
Career history: 2020: joined TOMRA as EVP Head of TOMRA
Food; 2013-2020 Tetra Pak as Global Director (2018-2020)
and Managing Director France (2013-2018); 1998-2013 Sidel
as EVP Global Life Cycle Management (2008-2013), VP Asia
Pacific (2004-2008) and VP Sales North America (1998-2004).
Number of TOMRA shares held: 9,048.
Board memberships: none.
MICHEL PICANDET B. 1967
Executive Vice President, Head of TOMRA Food
9
Executive Leadership
TOMRA Annual Report 2022
10
Financial statements
TOMRA Annual Report 2022
Sustainability is deeply embedded in TOMRA’s
vision, mission, and company culture. All our
products deliver environmental benefits through
better resource utilization and diverting waste
from ending up in nature. The positive impact
that our solutions have on the environment and
the world around us gives a strong sense of
purpose to our people.
TOMRA is well positioned with regards to key
megatrends affecting the global economy today
and into the foreseeable future. Our solutions
can help address sustainability challenges
related to resource scarcity and depletion,
unsustainable consumption, climate change,
urbanization, and waste in nature. At the same
time, new business opportunities for TOMRA
arise with the increasing global focus on circular
economy, low-carbon transition, food safety
and food security. For us, sustainability is about
maximizing the positive impact that we can
enable through our solutions, while reducing any
negative environmental and social impacts from
our operations or value chains.
We wholeheartedly welcome the fast-
evolving regulatory landscape surrounding
corporate sustainability and increasing
stakeholder expectations. Corporations need
to be leading the way into a greener and
more sustainable economy. We believe that
our responsibility to continuously improve the
sustainability performance of our operations
also brings opportunities. Evolving standards
for transparency, sustainability governance and
reporting, and risk management are driving
innovation and progress across industries.
2022 was a landmark year for TOMRA. As
we celebrated 50 years of enabling resource
efficiency with world leading technology, we
also took a major step on our sustainability
journey. We unveiled our new sustainability
strategy for delivering long-term value and
sustainable growth, including our commitment to
setting science-based targets. In our vision and
strategy for growth at TOMRA, profitability and
sustainability go hand-in-hand, as we believe
both are mutually reinforcing.
Corporate sustainability is a competitive
necessity for us to continue our leading position,
to attract and retain talent, and to deliver the
best solutions for enabling better resource
productivity across a range of industries.
Corporate sustainability
report 2022
10
Sustainability report
TOMRA Annual Report 2022
With an inherently sustainable business model -
enabling better use of resources through our
products - our sustainability challenge at TOMRA
lies in ensuring that we also operate and do
business in a truly sustainable way. To that respect,
I am proud of the commitments we have made
and ambitions set this year to continue leading on
impact and push ourselves to become even better
on sustainability management.™
Nicolai Prytz – Director Sustainability & Strategy
TOMRA Group
“
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Financial statements
TOMRA Annual Report 2022
11
Sustainability report
TOMRA Annual Report 2022
Highlights
of the year
1
st
green bond issue of
NOK 1 billion Senior Unsecured
Green Bonds. Framework received
3rd party rating Dark Green by
CICERO, and governance score
Good.
Life Cycle Assessments
conducted for core products in
each division, benchmarking
lifecycle emissions and hotspots,
informing development of eco-
design principles and circularity
strategies.
New sustainability
strategy launched with
ambitious targets for
material focus areas.
Commitment to setting
science-based climate
targets and a pathway for
Net Zero emissions
by 2050.
Launched three new
business ventures
addressing major
environmental challenges;
TOMRA Feedstock, TOMRA
Reuse, and TOMRA Textiles.
EcoVadis Gold Medal
awarded to production and R&D
facility for TOMRA Recycling and
TOMRA Food.
12
Financial statements
TOMRA Annual Report 2022
Our sustainability strategy
TOMRA launched an updated sustainability strategy
in conjunction with our 50-year anniversary at our
Capital Markets Day in June 2022. As part of this,
we set out a new sustainability ambition with defined
strategic focus area and targets. The ambition sets
the direction for our long-term vision of TOMRA, while
action areas and targets set the agenda for our near
and medium-term priorities along both social and
environmental axes on the path toward achieving
our overarching objectives.
Our three-fold ambition is to lead the resource
revolution, while becoming a fully circular business,
and being safe, fair, and inclusive. In other words,
TOMRA’s ambition is to maximize our positive
contribution of optimizing the use of the planet’s
resources (our handprint), while minimizing our
environmental footprint through stewardship
and innovation. We will continue to pursue social
sustainability and ensure that our employees’ well-
being and ability to thrive at TOMRA remains the
cornerstone of our business.
To make this ambition a reality, we have defined a
set of bold targets, recognizing that the journey to
achieving these will require taking the first steps
without knowing necessarily where the subsequent
steps will lead us. Even with uncertainty regarding
the efforts required to meet our targets and ambition,
we are convinced that this is the direction we must
move in to ensure sustainable growth for TOMRA.
Our targets are all linked to strategic focus areas that
reflect material topics for TOMRA from our materiality
assessment.
Our three-fold ambition is
to be leading the resource
revolution, while becoming
a fully circular business, and
being safe, fair, and inclusive.
Our ambition and targets
12
Sustainability report
TOMRA Annual Report 2022
Resource productivity:
Sustainability impact enabled from TOMRA products
in use (our “handprint”)
Climate impact:
Carbon footprint of our operations and entire value
chain
Sustainable product design:
Product circularity and environmental impact of
TOMRA products across their life cycle
Employee value proposition:
Social impact through being an employer of choice
and making our people thrive
Supply chain sustainability:
Engagement with suppliers to positively influence
more sustainability and reduce ESG risk
The metrics and targets of the five action areas are
subject to regular evaluation and updates as we
progress with implementation, build competency, and
improve our data in the coming years.
Resource
Productivity
Climate
Impact
Sustainable
Product Design
Supply Chain
Sustainability
Employee Value
Proposition
2030
Targets
Our prioritized
action areas
13
Financial statements
TOMRA Annual Report 2022
TOMRA’s sustainability strategy, including our
ambition, strategic focus areas and targets for each of
these, builds on insights gained from the materiality
assessment conducted in 2020 (see page 16).
This exercise helped us to better understand
which environmental, social, and governance (ESG)
issues are most important to TOMRA, taking into
consideration both business impact and stakeholder
expectations. Regular updates are part of the process
to identify and update material topics that should be
elevated in business strategy and reporting.
This process is conducted with a three-step
approach:
1. Value chain impact mapping
2. Stakeholder engagement
3. Materiality
1. Value chain impacts
Mapping our value chain impacts is a process of
identifying all relevant sustainability impacts, including
both risks and opportunities, across the value
chains in each of our divisions. The graphic below
provides a summary of the ESG issues considered
across TOMRA’s value chain. It informs our growing
understanding of the potential business impacts
across a range of areas such as climate change,
resource use, and human rights, and generally in
terms of how our operations may affect the world
around us.
TOMRA Annual Report 2022
Sustainability report
15
Strategic approach
TOMRA’s sustainability strategy – our
ambition, action areas and targets for each
of these – builds on insights gained from
the materiality assessment conducted in
2020 (see page XX or our website for
more information - link to where file is
uploaded). This exercise helped us to
better understand which Environmental,
Social, and Governance (ESG) issues
are most important to TOMRA, taking
into consideration both business impact
and stakeholder expectations. Regular
updates are part of the process to identify
and update material topics that should
be elevated in business strategy and
reporting .
This process is conducted with a three-
step approach:
1. Value chain impact mapping
2. Stakeholder engagement
3. Materiality
Product design
• Sustainable material
selection
• Product circularity
• Design for repairability
and recyclability
• Design for operational
resource eciency
• Human rights
• Labor rights
• Health and safety
• Supply chain GHG
emissions (Scope 3)
• Anti-corruption and
bribery
• Business integrity
Supply chain
• Human and labor
rights
• Health and safety
• Operational GHG
emissions (Scope 1+2)
• Energy use
• Waste generation
• Overstocking/obsolete
parts
• Sustainable packaging
Production
• GHG emissions
from transport and
distribution (Scope 3)
• Anti-corruption and
bribery
• Business integrity
Logistics
• Diversity & inclusion,
attracting and retaining
talent
• Oce sustainability
• Emissions from
business travel and
commuting (Scope 3)
• “Walking the talk”
Sales, marketing &
administration
Customer use phase
(incl. end of life)
• Resource productivity,
• Product energy use
• Product safety
• End-of-life product
management
1. Value chain impacts
Mapping our value chain impacts is a process
of identifying all relevant sustainability
impacts, the risks and opportunities, across
value chains in each of our divisions. The
graphic below provides a summary of the
ESG issues considered across TOMRA’s value
chain. It informs our growing understanding of
the potential business impacts on the supply
chain for a number of issues, including climate
change, resource use, human rights; and how
we have impact on the world around us in the
way that we do business.
Strategic approach
Ill. foto
13
Sustainability report
TOMRA Annual Report 2022
2022 marked a significant step forward for TOMRA, setting
targets for material areas on environmental and social
sustainability, including commitment to setting science-based
targets and a strong focus on Diversity and Inclusion.
With the confidence of the Board and enthusiasm of the
people at TOMRA, the organization has now laid the
groundwork, preparing for important next milestones.
Evolving regulatory landscape, reporting and transparency
requirements, and the need to innovate all ties into the
ambition for sustainable growth that will drive improvements
and successes for TOMRA in the years to come. I look
forward to following this journey and the progress in the
years to come. It is rewarding to be part of a company where
sustainability is such a fundamental part of the business
model.™
Bodil Sonesson – President and CEO at Fagerhult,
Chair of TOMRA Sustainability Committee
“
• Sustainable
material selection
• Product circularity
• Design for
repairability and
recyclability
• Design for
operational
resource
efficiency
• Human rights
• Labor rights
• Health and safety
• Supply chain
GHG emissions
(Scope 3)
• Anti-corruption
and bribery
• Business
integrity
• Human and labor
rights
• Health and safety
• Operational GHG
emissions
(Scope 1+2)
• Energy use
• Waste generation
• Overstocking/
obsolete parts
• Sustainable
packaging
• GHG emissions
from transport
and distribution
(Scope 3)
• Anti-corruption
and bribery
• Business integrity
• Diversity &
inclusion,
attracting and
retaining talent
• Office sustainability
• Emissions from
business travel
and commuting
(Scope 3)
• “Walking the talk”
• Resource productivity
• Product energy use
• Product safety
• End-of-life product
management
14
Financial statements
TOMRA Annual Report 2022
2. Stakeholder engagement
Dialogue and collaboration with our key stakeholders are imperative to understanding and improving TOMRA’s
sustainability impact. Engaging with stakeholders enables us to consider concerns and expectations toward TOMRA
regarding relevant sustainability impacts.
Maintaining contact with our various stakeholders is an important means of building trust in TOMRA, as well as
understanding the role that our company plays in local communities and society at large. We are regularly in
dialogue with key stakeholders to understand what sustainability-related concerns they have, discuss important
topics that relate to TOMRA’s business, and find solutions in partnership. Inclusive collaboration enables much
greater impact than what TOMRA as an organization can achieve on its own.
a
How we bonded/interacted
• Supplier committment to Group
Principles for Suppliers and
Partners, and to Code of Conduct
• Sustainability provisions supplier
self-assessment questionnaire
• Regular dialogue with strategic
suppliers
• Recycling division third party
assessment through EcoVadis
• Ongoing engagement to
understand and reduce emissions
High materiality aspects
• Fair and safe working conditions
• Compliance
• Environmental protection
• Supply chain sustainability
• Ethics & anti-corruption
• Sustainable logistics
• Sustainable packaging
Stakeholder’s expectations
• Collaboration and guidance on
sustainability provisions
• Long-term perspectives and
strategies
• Scope 3 emission reductions
• Innovation to accelerate reducing
climate impact of products
Our responses
• Engagement and dialogue with
strategic suppliers and partners on
sustainability provisions with long-
term perspective (a large share
of suppliers in Recycling division
invited to EcoVadis assessment in
2022)
• Onboarding program for all new
suppliers, including IDD processes
• Annual physical audits of strategic
suppliers
• TOMRA Capital Markets Day
• Responding to selected rating
agency questionnaires
• Dedicated ESG calls and inquiries
• General ESG information provided
on request
• Long-term financial performance
• ESG risk management
• Transparency and reporting
• Sustainable products and services
• Strong focus on governance,
transparency and innovation
• Rapid evolution of sustainability
reporting frameworks the ESRS
and CSRD
• Engagement with ESG rating
providers and own ESG teams in
evaluating the company’s ESG
profile
• Consistent disclosure of ESG
metrics
• Remuneration linked to
sustainability
• Announced committment to setting
Science Based Targets and Net
Zero ambition by 2050
• Announced sustainability strategy
with targets for 2030
• Partial ESG metrics
• EU taxonomy assessments
• Gallup Employee Engagement
Survey
• Launch of Employee Resource
Groups, each sponsored by
member of Executive Leadership
Team
• CEO and Executive Leadership
Team communication with
employees (town halls and
information campaigns)
• Employee engagement and
wellbeing
• Occupational purpose
• ‘Walking the talk’
• Health & Safety
• Diversity, Equity & Inclusion
• Community Engagement
• Engagement on DEI topics
• Engagement on sustainability
topics from top management
• Strong focus on HSE
• Leadership and talent
development
• DE&I physical workshops and
online trainings
• TOMRA Safe program: Safe Place,
Safe People and Safe Processes
• Individual development plans
and leadership development
framework
• Global hybrid working principles
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Suppliers & partners Investors Employees
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As a basis for the materiality assessment and to continuously inform our sustainability work, TOMRA surveys
the groups, organizations and individuals that are either impacted by the company’s operations or which, in a
variety of ways, have an impact on the company’s strategy and goal achievement. The stakeholder groups, key
interactions and material topics for each group in 2022 are summarized in the table below.
• Industry association networks
• Regular customer communication
• Exhibitions and industry trade shows (e.g.,
IFAT, The K, Fruit Logistica, ~200 total for the
Group)
• Engagement of major customers on material
topics
• Direct contact with sales, supply chain,
sustainability and management
• Resource productivity
• Product safety
• Climate impact
• Supply chain transparency and sustainability
• Product circularity
• Product innovation
• Supply chain disruptions
• Increasing number of Collection (B2C)
customers express need for innovative
solutions for increase consumer convenience
• Collaboration on technology development and
innovation
• Solutions that enable operational and
sustainability ambitions
• Production site in Slovakia (combined with
Food and Recycling divisions) won an
EcoVadis Gold Medal
• EcoVadis assessment invitation to strategic
suppliers for Food & Recycling
• Preparedness for compliance with Norwegian
Transparency Act
• Launch of sustainability strategy and targets
for supply chain and product sustainability
• Procurement compliant with REACH and RoHS
Customers
• Participation in global trade associations (WBCSD,
GAA - Equitable Livelihoods, EMF, Friends of
Champion 12.3, and business leaders networks)
• Member and signatory of Business Coalition for a
Global Plastics Treaty
• Dialogue with public authorities on material issues
for TOMRA and our ecosystem
• Publication of thought leadership pieces in industry
communications
• Business ethics
• Human & labour rights
• Transparency & reporting
• Diversity, Equity & inclusion
• Resource productivity
• Sustainable product design
• Climate & energy smart solutions
• Food security
• Circular economy
• Acceleration of actions to reduce greenhouse gas
emissions and address climate change
• Introduction of metrics to describe progress on
sustainability strategic targets
• Contribute with thought leadership and best
practice on circular economy and food security
• Stakeholder collaboration
• Participation in Policy Working Group for Global
Plastics Treaty, core team joined INC1 in Uruguay
• Publication of white papers: EPR Unpacked: A Policy
Framework for a Circular Economy and Advanced
mechanical recycling: Enabling true circularity for
plastics, now
• Resources on industry thought leadership publicly
available at website Circular Economy Resource
Hub, including podcast TOMRA Talks
Public opinion & goverments
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3. Materiality
Insights from the materiality assessment serve to guide our strategic prioritization of sustainability efforts and
resources at TOMRA, identifying our most material issues, both from business and stakeholder perspective.
This assessment enables us to focus our sustainability agenda and actions where they matter most. It serves
as the basis for our five strategic focus areas (in the dark area of matrix below) where we are now planning and
executing actions that will continuously improve our impact for a more sustainable TOMRA.
TOMRA Annual Report 2022
Sustainability report
19
3. Materiality
Insights from the materiality assessment serve to guide our strategic prioritization of sustainability eorts and
resources at TOMRA, identifying our most material issues, both from business and stakeholder perspective. The
materiality assessment is also available on (link to website). This assessment enables us to focus our sustainability
agenda and actions where they matter most. It serves as the basis for our five strategic action areas where we
are now planning and executing actions that will continuously improve our impact for a more sustainable TOMRA.
Importance to stakeholders
Importance to TOMRA (business impact)
Community
engagement
Intellectual
property rights
Product
safety
Human &
labor rights,
own operations
Diversty, equity
& inclusion
Health & safety,
own operations
Employee
value proposition
Workplace
sustainability
Sector &
category impacts
Partnerships for
sustainability
Supply chain
sustainability
Digital innovations
for sustainability
Resource
productivity
Data
privacy
Ethics &
anti-corruption
Sustainable
marketing
Machine
end of life
Operational
resource footprint
Climate
impact
Sustainable
product design
Social
Cross-cutting
Environment
Governance
Most important
Important
Moderately important
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fugiat nulla pariatur.
“
Bodil Sonesson, Board member at TOMRA
In TOMRA, we define corporate sustainability as the
management of business relevant environmental (E),
social (S) and corporate governance (G) issues. With
the recognition that relevant ESG issues occur across
business functions and can have impact on various
parts of the organization, we have taken an integrated
approach to sustainability management, anchored in
the Group Strategy function. This structure ensures
that sustainability is fully integrated in our strategy
development and implementation processes, and
we have introduced quarterly internal reporting on
sustainability KPIs – People, Planet, Profit.
The Group Sustainability function works closely
with dedicated sustainability teams from each
division, representing both strategy, business
development and operations. Delivering on the
sustainability strategy is an integrated part of the
operational responsibility, and it is the responsibility
of TOMRA’s Group Sustainability team to guide
and support operational teams with implementing
and embedding sustainability considerations in
decision-making. Furthermore, it is the responsibility
of the Group Sustainability function to coordinate
sustainability reporting and communication. It is the
responsibility of the divisional sustainability teams
to cascade Group targets, to lead development and
execution of strategy within their division, and drive
implementation efforts.
Cross-divisional collaboration is an important element
of our approach. In 2022 additional resources were
added with new roles assigned for sustainability in
the divisions, and sustainability governance structures
have been updated. Two new governance bodies
have come into effect in 2022: TOMRA Sustainability
Council, and Sustainability Working Group. First, the
Sustainability Council consists of representatives
from Business Development, Group Finance, Strategy
and Group Sustainability, including the Group
CFO. The Council acts as steering group for larger
sustainability projects, provides Group-wide direction
and decisions for sustainability management and
strategy execution, as well as reviewing performance
reporting across the TOMRA Group.
Second, the Working Group is a cross-divisional
team of sustainability leads and selected experts,
that is tasked with coordination and collaboration to
share best practises of strategy implementation and
projects across divisions.
For oversight, we have a Corporate Sustainability
Board Committee, which assists the Board by
Sustainability Governance
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monitoring and reviewing TOMRA’s practices and
policies on sustainability matters, including regular
reviews of progress. It is the role of the Board of
Directors to ensure that the Group’s corporate
governance, environmental, social, and ethical
practices are adequate. Efforts to identify, assess, and
manage sustainability-related risks and opportunities
are largely integrated in the company-wide risk
management process and strategic planning at group
and business unit levels.
TOMRA also has a group-wide Sustainability
Network where colleagues inspire and learn from
each other, and regularly communicate on various
sustainability topics. The goal is to empower local
sustainability champions through sharing important
strategy updates, and support development
and implementation of local initiatives to further
sustainability through local action. This network is
open to all colleagues who wish to join.
As a member of the UN Global Compact (UNGC),
TOMRA aims to consistently support doing
business responsibly and implement the principles
of the UNGC. This report forms part of our annual
Communication on Progress to the UNGC. This report
is structured and inspired by the Global Reporting
Initiative’s (GRI) sustainability reporting framework
and guidance. We are following closely the evolution
of regulatory requirements in the EU regarding new
standards for corporate sustainability reporting, and
are preparing for reporting in compliance with the
new ESRS as of FY2024 reporting.
Other SDGs where TOMRA delivers positive
impact through our products and services include:
SDG 11:
Sorting solutions for sustainable
waste management.
SDG 9:
Technology innovations for
resource productivity.
SDG 14:
Turning off the tap on
land forplastic pollution
through collection
systems and
closed loop recycling.
SDG 2:
Food sorting solutions
that increase
agricultural yield and
reduce food loss along
production and supply
chains.
SDG 13:
Avoiding carbon emissions
from both material production
and waste management through
collection and sorting solutions for
recycling.
SDG 12 – Sustainable consumption and production – aims at
“doing more and better with less.” TOMRA’s vision of “leading
the Resource Revolution” and our mission “to create sen-
sor-based solutions for optimal resource productiv-
ity,” fit squarely within this agenda. All our
business units deliver positive impact on
several of the SDG 12 sub-targets,
including: Sustainably manage
natural resources; reduce food
waste and food loss; prevent
and reduce waste through
recycling and reuse; part-
nerships and education
for sustainable develop-
ment and lifestyles in
harmony with nature.
SDGs 5, 8 and 17:
are supporting, crosscutting goals where we strive to have a positive impact through the way that we work. At TOMRA, we consider
delivering on these SDGs as part of our “license to operate.”
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TOMRA is fully committed to delivering on the UN Sustainable Development Goals (SDGs). As “leaders of the
Resource Revolution,” sustainable development is at the core of our business model and strategy. TOMRA is
a solutions provider in the necessary transition to a resource-efficient, low-carbon economy. With increasing
demand for sustainable products and solutions there are opportunities for us to deliver significant positive
impacts across several of the SDGs. An assessment of our activities reveals one SDG in particular where our
contribution delivers the most impact: SDG 12 - Responsible consumption and production.
TOMRA’s Commitment to the UN Sustainable Development Goals
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Leading the resource
revolution
At TOMRA, our vision is to be Leading the Resource Revolution. Our mission is to transform how we all obtain,
use, and reuse the planet’s resources to enable a world without waste. Optimal resource productivity is a key
lever across industries to reduce adverse environmental impacts, waste less, and maximize value creation.
Each of TOMRA’s divisions add significant value towards resource productivity with their products and services.
The urgent need for transitioning towards a resource-efficient, low-carbon economy opens new business
opportunities for TOMRA, as a solutions provider in this space. Environmental policy intended to increase
recycling and reduce waste can be a catalyst for growth and for innovation at TOMRA.
This chapter describes how our technology and solutions in use enable positive sustainability impact and
emission reductions.
Our handprint - Sustainability impact enabled from TOMRA products in use
The common denominator for all TOMRA products
is that they enable better resource productivity,
which means that they are improving the value and
use of the resources that are extracted from our
planet, in turn enabling positive climate and nature
impacts. Our solutions can help address the negative
consequences of global challenges like resource
scarcity and depletion, unsustainable consumption,
food security, climate change and waste in nature. We
are committed to maximizing the positive social and
environmental impact and sustainable value creation
that we can deliver and enable through our solutions.
Resource productivity is a material focus area
for TOMRA. In 2022 we decided to expand our
sustainability impact by building new business
ventures that address some of the most important
environmental challenges our planet is facing where
TOMRA can have a positive impact.
We have set a 2030 target to double the
emissions avoided enabled by TOMRA
products in use, with supporting targets for
each division as described below.
Recycling
TOMRA Recycling develops sorting technology
for recycling and ore sorting that enables recovery
of valuable materials by extracting higher-purity
fractions from waste streams, to maximize both yields
and profits. Innovating for design and manufacturing
of smart sorting technology to recover valuable
materials from waste and metal stream are important
enablers of the transition towards a circular economy.
This is because it maintains optimal material use and
value, before coming back into circular value chains
as useful resources through collection, sorting and
recycling. The applications range from polymers,
metals, to wood and paper and many more. Our
Recycling solutions enable the creation of high-
quality mono-fractions that support meeting the
increasingly stringent quality requirements (e.g.,
regulations on recycled content in products).
Within the ore sorting industry, TOMRA sorting
technology helps maximize the recovery of valuable
material and minimize the ecological footprint
of ore sorting operations. This is achieved by
separating valuable mineral ores from waste rock,
and by extracting valuable product from previously
discarded material. Ore sorting solutions enables
reduction of up to 3-4 m3 water per ton ore, potential
for substantial reduction in use of chemicals, and a
reduction of energy consumption by up to 50%.
The resource productivity target is by 2030,
to enable a global rate of plastic packaging
collected for recycling to reach 40% and 30%
closed loop recycling.
Collection
TOMRA Collection provides reverse vending
technology that ensures efficient collection of
beverage containers for Clean Loop Recycling and
reuse, so they can be continually recycled back into
new beverage containers, often as part of deposit
return systems. Kept in a closed loop, this helps
reduce the impact of litter in our streets, oceans,
and landfills, and it helps reduce reliance on virgin
materials for producing new containers, which in turn
enables positive climate impact.
When bottles and cans don’t end up in the right
place, they can cause pollution in the sea or waste
in landfills that can take hundreds of years to break
down. Research estimates that at least eight million
tons of plastic ends up in the oceans every year.
Today only two percent of plastic package globally
is recycled in a closed loop, and 1.4 trillion drink
containers are produced each year. TOMRA machines
collected more than 45 billion containers last year.
The long term ambition is to collect 500
billion used beverage containers for
recycling every year.
Resource Productivity
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We feel a strong sense of purpose working with farmers and
food producers. We see the need to continuously innovate in
order to be part of the solution so that our food systems can
promote food security and improved nutrition, both for the
present and future generations.
Stefaan Kennis – Director of Strategy, Market Intelligence &
Sustainability, TOMRA Food
“
Food
TOMRA Food offers sensor-based sorting solutions
and integrated post-harvest solutions. Food sorters
can detect and eject unwanted materials from
manufacturing and processing lines according to their
color, shape, size, structure, and even their biological
characteristics. Our solutions are setting high
standards in food safety and product quality, while
significantly reducing food loss at the production
stage with integrated post-harvest solutions for the
food industry.
The United Nations Food and Agriculture
Organization (FAO)
1
warns that by 2050 global food
demand will increase by about 50%, yet only 20%
more land can be brought into productive use.
This means existing food resources must be used
much more effectively. Reducing food loss and food
waste is critical in order to reduce production costs
and increase the efficiency of the food system, to
improve food security and access to nutrition, and to
reduce adverse environmental impacts.
Food loss occurs along the food value chain starting
from post-harvest losses on the farm up to but not
including the retail stage. This is where TOMRA
Food solutions can enable positive impact – during
the stages of the food value chain where food loss
occurs, by sorting and grading foods to enhance
yields and profits from crops grown.
The resource productivity target for TOMRA
Food is to enable a post-harvest food loss
reduction of 50% by 2030.
TOMRA Horizon
During 2022, TOMRA decided to broaden its business
to also build new business ventures that are adjacent
to our three core divisions. We call this platform
TOMRA Horizon. Each new business venture initiated
under TOMRA Horizon will be focused on solving a
problem our planet is facing and build a profitable
business while doing so. Furthermore, the business
ventures we initiate will build on and complement the
knowledge and technology developed in TOMRA’s
core divisions over decades. In 2022, we initiated
three new business ventures: TOMRA Feedstock,
TOMRA Reuse and TOMRA Textiles.
• TOMRA Feedstock seeks to close the gap in
plastics by enabling the recovery of plastics from
incinerators and operating large scale sorting
plants.
The recovered and sorted plastics will then be of
a quality that enables recycling into new products.
• TOMRA Reuse seeks to facilitate a shift from
single-use packaging to reusable packaging in
cities through building a “Circularity-as-a-Service”
solution for the restaurant, café, and takeaway
food segment.
• TOMRA Textiles seeks to close the gap in fiber-2-
fiber circularity in the textile industry by applying
TOMRA’s leading sorting solution capabilities in
the value chain for textile waste.
Through both our collection and sorting solutions,
TOMRA solutions recover and collect materials at
high volumes, in turn enabling the avoidance of
greenhouse gas emissions. When more materials like
plastics or metals are recycled it significantly reduces
their embedded carbon intensity, both at production
stage (less virgin/raw material input) and in waste
management (diverted from landfill or incineration).
In 2022, the avoided carbon emissions enabled from
TOMRA products in use by customers was just over
21.1 million tonnes of CO2 equivalents, representing
an 8,7% increase from 2021. The total avoided
emissions compare to about 35% of Norway’s
greenhouse gas emissions in 2021.
Partnerships
TOMRA Food became a member of the World
Business Council for Sustainable Development
(WBCSD) in November 2020. The WBCSD is a
global CEO-led organization of over 200 leading
businesses working together to accelerate the
transition to a sustainable world. TOMRA Food is an
active member of the Global Agribusiness Action for
Equitable Livelihoods project, which brings together
companies across the food and agribusiness value
chain to generate business value and social impact.
In 2022 TOMRA Food continued its efforts on
inclusive innovation and technology that addresses
hotspots such as decreasing farm sizes, automation,
digitization, and mechanization.
1) https://www.fao.org/3/CA1553EN/ca1553en.pdf
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Becoming fully circular
TOMRA is committed to operating responsibly and minimizing any negative impacts we might cause,
through internalizing social and environmental considerations in the way that we do business. We believe
that our responsibility to continuously improve the sustainability performance of our operations also brings
opportunities. We have set ambitious targets in our sustainability strategy, including also for our contribution to
reducing impacts related to climate change. This chapter describes how we work to improve and manage the
environmental impacts from our operations in material focus areas, including our ISO certifications.
Our environmental footprint
Climate change is one of the defining issues of
the 21st century. Approaching 1.5° C warming, the
IPCC’s sixth assessment report stresses the need for
swift and substantial emissions reductions to meet
the targets of the Paris Agreement. The window of
opportunity for changing the trajectories of climate
change is rapidly reducing, as global emissions
are reported to have fully bounced back to close
to record highs after the drop seen due to COVID.
As companies, we have a responsibility and an
opportunity to help deliver on the critical 1.5-degree
pathway – and all companies must decarbonize over
the coming decades, irrespective of what sector they
are in.
The impacts of climate change on business
materialize not only as physical climate risks (damages
related to extreme weather and climate events), but
also as transition risk (regulatory and market changes)
and liability risk (legal responsibility towards those
who are adversely affected by climate change). As
any global company, TOMRA is exposed to some
level of physical risk in terms of severe climate events
that could damage business facilities or disrupt supply
chains, or risk of drought and chronic heatwaves that
could regionally affect agricultural viability and as
such have impact on the customer base for TOMRA
Food. Although the general level of climate risk for
TOMRA (both physical, transition, and liability) is
considered relatively low, we did see in 2022 that
extreme and irregular regional weather events had
a negative impact on our business.
Severe floods in Australia hit blueberry orchards,
impacting both crops and pollinators on farms,
reducing production resilience. In New Zealand
both blueberry and kiwi crops were destroyed
by an unseasonably heavy frost late in the year,
significantly impacting parts of TOMRA Food’s
customer base. In Australia, the prolonged La Niña
events which brought record rainfalls and devastating
floods had an impact on the Collection business.
Weather conditions are linked to seasonal variations
of volumes of beverage containers consumed and
returned. These fluctuations have direct impact on
the Collection markets where TOMRA is remunerated
on a per container basis, especially relevant for our
business in the USA, Australia, and the Baltics.
The never seen before floods and rainfall in the
Australian Collection market affected our collection
volumes negatively in 2022.
In line with our ambition to be leading the resource
revolution by increasing the positive climate impact
of our technologies in use, we also need to reduce
our operational emissions. In 2022, we announced
TOMRA’s commitment to setting science-based
emissions reduction targets that align with the Paris
Agreement of well below 2 °C warming, pursuing
1.5 °C. This includes to target net zero greenhouse
gas emissions for the TOMRA Group no later than
2050. As part of the process of joining SBTi we will
work to develop roadmaps for these targets and
establish a Group-wide baseline for Scope 3 indirect
emissions. As we are getting started with this work,
Climate impact and risks
0
5
10
15
20
25
2018 2019 2020 2021 2022
barrels oil / VA
Energy Consumption per unit of value added
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2018 2019 2020 2021 2022
Tonnes CO2 / VA
Greenhouse Gas Emissions from Operations
per unit of value added
0
5
10
15
20
25
2018 2019 2020 2021 2022
barrels oil / VA
Energy Consumption per unit of value added
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2018 2019 2020 2021 2022
Tonnes CO2 / VA
Greenhouse Gas Emissions from Operations
per unit of value added
Energy consumption per unit of value added Greenhouse gas emissions from operations
per unit of value added
20
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we have already set two targets for Scope 1 and
2 emissions reductions in pertinent areas of our
operations.
>80% reduction in operational transport
emissions by 2030 (Scope 1)
100% renewable electricity by 2030
(Scope 2)
TOMRA’s greenhouse gas account for 2022 shows
an 17% increase in total direct emissions from 2021.
Scope 1 emissions increased by nearly 10%, while
Scope 2 emissions remained largely stable. The
largest increase was from scope 3 emissions that
we classify as direct emissions (employee-owned
vehicles and employee air travel). This trend of
increased direct emissions can be attributed to
three main contributing factors. Firstly, we have
made significant improvements in data capture and
quality over the past year, for the benefit of reporting
purposes, strategy implementation, and tracking
progress on KPIs. Improved quality and completeness
partly explain why we see higher emissions compared
to previous year.
Secondly, we saw an increase this year in emissions
from business travel and transportation – a trend
significantly influenced by changes in travel
regulations and restrictions from those during the
height of the Covid pandemic the two previous years.
We see a decrease in domestic travel, but an upswing
in international and inter-continental travel paired
with increased transportation by employee-owned
vehicles. Thirdly, TOMRA has grown significantly
in 2022, increasing our number of employees by
almost 9% and our revenues by 12%. This growth has
increased the footprint of our operations including our
emissions. The eco-intensity of TOMRA’s operations
(our emissions divided by value added to society)
shows a 6% increase, which reflects the increase of
direct emissions as well as the overall growth of the
organization. See climate change account on pages
30-31 for more details.
In 2023 we will continue establishing our full scope
3 baseline and develop science-based emission
reduction targets, seeking target validation by the
Science-Based Target Initiative in 2024.
Sustainable Product Design
In line with optimizing the environmental impact of
our solutions, sustainable product design is one
of TOMRA’s material focus areas. To deliver on
the ambition for TOMRA to become a fully circular
business, we need to manage and reduce any
negative environmental impacts from TOMRA
products across their lifecycle. Our 2030 targets for
sustainable product design are:
Use at least 90% sustainable materials and
components in all new products
Ensure that at least 50% of our products are
circular at their end of life
To achieve this, we need to manage impacts
throughout product value chains until end of life,
establish baselines of environmental impact, and
embed sustainability requirements in product
design and development processes. As a global
manufacturer of high-technology industrial products,
we rely on collaboration across division and
business functions to harmonize implementation in
product development and management that spans
geographies and product categories.
Therefore, in 2022, two Group-wide projects were
conducted. First, a Life Cycle Assessment (LCA) of
one core TOMRA products from each division was
conducted, to benchmark environmental emissions
and analyze product lifecycle hotspots (areas
identified with highest environmental impact).
This provided us with valuable insights on the carbon
footprint of some of our complex products, which will
be instrumental for TOMRA to effectively implement
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Innovating to improve the way we design, manufacture, and
manage the lifecycle of our products is a challenge and
also a catalyst for change throughout TOMRA Collection.
It inspires our people because it is an important part of our
culture to enable a more resource efficient world, while at
the same time it opens up new opportunities for us.”
Christina Ek - Project Manager, TOMRA Collection
“
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actions, evaluate environmental consequences of
design adjustments, and measure progress going
forward. The insights from these LCAs will be
integrated into design principles and product decision
making.
Second, a project to develop a fit-to-purpose
management approach was conducted to support on
integration of holistic sustainability requirements in
TOMRA’s product development. Through thorough
review of our product development processes and
engagement of a wide group of internal stakeholders,
this project identified relevant measures to reduce
the environmental impact of our products. Going
forward, these recommendations will ensure that
both eco-design and circular design principles are
considered from early on in product strategies, to
further support our journey towards becoming a fully
circular business.
Supply Chain Sustainability
Despite a challenging supply chain environment in
2022, we continued our journey on improving our
value chain performance. Supply chain governance is
imperative for any business that wishes to safeguard
fair and safe working conditions, human rights, and
environmental protection in their value chain. Supply
chain sustainability is one of TOMRA’s material
focus areas. As part of our updated sustainability
strategy, we continue our work on integrating more
sophisticated ESG considerations into our supply
chain management. Targets and metrics for this
material focus area will be announced in 2023.
TOMRA Group’s Business Principles for Suppliers
and Partners includes clear expectations towards
suppliers on sustainability matters, including fair and
safe working conditions, human rights, compliance,
and environmental protection.
All TOMRA’s divisions include sustainability criteria
in their supplier qualification processes and ongoing
supplier engagement. Notwithstanding, this is an area
where we will continue the work to harmonize efforts
across the Group. Given the variation in portfolios of
products that each division offers, supply chains and
suppliers also vary to an extent across divisions.
TOMRA Collection
This year, TOMRA Collection evaluated and refined
their Supplier Self-Assessment questionnaire
designed to capture important sustainability
considerations and engage with our strategic
suppliers to leverage synergies and collaboration.
This procedure ensures that our suppliers and
subcontractors share our commitment to social
and sustainability matters. The expectation is
also that these provisions apply to sub-suppliers,
subcontractors, and partners that our suppliers
work with to deliver goods and services to TOMRA.
Environmental provisions include, for example, that
TOMRA Collection encourages all suppliers and
partners to reduce waste from their processes and to
handle any remaining production waste to minimize
negative environmental impacts from production, with
the expectation that suppliers also avoid unnecessary
packaging or use two-way packaging where feasible
for shipments.
Additionally in 2022, TOMRA Collection initiated a
project on ERP management systems integration to
facilitate a future data-driven approach to emission
reduction actions throughout our supply chain,
which will be instrumental for successful mitigation
of TOMRA’s environmental impacts. Collaborating
closely with the Compliance function, work to improve
procedures for human rights and environmental
assessments for high-risk suppliers was initiated
in 2022. As part of TOMRA’s preparedness for the
Norwegian Transparency Act, this remains high on
the agenda also for the year to come.
TOMRA Recycling and TOMRA Food
TOMRA Food and TOMRA Recycling have an
established practice of evaluating important
sustainability considerations in supplier self-
assessments during early stages of procurement
process. In addition to conducting due diligence
on the supplier entity, audits are conducted prior
to engaging with potential suppliers and selected
entities are made part of annual audit plans. For both
TOMRA Food and Recycling, the General Terms &
Conditions attached with all purchase orders and
global framework agreements include sustainability
provisions. These measures, combined with internal
management procedures, once more earned our
production site in Slovakia (combined site for the
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At TOMRA Recycling, we care about the positive
contribution of our solutions to closing material loops.
Reflecting the world around us, we are also committed
to a transformation process in which data access
is one of the important challenges. Together with
suppliers, we are engaged in developing innovative
solutions for reducing the impact of our product
lifecycle.”
Marine Savy - Sustainability Manager, TOMRA
Recycling
“
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TOMRA Annual Report 2022
Food and Recycling divisions) an EcoVadis Gold
Medal rating in recognition of quality in sustainability
management.
In 2022, building on learnings from previous years
as well as leveraging shared practices, TOMRA
Recycling improved their supplier engagement.
Previously, a self-assessment questionnaire designed
to capture important sustainability considerations
has been shared with all strategic suppliers, for the
purpose of due diligence. This year, for the purpose of
engaging with supplier entities on managing material
topics as part of our updated sustainability strategy,
TOMRA Recycling partnered with EcoVadis, elevating
our assessment practices and collaboration with key
strategic suppliers. The top strategic suppliers invited
to participate in the assessment makes up close to
50% of total spend for the division, with a target of
including more next year.
Management systems
(ISO certifications)
TOMRA recognizes the importance and advantages
of certifying to international standards. Standards
are a key element of our quality and environmental
management systems and help us manage risks and
opportunities in a systematic way. Our certifications
improve our ability to match our customers’ needs
and expectations, and to set clear goals and
targets for quality and environmental aspects in our
operations.
TOMRA’s quality and environmental management
systems are based on the international management
systems standards ISO 9001:2015 and ISO
14001:2015. TOMRA was first certified according to
ISO 9001 in 1994, following with ISO 14001 in 1999.
Today, our primary R&D and production units have all
been certified according to ISO 9001. Together, these
account for more than 80% of our operations. The
R&D and production sites in Poland, Germany and
Norway are also ISO 14001 certified. Furthermore, the
sites in Poland and Germany are as of 2022 certified
according to ISO 45001, the standard for occupational
health and safety that has replaced OHSAS 18001.
Also new in 2022 is certification of the TOMRA head
office in Asker, Norway according to ISO 27001:2013
on Information Security Management Systems.
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TOMRA’s culture is based on ethical behaviour and
expects all our employees and partners to act in
the same way. As we continuously work to advance
our Compliance Program, we have made strides
in improving along several axes in the past year.
These include further increasing the accessibility of
our Code of Conduct by translating it to 20 different
languages. In addition, we have delivered Compliance
face-to-face training and engagement sessions across
business operations. Through mandatory training for
all employees, we continue to increase the awareness
of key compliance issues throughout our organization.
To further improve our governance of compliance, we
implemented a new analysis tool in 2022 to support
us with ensuring Integrity Due Diligence procedures
into our business processes for all new customers,
suppliers, and partners. Furthermore, we introduced
new and updated key policies and procedures such
as Business Principles for Suppliers and Partners,
Competition Law, Conflict of Interest, and market
entry procedures, setting the Group standards and
expectations for the whole organization. In 2023,
we will further bolster the Compliance function with
investment towards increasing the size and capacity
of the department.
During the past year, 96% of all TOMRA employees
completed training on our Code of Conduct through
an e-learning course, and six new e-learning courses
have been introduced, covering Anti-Bribery &
Corruption, Competition Law & Antitrust, Confidential
Information & IP and Anti-Money Laundering. Two new
advanced courses on Anti-Bribery and Competition
law were introduced during 2022.
TOMRA continues to work to ensure that Compliance
clauses are part of standard terms and conditions
for all contracts with customers and partners in all
TOMRA subsidiaries including references to the Code
of Conduct and Business Principles for Suppliers &
Partners where relevant. In June 2021, The Norwegian
Parliament passed the Transparency Act requiring
large and mid-sized companies to conduct human
rights and decent work due diligence throughout
business relationships in their value chain. TOMRA
will publish a stand-alone report for its management
of human rights risk in its supply chain in compliance
with the Norwegian Transparency Act.
At TOMRA, we continue to promote openness and
transparency in all our activities. All employees and
business partners are encouraged to report any
violations of TOMRA’s Code of Conduct or other
policies. Since launching our new notification web
portal in 2022, we have seen an increase in cases
that are reported to the Compliance team, as a likely
result of the efforts made to increase awareness
and accessibility of important policies to all TOMRA
employees. This portal for reporting, in addition to the
email ethics@tomra.com, is also available externally
and it is possible to remain anonymous in reporting.
Health & safety
Health and safety is a top priority, and at TOMRA we
never compromise on safety and wellness. Last year,
we elevated our commitment to occupational health
and safety by identifying this as one of TOMRA’s
material focus areas, and we reinforced our divisional
safety teams.
To ensure that we have the necessary capabilities in
place in all divisions to follow through on our renewed
emphasis on health and safety, we launched the
TOMRA Safe program. Building on this foundation,
we have strengthened our health and safety activities
across the TOMRA Group over the course of 2022.
With concerted effort from all three divisions, we
have made important steps towards harmonization
of our Health and Safety processes. By developing
and implementing our first Group-wide annual plan
for Health and Safety action, we have also set the
benchmark against which we strive to improve
continuously.
TOMRA has a value-driven culture, and we strive to provide learning programs and information to employees
and business partners that support our expectations of fair and ethical behavior from all. Robust management
of compliance and corporate governance is important to ensure transparency, continued improvement, and
enable TOMRA employees to conduct their work according to the highest standards. Our success as a company
depends on the commitment, engagement, and skills of our most valuable resource: our people. Fostering
growth and showing care have been important guides for our approach over the past few years.
We recognize the importance of creating an environment that supports our people’s well-being and ensures
they have a safe working environment every day. We take action to promote a work environment that embraces
cultural diversity, equity, and inclusiveness.
Being safe, fair, and
inclusive
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Compliance
25
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TOMRA Annual Report 2022
FR FR
Severe accident & fatality (SIF)
Lost time incident (LTI)
Total recordable injuries (MTI + LTI)
Medical treatment incident (MTI)
Near miss incident (NMI)
2021
0
68
33
2022
4
0.00 0.31
101
14712.44
8.37
4.06
11.46
5.3068
First aid incident (FAI) 220
209
197 171
Near miss incident (NMI)
209
197 171
Hazards identified/reported
1,066 2,324
6.16
79
Frequency Rates (FR) are measured in 1,000,000 work hours
Our target for occupational health and
safety is to strive for zero work-related
injuries and illness in providing a safe
place for people and the environment.
This target is not bound by the 2030 timeline, as
other sustainability targets.
To ensure that a safety culture is actively lived and
shared throughout our organization, we launched
in 2022 our own Safety Day in April - placing safety
awareness firmly on our agenda. In line with our
strategic sustainability target, we have extended the
mission of “Safe Place, Safe People” to include also
“Safe Processes” – integrating safety into everything
we do. In conjunction, we have obtained new ISO
certifications (as described on page 23 under
Management Systems), effectively merging coverage
of production sites for both the Recycling and the Food
division under one common HSE management system.
In parallel to corrective actions taken to improve the
conditions for people at work for TOMRA as part
of “Safe Place,” we improved on safety information
dissemination. In addition to being a core part of
our introduction program for new colleagues, our
safety training e-learning program has been rolled
out in 12 languages to facilitate integration of the
safety culture throughout our global organization.
Additional communication tools were implemented in
2022 to support this same goal, including an internal
information platform with reporting insights and
policies.
Furthermore, as part of the TOMRA Safe program,
KPIs were harmonized across all divisions in 2022.
This enables monthly internal reporting on leading
and lagging indicators on both Group level and
for each of the three divisions. We had 79 medical
treatment incidents (MTI) and a total of 147 lost
time incidents (LTI) in 2022, up from 33 and 101
respectively in 2021. This increase is significantly
influenced by improved reporting on incidents,
elevated awareness of the importance of reporting
throughout the organization, and by organizational
growth, as apparent through the decline in frequency
rate for total reported incidents (TRI).
Through our TOMRA Safe program, we ran internal
campaigns on how to take proactive measures
and established a leading KPI on hazard reporting.
This resulted in an increase of hazards identified
and reported from 1,066 in 2021, to 2,324 in 2022.
Previous years, we reported similar situations as
part of ‘near miss or unsafe situations’, with the
same intent behind our reporting but with a different
classification. This classification did not speak to
the positive and preventative effects of reporting
of hazards that could have potential for becoming
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Frequency Rates (FR) are measured in 1,000,000 work hours.
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TOMRA Annual Report 2022
incidents if left unattended. As such, the increase
in reporting is a highly positive contribution and
preventative measure. We strive to reduce the
injury rate and will continue taking comprehensive
preventative actions in 2023.
In 2022, we regrettably had four severe incidents.
Two of these involved employees working for TOMRA
Food. One incident caused long-term impairment
due to multiple injuries sustained following a
severe car accident. A second incident also caused
long-term impairment from lacerations caused by
entanglement in a conveyor system. One severe
incident in Collection resulted in amputation of a
fingertip caused by getting caught in pulley system.
The final severe incident caused partial to full loss
of eyesight in one eye due to a small flying object
during installation. All employees have received
treatment and are in recovery or have fully recovered.
We strive for zero work-related injuries and are taking
corrective action following these two incidents.
People at TOMRA
With around 5,000 employees engaging with
operations in 96 countries, we have the privilege of
working across diverse cultures and geographies,
within a wide range of sectors. Our business exposes
us to a multifaceted customer base - ranging from the
local farmer, the municipal waste treatment plant, to
large multinational corporations. For us to successfully
bring to life our vision of Leading the Resource
Revolution, we are guided by our core values, and by
our commitment to ensuring a safe, fair, and inclusive
workplace for everyone working for TOMRA.
TOMRA’s core values are viewed as one of the
most critical aspects of our global company culture,
reflecting the expectations for how we conduct
ourselves and our work. Our shared success
depends on the commitment and ability of our people
throughout the widespread TOMRA operations to live
our values of innovation, passion, and responsibility.
People are our most important resource to be able
to deliver on our new strategy and the industry
leadership this requires. Through our culture, we
strive to engage the passion of all by living our values,
showing model leadership, and being innovative in
leading the resource revolution while supporting the
value of diverse perspectives.
Diversity, Equity & inclusion
TOMRA is an equal opportunity employer and
committed to treating all existing and future
employees fairly and with respect. Cultivating an
inclusive and diverse work environment is key to
ensuring that we maximize the advantages of a
diverse workforce and address any practices that may
lead to inequitable treatment. We continue to conduct
regular reviews of our processes and capabilities to
ensure this.
Our Employee Value Proposition is a material topic for
TOMRA, and we have two new targets for being fair
and inclusive:
To sustain growth, TOMRA will attract diverse
talents, with a goal of 50% women and men
joining annually.
TOMRA will grow female representation in
senior management to >30%
Driving inclusion and diversity
In 2022, we have continued the focus of listening
to our employees in order to improve our work
with Diversity, Equity and Inclusion (DEI). We have
done this through employee engagement surveys,
employee check-ins, development conversations,
talent reviews, and exit interviews. These data and
insights have informed our new DEI strategy that we
launched in 2022.
Our strategy for DEI is to unite resource
revolutionaries with unique perspectives, preferences,
abilities, and background, promoting the growth of all.
We will secure this growth for all through equitable
and inclusive processes, development programs,
employee resource groups, conscious recruitment
practices, and building a culture of education on DEI
that supports awareness and safe spaces for all our
employees.
Research shows that underrepresented groups
face unique challenges in their careers, impacting
experiences and opportunities in the workplace.
To help us address the unique challenges that
underrepresented talent at TOMRA may face, we
launched an Inclusive Individual Development
Program, called INCLUDE. This is specifically
developed to drive careers and development
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“
Kristine Berg, Sustainability Manager at TOMRA
TOMRA Annual Report 2022
Sustainability report
13
Highlights
• First green bond issue of NOK 1BN Senior Unsecure Green Bonds. Framework
received 3rd party rating Dark Green by CICERO, and governance score Good
• Life Cycle Assessments conducted for core products in each division, benchmarking
lifecycle emissions and hotspots, informing development of eco-design principles and
circularity strategies.
• Launched new sustainability strategy with ambitious targets for material focus areas.
• Commitment to setting science-based targets and to pathway for Net Zero by 2050.
• Launched three new business ventures addressing major environmental challenges;
TOMRA Feedstock, TOMRA Reuse and TOMRA Textiles.
• EcoVadis Gold Medal awarded to production and R&D facility for TOMRA Recycling
and Food.
Corporate sustainability is a competitive necessity for us to continue winning in the market,
to attract and retain talent, and to remain world-leading as a solutions-provider enabling
better resource productivity across a range of industries.
Representation matters, and our people are our
most valuable resource. Unpacking biases and lived
experiences can be hard work, but it is important work
to make room for diverse perspectives that can make
us more inclusive, more innovative, and more resilient
as an organization.”
Kristine Berg – Sustainability Manager, TOMRA Group
“
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TOMRA Annual Report 2022
opportunities of underrepresented groups across
TOMRA, offering coaching and community-based
learning over a six-month period. Applications for
cycles of the program are open to everyone at
TOMRA.
In 2022, we established our first Employee Resource
Groups (ERGs). These groups build respectful
and caring communities that support each other,
providing a space to share experiences and receive
support from peers and mentors. They are led by
and participated in by employees who share a
characteristic, whether it’s gender, ethnicity, lifestyle,
or interest. Each group is sponsored by a member of
TOMRA’s Executive Leadership. In 2022, we launched
ERGs for LGBTQ+, Women, and Roots across TOMRA.
TOMRA Food rolled out DEI trainings to all 1,500
colleagues in the division, covering pathways from
talent acquisition and allyship, to off-boarding,
including trainings tailored specifically to managers.
At the head office in Norway, TOMRA Collection
facilitated mandatory DEI workshops for all
employees.
We are proud of the many positive local initiatives
in 2022 to strengthen TOMRA’s ability to welcome
all. Our Australian Collection entity has continued
to expand on their efforts to offer equal/equitable
opportunities through their disability program and
working with local organizations that support and
advocate for underrepresented groups. They have
provided employment opportunities to disadvantaged
youth through partnering with Yourtown, a charity
organisation supporting young people, and they
joined a project dedicated to creating a work
environment that is welcoming and inclusive to
members of the LGBTQIA+ community. The Australian
entity also supported their first indigenous trainee
completing their degree through this program.
Increasing female representation
Improving gender distribution and balance is an
important step towards a more diverse, equitable
and inclusive organization. To drive our commitment,
we have set a target for at least 30% female
representation in senior leadership roles by 2030.
We actively monitor female participation in the
workforce. In 2022, women made up 23% of the
workforce at TOMRA, reflecting a 1% increase from
2021. The representation of women in our new
hires in 2022 remained stable at 27%. We did see a
positive evolution of female representation among
all managers at TOMRA (anyone with a direct report),
going up to 25%, reflecting a 1% increase from 2021.
The percentage of women in the TOMRA Executive
Leadership Team remained stable at 33%.
Our target for 2030 is to grow female
representation in senior management to >30%
Wage gap
In 2022, TOMRA reported an average gender wage
gap -3% across the group, for our workforce. The gap
is the smallest in both our European operations (-0.1%)
and our North American operations (-1.4%), where we
combined have almost 80% of employees. The wage
gap is higher in Oceania (-5.1%) and rest of the world
(14.8%). These regional differences are partly driven by
lower female representation at senior levels in certain
geographical regions.
TOMRA’s compensation processes are tailored to
ensure equal pay for work of equal value, regardless
of personal beliefs or any individual characteristics.
We make our compensation decisions supported
by external market references linked to geography,
market dynamics, scarcity of competencies, combined
with performance to narrow the gap.
To close the wage gap coming from access to senior
management roles, we have select equity efforts
linked to accelerating the evolution of our female
talent through enhanced training. In parallel, we invest
in education for all our people and run intensive
training for our leadership community on what DEI
means to TOMRA and what they can personally do
to foster a safe, fair, and inclusive environment. We
maintain our commitment towards becoming a more
diverse, equitable, and inclusive TOMRA.
Recruiting & onbarding
TOMRA has maintained targeted efforts for attracting
and retaining resource revolutionaries across the
world for the unique perspectives and personalities
that they bring. To accommodate the growth and
geographical expansion of our business in line with
our commitment to our value-driven culture, it is
important that we are able to effectively welcome and
onboard new hires, give them the tools they need to
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TOMRA Annual Report 2022
succeed, and provide them with equal opportunities.
In 2022, we welcomed a record number of over 1,400
new colleagues.
Over the course of the year, we have introduced
a range of improvements to local recruiting and
onboarding practices. We acknowledge that each
candidate contact is a potential future customer or
colleague, and we strive to ensure that all are treated
equally, are valued, and respected. We conducted a
group-wide harmonization of our Employer Branding
Guidelines to enhance consistency in communication
with prospective candidates. The German Collection
entity is supporting new hires with a monthly
newsletter in addition to their primary onboarding
practices. TOMRA Food has implemented a structured
survey cycle for certain regions of their operations to
harness feedback about onboarding practices and
trainings, including job satisfaction measures and
review of job expectations. In addition, trainings on
a range of aspects of recruitment and onboarding,
including interview experiences and best practices
for hiring that promotes DEI, has been rolled out to all
hiring managers in the Food division.
Talent & development
As a growing organization, leadership and investing
in the development of our people is an important
enabler for our strategy execution. In 2022 we
have structured and started the roll-out of a set
of leadership development frameworks to ensure
new managers as well as senior managers have the
tools and awareness to create the best conditions
for learning and personal growth. We continue to
leverage our talent review process and succession
management processes across the organization as a
vehicle to support managers and employees.
The talent reviews provide a deeper understanding
of our employees’ development needs, and how to
fast track their growth. Insights from these discussions
are used to develop individual development plans.
In 2022, we also kicked-off a pilot project to define a
Career Level Framework for TOMRA. The objective of
this project is to introduce a job structure supporting
simplified benchmarking and talent management as
foundation of our P&O processes.
With a large and geographically dispersed
organization, online trainings continue to be a
cornerstone of our learning efforts. We have therefore
continued to invest in developing and expanding
our e-learning platform, TOMRA Learn, in 2022. In
addition to these interactive courses, our operations
around the world conduct a series of regional and
local training activities. These include mandatory
trainings on HESQ, leadership development, equal
opportunity & inclusion, supplemented with activities
as per specific local or regional needs.
Ill. foto
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Ill. foto
Ill. foto
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Employee engagement
Providing a working environment that enables our
people to perform their best is essential to our
success. We believe that having engaged employees,
equipped to excel in their work, is fundamental.
We actively listen to our employees, we measure
engagement, and take action to ensure that our
people thrive. Investing in our people and their
individual career paths has been an important topic
on this agenda for 2022.
Connecting
Our Global Hybrid Working Principles supports
flexible work arrangements, while emphasizing the
importance of personal interaction to foster teamwork,
engagement, and innovation. We encourage team
members to discuss openly, share new ideas, voice
concerns, and together shape the future of our
workplace. As our people work across 96 countries,
it is important that we stay connected with respect
and understanding of cultural differences. As one
local initiative in 2022, TOMRA China expanded their
Cross-Culture Excellence program with a local ERG
for employees working remotely. This is an online
community meeting at regular intervals to disseminate
important information and to facilitate a space to
connect outside of daily tasks.
Measuring engagement
We regularly monitor employee engagement to
understand what is important to our employees, and
how we can progress. Using the Global Engagement
Survey, Be Heard, based on the Gallup employee
engagement model, we receive feedback on how the
organization is doing, which in turn informs action.
Employee satisfaction and engagement is a material
topic for TOMRA.
Our target is to improve employee
satisfaction and engagement score.
In 2022, 90% of employees across the Group were
surveyed for employee engagement. While there
were some geographical differences, we improved
our engagement score from 3.84 last year to 3.94
in 2022. This is lower than our target score, but
we acknowledge it is a step in the right direction.
The overall feedback was that we need to work on
engagement and on supporting development of
our people. Throughout our organization, divisions
and regions have taken targeted action to improve
based on insights from the survey, through measures
including trainings, regular engagement reviews, and
improved communication.
In 2022, we refined our reporting practices for KPIs
pertaining to People and Organization, resulting
in increased precision and quality of certain data.
Our employee turnover considers our permanent
employees, calculated by comparing annual number of
leavers compared to average headcount of the year.
The improvements in data processing means that
specific positions in TOMRA Collection are excluded
from the calculations that are not representative for
the workforce due to the nature of the seasonal tasks
performed.
Turnover remained an area of concern in 2022, with
a global turnover of just above 13%
1
. This represents a
0,1% decrease compared to restated numbers for 2021
of just over 13%. Turnover varies significantly from
regions and between the divisions.
Employee wellbeing
Post-pandemic changes to the way we work has
presented us with new challenges as well as
opportunities with regards to safeguarding the
wellness of our people. In acknowledgement of World
Mental Health Day TOMRA ran an internal campaign
throughout October, offering resources, trainings,
and webinars on mental wellbeing to all TOMRA
employees. In TOMRA Food, the North American
region ran community events, wellbeing webinars
and a preventative care challenge for mental health.
The People & Origination team covering our Chinese
business region piloted an Employee Assistance
Program, offering one dedicated resource available to
all divisions under HSE for the region, to support mental
wellbeing and mental health for employees affected
by Covid restrictions and challenges. Additionally, a
working group with representatives from all divisions
and from HSE community has been established to
continue the important work of supporting mental
health initiatives throughout the year.
Community Engagement
Employees around the world also this year
participated in our annual global cleanup effort to
pick up litter in their local communities throughout the
whole month of September. TOMRA allocates a half
day for community service for our employees, which
many spent participating in the cleanup either with an
individual effort, by joining a locally organized event
during work hours, or creating their own event with
local community groups or schools. Logging items
picked up in an app, our colleagues picked up close
to 100,000 pieces – both on land and this year also
underwater. By partnering with local dive clubs in a
few locations, certified TOMRA divers were able to
take the cleanup below sea level.
Although it’s clear that cleanups are necessary for
creating action, awareness, and serves an educational
purpose, TOMRA is working towards a world where
these resources will not be wasted, and cleanups are
no longer required.
1) Excluding hourly redemption centers and seasonal workers.
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Emissions have been calculated using the GHG Protocol calculation
tools (www.ghgprotocol.org). Calculations are based on actual and
estimated consumption.
Data fields marked with an asterisk(*) have been restated from the
Annual Report 2021. For Scope 1 and 2 this is due to increased data
collection within the Tomra Group.
The provision of information on carbon dioxide emission avoidance is
illustrative only, and intended solely as an aid to illustrate the benefit
to society generated by TOMRA Group installations in use by its
customers. The above information does not constitute a full Life Cycle
Analysis.
1. Beverage container collection through RVMs, TOMRA
Collection (Reverse Vending)
Calculated carbon dioxide savings based on the total number of
beverage containers collected through TOMRA’s 82.000 RVM
installations; more than 45 billion units annually.
All glass beverage containers are assumed to be non-refillable, giving
significantly lower assumed weight. Split between packaging types is
based on beverage consumption data and TOMRA estimates.
The full benefit of collecting and recycling the beverage containers
into new material, versus landfill, is included in the calculation.
NOTES
TOMRA Environmental Report 2022
CARBON DIOXIDE EMISSIONS FROM OPERATIONS
TONNES CARBON DIOXIDE 2022 2021
Emission from stationary sources (Scope 1) 2 400 2 200
Heating oil 0 0
Natural gas 2 200 2 000
Propane 200 200
Market-based emission from electricity (Scope 2) 9 200 9 000
Location-based emission (Scope 2) 5 700 5 700
Emission from transportation 28 120 22 720
Petrol vehicles (Scope 1) 3 500 4 300
Diesel vehicles (Scope 1) 14 200 11 800
CNG vehicles (Scope 1) 20 20
Third party vehicles (Scope 3) 4 100 2 900
Air travel (Scope 3) 6 300 3 700
Total direct emissions (tonnes CO2) 39 720 33 920
Emission from products during use-phase
(6)
(Scope 3) 927 200 878 300
RVMs owned and operated by TOMRA and customers 116 500 114 800
Sorters owned by customers 810 700 763 500
Total direct and indirect emissions 966 920 912 220
AVOIDED CARBON DIOXIDE EMISSIONS THROUGH PRODUCT USE
TONNES CARBON DIOXIDE 2022 2021
Beverage container collection through RVMs
(1)
3 977 000 3 632 000
Plastic bottles 1 393 000 1 272 000
Glass bottles 349 000 319 000
Aluminium cans 2 191 000 2 001 000
Steel cans 44 000 40 000
Packaging material transport and handling
(2)
891 500 911 500
Glass bottles 60 000 70 000
Aluminium cans 730 000 740 000
Plastic bottles, PET 100 000 100 000
Other 1 500 1 500
Material sorted for recycling from mixed sources
(3)
16 270 000 14 900 000
Glass 130 000 130 000
Aluminium 6 540 000 5 950 000
PET 4 030 000 3 670 000
HDPE 690 000 630 000
Fiber 380 000 360 000
Non-ferrous metal 1 670 000 1 540 000
Other 2 830 000 2 620 000
Total emission avoidance 21 140 000 19 440 000
Net carbon dioxide emission/(avoidance) (20 170 000) (18 530 000)
*
*
*
*
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2. Packaging material transport and handling, TOMRA
Collection (Material Handling)
Carbon dioxide saving based on the tonnage of beverage container
material transported and handled by TOMRA in USA, Canada and
Australia. The full benefit of collecting and recycling beverage
containers into new material, as opposed to landfill, is included in the
calculation, meaning that some of the saving is also included under
“Beverage container collection through RVMs.”
3. Material sorted for recycling from mixed sources, TOMRA
Sorting (Recycling)
Estimated material throughput in TOMRA Recycling installations is used
in the calculation of avoided carbon dioxide emissions. The full benefit
of sorting materials and recycling into new is included in the calculation.
4. Waste Generation
Data excludes material collected from recycling centers.
5. Water consumption
Includes estimates for locations where data is unavailable.
6. Emission from products during use-phase
When calculating emissions from use-phase we have used market-
based emissions factors per country to calculate tCO2e for both 2022
and 2021. We have also during 2022 performed a life cycle assessment
of the electricity use of some selected TOMRA machines which lead to
a restatement in energy consumption and tCO2e.
ENERGY CONSUMPTION IN MANUFACTURING, SALES, SERVICE AND OPERATIONAL PROCESSES
BARRELS OIL EQUIVALENT 2022 2021
Energy consumption, stationary sources (Scope 1) 7 500 6 800
Heating oil 0 0
Natural gas 7 000 6 300
Propane 500 500
Energy consumption, purchased grid electricity (Scope 2) 12 900 12 400
Energy consumption, transportation 60 000 50 100
Petrol vehicles (Scope 1) 8 600 10 500
Diesel vehicles (Scope 1) 33 000 27 600
CNG vehicles (Scope 1) 100 100
Third party vehicles (Scope 3) 7 600 5 400
Air travel (Scope 3) 10 700 6 500
Total direct energy consumption 80 400 69 300
Energy consumption, products during use-phase (Scope 3) 1 285 300 1 217 400
RVMs owned and operated by TOMRA and customers 158 300 158 300
Sorters owned by customers 1 127 000 1 059 100
Total direct and indirect energy consumption 1 365 700 1 286 700
WASTE GENERATION FROM MANUFACTURING, SALES, SERVICE AND OPERATIONS
TONNES WASTE 2022 2021
Waste generation
(4)
3 115 3 090
Paper, recycled 130 220
Plastics, recycled 1 700 1 300
Wood, recycled 240 230
Electric and electronic waste, recycled 20 140
Metal scrap, recycled 580 660
Hazardous waste, recycled 5 0
Glass, recycled 130 130
Unsorted 310 410
WATER USED BY MANUFACTURING, SALES, SERVICE AND OPERATIONS
CUBIC METRES WATER 2022 2021
Water consumed
(5)
25 300 21 400
Europe 14 200 12 900
North America 5 100 4 400
Rest of World 6 000 4 100
*
*
*
*
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Corporate governance
report
Implementation and reporting of corporate
governance
TOMRA is subject to the requirements of §3-3b
of the Norwegian Accounting Act, the Norwegian
Code of Practice for Corporate Governance and the
Continuing Obligations of Stock Exchange Listed
Companies, which are available at www.lovdata.no,
nues.no and www.euronext.com, respectively.
This report follows the system used in the Code
of Practice of 14 October 2021. The only known
deviation from the Code is described under “General
Meetings” below.
At TOMRA, corporate governance is defined as
the processes and control features that have been
established to protect the interests of TOMRA’s
shareholders and other stakeholders such as
employees, suppliers, and customers.
TOMRA’s Corporate Governance Policy has been
approved by the Board of Directors and is available
on TOMRA’s corporate website (www.tomra.com).
Our values are described in the corporate vision,
mission, core values and policies, which can be
found on the TOMRA website. We aim to lead the
resource revolution, enabling better utilization of the
world’s natural resources, and we are committed to
doing business ethically and with zero tolerance for
corruption. The Board of Directors will ensure that
the company complies with the requirements of the
applicable laws and regulations. To support these
aims, we have developed and implemented a Code of
Conduct. This and further information on our sustain-
ability strategy can be found under “About TOMRA /
Corporate Governance” on the TOMRA website.
Business description
TOMRA is a leading global supplier of sensor-based
solutions for optimal resource productivity within the
business areas reverse vending, material recovery,
recycling, ore sorting, and food. The Directors’
Report describes the Group’s activities in more detail,
including goals and main strategies.
Board of Directors’ defines clear objectives,
strategies, and risk profiles for the company’s
business activities. The company’s compliance with
these objectives, risks profile and strategy, as well as
the adjustments of them, are monitored by the Board
of Directors throughout the year.
The Articles of Association are published on
www.tomra.com.
Equity and dividends
As of 31 December 2022, Group equity totaled NOK
6,572 million, up NOK 408 million from last year, with
an equity ratio of 47 percent. TOMRA’s policy is to
distribute between 40 to 60 percent of the Group’s
earnings per share as dividend while maintaining
investment grade. When deciding the annual dividend
level, the Board of Directors takes into consideration
expected cash flows, capital expenditure plans, financ-
ing requirements and the need for appropriate financial
flexibility. For 2021, an ordinary dividend of NOK 1.65
and an extraordinary dividend of NOK 1.35 was paid
out per share. For 2022, the Board of Directors has
proposed an ordinary dividend of NOK 1.80 per share.
The Board of Directors’ authorizations to increase
share capital and to buy back shares are limited to
specific purposes and are granted for a period no
longer than to the next general meeting.
The authorization is given by the Annual General
Meeting. At the 2022 Annual General Meeting, the
Board of Directors was granted the right to acquire
and dispose of up to 1 million treasury shares, for the
purpose of fulfilling the employee share purchase
program. In addition, the Board of Directors was
granted the right to issue up to 29.61 million shares in
connection with any mergers and acquisitions.
The authorizations are shown as number of
shares after the share split 27th May 2022. These
authorizations are valid until the Annual General
Meeting in 2023.
Equal treatment of shareholders and transactions
with close associates
TOMRA has only one class of shares and each share
entitles the holder to one vote. The nominal value is
NOK 0.5.
Transactions in treasury shares have taken place on
the market at stock exchange prices, according to
good stock exchange practice in Norway.
Related party transactions are covered by TOMRA’s
Code of Conduct, which also applies to Board
members. Any member of the Board of Directors or
Corporate governance is important to align the interests of shareholders, management,
employees, customers, and suppliers, and forms the basis for a healthy corporate culture at
TOMRA. The Board of Directors is responsible for corporate governance.
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The Board of Directors
defines clear objectives,
strategies, and risk
profiles for the
company’s business
activities.
Executive Leadership Team should immediately notify
Group compliance if a potential conflict of interest
occurs. There were no material transactions between
the company and related parties that required a third-
party evaluation during 2022.
Freely traded shares
The shares of TOMRA Systems ASA are listed on the
Oslo Stock Exchange and all of the shares confer
equal rights and are freely negotiable. There are no
provisions in the Articles of Association restricting
the free negotiability of shares as long as the insider
regulations are adhered to.
TOMRA’s Long-Term Incentive Plan (LTIP) requires
participants to purchase TOMRA shares equal to 25
percent of the gross amount and restricting the sale
of such shares for three years following the purchase.
General meetings
In accordance with TOMRA’s Articles of Association,
the Annual General Meeting shall be held no later
than the end of June each year, with at least 21 days
written notice given to each shareholder. The 2022
General Meeting was held on the 28th of April as a
hybrid meeting where shareholders could participate
either physically or digitally.
The General Meeting notice is sent to all shareholders
with a known address and is also available on
TOMRA’s website no later than 21 days before the
Annual General Meeting. The meeting notice includes
information regarding shareholders’ rights and
guidelines for meeting registration and voting.
Documents regarding matters to be considered at the
General Meeting are made available in the General
Meeting notice and on TOMRA’s website.
Shareholders have the right to cast votes for
the number of shares owned and registered in
Verdipapirsentralen five working days prior to the
General Meeting.
Shareholders unable to attend the General Meeting
may either appoint a proxy or submit a vote in
advance. The deadline for registration of physical
attendance, advance votes, proxies and instructions
is two working days prior to the Annual General
Meeting.
Shareholders have the right to have matters dealt
with by the General Meeting. The matters have to be
reported in writing to the Board of Directors at the
latest 28 days before the General Meeting.
The Chair of the Board, the President and CEO, the
external auditor and the Chair of the Nomination
Committee will be present at the General Meeting to
the extent the agenda items make such attendance
relevant.
In line with the Code of Practice, the General Meeting
elects an independent person to chair the meeting.
TOMRA does not follow the Code’s recommendation
to vote separately on each candidate nominated
for election to the Board of Directors. This choice
is based on the Nomination Committee’s process
being focused on the combined qualifications and
experience of the proposed members of the Board of
Directors and the Committees, and the voting should
therefore also be combined. In addition, according to
Norwegian law, the Board of Directors must comprise
of at least 40 percent female members.
Nomination committee
According to the Articles of Association TOMRA shall
have a Nomination Committee consisting of two to
four members elected for one year at a time by the
General Meeting. The charter for the Nomination
Committee is approved by the General Meeting.
The Nomination Committee consists of four members,
each elected for one year, i.e., until the General
Meeting in 2023. The composition meets the Code’s
requirements for independence of the majority of the
members. None of the members of the Nomination
Committee are members of the Board of Directors,
nor does the Nomination Committee include the
company’s President and CEO or any other executive
personnel.
The Nomination Committee proposes candidates
for shareholder-elected Board members and its
Chair, candidates for members of the Nomination
Committee and its Chair, and remuneration for the
Board of Directors, the Nomination Committee, and
the Board Committees.
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The Nomination Committee meets with the Chair of
the Board, Board members and the President and
CEO and CFO to evaluate the work and composition
of the Board of Directors.The membership of the
committee and details of how to submit proposals for
new board members are available on www.tomra.com
under “About TOMRA – Board of Directors.”
Board of directors
The shareholder elected Board members are
proposed by the Nomination Committee based on
a number of criteria with the aim of safeguarding the
interests of the shareholders and the company’s
need for competence, capacity and diversity.
All shareholder elected Board members and the
Chair of the Board are ultimately selected by the
shareholders at the Annual General Meeting.
The Board of Directors and the Chair are all elected
for one year at a time (employee-elected members
for two years at a time).
The Board of Directors consists of five shareholders-
elected members, and two members elected
amongst and by the employees in Norway. At
the Annual General Meeting 2023 the number of
employee-elected members will be increased to
three. The composition of the Board of Directors
meets statutory requirements and the Code of
Practice. The majority of the shareholder-elected
members are independent of the company’s
management, main shareholders and important
business associates. The exception is Johan
Hjertonsson, who is President and CEO of Latour AB,
TOMRA’s largest shareholder.
The Annual Report provides information about
Board members’ qualifications, background, share
ownership, and how long they have been members of
the Board of Directors’ of TOMRA.
The Articles of Association do not require members of
the Board of Directors to own shares in the company.
However, the General Meeting has decided that
external board members are required to invest in
TOMRA shares equal to 20% of their annual gross
board fee. The requirement no longer applies once
the value of the shareholding exceeds the gross
annual board fee.
The work of the board of directors
The Board of Directors has prepared instructions
which define the responsibilities and obligations of
the Board of Directors and that comply with the duties
stated in the Public Limited Liability Companies Act.
Board members and the President and CEO cannot
participate in considerations or decisions of matters
of such specific importance to them personally or to
their close associates, where they are considered to
have a direct or indirect personal or financial interest
in the matter. In case of a conflict of interest, the
Board member needs to alert the Chair of the Board
and not take part in addressing that issue.
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Corporate Governance
TOMRA Annual Report 2022
TOMRA’s risk
management system
is designed to ensure
that business activities
are conducted in
compliance with
external and internal
standards and
requirements, and
in a safe and secure
manner.
35
Financial statements
TOMRA Annual Report 2022
The Board of Directors has established an annual
cycle which includes all planned meetings and a
regular agenda. The annual cycle covers strategic
work, commercial issues and governance. The Board
of Directors meets at least four times a year. In 2022,
six board meetings were held, and the attendance at
the meetings was 95 percent.
The Board of Directors has established three
permanent subcommittees, the Audit Committee, the
Sustainability Committee, and the Compensation &
Organizational Development Committee. The Board
committees consist of members of TOMRA’s Board of
Directors, chosen by the Board of Directors to reflect
a balance of abilities and interests. Charters for each
of the Board committees have been prepared and
duly approved by the relevant body.
Audit Committee
The Audit Committee supports the Board of
Directors in supervision of financial reporting, internal
accounting controls, compliance, and audit matters.
The Audit Committee also evaluates the performance
of the internal audit function.
The committee is chaired by Pierre Couderc with
Hege Skryseth as a member. Hege fulfills the
formal requirements linked to financial expertise in
the committee. The composition of the committee
complies with the requirements in the Code of
Practice for independence and competence.
The Audit Committee held four meetings during 2022.
The participation rate in the meetings was 88 percent.
Sustainability Committee
The Sustainability committee supports the Board of
Directors in supervision of sustainability ambitions
and targets. The committee ensures sustainability is
embedded in all strategy planning for future growth
and reviews the sustainability reporting.
The committee is chaired by Bodil Sonesson with
David Williamson and Gigi Portela as members.
The Sustainability Committee met twice during 2022
and had a participation rate of 100 percent.
Compensation & Organizational Development
Committee
The Compensation & Organizational Development
Committee supports the Board of Directors in
reviewing the performance and remuneration of the
President and CEO, CFO and Executive Leadership
Team. The committee determines TOMRA’s
compensation policy and any share option programs,
bonus programs and relevant pension programs for
senior leadership team. The committee evaluates
the remuneration and other incentive plans for the
Executive Leadership Team and monitor leadership,
development, and succession planning.
The committee is chaired by Johan Hjertonsson
with Bjørn Matre as a member. The committee held
three meetings during the year with 83 percent
participation. The composition of the committee
complies with the Code of Practice and all members
are independent of the Executive Leadership Team.
Internal evaluation by the Board of Directors
The Board of Directors and each of its committees
conduct an annual self-performance evaluation to
determine whether the Board of Directors and each of
its committees are functioning effectively. The review
is discussed with the full Board of Directors once a
year.
Risk management and internal control
The Board of Directors oversees the company’s
internal control and overall risk management and
assurance, and through the Audit Committee, reviews
and monitors the effectiveness of the company’s
policies and practices in such regard. Responsibility
for individual areas of control has been delegated
through the CEO down to the respective members of
the Executive Leadership Team.
Risk Management
The Board of Directors is responsible for approving
the Group’s strategy, its principal markets, and the
level of acceptable risk. Risk management shall
ensure that risks relevant to TOMRA’s objectives
are identified, analyzed, and managed. A sound
risk culture is a prerequisite for a successful risk
management process. The Board of Directors and
its committees monitor and assess risks including
environmental, social, strategic, financial, legal and
operational risks and the associated control measures
put in place to manage them.
The Board of Directors conducts a review of the
Group’s most important risk exposures and internal
control systems at least annually. The risk assessment
is consolidated and reviewed by the Executive
Leadership Team before being submitted to the
Board of Directors.
Control Environment
TOMRA risk management system is designed to
ensure that business activities are conducted in
compliance with external and internal standards and
requirements, and in a safe and secure manner.
The aim is to avoid unwanted incidents while creating
value. The Board of Directors and the Executive
Leadership Team recognize that any controls and
procedures, no matter how well designed and
operated, can only provide reasonable assurance
that the desired control objectives will be achieved,
and that it cannot provide absolute assurance that no
control issues will remain undetected.
TOMRA’s Code of Conduct is an important part of
the internal control systems. The Code of Conduct
and other internal policies are made available for all
TOMRA employees. TOMRA also runs mandatory
global employee training programs. Integrity Due
Diligence process, which covers both existing and
new business partners and activities, is integrated as
part of our internal control procedures.
A Chart of Authority describes each level of authority
throughout the organization. TOMRA has a dual
control principle for approvals, and our ERP systems
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TOMRA Annual Report 2022
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Financial statements
TOMRA Annual Report 2022
enforce this principle. Matters reserved for the Board
of Directors are clearly defined and appropriate
authorization limits and reporting procedures are
implemented.
TOMRA’s internal control framework has been
tailored to the requirements of its individual business
activities. Controls for areas possessing particularly
high inherent risk include clear guidelines for
delegation of authority, segregation of duties, and
requirements for regular reporting and reviews.
Internal systems and procedures related to
sustainability and quality are implemented and
described in more detail in TOMRA’s Sustainability
report on pages 10-31.
TOMRA has established whistleblowing channels
where any unethical behavior or other breach of the
Code of Conduct can be reported. Concerns can be
reported through an online portal, e-mail and phone.
Whistleblowers have full confidentiality, are protected
against retaliation, and may request anonymity.
Such requests will always be respected.
Control Activities
Legal entities submit various reports into the
consolidation system every month. The reports are
then reviewed in monthly meetings. The input from
these meetings forms the basis for the monthly and
quarterly reporting to the Board of Directors. The
Board of Directors reviews the monthly reports and
follows up with management on any actions to
be taken to address identified weaknesses.
TOMRA’s Group Accounting department is
responsible for the preparation of the Financial
Statement and to ensure reporting is carried out
according to applicable laws and regulations and in
accordance with adopted accounting principles.
The Audit Committee assists the Board of Directors
in monitoring the process for identifying, evaluating,
and managing risks. The Audit Committee reviews
the Financial Statement, audit plans for both external
and internal audits, reporting of any identified
weaknesses, and the Compliance program and plans.
The Audit Committee includes two board members,
and all Board members receive minutes from each
Audit Committee meeting.
Information and communication
All internal policies and procedures are made
available to employees on our TOMRA SharePoint
site. The policies are regularly updated and
communicated.
Monitoring Systems
Line management is responsible for monitoring the
internal control routines and for assessing the need
for corrective actions within their responsibility.
The internal audit team performs independent audits
of subsidiaries, as well as reviews of specific themes,
including assessments of risk and the adequacy of
the internal controls. Internal audit reports functionally
to the Audit Committee and administratively to the
CFO. The internal audit team has no direct operational
responsibility or authority over any of the activities
it reviews. While performing internal audits the team
has unrestricted access to all records, personnel, and
property of the company to collect such information
as is necessary for the performance of its tasks.
The external auditor presents the main elements
in the audit and observations on TOMRA’s internal
controls related to the financial reporting process to
the Audit Committee.
The Audit Committee, on behalf of the Board of
Directors, has reviewed effectiveness of the TOMRA’s
systems of internal control for 2022 and the period
leading up to the presentation of the 2022 financial
statements.
Remuneration to members of the board
The General Meeting approves the Board of
Director’s annual remuneration based on a proposal
from the Nomination Committee. The Board of
Director’s remuneration is based on comparable
international entities of TOMRA’s size and complexity
and is not dependent on the company’s financial
results. No share options are granted to the Board of
Directors, however the shareholder-elected Board
members are required to purchase TOMRA shares.
See above under Board of Directors for more details.
No members of the Board of Directors have taken
on any assignments for TOMRA besides the Board
membership, and no remuneration for such additional
services has been received.
Further information on remuneration to Board
members is provided in note 4 and in the
Remuneration Report 2022, available on TOMRA’s
website (Annual General Meeting documentation).
Senior executive remuneration
The Compensation & Organizational Development
Committee monitors decisions and matters regarding
remuneration and terms and conditions for senior
executives. The Board of Directors annually assesses
the President and CEO’s remuneration.
The TOMRA guidelines for remuneration of senior
executives have been approved by the Board of
Directors and contribute to achieving TOMRA’s
long-term goals. The guidelines are available on the
TOMRA website.
Further information on remuneration to senior
executives is provided in note 4 and in the
Remuneration Report 2022, available on TOMRA’s
website (Annual General Meeting documentation).
Both the guidelines and remuneration report are
subject to approval at the General Meeting.
Information and communication
Communication with financial markets is based on
the principles of openness and equal treatment of all
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Financial statements
TOMRA Annual Report 2022
TOMRA has established
whistleblowing channels
where any unethical
behavior or other breach
of the Code of Conduct
can be reported.
shareholders. In order to give the public a good basis
for making adequate decisions related to valuation
and trade of the TOMRA share, TOMRA shall provide
accurate, comprehensive and timely information.
TOMRA’s accounting procedures are transparent
and comply with the International Financial Reporting
Standards (IFRS). The Audit Committee monitors
the company’s reporting on behalf of the Board of
Directors.
TOMRA’s annual and quarterly reports contain
information on the various aspects of the company’s
activities. This information is available to interested
parties in the “Investor Relations” section of the
TOMRA website along with the financial calendar for
2023.
The President and CEO, the CFO and Group’s
Investor Relations maintain regular contact with
shareholders, potential investors, analysts, and other
financial market stakeholders.
Takeovers
The Board of Directors will not seek to hinder or
obstruct any takeover bids. In the event of such
bids, the Board of Directors will comply with relevant
legislation and regulations. The Board of Directors will
seek to comply with recommendations in the Code
of Practice, including obtaining a valuation from an
independent expert and making a recommendation
to TOMRA’s shareholders regarding acceptance of
the bid.
Auditor
The independent auditor is elected by the General
Meeting and is responsible for auditing the Group
accounts.
The Board of Directors has delegated to the Audit
Committee to monitor the external auditor, and the
Audit Committee reports the outcome of this work to
the Board of Directors. The external auditor meets
with the Board of Directors annually to present the
assessment of risk, internal control, and the quality
of financial reporting. This also includes a session
without the presence of TOMRA senior management.
The external auditor participates in all Audit
Committee meetings, and presents the audit plan
for the year, a review of TOMRA’s internal control
procedures, any potential weaknesses identified
and proposed improvements. Annually, the external
auditor also confirms its independence.
TOMRA has guidelines for management’s use of the
external auditor for advisory services, tax services,
and other services outside the ordinary audit scope.
The Audit Committee has delegated a pre-approval
right of NOK 2.5 million to the Group CFO for
non-audit services on a yearly basis. The external
auditor regularly reports such services to the Audit
Committee.
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TOMRA Annual Report 2022
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Financial statements
TOMRA Annual Report 2022
38
Summary and Highlights
TOMRA Annual Report 2022
TOMRA Group financial figures
Revenues Gross contribution and margin EBITA and margin
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
1 000
2 000
3 000
4 000
5 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
TOMRA GROUP FINANCIAL FIGURES
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
1 000
2 000
3 000
4 000
5 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
TOMRA GROUP FINANCIAL FIGURES
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
1 000
2 000
3 000
4 000
5 000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
TOMRA GROUP FINANCIAL FIGURES
Revenues amounted
to NOK 12,188 million in
2022, growing by
12 percent compared
to 2021.
39
Financial statements
TOMRA Annual Report 2022
Revenues in 2022 of NOK 12,188 million represent a growth of 12% compared to 2021. Adjusted for currency,
revenues were:
- Up 8% in TOMRA Group
- Up 4% in Collection
- Up 26% in Recycling
- Up 5% in Food.
EBITA margin decreased to 13.3% in 2022 from 16.2% in 2021.
- Negatively impacted by cost inflation in all divisions.
EBITA was NOK 1,625 million in 2022, down from NOK 1,769 million in 2021.
EPS was NOK 3.48 in 2022 compared to NOK 3.70 in 2021, a decrease of 6%.
Cash flow from operations equaled NOK 1,150 million in 2022, down from NOK 1,779 million in 2021.
- Negatively impacted by lower operating profit and higher working capital.
Collection
- Good revenue development in existing markets, highlighting the extension of the Network Operator
agreement in New South Wales, Australia, with 4 additional years until 2026.
- Implementation of deposit systems in new markets materialized into business opportunities (Slovakia, Latvia,
and Romania), which contributed to top line growth in 2022.
- Successful bid for providing reverse vending technology for the upcoming deposit system in Hungary.
Recycling
- Order intake was NOK 2.639 million in 2022, up 30% from NOK 2,032 million in 2021.
- Order backlog increased to NOK 965 million in 2022 from NOK 702 million in 2021, up 37%.
- Positive development driven by legislation, market demand for recycled material and high commodity prices.
Food
- Order intake was NOK 3,658 million in 2022, up 7% from NOK 3,420 million in 2021.
- Order backlog increased to NOK 1,083 million in 2022 from NOK 1,045 million in 2021, up 4%.
- Sustained investments in automation in both the fresh food and processed food segments.
Share price decreased during 2022 to NOK 165.60 from NOK 315.50.
- Adjusted for dividend, the TOMRA stock provided a negative shareholder return of -47 percent in 2022,
following a return of 50 percent in 2021 and 53 percent in 2020.
- The share was split 1:2 on 27 May 2022.
- 132 million shares traded at Oslo Stock Exchange in 2022, up from 100 million in 2021.
The Group ended 2022 with a strong balance sheet and a solid foundation for further growth.
- 47% equity ratio.
- 1.2x Net Interest-Bearing Debt / EBITDA
- The Board proposed an ordinary dividend of NOK 1.80 per share; the dividend for 2021 was NOK 1.65 per
share ordinary dividend and NOK 1.35 per share extraordinary dividend, in total NOK 3.00 per share.
2022 summary and highlights
39
Summary and Highlights
TOMRA Annual Report 2022
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TOMRA Board of Directors
Chair of the Board of TOMRA Systems ASA
since 2022.
B.Sc in Economics and Business
Administration, University of Lund, 1993.
Johan Hjertonsson is President and CEO of
Investment AB Latour since 2019.
Previous experience: CEO of Fagerhult
between 2009-2018, CEO of Lammhults
Design Group between 2007-2009 and
various management positions within The
Electrolux Group between 1990 and 2007.
Number of TOMRA shares held: 7,000.
Other board memberships: Publicly listed:
Alimak Group (chair), ASSA ABLOY AB
(member), Sweco AB (member), Investment
AB Latour (member).
JOHAN HJERTONSSON B. 1968
Chair
Board member of TOMRA Systems ASA since
2013.
Master’s Degree in International Finance,
University of Lund and Konstanz University.
Bodil Sonesson is President & CEO of AB
Fagerhult.
Previous experience: VP Global Sales at Axis
Communications and employment with Lars
Weibull AB.
Number of TOMRA shares held: 3,082.
Other board memberships: Non-listed:
The Swedish Chamber of Commerce in Paris
(member).
BODIL SONESSON B. 1968
Director
Board member of TOMRA Systems ASA since
2021.
Gigi Portela is Product Manager, TOMRA.
Previous experience: roles in marketing
communication, sustainability management,
and corporate social responsibility in
companies in Norway and Brazil such as
Equinor, ArcelorMittal and Vale.
Master’s Degree in Sustainability from the
University of Oslo in Norway and an MBA in
Project Management from the Getulio Vargas
Foundation in Brazil.
Number of TOMRA shares held: 0.
Other board memberships: None.
GILBIA GIGI PORTELA B. 1983
Employee Elected Director
Board member of TOMRA Systems ASA since
2008.
David Williamson is Production Technician –
Robotics, TOMRA.
Previous experience: 2E Ellgard Equipment
and Automatic Systems at Håndverkerskolen
Sønderborg in Denmark.
Qualified Automatic Systems Technician.
Number of TOMRA shares held: 3,664.
Other board memberships: None.
DAVID WILLIAMSON B. 1959
Employee Elected Director
40
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TOMRA Annual Report 2022
41
Financial statements
TOMRA Annual Report 2022
Board member of TOMRA Systems ASA since
2014.
Engineering degree, Ecole Nationale
Supérieure des Mines de Paris, 1982.
Pierre Couderc is Managing Director Trouw
Nutrition Iberia.
Previous experience: CEO and Chair of
Executive Committee, Groupe Euralis
between 2009-2020 and several
management positions within the Danone
Group (1987 to 2008) including General
Manager Asia Pacific (2005-08), General
Manager Danone Mexico (2004-05), and
General Manager Danone Argentina (2002-
04). Executive General Manager at Jose
Cuervo (2008-09).
Number of TOMRA shares held: 3,120.
Other board memberships: none.
PIERRE COUDERC B. 1959
Director
Board member of TOMRA Systems ASA since
2019.
M.Sc. in Economics and Business
Administration from NHH Norwegian School
of Economics (1981), and a Master of Laws
from UiB University of Bergen (1982) with Bar
Exam.
Bjørn Matre is Owner and Chair of Lille Oslo
Eiendom AS and subsidiaries.
Previous experience: Senior Partner at the
Boston Consulting Group (BCG) and Chair of
BCG Europe, Middle East and Africa. Various
leadership roles in the Nordic financial
services industry, prior to working for BCG
from 1989-2018.
Number of TOMRA shares held: 5,192.
Other board memberships: Non-listed Fritzøe
Skoger AS (member).
BJØRN MATRE B. 1960
Director
Board member of TOMRA Systems ASA since
2019.
MBA from NHH Norwegian School of
Economics, Bachelor from BI and College
graduate NITH.
Hege Skryseth is Executive Vice President
of Technology, Digitization and Innovation at
Equinor.
Previous experience: Executive Vice
President of Kongsberg and President
of Kongsberg atech companies such as
Kongsberg, Microsoft Norway and Geodata
(ESRI).
Number of TOMRA shares held: 3,060.
Other board memberships: Publicly listed:
Autostore System (member) and Netcompany
(member).
HEGE SKRYSETH B. 1967
Director
BOARD COMMITTEES
Compensation & Organizational Development:
Johan Hjertonsson (committee chair), Bjørn Matre.
Audit:
Pierre Couderc (committee chair), Hege Skryseth.
Sustainability:
Bodil Sonesson (committee chair),
David Williamson, Gigi Portela.
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Strategic highlights
A key factor in low-carbon growth will be a
decoupling from resource use. The resource-efficient
economy will need a shift in mindset when it comes to
the planet’s scarce resources: nothing is wasted and
natural resources are managed sustainably, with
biodiversity being protected, valued, and restored in
ways that enhance society’s resilience. As a company
that can clearly define its role in a low-carbon
economy, TOMRA is in a robust strategic position.
The shift requires innovation, investment, and
partnerships.
TOMRA’s strategy is focused on profitable growth
with minimal emissions footprint, while being safe, fair,
and inclusive. We believe there are significant growth
opportunities in our core business, driven by
regulatory support for circular economy practices,
sustainability expectations from consumers, as well as
the need for automating and reducing dependency
on labor. In addition, dedicated teams are working on
identifying growth opportunities in adjacent areas
where we can leverage our strategic position and
expertise to build new businesses.
We have set an ambition to achieve double-digit
profitable growth in the next five years, maintain a
strong balance sheet position and return on capital,
and continue to distribute dividends.
Financial Performance
In 2022 we achieved new yearly highs in our
revenues and order intake, with the demand for
Recycling solutions being especially strong in the
year. Despite supply challenges, we have been able
to deliver reliably to our customers and avoided an
adverse impact on sales. Component shortages and
cost increases have affected the margins of all
business divisions. Pricing and cost control have been
strong focus areas, however these efforts have not
offset the additional supply expenses and cost
increases.
Group revenues amounted to NOK 12,188 million in
2022, an increase of 12% compared to 2021. Adjusted
for currency effects, revenues were up 8% in TOMRA
Group, up 4% in Collection, up 26% in Recycling and
up 5% in Food.
EBITA was NOK 1,625 million in 2022, down 8% from
NOK 1,769 million in 2021. The EBITA margin
decreased to 13.3% in 2022 from 16.2% in 2021.
Net financial items were negative NOK 95 million in
2022, compared to negative NOK 94 million in 2021.
Taxes were down in 2022 compared to 2021 at NOK
334 million, due to lower operating profit and a lower
tax rate. The Group’s average tax rate decreased by
1.9 percentage points, to 23.8% in 2022 from 25.7%
in 2021.
EPS was NOK 3.48 in 2022 compared to NOK 3.70 in
2021, a decrease of 6%.
Cash flow from operations equaled NOK 1,150 million
in 2022, compared to NOK 1,779 million in 2021. The
lower operating cash flow was mainly driven by the
reduction in operating profit and higher working
capital. Preparations for equipment roll-out in new
deposit markets and supply volatility drove higher
inventory levels, while receivables increased as a
result of business expansion. Cash flow from
investments was negative NOK 759 million in 2022,
compared to negative NOK 433 million in 2021, a
significant investment being the installed base of
reverse vending machines in Latvia. Cash flow from
financing was negative NOK 198 million compared
to negative NOK 1,261 million, explained by increase
in interest-bearing debt and dividend payments of
NOK 952 million.
Total assets as of 31 December 2022 were NOK
13,932 million, compared to NOK 11,589 million as of
31 December 2021. The equity ratio decreased to 47%
in 2022 from 53% in 2021.
Net Interest-Bearing Debt / EBITDA (rolling 12 months’
basis) was 1.2x at the end of 2022 compared to 0.6x
at the end of 2021.
Dividend
TOMRA aims to distribute 40 percent to 60 percent of
the Group’s earnings per share. When proposing the
annual dividend level, the Board of Directors has
taken into consideration expected cash flows,
investment plans, financing requirements and the
need for appropriate financial flexibility.
The Board of Directors recommends an ordinary
dividend of NOK 1.80 per share for 2022. The
dividend for 2021 was NOK 1.65 per share ordinary
dividend and NOK 1.35 per share extraordinary
dividend, in total NOK 3.00 per share.
TOMRA Systems ASA
Reverse Vending Machines (RVMs) are developed in
Norway and mainly produced by third parties in
Poland and at the wholly owned subsidiary Tomra
Production AS in Norway. The machines are sold via
the parent company to subsidiaries and distributors,
primarily in Europe, North America, and Australia.
DIRECTORS’ REPORT 2022
42
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TOMRA Annual Report 2022
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
NOK
Ordinary Extraordinary
Dividend
43
Financial statements
TOMRA Annual Report 2022
The resource-
efficient economy
will need a shift in
mindset when it
comes to the planet’s
scarce resources.
43
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TOMRA Annual Report 2022
44
Financial statements
TOMRA Annual Report 2022
Activity within the parent company reflects therefore
the level of sales of machines and parts to end-
customers within the RVM segment. The number of
RVMs sold in 2022 decreased compared to 2021.
TOMRA Systems ASA reported revenues of NOK
2,127 million in 2022 compared to NOK 2,181 million
in 2021.
Operating profit in TOMRA Systems ASA decreased
from NOK 299 million in 2021 to NOK 87 million in
2022, mainly due to lower revenues and higher costs.
Net financial items amounted to positive NOK 853
million in 2022, up from positive NOK 453 million in
2021, explained by higher dividends from subsidiaries.
Profit after taxes was NOK 936 million in 2022,
compared to NOK 673 million in 2021.
The 2022 net profit should be allocated as follows:
Dividend: NOK 531.4 million
To retained earnings: NOK 405.0 million
Profit after tax: NOK 936.4 million
The Board of Directors believes that there is no
reasonable cause to question the ability of TOMRA
Group and the parent company to continue its
operations in the foreseeable future and hence
confirms that the accounts have been prepared on a
going concern basis and in accordance with
International Financial Reporting Standards (IFRS) as
adopted by the EU for TOMRA Group and Norwegian
accounting principles (NGAAP) for Tomra Systems
ASA, and that the Group, after the dividend payment,
has sufficient equity and liquidity to fulfill both its
short term and long term obligations.
Collection
TOMRA’s activities within this business area include
the development, production, sale, lease, and service
of automated collection systems, including data
structures that monitor the volume of collected
materials and associated transactions.
TOMRA is the technology leader in the reverse
vending business. Every year, TOMRA facilitates the
collection of more than 45 billion empty cans and
bottles and provides an effective and efficient way of
collecting, sorting, and processing these containers.
TOMRA’s customers within this segment are primarily
in the retail industry in Europe and North America.
This is an industry that is relatively robust to financial
downturns as the consumption of food and beverages
usually remains stable through economic cycles.
Food retail chains in general consider a well-
functioning container return system to be an
important competitive advantage, as consumers tend
to choose the store they visit based on the
convenience and reliability of a store’s return facilities.
This applies both in times of economic upturn and
downturn. With almost 50 percent of the segment’s
revenues originating from service, and a significant
part of new machine sales being replacements, the
year over year change in activities will normally be
limited.
While the traditional models have historically been
focused on the sale and servicing of equipment,
deposit models introduced in Lithuania, New South
Wales, Queensland, Western Australia, and more
recently, Latvia, invite the technology supplier into the
system. In these models, the machine providers act
as an operator that invests and maintains the
ownership in the machine park and receives a fee for
the volume collected through the installed
infrastructure. This entails an investment for TOMRA
in equipment and generates a recurring topline when
the infrastructure is ramped up.
Financial performance
Revenues in 2022 amounted to NOK 6,192 million, up
8% from NOK 5,738 million in 2021. Adjusted for
currency changes, revenues increased by 4%, mainly
driven by the rollout of reverse vending equipment for
the upcoming deposit system in Romania.
EBITA was NOK 946 million in 2022, compared to
NOK 1,117 million in 2021. The EBITA margin decreased
to 15.3% in 2022 from 19.5% in 2021.
Europe
Northern Europe has had solid performance, with
good sales development in all countries and stable
through-put volumes in Lithuania.
On February 1st, 2022, Latvia went live with a
container deposit system for one-way beverage
containers. TOMRA is the equipment provider for the
Latvian system, which is set up as a through-put
model. Volumes in Latvia ramped up during the first
half of 2022 and reached a satisfactory level at the
end of the year.
In Germany, the number of machines installed
normalized after a strong year in 2021, when
equipment replacements accelerated due to renewed
requirements on security mark reading, as well as
deposit expansion to include alcoholic beverages,
juices, and milk-based mixed drinks sold in one-way
plastic packaging and cans.
In The Netherlands we increased the installed base in
2021 after the deposit system was extended to
include small plastic bottles as of July 1st, 2021. During
2022, the activity level normalized and accelerated
towards the end of the year driven by the upcoming
extension to include cans as of January 1st, 2023.
Slovakia went live with the deposit system on January
1st, 2022. Most of the infrastructure was installed in
2021, but equipment sales continued to have a
positive effect during the first quarter of 2022.
Romania has committed to implementing a deposit
system as of November 30th, 2023. During 2022, the
retailers have been preparing for the system
introduction and made investments. For TOMRA, new
equipment sales from Romania contributed positively
to revenue growth throughout 2022.
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North America
Within reverse vending, TOMRA operates with two
business models in North America. One is a sales
model, where machines are sold to the food retail
stores in the same way as in Europe; the other is the
through-put lease model, where TOMRA maintains
ownership of the installed machines and receives
payment based on the number of containers handled
by the machines. In addition to the reverse vending
business, TOMRA picks up, transports, processes,
and sells used beverage containers on behalf of
beverage producers in North-eastern United States
and Canada (Material Recovery).
Volumes were stable in North America overall, at
levels comparable with 2021. The USD strengthening
against NOK had a positive impact on reported
performance.
Australia
In 2017, the TOMRA Cleanaway joint venture secured
a state-wide operator role in New South Wales.
The contract had a duration of five years with an
option to extend for another four years. In May 2022
the contract has been extended for four years, ending
in late 2026. Under the extension, TOMRA Cleanaway
will continue expanding the return network with
approximately 50 return point locations and increase
coverage across New South Wales.
In addition to New South Wales, TOMRA has
operations in the states of Queensland and Western
Australia as of 2018 and 2021, respectively. Through-
put container volumes were stable during 2022 in the
three Australian states, however somewhat negatively
impacted by heavy rainfall during the year.
New markets
The implementation of new deposit systems is a
fundamental driver for growth in Collection.
The creation of new systems, and changes to existing
ones, will consequently impact TOMRA’s performance
significantly. In recent years, an emerging driver for
the discussion around deposit schemes has been the
public-driven push to see reduced littering.
Increased marine littering has been a concern that is
currently driving several initiatives, like the EU Single
Use Plastic Directive, which sets a collection target of
77% on beverage containers made of plastic by 2025,
increasing to 90% in 2029. As a response to the
collection targets, several EU members are evaluating
deposit introduction as deposit systems are viewed
as the most efficient way to significantly increase
collection rates.
Among the potential markets for deposit schemes,
Scotland has approved deposit system regulations
with the implementation set to August 16th, 2023.
Hungary plans to launch its deposit system during
2024 and the scheme operator has selected TOMRA
as one of the technology providers for the system.
The scope of the agreement is between 2,000 and
2,500 reverse vending machines for medium and
large collection points.
In November 2021, Ireland published the regulations
for the upcoming deposit return system, and during
2022 the implementation date has been set to
February 1st, 2024.
Austria amended its Waste Management Law to
transpose the EU Single Use Plastic Directive and
introduce a deposit system on single-use beverage
containers, with the go-live date set to January 1st,
2025.
The state of Quebec in Canada has approved
regulations for the expansion and modernization of its
current deposit system to cover most containers, as
well as increasing and simplifying deposit values.
The commencement date is planned for November
2023.
The states of Victoria and Tasmania in Australia have
announced the preferred deposit system to be a split-
responsibility model and stated their commitment to
implement the scheme during 2023-2024.
TOMRA is assessing the commercial opportunities
in these markets along with the development of the
regulatory frameworks.
Technology highlights
In 2019, we launched the TOMRA R1, a multi-feed
reverse vending machine allowing consumers to pour
in entire bags of containers in one go and offering an
up to five times faster recycling experience.
The R1 machines have received an enthusiastic
response from both consumers and retailers in
Northern Europe, Germany and The Netherlands.
In August 2022, we launched the smallest reverse
vending machine on the market that can recognize,
sort and store glass, plastic, and aluminum beverage
containers in one machine, the M1. The affordable and
compact RVM was developed to fit with the shallower
shelf space of convenience/small stores, given that
several new and upcoming deposit return systems
have included smaller retailers as return points for
drink containers.
TOMRA continues to invest in building a digital
ecosystem around the RVMs, using the data collected
through the installed infrastructure and enabling a set
of digital services. In 2022, TOMRA has further
developed the API offering to enable third party
development and accelerate the digitalization of the
customer experience.
Recycling
TOMRA designs, develops, and customizes sensor-
based sorting solutions that enable the recovery of
valuable materials from waste streams. Such materials
are primarily plastics, non-ferrous metals, paper,
organics, e-waste, wood, textiles, and other
recyclables. Further, sorting is another important step
in upgrading recovered materials to homogenous and
high-quality fractions for recycling. Sensor-based
technology is also employed in the sorting of ores
from waste rock, thus increasing the efficiency and
lifetime of mines.
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Waste generation rates are influenced primarily by
economic development and the degree of
industrialization and urbanization. Generally, the
higher the economic development and rate of
urbanization, the greater the amount of waste
produced. According to researchers from the World
Bank, global solid waste generation is expected to
increase by 70% from 2.0 billion tons in 2016 to 3.4
billion tons in 2050.
Legislative measures focusing on waste reduction
and reuse of resources continue to be implemented.
In addition, market demand for high-quality recycled
material has been fueled by commitments from
brand owners to fulfill their sustainability goals.
The momentum in recycling has been increasingly
positive. The waste sorting and plastic recycling
business is a healthy segment driven by legislation
and the push for circularity. The metal and ore sorting
segments have been positively supported by high
commodity prices and industrial demand.
Financial performance
Revenues in 2022 amounted to NOK 2,376 million, up
26% from NOK 1,881 million in 2021. Currency effects
were not significant and revenue growth adjusted for
currency changes is also 26%. The growth was driven
by good momentum across all segments and most
geographies as well.
EBITA was NOK 493 million in 2022, compared to
NOK 414 million in 2021. The EBITA margin decreased
to 20.8% in 2022 from 22.0% in 2021.
The order intake was NOK 2,639 million in 2022, up
30% from NOK 2,032 million in 2021. This resulted in
an all-time high year-end order backlog of NOK 965
million, up 37% compared to the end of 2021.
Technology highlights
For over 15 years, TOMRA Recycling has been the
leader in advancing aluminum recycling and
processing. In 2022, we launched the new X-TRACT™
machine for precise x-ray sorting of aluminum from
heavy metals, setting a new standard in sensor-based
aluminum sorting. The combination of high precision
sensors, robust mechanics, and software features
allowed the ability to handle composite materials and
overlapping objects, as well as enabling operators to
prioritize sorting for high recovery or high purity
yields. As the industrial sector is increasing its focus
on producing circular metals for a low-carbon future,
the new X-TRACT innovation provides a solution for
recovering high-value materials from complex material
streams and producing high purity, furnace-ready
aluminum fractions.
Food
TOMRA Food designs and manufactures sensor-
based sorting equipment and integrated post-harvest
solutions for the food industry. The technology is
utilized to sort and grade food produce based on
quality, size, and other characteristics, as well as
identifying and removing foreign material. The use of
advanced analytical technology for fresh whole
products and processed food increases productivity,
maximizes output, and minimizes food waste.
TOMRA has a leading position built on the broadest
and deepest technology base, the widest range of
categories and applications, and a comprehensive
geographic reach. This gives the scale needed to
lead the development of new technologies and digital
solutions, combined with the local presence to
support customers where they are.
TOMRA Food’s market is that of high-capacity sorting
and grading solutions in the following food
categories: potatoes, nuts and dried fruit, vegetables
and fresh cut, protein, seeds and grains, citrus,
blueberries, apples, kiwifruit, cherries, and avocados.
The market is a global one, with exposure to North
America, Europe, and Oceania.
Financial performance
Revenues in 2022 amounted to NOK 3,620 million, up
10% from NOK 3,290 million in 2021. Adjusted for
currency changes, revenues increased by 5%, mainly
driven by the potatoes category in the processed
food segment, as well as good demand in the citrus
category for the fresh food segment.
EBITA was NOK 344 million in 2022, compared to
NOK 360 million in 2021. The EBITA margin
decreased to 9.5% in 2022 from 10.9% in 2021.
The order intake was NOK 3,658 million in 2022, up
7% from NOK 3,420 million in 2021. The order backlog
at the end of 2022 was NOK 1,083 million, up 4% from
the end of 2021. Currency changes had a positive
effect on reported performance.
TOMRA Collection financial figures
Revenues
1 500
2 500
3 500
4 500
5 500
6 500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
300
400
500
600
700
800
900
1 000
1 100
1 200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
COLLECTION FINANCIAL FIGURES
Gross contribution and margin
1 500
2 500
3 500
4 500
5 500
6 500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
300
400
500
600
700
800
900
1 000
1 100
1 200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
COLLECTION FINANCIAL FIGURES
EBITA and margin
1 500
2 500
3 500
4 500
5 500
6 500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
300
400
500
600
700
800
900
1 000
1 100
1 200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MNOK
COLLECTION FINANCIAL FIGURES
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Technology highlights
TOMRA Food’s technology and solution development
is focused on our core categories. In 2022 we have
further strengthened our collaboration with
customers, partners, and industry experts to deliver
the most value-adding solutions to the market.
The TOMRA 5C was introduced in June 2022 to
Japan and other markets in the Asia Pacific region
after first being rolled out across Europe and the USA.
The machine delivers a high sorting accuracy by
combining industry-leading sensors and high-
resolution lasers with TOMRA’s unique Biometric
Signature Identification (BSI+) technology, AI machine
learning, and big-data analysis. With BSI+, every
object passing down the processing line is assessed
for color, shape, and biological characteristics. By
looking inside materials with next-generation spectral
imaging, BSI+ contrasts good and bad materials and
can detect smaller defects than conventional spectral
technology. The TOMRA 5C optical sorter won the
Japan Food Journal Awards in 2022 on the basis of
setting new industry standards in accuracy, efficiency,
and ease of use by employing digital tools and AI
technology.
Research and development activities
Research and development activities are a high
priority at TOMRA. R&D has a central role in the
development of the individual technology units and is
closely connected to the local markets to ensure that
we maintain our technological lead.
Recycling and Food share core R&D and the digital
platform TOMRA Insight. The digital portfolio is an
important building block of TOMRA’s success and
allows for the generation of valuable information for
customers, the value chain, and the business alike.
During 2022, the installed base of connected sorters
increased by over 30%, albeit from a relatively low
starting point. We aim to lead this transformation and
deeply integrate digital approaches in core business
to improve productivity and customer experience.
Financial risk
The Board of Directors is focused on ensuring that
there is a systematic and considered approach to
managing risk within all segments of the corporation,
and views this as a prerequisite for long-term value
creation for the company’s shareholders, employees,
and other stakeholders. Opportunities for growth
shall always be assessed against the associated risks.
TOMRA faces normal business risks related to
contractual agreements with, for example, customers
and suppliers. In addition, there are several macro
trends that can affect the industry in which TOMRA
operates. A reduction in recycling targets and
ambitions, as well as falling material commodity
prices, would negatively influence TOMRA as the
need for advanced recycling technology would
become less obvious.
TOMRA’s operations are also influenced by political
decisions, specifically regarding deposit legislation.
Although we are not aware of deposit systems being
abolished in the past, if a country or state decides to
remove an existing deposit system, there will be
limited incentives for TOMRA’s customers to maintain
current or invest in new TOMRA equipment. On the
other hand, the implementation or expansion of
deposit systems in a country or state would create
new growth opportunities for TOMRA.
TOMRA relies on the efficient and uninterrupted
operation of information technology systems and
networks to operate its business. Disruptions to
TOMRA’s systems or networks, such as computer
viruses, security breaches, cyber-attacks, intentional
TOMRA Recycling financial figures
Revenues
0
500
1 000
1 500
2 000
2 500
2019 2020 2021 2022
MNOK
0%
10%
20%
30%
40%
50%
60%
0
200
400
600
800
1 000
1 200
1 400
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
2019 2020 2021 2022
MNOK
RECYCLING FINANCIAL FIGURES
Gross contribution and margin
0
500
1 000
1 500
2 000
2 500
2019 2020 2021 2022
MNOK
0%
10%
20%
30%
40%
50%
60%
0
200
400
600
800
1 000
1 200
1 400
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
2019 2020 2021 2022
MNOK
RECYCLING FINANCIAL FIGURES
EBITA and margin
0
500
1 000
1 500
2 000
2 500
2019 2020 2021 2022
MNOK
0%
10%
20%
30%
40%
50%
60%
0
200
400
600
800
1 000
1 200
1 400
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
2019 2020 2021 2022
MNOK
RECYCLING FINANCIAL FIGURES
TOMRA Recycling quarterly figures
Revenues
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
Order intake
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
Order backlog
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
47
Directors’ report
TOMRA Annual Report 2022
48
Financial statements
TOMRA Annual Report 2022
and unintentional acts, natural disasters, war,
telecommunication failures, energy blackouts could
adversely impact the Group.
Climate change in a business-as-usual scenario poses
increased physical risks for TOMRA’s operations,
customers, and supply chain. The growth in emissions
leads to long-lasting changes in and irreversible
impacts for people and ecosystems. Water scarcity,
flooding, extreme weather events, or climate-related
conflicts could impact TOMRA’s operations and value
chain.
Responsibility for financing, cash management and
financial risk management is handled by Group
Finance. Historically, TOMRA has seldom experienced
losses on accounts receivable, and the company’s
routines concerning credit approval are considered
satisfactory.
TOMRA is exposed to fluctuations in currency
exchange rates. With more than 95 percent of its
income in foreign currencies, a strengthening of
NOK will lead to reduced earnings for the Group
when measured in this currency. Most of the risk is
connected to fluctuations in EUR and USD. TOMRA
takes advantage of forward exchange contracts to
hedge future cash flows in foreign currencies.
With approximately 90 percent of the balance sheet
denominated in foreign currencies, TOMRA’s equity
will also be exposed to changes in currency
exchange rates. To partly offset this effect, TOMRA
aims to place external bank debt in the same
currencies. In addition, TOMRA has implemented the
financial risk management systems one would expect
given the size and complexity of the company’s
operations. A more extensive description of TOMRA’s
internal control procedures and systems for
evaluating financial risk is provided on pages 32-37
in this report.
Sustainability
TOMRA makes a significant contribution to a cleaner
and more sustainable world. Our vision and activities
fit well within the framework of the UN Sustainable
Development Goals (SDGs), and our solutions
contribute towards several of the global goals.
The Board of Directors supports TOMRA’s
membership of the UN Global Compact, which
provides a recognized framework for integrating
sustainability principles into operations and
strategies. This annual report forms the basis of
TOMRA’s Communication on Progress, required
annually by the UN Global Compact.
TOMRA has been measuring and reporting on
environmental performance since 1998. In 2022, we
launched an updated, holistic sustainability strategy
and committed to science-based targets for emission
reduction. Further details of TOMRA’s sustainability
program and environmental impact are presented in
our Sustainability report on pages 10-31 of this report.
The TOMRA Group complies with the Norwegian
Transparency Act that came into effect July 1st, 2022.
The Act requires companies to make sure human rights
and decent working conditions are respected in their
operations and supply chains. The Group entities work
with suppliers and sub-suppliers with a risk-based
approach to address potential violations of human
rights and labor conditions. For further information on
the work and assessments performed please refer to
TOMRA Group’s website www.tomra.com.
EU Taxonomy
TOMRA has conducted an internal assessment of the
eligibility of its activities in the context of the EU
taxonomy regulation. Based on the currently
published screening criteria, TOMRA estimates that
approximately 64% of activities are taxonomy-eligible,
measured as a share of revenues. Activities included
consist of collection of post-consumer beverage
TOMRA Food financial figures
Revenues
2 700
2 800
2 900
3 000
3 100
3 200
3 300
3 400
3 500
3 600
3 700
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 100
1 150
1 200
1 250
1 300
1 350
1 400
1 450
1 500
1 550
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
0
50
100
150
200
250
300
350
400
2019 2020 2021 2022
MNOK
FOOD FINANCIAL FIGURES
2 700
2 800
2 900
3 000
3 100
3 200
3 300
3 400
3 500
3 600
3 700
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 100
1 150
1 200
1 250
1 300
1 350
1 400
1 450
1 500
1 550
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
0
50
100
150
200
250
300
350
400
2019 2020 2021 2022
MNOK
FOOD FINANCIAL FIGURES
Gross contribution and margin
2 700
2 800
2 900
3 000
3 100
3 200
3 300
3 400
3 500
3 600
3 700
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 100
1 150
1 200
1 250
1 300
1 350
1 400
1 450
1 500
1 550
2019 2020 2021 2022
MNOK
0%
5%
10%
15%
0
50
100
150
200
250
300
350
400
2019 2020 2021 2022
MNOK
FOOD FINANCIAL FIGURES
EBITA and margin
TOMRA Food quarterly figures
Revenues
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
Order intake
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
Order backlog
RECYCLING QUARTERLY FIGURES
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
100
200
300
400
500
600
700
800
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
0
200
400
600
800
1 000
1 200
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22
MNOK
48
Directors’ report
TOMRA Annual Report 2022