Equal opportunity
Our continuing objective is to be a truly open and inclusive employer. In this environment, with zero tolerance for discrimination, all employees have equal opportunity to achieve their full potential – resulting in a more diverse workplace.
On this page:
Our rationale for inclusion
We are convinced that a diverse workforce and diverse management groups are positive for our business. Diversity creates value in and of itself, and a balanced workforce improves our chances of recruiting and retaining the best talent and to keep employee engagement. We have identified gender and cultural background to be the areas where the Company could benefit most from an increased diversity focus. We are still well below our Group goal of having at least 40 percent of each gender in senior management. We need to continue to take action and are confident that the initiatives we do now will have an effect in the long run.
Our commitment
We are committed to non-discrimination in all employment practices, policies, benefits and procedures and we work diligently to make sure that all our managers and employees understand that there is zero tolerance for discrimination. Neither employees, nor potential employees, should feel that they are or could be the subject of discrimination at Swedish Match.
At Swedish Match we put equal opportunities first and foremost in our work toward non-discrimination and diversity. We are dedicated to having an open and inclusive work environment where all our employees shall have equal opportunities to achieve their full potential, regardless of personal status. We take a proactive approach for diversity and against structural discrimination and norms that may stand in the way of equal opportunities.
The scope of this focus area is our own operations.
Our goal
Our continuing objective is to be a truly open and inclusive employer. In this environment, with zero tolerance for discrimination, all employees have equal opportunity to achieve their full potential – resulting in a more diverse workplace.
- No employees should feel that they are, or could be, the subject of discrimination at the workplace.
- To have at least 40 percent of each gender in senior management1).
- To increase diversity in cultural backgrounds.
1) Defined as participants in the Company’s Long Term Incentive (LTI) program.
Our approach
Tone from the top for equal opportunity
We believe that the most important element of our efforts is to foster a genuine culture of equal opportunity with the right tone from the top. The Group Management Team (GMT) is fully committed to our equal opportunity efforts. Progress is continuously being monitored and senior managers are mindful to set clear examples that help developing and fostering the culture. Many actions are taken each year to ensure that we create and maintain an inclusive work environment. We continually have initiatives to assess and improve our culture from a diversity perspective. We monitor our succession planning, recruitments and promotions, organize gender equality programs, perform detailed equal pay analyses and conduct other equal employment opportunity efforts. Employee satisfaction and perceived ability to advance and develop are tracked through a global employee opinion survey which also includes parameters on discrimination.
How we achieve equal opportunity
Non-discriminatory promotions and recruitments
The processes for promotions and recruitments are very important aspects of shaping and developing a company culture. They are also key elements in achieving a more diverse workforce. We work hard to make sure that these processes are non-discriminatory. This will benefit our equal opportunity efforts both in the long and short term. We consider it to be strategically important to develop and promote internal personnel and we have been successful in filling many vacancies for senior positions with internal candidates. We, therefore, consider a diverse talent pool to be a key element of achieving a more diverse workforce at the senior management level over time. The GMT thoroughly reviews the pool of often relatively junior talented employees from several perspectives, including diversity, and discuss means to become more effective in ensuring a large and diverse pool of employees with a mixed set of skills that can advance far in the organization. For more immediate effects external recruitment is an important tool. We view every external recruitment as an opportunity to ensure that we scan the entire market for the very best candidate. Experience has taught us that norms and existing structures, (e.g. candidate pools at recruitment firms) mean that we need to be prepared to make extra efforts and extend the search processes in time to ensure that the group of identified candidates becomes more diverse. We challenge our managers to try to have diversity among the final candidates for any position to make sure that we find the most skilled and promising candidate.
Incentives for equal sharing of parental leave
Specifically related to gender balance at senior positions, we have identified that inequality and norms related to parental leave creates structural inequality in several countries and societies where we operate. At Swedish Match, the rules and policies related to parental leave vary from country to country, but the culture of encouraging a more equal sharing of parental leave is promoted from the top.
In Sweden, a policy has been implemented with additional parental leave compensation provided that the employee can show that parental leave has been equally shared with the partner. This will encourage both our male and female employees to share the parental leave equally and in 2020 this policy was updated to create further incentives for equal sharing by employees at the most senior positions.
A diverse and international organization
Swedish Match derives its revenues and earnings mainly from outside Sweden. The Corporate functions, to a large but not complete extent based at the headquarters in Sweden, interact on a daily basis with colleagues across the globe. A diverse and international organization at the headquarters is a clear benefit in this environment. Colleagues from several continents work at the Stockholm headquarters, and the Company is proactively engaging in specific employer branding activities targeted at highly qualified international students.
Zero tolerance for discrimination
We have procedures in place where any employee who feels that there has been a breach of our policy of zero tolerance for discrimination can report such breach. We also make sure that we have procedures in place to ensure that swift action is taken to investigate and resolve any such employee concerns without fear of retaliation.
Our general view on global gender pay gap analyses
At Swedish Match, we generally have a pre-set salary range for each position, which systematically decreases the risk of inequality of pay. We conduct an annual gender pay gap analysis in our larger markets, such as Sweden, but believe that a global gender pay analysis would provide quite limited additional value compared to the work effort and data quality. In some countries where we operate, we only have a small number of employees which provides a very limited number of comparable positions to analyze. Furthermore, due to differences in local pay practices, the salaries for comparable positions and the overall requirements for this type of analysis differ a lot between the countries where we operate. In the US, for example, the focus on equal pay is broader and include criteria such as ethnicity, while in Sweden, this is not possible due to privacy rules.
How we monitor our progress
To follow up on diversity goals throughout the organization, KPIs have been established for the Group. We have a Group goal of having at least 40 percent of each gender in senior management. Gender balance targets, and subject to legal limitations targets relating to cultural background, are also set locally striving for greater balance over time, particularly with regard to more senior levels within the organization. Analysis, identification of relevant initiatives and following up of targets and KPIs are integrated into normal processes for strategic, financial and general business planning and reviews.
All divisions as well as Corporate functions present status and changes in gender balance within their organizations. These status updates are reviewed by the Group Management Team and provide greater awareness and involvement in the organization. They are also followed up in succession planning and talent review meetings between the CEO and Division Presidents.
Our businesses in the US and Sweden present status reports within their organizations, concerning protected groups and employees from other cultural backgrounds or country of origin respectively. In Sweden, information is being gathered to identify the percentage employees and managers who are either born in countries outside of Sweden, or who have two parents born in another country. In the US, ethnic or racial background is a factor which is reviewed.
Our challenges
- Women are underrepresented at the management level and progress is uneven within the Group. The popularity of Swedish Match as a workplace and the resulting high retention rates both for managers and senior managers have resulted in slow progress but with positive trends in some parts of the Company.
- It may be difficult or even illegal to measure several aspects of diversity.
Our progress
Highlights 2021
- Continued strong Group-wide focus on ensuring diversity among applicants and final candidates in order to find the best candidates.
- A Women’s Resource Network established within Field Sales, US Division - a mentoring initiative for female personnel led by top female Field Sales employees.
- The Diversity and Inclusion team in Richmond, US Division, completed training and certification and will roll out the division’s diversity vision statement and business case complemented with internal communication channels dedicated to diversity and inclusion.
- The annual Affirmative Action Plans completed in the US Division, goals communicated, and progress monitored.
- Internal Diversity and Inclusion training conducted with senior management in the US Division.
- Digitized job descriptions accessible to all employees within Europe Division to be able to promote internal mobility.
- Roll out of updated equal treatment and ethics program at SMD Logistics, Sweden, with active participation from employees with the view to make equal treatment part of everyday life.
- Continued efforts to active search for female applicants when recruiting to male dominated positions within Lights Division and SMD Logistics.
Progress update
In the group of all employees, Swedish Match considers its total workforce balanced from the gender perspective. By the end of 2021, the share of women was 41 percent. Women are, however, still underrepresented at the management level but we are seeing positive trends in some parts of the Company. By the end of 2021, the share of women in managerial positions with direct reports had increased to 28 percent, up from 26 percent in 2020. We also saw an increase in the group defined as senior management, where the percentage of women was 21 percent, up from 19 percent last year. In some organizational units we are close to reaching our goals, but in others we have a long way to go. We remain confident that our current and future focus on equal opportunity eventually will increase the share of women in management positions. What we do today will have effect in the long run.
The US Division established a Women’s Resource Network within their field sales organization. This is a mentoring initiative for female personnel led by top female field sales employees. Ten mentees will participate during the first round of the program. The division’s work with the annual Affirmative Action Plans was also carried out as planned with goals communicated and progress monitored. The diversity and inclusion committee formed at the Richmond office to further advance efforts within equal opportunity completed training and certification and will roll out the division’s diversity vision statement and business case complemented with internal communication channels dedicated to diversity and inclusion. During the year the US Division’s head office in Richmond was awarded Top Workplaces1) regional award for the seventh consecutive year.
In Europe Division and at Corporate functions, the Equal Opportunity plan, which establishes how to work with equal treatment, i.e. our zero tolerance for discrimination, has been updated and new goals set for 2024.
1) An employer recognition program in the US. The event is hosted by the Richmond Times Dispatch.
For more information, please refer to https://topworkplaces.com/company/swedish-match-north-amer/richmond/)/.
| Gender representation1) | 2021 | 2020 | 2019 |
|---|---|---|---|
| Senior management | |||
| Share of women in senior management, %2)3) | 21 | 19 | 18 |
| Board of Directors | |||
| Total number of members in Board of Directors appointed by the Annual General Meeting | 8 | 8 | 7 |
| Share of women in Board of Directors appointed by the Annual General Meeting, % | 38 | 38 | 43 |
| Share of women in Board of Directors appointed by the trade unions, % | 0 | 0 | 0 |
| Employees | |||
| Share of women in total number of employees, % | 41 | 41 | 40 |
| Share of women in total number of managers with direct reports, % | 28 | 26 | 26 |
1) Represents figures at year-end.
2) Figures restated due to refined data collection.
3) Defined as participants in the Company’s Long-Term Incentive (LTI) plan, composed of 38 individuals in 2021.
| Cultural background, affected group’s share1), % | 2021 | 2020 | 2019 |
|---|---|---|---|
| Employees | |||
| Sweden | 24 | 24 | 24 |
| The US | 16 | 16 | 16 |
| Managers | |||
| Sweden2) | 11 | 12 | 11 |
| The US | 13 | 11 | 10 |
1) In Sweden, the affected group is defined as employees born outside Sweden or born in Sweden with two parents born outside Sweden. In the US, the affected group is defined as non-caucasian.
2) In Sweden, the managers are defined as managers and any other employees with one of the hundred highest salaries in the Swedish Match workforce.
| Employees on discrimination1) | 2020 | 2018 | 2016 |
|---|---|---|---|
| Share of employees who agree that their working group is free from discrimination at work, % | 93 | 92 | 94 |
1) The Group employee survey is conducted regularly. The difference between 2016 and 2018 was partly explained by the rephrasing of the question in the survey.
Sustainability tables in XLS format
Going forward
Goals | Commentary | |
| No employees should feel that they are, or could be, the subject of discrimination at the workplace. | We will conduct training for HR and managers in awareness of unconscious bias and review all HR processes with this in focus. We will continue conduct mandatory training for employees on welcome/unwelcome behaviors. We will continue with regular reporting and follow up between the CEO and Operating Unit heads on matters related to diversity. We will resume various planned diversity initiatives and develop new programs to reach our goals. | |
| To have at least 40 percent of each gender in senior management1). To increase diversity in cultural backgrounds. | We will continue our focus on managerial and talent recruitment to promote diversity among final candidates. | |
| We will conduct training in awareness of unconscious bias. |
1) Defined as participants in the Company’s Long-Term Incentive (LTI) plan.
