Building on our commitment to make progress against the United Nations Sustainable Development goals, we track our contribution to SDG 8: Decent work and economic growth. This means that we estimate the jobs and economic value ROCKWOOL creates directly or indirectly, as well as the socio-economic value of the energy our products save.
Our socioeconomic impact
Read how we measure our impact
In 2022, ROCKWOOL Group’s activities created:
- Around 51 000 jobs locally at our facilities worldwide and with suppliers;
- EUR 3 907 million economic value globally;
- A net lifetime saving in energy costs of more than EUR 70 billion for customers in households and industry from ROCKWOOL’s insulation products sold in 2022.
Measuring our socioeconomic impact
- In 2021, we worked with National Contact Point (NCP) Denmark that resulted in a report with recommendations on how ROCKWOOL Group could improve its risk-based due diligence and community engagement practices. The primary focus has been to strengthen our community engagement activities and implement new community engagement policies and procedures globally to enhance our environmental and social responsibilities.
- Since 2019, ROCKWOOL has followed our SDG impact metric and methodology, created in collaboration with Copenhagen Economics, to estimate ROCKWOOL’s global and local contribution to creating local jobs and economic growth [3]. Three types of impacts are included in the methodology:
- Direct impact counts the impact from the number of people directly employed and the direct GDP contribution (wages, taxes and profits from ROCKWOOL);
- Indirect impact pertains to the impact from companies supplying ROCKWOOL with goods and services; and,
- Induced impact, which is the impact from purchases by the employees working for ROCKWOOL and their suppliers.
Download the methodology
We collaborated with Copenhagen Economics to develop the SDG impact metric and methodology to estimate ROCKWOOL’s global and local contribution to creating local jobs and economic growth
Thanks to the technology knowledge needed and training provided, ROCKWOOL has created a pool of qualified employment options in our region. Since ROCKWOOL arrived, the city has even modernised its infrastructure with new roads and improvements to local schools.
How ROCKWOOL creates impact
ROCKWOOL helps create economic growth and supports job creation through three main channels:
- Our own activities and purchases from suppliers;
- The energy savings created by the use of our products; and,
- Contribution through employment
One of the 17 UN Sustainable Development Goals - SDG8 – specifically focuses on sustainable growth and full employment. The aim of SDG8 is to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Nearly half a billion people worldwide lack decent jobs, according to a new ILO report[1]. Responsible companies can help create sustainable social economies both globally and locally by creating economic growth, employment and decent work for all.
Our business is local, meaning we produce close to our customers and hire from the communities where we operate[2]. Currently 16 of Rockwool’s 19 stone wool producing factories in Europe are in non-urban areas. These areas are often associated with higher unemployment and lack of opportunities for local jobs. For ROCKWOOL, building and operating a production facility is a long-term investment. We believe that communities and countries can be empowered when corporations become active neighbours and contributors to the economy.
Engaging local communities
When it comes to building new manufacturing facilities, power generation plants, or other infrastructure projects, gaining community acceptance is a growing challenge in some markets. This can be the case even if a new project otherwise serves a highly desirable social goal – such as saving energy or reducing carbon emissions. At its most extreme, the trend extends to opposing construction of almost anything near population centres.
While ROCKWOOL’s relations with the communities hosting our facilities are overwhelmingly positive, vocal local opposition is an increasingly common part of the industrial landscape for greenfield projects. This is a challenge that we are actively addressing by reviewing and updating our internal due diligence processes.
With 51 manufacturing facilities in 23 countries, our focus is to produce and sell our products locally, generating employment, investment, and tax revenues in the host communities while at the same time being in full compliance with environmental requirements and standards. ROCKWOOL’s factories are essential to the Group’s success, as is maintaining constructive relations in the communities that host our facilities. It is vital to communicate effectively regarding the benefits and changes we bring.
[1] ILO, 2020, ‘World Employment and Social Outlook – Trends 2020’.
[2] For instance, around 90 percent of our sales do not cross a customs border.
[3] The calculation model is an Input-Output model using EUROSTAT data. The methodology, assumptions and information about the study are available here: www.rockwool.com/group/about-us/sustainability/socioeconomic-impact/
Michael Zarin
Vice President, Group Communications, Denmark
ROCKWOOL Group