Silvan’s ESG progress under AURELIUS’ ownership illustrates the power of a strong partnership, combining financial performance with long-term sustainability goals.

Denmark’s most recognised DIY chain with a 150-year heritage has embraced sustainability as a key component of its corporate strategy. While driving impactful ESG initiatives across its operations, the firm also has a clear focus on creating long-term value for both the business and its customers. Pursuing its mission to be the most convenient destination for everyday DIY projects, Silvan offers an integrated customer journey that blends its growing online presence with its offline offering.

Its journey since AURELIUS completed its carve-out from STARK in 2017 includes a comprehensive transformation to create a standalone entity with optimised operations. Supported by specialists from AURELIUS Operations Advisory, Silvan improved its digital presence, allowing e-commerce to reach 16% of total sales today.

Customers can choose from an improved bricks-and-mortar experience, too. Since 2019, nine new city stores were opened and many existing stores upgraded. They now offer a clean new format that promotes sustainability, featuring minimalist Scandi design, LED lights, and only very little plastic in stores. Its service offering is much improved as well, now including tool rental, key cutting, bike and trailer rentals, wood cutting, and other areas that can be useful for a DIY enthusiast. This not only helps customers keep their own costs down but is better for the planet and aligns with Silvan’s focus on circularity and environmental leadership.

“Silvan had been thinking about measures to become more environmentally friendly for quite some time. Since being backed by AURELIUS, it has intensified efforts to initially drive sustainability, followed by wider ESG initiatives. At AURELIUS Operations Advisory, we were able to provide the bespoke advice needed for transformation, supported by our dedicated Sustainability team. Silvan is exemplary of the impact we can create – turning sustainability into a value driver,” states Matthias Täubl, Partner at AURELIUS Operations Advisory.

The company continues efforts to reduce its environmental footprint while offering greener choices to its customers. Silvan has successfully integrated a variety of eco-friendly measures across its 45 stores, from energy-efficient lighting to sustainable packaging.

The business’ success is down to its holistic approach: the firm created a culture which now encompasses sustainability, making the addition of sustainability goals a natural evolution rather than a box-ticking exercise to comply with regulations.

“AURELIUS has helped us realise our potential from the start. The close support from the AURELIUS Operations Advisory team has enabled us to continuously transform ourselves to drive growth,” comments Klaus Dolmer, Silvan CEO.

The journey included a number of steps:

• Materiality assessment – understanding what matters to stakeholders is a key start
• Sustainability push – making the stores greener, and offering eco options to customers
• Embracing circularity – helping customers save money while reducing environmental impact
• Assessing impact – measuring the efforts’ results is key to progress

Assessing materiality

Silvan’s sustainability journey included reshaping its corporate culture to embed sustainability principles at the core of its operations.

A comprehensive double materiality assessment helped to reinforce the most significant sustainability topics for the business. This allowed Silvan to evaluate both the financial risks and the broader environmental and social impacts of its operations. By integrating these findings into its strategic planning, Silvan today is able to ensure that it addresses material issues with the greatest potential to influence long-term business success. This process has enhanced transparency and driven targeted initiatives that align with the company’s broader sustainability goals.

Environmental leadership

One of Silvan’s most significant achievements is its comprehensive energy management initiative. For example, the transition to LED lighting in all stores has reduced electricity consumption by 27%.

Sustainable product offerings are also a pillar of Silvan’s ESG strategy. The introduction of private-label items under the “Green Line” brand ensures that customers have access to eco-friendly products which adhere to stringent sustainability criteria, with items made for example from recycled wood, plastic, and biodegradable materials.

Reducing waste is key, and Silvan replaced plastic-based e-commerce packaging with FSC-certified cardboard and paper-based fill material, significantly lowering its environmental impact. In addition, the elimination of printed leaflets in 2020 has saved over 134,000 km of paper annually, further reducing Silvan’s carbon footprint.

Innovation in the circular economy

Silvan has taken a forward-thinking approach to the circular economy, expanding rental services for tools, trailers, electric cargo bikes and party equipment. Today, this initiative not only reduces the need for customers to purchase items they may use infrequently, but also minimises waste and overproduction. Silvan’s tool rental service in particular has seen strong growth, with plans to expand self-service options and improve the customer experience through digital platforms.

Assessing impact

Meaningful tracking is key to progress. The company has implemented robust ESG reporting systems, including specialist software, and uses the Greenhouse Gas Protocol to track emissions across Scopes 1, 2, and 3. This level of transparency not only strengthens the company’s internal governance but also enhances its supplier assessment processes, ensuring that sustainability criteria are embedded throughout the supply chain. Silvan’s ongoing commitment to ESG is making it fit for the future by strengthening its brand identity.

“The ESG-focused transformation at Silvan is now rooted in the corporate culture. Moreover, each measure was assessed from a business case logic, to ensure it really creates value. This is underpinning Silvan’s success today, which we expect to continue,” says Jan-Christian Becker, Chairman of Silvan and Senior Managing Director at AURELIUS.

Store openings and enhancements, incidentally while other retailers reduce their high-street footprint, demonstrate that AURELIUS’ strategic backing has supported Silvan’s operational transformation to drive business growth while simultaneously prioritising sustainability targets.