Diversity and Inclusion in Jotun A/S

February 20, 2025

The report contains two mandatory disclosures:

• Work on Diversity and Inclusion in all operations
• Actual status of diversity

1.    Jotun’s work on Diversity and Inclusion

D&I is included in the company’s strategy for 2024-2026, recognising four action areas: Understanding, Identifying, Attracting and Developing. Jotun A/S follows the Group’s Global Diversity and Inclusion Policy. In addition, and in understanding with the Equality and Anti-Discrimination Act § 26, Jotun takes into consideration various grounds for discrimination:

• Gender
• Pregnancy
• Maternity or paternity leave
• Care responsibilities
• Ethnicity
• Religious beliefs
• Functional impairment
• Sexual orientation
• Gender identity
• Gender expression
• Age
• Union membership
• Political view

D&I are important factors and an integrated part of the following key Human Resources processes:

• Recruitment
• Pay and working conditions
• Promotion
• Development opportunities
• Work-life balance

Jotun also works to prevent harassment, sexual harassment, and gender-based violence.

2.    Main activities supporting D&I goals

Understanding: Jotun’s Human Resources Management System supports Jotun in following and understanding diversity measures across the organisation. Workshops are held for managers and employees on the topic to increase understanding and awareness. As an example, D&I is an integral part of the annual “From Strategy to Implementation” training which is mandatory for all managers in Jotun, taking place at the beginning of each year. Through this workshop each manager creates action plans and cascades goals for their team members. This way, Jotun secures that D&I is addressed on all levels of the organisation. 

Identifying: Jotun tracks diversity development along four main dimensions: Gender, Age, Nationality and Profession. These areas are reported and followed up twice a year during Business Reviews of the company. In addition, we work on less quantifiable diversity factors to ensure that all employees feel appreciated and included in Jotun regardless of their identities. 

Jotun works closely with employee unions on working conditions and other relevant topics for the wellbeing and rights of the employees, with meetings twice a year. The company also ensures close dialogue during salary review. Jotun firmly believes that constructive cooperation with unions and active dialogue contribute to increased diversity and inclusion. 

Attracting: Jotun has a strong recruitment practice which promotes diversity and stands against any type of discrimination. The HR department is the professional partner that supports all recruitment processes and continuously works on educating managers and raising awareness about advantages of having a diverse workforce, as well as being aware of biases in the recruitment process - that if not identified may lead to discrimination. Jotun also ensures that team composition is considered when recruiting new team members.

Developing: D&I is an integral part of leadership trainings within the company, and diversity among managers is regularly monitored and kept in mind during internal promotions/rotations. In 2023, a management course was held by the Norwegian Labour and Welfare Administration (NAV) for managers in Supply Chain. The course focused on leadership competence, which supports managing employee groups of diverse backgrounds and aimed at enabling managers to recognise the different needs of each employee and adapt leadership approach accordingly.

3.    Diversity and Inclusion index

In January 2022, Jotun launched a D&I Index where all employees were invited to give their feedback on the company’s work on Diversity and Inclusion. The result showed that 85 per cent of the employees experienced their manager and Jotun to foster an inclusive culture.  Nine per cent answered neutrally, while six per cent felt less included. This is a solid high index rating that Jotun is very proud of. At the same time, we have continued working on the areas where the employees have expressed that the company can improve (see below), and we will continue to do so in 2025 on the way to the next Employee Engagement Survey.

The below table presents the questions asked as part of the Index and result distribution. Jotun notes that while overall results are very good, there are certain areas to improve, such as ensuring that advancement opportunities are available to employees regardless of personal background or characteristics. This is done by continuously coaching managers in inclusive recruitment and performance management, as well as enhanced and transparent feedback to the organisation on competence-based criteria for recruitment and promotions. 

4. Risk assessments and mitigating measures

At Jotun, risk assessments regarding discrimination and proactive measures to prevent the risks are integral parts of work regulations strongly supported by the company’s core values: Loyalty, Respect, Care and Boldness. Jotun acknowledges the inherent risk of discrimination for businesses of Jotun’s size. 

4.1. Risk of discrimination and inequality in recruitment and career development

Jotun’s recruitment system does not show age or gender of the applying candidates, which helps not to discriminate based on age or gender in a recruitment process.

There is a fact that women seldom choose to work as operators and therefore most of Jotun’s operators are men. During 2023 and 2024 Jotun took proactive steps to attract more women to these roles, by participating in career days and cooperate with relevant educational institutions promoting operator positions.

Jotun acknowledges the risk of bias both in recruitment of new employees, as well as when considering internal rotations and promotions. Our recruitment policy, which is transparent and standardised, allows Jotun to map the risks and through cooperation ensure that the company values are followed. For example, all recruitment processes are executed with involvement of an HR representative, supporting the recruiting manager and ensuring the process is fair and objective, while decisions are made based on qualifications and fit for the position.

In 2022 the company launched a training programme for leaders, “Inclusive hiring”, which aims at raising awareness and educating managers on how to minimise bias and ensure a diverse recruitment process. All managers completed the course during 2023. The training was given to new managers during 2024 and will continue through 2025.

Jotun marks the International Women’s Day each year. This year, an external speaker was invited to address challenges women face in advancing to leadership roles and entering male-dominated fields. The lecture, open for all, aimed to inspire and motivate women to “take the next step”. As a male-dominated company, Jotun seeks to encourage more women to pursue careers within the organisation.

4.2. Risk of harassment in the workplace

Jotun recognizes the importance of psychological safety in the workplace to create an environment of respect and support, which in turn prevents harassment. This requires ongoing effort to maintain. The company’s "Speak-Up!" campaign, launched in 2023 and continued in 2024, raises awareness of psychological safety and encourage employees to share their views without fear of repercussions.

The mandatory campaign included: elements such as e-learning, articles, video messaging from top managers and workshops. Furthermore, the campaign promotes use of the Whistleblowing channel. The Speak-Up! campaign was also built into employee activities in 2024; i.e. World Women’s Day 8 March, World Mental Health Day 10 October, and at the summer gathering for all employees in August. The company followed up that all employees participated in campaign initiatives.

In October, all employees participated in departmental activities related to mental health. Jotun addressed the issue of high sick leave rates in society, noting that the increase is largely due to psychological ailments, and underscored the importance of ensuring psychological safety in the workplace.

4.3. Risk of discrimination and inequality in renumeration:

Jotun’s salary policy supports an annual evaluation process which discovers discrepancies against the principle of right, fair and competitive pay. Jotun has a formalised Job Structure and compensation policy, and works to ensure gender pay equality. Job structure is developed in cooperation with Korn Ferry, which is one of the global leaders in expertise on job structure and remuneration and serve as a benchmarking tool for Jotun to ensure right and fair pay structure based on the position responsibility level. Using well reputed and structured tools, minimises the risk of pay discrimination based on biases, such as gender, age, nationality and other.

4.4. Risk of malpractices and wrongdoings

Jotun acknowledges that as a global company with approximately 1 000 employees in Norway, there is a risk of malpractices not in line with company culture and values.

It is not always easy for individuals to speak up about wrongdoings they are exposed to or observe. The company’s whistleblowing channel ensures a safe and easily accessible way to raise their voice. Moreover, the above mentioned Speak-up! campaign actively educates managers and employees on expectation to actively engage in ensuring a safe and inclusive environment for all employees.

5. Promoting inclusion in the workplace

Jotun works on various measures to positively impact the company culture, the feeling of inclusion, psychological safety and also prevent harassment in general, hereunder sexual harassment.

In 2024, we implemented a Akan two-year action plan to address issues related to alcohol, drugs, gaming, and gambling. Communication material was updated, and a new Akan policy was launched. Furthermore, appealing alcohol-free alternatives was promoted and provided at the company’s summer party. Further, the Akan committee introduced a new e-learning program on conducting necessary conversations when abuse or addiction concerns arise at the workplace. This initiative aims to equip managers with the skills to support employees struggling with addictions, thereby fostering inclusion and care for those at risk of falling out of the workforce.

In December 2024, “Telus Health” was launched in Jotun, a health care service available on app, by e-mail or phone. It provides all employees with access to free, professional and confidential support for their personal challenges - such as mental health issues, addictions, relationship counselling, personal conflicts, parenting, financial, legal etc. The coverage are extended to family members, living in the same household as the employee. Jotun expects this preventative measure to impact the wellbeing of employees.

In October 2023, all senior employees (aged 60 or above) were invited to a gathering, where they were provided with inspiration and information on the importance of a senior workforce for both the company and society at large. The significance and relevance of their competence and experience and its impact on the company’s success was discussed. Feedback after the meeting was positive and similar gatherings will be an annual event in the company.

In December 2023, a “Family Day” was arranged. Employees with their families were invited the Headquarters for a Christmas spirited event with holiday season activities. This event, which mainly aimed at employees with children and grandchildren, was well received as an initiative that makes the employees share an inclusive workplace with their families.

6. Continuous improvement approach

Jotun is continuously working to identify areas and actions for contribution to inclusion and anti-discrimination. For example, how to take in disabled persons for job training or language training.

Jotun works with a continuous improvement approach, and we observe that the female proportion in the company is increasing, as well as the number of nationalities. During 2023 and 2024 we recruited employees with widely different backgrounds. Diversity is followed up through company Business Reviews, management trainings, standardised internal and external recruitment processes and other.

The global Jotun D&I policy was launched in January 2020 and calls for action in each unit, including Jotun A/S. The global “Penguin Care” programme was implemented in September 2022, focusing on contributing to employees’ health, well-being and work-life balance. It establishes a global minimum for parental leaves for both men and women, as well as welfare leaves for taking care of children, spouses and parents, when needed.

7. Actual status of diversity

Below an overview of D&I related statistics for Jotun A/S.

7.1. Gender distribution

Gender distribution Jotun A/S
Among the 971 permanent employees at the end of 2024, there were 314 (32 per cent) women and 657 men (68 per cent). (2023: 31 per cent women)

Gender distribution – managers
Among these employees there were 221 managers. 82 of those (37 per cent) were women. (2023: 35 per cent women)

Gender distribution – top management
At the end of 2024, there were eight direct subordinates to the President and CEO. Three of them (37,5 per cent) were women. (Unchanged from December 2023).

7.2. Part-time employees

At the end of 2024 there were 31 permanent employees (3,2 per cent) not working in full-time positions. 16 of those (52 per cent of total) were women. Jotun always offers full-time positions. Employees working less than full time have chosen to do so voluntarily, most common reasons being work-life balance, approaching retirement age and other personal circumstances or preferences.

7.3. Temporary employment

Jotun strives to employ in permanent positions, however, certain reasons may call for temporary employments. Among the most common reasons are:

• maternity/paternity leave absence
• long-term illness absence
• temporary project work

There are approximately 30 apprentices hired at any given time (mostly young students), most of which have two-year contracts. At the end of 2024 there were in total 18 temporary employees with agreements of length between 6 and 18 months (in addition to apprentices). Nine of those were women and nine were men. This overview includes Jotun employees from abroad that are on temporary short-term assignments in Norway and have their home country of employment outside Norway.

Third-party recruitment agency services may be used, in case of temporary need for resources. There is regular communication with Union representatives regarding the need for external temporary workers. The company aims to prioritise temporary workers when opportunities for permanent employment arise that match the qualifications.

7.4.  Parental leave 

In 2024, a total of 43 employees at Jotun A/S were on parental leave (21 women and 22 men). Among women, the average number of absence days due to parental leave in 2024 was 106, while 56 among men. These numbers are for the calendar year 2024 only, and thus omit possible absence days for the same employees in 2023 or further on in 2025. Note that this includes both parental leave and the additional two weeks of leave that co-parent is eligible to take off in connection with birth. These two weeks at Jotun are paid leave.

7.5. Nationalities

By the end of 2024 there were 971 permanent employees in Jotun A/S. These employees represent 47 different nationalities. Nationality is how Jotun measures diversified ethnic identity. Among the majority with Norwegian nationality, there are individuals with diversified cultural background. Jotun is proud of its culturally diverse workforce and believes this to be a competitive advantage and a crucial trait for the headquarters of a global company.

7.6. Age

Average age at Jotun A/S by end of 2024 was 47. Among managers the average age by end of 2024 was 49, while for the rest of employees, the average age was 47.

8. Equal Pay 

The details of this section were updated February 2024. Next update is scheduled for February 2026, where overview will be given over the situation as of 31 December 2025. 

Up till 2024 employees were assigned gratuity based on common results the year before, with exception of high-level positions that were a part of bonus scheme. As of 2025 all employees in Jotun are included in a bonus scheme based on EBITA target achievement.

Jotun uses Korn Ferry’s Market Salary Data to ensure compensation governance and do statistical analysis across paygrades, gender, age, seniority etc. If unjust discrepancies are discovered, a plan is put in place for extraordinary increase to decrease the gap. No major gaps linked to gender have been reported during the previous salary reviews. In 2021 a new HR management system was launched which also included a review of the existing pay level distribution in the organisation. During salary reviews, HR together with Unions analyze salary data to detect whether there are any practices that imply inequality between genders or age groups. Where inexplicable gaps are discovered, these are corrected during salary review.

The following section presents analysis of salary level within Jotun per December 2023, as well as some comments.

8.1. Operators

Almost 20 per cent of Jotun A/S employees are operators. Salaries of these are not individual, but based on local tariff agreement which is reviewed on annual basis.  As per December 2023 there were 158 operators, among these 14 females (8.9 per cent). Operator salary consists of the following components: Basis salary (“grunnlønn”), Addition for approved certificate (“fagtillegg”), Addition for competence level (“kompetansetrinnstillegg”) depending on which tasks one is certified in, as well as Addition for team leaders (“teamledertillegg”) for those who take on extra responsibility. In addition, there is monthly payment for working shift (two-shift or three-shift).

As of December 2023, the female salary level among operators was 98 per cent of the male salary level. The nuances are then based on the combination of the salary components as described above.

8.2. Apprentices

Salaries of apprentices are based on fixed local tariff agreement which is reviewed on an annual basis. Below, a table of payment for apprentices depending on in which phase of apprenticeship they are. As of December 2023, there are 32 apprentices with active agreements at different stages of apprenticeship. Five of these are women and 27 men. Jotun focuses on Employer Branding activities to promote apprenticeship in company at earlier stages, such as by visiting secondary schools. Special focus is made on raising awareness that apprenticeship in operations is not only for males. Jotun aims to raising the female proportion among apprentices.

 

	NOK per month
1st half-year - 30 per cent of salary for skilled worker	13 099,-
2nd half-year - 40 per cent of salary for skilled worker	17 465,-
3rd half-year - 55 per cent of salary for skilled worker	24 014,-
4th half-year – 75 per cent of salary for skilled worker	32 748,-
Overtime for apprentices as for employees above the age of 18.

8.3 Temporary employment

Per December 2023 there were 13 employees with temporary contracts with Jotun. The profiles vary from students taking on seasonal job during school holidays to retired employees that return to company for a period of time to support with their competence. Snapshot of this varied group shows that the female/male hourly salary ratio during December was 87 per cent. This reflects the different positions, competence and age groups among the 13 and not the gender.

8.4. Permanent employees with individual salary

The table below shows comparison of male/female salaries within each salary grade, based on monthly salary for permanent employees (excl. salary grades that host less than five employees of each gender). The data is based on average monthly salary against job grade and disregards other factors of influence, such as age, seniority, education level, previous positions held, etc.

	Females		Males
Grade	No of employees	% of average salary/male	No of employees
12	5	95 %	11
13	9	98 %	35
14	25	91 %	32
15	29	90 %	45
16	49	96 %	76
17	59	97 %	94
18	48	96 %	101
19	36	100 %	45
20	7	99 %	23
21	9	103 %	17
Total	276	96,3%	479

The 2024 analysis, as with every salary review, will be performed across the organisation to ensure no unjust practices are in place, keeping in mind that salaries for administration are individual. If and where unjustified discrepancies are observed, HR in cooperation with the unions and managers work towards diminishing differences.

8.5. Overtime

Overtime in Jotun can mainly be observed in the factory. Among the 158 operators in 2023, there were 94 that worked overtime during 2023, averaging 18 hours per employee during the full year 2023. Among these 94, there were 11 females with average number of overtime hours 14.

Among employees in administrative positions, there is little use of overtime and high degree of flexibility regarding extra hours and compensatory time off for such time. 198 employees have worked overtime during 2023: 32 women (average 25 hours) and 166 men (average 31 hours). The difference can be explained through various factors, main of them being that roles that are more technical and require periodically overtime, are still mainly covered by males.

8.6. Cash benefits: including bonus and gratuity – excluding salary and overtime pay (see separate sections)

There are several cash benefits that employees may be entitled to depending on the job. This includes, e.g. car allowance, office allowance for sales representatives, duty allowance for mechanics, allowance for those participating in industry protection.

Up to and including 2024, Jotun had bonus agreements for certain high-level positions and distribution of profit (gratuity) among the rest of employees. Bonus was based on departmental and individual goals, while gratuity was discretionary and based on the segment results. Starting with 2025 all employees are included in a bonus scheme; 2026 reporting on cash benefits will include the results following the new bonus policy.

Among operators, the amount of paid out cash benefits for women vs. men in 2023 was on average 68 per cent. Among administration workers, the amount of paid out cash benefits for women vs men in 2023 was on average 52 per cent. Here we see a strong correlation to specific job categories (for example, sales) that are male dominated, which in return proportionally increase their amount of cash benefits.

8.7. Payments in kind

At Jotun there are several payments in kind, e.g. free car for certain positions, free mobile phones and internet depending on the position and needs. Among administration workers the amount of payout of benefits in kind for women vs. men in 2023 was 45 per cent. If we look at one month separately (December 2023), this proportion is 49 per cent. The main difference lies in access to free cars for sales executives, as such positions are still male dominated.