22 May, 2026
Wood is a responsible material, but it still carries a footprint. The circular nature of our products gives PGS a strong foundation, yet it does not exempt us from the responsibility to reduce carbon emissions, to protect people at work, and to understand the effects of our choices across the value chain.
For several years, PGS Group has been building internal structure around its most material sustainability topics. This report is the first time we have chosen to make that work public. Prepared voluntarily and aligned with the European Sustainability Reporting Standards (ESRS) framework, it is published two years ahead of our CSRD compliance deadline.
The sustainability report covers fiscal year 2025 and provides a transparent view on how the Group operates and where we are headed.
Sustainability highlights
ESRS E1 - Climate Change
For us, a manufacturing company dependent on natural resources and energy, Climate Change is a highly material topic:
- Carbon reduction targets set across all scopes, aligned with the EU climate neutrality objective for 2050 and in accordance with SBTi.
- A Climate Transition Plan translates our ambition into concrete reduction levers, time horizons and significant investments.
- Since 2022, carbon emissions in PGS Group’s own operations decreased by 37%, while emissions across the value chain (from forestry to product end-of-life) decreased by 8%.
ESRS E5 - Circular Economy & Resource use
Circular Economy remains at the core of the Group’s activities through pallet reconditioning and pooling, while focusing on sustainable material use and responsible waste management. In FY2025:
- More than 25 million units were recovered for repair and reuse across our network.
- At Nails of Flanders, 97% recycled metal is now used in pallet nail production.
- Our R&D team developed a formaldehyde-free glue for compressed wood blocks.
ESRS S1 – Own Workforce
People are the backbone of our operations. Under ESRS S1, this report focuses on two priority areas: employee health and safety management, and the development of training and skills programmes across the Group.
- Several sites maintained ISO 45001 certification during 2025, demonstrating structured occupational health and safety management.
- Implementation of the new centralised HR management systems AFAS and Protime were initiated, laying the data infrastructure for more consistent workforce reporting going forward.
ESRS G1 – Business Conduct
Responsible governance is not a compliance exercise, it is the foundation on which stakeholder trust and long-term business continuity are built. In FY2025, we made progress in formalising the policies and processes that underpin ethical conduct across the Group.
- Key governance policies implemented across the Group, including Codes of Conduct and a Whistleblower procedure, supported by systemic risk assessments.
- Robust sustainable timber procurement processes in place, supported with a group-wide PEFC certification across our sawmill, production, and reconditioning sites.
A report focused on continuous improvement
This first Sustainability Report is not presented as a finished story. Maturity levels still differ between sustainability topics. In some domains, data systems are well established and progress is measurable, while in others, structuring work continues. We have chosen to reflect both sides, rather than present a polished picture.
“We could have waited until the numbers were better or the systems more complete. We chose not to. A first report that shows the gaps is more credible and more useful than one that doesn't.” - Morganne Danneels, Sustainability Project Manager
"A lot of the work this year was about building the foundations for ESRS reporting: getting data in order, aligning definitions across sites, understanding what we actually know and what we don't. That discipline is what makes improvement measurable." - Wilg Blancquaert, Sustainability Project Manager