Investor Presentaiton
BOARD OF DIRECTORS' REPORT
signed by all our distributors. Starting from 2022, we track the
share of distributors who have signed the 2018 or 2021
version of the Distributor Code of Conduct. By the end of
2022, 42% of our distributors had signed either the 2018 or
2021 version of the Distributor Code of Conduct.
All the above Codes of Conduct are available on
kone.com.
Anti-corruption and bribery
In 2022, we issued new instructions on gifts and corporate
hospitality as part of our anti-bribery actions. Training on the
instructions is being rolled-out to all key employee groups and
this will continue in 2023.
During the year, we updated KONE's Competition
Compliance Policy and rolled out new training on this topic
which was assigned to relevant employees (approximately
31,000 in total). The training was offered in 34 languages and
by year end, 98% of KONE employees who were assigned
the training had completed it.
Respect for human rights
In 2022, we issued a new Human Rights Policy which sets out
our commitment to respect human rights. This policy
complements KONE's Code of Conduct and related policies,
including KONE's Supplier and Distributor Codes of Conduct.
Our Human Rights Policy is available on kone.com and is
reviewed annually.
KONE's Global Compliance Committee, comprising four
Executive Board members, Corporate Controller, and Head of
Global Compliance, is accountable for human rights at KONE.
A human rights working group reporting to the Global
Compliance Committee began work in April 2022. The
working group assists the Committee in ensuring that KONE
has an effective human rights program and drives this
program across KONE. Our human rights program focuses
on:
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Governance and accountability for human rights
Continual development of our supplier human rights
assessment program
Regular human rights impact assessments for our
own operations and supply chain
Increasing training and awareness on human rights
for our employees and business partners
Identifying and taking actions to meet regulatory
requirements
The human rights program is discussed and reviewed on a
regular basis in the Global Compliance Committee and the
Sustainability Board.
Embedding human rights in KONE strategy, policies
and processes
We identify, assess and prioritize human rights impacts
throughout our business and aim to prevent and mitigate
those impacts in an on-going manner by embedding human
rights in our strategy, policies and processes. Our human
rights due diligence process consists of impact assessments,
third party due diligence, supplier screenings and internal
assessments and surveys. We continuously develop our
human rights due diligence program in order to identify and
address potential risks in our own operations and in our
supply and delivery chain.
In order to identify and address potential risks in our
supply chain we continued to develop our supplier
assessment program in relation to human rights. In 2022, we
conducted both online and on-site human rights assessments.
We received online survey responses from 171 suppliers
covering 251 production sites early in the year. The online
questionnaire was then revised and sent to over 200 suppliers
in December 2022. A total of 10 on-site human rights
assessments were conducted in 2022, with a large majority of
them taking place in India.
Our human rights impact assessment, conducted with
assistance of an external party in 2019, has recognized our
salient human rights as 1) health and safety, and 2) respect
for individuals' labor rights (prohibiting forced or child labor,
discrimination, harassment or bullying, and ensuring freedom
of association, collective bargaining, and appropriate working
conditions). Such assessments are reviewed regularly as a
part of an on-going process to reflect changes in our
operations and in the business environment. We will update
the impact assessment in early 2023.
We continued screening and monitoring relevant suppliers,
customers and other third parties with whom we conduct
business through a compliance screening solution covering
international adverse media, sanctions and watchlists.
We communicate internally and externally about our
human rights program on a regular basis, including progress
on our supplier human rights assessments, trainings,
awareness activities, third-party due diligence and screenings.
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