Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Non-financial information
Sustainability is a source of innovation and a competitive
advantage for KONE. We want to be the most trusted partner
to our customers throughout the building life cycle and help
them achieve their sustainability objectives, creating better
urban environments. At KONE, sustainability covers our
offering, operations and culture and encompasses the
environmental aspect, diversity and inclusion, safety, quality
and ethics and compliance. Our strategy and values reflect
our commitment to sustainable practices.
KONE conducts its business in a responsible and
sustainable way, and we expect the
same commitment from all our
partners. We are committed to
complying with the laws and
management related to the matters below are described in the
section Risks and risk management related to the reporting of
non-financial information.
More information on KONE's approach to sustainability
can be found in the Sustainability Report, which is prepared
according to GRI Standards. KONE published its
Sustainability Report for 2020 in April 2021. KONE'S
Sustainability Report for 2021 will be published during the
second quarter of 2022.
KONE's Sustainability
Report 2021
Will be published during
Q2 2022
In the report, you can
find more detailed
information about
sustainability
regulations of the countries in which
we operate. KONE is a member of the
UN Global Compact and dedicated to
upholding its ten principles, which are
aimed at promoting sustainability and
fairness in the business environment.
The principles are embedded in our
strategy, policies and procedures,
such as KONE's Code of Conduct,
Competition Compliance Policy, and Environmental
Excellence Program, as well as in related processes. In
addition, KONE supports the UN Sustainable Development
agenda and its goals. KONE has also signed the Paris Pledge
for Action climate initiative and, in 2020, set Science Based
Targets for reducing emissions in its own operations, offering
and the value chain by 2030, showing climate leadership and
commitment to limiting global warming to 1.5 degrees celsius
in accordance with the Paris Climate Agreement. KONE
applies the Task Force on Climate-related Financial
Disclosure (TCFD) reporting principles in order to report about
climate-related financial risks and opportunities. The table on
this text maps the pages of the report where disclosures
according to TCFD requirements can be found.
KONE's strategy and business model are described on
pages 3-5 of KONE's Annual Review 2021. Risks and risk
Management and Board of Directors'
oversight of sustainability
KONE has integrated the management of non-
financial matters and sustainability into
operations throughout the organization. KONE'S
management and supervisors work to ensure
that employees are familiar with and comply
with the legislation, regulations, and internal
operating guidelines of their respective areas of
responsibility, and that KONE's products and
services are in full compliance with all codes
and standards applicable to them.
Ultimately, sustainability and its
management are the responsibilities of KONE's President and
CEO and the Executive Board. KONE's Executive Board
discusses sustainability topics, including e.g. environmental,
social and compliance topics, in each meeting given the
strong emphasis on sustainability in KONE's strategy
"Sustainable Success with Customers". Furthermore, KONE
has established forums where sustainability and climate-
related topics are regularly discussed: The Quality and
Environmental Board and the Offering and Technology Board,
both chaired by KONE President and CEO and with Executive
Board level members. KONE also has a separate
Sustainability Board, a steering committee dedicated to
sustainability topics, with climate and environment among the
prioritized areas. Several members of KONE's Executive
Board are members of the Sustainability Board, which is
chaired by KONE's EVP of Operations Development.
KONE's Board of Directors is responsible for overseeing
and supervising the implementation of KONE's strategy,
including sustainability topics and climate change issues. The
Board also reviews risks and risk management, including
environmental, social and anti-corruption matters. In 2021, the
Board decided on a new share-based long-term incentive
plan, which introduced sustainability as a new key
performance indicator. The Board and its Nomination and
Compensation Committee worked on setting this new
sustainability target as well as on monitoring KONE's
progression against it.
External recognitions
KONE has received external recognition for its efforts to
conduct business in a sustainable way. For example, KONE
was again included in the FTSE4Good index as well as in
CDP's Climate Change A List among the top climate change
performers. CDP is an international non-profit organization
that drives engagement for climate action. This is the ninth
consecutive year that KONE has achieved a leadership score
of A or A- in the Climate Change rating, which demonstrates
our long-term commitment to environmental work and
sustainability. KONE was also awarded the best A grade in
CDP's 2020 Supplier Engagement Rating, demonstrating
leadership and best practice in engaging our suppliers on
climate change issues. In addition, KONE was awarded the
highest-scoring Platinum medal in the annual EcoVadis
sustainability performance assessment covering environment,
labor and human rights, ethics and sustainable procurement.
This places KONE in the top 1% of all 75,000 companies
assessed in 2021. KONE also earned a place in the first ever
Financial Times Europe's Climate Leaders ranking. The
ranking identifies companies that achieved the greatest
reduction in their greenhouse gas (GHG) emissions relative to
their revenue between 2014 and 2019.
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