Investor Presentaiton

BOARD OF DIRECTORS' REPORT ENVIRONMENTAL MATTERS In line with KONE's strategic target of being a leader in sustainability, our environmental approach supports the ongoing green and digital transformation of the built environment into smart eco-cities, low-carbon communities, and net zero energy buildings. We have defined our environmental ambition, objectives and commitment to environmental sustainability in all activities in our Environmental policy statement, which is publicly available at kone.com. In 2021, we renewed both this statement and our Environmental Excellence program, which guides us towards our environmental targets, to improve alignment with our heightened climate and environmental ambition. In line with the statement, we develop smart and sustainable technologies for People FlowⓇ and want to be the preferred partner for environmentally sustainable urban environments. We drive transformation towards sustainable, circular and carbon neutral operations, as well as engage our employees, customers, suppliers and partners on climate and environmental action. The KONE Code of Conduct, the Supplier Code of Conduct, the Distributor Code of Conduct and the KONE Global Vehicle Fleet, Facility and Travel Policies also set out environmental requirements relevant to the operations of KONE or its partners. KONE has a climate pledge with science-based targets for significant greenhouse gas emissions reductions and an aim to have carbon neutral operations by 2030. We are committed to a 50% cut in the emissions from our own operations (scope 1 and 2 emissions) by 2030, compared to a 2018 baseline. This target is in line with limiting global warming to 1.5 C, which is currently the most ambitious criteria for setting science-based targets. On top of these ambitious emissions reduction targets, we aim to achieve carbon neutral operations by 2030 by offsetting the remaining emissions. In addition, we target a 40% reduction in the emissions related to our products' materials and lifetime energy use (scope 3 emissions) over the same target period, relative to orders received. KONE was the first to validate its science-based targets against the latest climate science in the elevator and escalator industry and KONE's targets are the most ambitious in the industry to date. With the climate pledge, we are taking even stronger action and leading the way in our industry to create more sustainable urban environments. We are taking strong actions across the supply chain and work together with our suppliers to cut emissions, increase the use of sustainable materials and limit the use of hazardous KONE's climate related disclosures according to TCFD Governance Strategy Risk management Metrics and targets TCFD recommended disclosures Board's oversight of climate-related risks and opportunities Management's role in assessing and managing climate-related risks and opportunities Climate-related risks and opportunities over the short, medium and long term Content in KONE's report Non-financial information / Management and Board of Directors' oversight of sustainability, p. 11. Non-financial information / Management and Board of Directors' oversight of sustainability, p. 11 Non-financial information / Environmental matters, p. 13 Impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning Resilience of strategy, taking into consideration different climate-related scenarios Strategy, p. 3 Risks and risk management related to the reporting of non- financial information, p. 23 KONE is planning to conduct scenario work during 2022. Processes for identifying and assessing climate- related risks Processes for managing climate-related risks How processes for identifying, assessing and managing climate-related risks are integrated into the organizations overall risk management Metrics used to assess climate-related risks and opportunities Scope 1, Scope 2 and Scope 3 emissions and the related risks Targets used to manage climate-related risks and opportunities and performance against targets Risks and risk management related to the reporting of non- financial information, p. 23 Risks and risk management related to the reporting of non- financial information, p. 23 Risks and risk management related to the reporting of non- financial information, p. 23 Non-financial information / Key performance indicators, p. 12 Non-financial information / Environmental matters, p. 13 Non-financial information / Key performance indicators, p. 12 Non-financial information / Environmental matters, p. 13 Non-financial information / Key performance indicators, p. 12 Non-financial information / Environmental matters, p. 13 13 KONE ANNUAL REVIEW 2021

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