KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT REPORTING SCOPE 4 4 REPORTING SCOPE KONE has chosen to report using the Global Reporting Initiative (GRI) guidelines in order to facilitate easier comparison of our performance with other companies and to streamline our own corporate responsibility reporting efforts. KONE has published Sustainability Report annually since 2008. The previous report was pub- lished in April 2017. The report follows GRI (G4) reporting guidelines as far as they are applicable, and covers economic, social, and environmen- tal responsibility. A table detailing how this report complies with the GRI guidelines is shown on pages 46–47. We have self-de- clared our reporting to be in accordance with the Core level. The reporting period corresponds with the calendar year and with KONE’s finan- cial year of January 1–December 31, 2017. When developing the report content and choosing indicators, the driver has been the materiality to KONE’s operations. During 2016, we conducted a material- ity analysis and defined the focus areas for KONE’s sustainability work (see more on p. 14). KONE’s approach to sustainability has also been described in the Interview with the chairman and the president and CEO on p. 4–5, and in the strategy description on p. 10–11. All major local and regional organiza- tions and all production units are included in the reporting scope. All financial data and a significant proportion of the employ- ee-related data has been collected through KONE’s enterprise resource management and financial reporting systems. All finan- cial figures presented in this report are based on KONE Corporation’s consolidated and audited Financial Statements. The personnel data is provided by our HR organization – with the exception of the data relating to gender and age distribution in management. The facility-related environmental data has been collected from KONE’s 13 man- ufacturing units worldwide and from 31 country organizations with sales, installa- tion, and service operations in Asia-Pacific, EMEA, and North America. The collected environmental data covers 85% (2016: 86%) of all KONE’s employees and 100% of employees working at our manufactur- ing units. Business air travel data, covering 31 countries and over 95% of our employ- ees, has been collected from KONE’s five biggest travel agencies. Vehicle fleet fuel consumption data has been collected from 26 countries, representing 94% of the total fleet. The logistics data covers the transportation of products from KONE’s manufacturing units to customers and the transportation of modules that are deliv- ered straight from our suppliers to our delivery centers and onward to custom- ers. Spare part deliveries are also within the reporting scope. Inbound logistics of materials to KONE’s manufacturing sites is excluded from the reporting scope because of its insignificant impact. KONE prefers material suppliers located close to our man- ufacturing units and distribution centers, and a large part of the modules are deliv- ered directly from suppliers to KONE distri- bution centers. The quality and coverage of data provided by our logistics suppliers has over the years continuously improved. KONE Focus Areas GRI G4 Aspect (G4-19) Boundary DRIVING INNOVATION AND IMPROVING RESOURCE EFFICIENCY • Deep understanding of customer needs • Sustainable innovations and business models • Resource efficiency and life cycle thinking • Low-carbon operations Aspect: Energy Aspect: Water Aspect: Emissions Aspect: Effluents and Waste Aspect: Compliance Aspect Transports Within the Organisation (G4-20) Outside the Organisation (G4-21) KONE Operations (Man- ufacturing units + 30 Country organisations) Indirect (Scope 3) Energy use and GHG Emission sources P ROVIDING THE MOST SUSTAINABLE OFFERING • Customer satisfaction • Product and service quality • End user safety • Accessibility • Energy efficiency of solutions Aspect: Materials Aspect: Energy Aspect: Products and services Aspect: Customer Health & Safety Aspect: Product and Service Labeling Aspect: Compliance KONE Operations Customers BEING THE BEST EMPLOYER AND ATTRACTING TALENT • Fair employment practices • Competence development • Motivated and engaged employees • Diversity and non-discrimination • Employee safety and well-being Aspect: Employment Aspect: Occupational Health & Safety Aspect: Training and Education Aspect: Diversity & Equal Opportunit y KONE Operations Subcontractors ENABLING OUR PARTNERS AND SOCIETIES TO PROSPER • Creating wealth via taxes and employment • Generating long-term returns • Supporting local communities • Ethical business practices • Long-term relationships with our suppliers • Diversity and equal opportunity Aspect: Economic Performance Aspect: Market Presence Aspect: Anti-corruption Aspect: Anti-competitive Behavior Aspect: Compliance Aspect: Supplier Environmental Assessment Aspect: Supplier Assessment for Labor Practices KONE Operations Community Suppliers / Strategic suppliers KONE FOCUS AREAS AND GRI G4 ASPECTS