KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT REPORTING SCOPE 4 5 at Group level and in selected sites. • Review of Group-level systems and procedures to generate, collect and report quantitative data on the Selected information. • Assessment of Group-level calculations and data consolidation procedures and internal controls to ensure the accuracy of data. • Testing the accuracy and completeness of the information from original docu- ments and systems on a sample basis. Conclusion Based on the work described in this report, nothing has come to our attention that causes us to believe that the Selected infor- mation disclosed in KONE Sustainability Report 2017 is not reliable, in all material respects, based on the reporting criteria. Helsinki, Finland, 28th March 2018 Mitopro Oy Mikael Niskala Independent Sustainability Expert Tomi Pajunen Independent Sustainability Expert INDEPENDENT ASSURANCE STATEMENT Scope and Objectives The Management of KONE Oyj commis- sioned us to perform a limited third-party assurance engagement regarding green- house gas emissions inventory including Scope 1, 2 and 3 emissions and water consumption data (“Selected informa- tion”) disclosed in KONE’s Sustainabil- ity Report (“Report”) for the period of 1st January to 31st December 2017. The assurance engagement was conducted in accordance with the International Stand- ard on Assurance Engagements (ISAE) 3000 revised – ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’. Responsibilities KONE is responsible for the collection, cal- culation, and presentation of the Selected information according to the reporting criteria. The Management of KONE has approved the Selected information dis- closed in the Report. Our responsibility as assurance providers is to express an inde- pendent conclusion on the Selected infor- mation subject to the limited assurance engagement. The reporting criteria used for our assessment include the following guidelines and standards: • Greenhouse Gas Protocol. A Corporate Accounting and Reporting Standard, • Greenhouse Gas Protocol Scope 2 Guidance, • Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting, and • Global Reporting Initiative’s Sustainability Reporting Guidelines (4.0). Assurance Provider’s Independence and Competence We have conducted our assessment as inde- pendent and impartial from the reporting organisation. We were not committed to any assignments for KONE that would con- flict with our independence, nor were we involved in the preparation of the Report. Our team consists of competent and expe- rienced sustainability reporting experts, who have the necessary skills to perform an assur- ance process. Basis of Our Opinion Assurance providers are obliged to plan and perform the assurance process so as to ensure that they collect adequate evi- dence for the necessary conclusions to be drawn. The procedures selected depend on the assurance provider’s judgement, including their assessment of the risk of material misstatement adhering to the reporting criteria. Our opinion is based on the following pro- cedures performed: • Interviews with KONE specialists responsible for data collection and reporting of the Selected information KONE has been using an environmental performance software system since 2011. In 2017, we changed to a new system pro- vided by one of the world’s leading EHS system vendors. The facility-related envi- ronmental data has been collected from branch offices using a customized data collection spreadsheet consolidated on the country level. The country-level data as well as the data from manufacturing units and global functions has been entered into the environmental performance system. The data has been further consolidated globally. Product and spare parts logistics data has been calculated using an in-house logistics emission calculation system developed by KONE’s global logistics team. The environ- mental performance has been reported in accordance with ISO 14064 and the Green- house Gas Protocol Corporate Accounting and Reporting Standard and Corporate Value Chain (Scope 3) Accounting and Reporting Standard. The Scope 2 emis- sions have been calculated according to the dual reporting principles of the GHG Pro- tocol Scope 2 Guidance (market- and loca- tion-based method). RES-GO guarantees of origin subject to EECS (European Energy Certificate System) have been acquired for the purchased green electricity. KONE’s greenhouse gas emissions and water con- sumption at KONE's manufacturing units have been externally assured by Mitopro Oy. The emission factors are based on the data sources of DEFRA (UK Department for Environment, Food & Rural Affairs), World Resources Institute GHG Emission Factors Compilation, and AIB European Residual Mix Report. Due to the reporting system renewal and a change of some emission factor sources for 2017, the Scope 1 and 2 and Scope 3 waste emission figures are not fully comparable with the previous years. We welcome any feedback on this report or our overall sustainability perfor- mance − please contact corporate com- munications at contact@kone.com . To the Management and Stakeholders of KONE Oyj