KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT Interview with the Chairman and the President and CEO 5 everything we do. KONE's employees con- tinue to have an ambition to reach zero accidents. In 2017, the IIFR (Industrial Injury Frequency Rate) improved further to 1.9 (2016: 2.1). The average number of lost days per incident improved to 28.9 days (2016: 32.5) and the number of near miss reports increased by 46%. We continue to work together with customers and equipment users, to pro- mote safety and safe behavior in all aspects of our business. We have opened more training centers around the world and we can see it also has a strong relationship with quality. It is also important to remember that our employees play a significant role in developing long-lasting customer relation- ships. KONE’s overall Net Promoter Index (NPI) score has risen again. If I look at the survey responses, the biggest driver for recommending KONE is a good customer relationship followed by high quality main- tenance services and products. Over the year, what have been the main impacts on our environmental performance? HE: When we look at environmental responsibility, installed equipment is the biggest contributor to energy and CO 2 emissions, but the other large direct impact is from logistics and our global vehicle fleet. We are exploring innovative and new ways to reduce the carbon foot- print of our vehicles, such as increasing the use of electric vehicles and looking at alter- native fuels. All this helps to reduce energy consumption and emissions. Overall, our absolute carbon footprint has continuously declined over the past many years, relative to sales. We are striv- ing for a good constant development in this area. The fact is that buildings account for nearly 40% of global energy consump- tion. And we can see in all parts of the world that sustainability is becoming even more important for our customers, from improving energy efficiency, to local authorities routinely stipulating BREEAM and LEED ratings as part of planning conditions. Linking back to quality, we are more efficient with our services and installa- tions when we provide the highest levels of quality for our customers. With solutions that meet their needs, they have less inter- ruptions, can provide better services, and save resources. How would you summarize KONE’s approach to sustainability? HE: The need to embed sustainability in business will increase from a social, envi- ronmental and economic point of view. Sustainability is embedded in not only what we do, but how we do it and we will continue to develop with ambitious and bold targets going forward. Urbanization will continue. Our strategy is to help our customers suc- ceed, which means helping their build- ings to become more functional and as user friendly as possible for their users. The way we develop our sustainability approach at KONE is through our strategy and we want our employees to remain safe and be able to perform in their roles wherever they are. AH: For us at KONE, sustainability is noth- ing new. After all, only sustainable compa- nies can be successful for more than 100 years. Sustainability means that a company should make every effort to improve its operations. Whether that is energy effi- ciency, taking care of your own people, or co-creating with customers. For us at KONE, sustainability is nothing new. After all, only sustainable companies can be successful for more than 100 years.” - ANTTI HERLIN Chairman Antti Herlin (left) and President and CEO Henrik Ehrnrooth (right) at KONE's Annual General Meeting in Helsinki, Finland.