KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT Value creation 9 MOVING OVER 1 BILLION PEOPLE EVERY DAY SHAREHOLDERS • Dividend 1.65 EUR per class B share • Basic earnings per share 1.89 EUR • Return on equity 34% SOCIETY • Contribution to sustainable urban environment • Wages, salaries, other employment expenses and pensions EUR 2.7 billion • Industrial Injury Frequency Rate (IIFR) 1.9 (-11% y/y) • Promoting diversity and non-discrimination • Increased amount of skilled workforce • Direct purchases EUR 3.4 billion • Income taxes EUR 300 million with effective tax rate 23.5% ENVIRONMENT • -0.2% y/y reduction of operational carbon footprint relative to net sales • -2.6% y/y reduction of Scope 1&2 carbon footprint relative to net sales • 30% of green electricity • 93% of waste recycled or incinerated • 100% corporate units, major manufacturing units and R&D units are ISO 14001 and ISO 9001 certified • 94% of strategic suppliers with ISO 14001 certification THE MOST SUSTAINABLE OFFERING • 141,000 new elevators and escalators delivered in 2017 • Maintenance and modernization services, >1.2 million units in maintenance base • Best in class energy efficiency, ISO 25745 A-class energy rating as the first elevator company • Up to 70% energy savings through modernization of elevators • Focus on safety and accessibility EMISSIONS AND WASTE • Carbon footprint from own operations 319,600 tCO 2 e • Waste, 40,600 tonnes • Wastewater effluents 9 tonnes OUTPUTS IMPACT are also typically long and stable (around 95% annual retention rate). New equip- ment and modernization are more cycli- cal in nature and follow the construction cycles. KONE has identified strategic inputs crucial in creating value for customers, shareholders and the society. These are: 1) competent and committed people and strong leadership, 2) innovative, sustain- able offering and global processes and systems, 3) best partners, 4) efficient manufacturing and delivery chain as well as 5) strong brand and solid reputation. In addition to these, KONE sees that the life cycle business model and the exist- ing maintenance base of over 1.2 million units have a crucial role in value creation. Our aim is to be a leader in sustaina- bility. Increasing energy and resource effi- ciency is among our top priorities and has an important role in making the most sus- tainable offering a reality. KONE is com- mitted to proactive safety culture and actively promotes safe practices among our own employees, our partners and the general public. Although we have a sig- nificant direct impact on society, a great deal of our value is created through our large network of suppliers and custom- ers, as well as through use of elevators, escalators, automatic building doors and integrated access control solutions man- ufactured and maintained by us. Our ulti- mate goal is to improve the flow of urban life.