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SUSTAINABILITY 2018 SUSTAINABILITY in FIGURES in This Sustainability Report, We Have Compiled Our Economic, Environmental and Social Ini�A�Ves, and Achievements

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SUSTAINABILITY 2018 SUSTAINABILITY in FIGURES in This Sustainability Report, We Have Compiled Our Economic, Environmental and Social Ini�A�Ves, and Achievements 2018 SUSTAINABILITY REPORT an Pe Cle rform a n n o ce ti c u d o r P n a e l C C le y a it n iv t Pa ac rtn Pro er Clean Content Infographics 3 About us 6 Global Mirka 8 An overview by our CEO 9 The Mirka Way and our organisation 10 SUCCESS DRIVEN BY PEOPLE 11 Clean, economical progress with biogas 12 Pumped for the day by cycling to work 13 CLEAN PROACTIVITY 16 Low environmental impact with Mirka Power tools 17 Digital tools ensure healthier work conditions 17 The customers’ needs in focus for Mirka Power tools 18 Sustainable abrasives 19 Water-based polish 20 CLEAN PARTNER 21 Mirka’s glass sanding solutions 22 Sustainability at the core of a global Mirka 23 CLEAN PRODUCTION 25 On-site manufacturing reduces transportation 26 Improved ergonomics through robotics 26 CLEAN PERFORMANCE 27 Reporting principles 29 Content index 30 REPORT SUSTAINABILITY 2018 SUSTAINABILITY IN FIGURES In this Sustainability Report, we have compiled our economic, environmental and social ini�a�ves, and achievements. Content: General Environment Economy Sustainability General Open communica�on and listening to our personnel are key AN OVERVIEW to the company's successful growth. At Mirka, we want to BY OUR CEO involve our personnel in the planning of opera�ons. EMPLOYEES EMPLOYEES FEMALE/MALE 2018 EMPLOYEES RECEIVING APPRAISAL AND PERFORMANCE REVIEWS 2018 232 565 Employees Finland, Total 796 Finland, Female 54 % 139 506 Finland, Male 53 % Employees Subsidiaries, Total 645 Subsidiaries, Female 79 % TRAINING HOURS PER EMPLOYEE GROUP Subsidiaries, Male 79 % 70 60 WORKFORCE TRAINING HOURS RESPONSIBILITY IS PART OF MIRKA’S 50 PER PERSON PER YEAR IDENTITY AND A NATURAL PART OF 40 OUR BUSINESS OPERATIONS. 30 Finland, female 32 h The objec�ve of Mirka’s business 20 strategy is long-term, profitable 10 Finland, male 30 h growth, allowing us to ensure 0 Subsidiaries, female 16 h sustainable development. 2014 2016 2018 Managers White Blue As markets globalise, responsibility collar collar Subsidiaries, male 20 h becomes more important. It is par�cularly notable that working MIRKA’S INJURY RATE HISTORY (IR) IN FINLAND 2000–2018 Number of accidents environment and occupa�onal safety 40 37 32 IR 200 000 Work hours perspec�ves, alongside the 30 30 significance of environmental 24 20 19 20 18 19 responsibility, are being emphasised 15 17 17 17 14 14 13 14,6 12 12 12 10 increasingly in all collabora�on with 10 6 6,8 6,8 5,7 7,8 6,9 6,3 4,7 5,9 5,4 5,8 stakeholders. We want to work 0 2,2 3,9 2,1 2,4 2,5 1,9 1,6 proac�vely on corporate responsibil- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ity and stand out as a pioneer of sustainable development in our sector. In recent years we have invested SUPPORT OF LOCAL SUPPLIERS 2018 (FINLAND) specifically in the further develop- ment of occupa�onal health and safety, and are aiming for zero We always use Pietarsaari 6,3% workplace accidents throughout all of local suppliers Vaasa and Mustasaari 4,6% our units. Vöyri 4,7% whenever possible. Uusikaarlepyy 3,8% We also want to be involved in devel- Kokkola 1,6% oping our customers’ working Supplier expenses environments, by offering innova�ve, to local municipalities 2018 Pedersöre comprehensive dust-free sanding (< 100 km from all four Raasepori solu�ons and ergonomically designed of our manufacturing sites Kauhava sanders. in Finland) Luoto We also aim to con�nually enhance 22,5% of total expenses Kruunupyy 1,5% our environmental responsibility by shi�ing to more environmentally friendly forms of energy and raw materials. Environmental Sustainability At Mirka we con�nually improve our environmental responsibility by shi�ing to more environmentally friendly forms of energy and raw materials. MATERIAL USAGE 2018 ENERGY USAGE 2018 8 276 (Tonnes) Renewable 255 470 (GJ) Renewable 6 198 (Tonnes) Non-renewable 202 288 (GJ) Non-renewable Stearate 1,3% (GJ) (GJ) Polishing agent 1,4% ENERGY USAGE BY ENERGY SOURCE 2018 ELECTRICITY USAGE 90 000 Tools and Packaging Renewable machines Non-renewable 1,5% materials Electricity 29 817 80 000 21,0% Steam 41 669 70 000 Grit Non-renewable 60 000 17,4% Electricity Metal 85 306 50 000 MATERIAL 0,3% Indirect USAGE Energy Usage 40 000 308 153 GJ 30 000 Adhesive 20 000 23,1% Backing Renewable material Heat 19 577 10 000 33,9% Renewable Non-renewable 0 Steam 169 803 Heat 7 699 2010 2012 2014 2016 2018 Renewable Non-renewable DIRECT ENERGY USAGE 3 617 Tonnes Renewable Packaging Materials Biogas 24 026 67 975 Liquid gas 4 659 Tonnes GJ 43 949 WATER USAGE Renewable Materials 3 in Products 2018: 75 266 (m ) 200 000 Tonnes 3 171 OIL USAGE (GJ) PRODUCTION WATER USAGE (Global, m ) Non-renewavable 150 000 80 000 Packaging Materials Total 13 742 Tonnes Total 100 000 6 198 Tonnes 60 000 Non-renewavable 50 000 Municipal water Materials Including Packaging 0 40 000 2012 2014 2016 2018 20 000 Ground water 0 2010 2012 2014 2016 2018 WASTEWATER (Global, m3) 25 000 20 000 QUANTITIES AND HANDLING OF WASTE TONNES CARBON DIOXIDE (Global, Tonnes) (CO2) 2017 2018 15 000 6 000 Jeppo Adven (biofuel) . .7 071 . .6 395 10 000 5 000 Propangas . .2 821 . .3 192 0 Electricity . .5 036 . .5 033 2010 2012 2014 2016 2018 Oravais 4 000 Adven oil . 43 . 104 Electricity . .1 122 . .1 349 8 000 kg 3 000 Karis Propangas . 615 . 777 6 000 Electricity . 529 . 604 2 000 4 000 Jakobstad Electricity . 961 . 982 2 000 1 000 Belgium 0 Electricity . 109 2013 2014 2015 2016 2017 2018 0 2013 2014 2015 2016 2017 2018 Cafro Electricity . 286 BOD7 (Biochemical oxygen demand) TSS (Total suspended solids) Recovery Landfill Recycling 18 893 19 673 Recovery 5 494 Tonnes WASTEWATER 2018 17 187 (m3) Recycling 229 Tonnes PRODUCTION WASTE 2018 Landfill 305 tonnes TONNES CO2 FROM COMPANY CARS 2018 (Equivalent) Non-hazardous Finland . 144 3 915 Tonnes Subsidiaries . .2 170 HAZARDOUS/ CARBON DIOXIDE (CO2) NON-HAZARDOUS 2018: 21 987 TONNES WASTE 2018 Hazardous 2 275 Tonnes PRODUCTION WASTE 2018 6 028 TONNES Profitable business ensures sustainable development Good financial performance DIRECT ECONOMIC VALUE GENERATED 2018 provides a stable basis for our social and economic responsi- bility, as well as for realising and further developing our Revenues environmental responsibility. Our objec�ve is self- sufficient, sustainable development of opera�ons. Opera�ng costs Employee wages and benefits Payments to goverment Payments to providers of cap�al Community investments About Mirka Mirka Ltd is a global company and polishing products, as well as innova- industries, including; microfinishing, is part of the family-owned KWH tively designed tools. powertrain, industrial rollers, consum- Group Ltd. Mirka’s business concept er electronics, and glass sanding. is to be world-leading by offering Approximately 97% of Mirka’s produc- a broad range of ground-breaking tion is exported, with products being For more than 75 years, our brand sanding solutions for surface fin- sold in over 100 countries. Mirka’s has paved the way for technological ishing and precision industry. Our business areas are focused on the breakthroughs in surface finishing, business focuses on our customers’ automotive, wood and boat industry, and we continue shaping the indus- needs. and the company’s typical customers try with our expertise. We follow our include manufacturers of wood prod- company values by being respon- Continuous improvements of our ucts, auto body shops and garages sible, committed, innovative and operations, our expertise and our and automotive manufacturers and respectful. We offer our customers customer interactions help us to subcontractors. Mirka’s products and sustainable solutions that consider offer tailored systems and compre- services also serve both the construc- financial, health, technical and envi- hensive commercial solutions that tion and renovation industry and the ronmental aspects. are supported by a wide range of composite industry. Mirka also sup- technically superior abrasives and plies innovative solutions for precision Our Clean Commitments We have compiled our economic, environmental and social initiatives and achievements on our sustainability platform (www.mirka.com/sustainability). Under these top- ics, we transparently detail the development of our corporate sustainability ethos with various KPIs. Vision Strategy Our Mission Company Policy Our Values Business Sectors ART, Wood, Transport, Industry, Precision Industries Competitive Advantages Competitive Disadvantages – Our critical success factors Management Systems – ISO 9001, ISO 14001, OHSAS 18001 Our Company Culture – The Mirka Way Our Clean Commitments Vision, Strategy and Operational Principles Association membership significant stakeholders are the all subsidiaries certified by 2020. customers, owners, employees, EPTA suppliers and service providers. Anti-corruption F.E.P.A. IEC In 2018, anti-corruption training Stakeholder engagement Kemianteollisuus r.y was given to all new employees Kotel r.y. We believe in sustainable and in Finland. Marklines Co honest stakeholder engagement, Nollis-foorumi and our objective is to maintain a During the reporting period, we Nykarleby Företagare r.f. continuous and active dialogue with received no reports of corruption SESKO our partners. involving our personnel or our busi- Suomalaisen Työn Liitto ness operations. Suomen Laatuyhdistys In stakeholder engagement, we Suomen Tekstiiliteknillinen Liitto r.y. utilize our Enterprise Resource Collective bargaining agreements Veromaksajain Keskusliitto r.y. Planning (ERP) and Customer 100% of employees are covered by Västra Nylands Handelskammare Relationship Management (CRM) collective bargaining agreements. Österbottens Handelskammare systems. Our CRM system enables a As an employer, we follow Kemian- customer-oriented approach where teollisuus ry’s (The Chemical Industry Corporate governance sales operations and sales planning Federation of Finland) collective are managed using the system.
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