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

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 development 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 responsibility, 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 topics, 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. bargaining agreements with trade We continuously aim to improve This helps us to better develop our unions Pro, YTN and Teollisuusliitto. our work with stakeholders and customer relationships and respond Pro, YTN and Teollisuusliitto have their maintain high ethical standards in swiftly to any customer needs. own representatives in negotiations all our operations. These efforts are Systematic planning of our sales between employer and personnel. supported by Mirka’s corporate gov- operations also optimises our travel, ernance and ethical guidelines for all which enables us to reduce our No discrimination group personnel. Mirka’s corporate environmental impact. governance creates a consistent During the reporting period, we re- framework for the entire group’s ceived no reports of discrimination. The CRM system is also essential in global operations, thereby enabling terms of quality management. The open and reliable local operations. Child labour system enables us to work system- The Board of Directors reviews atically on any issues related to When auditing suppliers Mirka and updates the corporate gover- quality, the environment, health and always check the minimum employ- nance materials on a regular basis. safety and Involve our customer in ment age to avoid using child labour. In addition, the company’s ethical our development process, for exam- guidelines instruct our employees to ple, when developing new products work in a way that does not create and solutions. personal obligations to outsiders. These ethical guidelines are part Digital systems also enable increas- of the induction process for new ingly paperless office work. The Mirka employees and training is arranged intranet, for example, plays an import- regularly. ant role here. It makes all internal information and instructions available in Significant stakeholders digital format to personnel, regardless Our stakeholders are defined based of where their workstation is located. on how our business operations affect them and how their activities Certification of subsidiaries impact the development of our Most of Mirka’s subsidiaries are ISO business operations. Mirka’s most 9001 certified. Our goal is to have Global Mirka

Parent company KWH Group Ltd Vasa, Finland Head office Mirka LtdJeppo, Finland Production facilities Finland (Jeppo, Oravais, Karis and Jakobstad) Belgium (Opglabbeek) Cafro MCF (Italy)

Sales offices Subsidiaries Denmark, Norway, Estonia and Belgium Mirka Brasil Ltda. (Brazil) Markets served Mirka Belgium Logistics (Belgium) Mirka Canada Inc (Canada) Mirka Trading Shanghai Co., Ltd. (China) All Mirka’s subsidiaries, production facilities and sales Mirka France Sarl (France) offices are fully owned by Mirka Ltd. Mirka’s 17th Mirka GmbH (Germany) subsidiary Cafro MCF (Italy) was established in June 2017. Mirka (UK) Ltd (United Kingdom) Cafro is a leading manufacturer of Diamond and CBN Mirka India Pvt Ltd (India) wheels as well as PCD and PCBN tools. The 18th Mirka Italy s.r.l. (Italy), Cafro MCF (Italy) subsidiary, Mirka Belgium Logistics in Opglabbeek, was KWH Mirka Mexicana, S.A. de C.V. (Mexico) established in January 2018 for stock-keeping operations. Our most well-known brands Mirka Rus LLC (Russia) Mirka Scandinavia AB (Scandinavia) Our most well-known brands Abranet®, Mirka Asia Pacific Pte Ltd (Singapore) Autonet®, Abralon®, Mirka® DEOS, KWH Mirka Ibérica S.A.U. (Spain) Mirka® DEROS, Mirka® LEROS, Mirka Mirka Turkey Zımpara Ltd Şirketi (Turkey) Iridium®, Mirka Novastar™, Gold, Mirlon Mirka USA Inc. (USA) Total®, Polarshine®, myMirka®, Q.Silver®, Mirka Middle East FZCO (United Arab Emirates) Net by Mirka and Dust-free sanding

Global Mirka An overview by our CEO

Long-term sustainable development We have a policy of sourcing raw has always been an important and materials, components and services Health and ergonomics, naturally, also natural part of Mirka’s business, from locally when possible, and great care apply to our employees here at Mirka. start to finish. It is an integral part of is taken in auditing and approving all Over the past years, there has been Mirka’s vision: to be seen by customers suppliers. We are only as sustainable substantial investment in Health and and interested parties as the most as our whole network is together. Safety development and ergonomics, responsible company. This vision of for example, improved lighting at our sustainability is expressed in our clean Mirka’s factories in Finland are located sites. For years our zero-accident policy commitments. This means that we in the countryside, and we continue has led us to continuously improved strive to manage all parts of our oper- to invest heavily in our world-class occupational safety and well-being in ations and manufacturing with as little facilities. Not only are we proud of our the company towards world-class levels. impact on the environment as possible capabilities and technology, but we and ensure that using our products are also proud to contributing greatly, Details on the topics mentioned here improves health and ergonomics for both directly and indirectly, to keep- and much more can be found in this end users. ing the countryside alive and thriving. Sustainability report. All in all, we feel that we are following our vision When considering the environment, The cornerstones for our customers are of being the most responsible com- our goal is to develop environmentally of course our dust-free sanding solutions pany in our industry. We are proud of friendly manufacturing processes and and ergonomic tools. Over the past years, our achievement, but also humble use sustainable raw materials. A good these have been complemented with regarding future challenges for creat- example of the latter are our wa- the myMirka® app. Through the app, the ing a more sustainable world. We are ter-based polishing compounds which user can monitor, for instance, vibration committed to doing our part! are better for users and the environ- exposure and thus take health and ergo- ment than solvent-based compounds. nomics to the next level.

Stefan Sjöberg, CEO. The Mirka Way and Our organisation

Our Company Culture Our Vision

At Mirka we understand that every job has its own ”We wish to reach a market position, where customers unique requirements, which is why we work closely with and interested parties see us as a market leader and the customers to provide tailored solutions that precisely most responsible company who drives innovation in our meet their needs. core business sectors.”

After gaining a clear understanding of exactly what Our Mission each customer requires, our technical customer support specialists recommend high-quality products, processes, ”We want to give people the opportunity to and training that ensure that successful results can be perform better.” achieved at every step of the operation. Our Values Sustainability is built into The Mirka Way. When the system is set up with all of the right parts and customers have all Responsible Innovative the information needed to get great For all results & resources. Open to new ideas. results, then their work is Ethical business practice. Continuously seeks to improve. Structured and well organised. We create solutions that are good for us, more sustainable. Cost-aware. our customers and society as a whole.

Committed Respectful Keep our promises. Every individual is valuable and can contribute. Close to the customer. Open work environment. Dedicated to high performance. Warm and genuine. Passionate people. Fair.

Parent company KWH Group Ltd

Our company Mirka Ltd Our organisation MIRKA LTD BOARD OF DIRECTORS Mirka’s long-term group strategy serves as the Chairman: CEO of KWH Group Ltd basis for the group’s comprehensive business 4 shareholder members plan, which is drawn up annually and approved 1 independent member by Mirka’s Management Team and the Board of Directors. All business and factory units 18 subsidiaries are involved in drawing up the business plan. MIRKA LTD MANAGEMENT TEAM Department-level goals are set based on the SUBSIDIARIES’ BOARDS OF DIRECTORS CEO Chairman: Mirka Ltd’s Sales Director business plan. The management team for the R&D Director Mirka Ltd’s CEO parent company Mirka Oy has one employee Chief Financial Officer Mirka Ltd’s Chief Financial Officer Production Director representative. Managing Director of the subsidiary Marketing Director Regional Manager Sales Director, Surface finishing Sales Director, Precision Industries All our 18 subsidiaries are100% Operations Director owned by Mirka Ltd.

EXTERNAL AUDITORS for the subsidiaries are appointed by Mirka Ltd

The Mirka Way and Our Organisation Success driven by people - Aiming for healthy and happy employees

“Mirka wants to offer its employees policy is to increase staff wellbeing in investments are made in workplace the chance to develop and grow,” different ways. For example, employ- comfort. explains Mirka Finland’s HR Manager ee ergonomics is a key focus area, Ulla Kauppi. both in the offices and in production “Taking care of our staff is just one “Thanks to the diverse range of facilities, in addition to which staff are way in which we look after our training on offer, our staff can develop offered a diverse range of exercise responsibilities,” states Ulla. “We don’t their expertise, which, combined with opportunities and cultural experi- take staff well-being for granted, and a positive, can-do attitude, a healthy ences to enjoy in their free time. Any we continue to make sustained efforts work ethic, and a good approach shortcomings are addressed swiftly, to promote it. Our objective remains to their work, enables Mirka staff to and solutions are sought for problem to improve staff satisfaction and advance in their careers and take on situations in ways that are satisfactory ensure that Mirka retains and further new challenges.” to all involved. Employees are provid- develops its reputation as a good One of the objectives of Mirka’s HR ed with good tools for their work and employer.”

Ulla Kauppi, HR Manager.

Success Driven by People Clean, economical progress with biogas Continuous Improvement Manager approximately 6,700 gas-powered Thankfully more and more vehicle Staffan Stenvall has had his bio- vehicles in FInland, with the refuelling manufacturers are producing their gas-powered Volkswagen Touran for network for gas-powered cars expand- own biogas vehicles, and converting a three years and has only positive things ing exponentially. In southern Finland petrol vehicle to one that can run on to say about it. “Biogas is undeniably the network is becoming relatively biogas is a relatively simple process. one of the solutions of the future,” he comprehensive, and even in the north Currently, Audi, Volkswagen, Škoda, explains. Biogas is a domestic, renew- the number of fuelling stations is SEAT, Opel (sold under the name able transport fuel, and the easiest way growing. Fortunately for Mirka employ- Vauxhall in the UK), Fiat and Mercedes to reduce transport-related carbon ees, Jeppo Biogas is located close to produce biogas vehicles as factory dioxide emissions by up to 85%. Biogas Mirka’s Jeppo unit, providing an easy standard. On the surface, the only production is intrinsically linked to the refuelling point. One benefit of biogas thing that distinguishes these vehicles circular economy, as biogas is pro- vehicles is that the engines can also from non-biogas alternatives is the fact duced from biowaste from agriculture, run on standard petrol if you happen there are two fuel gauges. The Stenvall industry and households, amongst to run out of fuel and don’t have a family’s environmentally friendly other sources. In the circular economy, refuelling point nearby. choices don’t stop with the car – they one person’s waste is another’s raw “Compared to electric vehicles, biogas are also making efforts to do their part material. vehicles are more environmentally when it comes to recycling and com- “Biogas isn’t just an environmental- friendly,” states Staffan. “The manufac- posting, and the roof of their house is ly-friendly means of transport, it’s also turing of electric cars and generation equipped with solar panels for heating wallet friendly. We save €1,000–1,200 of electricity cause significant carbon domestic hot water. annually on fuel and tax costs com- dioxide emissions, while biogas emis- “My next car will also, without a doubt, pared what we would be paying with sions levels are notably lower. Further- be a biogas car,” Staffan states. “A diesel.” more, the carbon dioxide emissions biogas car is an obvious choice if you The popularity of gas-powered of biogas also form part of the natural want to reduce your transport-related vehicles in Finland is growing rapidly, carbon cycle, unlike fossil fuels.” carbon footprint.” and registrations of gas-powered cars The only downside Staffan can think almost doubled in 2018 compared to of when it comes to biogas cars is the previous year. There are currently the limited range of models available.

Staffan Stenvall, Continuous Improvement Manager. Pumped for the day by cycling to work

Jarmo Saviaro cycles the two and a a quick glance at the bike rack will Jarmo does not claim to be a data half kilometres to work come rain or reveal all different kinds of wheels, nerd, and he doesn’t keep a record shine. from single gear basic models all the of kilometres cycled; cycling is a “If I were driving, I’d be significantly way up to modern road bikes. great way to get from A to B, which is more tired,” he states. According to Jarmo, you need to enough motivation for him. Cycling “I’d much rather jump on my bike have the right equipment to cycle to is also likely to save a significant than start up my car when it’s -25 °C. work. Your bike needs to be in good amount of fuel over the years, which Cycling also offers a number of other condition, and your clothes and means that it also brings personal benefits, being unsurpassed as a shoes need to up to the task. In the savings. Years ago, when Jarmo form of exercise that exerts mini- winter, it’s impossible to overstate began cycling to work, no one was mal pressure on the joints.” Jarmo the importance of front and rear talking about the environmental explains that he has had to give up lights. You can always cycle if you’ve impacts of driving, and the environ- running due to knee pain, but cy- got the right gear! However, it’s mental reasons were not really a fac- cling doesn’t trouble his knees. important to have the right attitude, tor in his decision-making either. But too; for those who prioritise comfort nowadays, as environmental factors Mirka encourages its employees above all else, year-round commut- become ever more important, it’s to lead an active life, and cycling is ing by bike might not be the best a nice feeling knowing that cycling an excellent way of doing this. And option. Jarmo is quick to point out, to work has benefits not just for the we’re a pretty active bunch – in the however, that you don’t lose any- cyclist but also for the environment! summer the bike parking facility is thing by cycling to work, but you do usually full. Jarmo’s commutes now stand to gain a range of health and take place on a Trek hybrid bike, and other benefits.

“Mirka encourages its employees to lead an active life, and cycling is an excellent way of doing this”

Jarmo Saviaro, Warehouse Supervisor. Benefits provided to full-time Occupational health and Percentage of employees receiving employees that are not provided to safety management system regular performance and career temporary or part-time employees. The Safety Committee has its meeting development reviews Benefits for full-time employees are: 4 times a year. The members of the Personal development and career 1) life insurance; safety committee are: development/opportunities are 2) disability and invalidity coverage - Occupational Safety Manager highly appreciated by personnel. 3) occupational health care - HR Manager Everyone has the possibility to discuss 4) retirement provision - representatives of production these with his or her manager at 5) parental leave, also 1-4 days management (unit managers) least once a year. Managers have when a child is sick. - health and safety representatives received instruction on how to lead 6) Food (lunch) compensation 50% (personnel, all units) these discussions. At this moment we during a workday in our canteens - representatives of occupational do not have a system which tracks 7) physical training vouchers and healthcare (all units) the number of individuals who have massage had a personal review in production. 8) other one-timers The Safety Committee has its formal White collar-employees have their agenda and follows up on different annual discussions because they Minimum notice periods regarding actions. are bound to personal targets and a operational changes yearly bonus. In production, we have The minimum number of weeks’ Worker participation, consultation, a salary model which is based on notice typically provided to employ- and communication on occupational competencies and the development ees and their representatives prior health and safety of competencies. to the implementation of significant All of the workers (100%) whose work, operational changes that could or workplace, is controlled by the Incidents of discrimination and substantially affect them is 2 weeks organization, that are represented corrective actions taken at Mirka. by formal joint management-worker During this period there were no health and safety committees. reports of discrimination.

Workforce (2018) New employee hires and employee turnover (2018) Workforce (Finland) 796 Age Total number of employees on parental leave 59 18-24 20 Total number of employees (women) on parental leave 12 25-29 11 Total number of employees (men) on parental leave 47 30-34 15 Total number of employees (women) that returned to 35-39 11 work in the reporting period after parental leave ended 2 40-44 15 Total number of employees (men) that returned to work 45-49 6 in the reporting period after parental leave ended 43 50-55 7 Total number of employees (women) still on parental leave 8 55-60 1 Total number of employees (men) still on parental leave 60- 86

Workforce Statistics Average hours of training per year per 2014 2016 2018 Training Training hours Training hours hours [h] Female Male [h] Female Male [h] Female Male Managers Managers Managers

624 2068 1242 3100 1307 3264 White collar 1308 1788 White collar 1714 4450 White collar 1805 4686 Blue collar 1867 5241 Blue collar 2454 5850 Blue collar 2584 6160 White collar (DC) White collar (DC) 7697 Managers (DC) Managers (DC) 2451 Totalt MSF [h] 12895 Totalt MSF [h] 18810 Totalt MSF [h] 19806 Total DC [h] 8781 Total DC [h] 10148 Tot 27591 Tot 29554

2014 2016 2018 Average h per gender [h] Average h per gender [h] Average h per gender [h] Female MSF 21 Female MSF 30 Female MSF 32 Male MSF 19 Male MSF 28 Male MSF 30 Female DC 18 Female DC 16 Male DC 20 Male DC 20

Average h per Average h per Average h per employee group [h] employee group [h] employee group [h] Managers 38 Managers 62 Managers 65 White collar 29 White collar 57 White collar 60 Blue collar 14 Blue collar 17 Blue collar 18 White collar (DC) 11 Managers (DC) 6

Workforce statistics Reducing our products’ environmental footprint

We proactively look for ways to of energy needed to manufacture - designing efficient product trans- reduce the environmental footprint of our coated abrasives. port routes – this reduces our carbon our products. We do not use chemi- - switching to a non-heavy metal footprint. cals on the List of Substances of Very colouring agent – this reduces the High Concern (SVHC) and are in full amount of heavy metal in our In order to be a pioneering compa- compliance with the EU’s Registration, products. ny in our industry and to continue Evaluation, Authorisation and Restric- - improving the handling and pro- offering our customers innovative, tion of Chemicals legislation (REACH). cessing of waste resin – this ensures high-quality sanding technology better health and safety for our solutions, product development has Sustainable Innovation workforce and decreases the chance a key role in our operations. The focus We see sustainable innovation as of disposal hazards. of product development is to create smart and profitable. Here are some - innovating new catalyst technology comprehensive solutions that not of the advancements we are making: – this makes our thermal machine only solve the customer’s everyday lines more efficient, reducing the challenges but also address occupa- - developing new low-energy tech- energy consumption needed to tional safety and working environ- nologies – this decreases the amount make our products. ment concerns. Clean Proactivity

Clean Proactivity Low environmental impact with Mirka Power tools

Mirka Power Tools have been on the front “For example, the German market has tools are controlled by five EU directives: line regarding compliance with environ- for many years focused on recycling, • Restriction of Hazardous Substances (RoHS) mental laws and regulations for many and there are often inquiries from there • Machinery Directive (MD) years, but things ramped up in 2016, with regarding the recyclability of Mirka • Radio Equipment Directive (RED) a separate team within the Power tools sanders,” explains Compliance Manager • Registration, Evaluation, Authorization unit focusing on compliance. The key focus Annika Stenmark. and restriction of Chemicals (REACH) of the team is making sure that Mirka • Waste Electrical and Electronic Power tools have an as little impact on the Whenever there is suspicion of non- Equipment (WEEE) environment as possible. compliance the product in question is sent to an external independent labora- Besides those, there are also product-spe- It is also becoming increasingly clear that tory for testing. There is also continuous cific standards that apply. Compliance customers have become more environ- internal auditing of components used in is declared in the user’s manual of all mentally conscious, and the company has production, their supply chain, and oth- machines, which is compulsory for Mirka been receiving more and more requests er aspects to ensure that no electronic sanders to receive CE certification. for compliance certificates and documen- components contain conflict minerals. tation. Development and manufacture of power

Digital tools ensure healthier work conditions

The possibility to monitor health and over a longer period**. With the myMirka that monitors the temperature status of safety at work took a leap forward with the Dashboard, which visualizes the vibration the machine motor and motor drive; if launch of the myMirka® App. One aspect is monitoring collected through the myMirka any of these show signs of overheating, the possibility to monitor vibration levels App, workplace conditions can easily be the machine will automatically switch to and exposure to, for example, prevent followed up and analysed and ergonomics safety-mode. With this, the lifetime of the white-finger syndrome. are significantly improved. tool is increased and the carbon footprint reduced. By connecting a Mirka electric sander to Besides vibration, the app can also measure the app via Bluetooth* the user can mon- energy consumption, workloads, and itor vibration levels in both real-time and speed when sanding. There is also a feature

*Bluetooth connectivity is not available in all countries **Some features are available as in-app purchases The customer’s needs in focus for Mirka Power tools

The Mirka® CEROS was released ten years new solutions to replace pneumatic ma- daily vibration exposure can be measured ago to revolutionise the market. The chinery for the automotive manufacturing using the MyMirka app. Dust-free work design was based around the objective of industry. is another key element of the products’ developing an electric sander that was as The design process for a new tool is based ergonomics, as users need to be able to light, small and effective as the pneumatic on the customer’s needs, with ergonom- work without breathing dust into their tools that were far more common at the ics as a key factor. At first, the product is lungs. The combined effect of all these time. This required the implementation tested internally, but end customers are factors makes working with Mirka tools a of new brushless motor technology and also an intrinsic part of the design work; far more pleasant experience for the work- close cooperation with end customers they are actively involved in testing the ers, while also keeping managers happy and the design agency. prototypes, and they provide invaluable by reducing absences due to illness. feedback when it comes to developing “The end result is history, CEROS, and its the product to be the best it can be. In “In spring 2018 the lightest long-neck successor, the Mirka® DEROS, are still the terms of ergonomics, we’ve received noth- sander on the market, the Mirka® LEROS, best electric random orbital sanders in ing but positive feedback on the finished was launched. The product has been very the world, which many have attempted products! well received,” as Veli-Pekka Västi explains. to copy with little success,” explains Unit Customers have told us how happy they Manager Veli-Pekka Västi of the Power Chief Engineer Caj Nordström has are not only with its lightness and good tools unit. been at the forefront of Mirka’s product balance, but also with how pleasant it is By switching from pneumatic tools to development in terms of tools, and his to use, thanks to the flexibly maneuver- electric ones, you can save a significant uncompromising stance on ergonomics ing oscillating head. “Helping customers amount of energy. For example, in the and balance has rubbed off on the new is what motivates me. It’s great to be case of the Mirka DEROS, this means up designers too. The designers are motivat- involved in the development of unique to 90% less electricity consumption than ed by the thought of healthy and happy new products that make the lives of end that of an equivalent pneumatic tool. end users who can do their work with the customers that bit easier and healthier,” The trend is moving increasingly towards best possible tools. In addition to Mirka’s concludes Veli-Pekka. electric and battery-operated devices, and electric tools being light, reducing vibra- Mirka is working actively on developing tion has also been a key area of focus, and

Unit Manager Veli-Pekka Västi, Power tools. Sustainable abrasives

When aiming for the perfect finish, you ment, whether during the manufac- Meet Development Engineer Hans are never satisfied. There is always a turing process or when you are using Hede, better known as Pukka, who hunger to explore and improve. This is them. With our abrasives, you can has given us the groundbreaking at the heart of Mirka’s R&D team, they work more effectively, since the dust- Abranet, Abralon and Mirlon. are continuously breaking new ground free solutions save you time, both and developing new solutions - push- when sanding and when cleaning “You can always try to make abrasives ing the frontier of what we can expect afterwards. You can save money, wa- more sustainable. They can be less from an abrasive, sander or polish. ter, and also the environment when wasteful, made of better raw material, there’s less waste from the sanding eco-friendlier chemicals, and so on. It One example of Mirka leading the way is process. is possible to do all these things, but the invention of Abranet. With one genius still, an abrasive is a wear-and-tear idea - to use a net instead of paper for the We have come a long way, and our product, with a very short lifespan. abrasive - we revolutionized sanding. products set new standards, but My idea that I’m working on now is the Mirka Way is one of continuous to prolong the lifetime of an abrasive Our goal at Mirka is to create sustain- improvement and always being one with new technology.” able abrasives that provide you with step ahead. Our ongoing fight for the the perfect finish while protecting environment is how we can make both your health and the environ- abrasives even more sustainable.

Hans Hede, Development Engineer.

Sustainable Abrasives Water-based polishes – A better choice for both you and the environment

Every polish that Mirka produces is wa- “It’s a close partnership with our “It’s also easier to cheat and hide ter-based. We sat down with Compli- production team and we always keep mistakes when using a solvent-based ance Manager Maria Sundqvist, who sustainability in mind when develop- polish. With a solvent-based polish develops our polishes, to find out why. ing new polishes,” Maria tells us. you’ll have a fast result, but it’ll wear off quickly and you need to re-do “Every one of the nine polishes that Kim Rönnholm, Mirka’s polish port- it very soon,” Kim explains. “With we produce are water-based. It’s a folio manager, notes that it is very water-based polishes, you need to sustainable commitment from our important for customers that Mirka put a little bit more effort into the side. Solvent-based products may be produces water-based polishes. polishing, but you’ll have a better, effective in the short run, but they longer-lasting result.” are more damaging and harmful, “If they aren’t water-based, they have both for the user and the environ- a terrible smell. You need a mask ment.” Mirka’s polish production takes when polishing. Our water-based place in Jakobstad, Finland. polishes are very user-friendly.”

Compliance Manager Maria Sundqvist. Strong relationship built on trust and mutual benefit

We consider ourselves a partner to our customers. We provide them A foundation of our lasting and to our customers, suppliers, and with products, services, and solutions genuine cooperation with stakehold- co-workers. Being a clean partner while they provide us with customer ers is a constant and active dialogue means developing strong relation- feedback and continued business. with all partners. This allows us to ships built on trust and mutual bene- react quickly and effectively to needs fit. It also means setting up two-way Supplier Partnerships arising within our customer base. communication to promote honesty, We believe in developing long-term, integrity, and collaboration. fair partnerships with suppliers that are consistent, reliable, and secure. Customer Partnerships Our goal is to reduce risks for both our We are both a supplier and a partner business and our suppliers.

Clean Partner

Clean Partner Mirka’s glass sanding solutions - Better for the environment while saving you time and money

In 2018, Mirka France was training the Christophe Pichon, Salesman, and Mont Blanc team on the top of the Nicolas Vermorel, Technician, Mirka mountain, at an altitude of 3 842 m / France, tell us. 12 605 ft. Mirka provided an efficient, sustainable, and economic mainte- “It’s not easy to see at 3 842m. There nance solution; instead of replacing was also a lack of oxygen, risk of alti- the scratched glass panels, which tude sickness, and the temperature of would have to be brought in by the glazing made it difficult.” helicopter, the team would sand and polish the glass panels on the spot. But in the end, the result was great. The customer was delighted be- The goal was to sand the glass on cause they avoided transporting new the glass walkway that leads to the glazing to the top. There were also a “Step into the Void“- Aiguille du Midi significant saving of time and money, Skywalk. This is 8mm thich protec- renting a helicopter costs 12 000 € per tive glass. It is extremely complex to hour. replace, so the Compagnie du Mont Both Christophe Pichon and Nicolas Blanc preferred to sand and polish the Vermorel agree that it was a unique glass to eliminate the scratches from experience. the wear and tear of tourist traffic. “It was magical being up there!” It was a challenging project.

Clean Partner Sustainability at the core of a global Mirka

At Mirka, we opt for using energy electricity from renewable resources, we are as a business,” Jennifer Mar- more efficiently in every process, now there’s six, Mirka USA is one of shall, Marketing Executive at Mirka by using more renewable energy them. UK explains. resources. We do this to combat climate change and to lower our en- “At Mirka UK, we believe we can Another example of our clean com- vironmental footprint. Sustainability make a positive change, both mitments is Mirka Brazil, which is is part of “The Mirka Way” and is in- through grand actions but also using biofuels for company cars. Here tegrated throughout all areas of the implementing small changes, such as we have collected some other great business and daughter companies. changing all our office light bulbs or examples of how Mirka locations Two years ago, there were three introducing a cycle to work scheme. across the world are doing their part Mirka daughter companies using Sustainability is ingrained into who to be more energy efficient.

“Sustainability is ingrained into who we are as a business”

Mirka Belgium (MBL) Mirka Belgium has solar panels on equipment. Site Manager Richard In 2018 we launched paperless the roof and is heavily committed Tattum explains, “We have recently picking in the warehouse, saving a to sorting and recycling a large installed LED lighting to reduce huge amount of paper, and intro- percentage of their recyclable waste electricity usage and installed a duced new types of boxes, padded (cardboard, shrink-wrap plastics, temperature control system to reduce bags and paper tape for small orders pallet straps etc...). They have also the amount of gas we use to heat the so that our customers can also easily found ways to reduce the amount of building during the winter. We are also ‘reuse or recycle’ our packaging too.” electricity consumed, such as install- looking at minimising the packaging ing LED lighting and next-generation we add to our orders in line with the battery chargers for the warehouse “‘reduce, reuse, recycle’ idea.

Clean Partner Mirka Mexicana (MMX) For Mirka Mexicana, sustainability At the office in Mexico, recycling and means being able to optimally use waste sorting are very important. the resources we have. “We are a paperless office. Since 2013 “We are aware that we leave a mark we have prioritized using digital media and impact on the environment with for documentation to use fewer paper the simple fact that we are working. resources.” We follow the sustainability pro- This sustainability work is also present gram, but we also do other things in the field. “We support our employ- to preserve our ecosystem,” Maribel ees with car maintenance, so the cars González, Operations Manager, Mirka can be in good condition and reduced Mexicana S.A. de C.V. explains. emissions”.

“We follow the sustainability program, but we also do other things to preserve our ecosystem”

Cafro MCF (Italy) Cafro has 20kW of solar panels in- needs, for internal use instead of grid A charging station was installed in stalled on the roof of Hall 3, supplying reintroduction. the parking lot, with room for another approximately 4% of Cafro electrical electric car. A hybrid car is also rented energy needs: this energy is not used Sustainability is an important principle when needed, instead of a typical directly by Cafro but reintroduced in for Cafro and the management has diesel. the electrical grid, Federica Bonifa- taken important steps towards the - All waste managed by the munici- cio, Cafro’s QHSE Manager, tells us. reduction of fossil fuel consumption, pality (food scraps, plastic, glass and The solar panels now cover less than for example: paper containers non-related to man- 10% of the roof surface, a possible - 2 years ago, Cafro changed electrical ufacturing) is now 100% separately investment for the future could be to energy supplier to a company that collected for recycling. install 200kW of solar panels covering relies primarily on renewable sources the whole roof in order to supply - Since 2018 an electrical car is used almost 50% of Cafro’s electrical energy by the employees for business trips.

Clean Partner Safety, quality and efficiency

Our production work culture is coating. toxic substance cryolite (two tonnes team-oriented. We work together to - phased out phthalates, used for per year) entirely. reach high-level safety, quality, effi- softening purposes, in 2004. ciency, and sustainability goals in all - found a phenolic resin to use with a Currently, we are developing a of our manufacturing facilities. lower content of free monomers over xylene-free process for fine grit 17 years ago. production. This process will be used Over the years, we have: - eliminated use of chromium to manufacture waterproof finishing - reduced the amount of VOCs by (for colour). sheets, a Mirka niche product. 250 000 litres by eliminating Iso- propanol as a solvent for stearate In 2012, we eliminated the use of the Clean Production

Mirka Workplace Safety Evolution 1997–2018

Year Action 1997 Started nearby reporting process for accidents 1998 ISO 14001certification achieved 1999 Began system for managing inspections 2000 Introduced OHSAS 18001 into our facilities (Occupational Health & Safety) 2001 Developed change management risk analysis 2002 Formed first safety group 2003 Introduced Zero Accident thinking 2004 Began new machinery acceptance inspection 2005 Started using Occupational Safety Card 2006 Established safety walks 2007 Developed root cause analysis 2008 Introduced Japanese 5S efficiency and effectiveness organisation system 2009 Initiated machinery risk analysis 2010 Oravais factory sets Zero Accident target 2011 Began systematic work of eliminating hazards 2012 Company-wide Zero Accident programme launched; achieved in Karis factory 2013 All factories have equal Occupational Health & Safety plans and metrics 2014 Full-time machine safety group initiated in Jeppo factory 2015 Improving warehousing and handling of chemicals 2016 Safetymoments and Environmental Safety Card training in Karis factory 2018 Occupational atmosphere survey conducted

Clean Production On-site manufacturing reduces transportation The largest project during the past by the consulting firm Ramboll and two years has been the phase-out monitored to meet environmental At the same time, the new maker will and closing of the old landfill in requirements. lead to reduced transportation emis- Oravais where left-over and discard- sions, since the possibility of manufac- ed material from conversion was Also, the use of fossil heavy fuel oil turing a wide range of materials used deposited. The landfill was consid- in heating has been changed to a in on-site conversion has decreased ered unsustainable and superfluous renewable energy source, i.e. wood the need for transport between since materials in question had been chips. However, the launch of the new Oravais and the high-bay warehouse transported to the Adven power plant combi-maker line has increased water in Jeppo. for some time, and in 2018 the landfill and electricity usage due to the man- was capped. The project was planned ufacturing processes demands.

Different areas of Mirka’s general safety vision: During 2015–2016 there were no • Risk management • Environmental safety instances of environmental damage • Safety communication • Rescue operations or negligence of environmental • Personnel safety • Production and operations safety regulations, and as such Mirka did not • Information security • Occupational security receive any related fines or sanctions. • Facility safety

Incidents of Mirka’s Injury Rate history (IR) in Finland 1999 – 2018 non-compliance Numbers of accidents IR 200,000 Work hours concerning the 37 30 32 30 health and safety 24 20 impacts of prod- 19 17 18 17 17 19 15 13 14.6 14 14 ucts and services 14 12 12 12 10 6.8 6 2.2 6.8 5.7 7. 8 6.9 6.3 4.7 5.9 5.4 3.9 5.8 2.1 2.4 2.5 1.9 1.6 We have not identi- 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 fied any non-compliance with During the reporting period (1999–2018) no fatal accidents occurred. regulations and/or Total number of injuries voluntary codes. IR = x 200,000 The factor 200,000 is derived from 50 work weeks at Total hours worked 40 hours per week per 100 employees.

Improved ergonomics through robotics

In Karis, there has been significant Also, changing the lighting in the handling in the weaving process. Be- investment in both energy efficiency entire factory to LED, has been con- fore, the rolls, weighing approximately and ergonomy over the past two sidered, but since lighting fixtures in 3-6 kg, were loaded into the machine years. The new production hall that the older part were updated recently, manually, and since there are thou- was introduced in 2017 only uses LED a more feasible solution is to gradually sands of rolls the task was repetitious lighting in both the ceiling and as work change the fluorescent tubes to the and unergonomic. Now there are lights at the machines. All in all, it has corresponding LED tubes. three robotic arms that load rolls for been a successful introduction and most of the material qualities. This has feedback from production workers has The biggest advance in ergonomics meant that the operators can focus been positive regarding the brightness. has been the automation of yarn roll more on manufacturing itself.

Clean Production Customer success

We are systematic in our approach – Profitable business ensures tions. These efforts are supported by we have a long-term economic strat- sustainable development Mirka’s corporate governance and egy and are focused on sustainability. Mirka Ltd is part of the KWH Group the ethical guidelines for all group Once we have decided what the right and is an independent, internationally personnel. Mirka’s corporate gover- thing to do is, then we will do it right. competitive, family-owned group, nance creates a consistent framework whose business strategy aims to for the entire group’s global operations, With customer performance, ensure stable long-term profitability. thereby enabling open and reliable health and safety in mind Mirka’s objective is self-sufficient, sus- local operations. The Board of Directors The success of our customers’ busi- tainable development of operations. reviews and updates the corporate ness is key to our own company’s This is made possible by a solid finan- governance materials on a regular ba- success. Designing products and cial foundation based on the positive sis. In addition, the company’s ethical services that improve our customers’ development of the company result guidelines instruct our employees to performance, health and safety in and strong solidity. work in a way that does not create their workplace help us achieve our personal obligations to outsiders. financial performance goals. Corporate governance These ethical guidelines are part of the induction process for new employees We continuously aim to improve our and training is regularly arranged. work with stakeholders and maintain a high ethical standard in all our opera Clean Performance

Clean Performance Mirka’s own indicators Mirka’s commitments to the environment 2016-2018 Expenditures Type of environmental protection (in EUR) 2016 2018 Waste disposal, Emissions treatment and remediation costs 1 156 466 1 989 347 Prevention and environmental management 870 908 647 828 Subtotal 2 072 374 2 637 175

Investments Type of enrvironmental protection 2016 2018 Combined waste disposal, emissions treatment, prevention and environmental management 3 126 333 4 212 613 Total expenditures and investments 5 153 707 6 849 788

Good financial performance provides a stable basis for our social and economic Proﬁtableresponsibility, business as well as ensures for realising and further developing our environmental sustainableresponsibility. development Our objective is self-sufficient, sustainable develoment of operations.

Good ﬁnancial performance DIRECT ECONOMIC VALUE GENERATED 2018 provides a stable basis for our social and economic responsibility, 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

Clean Performance Reporting Principles

Reporting Principles

Mirka publishes its Sustainability Report and indicators have been selected based on operations rather than only focus on every two years. This report is for corporate their business significance, impact and stake- positive developments. Where possi- sustainability in 2017–2018 and the infor- holder expectations and needs. We have ble, we have reported the information mation in the report is collected from all also made a cross-reference to the United from the current and previous periods units that are under direct control of Mirka Nation’s Sustainable Development Goals. for comparison purposes. Our Board of Ltd, unless otherwise specified. In addition Directors has approved this publication to the Sustainability Report, Mirka publishes The reported indicators and topics provide and confirmed that the presented infor- its annual review including the most signifi- our stakeholders extensive and reliable in- mation is accurate and verifiable. cant financial indicators as part of the KWH formation for assessment and a transparent Group Ltd’s Annual Report. picture of Mirka’s economic, social and environmental responsibility. We want to pres- For more information, please contact: Mirka’s Sustainability Report 2018 is a GRI ent our information in a comprehensive, [email protected] Standards 2018 referenced report (for more clear and understandable way. Our goal Tel. +358 (0)20 760 2111 details see Content index). The reported topics is to provide an objective overview of our

For more information about GRI, go to: www.globalreporting.org Content Index

Disclosure GRI Reference Location Omissions GRI 102: General Disclosures 2016 1. Organizational profile Name of organisation 102-1 www.mirka.com/sustainability Activities, brands, products, and services 102-2 www.mirka.com/sustainability and Global Mirka Location of headquarters 102-3 www.mirka.com/sustainability and Global Mirka Location of operations 102-4 www.mirka.com/sustainability and Global Mirka Ownership and legal form 102-5 www.mirka.com/sustainability and Global Mirka Markets served 102-6 www.mirka.com/sustainability and Global Mirka Inf Scale of the organization 102-7 ographics , www.mirka.com/sustainability , The Mirka Way Net sales, total capitalization broken down in terms of debt and equity Inf "Total number of employees by employment contract, Information on employees and other workers 102-8 ographics , www.mirka.com/sustainability , The Mirka Way by gender and by region" Significant changes to the organization and its supply chain 102-10 www.mirka.com/sustainability , Infographics Association 102-13 About Mirka 2. Strategy Statement from senior decision-maker 102-14 An overview by our CEO 3. Ethics and integrity Values, principles, standards and norms of behavior 102-16 About Mirka , www.mirka.com/sustainability 4. Governance Governance structure 102-18 www.mirka.com/sustainability , The Mirka Way 5. Stakeholder engagement List of stake holder groups 102-40 About Mirka Collective bargaining agreements 102-41 Infographics , About Mirka Identifying and selecting stakeholders 102-42 About Mirka 6. Reporting practice List of stake holder groups 102-40 About Mirka Collective bargaining agreements 102-41 Infographics , About Mirka Identifying and selecting stakeholders 102-42 About Mirka Changes in reporting 102-49 Reporting principles Reporting period 102-50 Reporting principles Date of most recent report 102-51 Reporting principles Reporting cycle 102-52 Reporting principles Contact point for questions regarding the report 102-53 Reporting principles Claims of reporting in accordance with the GRI Standards 102-54 Reporting principles) GRI content index 102-55 Content Index

Disclosure GRI Reference Location Omissions UN-SDG GRI 201: Economic Performance 2016 Direct economic value generated and distributed 201-1 Infographics GRI 204: Procurement Practices 2016 Proportion of spending on local suppliers 204-1 Infographics GRI 205: Anti-corruption 2016 Communication and training about anti-corruption policies and procedures 205-2 About Mirka Categorisation by region and employee category Confirmed incidents of corruption and actions taken 205-3 About Mirka GRI 301: Materials 2016 Materials used by weight or volume (Associated process materials not included) 301-1 Infographics GRI 302: Energy 2016 Energy consumption within the organization 302-1 Infographics GRI 303: Water 2016 Water withdrawal by source 303-1 Infographics GRI 305: Emissions 2016 Direct (Scope 1) GHG emissions 305-1 Infographics GRI 306: Effluents and Waste 2016 Water discharge by quality and destination 306-1 Infographics Waste by type and disposal method 306-2 Infographics Mirka's own Workenvironment and environmental protection expenditures and investments by type indicators About Mirka GRI 307: Environmental Compliance 2016 Non-compliance with environmental laws and regulations 307-1 Clean Production GRI401: Employment 2016 New employee hires and employee turnover 401-1 About Mirka , Success driven by people Parental leave 401-3 About Mirka , Success driven by people GRI402: Labor/management realations 2016 Minimum notice periods regarding operational changes 402-1 About Mirka ODR, LDR and AR GRI 403: Occupational Health and Safety 2016 not reported. IR not Occupational health and safety management system 403-1 About Mirka , Success driven by people splitted by gender or region. First aid level "Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, 403-2 Clean Production injuries are excluded and number of work-related fatalities" from the InjuryRate (IR) Worker participation, consultation, and communication on occupational health and safety 403-4 About Mirka , Success driven by people GRI 404: Training and Education 2016 Average hours of training per year per employee 404-1 About Mirka , Success driven by people Percentage of employees receiving regular and career development reviews 404-3 About Mirka , Success driven by people GRI406: Non-discrimination 2016 Incidents of discrimination and corrective actions taken 406-1 About Mirka GRI408: Child labor 2016 Operations and suppliers at significant risk for incidents of child labor 408-1 About Mirka GRI 103: Management Approach 2016 Explanation of the material topic and its Boundary 103-1, 103-2, 103-3 Reporting principles The management approach and its components 103-1, 103-2, 103-3 Reporting principles Evaluation of the management approach 103-1, 103-2, 103-3 Reporting principles GRI: Customer Health and Safety 2016 Assessment of the health and safety impacts of product and service categories 416-1 Clean Proactivity Incidents of non-compliance concerning the health and safety impacts of products and services 416-2 Clean Proactivity