20 Sustainability Report 17 Technopolis in Short

Fair value of Net Sales Investment Properties EUR 179.7 Sustainability Report 2017 EUR 1,537.9 million million (change +4.4%)

Contents: CEO’s Q&A...... 3 100% 701,900 m2 Sustainability Approach & Management...... 4 Service Rentable Area Attitude Solid Results 2017...... 8 Shared Workspace...... 10 6 224 Sustainable Efficiency...... 14 1,600 Customers Countries Employees Skills & Integrity ...... 24 Financial Impacts in Value Chain...... 32 17 11 Reporting Principles and Limitations...... 34 Campuses Cities GRI and EPRA sBPR Index...... 38 Assurance Statement...... 42

Technopolis is a shared workspace expert. We provide efficient and flexible offices, coworking spaces and everything that goes with them. Our services run from designing the workspace to reception, meeting solutions, restaurants and cleaning. We are obsessed with customer satisfaction and value creation. Our 17 campuses host 1,600 companies with 50,000 employees in six countries within the Nordic and Baltic Sea region. Technopolis Plc (TPS1V) is listed on Nasdaq Helsinki.

2 CEO’s Q&A

Walking the Talk Technopolis CEO Keith Silverang rode 13,500 km corresponding to

2,300 CO2 savings. His total with cars was only 3000 km in 2017.

About the Report It is a priority for us to depict our environmental and social impacts in a transparent and meaningful way. In our report, sustainability What does sustainability strategy. These contribute to to those that are more community productivity. So we will continue is described in accordance mean to Technopolis? maintaining high occupancy and related – people’s need to share and to make sure that each campus with GRI (Global Reporting property values, but also to better to feel connected; to be part of a provides not only efficiency, Sustainability is an integral part Initiative) Standards and CRESS sustainability performance and community. sustainability and flexibility, but also of any successful company’s core (Construction and Real Estate enhanced quality of life in the a vibrant community of companies business. At Technopolis, it is a Sector Supplement) and the third workplace. In short, shared life is the new and people that enjoy working day-to-day activity reflected in edition of the EPRA’s Sustainability normal and this also applies to together in an environment that eco-efficient premises, motivated Best Practice Recommendations The Shared Economy workspaces. From our point of supports productivity and well- employees, services that support for reporting. We have also view this means that customers are being. customer success, and a sense of – what is it all about? internally assessed and concluded demanding more flexibility, more community. that the content of our report In a “shared” or “collaborative” efficiency and better employee We are developing our service contains relevant information in economy, parties provide one productivity from workplaces. This offering to match the increasing relation to the main matters of the The world of work is undergoing another access to assets or services is our sweet-spot and we have been demand for shared work Non-Financial Reporting Directive major changes as the forces behind – whether for a fee or for free. The an ambassador of this approach environments and mobile work, although this regulation does not the shared economy intensify. We change is driven by the young and since Technopolis’ got started. and we are investing in the apply to Technopolis. embrace these changes – in short, tech-oriented; there is evidence continuous improvement of the we develop, own and operate shared that millennials care less for customer experience. I’m confident Why do workspaces matter? Technopolis sees sustainability workspace campuses, with the ownership. The drivers behind that this commitment will as a competitive advantage that emphasis on the word shared. The the change are many, and they Workspaces increasingly offer ultimately enhance Technopolis’ influences our reputation and very idea of more and more people can be roughly categorized into companies a competitive advantage competitiveness and boost success, and as an investment in sharing the same space comfortably, technology, economic and societal to attract the best talent. In the shareholder value. efficiently and sustainably goes to drivers. Sustainability-related workspace sector, there’s a real future prerequisites for operation. the heart of sustainable thinking drivers range from hard facts such focus on trying to maximize We hope that this vision is reflected as well as the Technopolis business as the scarcity of natural resources human potential, performance, and Keith Silverang, CEO in our report.

3 Our Strategic Sustainability Approach

Sustainable Shared Workspace Skills & Integrity Efficiency Communities that Motivated & Eco-efficient, Healthy Support Success, Competent People and Resilient Spaces Well-being & Productivity with Integrity

Our Values: Drive, Service, Integrity

Sustainability is incorporated into reflected in eco-efficient premises, grasp for internal and external our operations. We sustain our our customers and partners to Technopolis’ corporate strategy motivated employees, services that stakeholders, in order to better competitiveness over the long term find meaningful measures to and DNA – in a nutshell, our support success, and a sense of steer and motivate actions. by adapting to relevant social and support their success, workspace strategy is to create a sustainable community. environmental demands and the well-being, and productivity. With competitive advantage by selling This strategic approach takes into requirements of the community. this approach, we aim to enhance less space per person, but more We aim to focus our efforts on account the long-term perspective, our own and our customers’ efficiency, flexibility and services those items that are most relevant the megatrends in our sector, Driven by changes in work competitive advantage through to customers. For us, sustainability to us, and to convey the message and the customer experience and growing demands from sustainability. is a day-to-day activity that is in a framework that is easy to philosophy that is at the heart of stakeholders, we cooperate with

4 Focus Areas

Technopolis categorizes the impacts and measures of its Corporate Sustainability under three themes. The aim is to continuously develop the issues related to these themes.

Shared Workspace – Communities that support success, well-being and productivity Technopolis offers quality workspaces, versatile services and an inspiring community, that make the customer’s business flexible and efficient. This way, Technopolis contributes to the profitable growth of its business and the community.

Sustainable Efficiency – Eco-efficient, healthy, and resilient spaces Technopolis offers its customers eco-efficient, healthy, and resilient spaces and services, by which it enhaces its competitive advantage within the industry.

Skills and Integrity – Motivated and competent people with integrity An inspiring and positive corporate culture and purposeful work are at the center of Technopolis’ talent engagement. Strong core values and ethics lay the foundation for the company’s responsible business practices and ensure compliance with its Code of Conduct, robust corporate governance, risk management, and responsibility for the well-being and satisfaction of personnel. By operating ethically, Technopolis ensures transparent value creation for stakeholders in the long term.

The focus areas – Shared Workspace, Sustainable Efficiency, and Skills and Integrity – all include a set of targets and actions designed to guide the work.

5 Technopolis’ sustainability work is indicators since 2011, and they Accounting, Investor Relations Corporate Sustainability guided by its strategic sustainability were last updated in 2017. The and Marketing. The Group approach and company values. strategic sustainability targets Management Team monitors the Management In addition, the foundation of are discussed on pages 8–9. The achievement of the sustainability sustainability at Technopolis effects, management practices, targets. The policies that guide comprises the company’s disclosures and objectives sustainability are continuously sustainability action plans, the associated with the essential points monitored and developed. The Code of Conduct for employees of view of corporate sustainability Group Management Team and and suppliers, the risk management are described in the table on pages Board of Directors are responsible policy, and annual plans related 36–37 by theme. At Technopolis, for ratifying Technopolis’ Group- to personnel development and sustainability activities are wide policies. equality. coordinated by the Sustainability Manager. The measures taken are The management measures and Technopolis has set targets for distributed by function among Real systems are discussed in more its selected key sustainability Estate operations, HR, Finance & detail in connection with the key

Materiality Matrix

1 Building Resilience 2 Eco-efficient Premises 3 Health and Safety

9 4 Activity in Communities 8 1 5 5 Customer Satisfaction and Well-being 3 2 7 6 6 Generation of Economic Value Added for Stakeholders 4 7 Employee Development and Engagement 8 Open and Compliant Communication Influence on Stakeholders Significance of Technopolis’ impacts 9 Code of Conduct and Compliance

Sustainable Efficiency Shared Workspace Skills & Integrity

6 corporate sustainability themes and public debate. The points or potential significance of was 48%, and representatives of Officer was elected to be the and aspects. of view are grouped according Technopolis’ impacts. all stakeholder groups identified president of the Council at the end to three corporate sustainability by Technopolis took part. In of the year. Technopolis is also a Approved External themes, and they cover the areas of With regard to corporate 2016 and 2017, the focus was member of RAKLI (the Finnish Agreements and Principles view of economic, ecological and sustainability, Technopolis has put on interviews with selected Association of Building Owners social responsibility. selected three main themes: Shared stakeholders. We also carry out and Construction Clients) and Technopolis complied with the Workspace, Sustainable Efficiency, regular customer satisfaction FIBS, Finland’s leading corporate Finnish energy efficiency agreement The aim of the reporting is to increase and Skills and Integrity. These surveys in order to follow up on responsibility network. for commercial properties (TETS) the company’s openness and themes have been the starting point the needs of our customers. The for the period 2011–2016. In 2017, transparency, thereby guaranteeing in defining the content and extent stakeholder groups and their main Technopolis joined the new energy stakeholders better opportunities efficiency agreement period in for assessing the operations and Finland, which is scheduled over making decisions. The aim of the reporting is to increase the 2017–2025. company’s openness and transparency. In 2016, the materiality matrix In accordance with its Code was refined based on interviews of Conduct, Technopolis also and management discussions. respects and supports, within its As a result of the assessment of of this of this sustainability report. topics of interest are presented on sphere of influence, the principles materiality, the material items were The points of view of sustainability Technopolis’ website. of the UN Universal Declaration of narrowed and combined to nine are reviewed on the basis of their Human Rights, the ten principles essential points of view. In addition, weighting and significance. One of the results of the of the Global Compact Initiative, with regard to the points of view, stakeholder discussions held in the Convention on the Rights of the Cooperation with the part of the value chain in which 2016 and 2017 was the effort put Child, and the ILO Declaration on Technopolis’ influence occurs was Stakeholders to Develop into carbon footprint calculation Fundamental Principles and Rights also assessed. No major changes Sustainability and reporting. As a consequence, at Work. The Code of Conduct is were implemented to the materiality in 2017, we participated in the discussed in more detail on pages The purpose of Technopolis’ matrix during 2017. The assessment CDP survey for the first time, and 28–31. cooperation with stakeholders of materiality corresponds with the is to collect information with we also refined our target setting. requirements of the GRI Standards which we can better respond Also during the year, we refined our Assessment of Materiality energy targets and held extensive Guides Operations and reporting guideline, and the material to the needs, expectations, aspects in the industry were workshops with our internal real Reporting and questions of stakeholders subsequently identified. regarding sustainability. In 2015, estate managers to come up with The content and structure of Technopolis carried out an motivating targets that reflect our the sustainability report have Themes and points of view that anonymous sustainability survey ambition level. are essential to Technopolis are been compiled on the basis of an among all stakeholders, requesting Memberships assessment of materiality based presented in the enclosed matrix, them to assess the significance of on management discussions, where the vertical axes illustrates the points of view of economic, Technopolis is a member of stakeholder surveys, and views that the influence on stakeholders and ecological and social responsibility. Green Building Council Finland; emerged in stakeholder activities the horizontal axis the current The survey response rate in 2015 Technopolis’ Chief Real Estate

7 Solid Results 2017

Development of Main KPIs Related to Targets Shared Workspace, Sustainable Efficiency and 2017 2016 Target KPI Skills & Integrity Shared Workspace Communities that support success Working on Technopolis campuses improves customer 3.9 3.9 >4 Customer Satisfaction The key sustainability results new targets are presented in the companies’ image as an employer and their employee Survey Rating (1-5) and ongoing actions of 2017 are adjacent table. satisfaction presented here in the adjacent Communities that create synergy tables. External Recognition Networking possibilities 4.0 4.0 >4 Customer Satisfaction Technopolis participated in Survey Rating (1-5) Higlights of the year the GRESB (Global Real Estate The results of the sustainability Sustainability Benchmark) survey activities were significant in 2017. for the fourth year in a row, and was again awarded prestigious One of the highlights was that Change % Green Star status. We also we were first in Finland to launch Sustainable Efficiency 2017 2016 2016-2017 Target 2025 received the EPRA gold sBPR and complete the LEED Volume Carbon Dioxide Emissions (Energy) award, acknowledgment of our Program for Existing Buildings. Amount (CO e kg/gross m2) 28 31 -10.6 -30% The Program enables cost-effective sustainability data disclosure. In 2 Energy environmental certification of addition we also participated in Total Consumption (kWh/gross m2) 209 211 -0.9 -10% multiple buildings and spreads the CDP questionnaire for the first 2 sustainability best practices time and received a rating of B. Building Energy Consumption (kWh/gross m ) 143 146 -1.7 -10% across the real estate portfolio. Water The prototype received Platinum Technopolis also received Consumption (l/FTE/year) 5,397 5,495 -1.8 5000 (l/FTE/year) precertification level. excellent results in the personnel Waste survey carried out in 2017 and Waste utilization rate, % 67 72 -5%-points 75% in the beginning of 2018 the New target setting Building Ratings and Labels survey provider Corporate Spirit All major organic During 2017, we updated our recognized us as one of the most growth projects and energy, water and carbon target inspiring workplaces in Finland. all applicable existing setting to match recent updates The acknowledgement is given Coverage of LEED ratings (% ,m2) 43 40 3%-points buildings to regulations, our ambition level only to the best performing and portfolio performance. The companies attending to the survey. Please read more about the calculation methods of the above environmental KPIs from the pages 17–21.

8 Skills & Integrity 2017 Target KPI Motivated and Competent People Employee satisfaction index AA ≥AA Rating in Corporate Spirit Employee Engagement target level is at least Good, AA. Survey.

Unimpeachable conduct Employees to complete the Code of 95% 100% Share of people (%) conducted the e-learning Conduct e-learning module in 2017 program

Involvement in local community Majority of own employees to participate <50% ≥50% by 2019 Share of people (%) participating to charity activity in a community charity activity by 2019

Ongoing Actions

Shared Workspace Key actions 2017 Taking meaningful measures to enhance our customers’ Carried out a feasibility analysis related to the use of WELL well-being and productivity on campuses certification in the upcoming organic growth project to understand the benefits of the certification and to see how well the Technopolis Design Guidelines already match these new WELL requirements Develop and maintain multiple channels to understand Discussions with stakeholders; Customer satisfaction customer and other stakeholder needs measurement on several different levels and several channels used, we e.g. follow customer satisfaction through real time dashboards.

Sustainable Efficiency Key actions 2017 Eco-efficient premises, Continuing property energy audits and Bottom to top analysis carried out in connection with the technical energy efficiency investments and studies for energy new energy target-setting process to better understand the efficient technologies energy saving potential. of our building stock. Increasing the share of green electricity Green electricity share increased in Baltic countries. Continuing renewable energy pilots Continued to carry out pilots, e.g. solar energy panel façade element in Oulu.

Skills & Integrity Key actions 2017 Personnel, training and equal opportunity plans revised Plans revised annually

9 Shared Workspace

Communities that Support Success, the real estate sector. In the future, that support our customers’ projects to create an environment Well-being and Productivity we will continue to look for better business operations. We provide that is best suited to support each ways to measure customer well- efficient and flexible offices, company’s objectives. being and productivity, as well as coworking spaces and everything Technopolis offers quality work­ Our key focus areas under the to find more meaningful measures that goes with them. Our services Our work environment bridges the spaces, versatile services and an Shared Workspace theme include to improve those. run from designing the workspace gap between work life and private inspiring community, that make customer satisfaction and well- to reception, meeting solutions, life. Working life services aim to customers’ business more efficient. being, activity in communities, Customer Satisfaction restaurants and cleaning. improve the well-being at work and This way, Technopolis contributes and generation of economic value and Well-being work comfort of our customers’ to the profitable growth of its added for stakeholders. Workplace solutions play a key employees. These services comprise business and communities. A company’s most important role in enhancing employee high-quality restaurant, meeting The selected Shared Workspaces investments are its people and its engagement: studies such as the and catering services, as well as In other words, our campuses key performance indicators are offices. In a place of work, both Steelcase Global Report 2016 well-being and personal services. are buzzing with activities and presented on the next page. are combined. The right people show that workspace satisfaction Well-being services offered on inspiring people. It is a priority for and the right work environment strongly correlates with employee Technopolis’ campuses include us that our customers get to know We put great emphasis on the combine to make success possible. engagement. We help our gyms and medical care. Personal their neighbors, promote their rising trend linked closely to our The Technopolis service concept customers to find the best partner services facilitate combining work business and have fun. business: health and well-being in combines office space with services for their working environment and personal life.

High workplace satisfaction positively correlates with high employee engagement.

Source: Steelcase Global Report 2016

10 Technopolis Networking in 2017

Shared Workspace

2017 2016 Target KPI Communities that support success Working on Technopolis campuses improves customer 3.9 3.9 >4 Customer Satisfaction companies’ image as an employer and their employee Survey Rating (1-5) satisfaction Number Overall Communities that create synergy of events Rating (1–5) Networking possibilities 4.0 4.0 >4 Customer Satisfaction 190 4.5 Survey Rating (1-5) Participants 12,250

Well-being frameworks given have been selected to be wants to work actively to help among the key indicators to be communities to grow and prosper. We also took steps to find new ways followed. B2B services aim to Technopolis has a voluntary Technopolis Workplace Solutions to develop customer well-being and encourage customer companies to work program to support charity productivity, including feasibility utilize each other’s services. The work, making it possible for every studies of WELL certification and purpose of our events is not to employee to use one working day a similar frameworks. In 2017, we Analysis Interior pitch or sell anything at the event year for voluntary work. did not carry out any certification itself, but simply to generate real- processes in this area, but we life engagement. We provide an Generation of Economic developed our workspace solution opportunity for prospects and Value Added services to better match the trend. customers to meet with us and In 2018, we will continue our work Technopolis generates added each other. to find meaningful measures to value with its properties, natural resources, personnel and its brand, improve customer wellbeing and Technopolis events are a great way which are merged into services productivity. to find new contacts and ideas, as in the Technopolis concept. Our well as to have fun. Some events slogan, “More than Squares,” Activity in Communities are for our customers only and describes Technopolis’ identity some open for all. It is important Technopolis promotes a sense as a service company and the Action to us to create and to maintain of community on its campuses concept by which added value the feeling of Technopolis as a by arranging various networking is generated. In accordance with community. We believe in the philosophy of Activity-Based Working. events. We measure the satisfaction its concept, Technopolis offers The activity-based design aims to improve office space efficiency of event participants carefully by Technopolis aims to operate business environments that operate focusing on the well-being of people at work. collecting feedback. The ratings responsibly in its community and smoothly 24 hours a day and work

11 Technopolis Concept and Creating Added Value for Stakeholders

Input Output

Environmental Impact CO emissions: Natural Resources Shared Workspace Scalable Concept 2 28 kg/gross m2 Water Energy consumption: Energy 209 kWh/gross m2 Materials LEED certifications: 25

Personnel Value for Customers Employees: 224 Excellent Space Cities: 11 Well-being Campuses: 17 Customer Satisfaction

Impact on Society Brand Equity Employment Product development Taxes Donations

Value for Owners Finance and Financiers Equity: EUR 764.9 million Earnings per share: 0.46 EUR Debt: EUR 954.9 million Interest & fees paid: EUR 16.8 million

Customer Experience Management

12 life services that offer assistance for new construction projects. By work and free time. Furthermore, optimizing these, the company can Technopolis campuses are filled offer cost-effective, comfortable, with activities and inspiring healthy and safe workplaces to people so that Technopolis’ clients customers. The aim has been can enjoy a productive sense of to mitigate the environmental community. impact of operations with environmentally friendly measures Technopolis is a vital community, and investments. The company has and 50,000 people work on its office chosen LEED certificates as the campuses. A growing independent tool for managing and minimizing community has formed around the the environmental impact of its one or two anchor customers on properties. each campus, allowing customers to find customers and partners Technopolis’ success is based within the community. Following on having skilled and motivated the expansion of the Technopolis employees. You can read more chain, opportunities for finding about our people practises on customers and business partners pages 24–27. have grown from campuses to new cities and countries.

The Technopolis brand is the result of more than three decades of business. It combines awareness of customers’ and companies’ established operating methods.

Customers are the company’s key stakeholder group, and all of the company’s operations aim at continuity and improving customer satisfaction. The purpose of the quarterly customer satisfaction survey is to develop business operations and to keep customer satisfaction at a high level.

The company’s consumption of natural resources is mainly related to the heating, ventilation, cooling, lighting and socket electricity of properties, utility water as well as materials for

13 Sustainable Efficiency

We offer our customers eco- match recent updates to regulations, efficient, healthy, and resilient spaces our ambition level and portfolio and services, by which we aim to performance. The new targets are increase our competitive advantage presentedin the table on page 8 as within the industry. Actions related well as in the tables of this section. to sustainable efficiency ultimately The baseline year for the targets benefit the customers and the is 2016. Our new carbon targets shareholders. Developing the eco- include Scope 1 and 2 emissions. efficiency, healthiness and resilience of spaces and services mediates The target figures are based on environmental impacts and the bottom-up analysis, focusing on pressure to increase maintenance each campus’ long term investment fees. Furthermore, it ensures that the plan. Top-down method was Sustainable customer has a high-quality indoor also applied to match the target Site Innovation environment via functional building with external frameworks. For Development systems, environmentally friendly us, reviewing the targets is a cleaning, and healthy materials. continuous process, the targets, This way, sustainable efficiency also ambition level and the matching maintains the occupancy rates and performance is to be analyzed profitability of the locations, and can annually. In connection to the increase the value of the properties renewal, our Energy Saving Road Water Indoor with technical investments. Map was updated i.e. what are the Efficiency LEED Environmental next steps to reach the new targets. Quality New Energy and Carbon targets With this update Technopolis no longer follows up the targets set for The energy consumption of the like-for-like property portfolio buildings, their emissions, water of 2011 as the portfolio covered consumption and waste are the less than 50% of Technopolis’ Energy and Materials and most significant factors in terms of current property portfolio. the eco-efficiency of Technopolis’ Atmosphere Resources operations, and therefore they Building Ratings and were selected as the key objectives Environmental Labels in the initial phase of sustainability activities. In accordance with its strategic sustainability approach, Techno­ During 2017, we updated our energy, polis uses the LEED (Leadership water and carbon target setting to in Energy and Environmental

14 Design) certification system as a was accepted to the program due tool for monitoring and developing to its long-term commitment to Environmental Certification the environmental performance of sustainability and its numerous EPRA: Cert-Tot buildings. The rating is used to steer existing LEED certifications. both new constructions and the With the Volume Program we can management of existing buildings. further unify our practices and All major organic growth projects carry out the certification process LEED Core & Shell LEED EB: O&M are also certified, as well as all faster and more efficiently. Our Site Rating Site Rating applicable existing buildings. first buildings under the Volume Lõõtsa 5, Tallinn Gold Elektroniikkatie 4, Oulu Gold program are to be certified during We have invested considerably 2018. Pulkovo 2, St. Petersburg Gold Elektroniikkatie 6, Oulu Gold in developing the environmental Ruoholahti 2, Helsinki Gold Elektroniikkatie 8, Oulu Gold performance of our properties By the end of 2017, Technopolis Vantaa 5B (F) Gold Innopoli 2, Espoo Gold through design and construction had 25 LEED certified properties. Vantaa 6 (G) Gold Innopoli 3ABC, Espoo Gold Viestikatu 7BC, Kuopio Gold Kontinkangas, Oulu Gold For us, LEED certification is a way Vilnius Ozas, Delta Gold Lõõtsa 8A, Tallinn Silver (v.4) to communicate our commitment to Yliopistonrinne 2, Tampere Gold Peltola 1, Oulu Gold Yliopistonrinne 3-4, Tampere Gold Peltola 2, Oulu Gold sustainability to our customers, employees, Peltola 3, Oulu Silver investors and industry peers within a On-going projects (On track to achieve) Ruoholahti 1, Helsinki Gold Lõõtsa 12, Tallinn Platinum Vantaa campus Gold framework that is well-known and accepted. Ruoholahti 3, Helsinki Gold Vilnius Ozas, Alfa Gold Vilnius Ozas, Penta Gold Vilnius Ozas, Beta Gold Vantaa (H) Gold Vilnius Ozas, Gama Gold based on LEED building rating In addition, one building on the systems. One of the highlights of Oslo and Espoo campuses has Yliopistonrinne 1, Tampere Gold Total amount of major development 2017 was that we were the first each been awarded the BREEAM projects on track to achieve LEED company in Finland to launch the certificate. This corresponds to certification 100% Total amount (Cert. Tot) of m2 % LEED Volume Program for existing 43% of the entire real estate stock LEED Gold 36% buildings. We were also the first in measured by square meters. Europe and the second worldwide BREEAM New construction LEED Silver 2% to start using the advanced, more The Green Office label awarded by Portal, Oslo Very Good BREEAM 5% stringent model (v4) for Volume WWF Finland has been chosen to Innopoli 3D, Espoo Good Total 43% certifications. improve the eco efficiency of the company’s own offices. It has been The Volume Program enables determined that the Technopolis an efficient environmental concept and services offered to certification of multiple buildings, customer are to be developed in as well as spreads the best accordance with Green Office. sustainability practices across a Technopolis’ own offices in real estate portfolio. Technopolis Finland, Tallinn, Oslo and in

15 Vilnius have achieved a total of building ratings, and carrying out water efficient systems such as low- air volumes, filter choices, CO2 Energy Sources ten Green Office labels granted by post-construction inspections flow fixtures were chosen in order monitoring of multi-user premises WWF Finland. support the right way of utilizing to save water and also to reduce and construction-time purity (Electricity and Heat) eco-efficient systems and life-cycle Environmental Impact of responsibility during the building Real Estate Development use. Technopolis assured its As mentioned above, we aim In 2017 among other efforts, key environmental indicators of 2017, to minimize the environmental energy-efficient building systems impact of new construction and lighting solutions were please read more from the page 42. projects by designing and installed at new projects, for developing the projects in example LED lights, energy accordance with the international efficient HVAC systems and BIM heating energy consumption. To control. Attention is paid to the LEED certification. Maintaining system to monitor and optimize maintain biodiversity, the LEED low emissions of material choices, the building as instructed in energy consumption. In addition, projects conserved green areas and the daylight and thermal and open space whenever possible, comfort of the premises. took storm water management and on-site infiltration into account. We monitor the indoor air quality Renewable Energy 53% The choice of locations aimed to through technical monitoring as Fossil Fuels and Nuclear 47% Breakdown of Energy Usage and avoid protected areas or areas well as mapping out customer’s where endangered species can be experience. The indoor air and Renewable Energy found. climate satisfaction is surveyed 2017 100% of campuses with its quarterly EPRA Elec-Abs MWh % Energy consumption of customer survey. Satisfaction is Indoor Air and Climate Electricity from renewable sources 84,625 40% Technopolis’ construction sites indicated on a scale of 1 to 5. In Satisfaction Electricity from non-renewable sources 26,649 13% has been estimated to total 630 2017, the respondents’ average 5 District heating from renewable sources 25,333 12% MWh. The carbon footprint of score was 3.6, staying on the same District heating from non-renewable sources 59,448 28% Technopolis’ indirect energy level as in previous year. 4 Gas from non-renewable sources 7,234 3% consumption is estimated to total 3 District Cooling 6,223 3% 110 metric tons with regard to Safety and accessibility are ensured On-site Energy production (renewable) 342 0% construction sites. in the design phase of all new 2 Total 209,854 100% Technopolis construction projects. Healthiness, Safety, and Attention is paid among others 1 Accessibility of Buildings to local regulations concerning 0 Technopolis supports the bathrooms and parking spaces for 2015 2016 2017 Own Offices, MWh productivity and comfort of disabled people, wheelchair ramps, customer companies through the and fire and rescue regulations, 2017 2016 2015 health, safety, and accessibility and regular updates of rescue Electricity Consumption 813 1,029 692 of its office campuses. New plans. Normalized Heat Consumption 702 953 566 construction projects have already District Cooling 37 23 19 set purity class and indoor air Energy Energy Intensity (KWh/gross m2) 221 293 296 quality targets in the construction Technopolis’ long-term plans CO emissions (kg/gross sqm) 157 145 148 2 phase, and investments are made support the lifecycle responsibility Water Consumption (m3) 1,265 1,501 1,461 in terms of quality regarding of the properties. We have been

16 Group Coverage rate 99.2% Energy (MWh) Finland Norway Sweden Estonia Lithuania Russia Total 2016 EPRA 2017 2016 2015 2017 2016 2015 2017 2) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 sBPR Energy Total electricity Consumption1) 72,875 78,914 78,494 9,704 10,342 10,775 4,102 1,805 9,491 9,352 8,503 9,860 6,765 6,488 5,242 5,303 4,956 111,274 112,481 109,216 Elec-Abs Common area electricity1) 32,184 34,008 35,016 4,156 4,325 4,512 - - 4,464 4,458 3,793 1,302 960 2,894 3,035 3,165 2,792 45,141 46,916 49,008 Heat Consumption 65,164 75,110 65,035 4,904 5,193 5,099 2,423 958 3,102 2,490 2,421 4,936 4,728 3,843 80,529 88,480 76,399 DH-Abs Normalized Heat Consumption 69,416 81,239 77,383 4,904 5,193 5,099 2,423 958 7,234 7,369 7,377 3,102 2,490 2,421 4,936 4,728 3,843 92,015 101,977 96,123 DH-Abs District Cooling 567 647 591 3,629 3,793 3,895 2,027 1,057 6,223 5,498 4,486 DC-Abs Fuels (MWh) 7,234 7,369 7,377 7,234 7,369 7,377 Fuel-Abs On-site Energy production (renewable) 249 259 35 35 57 6 342 300 Total Energy Consumption 143,107 152,3153) 156,468 18,238 19,328 19,769 8,552 3,821 16,760 16,756 15,880 13,019 9,261 8,909 10,178 10,031 8,800 209,854 211,5123) 209,826 Total Energy Intensity Energy- (kWh/gross m2) 224 2233) 220 171 181 185 223 199 175 176 167 170 183 176 236 233 204 209 2113) 209 Int 0.4% -5.6% 11.9% -0.7% -6.8% 1.5% -0.9% Intensity Change % 2017/2016 -10% Group Target by 2025

Building Energy Consumption 102,416 107,4093) 112,991 12,689 13,312 13,506 4,450 2,016 11,734 11,862 11,170 4,461 3,456 5,315 7,971 7,893 6,636 143,721 145,9473) 161,352 Energy Intensity, Building Energy- Energy (kWh/gross m2) 160 1573) 159 119 125 126 116 105 123 125 118 58 68 105 185 183 154 143 1463) Int 1.9% -4.6% 10.4% -1.8% -14.4% 1.0% -1.7% Intensity Change % 2017/2016 -10% Group Target by 2025 The coverage of Energy indicators and associated GHG disclosure is 99.2% of Technopolis’ gross m2. The share of estimated total consumption is under 1 %. Total energy consumption and energy intensity is calculated with weather corrected (normalized) heat consumption for Finland. The energy intensity (our target) is calculated and presented in two ways: with total electricity consumption and with common area electricity consumption, both intensity indicators include and heating and district cooling for whole building area. The denominator in both of the indicators is gross area. The baseline year for the energy and carbon targets is 2016. 1) The total electricity consumption row includes the consumption in customer spaces. Part of the reported common area electricity is based on estimated consumption (extrapolation) as the common area electricity metering process was underway throughout 2017. Common area electricity from Gårda Campus in Sweden is not tracked due to tenant owned meters. 2) Acquired in 7/2016 3) One atypical divested property was removed from the intensity and total energy calculation of 2016 to make the target baseline comparable.

Energy Like-for-Like (MWh) Group Coverage rate 99,1% Finland Norway Estonia Lithuania Russia Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 EPRA sBPR Energy Like-for-Like Electricity Consumption 64,729 66,219 9,704 10,342 9,491 9,352 6,360 6,765 5,242 5,303 95,526 97,981 Elec-LfL Common area electricity 28,061 28,467 4,156 4,325 4,464 4,458 865 960 3,035 3,165 40,581 41,375 Heat Consumption 56,906 56,005 4,904 5,193 2,435 2,490 4,936 4,728 69,182 68,416 DH-LfL Normalized Heat Consumption 60,684 60,502 4,904 5,193 7,234 7,369 2,435 2,490 4,936 4,728 80,194 80,281 DH-LfL District Cooling 567 647 3,629 3,793 4,196 4,440 DC-LfL Fuels (MWh) 7,234 7369 7,234 7,369 Fuel LfL Total Energy Consumption 125,980 127,368 18,238 19,328 16,725 16,720 8,795 9,255 10,178 10,031 179,916 182,703 Total Energy Intensity (kWh/gross m2) 147 149 171 181 175 175 174 183 236 233 210 213 Energy-Int -1.5 % Change % 2017/16

Building Energy Consumption 89,311 89,615 12,689 13,312 18,933 19,195 3,300 3,450 7,971 7,893 132,205 133,465 Energy Intensity, Building Energy (kWh/gross m2) 104 105 119 125 198 201 65 183 185 183 154 156 Energy-Int -0.9 % Change % 2017/16

17 Carbon Dioxide (tCO2e) Group Coverage Finland Norway Sweden Estonia Lithuania Russia Total rate Scope 1 and 2 EPRA: GHG-Dir-Abs, GHG, Indir-Abs, GHG-Int 2017 2017 2017 2017 2017 2017 2017 2016 2015 99.2% Gas 0 0 0 1,440 0 0 1,440 1,435 - Scope 1 total1) 0 0 0 1,440 0 0 1,440 1,435 - Market based emissions Electricity 0 84 1,370 7,003 0 1,693 10,150 11,940 9,463 District Heating 13,224 212 114 0 837 1,594 15,983 19,987 21,870 District Cooling 14 86 48 0 0 0 148 275 270 Scope 2, total 13,238 383 1,532 7,003 837 3,288 26,281 32,203 31,603 Total 13,238 383 1,532 8,442 837 3,288 27,721 33,638 31,603 2) CO2 emissions (kg/gross sqm) 20 4 40 88 11 76 28 31 31 -11 Change % 2017/16 -30% Group Target by 2025

Location based Scope 2 emissions Electricity 13,190 84 1,370 8,893 1,834 1,693 27,065 District heating & cooling 11,482 153 119 1,440 326 1,594 15,114 Total (Scope 1&2) 24,673 237 1,489 10,332 2,160 3,288 42,178 49,166

CO2 emissions (kg/gross sqm) 38 2 39 108 28 76 42 48

Absolute emissions are calculated based on both, market and location based method. For our target setting (CO2 intensity) we use market based emission factors, our target includes scope 1 and 2 emissions, the baseline of our target setting is 2016. The market based carbon footprint of Technopolis’ direct consumption of purchased electricity and heating energy is based on measured, remotely read and partially manually read energy consumption readings and data provided by local energy

companies on the production methods of the energy they delivered and their CO2 effects, for few exceptions national average CO2 emission factors are used. Please read more about the carbon footprint calculation methods from pages 34-35. 1) Biogenic Scope 1 CO2 emissions were 0 as Technopolis did not combust any biomass. 2) One atypical property was removed from the intensity calculation of 2016 to make the target baseline comparable.

actively developing the energy out different sets of analysis and in the real estate stock. Facility energy saving target of 7,5% by the does not have a restaurant or other efficiency of the existing real reviewing the possibilities for new maintenance partners have end of 2025. We also have a company special premises. With regard to estate stock during the reporting energy investments in our long been involved in energy saving energy efficiency audit document other products and services, we period with active optimization term investment plans etc. We measures, and the environmental in accordance with the Energy aim, in accordance with our Green measures and energy investments. also want to ensure that are targets goals of Technopolis have been Efficiency Directive, supporting Procurement Guide, to purchase During the year a bottom-to –top and actions are well in line with implemented for them as part of the energy efficiency agreement for ICT equipment with a high energy analysis was carried out in order to every day property management the contractual reward structures. commercial premises and audits efficiency class and to take into update our targets, in connection practices. within the property portfolio. account the energy efficiency to this we updated our road map Technopolis is a signatory in an settings of the equipment in use. to reach the planned savings. The We will continue the practice energy efficiency agreement in We seek at least an energy road map includes actions such as to replicate opportunities for Finland for commercial premises certificate level of B for our new Renewable energy is also a priority continuing energy audits, carrying savings observed in the audits and has thereby committed to an construction projects if the building to us, in 2017 we established new

18 Carbon dioxide Like-for-Like (tCO2e) Group Coverage Finland Norway Estonia Lithuania Russia Total rate1) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 EPRA: GHG-LfL, GHG-Int 99.1% Scope 1 (Gas) 0 0 0 0 1,440 1,435 0 0 0 0 1,440 1,435 Electricity 0 84 0 7,003 8,763 0 862 1,693 1,713 8,780 11,337 District Heating 11,676 12,117 212 225 0 0 658 722 1,594 1,527 14,141 14,591 District Cooling 13.5 40.1 86.4 235.2 0.0 0 0.0 0.0 0.0 0.0 100 275 Scope 2, total 11,690 12,157 383 460 7,003 8,763 658 1,584 3,288 3,240 23,021 26,204 Total 11,690 12,157 383 460 8,442 10,198 658 1,584 3,288 3,240 24,461 27,639

CO2 emissions (kg/gross sqm) 21 22 4 4 88 107 13 31 76 75 29 32 Change % -11 2017/16 The Like-for-Like figures are calculated based on market based method. 1) Inside the LfL portfolio the reporting coverage is 99,1%

partnerships to increase the on- our electricity consumption. The consumption of 2016. We are in the its properties by improving decreased by about 2% compared site solar energy. decrease in energy consumption in process of having more sophisticated energy efficiency and using to the previous year. the Like-for-Like portfolio over the analysis in place for the effects of energy produced with renewable Of the 209,854 MWh of energy used same period was 1.5%. our energy optimization measures. energy sources. Energy efficiency Water pressure measurements by Technopolis in 2017 53% was measures carried out in 2017 equal has been implemented in energy from renewable sources. In addition In 2017 it was officially announced Carbon Dioxide Emissions a reduction of approximately 105 audits carried out in the existing to procured energy we have on-site that Technopolis reached its The market based carbon footprint metric tons of CO2 emissions. real estate stock and opportunities electricity production with solar reduction target of 6% in the Finnish of all Technopolis Group’s Calculated by using Motiva’s for saving water were reviewed, panels amounting to 129 MWh. The the energy saving agreement for properties including scope 1 and 2 CO2 factor forcombined heat and and e.g. water efficient systems on-site solar production more than commercial properties over period emissions, was 28 kg/gross square power (176 kg CO2/MWh). such as low-flow fixtures have doubled compared to last year. 2008-2016. Technopolis has also meters and emissions totalled been installed. Investments joined the new energy efficiency 27,721 metric tons (33,638t). For the time being, Technopolis were made relating to the low The total energy intensity of the agreement period in Finland, which Compared to the previous year, does not report other greenhouse water consumption also in new Group’s properties was 209 kWh/ is scheduled over 2017–2025. the carbon footprint of the energy gas emissions besides carbon construction projects, and it is gross square meters, decreasing consumption of Technopolis’ dioxide or their potential climate discussed in more detail under by approximately 1% compared In accordance with our new energy properties per square meter warming effect. Environmental Impact of Real to 2016. The change in energy target setting we follow up the decreased by 11%. The change Estate Development. intensity over the period is due to savings reached through energy Water was due to e.g. increased share of Waste investments, operational energy investments and optimization green electricity procured in Baltic The water intensity of all savings measures, as well as throughout the group, in 2017 countries. Technopolis Group’s properties Technopolis continued having changes in occupancy rates and the calculated savings amounted was 5,397 l/FTE/year and the total regular waste management due to portfolio changes. Also the approximately to 600 MWh. The Technopolis aims to reduce consumption 287,635 m3/year. The monitoring and development summer was cooler in 2017 than target is to reach savings of 7.5% the carbon footprint of the water consumption per user of meetings in 2017. The meetings in the previous year, this decreased by 2025 compared to baseline direct energy consumption of all Technopolis Group buildings were arranged quarterly, and they

19 Water Consumption

Finland Norway Sweden Estonia Lithuania Russia Total Group Coverage rate EPRA: Water-abs, Water-Int 99.2% Water Consumption (m3) 2015 142,811 24,665 23,325 25,078 26,769 242,648 2016 175,572 24,001 8,913 26,791 24,409 25,773 285,578

2017 161,698 22,924 14,950 26,880 31,949 29,235 287,635 Water Intesity (l/FTE/day) 12.4 20.9 24.1 13.4 17.4 32.5 14.8 Water Intensity (l/FTE/year) 4,539 7,641 8,794 4,902 6,348 11,879 5,397 Group Target Level 5,000 (l/FTE/year) Difference, The share of estimated consumption is under 2.5% 8% Current/Target

Water Consumption Like-for-Like Group Coverage Finland Norway Estonia Lithuania Russia Total rate 1) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 EPRA: Water-Lfl, Water-Int 99.1% Water Consumption (m3) 149,678 145,174 22,924 24,001 26,880 26,791 23,909 24,409 29,235 25,773 252,625 246,147 Water Intensity (l/FTE/year) 4,923 5,196 7,641 8,000 4,902 4,489 6,827 6,396 11,879 10,426 5,632 5,699

1) Inside the LfL portfolio the reporting coverage is 99,1%

identified development measures Waste management was actively In new and existing buildings Recycling rate, including the management data was collected to prevent the generation of waste developed during the reporting applying for LEED certifications, incineration of waste into energy, by disposal method and waste at our campuses and to promote year. A detailed analysis on how attention was paid to the of properties was 67% in 2017, fraction in all operating countries sorting and reuse. The results of to optimize especially waste accessibility and size of the waste the number excludes construction in 2017. The disposal methods of the waste indicator follow-up were transportation was carried out in facilities, the sufficiency of hauling sites. The recycling rate decreased waste generated in Technopolis used to support decision-making Finland, in cooperation with our intervals, sorting guidelines compared to last year mainly due locations vary by region according at the meetings. The Green Office waste management partner. This and practices, in addition to the to divestments made in Finland to the local waste management system used by our own offices and has resulted in more efficient and collected waste fractions. In the (high recycling rate, compared partner’s operations. some of the customers also provides environmentally friendly hauling building rating projects of existing to Baltic Rim portfolio) and due guidelines for preventing waste and intervals. properties, waste management to increased landfilled waste in Waste amounts by disposal promoting the sorting of waste. was monitored and also audited. Saint Petersburg campus. Waste method are presented in the graph

20 on the right. Here, recycled waste Waste Amount by Disposal Method (t) also includes reused waste and recovery of materials. In addition Group to energy waste, incinerated Finland Norway Sweden Estonia Lithuania Russia Total Coverage rate waste includes mixed waste 2017 2017 2017 2017 2017 2017 2017 2016 2015 suitable for mass burning and EPRA: Waste-Abs 98.1% other incinerated waste, such as waste wood. Specially treated Reused, recycled and recovered 540 34 5 126 67 9 780 956 739 waste includes hazardous and Composted 356 31 0 21 0 0 408 437 480 toxic waste. Compostable waste Specially treated 1) 3 13 0 0 0 0 15 13 10 includes bio waste. The amounts Incinerated with energy recovery 931 143 22 186 0 0 1,282 1,366 630 of waste by waste fraction are Landfilled 0 0 0 433 542 213 1,188 1,041 1,227 based on data for the properties’ waste amounts provided by waste Total 1,829 220 27 766 609 221 3,673 3,813 3,086 management partners. Recycling Rate % 100% 94% 100% 44% 11% 4% 67% 72% 60% Waste Amount per Person (kg/FTE) 51 73 16 140 121 90 69 75 65 The customers are mainly The share of estimated consumption is under 1%. responsible for the special 1) Hazardous waste is reported under the Specially Treated category (the row equals the amount of hazardous waste). The rest of the categories are non-hazardous waste. waste fractions caused by their operations, such as WEEE and toxic waste, even though Waste by Disposal Method Technopolis does arrange Waste Amount by Disposal Method, Like-for-Like annual common WEEE and hazardous waste collections at EPRA: Waste-LfL Group Lf-L 2017 Group L-f-L 2016 the campuses. Technopolis has t % t % no data available for the amounts Reused, recycled and recovered 696 20% 801 24% of WEEE and hazardous waste Composted 347 10% 327 10% produced by customers. The 1) amount of hazardous waste Specially treated 15 0% 13 0% in 2017 in Technopolis Group Incinerated with energy recovery 1,174 34% 1,165 35% was low, consisting mainly of Landfilled 1,188 35% 1,041 31% batteries. Also, waste from leased Total 3,420 100% 3,347 100% IT hardware used by Technopolis and equipment related to printing services is not included in the waste amounts because the leasing Reused, recycled and recovered 32% partner takes care of their possible reuse and end of life cycle. Composted 21% Incinerated 35% Paper Consumption Specially treated 0.4% As part of Technopolis’ Green Landfilled 11% Office activities, information on the amount of paper consumed

21 was collected at the labeled CO2 Emissions for Travel (Scope 3) offices in 2017. Our own offices use paper themselves, as well as sell it to customers. All paper Share of Business Travel CO2 Emissions, kg procured by Technopolis is PEFC, FSC or Blue Angel certified. In 2017 2016 2015 2017 2016 2015 addition, the our own offices have Flights 88% 87% 86% 192,138 165,768 164,631 duplex black & white printing as the default setting of printers, Train 6% 6% 7% 5,085 5,778 3,378 and electronic storage and data Car 6% 6% 7% 12,293 12,522 12,592 sharing is preferred to printing. Total 100% 100% 100% 209,516 184,626 180,932 Card readers that facilitate secure printing installed in photocopiers at the Finnish campuses have made paper consumption monitoring easier. During the reporting year Technopolis’ own Finnish offices In terms of the environmental We aim to reduce the carbon used 2,670 kg of paper, which is on impact of traveling, CO emissions dioxide emissions of travel, for the same level as in the previous 2 were decided to be monitored due example by offering our employees year. to the availability of related data, and customers an opportunity to Travel general interest, and as they are use videoconferencing services significant in contributing to the instead of business trips. We also Data on travel was collected from greenhouse effect. The assessment have specified a remote work the travel expense report system of CO2 emissions due to travel policy and employees’ computers of the Finnish operations and used the CO2 factors by method are equipped with tools for remote travel tickets obtained locally by of travel for 2011 of LIPASTO, communications. In addition, other business units, and travel the calculation method of Technopolis car policy prohibits tickets obtained through Finnish exhaust gas emissions and energy cars with CO2 emissions of more travel agencies for trips purchased consumption of traffic in Finland than 140 g/km in terms of limited in Finland. The data includes realized by VTT. Technopolis does and unlimited company car trips made by plane, train and not currently collect data for goods benefits. passenger car. The travel data does transport kilometers and the effect not include business travel made of their emissions, as the transport by passenger car by other than the of goods is not as essential in Finnish units. the Real Estate investment industry as the effects of travel The total number of kilometers by personnel. In procurements, traveled amounted to 1,486,953 however, the aim is to minimize km during the reporting year, the environmental impact of the increasing by 9% from the previous transport of goods by making year. The number of kilometers appropriate, planned purchases traveled per person increased by in large batches according to the 21% from the previous year. Green Procurement Guide.

22 Climate Change in the Focus From Carbon Footprint Share of Business Travel CO Emissions, kg 2 to Carbon Handprint 2017 2016 2015 2017 2016 2015

Flights 88% 87% 86% 192,138 165,768 164,631 Technopolis aims to develop its service offering to be more Train 6% 6% 7% 5,085 5,778 3,378 environmentally friendly through green procurement and to Car 6% 6% 7% 12,293 12,522 12,592 provide customers with added value in their sustainability projects. Total 100% 100% 100% 209,516 184,626 180,932 Technopolis’ videoconferencing services and coworking spaces, for example, save customers and visitors time and money and reduce the environmental impact of travel. Energy efficient lighting and carbon dioxide-based ventilation control are preferred in meeting rooms. Environmentally-labelled products are used for cleaning whenever possible, and a waterless cleaning option is available. On our Finnish campuses and on our Vilnius campus we offer electricity from 100% renewable energy sources.

We offer charging stations for electric vehicles to employees and customers at Finnish, Lithuanian, Norwegian and Estonian campuses, and are considering increasing the amount of charging stations at our campuses in the future. Moreover, the aim is to locate the new construction projects of Technopolis close to good traffic connections and services. The users of the sites are encouraged to use low-emission vehicles or bicycles through the provision of signposted parking places or charging stations, and bicycle racks. The Pulkovo campus in Russia also has a shuttle bus between the office campus and city center for employees.

We also walk the talk ourselves. We encourage our own personnel to cycle to work and to participate in fun campaigns such as Kilometrikisa (nation-wide cycling campaign in Finland). We also organized the annual Tour de Technopolis cycling event in 2017 which attracted over hundred Technopolis customers, partners and other cycling enthusiasts to participate.

Mapping of risks and opportunities related to climate change can be found on our website.

23 Skills & Integrity

Motivated and Competent People

Resourcing for Growth Developing the Top-Performing Team We acknowledge that the key to our success is having the right talent We continued developing the skills in the right positions. During the and knowledge of our employees, year, a thorough strategy review especially in the areas of sales process was carried out, and we and customer service. These two were able to hire new people for topics were integrated when all key positions as we resourced for employees working in customer this strategic growth. In 2018, service positions attended a we will continue to seek the best training course in sales-minded people to support this path. When customer service during autumn hiring new employees, we pay 2017. In addition to that, several extra attention to finding people other common classroom training who truly share our values and and coaching sessions took are very committed to working place during the year, and many towards our strategic goals. Most employees also had the possibility open positions are announced on to take part in professional training our intranet, giving all current courses and events outside of the employees the possibility to apply. company. The e-learning portal

24 was taken into full use during companies attending to the Gender Distribution Employees by Country 2017, and now includes several survey. Based on the survey, our training courses in four different employees have a lot of faith in learning paths. the future of the company, and they consider that collaboration Employee Satisfaction between units works well and that in Focus the products and services that we offer are of high quality. On the 224 Satisfied and motivated employees development side, employees were are at the core of our business, critical of increased bureaucracy. employees and therefore we measure the job After the survey, a comprehensive satisfaction and commitment of results review and discussion was our personnel with an extensive organized in each business unit

“Based on the survey, our employees have a Women, 75% Men, 25% lot of faith in the future of the company, and FI they consider that collaboration between 158 units works well. ” Average Age NO RU 12 SE 19 employee engagement survey and function together with HR, in 2 every two years. In the most recent order to discuss the development personnel survey conducted in areas and to make action plans. EE February 2017, our People Power Additional conversations related 39 Index was 71.9. This placed to bureaucracy have taken place 21 Technopolis higher than average in with each business unit leader. years the comparison group and gave us Several actions have been taken LV an overall assessment of AA. Based during 2017 at both business on the survey results, Technopolis unit and company level, and the DK was recognized as one of the most development work will continue LT inspiring workplaces in Finland by further in 2018. Under 30 years, 33 12 Corporate Spirit in the beginning 30–50 years, 157 of 2018. The acknowledgement is In addition to the employee given only to the best performing engagement survey, we also Over 50 years,34

25 Personnel Feeling Scale A personnel fund was established Technopolis Wellbeing Tour at the end of December 2016, and walking campaign was launched 3.5 in February 2017 the employees in in October, in co-operation with Finland were able to transfer all or the new occupational healthcare part of their performance bonus provider. All employees took part in 4: Agree 3.4 to the personnel fund for the first this team competition, and with the time. The personnel fund invests help of activity trackers, virtually 3.3

3.2 “In order to execute the strategic growth plans, we are paying specific attention to 3.1 the well-being of employees to have a highly

3.0 motivated team in place.”

2.9 1: Disagree the majority of the transferred walked a route that passed through Average 2016 3/2017 6/2017 9/2017 10/2017 Average 2017 bonuses in Technopolis shares. all Technopolis business units. Response rate 78% 83% 77% 86% 80% 81% Well-being at Work Work at Technopolis consists mainly of office and reception Q1: I enjoy my work Q3: My work tasks and responsibilities are well defined In order to execute the strategic service work, with no major growth plans, we are paying Q2: My workload is suitable Q4: I feel that I´m being treated fairly physical stress or specific risk of specific attention to the well- physical occupational accidents. being of employees, to have a fully We offer all our employees functioning and highly motivated extensive occupational healthcare team in place. services, including specialist-level monitor the job satisfaction Performance Management and common values. Besides the During 2017, we strengthened consultation. We also offer support of employees in the shorter and Remuneration annual appraisal discussions, all co-operation with occupational for dental care, and support for term with a pulse survey called supervisors are encouraged to have healthcare in Finland by reducing sports and cultural activities to the “Personnel Feeling Scale.” All Technopolis employees have a continuous discussions with their the number of healthcare all regular employees and those This survey, consisting of four performance appraisal discussion team members throughout the year. providers to two and started co- employed for a longer fixed term or questions, is sent to all employees with their supervisors in January– operation with a new occupational temporarily as full-time employees. once a quarter, and it provides a February or at the beginning of their All Technopolis employees are healthcare provider that specializes quick picture of the current work employment. Setting the objectives included in an annual bonus system in preventive healthcare. Our The merged occupational health situation and job satisfaction of the for the current year and reviewing based on the company’s results and sick leave percentages are low on and safety committee and the entire organization and each unit. past years performance are integral personal performance. In addition average, and our goal is to keep advisory board in charge of It gives the units’ supervisors the parts of the appraisal discussion, to financial indicators, other key them low in the future, as well. statutory employer–employee possibility to react quickly to any but other topics are also covered, performance indicators include consultations is elected from among notable changes in the results with such as responsibilities, career and internal and external customer To increase the everyday activity the personnel for two years at a the support of HR. personal development, well-being satisfaction measurements. level of our employees, the first time. With regard to occupational

26 health and safety, the committee Personnel Key Figures reviews plans, developments Employee turnover during the year and measures related to working 2017 2016 2015 2017 2016 2015 conditions, occupational safety, Total number of employees 224 242 247 New contracts including short-time and occupational health care Active 205 223 227 substitutions, total 32 37 55 services, such as the annually On long leave 19 19 20 New employees of the total personnel, % 14 15 23 ratified occupational health and Employees left Technopolis, safety action plan. With regard Employees by country including short-time substitutions, total 46 2) 34 2) 35 1) 2) 2) to statutory employer–employee 2017 2016 2015 Turnover rate, % 20 14 15 consultations, the committee Finland 158 178 186 1) Turnover rate, % = Employees left Technopolis / Employees on average x 100 reviews matters referred to in Norway 12 12 14 2) Does not include the employees transferring to new employer due to divestiture. the Act on Cooperation within Sweden 2 1 - Undertakings pertaining to all Estonia 21 23 21 Technopolis employees. Such Lithuania 12 9 6 Training days matters include the principles and 2017 2016 2015 Russia 19 19 20 practices followed in recruitment, Employees who took part in training, % 77 78 80 the equality plan, and the annually Training days during the year 625 592 655 prepared personnel plan and Employment type Training days per employee 2.7 2.4 2.7 training objectives. 2017 2016 2015 Training days by employment group, % Permanent employees/ Senior management 3) 17 18 16 The merged occupational health Fixed-term employees, % 93/7 93/7 91/9 Middle management 38 29 39 and safety committee and the Female/male percentage of fix-term work 69/31 64/35 - Specialists 13 29 15 advisory board in charge of Full-time employees/Part-time employees, % 96/4 96/4 96/4 Other employees 32 24 30 statutory employer–employee Female/male percentage of part-time work 78/22 64/36 100/0 Female/male percentage of training days 71/29 74/26 78/22 consultations operates in Finland. 3) Senior management includes Group Management Team Its operations cover about 70% of Sex distribution the personnel, in other countries 2017 2016 Sick days and work-related accidents we have similar functions in place, Female/male percentage 75/25 74/26 and as a whole these functions GMT 20/80 20/80 2017 2016 2015 cover over 90% of the personnel. Senior management 27/73 31/69 The absentee rate, % 1.9 1.8 - The aim has been to take diversified Middle management 61/39 56/44 Finland 1.5 1.7 2.0 representation into account in the Specialists 87/13 86/14 Norway 5.3 3.1 4.7 makeup of these panels. Other employees 93/7 93/7 Sweden 1.4 0 - Estonia 1 0.7 0.9 Years at Technopolis, Percentage of personnel Lithuania 2.2 0.6 0.5 Russia 3.8 3.2 2.8 2017 2016 Accidents during actual working hours Less than 2 years 25 27 (number) 6 7 2 2 years - less than 5 years 34 28 Fatalities 0 0 0 5 years - less than 15 years 37 40 Supply Chain (Contractors) Fatalities on Construction Sites 0 - - At least 15 years 4 5 Accidents on Construction Sites 4) 1 - - Personnel figures presented are 31 December figures 4) That resulted in at least one day’s absence

27 Skills & Integrity

Integrity

Guided by Our Strong Values

Drive Service Integrity • We know exactly what • We’re passionate about • Our conduct is our targets are. great service. unimpeachable and • We empower our • We’re hands-on with our sustainable. people to achieve them. customers. • We play fair and by the • We pursue our targets • We seek to keep rules. relentlessly. promises and exceed • We judge and reward expectations. based on merit.

Please read more about our Corporate Governance practices in the Corporate Governance Statement

Values and ethics provide the Code of Conduct Lays is expected to adopt the ethical are prepared and updated jointly Code of Conduct Training foundation for Technopolis’ the Foundation for Our principles presented in the Code by the CEO and the Legal and responsible operations. By Operations of Conduct and to commit to Sustainability functions. The Every employee reviews the Code operating ethically, we ensure risk- them. With the Supplier Code of company’s Board of Directors of Conduct for employees and the free value creation for stakeholders Technopolis’ Code of Conduct Conduct, Technopolis aims to reviews and approves the strategic reporting channels available in case in the long term. Drive, service forms the basis of the sustainability ensure that its suppliers and other sustainability approach and the of breaches, either as part of the and integrity are our three strong of the company’s business partners comply with the Code Code of Conduct. The Code of induction process or in connection values that guide our operations. operations, environmental affairs of Conduct and the same quality Conduct is available in full to all with the annual performance They are described in more detail and employee and stakeholder requirements as Technopolis. employees in electronic form. review. The Code of Conduct in the figure above. relations. The Code of Conduct Summaries of them are also e-learning program is used to help is followed by all Technopolis The strategic sustainability available on our website. employees familiarize themselves functions, and each employee approach and Code of Conduct with the Code. The tool is designed

28 to make the training as practical as Current issues in 2017 – possible and close to employees’ everyday lives. The target for New EU General 2017 was to have all employees to Data Protection Regulation undergo the e-training. By the end of 2017, 95% of the employees had undergone the training. The new EU General Data Protection Regulation was adopted by a decision of the European Parliament Reporting of Breaches and the European Council in April 2016, and the new We have appointed a Compliance provisions will apply from May 2018. Officer to oversee compliance of the company’s operations with the At Technopolis, preparation for the new regulation has Code of Conduct. Technopolis’ started well in advance. We have started to update compliance organization is also our data management, personal data processing responsible for ensuring that the practices and documentation of our processes in channels provided by the company order to ensure that the processing of personal data for asking for advice confidentially in Technopolis takes place transparently, diligently and and reporting any breaches are available. Observed breaches of securely, as required by the Regulation. the Code of Conduct are corrected without delay, and disciplinary Technopolis’ customer and employee relationships action is taken. are grounded on honesty, integrity and trust. It is important for us to take into account and respect data Reports can be filed anonymously, protection and privacy. We want to ensure with our and breaches are reviewed good data management practices that we are able to confidentially. From the beginning provide our customers with high-quality services. of 2017, there has been a web- based whistleblowing channel in place, and all reports are collected by a third party, external to the company. This increases the anonymity and reliability of the system. The Whistleblowing team reviews employees’ reports of observed breaches and takes necessary actions. The breaches are reported to the Audit Committee as well as to the Board of Directors. During the reporting period, no questions or reports of breaches were submitted via the reporting channels.

29 Activity in communities

From employee: every employee to use one work day a Employees could either develop their year for voluntary work. During the year, day-to-day skills in a new environment to “It’s great to be able to Technopolis employees competed in a spirit give out their expertise and develop their devote one work day to of fun to see who would carry out the best job-related skills, or they could expose community action. We want to operate themselves to new challenges that would voluntary work, it really responsibly in our community and to work allow them to break out of their comfort actively in order to help communities to zones and develop completely new skills. makes me proud of my grow and prosper. One way to do this is to employer.” take part in voluntary work and be involved Our target is to increase the share of in the local community through voluntary participating employees. programs, with the aim of supporting local For few years, Technopolis has had charity organizations and groups, and in place a voluntary work program to promoting and increasing the visibility of support charity, making it possible for Technopolis in our community.

30 Anti-Discrimination Compliance with Laws The Supplier Code of Conduct Supplier Audit and in Finland and Estonia was 100% is of paramount importance to PEFC-, FSC- or Blue Angel- Technopolis promotes equal and Regulations Green Purchases Technopolis when commencing or certified, and renovations and treatment in all fields of work, and Technopolis complies with good The major procurement contracts continuing business relationships. modernizations carried out in has zero tolerance of harassment corporate governance, laws and made by Technopolis with Technopolis aims, within the scope the properties were required to or discrimination of any kind. other regulations pertaining to suppliers during the reporting of its influence, to ensure that be according to environmental Once every two years, we carry its business or the company’s period included the Supplier Code its suppliers and other partners objectives. In addition, we updated out a group-wide equality survey, operations as a listed company. of Conduct. During the reporting comply with the Supplier Code the CO emission limit to be 140 g/ asking employees for their No fines or other penalties have period, Technopolis did not 2 of Conduct and the same quality km for company cars in all of our experiences of the fulfilment been imposed on Technopolis separately monitor the assessed requirements as Technopolis, business units. of equality at Technopolis with for non-compliance with laws suppliers’ percentage share of as well as laws and regulations regard to training opportunities, and regulations with regard to total supplier transactions, or the in force. So far, partners have career progress, and work–life business operations, marketing, payments made to them. not been provided with separate balance, among other things. The provisions, use of products and training on compliance with the survey was last carried out in 2016, services in marketing, or breach Technopolis’ Green Procurement Supplier Code of Conduct. with a response rate of 85%. of environmental legislation and Guide is used in majority of its locations. The guide includes regulations. Technopolis has not The Supplier Code of Conduct environmentally friendly procure­ Anti-Corruption and been part of legal proceedings is attached to cooperation ment targets and supports the Election Campaigns related to restriction of competition agreements whose annual total Green Office activities of the and misuse of monopolistic value exceeds EUR 50,000, and The Code of Conduct specifies that offices. These include using ICT Technopolis and its employees equipment with Energy Star labels are not allowed to pay, offer to or similar markings, requiring data pay, or receive bribes or illegal “The Supplier Code of Conduct is of centers to have environmental payments. Technopolis and its plans, and increasing the employees also do not offer any paramount importance to Technopolis utilization of waste to a minimum other undue personal benefits when commencing or continuing business of 60%. Technopolis requires its in order to promote or maintain cleaning, facility maintenance and the company’s business or relationships. “ restaurant partners to have quality otherwise aim to influence the or environmental plans and to use objective decision-making of the environmentally friendly products authorities, partners, or customers. and methods where possible. In position, and therefore no related it has been incorporated into Technopolis employees may not addition to the Green Procurement actions have been taken, either. supplier evaluation. pursue personal gain from their Guide, all the LEED EB building relationship with the company’s Procurement rating projects at existing buildings customers or partners. Technopolis does not accept the prepared site-specific green Technopolis’ suppliers are use of child or forced labor in its cleaning, waste management, and In accordance with its Code of expected to review the Supplier own or its partners’ operations. As purchase plans during 2017. Conduct, Technopolis does not Code of Conduct and reporting Technopolis operates in the real take part in sponsoring political procedures to the extent presented estate business, the risks of child and During the reporting year, parties or financing election on the website and as attachments forced labor are considered minor, environmental friendliness campaigns. in agreements, and to comply with and no specific preventive measures was emphasized in tendering them as part of the cooperation, have been taken in this regard. So for cleaning services. All paper No cases of bribery requiring action both in terms of ethical choices far, impacts on society have not been procured for use in Technopolis’ were observed or reported in 2017. and environmental friendliness. assessed when choosing suppliers. own offices and sales to customers

31 Financial Impacts in Value Chain

Financial impact between on its holdings. In addition, the Money flows between Technopolis and different stakeholder groups, Technopolis and stakeholders are company pays excise duties related presented in the adjacent figure to consumed electricity, and the million euros with the help of cash flows. company also carries part of the value added tax of services and Stakeholder Money flow 2017 2016 Public Authorities & acquisitions as an expense. In 2017, Financiers Paid interests and other payments 16.8 17.0 Tax Footprint the income taxes generated from Technopolis’ business operations Plc’s stockholders Shared dividends 18.8 17.8 Technopolis has received subsidies totaled EUR 4.5 million. The Customers Corporation’s net sales 179.7 172.1 for energy efficiency investments difference between rendered and a total of EUR 16,000 from the deducted value added tax was EUR Cooperation partners 67.9 64.5 Finnish government. 14.7 million. Personnel Salaries and rewards 12.1 12.6 Technopolis’ business operations Technopolis is a significant Public authorities Tax footprint 25.3 22.9 generate tax revenues in the form employer in its field of business. Media, Marketing and Advertising 0.7 0.6 of diverse taxes and tax-like fees. The company pays contributions Regarding Technopolis’ business related to pension and social Subsidies for energy efficiency investments 0.05 0.1 operations in Finland, the company security and remits taxes withheld pays income tax on the taxable in advance from salaries. In 2017 profit and property tax based Technopolis rendered a total of

Total Number of Partners 2017 Tax Footprint Remitted Taxes Taxes Borne

Finland, 737 Value added tax, Personnel-related tax-like payments 0.5 M€ remitted, Total The Baltic Rim, 500 EUR 14.7 million Income tax 4.5 M€ Scandinavia, 248 Taxes witheld Deferred taxes 9.3 M€ 1,485 from salaries, Property tax 8.1 M€ EUR 3.3 million Insurance taxes 0.1 M€ Energy taxes 2.8 M€

32 EUR 3.3 million of withholding approximately 1,600 customers investments EUR 8.5 (19.0) million waste management, security, ICT maintenance, and restaurant taxes from the salaries, fees and from several industries, and 50,000 was related to modernizations and photocopy solutions, and travel services operate in labor-intensive bonuses it paid. people work in Technopolis’ and other investments, EUR 5.8 services. Reoccurring services and industries. spaces. The customer base is (53.0) million to the acquisition services procured according to Technopolis result calculated in comprised of companies and of properties and EUR 61.7 (46.3) maintenance plans include diverse Technopolis purchases products accordance with the IFRS differs organizations, many of which are million was allocated to Organic periodic and technical equipment from its suppliers both for the level from the combined taxable profit oriented towards international growth projects. maintenance services and audits. of service space facilities and to be of the Group companies. Thus, growth. Technopolis’ customer Technopolis also outsources sold to customers as necessary. This there is a significant difference base is diversified in terms of Technopolis utilizes many supply services related to moving, printing includes e.g. furniture and other office between the profit pursuant to geography and sectors. chains in its operations. The of brochures and publications, supplies. The partners providing the IFRS consolidated financial supply chain partners are mainly leasing of space, and diverse services to Technopolis mainly obtain statements and taxable profit. The Partners selected according to country, specialist services as necessary. the products and raw materials impacts of the differences between The company’s business expenses but the aim is to internationally required for their operations via the tax legislation and IFRS are totaled EUR 67.9 (64.5) million. utilize partners familiar with the In addition, there are several their own suppliers or manufacture taken into account in Technopolis’ Space related expenses were EUR Technopolis concept. A significant restaurant operators at them in-house. The majority of deferred taxes. 39.4 (39.5) million. Other business share of Technopolis’ partners Technopolis’ campuses, offering Technopolis’ subcontractors are expenses were EUR 28.5 (25.0) operate in Finland, where most of daily restaurant, café and building contractors, resellers, and Personnel-related tax-like payments 0.5 M€ Supply Chain million. Technopolis business units the campuses are also located. The catering services to Technopolis, consultants. Income tax 4.5 M€ Customers initiate a tendering process for total number of partners was 1,485 its customers, and visitors. Technopolis seeks a balanced, property development projects in 2017, of which 737 operated in Technopolis also has project-based Deferred taxes 9.3 M€ knowledge-intensive customer on a local basis according to the Finland, 500 in the Baltic Rim, and design, developer, subcontractor, Property tax 8.1 M€ base for its campuses in order goals set for the project under the 248 in Scandinavia . and project management partners to facilitate interaction between supervision of the Group’s Real in connection with construction Insurance taxes 0.1 M€ customers and mitigate the Estate functions. Technopolis’ Technopolis has outsourced regular projects. Among Technopolis’ Energy taxes 2.8 M€ customer and industry risk. overall investments totaled EUR daily or weekly services such as subcontractors, the partners Technopolis has a total of 76.1 (118.3) million. Of these cleaning, facility maintenance, involved in cleaning, facility

33 Reporting and Accounting Policies and Limitations

Reporting Principles and published during the first quarter on the measurement units of for international units is based on The energy disclosure includes Limitations of 2019. the disclosures and description actual, metered consumption and consumption in all of the areas of of consumption intensity. The has not been normalized. the properties, and therefore the This is Technopolis’ seventh In addition to this Report, reporting of environmental total area (gross sqm) of each annual Sustainability Report. The Technopolis reports environmental responsibility disclosures includes In addition to customer spaces, property has been used in calculating report aims to extensively describe disclosures alongside its IFRS and all of the investment properties consumption takes place in the total energy consumption and the company’s sustainability in its EPRA financial information four owned by Technopolis except for common and technical areas carbon dioxide emission intensity. evolving business environment. times a year. the few cold leased premises. Co- of Technopolis properties. When information of energy and The report applies GRI Standards owned properties are included in Technopolis reports both, its total carbon dioxide emission figures and Construction and Real Estate Previously reported environmental energy and water consumption energy use and its building energy relate to Technopolis’ own office Sector Supplement (CRESS) information has been, to a minor and CO2 emission based on energy use. Total Energy use is surveyed space, they are calculated from the recommendations for the content extent, specified including few consumption data and waste data. in order to obtain a comprehensive total consumption or emissions of sustainability reporting and manually read consumption Share of ownership has not been view of the ecological footprint, of the property on the basis of the reporting principles. The coverage figures. Also, the definition of taken into account. The Gårda the consumption includes the ratio between gross area used by of reporting with regard to the the Like for Like portfolio used campus, acquired in July 2016, consumption in customer spaces the company’s own office and the GRI Standards is presented at the in environmental reporting has is included in the environmental and technical and common gross area of the property. The end of the reporting as the GRI been changed to correspond to data from July 2016 on. The areas. In most of the properties location and gross area of some Content Index table on pages the definition used in financial environmental data of Jyväskylä Technopolis procures the of the company’s own offices have 38-41. Technopolis’ Sustainability reporting and hence the Like for campus, divested in November electricity for customer areas. In changed slightly during the last Report for 2017 complies with Like portfolio has been changed. 2017, is included in the data this report Technopolis reports for two years, which may influence the the GRI Standards “Core” level. from the period 1–11/2017. The the first time also building energy consumption figures for energy, The report also applies the Figures instructed by the Finnish denominators used to calculate use, which excludes the customer water and CO2 emissions. EPRA’s most recent, third edition, Meteorological Institute for intensity figures have been electricity but in addition to Sustainability Best Practice heating energy need, in use adjusted accordingly. common and technical area In 2016, the reporting of CO2 Recommendations for reporting. from June 1, 2013 for the climate electricity includes the district. emissions was updated to be in Selected environmental disclosures comparison period of 1981– With regard to energy, the heating and cooling as well as line with the update of the GHG in the Sustainability Report for 2010, and normalization factors disclosures are comprised of gas used in all of the areas of the protocol Scope 2 guidance and 2017 have been externally verified, for heating energy in 2013 have Technopolis’ on-site produced and properties. As the common area hence from 2016 on we report more information on page 42. been used for normalized heat purchased electricity, heat, and electricity metering process is still both market and location based consumption. cooling. With regard to the Finnish on-going, a share of the reported emissions. Also the emission The company’s financial period properties, electricity is purchased common area electricity is based factors used were updated due to is the calendar year. The report Calculation Principles and centrally (except Kuopio) and on estimated consumption. these changes 2016 is not entirely heating from local heat utilities. comparable with earlier years. The is published annually, and the Limitations information presented therein In Norway, Estonia, Russia, and The carbon dioxide disclosures data of years 2015 and 2014 was correspond with the financial The reporting on environmental Lithuania, electricity and heat are scope 1 and 2 are based on the not retrospectively corrected. period, January 1 – December responsibility complies with supplied by local companies, and total energy consumption of all the 31. The next GRI-compliant the most recent (the third the Estonian properties also use spaces. For the Market based emission responsibility report will be edition) guidelines from EPRA natural gas. Heat consumption calculation, the CO2 emission

34 Reporting and Accounting Policies and Limitations

calculations are based on the could be based on data provided users have been estimated based for like comparison is made for the Reporting Organizations and most recent data provided by by local energy companies on the on the number of access cards. The portfolio that has been consistently Frameworks local energy companies on the production methods of the energy disclosures describing Technopolis’ in operation, during the most Global Reporting Initiative (GRI): production methods of the they delivered and their CO effects own amount of waste and water recent two full reporting years. 2 An organization that aims to make energy they delivered and their since all power was purchased from consumption have been calculated Corporate Social Responsibility CO effects. With the following the same supplier, the location from these figures on the basis The consumption figures are 2 Reporting a standardized part exceptions, for Pulkovo Campus based CO2 emissions of heating of the ratio between the number measured, remotely or manually of the operations of businesses, in St.Petersburg and the Fornebu were based on IEA 2017 factors. of Technopolis employees and read, figures reported by the in-house similar to the disclosure financial campus in Oslo (for electricity) number of all property users. Facility Manager team, and partners. statements. CO2 emission factors of the With regard to indirect carbon Share of estimated consumption IEA, 2017 (International Energy dioxide emissions, emissions With regard to environmental is very low, some manually read Construction and Real Estate Agency) were used and for the caused by business travel by disclosures, Technopolis reports meters with missing periods have Sector Supplement (CRESS): A gas used by in Ülemiste campus Technopolis employees have been both the consumption of all been completed using known reporting guideline published by in Tallinn, the Finnish emission reported (EPRA Scope 3) for all properties, and, for the sake of consumption from other periods. the GRI, aimed particularly at factor for natural gas obtained units, at the moment Technopolis comparison, also figures for the businesses in the construction and from Statistics Finland was used. does not report other scope 3 like-for-like properties. The reporting covers all real estate sector. emissions. Technopolis’ operations in all For the Location based emission With regard to information for countries, and there are no European Public Real Estate calculation the CO emission For all CO emission calculations, comparable properties, i.e. like- specific grounds for limiting the 2 2 Association (EPRA): An association calculations are based on the the source for the global warming for like properties: In 2017 the extent of the report. The financial that oversees the interests of following factors. For Finland potentials used is the IPCC Fifth definition of the Like for Like disclosures include all Technopolis European listed real estate national average emission factors Assessment Report (AR5–100 portfolio used in environmental properties where its holding is companies, with the aim of creating provided by Motiva were used. year). reporting has been changed to at least 50% and where it has functional accounting, reporting, For Russia and Norway country- correspond to the definition used operational control. Minority and administrative practices that specific CO emission factor of With regard to waste and water in financial reporting and hence interests in properties where the 2 particularly fulfil the needs of the the IEA 2017, were used. For all consumption, the figures describe the Like for Like portfolio has holding is 20–50% have been taken real estate industry. other countries, the electricity the total amounts and consumption been changed from previously into account in the economic

related CO2 emission calculations of the properties. The numbers of reported. In this report the like- disclosures.

35 Management Approach Disclosures

Shared Workspace Sustainable Efficiency The material topics included to Shared Workspace theme are: Activity in Communities, Customer Satisfaction and Well-being and Generation of Economic Value Added for The material topics included to Sustainable Efficiency theme are: Building Resilience, Stakeholders. The company manages these topics according to guidelines and objectives Eco-efficient Premises and Health and Safety. The company manages these topics accor- set in the Strategic Sustainability Approach and in other policies. Actions are coordinated ding to guidelines and objectives set in the Strategic Sustainability Approach and in other on group level and distributed by functions. The purpose of the management approach is policies. Actions are coordinated on group level and distributed by functions. The purpose Material topics and description of to enhance the positive sustainability impacts of our actions and to mitigate the possible of the management approach is to enhance the positive sustainability impacts of our the management approach negative effects. actions and to mitigate the possible negative effects. Strategic Sustainability Approach and sustainability action plan Energy audit Energy efficiency plan Strategic Sustainability Approach and sustainability action plan Design Guide Concept Manual to ensure the uniformity of spaces and services. Energy efficiency agreement for premises Policies and commitments See pages 6-7 See pages 6-7 Technopolis’ strategic financial objectives are described in the Annual Report 2017 Development of a uniform Campus network. Annual separate objectives concerning Sales and Marketing, Real Estate functions, and Services and Events are set for customer satisfaction. Technopolis has specified objectives for energy consumption, water use, carbon dioxide Continuous development of events for customers and local communities and maintaining emissions and sorting, utilizing and decreasing waste. The objectives and results are high event satisfaction. described under Sustainable Efficiency chapter of this report. Goals and targets See page 8-9 for summary of sustainability targets. See page 8-9 for summary of sustainability targets. The Sustainability Manager is responsible for implementing the measures according to the strategic sustainability approach and sustainability action plan, and reports to the Group Management Team on the implementation of the action plan. The Facility Managers or partners responsible for the projects are responsible for implementing individual measures, such as energy efficiency investments or building ratings, but they are coordinated by the Sustainability Manager together with the managers in charge Chief Real Estate Officer is responsible for managing the integration and harmonization of Property Management and maintenance of Real Estate assets and the Real Estate measures pursuant to the Concept Manual, and reports to the CEO. The Chief Real Estate Controller. Facility maintenance partners have been involved in energy saving measures, Officer, the Director, Services, and the concept development team are responsible for and the environmental goals of Technopolis have been implemented for them as part of Resources and responsibilities concept development. the contractual reward structures. Grievance mechanisms See pages: 28-31 See pages: 28-31 During the reporting year, all office campuses were audited, harmonization measures were made and concept development was carried out. Customer satisfaction and decision-maker surveys events and other development of Updating the energy and carbon target setting. communality. Five Star customer service program, which supports the customer service The other key actions during the reporting year are described on pages under Sustainable Specific actions operation of employees when working with internal and external customers. Efficiency chapter.

36 Skills & Integrity Skills Integrity The material topics included to Skills & Integrity theme are: Employee Development and The material topics included to Skills & Integrity theme are: Employee Development and Engagement, Open and Compliant Communication and Code of Conduct and Compliance. Engagement, Open and Compliant Communication and Code of Conduct and Compliance. The company manages these topics according to guidelines and objectives set in the Stra- The company manages these topics according to guidelines and objectives set in the Stra- tegic Sustainability Approach and in other policies. Actions are coordinated on group level tegic Sustainability Approach and in other policies. Actions are coordinated on group level Material topics and description of and distributed by functions. The purpose of the management approach is to enhance the and distributed by functions. The purpose of the management approach is to enhance the the management approach positive sustainability impacts of our actions and to mitigate the possible negative effects. positive sustainability impacts of our actions and to mitigate the possible negative effects. Strategic Sustainability Approach and sustainability action plan. Code of Conduct Strategic Sustainability Approach and sustainability action plan. Requiring Technopolis employees, supply chain, and partners to comply with the Codes of Personnel plan; Training plan; Occupational health and safety action plan; Equality plan Conduct. Code of Conduct for employees and suppliers Green Procurement Guide Policies and Charity Policy Risk management policy and monitoring tools commitments See pages 6-7 See pages 6-7 According to the Green Procurement Guide, the greener option of two products or Committed and competent personnel services of the same price is to be chosen. Goals and targets See page 8-9 for summary of sustainability targets. See page 8-9 for summary of sustainability targets. The Board of Directors of Technopolis annually review strategy and values related to sustainability, approves the objectives, and monitors the achievement of the objectives. The Board approves the company’s Codes of Conduct and, if necessary, reviews breaches of it. No breaches were observed during the reporting year 2017. The Sustainability Manager and the Chief Legal Officer are responsible for inducting and training the Codes of Conduct and the Green Procurement Guide, and they report to the Group Management Team and the CEO. The employees of the business units in charge of procurement are responsible for the practical measures. The responsibilities related to risk management are described on Technopolis website. The organization in charge of overseeing compliance with the Codes of Conduct ensures Head of HR is responsible for maintaining the personnel, training, and equality plans. Experts that the Codes of Conduct is up to date. In addition, it oversees that all of the company’s Resources and responsibilities in charge HR matters are responsible for practical implementation. activities are in line with the operating principles and requirements. Grievance mechanisms See pages: 28-31 See pages: 28-31 The company annually updates the key documents, carries out an equality survey once every two years, and regularly assesses the measures and practices of equal recruitment, Code fo Conduct e-learning program. The actions related to risk management are career and salary development, and professional skill development. described on Technopolis website.

The other key actions during the reporting year are described under Motivated and The other key actions during the reporting year are described on pages under Integrity Specific actions Competent People chapter of this report. chapter of this report.

37 AR = Annual Review, SR = Sustainability Report , CGS = Corporate Governance Statement

102-19 Delegating authority SR 6-7 GRI Index Executive-level responsibility for 102-20 sustainability topics SR 6-7 102-21 Consulting stakeholders SR 6-7 Composition of the highest governance body and its 102-22 Gov-Board committees CGS 5, 7 GRI Standards Reporting scope in accordance with ”Core” Chair of the highest governance GRI 102-23 body CGS 5, 7 Stan- Assu­ Nominating and selecting the dard EPRA rance Additional 102-24 Gov-Selec highest governance body CGS 4,7-8 number sBPR (A) Content Page information 102-25 Gov-Col Avoiding conflicts of interest SR 24-27 Role of the highest governance General Disclosures body in setting purpose, values SR 6-7; 102-1 Name of the organization SR 2 102-26 and strategy CGS Activities, brands, products, and No banned products or Collective knowledge of highest 102-2 services SR 2 services offered. 102-27 governance body SR 6-7 102-3 Location of headquarters www.technopolis.fi/en Evaluating the highest 102-4 Location of operations AR 2-3 102-28 governance body’s performance CGS 4 102-5 Ownership and legal form SR 2 Identifying and managing 102-6 Markets served AR 2-3 102-29 sustainability impacts SR 6-7 102-7 Scale of the organization SR 2 See also CGS Effectiveness of risk CGS 10- 102-30 management processes 11 Most of the personnel figures are not presented 102-31 Review of sustainability topics SR 6-7 on country level as most Highest governance body’s role regions have less than 20 102-32 in sustainability reporting CGS 6-7 Information on employees and employees. Data is gath- 102-33 Communicating critical concerns SR 24-27 102-8 other workers SR 24-27 ered from the HR system. Nature and total number of 102-9 Supply chain SR 32 102-34 critical concerns SR 24-27 Significant changes to the 102-35 Remuneration policies CGS 8 www.technopolis.fi/en 102-10 organization and its supply chain SR 34-35 Process for determining Precautionary Principle or SR 2, 26, 102-36 remuneration CGS 8 www.technopolis.fi/en 102-11 approach 34-35 Stakeholders’ involvement in Subscribed or endorsed 102-37 remuneration CGS 8 www.technopolis.fi/en externally developed principles 102-40 List of stakeholder groups www.technopolis.fi/en 102-12 or initiatives SR 6-7 Technopolis’ employees Memberships in associations and are not directly subject to 102-13 advocacy organizations SR 6-7 a labor agreement; with 102-14 CEO’s review SR 3 regard to periods of notice Key impacts, risks, and and other key factors 102-15 opportunities www.technopolis.fi/en related to employment, 102-16 Values and Code of Conduct SR 28-29 the provisions of the Employment Contracts Act Mechanisms for advice and and other legislation and 102-17 concerns about ethics SR 24-27 other company specifically Coverage of collective agreed procedures are 102-18 Governance structure CGS 2-3 102-41 bargaining agreements followed.

38 Identifying and selecting Financial assistance received 102-42 stakeholders SR 6-7 www.technopolis.fi/en 201-4 from government SR 32 Approach to stakeholder 102-43 engagement SR 6-7 Indirect Economic Impacts SR 6-8; Significant indirect economic 102-44 Key topics and concerns raised AR 16 www.technopolis.fi/en 203-2 impacts SR 30-31 Entities included in the consolidated financial 102-45 statements SR 2, CGS Anti-corruption No special audits related Defining report content and to ethical nature of 102-46 topic boundaries SR 34-35 Operations assessed for risks business operations 102-47 List of material topics SR 6 205-1 related to corruption performed in 2017 102-48 Restatements of information SR 34-35 Communication and training 102-49 Changes in reporting SR 34-35 about anti-corruption policies 102-50 Reporting period SR 34-35 205-2 and procedures SR 28-31 102-51 Date of most recent report SR 34 Confirmed incidents of 102-52 Reporting cycle SR 34-35 205-3 corruption and actions taken SR 31 Contact point for ordering the report or questions regarding its Anti-competitive Behavior 102-53 contents Sustainability Manager Legal actions for anti- Claims of reporting in accor- competitive behavior, anti-trust, 102-54 dance with the GRI Standards Sustainability Manager 206-1 and monopoly practices SR 31 102-55 GRI content index SR 38-41 102-56 External assurance SR 42 ENVIRONMENTAL RESPONSIBILITY Energy Management Approach Elec-Abs, See also chapters: Shared DH&C-Abs, Explanation of the material topic Workspace, Sustainable Fuels-Abs 103-1 and its boundary SR 6-7 Efficiency, Skills&Integrity Elec- LfL, DH&C-LfL, The management approach and Fuels-LfL Energy consumption within the 103-2 its components SR 36-37 302-1 A organization SR 16-19 Evaluation of the management Energy consumption outside of 103-3 approach SR 36-37 302-2 the organization SR 16-19 CRE1 Energy-Int A Energy intensity of buildings SR 16-19 ECONOMIC RESPONSIBILITY 302-3 Energy intensity SR 16-19 Economic Perfomance Reduction of energy Direct economic value generated 302-4 consumption SR 16-19 201-1 and distributed SR 32-33 Reductions in energy Financial implications and other requirements of products and SR 16-19, risks and opportunities due to Climate change risks & 302-5 services SR 23 201-2 climate change opportunities Coverage of the organization’s 201-3 defined benefit plan obligations SR 36-37

39 Water Environmental compliance Water-Abs Non-compliance with Water- Water comes from environmental laws and 303-1 LfL A Water withdrawal by source SR 19-20 municipal waterworks. 307-1 regulations SR 31 CRE2 Water-Int A Water intensity of buildings SR 19-20 Supplier Environmental Assessment Biodiversity New suppliers that were Innopoli 3 property in screened using environmental Espoo is located in the 308-1 criteria SR 31 vicinity of the Laajalahti Negative environmental impacts No environmental audits in Espoo Natura 2000 in the supply chain and actions performed in the supply protected area, also a 308-2 taken SR 15; 31 chain. plot with a size of approx. 14,655 m2 is owned in the vicinity of the same Land Degradation, Contamination and Remediation area. The demands of the Land and other assets In connection with organic Operational sites owned, leased, Natura 2000 area and bird remediated and in need of growth projects approx. managed in, or adjacent to, nesting period are taken remediation for the existing or 2,500 m3 of soil was protected areas and areas of into account during con- CRE5 intended land SR 16 removed in 2017. 304-1 high biodiversity value SR 16 struction and operation. Product responsibility Emissions Type and number of GHG- sustainability certification, Dir-Abs rating, and labeling schemes for GHG- CRE8 Cert-tot A new SR 15 305-1 Dir-LfL A Direct (Scope 1) GHG emissions SR 18-19 GHG-Indir- SOCIAL RESPONSIBILITY Abs Employment GHG-Indir- Energy indirect (Scope 2) GHG Emp- New employee hires and 305-2 LfL A emissions SR 18-19 401-1 Turnover employee turnover SR 27 Scope 3 CO emissions 2 Technopolis offers its cover only the emissions Benefits provided to full-time full-time employees lunch from business travel. employees that are not provided benefits and, depending on Biogenic Scope 3 CO 2 to temporary or part-time the task a company phone GHG-Indir- Other indirect (Scope 3) GHG emissions are not 401-2 employees and company car. 305-3 Abs A emissions SR 22 assessed. 305-4 GHG emissions intensity SR 18-19 GHG emissions intensity of CRE3 GHG-Int A buildings SR 18-19 305-5 Reduction of GHG emissions SR 19

Effluents and Waste Information about the waste handling methods Waste-Abs Waste by type and disposal is provided by the waste 306-2 Waste-LfL A method SR 19-21 management companies.

40 Labour/Management Relations Non-Discrimination The periods of notice Incidents of discrimination and No notices of agreed upon in the 406-1 corrective actions taken SR 31 discrimination. employment contracts vary between two weeks Local Communities and three months. The most commonly applied Operations with local minimum period of community engagement, impact notice is one month. Local assessments, and development No impact assessment policies corresponding to 413-1 Comty-Eng programs SR 10-14 made. collective labor contracts are compiled in the joint Supplier Social Assessment Technopolis administrative In addition to our Supplier Minimum notice periods guidelines available to the Code of Conduct process, 402-1 regarding operational changes employees. New suppliers that were suppliers aren’t screened 414-1 screened using social criteria SR 31 using social criteria. Occupational Health and Safety Workers representation in Public Policy formal joint management– 415-1 Political contributions SR 31 worker health and safety 403-1 committees SR 27 As the total number of Customer Health and Safety Types of injury and rates of accidents is under 10 it Assessment of the health and injury, occupational diseases, lost is not material to use the safety impacts of product and days, and absenteeism, and num- breakdowns suggested in 416-1 H&S-Asset service categories SR 16 403-2 H&S-Emp ber of work-related fatalities SR 28 the GRI standards. Incidents of non-compliance Percentage of the concerning the health and organization operating with safety impacts of products and None according to best of verified compliance with an 416-2 H&S-Comp services our knowledge. internationally recognized health CRE6 and safety management system. No such system in place Local Communities The Technopolis Training and Education Number of persons displaced construction sites have Emp- Average hours of training per and/or resettled by not caused relocation of 404-1 Training year per employee SR 27 CRE7 development residents. Programs for upgrading 404-2 employee skills SR 24-27 Socioeconomic Compliance Percentage of employees Non-compliance with laws and receiving regular performance regulations in the social and 404-3 Emp-Dev and career development reviews SR 26 419-1 economic area SR 31

Diversity and Equal Opportunity Diversi- Diversity of governance bodies SR 25-26, 405-1 ty-Emp and employees CGS 6-7

41 Independent Assurance Report

To the Management of assurance criteria (hereafter GRI responsibility to any party other The procedures performed in a Assessment of data accuracy and Technopolis Oyj Standards and EPRA sBPR). than Technopolis for our work, for limited assurance engagement vary completeness through a review of this assurance report, or for the in nature and timing from and are the original documents and systems We have been engaged by the Inherent limitations on the conclusions we have reached. less in extent than for a reasonable on a sample basis; Management of Technopolis engagement assurance engagement and conse­ Oyj (hereafter Technopolis) to We are independent from the quently the level of assurance A visit to one of Technopolis’s sites. provide limited assurance on the The inherent limitations on company according to the ethical obtained in a limited assurance environmental indicators from accuracy and completeness of requirements in Finland and we engagement is substantially lower. the reporting period 1 Jan -31 Dec data related to the Environmental Conclusions have complied with other ethical 2017 presented in Technopolis’s Information are to be taken requirements, which apply to the In our engagement we have Based on the assurance procedures Sustainability Report 2017 (hereafter into account when reading our engagement conducted. performed the following procedures: performed, nothing has come to Environmental Information). assurance report. The presented our attention that causes us to Environmental Information is Interviews with the persons believe that the information subject to be considered in connection We apply the International The Environmental Information responsible for the reporting of the to the assurance engagement is not with the explanatory information Standard on Quality Control 1 subject to assurance consists of the (ISQC 1) and accordingly maintain Environmental Information; prepared in accordance with the following indicators; on data collection, consolidation GRI Standards and EPRA sBPR in and assessments provided by a comprehensive system of quality An assessment of conformity all material respects. Technopolis. control including documented • The indicators presented in policies and procedures regarding with the reporting principles GRI the tables presented in the compliance with ethical require­ Standards and EPRA sBPR in the The Management of Technopolis “Sustainable Efficiency” chapter; ments, professional standards and presentation of the Environmental is responsible for the measuring, • Energy (GRI 302-1, CRE1), applicable legal and regulatory Information; Helsinki, 15 February 2018 preparation and presentation of • Water (GRI 303-1, CRE2), requirements. KPMG Oy Ab • Emissions (GRI 305-1, GRI the Environmental Information in An assessment of data management 305-2, GRI 305-3, CRE3), and accordance with the GRI Standards processes, information systems and Lasse Holopainen and EPRA sBPR. Summary of the work • Effluents and Waste (GRI performed working methods used to gather APA 306-2) and consolidate the Environmental • Product responsibility (CRE8) Our responsibility is to express an A limited assurance engagement Information; Tomas Otterström independent conclusion on the consists primarily of making Partner, Advisory GRI Sustainability Reporting Environmental Information. We inquiries of persons responsible for A review of the presented Standards and EPRA Sustainability have conducted the engagement the preparation of the Environmental Environmental Information with an Best Practices Recommendations in accordance with ISAE 3000 Information presented, and applying assessment of information quality Guidelines (Third version(Revised). To the fullest extent analytical and other appropriate and reporting boundary definitions; September 2017) were used as the permitted by law, we accept no evidence gathering procedures.

42 43 www.technopolis.fi