2020 SUSTAINABILITY REPORT CONTENT

About us 3 Global Mirka 5 An overwiev by our CEO 7 The Mirka Way and our organisation 8 SUCCES DRIVEN BY PEOPLE Automation calls for continuos training of the personnel 9 Investments in safety and wellbeing at work pay off 11 CLEAN PRODUCTION New revolutionary technologt saves 95% in produciton energy 12 Succsessful quality campaign resulted in substantially lower factory waste 14 CLEAN PARTNER Lower Carbon footprint through local purchases 20 Program setting industry standards in Europe 21 Dust-Tree: Clean air by Abranet® in India 21 Renewing the car fleet in 21 Reporting principles 22 Content index 23 About Mirka Mirka Ltd is a global company and health, technical and environmental serves as the basis for the group’s part of the family-owned KWH aspects. comprehensive business plan, which Group Ltd. Mirka’s business idea is to is drawn up annually and approved offer world leading surface finishing Our Vision by Mirka’s Management Team and the solutions. Our business focuses on our ”We wish to reach a market position, Board of Directors. All business and customers’ needs. where customers and interested factory units are involved in drawing We offer a wide range of solutions parties see us as a market leader and up the business plan. Department- for surface finishing and precision the most responsible company who level goals are set based on the sanding and we specialize in total drives innovation in our core business business plan. The management team solutions in which our abrasives are sectors.” for the parent company Mirka Oy has supplemented by our innovatively one employee representative. designed machines and polishing Our Mission compounds. “We want to give people the Our Company Culture opportunity to perform better”. At Mirka we understand that every Approximately 97 % of Mirka’s job has its own unique requirements, production is exported, with products Our Values which is why we work closely with being sold in over 100 countries. The customers to provide tailored company’s typical customers are, Responsible - For all results & resources. solutions that precisely meet their among other things, manufacturers Ethical business practice. Structured needs. of wood products, automotive and well organised. Cost-aware. After gaining a clear understanding of manufacturers, and subcontractors, as Committed - Keep our promises. Close exactly what each customer requires, well as the construction and renovation to the customer. Dedicated to high our technical customer support industry and the composite industry. performance. Passionate people. specialists recommend high-quality Innovative - Open to new ideas. products, processes, and training For over than 75 years, our brand Continuously seeks to improve. We that ensure that successful results has paved the way for technical create solutions that are good for us, can be achieved at every step of the breakthroughs in surface finishing, our customers and society as a whole. operation. and we continue to shape the industry Respectful - Every individual is valuable Sustainability is built into The Mirka with our expertise. We follow our and can contribute. Open work Way. When the system is set up with company values by being responsible, environment. Warm and genuine. Fair. all the right parts and customers have committed, innovative and respectful. all the information needed to get We offer our customers sustainable Our Organisation great results, then their work is more solutions that consider the financial, Mirka’s long-term group strategy sustainable.

Our Clean Commitments In this Sustainability Report, we have compiled our economic, environmental, and social initiatives and achievements under “Our Clean Commitments”. Under these topics, we describe the development of our corporate sustainability transparently with various KPIs. Association membership Collective bargaining agreements Stakeholder engagement EPTA 100% of employees are covered by F.E.P.A. We believe in sustainable and honest collective bargaining agreements. As an Finnsecurity r.y. stakeholder engagement, and our employer, we follow Kemianteollisuus Henkilöstöjohdon ryhmä - Henry r.y. objective is to maintain a continuous ry’s (The Chemical Industry Federation IBC r.y. and active dialogue with our partners. of Finland) collective bargaining ISA agreements with trade unions Pro, Kemianteollisuus r.y In stakeholder engagement, we utilize YTN and Teollisuusliitto. Pro, YTN Nollis-foorumi our Enterprise Resource Planning and Teollisuusliitto have their own Företagare r.f. (ERP) and Customer Relationship representatives in negotiations Puuteollisuusyrittäjät r.y. Management (CRM) systems. Our CRM between employer and personnel. Rasi r.y. system enables a customer-oriented Suomalaisen Työn Liitto approach where sales operations and No discrimination Suomen Laatuyhdistys sales planning are managed using Suomen Riskienhallintayhdistys r.y. the system. This helps us to better During the reporting period, we Suomen Tekstiiliteknillinen Liitto r.y. develop our customer relationships received no reports of discrimination. Veronmaksajain Keskusliitto r.y. and respond swiftly to any customer Västra Nylands Handelskammare needs. Systematic planning of our Child labour Österbottens Handelskammare sales operations also optimises our travel, which enables us to reduce our When auditing suppliers Mirka always Corporate governance environmental impact. check the minimum employment age to avoid using child labour We continuously aim to improve The CRM system is also essential our work with stakeholders and in terms of quality management. maintain high ethical standards The system enables us to work in all our operations. These efforts systematically on any issues related to are supported by Mirka’s corporate quality, the environment, health, and governance and ethical guidelines for safety and involve our customer in our all group personnel. Mirka’s corporate development process, for example, governance creates a consistent when developing new products and framework for the entire group’s solutions. global operations, thereby enabling open and reliable local operations. Digital systems also enable The Board of Directors reviews and increasingly paperless office work. updates the corporate governance The Mirka intranet, for example, plays materials on a regular basis. In addition, an important role here. It makes all the company’s ethical guidelines internal information and instructions instruct our employees to work in a available in digital format to personnel, way that does not create personal regardless of where their workstation obligations to outsiders. These ethical is located. guidelines are part of the induction process for new employees and Certification of subsidiaries training is arranged regularly. Since 2020 all Mirka’s subsidiaries are Significant stakeholders ISO 9001 certified.

Our stakeholders are defined based Anti-corruption on how our business operations affect them and how their activities impact Anti-corruption training is given to the development of our business all new employees in Finland. During operations. Mirka’s most significant the reporting period, we received no stakeholders are the customers, reports of corruption involving our owners, employees, suppliers, and personnel or our business operations. service providers. Global Mirka

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

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

Global Mirka An overview by our CEO

Long-term sustainable development the countryside, and we continue to enable even bigger and faster has always been an important and to invest heavily in our world-class steps of development. Mirka is a natural part of Mirka’s business. It is facilities. Not only are we proud of our founding member of the Sustainable an integral part of Mirka’s vision: …to capabilities and technology, but we European Abrasives Manufacturer be seen by customers and interested are also proud to contributing greatly, (SEAM) program, where the whole parties as the most responsible both directly and indirectly, to keeping abrasives industry in Europe company. This vision of sustainability is the countryside alive and thriving. comes together to lead an even expressed in our Clean Commitments. stronger sustainable development. The cornerstones for our customers This means that we strive to are of course our dust-free sanding Right now the whole world if struggling manage all parts of our operations solutions and ergonomic tools. This under the COVID-19 pandemic. and manufacturing with as little is one of the keys in sustainability, Historically there has unfortunately impact on the environment as to extend the benefits all the way been a trend to prioritize sustainability possible and ensure that using our to the users of our solutions, to less in times of economic hardship and products improves ergonomics enable them to work safer, more crises, but this time I feel it is different. for end users and facilitates a effective and wasting less resources. The EU Green Deal and a green and healthier work environment. digital transformation will be integral Health and ergonomics, naturally, parts of the recovery programs in When considering the environment, also apply to our employees here Europe. I hope there will still be the our goal is to develop environmentally at Mirka. Over the past years, there strong will and capability to carry friendly manufacturing processes and has been substantial investment this through, as the environment use sustainable raw materials. A good in Health and Safety development is in an even bigger crisis. example of the latter is our water- and ergonomics, for example, based polishing compounds which are continuously improving Power Tools Details on the topics mentioned better for users and the environment assembly workstations. For years, our here and much more can be found than solventbased compounds. zero-accident policy has led us to in this Sustainability report. All in all, continuously improved occupational we feel that we are following our We have a policy of sourcing safety and well-being in the vision of being the most responsible raw materials, components, and company towards world-class levels. company in our industry. We are services locally when possible, proud of our achievement, but also and great care is taken in auditing It is an exciting time for sustainable humble regarding future challenges and approving all suppliers. development. The EU Green Deal for creating a more sustainable world. We are only as sustainable as really is engineered to support a We are committed to doing our part! our whole network is together. strong green transformation, and a Mirka’s factories in Finland are in lot of investments will be channelled Stefan Sjöberg, CEO The Mirka Way and Our organisation

Our Company Culture Our Vision

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

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

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

Parent company KWH Group Ltd

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

EXTERNAL AUDITORS for the subsidiaries are appointed by Mirka Ltd

The Mirka Way and Our Organisation Success driven by people Automation calls for continuous training of the personnel Mirka puts great effort intowere trained at an average of 16 hours. discuss the employee’s work situation personnel training, which has Despite being on this high level, the and the things he or she perhaps become increasingly important. New numbers dropped a bit compared wants to change. skills are needed as manual work is to previous years because it was replaced by automated processes. harder to organise training during the Remote work is here to stay. pandemic. Before the corona pandemic, remote Mirka has always been committed “In 2020, we were able to train work was not that common at Mirka. to training its personnel. In recent especially white-collar workers, as their Ulla Kauppi estimates that remote years, however, training has become training is easier to organise online. work is here to stay, even after the even more important. As more and Naturally, some of the training was pandemic ends. Working remotely more processes are automated and related to the new situation caused by from home has gone very well for most digitalised, there are constantly lots the pandemic. For example, managers people, but there are also challenges. of new things to learn. At the same had to learn how to lead remotely”, “People need social interaction and time, focus has shifted from routine says Kauppi. want to meet their colleagues. We manual work towards knowledge and can also see that interaction between expertise work. Development discussions each year different units at Mirka is not as “We really put great effort into training. In addition to training, Mirka intense as it was before, which is a In addition to training our current employees also participate in shame. I therefore think that some employees, we are also constantly development discussions each year kind of a hybrid model would be ideal hiring new employees to get the right with their supervisors. Normally, these in the future, where people can work kind of expertise to Mirka”, explains HR discussions take place face-to-face, from home some of the time, but not Manager Ulla Kauppi. but during 2020, some discussions all week.” Generally, Mirka employees are were held remotely. nowadays required to have completed “We have instructed the supervisors at least a secondary education. to pay extra attention to how the new situation has affected employees. Remotely, it is harder to detect if Committed to training. somebody is not feeling well.” In 2020, Mirka’s white-collar workers The main idea of the development received an average of 52 hours of discussions is that the employee and training, while blue-collar workers the supervisor sit down together to

Investments in safety and wellbeing at work pay off Safety and wellbeing at work have to an even greater extent than before. continuously to support wellbeing at for a long time been top priorities work. The sick leave rate was 4.1% in for Mirka. The consistent and Safety during the pandemic 2020, which is an unusually low rate methodical work has resulted in low Mirka’s extensive safety work has paid for an industrial workplace. The rate accident and sick leave rates. off in low accident rates. In 2020, there dropped a bit from the previous year, were 13 work accidents at Mirka and perhaps due to low infection rates When a new employee starts at Mirka, the LTIR (Lost Time Injury Rate) was in general because of the pandemic he or she undergoes a very thorough 7.0, which is a very low number for any restrictions. and extensive safety training. industry. “As our numbers are already on a very Employees in production get an In 2020, it also became evident that good level, it is not that easy to push occupational safety card that needs to Mirka benefited greatly from previous them down even further. However, be renewed every five years. safety work when dealing with the the goal for 2021 is a sick leave rate of These are just a couple of examples corona pandemic. The production was 3.7%”, states Ulla Kauppi. of how Mirka takes safety issues very quickly organised into different safety seriously. In recent years, even more zones to prevent employees from What, then, has Mirka done to reach focus has been put on safety, as it is meeting each other physically. Thanks these good rates? As with safety issues, also part of Mirka’s strategy. This means to this and other preventive measures, it is all about long-term continuous that the whole company, including there has only been the occasional work that consists of many small the management, is committed to corona infection among Mirka’s staff, everyday measures. And naturally, low safety work. and production and delivery safety accidents rates also translate into low has not been jeopardized at any time. sick leave rates. Safety issues are reported When things are back to normal again, Mirka has a so-called early caring Mirka also has a system, where Mirka hopes to be able to resume the strategy, where potential problems anybody can report safety issues. so-called safety walks, which were are addressed before they grow big. “We get a lot of reports, which proves earlier organised on a regular basis. “The supervisors are instructed to that employees in general take safety During the walks, people from different intervene at an early stage and have issues seriously. People can also report departments visited each other to a set of questions for discussion. There positive things, which serves as great scan for potential safety hazards. This is also a low threshold to involve our examples for others”, explains HR has proven to be effective, as people occupational health. The methods are Manager Ulla Kauppi at Mirka. tend to be a bit blind to their own quite similar both for factory workers In 2020, the safety work was intensified departments. and office staff”, explains Ulla Kauppi. with the launch of the BeSafe campaign. The campaign aimed at Low sick leave rates raising awareness around safety issues In addition to safety, Mirka also works Clean Production New revolutionary technology saves 95% in production energy For some years now, Mirka has Less chemicals Sundell. been developing a completely new A drastically reduced energy production method for its abrasives. consumption is only one of the Less waste Not only is this ground-breaking benefits that comes with the new With the new machines, every method hugely energy efficient; it production method. Other benefits production step is more exact. Due to also allows for production without include reduced amounts of this fact, there is also less waste. hazardous chemicals. hazardous chemicals as well as less “Now we can, for example, print the waste in production. sand grains only on the needed areas, Throughout its history, Mirka has “The traditional type of glue used and not necessarily on the whole invested a lot in R&D and has also in abrasives requires formaldehyde paper. Moreover, the new type of come up with several revolutionary chemistry. Free formaldehyde is today glue does not expire as fast as the old, solutions, with dust-free sanding as labelled as possibly cancerogenic, which means that there is also less the most prominent example. Now which is a hazard both in the glue waste.” Mirka is amid taking the biggest production of abrasives, but also In Mats Sundell’s future vision, Mirka technology leap in the company for the end customer, who uses the will also print data on the abrasives, history, with the introduction of a abrasive. We are very happy to have allowing customers to automate and completely new production method. found a production method that does streamline their production processes. In Mirka’s new machines, the glue that not need formaldehyde at all, and “My prediction is that in ten years, all binds the sand grains to the paper is that gives the end customer an even Mirka abrasives are manufactured hardened with high-energy curing, healthier working environment”, says with this new technology.” instead of hardening the glue with heat as in the old machines. “You could compare the old machines to giant paper machines, while the new machines are more like digital printers. The old machines are hundreds of meters long, while the new ones are just 25 metres”, explains R&D Director Mats Sundell.

Two new machines The reason that the old machines are so big is because they feature giant dryers that use heat to bind the sand grains to the paper. It goes without saying that this production method is quite energy-intensive, and the new machines therefore use as much as 95% less energy than the old ones. Mirka has developed the new machine type for ten years already and is nowadays a forerunner in the field. At the moment, two machines of this new type are up and running, producing abrasives for customers. In 2021, the new production method is estimated to stand for a considerable part of the sales value of all Mirka abrasives. “2020 was really something of a break- through for this new production method”, says Mats Sundell.

Successful quality campaign resulted in substantially lower factory waste. In 2020, Mirka launched a campaign to improve quality and productivity, mainly by lowering the waste in production. As the targets were exceeded, the campaign can be described as a success.

The campaign was launched in early 2020 to the personnel. Two of Mirka’s biggest coated abrasive products were chosen for closer examination – Gold 80 and Gold 320. The goal was to find out in which stages of the production unnecessary waste emerges, and to change the way of working by raising awareness among the employees. In addition, tangible targets were set for the campaign. The measures should result in savings of 250 000 were very down-to-earth. might be that productivity and quality for the two Gold products, as “We simply examined all stages of issues have therefore not gotten quite well as in savings of one million euros production very carefully. We also the attention they deserve”, explains for all Mirka’s products. put great effort into explaining to Joakim Hinders. the employees why we were doing Targets were exceeded. this and how they could improve Continuous improvement At the end of the year, it became clear their own way of working. We want In the future, however, productivity that the campaign had been a success employees to understand how their and quality issues will remain high on as the targets had been exceeded. The own actions impact Mirka’s result”, the agenda, as the goal is to continue savings were several thousands of explains Joakim Hinders. the work started by the campaign and euros over target for the closely continuously make improvements. examined Gold products, and as the Close attention to waste A new product has been chosen improved ways of working started to Employees were encouraged to pay for closer examination in 2021. In spread to other products as well, the close attention to waste and report addition, Mirka will have a closer look total savings for all Mirka’s products all incidents where waste occurred. on how to minimize, not only were substantial. Production unit One thing that quickly became clear paper waste, but also abrasive grit manager Joakim Hinders, who was that the biggest part of the waste and glue waste in production. oversaw the campaign, is very happy emerged at the end of the production “Our goal is that eventually, all with the results: process. At some production lines, employees will automatically work “Of course, it is nice that we managed employees had a habit of cutting in a way that prevents waste from to exceed the targets. It is evident off as much as ten meters at the emerging. This requires training so that that the savings were the result of beginning of each reel, just in case it the new ways of working eventually our campaign and the enhanced was not of good enough quality. This become a habit.” awareness among the staff, as the material is not used in the next step processes in a technical sense largely of production anyhow, which meant remained unchanged during 2020. that huge amounts of perfectly fine Another factor that contributed to abrasives were discarded. reaching the targets was a change in “This was not really anybody’s the minimum orders quantity in our fault; we had just not paid enough machines.” attention to these things before. We have had a strong focus on safety Down-to-earth measures in production in recent years, and it How, then, were these impressing results achieved? The measures taken

Clean Partner Lower carbon footprint through local purchases For decades already, Mirka’s strategy components at a lower price from Reusable packaging has been to purchase as much of Asia, you always have to have the total The environmental benefits of this its components and raw materials cost in mind”, explains Operations supplier strategy not only come from as possible from local suppliers. In Director Joachim Rännar at Mirka. shorter transports, but also from less addition to short transports and a “Longer transports increase costs both packaging. The longer the transport, lower carbon footprint, this strategy in terms of time and money and if the more packaging is usually needed. also enhances quality and delivery there is a problem, it is generally easier With local suppliers, Mirka has been security. to solve the closer the supplier is. It is able to develop rotating systems with also a great benefit if the supplier can reusable packaging. If Mirka is faced with the decision visit our factory to get to know Mirka “I see this as a win-win situation for to choose between two different and our needs.” both us and our suppliers. They know suppliers, that technically and that we have high demands on quality, economically are somewhat equal, the Lower transports and less packaging and we have been able to mutually company generally favors the supplier This way of working applies to all enhance both quality and processes.” that is geographically closer to Mirka’s sourcing at Mirka, from raw materials production facilities in Finland. for abrasives to components for Successful strategy in 2020 This way of working has many benefits: electrical tools. When Mirka first In 2020, the local sourcing strategy started producing electrical tools a proved to be more beneficial than • Short transports decade ago, the components were ever, as the year was turbulent due • Lower carbon footprint first sourced mainly from Asia, but to the pandemic. In the beginning of • Time savings later Finnish suppliers were chosen the year, there were disturbances in • Just-in-time deliveries instead. the supply chains from Asia because • Enhanced security of supply “It is easier to handle things when you of lockdowns in China. Later on, there • Closer relation to suppliers can communicate with people close was a shortage of transport capacity • Easier to monitor quality by. Moreover, the transport costs can from Asia. be quite high if you are not able to “Of course we were not immune Mirka has consistently been working fill a whole container. Luckily, it has to these problems, as many of our according to this principle for decades been easy to find local suppliers of local suppliers are dependent on raw already, resulting in a big network of components for our tools. And if we material and components from Asia. local suppliers. More than half of the cannot find Finnish suppliers, the next However, we were in a much better raw materials and 30 percent of the step is to look for European suppliers. position than we would have been components used by Mirka come The closer they are to our factories, the if we had sourced everything in Asia. either from the Ostrobothnian region better”, says Rännar. What we learned in 2020 is that it is or from Finland in general. vital to have many different suppliers “Although you might get some to spread the risks”, says Rännar. Program setting industry standards in Europe

As a member of the he Federation of European Producers of Abrasives, FEPA, Mirka had a central role in the founding of the Sustainable European Abrasives Manufacturer (SEAM) program, that was launched in 2020.

The objective of the SEAM program is to support and assist European To be approved in to the program, a European sustainability standard abrasive manufacturers on their way manufacturers have to meet a series of that pulls industry upward where it towards sustainable growth and minimum requirements within these can find the right balance between sustainability improvements, mostly pillars, so for Mirkas part this came environmental efficiency, production in production and distribution. The naturally through our commitment to performance, labor safety for the program is organized into the three sustainability whole abrasives industry in Europe fundamental pillars of sustainability: comes together to lead an even environment, labor and economy. The SEAM programs idea is to set stronger sustainable development. Dust-tree: Clean air by Abranet in India “We have only one home.” Mirka dust caught by a single India has firm faith in protecting the sacred fig, or peepal, tree is environment. To further strengthen about 2.3 kg per month. It the actions done by Mirka globally, means that using Abranet they took another step by offering is equivalent to planting a solution that creates a clean and 26 trees. healthy environment. As a result, Mirka India Since its conception, Mirka’s dust- partnered with the NGO free solution has created a stir in the Give Me Trees trust and market. The Abranet + Mirka DEROS launched the Dust Tree- + Dust Extractor combination is a campaign in Delhi – one After the planting, the Give Me Trees valuable deal for our customers and of most polluted cities in the world. trust, which co-operates with the partners. In 2019 Mirka India showed The outline for the campaign was government, takes responsibility for how our solution can benefit the that for every 500 discs of Abranet caring for the trees. The campaign environment. sold, Mirka India would plant a created a buzz among customers peepal tree in selected green areas in India and had all ingredients to With facts collected from wood in Delhi. Interested customers were become a success. Unfortunately, workshops they concluded that also invited to these plantings where the outbreak of the corona epidemic, Mirka’s dust free solution catches they were introduced to the natural and all restrictions that followed in its approximately 2.3 kg of dust per 8 phenomenon of a self-sustaining eco wake, the campaign was put on hold hrs of shift. To back it up with facts system. in 2020. it was calculated that the amount of

Renewing the car fleet in Brazil In many countries a car is a necessity, environmentally friendly alternatives (8 % gasoline, 8 % diesel). Currently for example when visiting customers, to cars running on traditional fuels. most of the fleet is biofuel driven (67 and Brazil is no exception. But as well %) and about one fifth of the cars are known, emissions from transport have This meant moving away from diesel hybrid vehicles. a major environmental impact. and gasoline in favour of biofuel and In the future plans are to explore the Therefore, Mirka Brazil decided to do hybrid vehicles. This strategy has possibilities to further develop the car their part, and advocated the strategy paid of and in the end of 2020 only fleet towards more eco-friendly and that, as the car fleet was renewed, 16 percent of Mirka Brazils car fleet increase the amount of hybrid and emphasis would be placed on more consists of cars run by traditional fuels electric vehicles. Reporting Principles Mirka publishes its Sustainability Report every two been selected based on their business significance, developments. Where possible, we have reported years. This report is for corporate sustainability in impact and stakeholder expectations and needs. the information from the current and previous 2019 - 2020 and the information in the report is We have also made a cross-reference to the United periods for comparison purposes. Our Board collected from all units that are under direct control Nation’s Sustainable Development Goals. of Directors has approved this publication and of Mirka Ltd, unless otherwise specified. confirmed that the presented information is The reported indicators and topics provide our accurate and verifiable In addition to the Sustainability Report, Mirka stakeholders extensive and reliable information publishes its annual review including the most for assessment and a transparent picture of For more information on our report, please contact: significant financial indicators as part of the KWH Mirka’s economic, social and environmental [email protected] Group Ltd’s Annual Report. responsibility. We want to present our information Tel. +358 (0)20 760 211 in a comprehensive, clear and understandable way. Mirka’s Sustainability Report 2020 is a GRI Standards For more information about GRI, go to: referenced report (for more details see Content Our goal is to provide an objective overview of www.globalreporting.org index). The reported topics and indicators have our operations rather than only focus on positive Content index

Disclosure GRI Reference Location Omissions GRI 102: General disclosures 1. Organisational profile Name of organisation 102-1 www.mirka.com/sustainability Activities, brands, products and services 102-1 www.mirka.com/sustainability and Global Mirka Location of Headquarters 102-3 www.mirka.com/sustainability and Global Mirka Location of operations 102-4 www.mirka.com/sustainability and Global Mirka Ownership and legal form 102-5 www.mirka.com/sustainability and Global Mirka Markets served 102-6 www.mirka.com/sustainability and Global Mirka Scale of the organisation 102-7 Infographics, www.mirka.com/sustainability, The Mirka Way Information on employees and other workers 102-8 Infographics, www.mirka.com/sustainability Significant changes to the organisation and its supply chain 102-10 Infographics, www.mirka.com/sustainability Membership of associations 102-13 About Mirka 2. Strategy Statement from senior decision-maker 102-14 An overview by our CEO 3. Ethics and integrity Values, principles, standards and norms of behaviour 102-16 About Mirka, www.mirka.com/sustainability 4. Governance Governance structire 102-18 www.mirka.com/sustainability, The Mirka Way 5. Stakeholder engagement List of stakeholder groups 102-40 About Mirka Collective bargaining agreements 102-41 About Mirka Identifying and selecting stakeholders 102-42 About Mirka 6. Reporting practice Changes in reporting 102-49 Reporting Principles Reporting period 102-50 Reporting Principles Date of most recent report 102-51 Reporting Principles Reporting cycle 102-52 Reporting Principles Contact point for questions regarding report 102-53 Reporting Principles Claims of reporting in accordance with GRI standards 102-54 Reporting Principles GRI Content index 102-55 Content index GRI 204: Procurement Practices 2016 Proportion of spending on local suppliers 204-1 Infographs, Clean partner GRI 205: Anti-corruption 2016 Communication and training about anti-corruption policies and procedures 205-2 About Mirka Categorisation by region and employee category Confirmed incidents of corruption and action taken 205-3 About Mirka GRI 301: Materials 2016 Materials used by weight or volume 301-1 Infographs, Clean production GRI 302: Energy 2016 Energy Consumption within the organisation 302-1 Infographs, Clean production GRI 303: Water and Effluents 2018 Water withdrawal 303-3 Infographs Water discharge 303-4 Infographs GRI 305: Emissions 2016 Direct (scope 1) GHG emissions 305-1 Infographs GRI 306: Waste 2020 Waste generated 306-3 Infographs, Clean production Disclosure GRI Reference Location Omissions GRI 401: Employment New employee hires and employee turnover 401-1 Infographs GRI 402: Labor/Management relations 2016 Minimum notice periods regarding operational changes 402-1 About Mirka GRI 403: Occupational Health and safety 2016 Occupational health and safety management system 403-1 Success driven by people Hazard identification, risk assesment, and incident investigation 403-2 Success driven by people Worker participation, consultation and communication on occupational health and safety 403-4 Success driven by people Promotion of worker Health 403-6 Success driven by people Work-related injuries 403-9 Success driven by people, Infographs GRI 404: Training and education 2016 Average hours of training per year per employee 404-1 Success driven by people, Infographs

Percentage of employees receiving regular performance and career development reviews 404-3 Infographs GRI 406: Non-discrimination 2016 Incidents of discrimination and actions taken 406-1 About Mirka GRI: 408 Child labor 2016 Operations and suppliers at significant risks for incidents of child labor 408-1 About Mirka GRI 103: Management approach 2016 Explanation of the material topic and its Boundary 103-1 Reporting Principles The management approach and its components 103-2 Reporting Principles Evaluation of the management approach 103-3 Reporting Principles