SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX CONTENT 3 RESPONSIBLE FINNAIR 42 ANNEX 4 Push for Change 43 Reporting principles 6 Value creation model 45 Global Compact content index 7 Materiality analysis 46 GRI content index 9 Management principles 50 Independent practitioner’s limited 16 Ethics and responsible sourcing assurance report 18 CLEANER 20 Energy consumption 23 Flight noise and biodiversity 25 Emissions 27 Waste 28 CARING 29 Caring for our employees 34 Caring for our customers 35 COLLABORATIVE 36 Stakeholders 37 Economic responsibility 39 Tax footprint 2 2 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX RESPONSIBLE FINNAIR Finnair’s objective is to create sustainable economic added value by producing flight services profitably, cost-competitively and in harmony with the needs of the environment and society. • Push for Change • Management Principles • Value Creation model • Ethics and Responsible • Materiality Analysis sourcing 3 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX PUSH FOR CHANGE The same journey can generate more or less emissions, depending on a number of factors. By selecting a sensible form of travel, a direct and lower-emission route as well as an airline that uses modern aircraft, everyone can reduce the environmental impact of their journey. In the name of ethics, companies should not compromise on their travel, but on their emissions. Airlines decide whether to invest in modern technology, recycle waste appropriately, reduce energy consumption, and care Does this ring a bell? Climate change and all years around the world, in aviation, and That is why we must act even more deci- for the wellbeing of employees. As the our efforts to minimise its impacts keep the particularly at Finnair. sively. We must find new ways of reducing customer, you decide, however, on the kind discussion going. This topic has been part of In 2012, the air transport industry joined jet fuel consumption and rely more on alter- of airline you support. practically every evening conversation I’ve the EU-wide Emission Trading Scheme native sources of energy. Many promising had recently. This actually makes sense –solu- (ETS). In 2016, the international community projects are already in the pipeline. Tourism is one of the world’s biggest busi- tions need to come fast. agreed on a global carbon offsetting and For us, at Finnair, responsibility includes nesses. It employs more than eight per cent Already in 2008 the topic of climate reduction scheme for international avia- more than the protection of the environment of the world’s labour force and produces change and its impacts was under the focus tion, which requires reporting from this year from emissions and other negative impacts. more than ten per cent of the world’s gross in Finnair’s first report on social responsi- onwards. Finnair, for its part, has signifi- We take all areas of responsible business domestic product. Tourism’s impact on the bility, which followed the guidelines of GRI. cantly renewed its fleet and improved its seriously. We also see importance in working world – whether it be good or bad – is huge. Even if the quotes above come directly from operations so that the level of emissions for together with our partners to ensure sustain- that report, they would still be relevant as 2009–2017 has decreased by 20 per cent able development. part of this report for 2018, against the back- / revenue tonne kilometre. The aviation Over the past ten years, the number of part- ground of changes that took place over ten industry, including Finnair, keeps growing. ners has grown. Finnair has remarkable part- 4 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX ”OUR RESEARCH RESULTS SHOW THAT THE MAJORITY OF THE FINNISH PUBLIC WOULD BE WILLING TO MAKE CONTRI- BUTIONS IF THE FUNDS WOULD DIRECTLY OFFSET CARBON EMISSIONS OR SUPPORT FLYING WITH BIOFUEL.” ners that cooperate with us on the advance- Change, which helps customers offset and ment of sustainability in the societies where reduce the emissions of their flights. We we operate. The most prominent themes of introduced this service based on research this year included well-being and education results from summer 2018, which show that for children and youth, women empower- the majority of the Finnish public would be ment around the globe, equality and non-dis- willing to make contributions, if the funds crimination, development of accessible would directly offset carbon emissions or services, prevention of human trafficking, and support flying with biofuel. supporting the fight against cancer. Standing Our new initiative, Push for Change, offers by our commitment to responsible business is customers both opportunities. A customer crucial in today’s changing world. can purchase biofuel to be used in our flight Already in 2008, our customers, both operations or support the use of low emis- individual passengers and organisa- sion cooking stoves in Mozambique. tions, wished they would be able to reduce Let us keep working together towards emissions related to flying. Yet then, our flying and tourism that are more responsible. customers did not show readiness to partic- ipate in an offsetting programme. Now the time is right. In January 2019, Kati Ihamäki Finnair launched a service called Push for Director, Corporate Sustainability 5 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX Value creation INPUTS / RESOURCES VALUE CREATED / IMPACTS OUR VISION, PURPOSE AND Value for society Human capital MISSION Personnel of 6,360, Flight connections for business and training hours 50.3/person, expertise OUR VALUES AND leisure travellers, GDP contribution, CODE OF CONDUCT taxes, innovative and sustainable Financial products Adjusted interest-bearing debt PRODUCTS / OUTPUTS €675.2 million, Value for shareholders equity capital €1,021.7 million Market cap €907.8 million, Network return on capital employed (ROCE) 11.9% Immaterial Over 130 destinations in Value for customers Traffic rights, overflight rights Finnair’s network and The fastest connections between Europe customer data, quality certifications, over 1,000 in oneworld and Asia, customer satisfaction NPS 48, route network, brand and customer base network safe and reliable operations Social and partnerships Passenger Supplier and partners, joint businesses transportation Value for personnel (AJB/SJB) and alliance cooperation, 13.3 million passengers, Salaries and benefits €428.6 million, distribution channels, public affairs STRATEGIC ancillary services people experience 3.77/5 FOCUS AREAS Cargo transportation Environmental impacts Fleet and infrastructure Growth Modern and efficient fleet of 81 aircraft, 158,140 tonnes Greenhouse gas emissions 3,243,538 (jet fuel), noise and waste COOL Nordic Cargo Terminal, Helsinki hub Customer experience Travel services Natural resources People experience Package tours, Jet fuel use 1,031,123 tonnes, dynamic travel products energy consumption of facilities 259,479 GJ, Transformation use of renewable fuels SUSTAINABILITY EFFICIENCY 6 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX MATERIALITY ANALYSIS Finnair updated its materiality analysis The identified corporate responsibility for corporate responsibility in 2018 in aspects were assigned priorities based accordance with the reporting principles on their business impact and stakeholder of GRI 101 Foundation Standard. The mate- interest. The results of the prioritisation riality analysis was used to identify the were reviewed with the representatives of key economic, environmental and social key stakeholders. Finnair’s Executive Board impacts in Finnair’s value chain as well as and Board of Directors approved the results impacts on business and stakeholder deci- of the materiality analysis. sion making. The material aspects defined as a result of The materiality analysis was based on the materiality analysis were grouped under identifying corporate responsibility issues four themes. This analysis was also used as emerging from Finnair’s business envi- the basis for reporting for 2018. Finnair’s ronment through an analysis of industry sustainability themes, focus areas, mate- trends, legislation, corporate responsi- rial aspects, and related GRI standards and bility reporting guidelines, the reporting of boundaries can be found in the table below. peer companies and issues highlighted by Specific GRI disclosures for the material various stakeholders. topics can be found in the GRI content index. 7 SUSTAINABILITY REPORT 2018 RESPONSIBLE FINNAIR CLEANER CARING COLLABORATIVE ANNEX FOCUS AREA MATERIAL TOPICS GRI TOPICS TOPIC BOUNDARIES ETHICAL BUSINESS AND RESPONSIBLE SOURCING Ethical business and responsible sourcing • Code of Conduct • Ethics and integrity Finnair’s own operations, partners and • Environmental compliance supply chain • Socioeconomic compliance • Anti-corruption and bribery • Anti-corruption • Compliance with anti-competition regulations • Anti-competitive behavior • Supply chain sustainability • Supplier social assessment • Human rights assessment CLEANER Energy • Fuel efficiency • Energy Finnair’s own operations and indirect impacts on greenhouse gas emissions (Scope 3) and Noise and biodiversity • Biodiversity • Biodiversity biodiversity Emissions • Climate change mitigation • Emissions • Renewable fuels Waste • Eliminating plastics • Effluents and waste • Recycling of