Sustainability Report | 2016 Content About Mirka 3 Global Mirka 4 An overview by our CEO 5 The Mirka Way 6 Success Driven by People 8 Clean Partner 10 Clean Proactivity 12 Clean Production 14 Clean Performance 23 Content Index 26 ABOUT MIRKA an Pe Cle rform a n n o ce ti c u d o r P n a e l C C le y a it n iv Mirka Ltd is a global company and part of the family owned KWH Group Ltd. t Mirka’s business idea is to off er world leading comprehensive surface fi nishing Pa ac solutions. Our business focuses on our customers’ needs. Continuous improvements rt ro of our operations, our expertise and our work with our customers help us to off er ne n P tailored systems and commercial comprehensive solutions that are supported by r Clea a wide range of technically superior abrasives and polishing products as well as innovatively designed tools. Approximately 96% of Mirka’s production is Clean commitments exported, with products being sold in over Our Clean 100 countries. Mirka’s business areas are For more than 70 years, our brand Commitments focused on the automotive, wood and has paved the way for technical boat industry, and the company’s typical breakthroughs in surface fi nishing, and customers include manufacturers of wood we continue shaping the industry with In this Sustainability Report, products, car body shops and repair shops our expertise. We follow our company we have compiled our economic, and automotive manufacturers and sub- values by being responsible, committed, environmental and social initiatives contractors. Mirka’s products and services innovative and respectful. We off er our and achievements under “Our Clean also serve the construction and renovation customers sustainable solutions that Commitments”. Under these topics, industry and the composite industry. consider the fi nancial, health, technical we describe the development of Mirka’s latest innovations also include glass and environmental aspects. our corporate sustainability sanding and microfi nishing solutions. transparently with various KPIs. MIRKA SUSTAINABILITY REPORT | 3 GLOBAL MIRKA Subsidiaries Mirka Brasil Ltda. (Brazil) Mirka Canada Inc (Canada) Mirka Trading Shanghai Co., Ltd. (China) Mirka France Sarl (France) Mirka GmbH (Germany) Sales offi ces Mirka (UK) Ltd (United Kingdom) Denmark, Norway, Estonia and Belgium Mirka India Pvt Ltd (India) Mirka Italy s.r.l. (Italy) Markets served KWH Mirka Mexicana, S.A. de C.V. (Mexico) Mirka Rus LLC (Russia) All Mirka’s subsidiaries, production facilities and Mirka Scandinavia AB (Scandinavia) Parent company KWH Group Ltd Vasa, Finland sales offi ces are fully owned by Mirka Ltd. Mirka’s 16th Mirka Asia Pacifi c Pte Ltd (Singapore) Our most well-known brands Head offi ce Mirka Ltd Jeppo, Finland subsidiary, Mirka Middle East FZCO, was established KWH Mirka Ibérica S.A.U. (Spain) Production facilities in December 2016. The subsidiary is headquartered Mirka Turkey Zımpara Ltd Şirketi (Turkey) Abranet®, Autonet®, Abralon®, Mirka® DEROS, Finland (Jeppo, Oravais, Karis and Jakobstad) in Dubai, and it strengthens Mirka’s presence in the Mirka USA Inc. (USA) Mirka® CEROS, Gold, Mirlon Total®, Polarshine®, Belgium (Opglabbeek) entire Middle East region. Mirka Middle East FZCO (United Arab Emirates) Q.Silver®, Net by Mirka and Dust-free sanding MIRKA SUSTAINABILITY REPORT | 4 AN OVERVIEW BY OUR CEO Responsibility is part of Mirka’s identity and during 2016. Growth is rapid, particularly be involved in developing our customers’ a natural part of our business operations. in the EMEA area (Europe, the Middle East working environments, by off ering innovative Through ongoing development of our and Africa), which accounts of almost 65% and comprehensive dust-free sanding operations we are able to off er our customers of Mirka’s global turnover. In other market solutions and ergonomically designed innovative and comprehensive solutions for areas Mirka’s turnover has remained stable. sanders. Our expanding range of electric surface fi nishing, taking into consideration In addition to the EMEA area, in the coming sanders off ers new opportunities in this the environment, social responsibility and years we are set to invest in growth in the area, with both effi ciency and customers’ economic viability. Our mission states that Middle East in particular, where we opened occupational wellbeing being key factors in we want to give people the opportunity to a new subsidiary in late 2016. the design of the products. perform better. As markets globalise further, responsibility We also aim to continually enhance our The objective of Mirka’s business strategy is is growing in importance. It is particularly environmental responsibility by shifting long-term, profi table growth, which will also notable that working environment to more environmentally friendly forms of allow us to ensure sustainable development. and occupational safety perspectives, energy and raw materials. More details about Our vision is to achieve a market position alongside the signifi cance of environmental these and other projects that contributed to where customers and stakeholders see us responsibility, are being emphasised to a our responsible operations during 2015–2016 as a market leader and the most responsible growing extent in all collaboration with are provided in this Sustainability Report. company, driving innovation in our core stakeholders. Corporate responsibility is a business sectors. competitive advantage for us at Mirka, and due to this, we want to work proactively on In recent years, Mirka’s operations have been corporate responsibility and stand out as characterised by strong international growth. a pioneer of sustainable development in However, rapid growth and geographically our sector. In recent years we have invested concentrated production also bring about particularly in further development of their own business challenges. Despite the occupational health and safety, and we challenging and unstable global market are aiming for zero workplace accidents Stefan Sjöberg situation, Mirka expanded its market share throughout all of our units. We also want to Mirka Ltd MIRKA SUSTAINABILITY REPORT | 5 THE MIRKA WAY Our Company Culture Our Vision Our organisation At Mirka we understand that every job has ”We wish to reach a market position, Mirka’s long-term group strategy serves as the basis for the group’s comprehensive business its own unique requirements, which is why where customers and interested plan, which is drawn up annually and approved by Mirka’s Management Team and the Board we work closely with customers to provide parties see us as a market leader of Directors. All business and factory units are involved in drawing up the business plan. tailored solutions that precisely meet their and the most responsible company Department-level goals are set based on the business plan. needs. who drives innovation in our core business sectors.” After gaining a clear understanding of Parent company KWH Group Ltd exactly what each customer requires, our Our Mission technical customer support specialists Our company Mirka Ltd recommend high-quality products, ”We want to give people the processes, and training that ensure that opportunity to perform better.” successful results can be achieved at MIRKA LTD BOARD OF DIRECTORS every step of the operation. Our Values Chairman: CEO of KWH Group Ltd CEO of Mirka Ltd 3 shareholder members Sustainability is built into The Mirka Way. Responsible 2 independent members When the system is set up with all of the For all results & resources. right parts and customers have all the Ethical business practice. 16 subsidiaries information needed to get great results, Structured and well organised. MIRKA LTD MANAGEMENT TEAM then their work is more sustainable. Cost-aware. CEO R&D Director SUBSIDIARIES’ BOARDS OF DIRECTORS Committed Chief Financial Offi cer Chairman: Mirka Ltd’s Sales Director Keep our promises. Production Director Mirka Ltd’s CEO Close to the customer. Marketing Director Mirka Ltd’s Chief Financial Offi cer Managing Director of the subsidiary Dedicated to high performance. Quality Manager Regional Manager Passionate people. Sales Director Logistics Director Employee representative All our 16 subsidiaries are Innovative Business Development Director 100 % owned by Mirka Ltd. Open to new ideas. Continuously seeks to improve. We create solutions that are good for us, our customers and society as a whole. EXTERNAL AUDITORS for the subsidiaries are appointed Respectful by Mirka Ltd Every individual is valuable and can contribute. Open work environment. Warm and genuine. Fair. MIRKA SUSTAINABILITY REPORT | 6 THE MIRKA WAY MIRKA SUSTAINABILITY REPORT | 7 SUCCESS DRIVEN BY PEOPLE Committed, motivated and professional personnel have enabled Mirka to expand its operations and grow strongly in the market. Low staff turnover is characteristic of Mirka, and creates a competitive advantage in the market and provides a solid foundation for future development. That is why we want to make comprehensive investments in personnel well-being and training. Participatory HR policy motivation and maintaining a safe and com- the job satisfaction is high and the employees fortable working environment. The Success are proud to work at Mirka. The survey has Mirka’s HR programme “Success Driven by Driven by People programme currently served as the basis for department-specific People” comprises Mirka’s HR policy and applies to Mirka’s personnel in Finland, action and follow up plans. its practical implementation. The Success but the