SOCIAL RESPONSIBILITY REPORT 2019 BUSINESS FINLAND LEADERSHIP TEAM, 10.2.2020 BUSINESS FINLAND BOARD OF DIRECTORS, 25.2.2020 BUSINESS FINLAND OY BOARD OF DIRECTORS, 3.3.2020 Translated from the original Finnish version 2 CONTENTS 1. Review by the Director General .................................................. 3 5. Impact .................................................................................... 21 2. Managing social responsibility 5.1 The impact of our operations ................................................21 and key themes at Business Finland .............................................5 5.2 Sustainable development ........................................................23 3. Business Finland as an organization .........................................8 5.3 Finances .................................................................................24 3.1 Ownership structure and company form ...................................8 6. Business Finland’s own operations ........................................27 3.2. Significant changes and events in the organization ..............8 6.1 Personnel ...............................................................................27 3.3 Business sectors, brands, products, and services ..................9 6.2 Procurement ...........................................................................35 3.4 Size of the organization .......................................................... 11 6.3 Regional operations in Finland and abroad ..........................38 3.5 Governance .............................................................................12 6.4 Direct environmental impact of our operations .................... 40 3.6 Reporting practices ................................................................12 7. Clients and other stakeholders ................................................ 41 4. Business Finland’s operations as a responsible funder and provider of service functions ...................................................... 14 7.1 Clients ....................................................................................41 4.1 Corporate responsibility and governance .............................14 7.2 Other stakeholders ..................................................................45 4.2 Funding and expert services .................................................18 8. GRI content index ...................................................................47 4.3 Sustainable Travel Finland - Towards sustainable tourism ... 20 3 1. REVIEW BY THE DIRECTOR GENERAL 2019 was the second operating year for Business Finland succeed. The performance agreement that is prepared and at the same time, it was the time for stabilizing our with the Ministry of Economic Affairs and Employment operations. every year sets out the more specific targets. The target Business Finland’s mission is to create sustainable areas are social impact, operational efficiency, and the growth. We do this by helping industries to innovate and management and development of human resources. evolve through technology and innovation, by promoting Corporate governance and the Code of Conduct guide international networking and by improving the quality of Business Finland’s activities. Business Finland aims to working life. In addition, the aim is to increase the added prevent and reduce the harmful environmental impacts of value, strengthen business growth and international its operations and promote the sustainable use of natural competitiveness, increase exports and foreign investment resources. and venture capital investment, as well as tourism to Business Finland’s regional activities promote the Finland and, in the longer term, improve productivity and accessibility of its services and take into account of its create employment and well-being. clients’ needs and special characteristics, in Finland’s Business Finland’s strategy states that Business regions and around the world. Finland works for the benefit of Finland and Finnish In its program activities, Business Finland is committed society, and this goal is the starting point of our operations to taking into account the UN’s program for Sustainable and is reflected in everything we do. Development Goals (Sustainable Development Goals, Social responsibility is a key part of Business Finland’s SDG) which pays equal attention to the environment, operations, and it is managed as a part of everyday economy and people. The challenges of sustainable activities. Business Finland is making Finland the world’s development are socially significant and they offer new most attractive and competitive innovation environment, business opportunities for Finnish companies. where companies find it easy to grow, innovate, and Low-carbon approach, circular economy and resource 4 efficiency are the key drivers of growth and drivers of global demand. The capacity of Finnish companies to meet this demand needs to be improved. One of the focus areas of Business Finland’s program operations, also called as themes, is bio, circular economy and cleantech. Under this theme, there are a number of programs pursuing the goals of low-carbon, circular economy and resource efficiency. In order for the tourism industry to be able to respond to the changing demand and continue to grow, the development must be sustainable. To help the tourism industry in Finland to adopt sustainable practices, Visit Finland has developed a program and a label called Sustainable Travel Finland designed for tourism companies and destinations in Finland. The idea of the label Sustainable Travel Finland is to provide companies and destinations with a concrete toolkit for sustainable tourism that makes it easier to adopt sustainable practices and choices in the everyday business. For tourists the label is about the responsibility of the company. 5 2. MANAGING SOCIAL RESPONSIBILITY AND KEY THEMES AT BUSINESS FINLAND Business Finland discharges a service duty handed down Ministry of Economic Affairs and Employment every year by the Finnish state and assigned to it by law. For that sets out the targets for the forthcoming year, as well as reason, social responsibility is a key part of Business the indicators used to measure performance against the Finland’s operations, and it is managed as a part of targets. Business Finland reports on the achievement of everyday activities. Business Finland is making Finland these targets in the Funding Agency’s annual report. The the world’s most attractive and competitive innovation target areas are social impact, operational efficiency, and environment, where companies find it easy to grow, the management and development of human resources. regenerate, and succeed. Business Finland is working Same targets direct the social responsibility of Business for Finland. The performance agreement made with the Finland. 6 The key themes and main principles of Business Finland. The selection of topics also took into account Finland’s social responsibility have mainly remained the the feedback received from stakeholders concerning our same comparing to last year. The key themes and main operations. principles for social responsibility consist of four main The key themes and main principles in Business themes, each with related sub-areas. These four themes Finland’s social responsibility are listed below. constitute the core of Business Finland’s operations, and they are inextricably linked. None of the themes can be BUSINESS FINLAND OPERATES AS A RESPONSIBLE prioritized over the others. Business Finland’s strategy FUNDER AND PROVIDER OF SERVICE FUNCTIONS states that Business Finland works in the interests of Finland and Finnish society, and this can be considered Business Finland’s key client value is trust. Business the starting point for all of Business Finland’s activities. Finland complies with Finnish and EU legislation, as Finland also wants to be a responsible actor on the well as the laws and methods of the countries in which it international stage, and operating responsibly in Finland’s operates, good governance, and regulations on conflicts interests will also advance this goal. Operating in the of interest. The Code of Conduct guides Business interests of society requires responsible activities when Finland’s operations. Business Finland takes the UN’s funding and expert service are offered and in Business Sustainable Development Goals into consideration in Finland’s own operations. A good customer experience, its operations. Business Finland monitors the use of its meanwhile, is closely connected to a good employee funding and keeps track of the quality of its operations experience. Business Finland realizes its work in the through regular audits. Business Finland complies with interests of Finnish society through its clients, and it is the Act on the Openness of Government Activities, but it important that the work involves listening to clients. We restricts access to confidential data through operating also receive valuable feedback from our clients and other instructions and information system solutions. external stakeholders in order to develop our operations. The key themes and main principles are from Business BUSINESS FINLAND WORKS IN THE INTERESTS Finland’s strategy, and they were found to be important OF FINNISH SOCIETY in discussions by the leadership team and the Board of Directors. The key themes and their sub-areas were Business Finland works in Finland’s interests. Business defined in more detail in 2018 by interviewing the Finland creates