Sustainability Report | 2014 MIRKA SUSTAINABILITY REPORT | 1 INDEX About Mirka 3 A Message from our CEO 5 Highlights from 2014 6 The Mirka Way 7 Success Driven by People 8 Clean Partner 10 Clean Proactivity 14 Clean Production 15 Clean Performance 24 GRI Content Index 27 About Mirka Corporate Responsibility Our Clean Commitments Our financial, environmental and social initiatives, combined with our willingness to invest in continual improvement and Our business is focused on providing the innovation, show our commitment to being best surface finishing preparation tools an industry leader in sustainability. and systems to customers. To be the most sustainable finishing systems provider, we For people working at Mirka, it has always been are digging deep down to the core of our clear that we should not waste financial or company to figure out what it really means material resources – either our own or those of to be sustainable. We have accomplished our customers. We feel it is equally important to a great deal already and have many more preserve the planet’s resources. Sustainability is initiatives we will take on in the future. On a natural extension of this approach. It means the following pages, under each of our Clean KWH Mirka Ltd is a global company net abrasives, electric sanders, polishing taking the economy, the earth, and people Commitments, descriptions and data are that specializes in advanced surface compounds and complete dust-free sanding into consideration when we make business provided about our sustainability initiatives finishing technologies. We offer a systems. decisions – now and for future generations. and performance to date. wide range of high-quality abrasives, an Pe innovatively designed tools and Our Company We are continuously looking for opportunities Cle rform a polishing compounds as well as to reduce our environmental footprint – this n n o ce accessories and complete sanding We are part of the family-owned KWH aligns with our company values and also cuts ti c solutions. Our philosophy that guides Group and are one of the world’s largest costs. We have worked hard to conserve energy u d everything we do is: A job well done! manufacturers of coated abrasives. We and raw materials, reduce waste, increase o r P provide employment in Finland for over 660 recycling, and decrease the use of persistent Our History people at our corporate headquarters and chemicals. We are developing healthier, safer, n a e Mirka was founded in 1943 in Helsinki four production sites. 95% of our products are and more efficient products and processes so l C by Finnish engineer Onni Aulo. Engineer exported and sold across the globe through that our customers and employees will benefit. Aulo met the challenge of starting a new our 15 subsidiaries and a large network of For example, our dust-free sanding systems company during the war and successfully long-term partnerships with importers and help protect the lungs of workers while giving C began production in 1946. Over the years, distributors. They provide technical and sales a cleaner and better surface finish. le y a it our business has changed many times in support to our customers in more than 100 n iv t response to market needs. countries on four continents. We think we can make even greater positive Pa ac rtn ro impact towards sustainability by sharing er an P In 1962, we moved to the small village of Our products and systems are designed for what we do through communication and Cle Jeppo on the west coast of Finland, where professional users in the following industries: collaboration. We work hard to inspire our headquarters and production facilities are automotive manufacturing and refinishing, sustainability throughout our supply chain still located today. Since then, our company wood and furniture, construction and and our communities. and product lines have expanded rapidly. Our renovation and composite processing. business focus has evolved from manufacturing sandpaper to highly innovative, patented MIRKA SUSTAINABILITY REPORT | 3 ABOUT MIRKA Mirka Global OUR GLOBAL REACH OUR BEST-KNOWN BRANDS Corporate Headquarters Jeppo, Finland Abranet®, Autonet®, Abralon®, Mirka® DEROS, Manufacturing Sites Jeppo, Oravais, Karjaa, Jakobstad – all in Finland Mirka® CEROS, Gold, Mirlon Total®, Subsidiaries Brazil, Canada, China, France, Germany, India, Polarshine®, Q.Silver®, Net by Mirka and Italy, Mexico, Russia, Singapore, Spain, Sweden, Turkey , UK and USA Dust-free sanding Branch Offices Denmark, Norway, Estonia and Belgium Markets Served MIRKA SUSTAINABILITY REPORT | 4 A MESSAGE FROM OUR CEO At Mirka, we are clear about our future. We want our customers and the public to recognise our position as a market leader – the most innovative and responsible company in the industries where we do business. Our goal is to provide our customers with The benefit will be continued economic experiencing a recession, which presents innovative products and solutions that sustainability and growth. challenges for South American sales. Asia is achieve outstanding results in the surface a fast-growing market area, especially the finishing marketing segment. For our workforce, our approach to social Indian and Chinese market. sustainability includes offering health and As a company, we can achieve our goal by safety training, professional development Moving forward, our goal is to achieve being ambitious, lean, and flexible. Each year, programmes, and performance reviews. steady double-digit growth in current and we carefully analyse customer feedback, Our goal is to give our co-workers as many new markets. This allows us to invest more review our policies, and study the market. opportunities as possible to realise their full in sustainability initiatives and to develop Then, we make adjustments based on what potential. breakthrough technologies that address we learn to stay in tune with market trends customer challenges and needs. and customer needs. Our main business challenge is market uncertainty – economic forecasts predict We have made excellent progress with our How does sustainability fit in? It fits perfectly. continued recession in some of our major sustainability work, since we launched our markets. initiatives in our first report from 2012. Changing conditions inspire us to improve We have realised that it is important and grow our business. We see that our In spite of uncertainty in the market due to communicate our activities and customers are as interested in sustainability to the continued flat development of the accomplishments publicly. The results can as we are. This is why our product European economies, fluctuating exchange be found in this second biennial Global development is focused on innovating the rates and increased geopolitical tensions, Reporting Initiative (GRI)* sustainability best sustainable products and solutions, 2014 was a very strong year for Mirka. Sales report, which I take great pride in presenting while continually improving our own grew by 9 % in 2014 and by 8 % in 2013. to you. environmental performance. Mirka’s growth was good in all markets and We are partnering even more with suppliers, continues according to plan in the EMEA neighbouring businesses, and customers area (Europe, Middle East and Africa). In North to develop both environmental and social America, we have strong growth and we are Stefan Sjöberg sustainability throughout our supply chain. increasing our market share. Brazil is currently KWH Mirka Ltd * The Global Reporting Initiative (GRI) is a non-profit organisation based in Amsterdam that has developed one of the world’s most recognised standards for sustainability reporting. MIRKA SUSTAINABILITY REPORT | 5 Highlights from 2014 Our initiatives address all three aspects of sustainability – economic, social, and environmental. They show our strategic and balanced business approach. Zero Accidents Product Launches Distribution Efficiency in Europe The “Zero Accidents” vision is a part of We introduced the new Star generation, Mirka’s sustainability efforts and some a platform of high-technology flexible Our distribution centers are close to of the factories have already attained film abrasives. The new coating our customers and are under constant the requirements for zero accidents. A technology has low VOC emissions development. Deliveries to the EU development project together with the and the production process is energy countries in the Balkan area are now Finnish Institute of Occupational Health efficient. shipped from our European distribution was completed during 2014, and the The first new products in the center in Belgium to shorten delivery effort proved to be exactly what was microfinishing business area have times and increase flexibility. All our needed for all factories to achieve the been introduced to the market. A deliveries to Italy are now also shipped goal in the long term. complete family of new microfilm rolls from the our Belgian distribution for precision sanding of challenging center. surfaces in the engine and electronics industries. ® New Production Line Bioenergy and Biogas Mirka DEROS Investment Partnerships Product Awards The biggest investment during 2014, Using bioenergy combined with Our Mirka DEROS electric sander, which was the project to build a new hall for biomass energy makes perfect sense we developed in-house, received two an additional new production line at for us. The bioenergy plant has been awards in 2014: the IF Product Design our main production site in Jeppo. fully operational since January 2014. Award and the Red Dot Industrial The new hall is 4740 m2 and will house We are also replacing propane with Design Award. a new production line, further biogas from a local supplier in the Its low weight and excellent processing lines and facilities for neighborhood. ergonomic features make Mirka DEROS logistics and shipping. The new unique to the market. Mirka DEROS also production line will incorporate plays an important part in our dust-free completely new technology, being systems. All Mirka DEROS sanders are an effective high capacity line and assembled and quality controlled at our at the same time energy-saving.