September 2015 1 CSR AUDIT TABLE OF CONTENTS SUSTAINABILITY-DEFINITIONS ................................................................................................................................... 3 A NOTE FROM THE CEO ..................................................................................................................................................4 RELEVANT TOPICS ............................................................................................................................................................. 5 HELSINKI CAPITAL PARTNERS IN BRIEF ............................................................................................................... 7 Products and Services ............................................................................................................................................................. 7 GRI G4 GENERAL AND SPECIFIC STANDARD DISCLOSURES ...................................................................8 Defining The Report Content ................................................................................................................................................8 Relevant Topics and Aspect materiality ...........................................................................................................................8 The Principles of GRI-reporting ...........................................................................................................................................9 Supply Chain of the Company ..............................................................................................................................................9 Memberships of associations ................................................................................................................................................9 Entities Included in the Consolidated Financial Statements .................................................................................. 10 Product and Service Labeling ............................................................................................................................................. 10 Values and codes of ethics .....................................................................................................................................................11 Precautionary Approach .........................................................................................................................................................11 The Environment ........................................................................................................................................................................11 Disclosure on Management Approach ..............................................................................................................................11 ASPECTS ..................................................................................................................................................................................12 Aspect Materiality .....................................................................................................................................................................12 Aspects - Scope of the Specific Standard Disclosures ............................................................................................ 14 Specific Standard Disclosures ................................................................................................................................... 15 STAKEHOLDER GROUPS AND ENGAGEMENT ..................................................................................................17 Stakeholder Group - Partner Groups ................................................................................................................................17 Private Investors .............................................................................................................................................................17 Institutions ....................................................................................................................................................................... 18 Professional Athletes .................................................................................................................................................... 18 Artists ................................................................................................................................................................................ 18 Entrepreneurs ................................................................................................................................................................. 18 Stakeholder Group - Workforce and Owners ............................................................................................................... 18 Summer Trainee Program ........................................................................................................................................... 19 2 Labor/Management Relations .................................................................................................................................. 20 Stakeholder Group - Client Money Invested by HCP ................................................................................................ 20 SRI – Socially Responsible Investing ...................................................................................................................... 20 Breakdown of Revenue from Investing Client Money ....................................................................................... 21 Economic Value Generated and Distributed ....................................................................................................... 22 Indirect Economic Impacts ....................................................................................................................................... 23 Stakeholder Group - #HCPSPIRIT, Social Collaboration ......................................................................................... 24 Corporate Social Responsibility .............................................................................................................................. 24 Culture and art .............................................................................................................................................................. 25 Communities and Projects ........................................................................................................................................ 25 ABOUT THIS REPORT .....................................................................................................................................................27 GRI CONTEXT INDEX, “IN ACCORDANCE” – CORE ...................................................................................... 28 General Standard Disclosures ............................................................................................................................................ 28 Specific Standard Disclosures ............................................................................................................................................ 30 SUSTAINABILITY-DEFINITIONS CSR – Corporate Social Responsibility ESG – Environmental, Social, and Governance GRI - Global Reporting Initiative GRI G4 – GRI G4-Sustainability Reporting Guidelines General Standard Disclosures – Disclosures required by GRI G4 Specific Standard Disclosures – Disclosures of relevant topics and material Aspects of GRI G4 SRI - Socially Responsible Investing Workforce: Employee – Person with HCP contract of employment Supervised Worker – Person without any specific contract of employment AUM – Assets Under Management HCP - Helsinki Capital Partners #HCPSPIRIT – Social collaboration Aspect – Feature or characteristic of business Aspect Materiality – The relevance of feature or characteristic of business 3 A NOTE FROM THE CEO Our clients enjoyed good returns on their investments in 2014; HCP Black 14.05%, HCP Quant 0.66% (from the end of June), and HCP Focus 10.01%. We gained over 700 new clients during the year. The amount of assets under management (AUM) in wealth management and in our funds was 56 (2013: 35) million euros at the turn of the year. The annual growth rate was 58% (2013 85%). The second profitable year for HCP group is now behind. Growth has continued profitable and the growth rate is good. In the end the biggest achievement is the clientele, the team and those we co-operate with. We are in this business together, and I believe that neither the clients nor the team or those with whom we co-operate with are in this for quick profits, but to patiently and safely build value and wealth. The strong shared values and the feeling of meaning in what we do together steers strongly the opera- tions and through that we gain a sound and strong identity. Helsinki September 2015 Tommi Kemppainen Chief Executive Officer 4 RELEVANT TOPICS The following seven relevant topics were considered when defining the report content. 1. A more responsible financial industry – The financial industry has come under a lot of crit- icism lately. Unfortunately, a significant portion of this criticism is warranted. HCP hopes to set an example to industry peers; nothing changes if everyone continues to do business with the same old values, methods, and codes of conduct. Someone must take the first step and lead the way. HCP does