Climate Change Data

Environmental Metrics

ESG Focus Areas

• Animal Welfare
• Environmental Responsibility
• Social Responsibility
• Economic Responsibility
• Supply Chain Transparency

Environmental Achievements

• Optimized Fur Center ventilation system, reducing energy consumption.
• Implemented lighting controls in some warehouse areas, automatically turning off lights after work hours.
• Reduced water usage in warehouse humidification systems.
• Initiated biowaste sorting (December 1, 2008).

Social Achievements

• Employs individuals from 23 different nationalities.
• Participated in a church campaign emphasizing respect for diversity in the workplace.
• Employed a developmentally disabled kitchen assistant.
• Supports fur farmer training programs at Keski-Pohjanmaan Maaseutuopisto and Svenska yrkesinstitutet.
• Collaborates with the University of Art and Design Helsinki to increase interest in fur materials among young designers.
• Supports youth sports in Finland.

Governance Achievements

• Joined the UN Global Compact Initiative (October 2008).
• Implemented a year-end bonus system for all permanent employees (and some temporary employees after a certain period of service), based on fur collection results and company profit.

Climate Goals & Targets

Environmental Challenges

• Weakening US dollar impacting euro-denominated fur prices.
• Unsatisfactory price level for blue fox furs despite production reduction.
• Shifting fur markets towards the East.
• Lack of familiarity with the industry among new customers in the textile industry.
• Political challenges in Europe regarding fur farming regulations (Netherlands, Denmark).
• High import tariffs on furs in China.
• Difficulties in exporting to Russia due to discrepancies in export documentation.
• Negative portrayal of the fur industry by animal rights organizations.
• Fluctuations in fur prices and demand.
• Concentration of fur production in larger units.
• Global economic crisis impacting fur demand.

Mitigation Strategies

• Continued development of incentive programs for Finnish fur farmers.
• Expansion of certification bonuses to include mink furs.
• Strengthening collaboration with the International Fur Trade Federation (IFTF) and the European Fur Breeders' Association (EFBA) to address political challenges.
• Active engagement with Finnish politicians and authorities to address trade barriers.
• Promoting fur farm certification to improve industry image.
• Long-term goal of granting the Saga® trademark only to furs from certified farms.
• Implementation of an additional fur auction in January 2009 to better serve customer needs.
• Hedging currency risk with currency derivatives.
• Active monitoring of receivables and negotiation of payment plans with customers.
• Seeking additional collateral from suppliers and adjusting pre-financing to mitigate risks associated with pre-financing.
• Managing energy price risk through commercial electricity supply contracts and electricity derivatives.

Supply Chain Management

Responsible Procurement

• Origin Assured (OA) program ensuring furs are produced in countries with national fur animal welfare legislation.
• Saga Traceability System for tracking furs back to the farm.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Ethical fur production
• Animal welfare
• Quality and traceability of pelts

Environmental Achievements

• Not disclosed

Social Achievements

• Further developed incentive schemes for Finnish producer clients based on fur farm certification system.
• Starting from the 2009/2010 selling season, only certified Finnraccoon pelts are sold in the SAGA assortments.

Governance Achievements

• New bylaws adopted in November 2008 expanded the membership of the Saga Furs cooperative. Changes to Saga marketing fee reduced Saga costs.

Climate Goals & Targets

Environmental Challenges

• Weakened price level and reduction in the number of pelts offered, resulting in a 24% decrease in sales.
• International financial crisis impacting purchases from Russia and Italy.
• Customer credit losses of MEUR 1.1 due to economic difficulties in Russia.

Mitigation Strategies

• New four-year collaboration agreement with Norwegian auction company Oslo Skinnauksjoner SL.
• Growth of the Hong Kong/China market partly replaced reduced purchases from other markets.
• Long-term development programme for making business operations more efficient and managing costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fur farm certification system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Animal welfare
• Traceability
• Certified production
• Financial profitability and tax footprint
• Good human resources management
• Greenhouse gases and emissions into soil
• Open communication
• Saga® trademarks
• Product development
• Value chain management

Environmental Achievements

• Precision feeding enabling reduction in manure produced by fur animals and promotion of animal welfare
• Research and development projects underway to increase manure recycling

Social Achievements

• Work capacity coaching program in physically demanding departments, resulting in fewer absences and increased productivity
• Employee benefits exceeding statutory levels (e.g., Saturdays not included in annual holiday count)

Governance Achievements

• Compliance with Finnish Corporate Governance Code for listed companies
• Annual CSR report reviewed by the Board of Directors
• Improved reporting based on DNV GL feedback

Climate Goals & Targets

Environmental Challenges

• Economic challenges in main market areas negatively impacting pelt prices
• Political climate and image risks associated with the fur trade
• Critical attitudes toward fur farming in some countries (Norway, Poland, Netherlands)
• Challenges in managing the dressing of furs (environmental impact and traceability)
• Sufficiency and price of feed materials

Mitigation Strategies

• Focus on quality pelts to maintain profitability
• Commitment to promoting truthful information about the industry
• Welfur project for improving fur animal wellbeing
• Finnish farm certification system and Saga Traceability System
• Co-operation with DNV GL on producer assessments in other countries
• Product development to find more ecological dressing methods
• Precision feeding to optimize animal nutrition and reduce environmental emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Farm certification program (ProFur, Saga, Farmsert)
• Saga Traceability System
• Terms and Conditions requiring compliance with Council of Europe recommendations or equivalent regulations

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 9001 (target for fur farms)

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Animal welfare
• Sustainable fur production

Environmental Achievements

• Not disclosed

Social Achievements

• Continued WelFur assessments measuring animal well-being; Fur Vision events reached a large number of fashion professionals; established a training program at Haining university campus in China to teach fur craftsmanship and innovation; established a pelting center in the US with local producers.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Oversupply of pelts leading to decreased prices; large inventories of unsold garments in China; uncertain market situation impairing customer access to financing; image-related challenges in Western markets; slowing Chinese economy; tensions between China and the US; rising customs duties; overproduction of mink pelts impacting profitability.

Mitigation Strategies

• Continued implementation of strategy focused on maximizing producer value, ensuring demand for Finnish fur, sustainable production, and digitalization; operational program to develop Finnish sustainable fur production; collaboration with Canadian auction company; expansion of international partner network; years-long work towards sustainable fur farming and collaboration with international fashion houses.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• WelFur assessments for farm certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IAS 34 Interim Financial Reporting

Certifications: WelFur

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Animal Welfare

Social Achievements

• Required WelFur certification for all European farms supplying pelts.
• Started a project to create a comprehensive corporate responsibility program integrated with the business.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic significantly impacted auction operations, turnover, and results.
• Travel and gathering restrictions prevented the March-April auction.
• Warm winter in main market areas weakened demand for pelts.
• Decreased demand for fur in the fashion industry.

Mitigation Strategies

• Organized the first online auction.
• Transferred over 2 million ungraded pelts to be sold in the next financial year.
• Started a comprehensive cost savings program.
• Negotiated on the adaptation of staff numbers.
• Temporarily laid off all group personnel for one month.

Supply Chain Management

Supplier Audits: All European farms supplying pelts must have met the assessments of the WelFur certification system.

Responsible Procurement

• WelFur certification required for European farms
• Farm certification program for fox and Finnraccoon pelts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact