Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer service and satisfaction
• Environmental impact
• Employee well-being and community
• Profitable business and good governance

Environmental Achievements

• Reduced greenhouse gas emissions from own operations (Scope 1 & 2) by 84% to 52 tCO2e
• Introduced cardboard boxes made from 100% recycled material
• Achieved 83% waste recycling rate
• Recycled 271 tons of e-waste

Social Achievements

• Reduced product return rate to 0.7%
• Launched a new employee survey showing improved well-being and high willingness to recommend
• Invested in corporate and learning culture, coaching, wellbeing and occupational safety
• Launched diversity work and a Diversity Working Group

Governance Achievements

• No deviations from the Securities Market Association’s Corporate Governance Code
• No corruption-related cases, lawsuits, or investigations
• Implemented the training on the online training portal for Code of Conduct and data security and privacy policies (92% completion rate)

Climate Goals & Targets

Environmental Challenges

• Weaknesses in managing social or environmental responsibility in the value chain
• Risks related to conflict minerals
• Anti-corruption and anti-bribery risks
• Product safety risks
• Information security risks
• Climate change transition and physical risks
• Changing consumer behavior towards sustainable consumption

Mitigation Strategies

• Implementation of amfori BSCI sustainability practices and 100% audit requirement for private label suppliers
• Revised Supplier Code of Conduct
• Annual departmental risk assessments
• Development of specific guidelines to ensure proper wholesale and travel sales
• Development of a business model and plan to commercialize lifecycle services promoting circular economy
• Improved product information on energy consumption and power, and purchase guides for energy-efficient products
• After-sales marketing to extend product lifetime
• Investing in energy efficiency and promoting renewable energy sources

Supply Chain Management

Supplier Audits: 98% of tier 1 suppliers in high-risk countries had an approved social responsibility audit

Responsible Procurement

• Supplier Code of Conduct incorporating amfori BSCI Code of Conduct
• Sustainability requirements integrated into contract negotiations
• Amfori BSCI audits required for private label suppliers in high-risk countries

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions in the logistics chain due to extreme weather events

Transition Risks

• Increasing regulation requiring changes to business operations and reporting
• Changing consumer behavior towards sustainable consumption

Opportunities

• Value-added services promoting sustainable consumption and circular economy
• New products and e-commerce functionalities

Reporting Standards

Frameworks Used: GRI Standards 2016-2021, EU Directive on the disclosure of non-financial information, Finnish Accounting Act

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Refurbished computers

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• At the customer’s service and on their side
• Smaller environmental impact
• Verkkokauppa.com as a community
• Profitable business and good governance

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 & 2) by -77% compared to 2019 (though increased by 45% from the previous year)
• Reduced indirect climate impacts (Scope 3) by -16% from the previous year
• Improved waste recycling rate (though decreased from the previous year due to decreased incoming goods)
• Expanded the range of used products

Social Achievements

• Launched a trade-in service for consumers promoting circular economy
• Launched a buyback service for business customers
• 100% of tier 1 suppliers in high-risk countries had a valid social responsibility audit (though 99.8% is reported)
• 100% of established suppliers signed the Supplier Compliance Policy

Governance Achievements

• 93% of personnel completed annual Code of Conduct training
• No deviations from the Securities Market Association’s Corporate Governance Code
• 100% of management team members trained in risk management
• 93% of personnel completed annual data security and privacy training

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions (Scope 1 & 2) increased by 45% from the previous year, despite long-term reduction
• Progress on reducing indirect climate impacts (Scope 3) slower than expected
• Decrease in waste recycling rate due to decreased incoming goods
• Change negotiations negatively affected employee engagement

Mitigation Strategies

• Developing an emission reduction plan (Scope 3)
• Developing data collection for reliable monitoring of recycled material in postal packaging
• Renewed and piloted the target discussion model Kipinä
• Organized workshops related to the Syke employee engagement survey
• Reopened the management program Soihtu and organized other trainings for supervisors

Supply Chain Management

Supplier Audits: 100% of tier 1 suppliers in high-risk countries

Responsible Procurement

• Supplier Compliance Policy
• Supplier Code of Conduct incorporated in general terms and conditions

Climate-Related Risks & Opportunities