Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental impacts of production
• Personnel
• Products
• Responsible Code of Conduct

Environmental Achievements

• Group-level Scope 1 CO2 emissions were 1,269 tCO2 (248) and Scope 2 CO2 emissions 1,292 tCO2 (1,771).
• Share of renewable electricity in the Harvia Group was 51 percent (57) in 2021.
• All the electricity used at the Muurame factory is from renewable sources. A part of it is produced by the factory’s solar panels.
• In Finland, Harvia uses only PEFC- or FSC-certified wood. Starting from 2021, Domo Wellness from Romania has been using only wood with FSC- certificate.
• The stainless steel supplier in Finland is Outokumpu Plc, whose product is manufactured with over 90% recycled steel.

Social Achievements

• No serious occupational accidents occurred involving Harvia’s personnel in 2021.
• Employee Survey showed that the personnel are highly committed to the company and value the company’s agility and effectiveness.
• Gender equality is well implemented in the company, and employees of different ages are treated equally.

Governance Achievements

• All members of the Board of Directors are independent of the company and its major shareholders.
• The Board of Directors assesses its operations and ways of working annually as an internal self-assessment.
• In 2021, the Audit Committee convened seven times.

Climate Goals & Targets

Environmental Challenges

• Challenges brought on by the pandemic to Harvia’s business were still somewhat evident also in 2021, especially in all of the professional categories and in Southern Europe, Russia, the Arab countries, and Asia.
• Lockdowns and travel restrictions made new market entries challenging.
• Exceptional volatility in the availability of raw materials and key componentry as well as climbing prices in 2021, with up to 100 percent price increases for some components.
• Freight from Asia to Europe and North America and from Europe to the United States faced unprecedented challenges.

Mitigation Strategies

• Deliberately increased inventories of critical raw materials and componentry as well as ready-made goods.
• Developed multiple sourcing strategy.
• Sought alternative solutions for freight.
• Increased buffer stocks of critical raw materials and componentry.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Harvia Supplier and Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol (GHG)

Certifications: PEFC, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Harvia Linear 22 GreenFlame
• Harvia Variant View indoor sauna cabins
• MyHarvia app
• Kirami FinVision sauna
• Harvia Legend electric heater
• EOS Spa Control App

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product safety and quality
• Climate change and GHG emissions
• Sustainable supply chain and responsible sourcing
• Sustainable materials and product lifecycle
• Employee safety, well-being & equal opportunities
• Innovation
• Health benefits of sauna

Environmental Achievements

• Total emissions decreased by 11.4% compared to 2022. Group-level Scope 1 CO₂ emissions in 2023 were 998 tCO₂ and Scope 2 emissions 745 tCO₂.
• Share of emission-free electricity was 75% in 2023.
• Solar panels installed on the roof of the Muurame factory produced 124.3 MWh of electric energy.

Social Achievements

• Employee Engagement Survey conducted with 66% response rate.
• No serious occupational accidents during the reporting period.
• Customer satisfaction survey conducted with 14% response rate, average Net Promoter Score (NPS) was 69.

Governance Achievements

• Double materiality assessment conducted to identify significant sustainability topics.
• New organizational structure implemented as of 1 January 2024.
• Preparation for upcoming EU regulations on sustainability reporting (CSRD).

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions in Europe due to the Russian invasion of Ukraine, high economic uncertainty, elevated inflation and interest rates, and eroded consumer confidence.
• Weak market demand in Finland and Scandinavia due to high interest rates, challenges in the construction sector, and weak consumer confidence.
• Fluctuations in demand resulting in a relatively short-term order book.

Mitigation Strategies

• Adapting the supply chain and implementing flexible working time models to respond to demand volatility.
• Decreasing inventories without compromising on service level.
• Developing sales and operations planning (S&OP) process for accurate sales and demand forecasts.
• Streamlining supply chain management and strengthening integration between Group companies.
• Increasing automation in factories in Muurame and the United States.

Supply Chain Management

Supplier Audits: 74% of existing suppliers have agreed to comply with the Harvia Supplier and Partner Code of Conduct.

Responsible Procurement

• Harvia Supplier and Partner Code of Conduct (ethics, corruption, labor force, health and safety, environment)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EU Taxonomy Regulation, CSRD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient sauna heaters, recyclable materials

Awards & Recognition

• Not disclosed