Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical conduct
• Good employer
• Good partner
• Environment
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions from travel by approximately 19,000 kg from 2013 due to video conferencing.
• Achieved 4.5 GWh of yearly electricity and heat energy savings through investments and adjustments to property automation.

Social Achievements

• 99% of Finnish personnel completed ethical operations training (92% in 2013).
• Improved employer image ranking in Universum surveys among technology students (from 31st to 23rd) and professionals (from 52nd to 26th).
• Personnel turnover reduced to 2.4% (from 2.9% in 2013).

Governance Achievements

• Implemented a new process for evaluating vendors'/subcontractors' economic situation and ethical practices.
• Signed the UN Global Compact initiative to combat corruption.
• District Court of Kanta-Häme dismissed all bribery charges related to the Slovenian export project (2006), although the State Prosecutor appealed.

Climate Goals & Targets

Environmental Challenges

• Reduction in the number of orders from the Finnish Defence Forces (FDF) leading to cooperation negotiations and redundancies.
• Difficult market situation leading to operational adaptations.
• Rise in absenteeism due to sickness (4.2% vs 3.9% in 2013).

Mitigation Strategies

• Reorganized operations to meet the requirements set by the defence reform.
• Sold the Sastamala ammunition unit to Nammo Lapua Oy.
• Conducted cooperation negotiations to adapt headcount and organization to match workload and order book.
• Provided employment coaching sessions for redundant employees.

Supply Chain Management

Responsible Procurement

• Introduced a process for evaluating vendors'/subcontractors' economic situation and ethical practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Security of supply
• Responsible defence materiel export practices
• Ethical operations and good governance
• Financial performance
• Occupational wellbeing
• Environmental responsibility

Environmental Achievements

• Completed a carbon footprint analysis for 2018 and 2019.
• Updated environmental system and environmental policy to comply with ISO 14001:2015.

Social Achievements

• Launched a new wellbeing at work model covering occupational healthcare and additional insurances.
• Successfully recruited approximately 150 new employees to address personnel shortages in Aviation.
• Launched a two-year apprenticeship program for aircraft maintenance technicians.
• Established a professorship in aviation technology at Tampere University of Technology.

Governance Achievements

• New CEO voiced a firm commitment to responsible operations.
• Introduced processes and guidelines for business partner selection.
• Updated guidelines on gifts and hospitality.
• Launched a joint Trade Compliance project with Kongsberg to develop export control operating models.
• Provided advanced ethics training for 244 key personnel.
• Drew up and published an Ethical Code of Conduct for Patria’s suppliers.

Climate Goals & Targets

Environmental Challenges

• Lower than expected financial result due to delays in export projects (Land business unit).
• Personnel shortages in Aviation business unit.
• Delays in subcontractors’ material deliveries in Systems business unit.
• Delays in spare part deliveries impacting helicopter maintenance in Norway and Belgium.
• End of Airbus A380 spoilers manufacturing contract significantly reducing production volumes.
• Decreased order volumes in Land business unit leading to cooperation negotiations.

Mitigation Strategies

• Launched a program to boost operational efficiency focusing on resourcing, prioritization, and planning.
• Launched a change program to develop operational activities and strategic focus, focusing on employee participation.
• Successful recruitments in Aviation business unit.
• Investments in clarifying and communicating Systems business unit’s strategy.
• Further developing automation and switching to paperless production in Aerostructures.
• Employee cooperation negotiations in Land and Aerostructures resulting in personnel reductions and job description changes.

Supply Chain Management

Responsible Procurement

• Processes and guidelines for choosing business partners.
• Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (several facilities), ISO 9001, ISO 45001 (Millog)

Environmental Metrics

ESG Focus Areas

• Security of supply
• Ethical conduct, good governance and responsible export
• Financial performance
• Occupational wellbeing
• Environmental actions against climate change

Environmental Achievements

• Reduced greenhouse gas emissions by 2,508.72 tonnes in Finland compared to 2019.
• 5% decrease in weather-normalized thermal energy consumption in properties managed by Patria and Millog.
• 6% decrease in thermal energy consumption in Patria's own operations compared to previous years.
• 8.7% decrease in specific heat consumption in Patria’s own operations.
• 5.2% decrease in specific electric energy consumption in Patria’s own operations.
• Linnavuori unit switched to carbon-neutral waste management.

Social Achievements

• Updated Patria and Millog’s ethical code of conducts.
• Successfully implemented special pandemic arrangements.
• Decrease in sickness absence rate in Finland (3.0% compared to 3.6% in 2019).
• Patria People Personnel Survey showed positive developments in all areas, with a People Power Index of 64.8 (compared to 61.3 in 2018).
• Improved job satisfaction according to personnel survey.
• 90 new employees recruited by Millog.
• Avoided redundancies in Aviation despite pandemic impact on civil aviation training.
• All employees laid off in Patria Helicopters AB found new jobs before the end of the year.

Governance Achievements

• Updated strategic partnership agreement signed between Millog and the Finnish Defence Forces.
• Achieved Category B in Transparency International UK’s Defence Companies Anti-Corruption Index.
• Introduced SpeakUp, a new channel for reporting unethical conduct.
• Continued Trade Compliance project in collaboration with Kongsberg.
• Revised performance management model (MyPower) and introduced MyPeople HR system.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting civil aviation, reducing demand for pilot training and civil aircraft components.
• Supply chain disruptions due to the pandemic.
• Delays in spare part deliveries.
• Decreased delivery volumes in civil aviation projects.
• Increased difficulty in acquiring new international projects due to cancelled trade fairs and difficulty in meeting customers.

Mitigation Strategies

• Adapted operating methods and management practices to maintain life cycle support services.
• Implemented stringent measures to contain the spread of COVID-19 at workplaces.
• Transitioned to remote working.
• Conducted employee cooperation negotiations to address reduced work volumes (resulting in shorter working hours, layoffs, and redundancies).
• Continued investment in international sales and marketing.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Developing more energy-efficient technologies and providing life cycle services that extend the lifespan of equipment.

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001:2015 (various locations)

Environmental Metrics

ESG Focus Areas

• Security of supply
• Ethical conduct, good governance and responsible exports
• Financial performance
• Wellbeing at work
• Environmental action against climate change

Environmental Achievements

• Defined and approved environmental targets by the Group Management Team
• Decreased total fuel consumption by 16.8% compared to 2020
• Decreased electricity consumption by 7.3% compared to 2020
• Increased recycling ratio of community waste to 46% (from 31% in 2020)

Social Achievements

• Two-level ethical training provided for all employees (90% completion rate)
• Successful transformation process in line with strategy; new organization nominated by November 2021
• Average sickness absence rate of 3.3% (lower than industry average)
• Accident frequency rate improved to 2.0 (from 4.6 in 2020)

Governance Achievements

• Joined the non-profit TRACE business association to prevent corruption
• Ranked in category B in Transparency International’s Defence Companies Anti-Corruption Index 2020
• Patria and Kongsberg’s joint Trade Compliance project won the World Export Control Review Award
• Internal audit of corporate responsibility carried out

Climate Goals & Targets

Environmental Challenges

• Pressure on resources pushed back certain measurements and actions to the next year (e.g., personnel satisfaction survey)
• Musculoskeletal disorders and mental stress caused by the pandemic and remote working increased sickness absences
• The new strategy caused additional stress and uncertainty for some employees

Mitigation Strategies

• Created a new model for responsibility management with targeted ESG Working Groups
• Improved internal communication regarding the new strategy
• Supported supervisors through coaching and HR assistance
• Planned to focus on supporting personnel wellbeing in 2022

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001:2015 (at most significant production facilities)

Awards & Recognition

• World Export Control Review Award (Trade Compliance project)