Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• Offered customers an emissions report pursuant to SFS-EN 16258 for transports through main routes. Rail transport has 40% less emissions than sea freight and 22 times less than air freight.

Social Achievements

• Doubled clientele to 2,000 active corporate customers in over ten countries in a year.
• Improved awareness and position in the international railway market.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Container shortage, port blockages, and high freight prices.
• Covid-19 pandemic slowed international sales.
• War in Ukraine and geopolitical uncertainty affecting global logistical routes.

Mitigation Strategies

• Timely procurement of containers and opening of new railway routes.
• Active sales efforts, scalable operating model, and market knowledge.
• Discontinued unprofitable services.
• Strengthening operational capability in China and developing Nurminen Nordic Hub service concept.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SFS-EN 16258

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New customer portal for railway customers

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• All services provided by the company in Finland are covered by a certified environmental management system that meets the requirements of the ISO 14001:2004 standard.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• War in Ukraine and accelerating increase in costs required swift decisions on streamlining the cost structure, reallocating resources and expanding the market area.
• Decreasing global freight volumes decreased the demand for ocean freight and lowered prices significantly during H2/2022.
• World trade weakening from the current situation as a consequence of the war in Ukraine may have a negative impact on the demand for the company’s services and thereby result.
• If the foreign trade of Finland, China or Sweden decreases, it will affect the demand for services.
• In the railway business, food supply-related fertilisers critical to the world or metals required for the green transition being subjected to Western sanctions would have a negative impact on the business of the acquired company Operail Finland Oy.
• The prolongation of the war in Ukraine and a permanent change in the international order may have a global impact on logistical routes. Such a change could harm the company’s Asian container train business.

Mitigation Strategies

• Decided to wind down the direct railway connection between China and Finland and the reserved container position.
• Closed the Eastern traffic forwarding office in Vaalimaa and the Vainikkala terminal, as well as the operations of the St. Petersburg office.
• Sped up the opening of the Trans-Caspian route to serve traffic between China, Central Europe and the EU.
• Opened an office in Vienna to accelerate sales in Central Asian countries and Central Europe.
• Opened a new railway route in the Nordic countries.
• Trimmed costs by reducing not only the container position, but also offices and the number of personnel.
• Passed on the increase in costs caused by inflation fully to prices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 14001:2004

Third-party Assurance: Ernst & Young Oy

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental awareness
• CO2 monitoring
• Green transition
• Supply chain re-evaluation
• Efficiency improvements

Environmental Achievements

• Increased use of rail transport, contributing to lower emissions.
• Positive development of businesses related to the green transition, reflected in growing volumes.

Social Achievements

• Acquisition of North Rail Oy, creating new cooperation opportunities and securing jobs.
• Good results of the spring 2023 customer satisfaction survey and quality audit, proving employee competence and commitment.

Governance Achievements

• Amendment to the loan programme with Ilmarinen Mutual Pension Insurance Company.
• Decisions made by the Annual General Meeting of Shareholders, including Board re-election and share issue authorization.

Climate Goals & Targets

Environmental Challenges

• Lack of direct China and Asia container trains due to the war in Ukraine, decreasing net sales.
• Slowdown in the macro economy and high inflation affecting demand for services.
• Strikes in Finland negatively impacting results.
• General slowdown in trade in Finland weakening terminal and domestic forwarding volumes.
• Possible failure in the operational development of the Trans-Caspian route.
• Western sanctions on fertilizers or metals needed for the green transition impacting North Rail Oy's business.
• Prolongation of the war in Ukraine impacting logistical routes.
• Increasingly frequent extreme weather events causing operational issues and increased costs.

Mitigation Strategies

• Improved efficiency and successful customer acquisition.
• Good cost management and investments in international traffic.
• Offsetting the impact of volume decrease with new customers, service solutions, and delivery agreements.
• Investments in international sales and development of a partnership and subcontracting network in Central Europe.
• Active acquisition of new customers, new service solutions and the new delivery agreements already signed.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly frequent extreme weather events

Reporting Standards

Frameworks Used: IFRS