Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Responsible Business
• Economy & Society
• Environment

Environmental Achievements

• 90% of paper used was made of certified fibre.
• 7% less electricity used in Hoofddorp offices in the Netherlands in 2013.
• 30% savings in energy consumption in Belgium due to new office space and energy-saving solutions.
• 99% of waste generated (8,000 tonnes) in printing plants was recycled.

Social Achievements

• Launched Innovation Accelerator Programme engaging 700 people, generating 4,500 ideas, testing 250, and creating 10 internal startup ventures.
• Supported the New Children’s Hospital 2017 project in Finland through media space, donations, and employee fundraising initiatives.
• Donated EUR 550,000 to charity, including the New Children’s Hospital 2017 and the John Nurminen Foundation.
• Pink Ribbon campaign in Netherlands raised over EUR 7 million over 10 years.

Governance Achievements

• Adherence to the Finnish Corporate Governance Code.
• Established a Privacy Programme to develop data protection policies and internal organization for privacy management.
• Developed a Privacy Portal for customers to increase awareness about data uses and privacy policy.

Climate Goals & Targets

Environmental Challenges

• Transformation of the business model leading to changes in organization and portfolio.
• Decreasing number of personnel due to portfolio changes and reorganizations.
• Need to increase awareness about Big Data and analytics among the public.

Mitigation Strategies

• Implementation of the Sanoma Way, a common way of working, to create a high-performing organization.
• Use of a performance management framework to set targets, evaluate performance, and identify development opportunities.
• Privacy Programme focusing on active involvement in industry and regulatory dialogue, privacy impact assessments, and innovative solutions for consumers.

Supply Chain Management

Responsible Procurement

• Paper procurement guidelines ensuring responsible sourcing, traceability, respect for human rights, and environmental management systems (ISO 14001).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 guidelines

Certifications: ISO 14001 (many paper suppliers and printing houses)

Environmental Metrics

ESG Focus Areas

• Inclusive learning
• Sustainable media
• Trustworthy data
• Vital environment
• Valued people
• Responsible business practices

Environmental Achievements

• Calculated greenhouse gas emissions according to the Greenhouse Gas Protocol (GHG), totaling 99,289 tCO2e in 2020. Set a climate target of net-zero emissions by 2030 throughout the value chain.
• Two office facilities in the Netherlands and Sweden transitioned to renewable energy during 2020.
• All waste generated in printing facilities was reused or recycled during 2020.

Social Achievements

• Offered schools free access to digital learning services to support remote teaching during the pandemic.
• Annual Employee Engagement Survey reached all-time high results due to actions to support remote working and offer wellbeing services.
• Supported the Finnish music industry during the pandemic through the ‘Anna sen soida’ campaign.

Governance Achievements

• Updated Sanoma Sustainability Strategy, approved by the Board of Directors in December 2020.
• 95% of employees completed online privacy training.
• Implemented a breach management process to address personal data breaches; zero major and 196 minor breaches in 2020.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic.
• Increased emissions due to the acquisition of the regional news media business.
• Maintaining employee wellbeing during remote working.

Mitigation Strategies

• Offered free access to digital learning services.
• Implemented remote wellbeing initiatives.
• Developed energy efficiency measures and transitioned to renewable energy in some facilities.
• Optimized delivery routes with key suppliers.

Supply Chain Management

Supplier Audits: 100% of new suppliers committed to the Sanoma Supplier Code in 2020.

Responsible Procurement

• Sanoma Supplier Code of Conduct
• Know Your Counterparty (KYC) process
• Paper Procurement Standard

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core option, UN Global Compact

Certifications: ISO 14001 (Sanomala and Savon Paino printing plants)

Third-party Assurance: Mitopro Oy

UN Sustainable Development Goals

• 4
• 5
• 8
• 9
• 10
• 12
• 13
• 16
• 17

The report details how Sanoma's initiatives contribute to these SDGs through its learning and media businesses.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fanny Fröman from HS Kids’ News received the award for information disclosure granted by the Ministry of Education and Culture in Finland.

Environmental Metrics

ESG Focus Areas

• Inclusive learning
• Sustainable media
• Valued people
• Trustworthy data
• Vital environment
• Responsible business practices

Environmental Achievements

• 7% reduction in own operations Scope 1 and 2 GHG emissions
• 8.2% reduction in value chain GHG emissions (Scope 3 categories 1, 3, 4, and 9)
• 92% of electricity consumption from carbon-neutral sources
• 94% of paper fibre from certified sources

Social Achievements

• Employee Experience Index remained stable at 7.3
• Equal opportunities rating improved to 7.7
• Launched an online course on unconscious biases for all employees
• Supported the Red Cross and other initiatives with donations to help the relief work in Ukraine

Governance Achievements

• 98% of employees completed Code of Conduct e-learning
• 86% of new key suppliers signed the Supplier Code of Conduct
• No major data breaches

Climate Goals & Targets

Environmental Challenges

• Higher energy costs and increased paper and distribution costs due to the war in Ukraine
• Inflationary cost increases impacting earnings
• Volatile advertising demand in uncertain economic times
• Data breaches
• Maintaining a sufficient level of liquidity
• Interest rate risks
• Currency risks
• Credit risks
• Risk of impairment of goodwill, immaterial rights and other intangible assets
• Seasonal fluctuation
• Risks related to changes to tax laws or their application or as a result of a tax audit
• Talent attraction and retention
• Climate change-related risks
• Risks related to human rights, anti-corruption and bribery
• Changes in customer preferences, technology and industry trends
• Competitive environment and threat of new entrants
• Changes in applicable laws, regulations or the political environment
• General economic and market conditions
• Information and Communications Technology (ICT)
• Risks related to third parties
• Intellectual Property Rights (IPRs)
• Business interruption, health and safety and hazard climate-related risks

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials
• Investing in learning materials and harmonisation of learning platforms
• Intensifying cost management and selective approach to growth investments
• Implementing technical corrective measures and training sales teams
• Ensuring sufficient revenues, maintaining adequate committed credit limits, using several financing institutions and forms of financing, and spreading loan repayment programmes
• Ensuring that the interest duration of the gross debt of the Group is within a certain time range
• Using a mix of fixed rate and floating rate loans or by utilising interest rate derivatives
• Entering into forward contracts to hedge against significant transaction risks
• Credit insurance
• Annual impairment testing of goodwill, immaterial rights and other intangible assets
• Diversified business portfolio
• Cost management actions
• Closely monitoring regulatory developments and adapting business models
• Continuity and disaster recovery plans
• Insurance programme
• Enhancing corporate culture
• Ambitious climate strategy
• Supplier Code of Conduct
• Know Your Counterparty (KYC) process
• Mandatory e-learning course on the Code of Conduct
• Competitive bidding and qualification processes for suppliers
• Supplier engagement
• Copyright, trademark and other intellectual property laws
• Group-wide IPR Policy and procedures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Paper Procurement Standard

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing mechanisms
• Increased stakeholder pressure

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD guidelines, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Sanoma’s Sustainability Strategy is aligned with nine priority SDGs

Sustainable Products & Innovation

• Digital learning platforms
• Hybrid learning materials