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KONE 2016 | SUSTAINABILITY REPORT

REPORTING SCOPE

4 8

REPORTING SCOPE

KONE has chosen to report using the

Global Reporting Initiative (GRI) guidelines

in order to facilitate easier comparison of

our performance with other companies

and to streamline our own corporate

responsibility reporting efforts. KONE has

published Sustainability Report annually

since 2008. The previous report was

published in June 2016.

The report follows GRI (G4) reporting

guidelines as far as they are applicable,

and covers economic, social, and

environmental responsibility. A table

detailing how this report complies with the

GRI guidelines is shown on pages 50–51.

We have self-declared our reporting to be

in accordance with the Core level.

The reporting period corresponds with the

calendar year and with KONE’s financial

year of January 1–December 31, 2016.

When developing the report content and

choosing indicators, the driver has been

the materiality to KONE’s operations.

During 2016, we conducted a materiality

analysis and defined the focus areas for

KONE’s sustainability work (see more on p.

12 –13). KONE’s approach to sustainability

has also been described in the Interview

with the chairman and the president

and CEO on p. 4 –5, and in the strategy

description on p. 8 –9.

All major local and regional organizations

and all production units are included in

the reporting scope. All financial data and

a significant proportion of the employee-

related data has been collected through

KONE’s enterprise resource management

and financial reporting systems. All financial

figures presented in this report are based on

KONE Corporation’s consolidated and audited

Financial Statements for 2015 and 2016.

The personnel data is provided by our HR

organization– with the exception of the data

relating to gender and age distribution in

management.

The environmental data has been collected

from KONE’s 13 manufacturing units

worldwide and from 30 major country

organizations with sales, installation, and

service operations in Asia-Pacific, EMEA, and

North America. The collected environmental

data covers 91% (2015: 86%) of all KONE’s

employees and 100% of the employees

working at our manufacturing units. The

facilities related energy data collected from

the reporting country organizations has

been extrapolated for the entire KONE

organization. The goal is to gradually extend

our environmental reporting to cover all of

KONE.

Business air travel data has been collected

from 29 countries and extrapolated to cover

the entire KONE organization. Vehicle fleet

fuel consumption data has been collected

from 22 countries, covering 94% of the total

fleet. Product and spare parts logistics data

has been collected by KONE’s corporate

logistics team and calculated using an

in-house logistics emission calculation system

to replace the previous system. The logistics

data covers the transportation of products

from KONE’s manufacturing units to

customers and the transportation of modules

that are delivered straight from our suppliers

to our delivery centers and onward to

KONE Focus Areas

GRI G4 Aspect (G4-19)

Boundary

DRIVING INNOVATION AND

IMPROVING RESOURCE EFFICIENCY

• Deep understanding of customer needs

• Sustainable innovations and business models

• Resource efficiency and life-cycle thinking

• Low-carbon operations

• Aspect: Energy

• Aspect: Water

• Aspect: Emissions

• Aspect: Effluents and Waste

• Aspect: Compliance

• Aspect Transports

Within the Organisation

(G4-20)

Outside the Organisation

(G4-21)

• KONE Operations

(Manufacturing

units + 30 Country

organisations)

• Indirect (Scope 3)

Energy use and GHG

Emission sources

P

ROVIDING THE MOST SUSTAINABLE OFFERING

• Customer satisfaction

• Product and service quality

• End user safety

• Accessibility

• Energy efficiency of solutions

• Aspect: Materials

• Aspect: Energy

• Aspect: Products and services

• Aspect: Customer Health & Safety

• Aspect: Product and Service Labeling

• Aspect: Compliance

• KONE Operations

• Customers

BEING THE BEST EMPLOYER AND

ATTRACTING TALENT

• Fair employment practices

• Competence development

• Motivated and engaged employees

• Diversity and non-discrimination

• Employee safety and well-being

• Aspect: Employment

• Occupational Health & Safety

• Aspect: Training and Education

• Aspect: Diversity & Equal Opportunit

y

• KONE Operations

• Subcontractors

ENABLING OUR PARTNERS AND

SOCIETIES TO PROSPER

• Creating wealth via taxes and employment

• Generating long-term returns

• Supporting local communities

• Ethical business practices

• Long-term relationships with our suppliers

• Diversity and equal opportunity

• Aspect: Economic Performance

• Aspect: Market Presence

• Aspect: Anti-corruption

• Aspect: Anti-competitive Behavior

• Aspect: Compliance

• Aspect: Supplier Environmental Assessment

• Aspect: Supplier Assessment

for Labor Practices

• KONE Operations

• Community

• Suppliers / Strategic

suppliers

KONE FOCUS AREAS AND GRI G4 ASPECTS