2022 Communication on Progress

A. Ahlström Group

Published date

June 29, 2022

No. of questions

69

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    Sustainable development of Ahlström Capital is reviewed by the Board of Directors annually. The BoD also decides on the Sustainability Policy, the Code of Conduct as well as ESG targets. The CEO is signing the Communication on Progress report to the UN Global Compact.

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Group level Sustainability Policy and Code of Conduct guide operations in the whole group. The Code of Conduct includes the commitment to the UN Global Compact and its ten principles. Enics and M&J Recycling have their own Code of Conducts, which are in line with Group level Code of Conduct, and Supplier Code of Conduct.

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The Code of Conduct covers all the above mentioned topics and more detailed description and guidance of ESG focus areas are included in the Sustainability Policy.

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Responsibility has been assigned to top management both in subsidiaries and at group level.

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Each of the above mentioned sustainability topics are addressed in the annual management reviews on ESG, which are held between group management (CEO and Director, Corporate Communications and Responsibility) and each portfolio company's top management. Enics has also established a sustainability core team to promote sustainability issues within the company.

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    The risk assessment is conducted in an annual basis and the ESG topics are covered in that assessment. Our focus area in 2022 is to develop our risk assessment process especially related to environmental risks. In connection with screening new investment opportunities the ESG risks are assessed. Enics and M&J Recycling have their own risk assessment processes and tools.

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Ahlström Capital has a group level process through which we assess impacts and development in ESG topics in each portfolio company. The portfolio companies report on ESG KPIs set up by Ahlström Capital and annual management reviews are held with the top management of each portfolio company.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    Each of our group companies has an own whistle blowing channel.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In case the company causes an adverse impact to stakeholders, the cases are investigated thoroughly and the access to remedy will be enabled.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The discussion on the topic has been started by the Board of Directors and the Compensation committee, but the schedule for implementation in still open.

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    8

    Male (%)

    75

    Female (%)

    25

    Non-binary (%)

    Under 30 years old (%)

    30-50 years old (%)

    Above 50 years old (%)

    100

    From minority or vulnerable groups (%)

    Executive (%)

    Independent (%)

    63
    Optional comment
    This information refers to the Board of Directors of Ahlström Capital Oy.

    13. Do you produce sustainability reporting according to:

    Voluntary ESG reporting in Ahlström Capital's Annual Report. Enics also reports its progress to Ecovadis.
    Optional comment
    Enics is currently preparing the implementation of GRI standards in ESG reporting.

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Commitment

    2. Does the company have a policy commitment in relation to the following human rights issues?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    2020

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    Code of Conduct guides privacy issues in all companies. Privacy policies can be found in Ahlström Capital's, Enics' and M&J Recycling's websites. In addition, there are separate digital security policies at group functions and at Enics.

    2.1. For each human rights policy, is it:

    Aligned with international human rights standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving human rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of expression

    Digital security / privacy

    Rights of women and/or girls

    Access to culture

    Rights of indigenous peoples

    Free, prior and informed consent

    Rights of refugees and migrants

    Access to water and sanitation

    Prevention

    3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing /mitigating the risks/impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    At Enics, an updated training and privacy audits were conducted during the year. At M&J Recycling, digital security and privacy issues were assessed in connection with supplier audits.

    5. Who receives training for the following human rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    M&J provided training for suppliers. Enics had a special digital security trainings for white collar employees. Digital security issues were also covered in Code of Conduct trainings.

    6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Response

    7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Human rights principles are part of the Code of Conduct trainings.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2021

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    2021
    Optional comment
    Ahlström Capital's Code of Conduct guides labour rights issues in all companies. Related to working conditions, there are local policies that may differ between countries and companies. Employee well-being is one focus area in Ahlström Capital's sustainability policy and labour rights principles are also covered in that policy.

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Code of Conducts are approved by Board of Directors at Ahlström Capital and at each group company.

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    In 2021, there has been Code of Conduct trainings in all portfolio companies and at group level covering over 50% of employees. At Enics, a commitment to labour rights is required from suppliers and both M&J Recycling, Real Estate and Forest businesses are preparing corresponding processes. Occupational safety and health issues are followed and actively developed on a monthly basis both at Enics and at M&J Recycling. Occupational health and safety is also included in Forest business' annual certificate trainings for employees and contractors. Discussion based on salary reviews are conducted in all companies annually or every second year. The development and targets in Employee well-being and Health & Safety are also discussed annually with the top management of each portfolio company.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Salary benchmarks in some companies.
    Optional comment
    In 2021, there has been Code of Conduct trainings in all portfolio companies and at group level covering over 50% of employees. At Enics, a commitment to labour rights is required from suppliers and both M&J Recycling, Real Estate and Forest businesses are preparing corresponding processes. Occupational safety and health issues are followed and actively developed on a monthly basis both at Enics and at M&J Recycling and they are also in agenda at Forest business' annual certificate trainings for employees and contractors.

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    In 2021, there has been Code of Conduct trainings in all portfolio companies and at group level covering over 50% of employees. Occupational safety and health issues are followed and actively developed on a monthly basis both at Enics and at M&J Recycling and they are also in agenda at Forest business' annual certificate trainings for employees and contractors.

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Ahlström Capital has an annual ESG review with all portfolio companies. Labour rights issues and risks related to them are reported and discussed in those reviews with the top management of each company. Employee well-being is one focus area in Ahlström Capital's Sustainability Policy and the progress and targets in our portfolio companies are monitored annually. Working conditions are assessed as a part of a due diligence process when assessing new investments.

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    25

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    27

    Non-executive board

    17

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    Followed at portfolio company level, no consolidated numbers.
    Optional comment
    The number of accidents and injuries is followed at portfolio company level, but we don't have consolidated numbers at Ahlström Capital Group level.

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    Followed at portfolio company level, no consolidated numbers
    Optional comment
    The number of accidents and injuries is followed at portfolio company level, but we don't have consolidated numbers at Ahlström Capital Group level.

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    At Enics, labour rights topics are assessed through an annual mapping in all sites as well as through a compliance survey. In 2021, M&J Recycling has focused on ensuring the key suppliers' commitment in the Code of Conduct, especially in vulnerable countries. During 2021 labour rights issues were assessed as part of due diligence process related to some new investment targets.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    Oceans

    Forests / Biodiversity / Land Use

    2022

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    2021
    Optional comment
    Climate action and energy and resource efficiency are focus areas in Ahlström Capital's Sustainability Policy. In 2022 Biodiversity was included as a new focus area. Our portfolio companies also have environmental topics covered in their own policies. Enics has site level quality policies that guide related to climate action, air pollution, waste as well as energy and resource use issues. M&J Recycling is further developing its policies as a stand-alone company during 2022.

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Ahlström Capital has an annual ESG review with all portfolio companies. Environmental issues and risks related to them are reported and discussed in those reviews with top management of each portfolio company. Climate, resource efficiency, and biodiversity are focus areas in Ahlström Capital's Sustainability Policy and are discussed with the management annually. At Forest business, the environmental assessment is conducted individually for each logging site and there are specific instructions for logging. Environmental topics and sustainable forest management practices are discussed and developed in annual trainings together with employees and contractors. The fulfillment of the requirements of PEFC certificate were audited in 2021.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Climate action and resource efficiency in one focus area in Ahlström Capital's sustainability policy. Each portfolio company is expected to set their own environmental targets for GHG emissions and energy consumption as well as other material KPIs for the company. Environmental issues and risks related to them are reported and discussed in annual ESG reviews between top management. During 2021, M&J Recycling renewed its environmental approval. At Forest business, the environmental assessment is conducted individually for each logging site and there are specific instructions for logging. Environmental topics and sustainable forest management practices are discussed and developed in annual trainings together with employees and contractors. The fulfillment of the requirements of PEFC certificate were audited in 2021.

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Ahlström Capital expects its portfolio companies to set targets to environmental KPIs material to their business. Ahlström Capital is targeting climate neutrality. Portfolio companies have their own emission reduction targets and programs and the progress is reported to Ahlström Capital annually.

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions are followed at portfolio company level but not at the group level.

    Emissions (tCO2e)

    Scope 2 Emissions

    Emissions are followed at portfolio company level but not at the group level.

    Emissions (tCO2e)

    Scope 3 Emissions

    Scope 3 emissions will be included in a coming years.

    Emissions (tCO2e)

    Optional comment
    Each group company reports its scope 1 and 2 emissions to Ahlström Capital annually. Emission reduction targets and actions are discussed in annual ESG reviews with portfolio company top management. In Ahlström Capital's Sustainability Policy all portfolio companies are encouraged to align with the Paris Agreement.

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    Optional comment
    Sustainability needs to be integrated in all portfolio companies’ business strategies and ESG impact considered in product innovation.

    8. Has the organization acted to support climate change adaptation and resilience?

    Optional comment
    Ahlström Capital encourages all portfolio companies to align with the Paris Agreement. Portfolio companies need to set targets and report progress towards them in energy intensity, share of renewable energy and GHG emissions. Ahlström Capital also encourages portfolio companies to measure the ESG impact of their new product innovations.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    44

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Optional comment
    Ahlström Capital encourages portfolio companies to integrate sustainability aspects into their strategy and product innovations to develop product and services that are more environmentally friendly and will combat climate change. M&J Recycling produces industrial shredders for the recycling industry and is supporting circular economy. All our forests have PEFC certification, meaning that 100% of our forest business' revenue came from sustainably managed forests.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    Optional comment
    Water consumption is not material in Ahlström Capital's portfolio companies and businesses. Enics has set targets and monitors water consumption.

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Ahlström Capital has no operations in regions with high water stress.

    Sector-specific: Forest, biodiversity, and land use

    14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).

    Number

    Unknown

    Not applicable (Please provide additional information)

    Sites

    15

    Hectares

    450
    Optional comment
    The numbers above refer to the actual protected areas in the forests owned by Ahlström Capital Group.

    15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?

    Conversion of natural resources (hectares)

    0
    Optional comment
    No new areas were converted in 2021. Forest business is planning to map the areas owned by Ahlström Capital that can be converted in the future.

    16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?

    No

    No, but we plan to in the next 2 years

    Yes

    Forest ecosystem restoration

    Other ecosystem restoration

    Reforestation

    230 hectares

    Natural regeneration

    50 hectares

    Agroforestry

    Set-aside land

    Biodiversity offsetting

    Other (please specify in text box)

    Sector-specific: Air pollution

    17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

    Emissions (tCO2e)

    Unknown

    Not applicable (Please provide additional information)

    NOx

    SOx

    Volatile Organic Compounds (VOC)

    Hazardous air pollutants (HAP)

    Particulate matter (PM10)

    Persistent organic pollutants (POP)

    Other (please specify in text box)

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    The amount of waste is followed at portfolio company level but not consolidated at the group level.
    Optional comment
    The amount of waste is followed at portfolio company level but not consolidated at the group level.

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    The amount of hazardous waste is followed at portfolio company level but not consolidated at the group level.
    Optional comment
    The amount of hazardous waste is followed at portfolio company level but not consolidated at the group level.

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Enics has set targets on Environmental topics to have 0 carbon footprint production for 2026 and reduce landfilled waste by 30% by 2026. Teams for monitoring and planning have been set up (Sustainability, Environment development). M&J i setting the environmental targets during 2022. In real estate business, an energy efficiency program was completed on the main property. Investments in renewable energy have been made in several of the properties. Material ESG KPIs and targets for the real estate business are to be determined during 2022. Ahlström Capital Group continued to manage the forest assets in a sustainable manner taking into account biodiversity and a growing carbon sink. Target setting for biodiversity aspects will be in focus in 2022.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    Updated in 2022
    Optional comment
    Ahlström Capital is committed to conduct its business in a fair and ethical manner. Anti-corruption is addressed in Ahlström Capital's Code of Conduct, and in Code of Conducts of Enics and M&J Recycling respectively. Supplier Code of Conducts at Enics and M&J Recycling also guides suppliers to conduct their businesses in compliance with the same ethical standards as the companies' itself adheres to.

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    Ahlström Capital's and portfolio companies' Code of Conduct's provide policies and instructions for employees to follow. Enics has a stand-alone policy for anti-corruption.

    Prevention

    3. Who receives training on anti-corruption and integrity?

    Optional comment
    Code of Conduct training is provided to all employees throughout the Ahlström Capital Group organisation. Enics provides its white collars and managers with the specified anti-corruption training. Forest business' employees and contractors are also trained.

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Enics conducts a compliance questionnaire to all employees every second year

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    -

    Confirmed during the current year, and related to this year

    0
    -

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    Ahlström Capital's Code of conduct has been updated in 2022 and trainings will be conducted during 2022. No incidents has been reported through whistle-blowing channels in any of the companies.