2022 Communication on Progress

Airam Electric Oy Ab

Published date

June 13, 2022

No. of questions

59

Supplemental files

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

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

    Optional comment
    Annual review, including statement about the relevance of sustainable development, has been sent out to our key stakeholders since 2019.

    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
    Commitment is stated both in Airam's own and in Airam's Supplier Code of Conduct. Both publicly available on our webpage: https://www.airam.fi/supplier-code-of-conduct and https://www.airam.fi/en/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
    Both Airam's own and in Airam's Supplier Code of Conduct are publicly available on our webpage: https://www.airam.fi/supplier-code-of-conduct and https://www.airam.fi/en/code-of-conduct

    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

    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

    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
    We are currently in the process of developing a risk assessment process for assessing all relevant sustainability risks.

    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
    We are currently in the process of developing a due diligence process for identifying and managing all relevant sustainability risks.

    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
    We have adopted an anonymous whistleblowing channel for internal use in 2021, as well as encourage our employees to raise any concerns to their own supervisors or to any senior manager.

    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)

    Optional comment
    The whistleblowing channel will be opened to external stakeholders by 2023.

    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

    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

    Optional comment
    We are still in the beginning of our sustainability management journey. As we start gaining more experience, we will monitor and analyse any incidents and measures taken.

    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

    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 (#)

    5

    Male (%)

    100

    Female (%)

    0

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    40

    Above 50 years old (%)

    60

    From minority or vulnerable groups (%)

    0

    Executive (%)

    0

    Independent (%)

    60
    Optional comment
    Airam Electric Oy Ab is a private family company.

    13. Do you produce sustainability reporting according to:

    Data Assurance

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

    Optional comment
    We are still establishing the processes for sustainability management. External expertise is used for quality assurance for GHG calculation, but not officially verified.

  • 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?

    We will identify the most material human rights issues for our company and our value chain during 2022 and report on this topic more in detail in 2023 report.

    Response

    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.

    Airam has published a code of conduct and a supplier code of conduct which set basic principles for how human rights are implemented within the company and what is expected from the suppliers. Furthermore, in autumn 2021, Airam joined Amfori BSCI in order to built up understanding within our company of potential human rights issues. During 2022 we will implement Amfori BSCI processes, including BSCI audit to broaden our understanding of our the human rights impacts and what we should focus on. Planned actions for 2022 is to fully implement the Amfori BSCI, and to set policies and processes for human rights risk assessment and due diligence. In addition, internal training sessions will be organized.

  • 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

    2020

    Forced labour

    2020

    Child labour

    2020

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2020

    Working conditions (wages, working hours)

    Optional comment
    Airam's code of conduct, as well as Airam's supplier code of conduct include policies concerning freedom of association, forced labour, child labour and occupational health and safety. Airam also committed to amfori BSCI code of conduct in 2021, which includes all the abovementioned categories.

    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)

    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

    Airam has an occupational health and safety committee, as required by the national (Finnish) legislation. The OHS committee is composed of an employer representative and several representatives of different employee groups. The OHS committee is in charge of the development of OHS matters, including risk assessment and prevention/mitigation processes. All employees are encouraged to report on any OHS concerns.

    Working conditions (wages, working hours)

    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

    Employees are free to join any trade union they wish to.

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    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
    All new employees receive basic training in occupational safety and health risks and their prevention. In addition, a number of employees (representing different sections/floors of the company) attended first aid training. In 2021 the sustainability manager attended to trainings in labour rights

    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
    Targets are set in the occupational health plan and the progress is reviewed annually by the OHS committee and the company's management team. Monitoring and implementation is done in co-operation with the OHS service provider.

    Performance

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

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    100
    Optional comment
    Collective agreements are referred to and applied in all employment contracts.

    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 (%)

    Information on trade union membership falls within the specific categories of personal data which are prohibited to process by the article 9 of the EU General Data Protection Regulation (GDPR). There are similar restrictions also in the Finnish National Data Protection Act (6 §). The use of information on trade union membership is only justified if it is necessary in order to comply with the employer's specific rights and obligations in the field of employment law. Therefore this information is not available. Therefore, Airam Electric Oy Ab does not collect data on our employees' membership in a trade union.

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

    Percent of women (%)

    Unknown

    Senior leadership level position

    Non-executive board

    0

    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 (%)

    Optional comment
    We will develop our reporting system and provide this information in the coming year.

    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

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

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    Optional comment
    Data collection method has been developed during 2022.

    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

    No indication or reported cases of our company causing or contributing to adverse impact related to this matter.

    Forced labour

    No indication or reported cases of our company causing or contributing to adverse impact related to this matter.

    Child labour

    No indication or reported cases of our company causing or contributing to adverse impact related to this matter.

    Non-discrimination in respect of employment and occupation

    No indication or reported cases of our company causing or contributing to adverse impact related to this matter.

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Occupational health services are available for all Airam's employees. In case of an injury or illness, the employees have a wide range of OHS support available, starting from first aid kits at the premises to outsourced professional OHS services, including both physical and mental health care. In case an employee was prevented from working due to illness or injury, they were compensated for the days of absense based on the Finnish labour legislation and the applicable collective bargaining agreement.

    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.

    Airam joined Amfori BSCI in autumn 2021, with a goal to gain better understanding of our business' impacts on the value chain. The plan is to fully embed the initiative's principles into our processes during 2022, and to provide internal training on the topic for our key personell. Plans for implementation will be done when we have conducted a current state analysis.

  • 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

    Water

    Oceans

    The topic is not considered material for the company as neither our business activities nor our products impact the oceans directly.

    Forests / Biodiversity / Land Use

    Air Pollution

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

    Energy & Resource Use

    Optional comment
    As part of a recently launched process for establishing an environmental management system in accordance with ISO 14001:2015 standard, we shall develop an environmental policy. The policy shall cover the environmental topics that are considered most material to our 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 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

    This environmental issue is not material to Airam.

    Forests / Biodiversity / Land Use

    Air Pollution

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

    Energy & Resource Use

    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

    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
    During 2022 we shall set a group-wide climate target.

    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

    This environmental issue is not material to the organization.

    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 (tCO2e)

    61.3

    Scope 2 Emissions

    Emissions (tCO2e)

    49.9

    Scope 3 Emissions

    Emissions (tCO2e)

    442744
    Optional comment
    Scope 1 Airam group's scope 1 emissions in 2021 were 61,3 tCO2e. Scope 2 Airam group's market-based scope 2 emissions were 49,9 tCO2e. Location-based scope 2 emission for 2021 were 72,2 tCO2e. Scope 3 For scope 3 emissions, an inventory of material categories was concluded during spring 2022. Included, material categories were cat 1, cat 3-9, and cat 11-12. They totalled 442 744 tCO2e. N.b. Disclosed figures concern the whole Airam Groups' emissions, with majority of functions and turnover taking place in Finland.

    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 (%)

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

    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

    25
    Optional comment
    Airam switched to renewable electricity in its own electricity contracts in mid-2021. The company car policy was updated also in 2021 to favour low-emission cars. Use of e-vehicles was supported further by increasing the charging capacity at the company premises. Largest proportion of the company's non-renewable energy consumption is related to district heating of the company's headquarters.

    Technology

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

    Percent of total revenue (%)

    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 (%)

    Airam Electric Oy Ab does not have own operations in regions with 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 (%)

    Airam Electric Oy Ab does not have own operations in regions with high water stress.

    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/$):

    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

    Land use is not a material topic in relation to Airam Electric Oy Ab's own operations. The company does not have sites in or adjacent to protected areas or key biodiversity areas.

    Hectares

    Land use is not a material topic in relation to Airam Electric Oy Ab's own operations. The company does not have sites in or adjacent to protected areas or key biodiversity areas.

    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
    The company operates only in pre-existing industrial sites.

    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

    Natural regeneration

    Agroforestry

    Set-aside land

    Biodiversity offsetting

    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)

    73.7
    Optional comment
    Breakdown of waste by waste component: - Carton and cardboard 14,8 t - Paper 5,5 t - Glass 0,3 t - Plastic 1,5 t - Wood 22,6 t - Metal 4,6 t - Mixed waste (combustion) 11,9 t - Hazardous waste (metal e-waste) 12,5 t

    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 (%)

    17.5
    Optional comment
    Hazardous waste composes of metal e-waste (e.g. luminaires, e-cables).

    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)

    15.1
    Optional comment
    Reported single-use plastics of imported packaging plastics.

    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.

    We have organized an internal training concerning environmental impacts of packaging with help of external experts. In 2022 we will identify our environmental aspects and impacts as part of building an ISO 14001 -based environmental management system. In addition, we will set us environmental targets and roadmaps for reaching those targets.

  • Anti-corruption

    Commitment

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

    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?

    Prevention

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

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

    We do not have an anti-corruption compliance programme at the moment.

    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
    No reported incidents of corruption during the reporting year.

    Confirmed during the current year, and related to this year

    0
    No reported incidents of corruption during the reporting year.

    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.

    We have not taken any practical anti-corruption actions during the reporting period nor have plans for the near future.