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Responsible Kiilto and KiiltoClean corporate responsibility report

Responsibility for the benefit of stakeholders


Contents Responsibility for the benefit of stakeholders .......................................................................1 Genuine responsibility can be seen and felt...........................................................................2 Kiilto Family Group..................................................................................................................................3 Kiilto Oy .........................................................................................................................................................4 KiiltoClean Oy.............................................................................................................................................6 Operating systems and standards of Kiilto...............................................................................8 Recognising the key aspects of corporate responsibility .............................................8 Operating systems and standards of KiiltoClean..................................................................9 Recognising key aspects of corporate responsibility........................................................9 Responsible business of Kiilto and KiiltoClean....................................................................10 Strategic management of Kiilto and KiiltoClean.....................................................10 Rewarding dialogue with stakeholders...................................................................................12 Stakeholders of Kiilto and KiiltoClean.......................................................................................13 Environmental and product safety aspects..........................................................................14 Responsible choices throughout the lifecycle of the product......................15 Taking proactive responsibility..........................................................................................16

Aspects of employer responsibility............................................................................................32 Personnel thrive and are committed to their work...............................................33 Safe and inspiring working environment....................................................................34 Aspects of sustainable business...................................................................................................44 Stakeholder distribution of economic added value.............................................45 Economic stability is reflected in the environment .............................................46 Kiilto certifies Russian production....................................................................................52 The competence of KiiltoClean is an advantage in Russia...............................53 Content comparison with the GRI G4 guideline recommendations....................54 ISO 26000 survey: key topics..........................................................................................................57 Kiilto quality principles.......................................................................................................................58 KiiltoClean operating policy...........................................................................................................59 The responsibility communication path of Kiilto and KiiltoClean..........................59


Responsible actions

Washing liquid aids in the prevention of hospital bacteria KiiltoClean developed a washing liquid at the request of the TAYS Infections Unit. Read more on page 24.

Responsible actions Excerpts from the responsible operations of Kiilto and KiiltoClean in 2012–2014

KiiltoClean trains KiiltoClean trains more than 10,000 cleaning and sanitation professionals annually on the correct use of products. Read more on page 30.

Beat the dust! Kiilto advertising campaign emphasised the role of low-dust products in the safety of construction and renovation sites. Read more on page 23.

Responsibility report


Responsible actions

eKiilto grew New modules were developed for eKiilto, the electronic training channel of Kiilto.

Chemical risk minimisation Guidance from KiiltoClean reduced chemical risks in the production of propellers at the RollsRoyce plant.

Read more on page 30.

Read more on page 20.

Emergency drill prepared for risk situations KiiltoClean organised an emergency drill together with the Southwest Finland Emergency Services. Read more on page 41.

Playhouse for children The Mannerheim League for Child Welfare received a long-awaited playhouse for children with the help of KiiltoClean volunteers in Turku.

Active Workplace Awards The certifications of Kiilto and KiiltoClean assess and develop the physical activities of personnel.

EU food safety certification for adhesives Timo Järvenpää’s thesis helps Kiilto apply for the EU food safety certification for adhesives.

Read more on page 51.

Read more on page 43.

Read more on page 28.

Material and energy efficiency project Motiva’s audit investigated the material and energy efficiency of Kiilto and produced a new kind of environmental document.

50+ event Kiilto and KiiltoClean’s 50+ events informed about the current issues of health and well-being of those who have turned 50.

Read more on page 27.

Read more on page 43.

ISO 26000 Kiilto integrated the ISO 26000 social responsibility standard with its ISO 9001 quality management system. Read more on page 60.

     

Pakkausmateriaalit 0,2  %   47  %  

 

Pahvi/ kartonki/  paperi  →  Kierrätecävä  

48 %  

Metalli →  Sekajäte   Lava  /  puu  →  Kierrätecävä  

5 %  

Pakkausmateriaalien hyötykäyttövelvoite  

Kiilto Oy  on  täyttänyt  pakkausmateriaalien  hyötykäyttövelvoitteen  ja  k asiakastunnut  37188-­‐19984).  

86 %  

maakaasu sähkö  

80 %  

Tuotteen käyttötarkoitus  

yös  esivetyttämismenetelmällä  tapahtuvaan  paperitaustaisten  tapettien  kiinnittämiseen.  

(suhteutettuna koko  tuotannon  jätteistä)  

14 %  

KIILTO NoWo  seinäliima  

uuluu Pakkausalan  Ympäristörekisteriin  (PYR;  

Kiilto NoWo  non-­‐wowen   seinäliima  on  tarkoitettu  mittapysyvien  non-­‐wowen  paperitapettien  kiinnitykseen  imukykyisille  tai   syntyneet  jätteet   Valmistuksessa   maalatuille  alustoille.  Soveltuu  m

Tuotteen valmistukseen  käytetty  energia    

Muovi →  Energiajäte  

20 %  

Valmistaja

Sertifikaatit /  standardit    

Kiilto Oy   materiaali   Kierräte8ävä   PL  250   käyte8y  materiaali   Energiaksi   33101  Tampere,  FINLAND   puh.  0207  710  100   e-­‐mail:  productsafety@kiilto.com  

M1 sisäilmaluokitus         Täyttää  LEED  4.1  vaatimukset   ISO  9001  (sertifioitu)   ISO  14001  mukainen  toiminta   ISO  26000  

n. 0,09  kWh/tuotekilo  

Liuotinpäästöt ilmaan   Jätevesikuormitus      

päästöistä)   0,03  g  /  tuotekilo  (suhteutettuna  koko  tuotannon   Kunnalliseen  viemäriin  jätevettä  0,0012kg  /  tuotettu  kilo   0,2  g  kuiva-­‐ainetta  /  tuotettu  kilo  

Merkit

Valmistusmaa                    Suomi  

Tuotteen koostumus      

Sideaineet   Täyteaineet   Hävitetään  sekajätteen  mukana.   Liuotin   Kuivunut  tuote     Kuivatetaan  ja  hävitetään  sekajätteen  mukana.   Nestemäinen  tuote   Apuaineet   Toimitetaan  kierrätykseen  tai  hävitetään  sekajätteen  mukana.   Tyhjät,  kuivat  pakkaukset   Säilöntäaine       ja  tiivistysmassajätteet.   EWC  jätekoodi  080410  –  muut  kuin  nimikkeessä  080409  mainitut  liima-­‐   ja  lakkajätteet.   EWC  jätekoodi  080112  –  muut  kuin  nimikkeessä  mainitut  080111  maali-­‐   Biopohjaisia  raaka-­‐aineita         Työvälineet  pestään  vedellä  ja  vesi  voidaan  johtaa  viemäriin.  

Tuotteen ja  pakkauksen  hävitysohje  

%

tyyppi

5-­‐15 0   70-­‐90   1-­‐10   <  0,5  

PVAc dispersio,  tärkkelys     Vesi      

75-­‐100 %   50-­‐75  %  

astian sisällöstä   kuiva-­‐aineesta  

Tuotteen elinkaari   Tuote  toimii  rakenteessa  optimaalisissa  olosuhteissa  ja  oikein  käytettynä  

Raaka-­‐aineiden 25  vuotta.   alkuperä       vähintään  

Raaka-­‐aineiden kuljetusmuodot  

91  %  

Suomi 9  %  

7 %

Muu Eurooppa  

 

Responsibility report

7 %

2 %


The contents of the report

Responsibility for the benefit of stakeholders The operations of Kiilto Oy and KiiltoClean Oy are based on identifying stakeholders along with their needs and responding to them. Consequently, we wish to make the stakeholders an integral part of this corporate responsibility report and have their voices heard. The main theme of the report is the responsibility of Kiilto and KiiltoClean for the benefit of stakeholders. In the responsibility report, corporate responsibility is approached from three angles: environmental responsibility and product safety, employer responsibility and financial responsibility. The report concretises the ways in which responsibility connects with the strategic and operational levels of Kiilto and KiiltoClean and how the companies promote it proactively in the long term. The responsibility report covers the business activities of Kiilto Oy and KiiltoClean Oy from 2012 to 2014. When depicting human resources and economic management, the report also refers to the parent company of the group, Kiilto Family Oy, which is responsible for the human resources, information and economic management of the group. Kiilto and KiiltoClean adhere to the guidelines for social responsibility specified in the ISO 26000 standard in their operations. In addition, Kiilto has implemented the ISO 26000 standard into its quality management system and, consequently, widely into the practises of the company. This report adheres to the G4 guideline of the Global Reporting Initiative (GRI), utilising mainly the Core level of the guideline. However, some parts (e.g. management) are reported at a substantially more comprehensive level than what is required within the Core level guideline. The report also includes the principles and core topics of the ISO 26000 standard at an appropriate level of detail. The Specific standard disclosures of the GRI G4 guideline

and the principles and core topics of the ISO 26000 standard are reported when relevant as regards both Kiilto and KiiltoClean. The practices of defining what is relevant are depicted alongside the company introductions. The key aspects of corporate responsibility will be introduced in the opening segments of each subcategory as well as in the stakeholder description. The table at the end of this publication compares the scope of the report with the GRI G4 guideline and ISO 26000 standard. The report has not been externally verified. The responsibility report of Kiilto and KiiltoClean is published once every three years in Finnish and English. The key responsibility figures are published every year at www.vastuullinenkiilto.com, a website which also contains additional information complementing this report. The reported key figures, computation limits and principles of company specific characteristics have been determined in both companies by criteria decided on by in-house expert teams and verified by the management. In some cases, key figures specific to the field in question are followed (Chemical Industry, RC programme). Contrary to the previous report, the figures for KiiltoClean Oy of the factories in Turku and Hankasalmi have been combined into one figure. Company-specific key figures are not always comparable to each other. In addition, some of the key figures are mutual and collected from the parent company Kiilto Family Oy. For more information, contact the Kiilto Family Oy Communications Specialist Armi Mehto. Additional information about the key figures is provided by the R&D Support Manager Lilli Puntti at Kiilto Oy and the R&D Chemist Maija Blomquist at KiiltoClean Oy.

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â&#x20AC;&#x201A;

Organisationâ&#x20AC;&#x201A; | Kiilto Family

Genuine responsibility can be seen and felt The sustainability, stability and approachable ownership of the operation provide a good foundation for growth for a close-knit work community that pursues common goals. Consequently, employees will effortlessly adopt the culture and procedures of the company and take responsibility for the development of their own work. It is essential that everyone internalises the objectives and responsible procedures of the company and implements them â&#x20AC;&#x201C; with their own personal touch for the best results. Diversity generates new points of view and creates real added value to the operation of the company. In the companies of our group, responsibility is channelled elegantly and comprehensively through our employees. I believe that every person wants to do the right thing and do it well. Everyone has the ability to think, see and understand. People have extensive freedom to make responsible choices in their own work. When we offer an opportunity for this, the self-direction and responsibility for work naturally grow to where they should be. The advancement of responsible operation will never end. However, there should be some leeway in determining the adequate level of action. Currently, substantial amounts of bureaucracy and energy are used to raise the level of responsibility in Finland. Raising the level globally should also be an important goal, including all phases of subcontracting chains. A company cannot split its responsibility into separate parts when all depends on the overall responsibility and the quality of the whole operation. It must be so clear and transparent that a consumer, jobseeker or someone needing information can easily and independently determine which company is responsible enough to cooperate with. The information reported must be adequate, relevant and verifiable. The operating environment is also self-correcting: if a company is skating on thin ice or demonstrates neglect, it becomes marked and loses out. We are already quite close to this level of transparency in Finland and the pervasive digitalisation of society pushes the development ever further. Simply complying with the legislation is not yet enough. The company faces expectations from several directions and it must be able to respond to them. When responsibility is genuinely a core part of the company, it does not need to be separately emphasised. It can be seen and felt in all activities and interactions of the company and it follows general development. It consists of many intangible things, a unity made of small parts. For Kiilto Family Group, responsibility has a genuine, true significance.

Erkki Solja CEO, Kiilto Family Oy

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Responsibility report


Organisation  | Kiilto Family

Kiilto Family Group The story of Kiilto Family Group began in 1919 when Kiilto Oy was founded. Today, the Kiilto Family Group consists of seven companies and their subsidiaries operating in different fields and ten different countries. The group has been owned by the same family throughout its history. Kiilto Family Group include the parent company Kiilto Family Oy where the economic, information and human resources management of the group have been centralised, Kiilto Oy, KiiltoClean Oy and their international subsidiaries which operate in the chemical industry, and Ramport Oy as well as Kiiltoplast Oy, Intermedius Oy and Metalpak Oy which operate in other fields.

Personnel 2014

806

persons Turnover 2014

152.4 MEUR Profit 2014

10.7

KIILTO FAMILY OY Field of activity: parent company of the group Unit: Lempäälä

MEUR

KIILTO OY Field of activity: primers, levelling compounds, waterproofing membranes, plasters, adhesives, sealants, parquet lacquers and oils, thinners, foundry products Unit: Lempäälä KIILTOCLEAN OY Field of activity: washing, cleaning and care products, cleaning machinery and cleaning utensils, hygiene products as well as industrial chemicals Unit: Turku, Hankasalmi RAMPORT OY Field of activity: products for the furniture and carpentry industry Unit: Tampere

Profit 2014

7.0

per cent Turnover distribution 2014

KIILTOPLAST OY Field of activity: plastic coated papers and boards, rain and safety wear materials, plastic coated textiles Unit: Virrat

INTERMEDIUS OY Field of activity: products for the shoe, textile, steel and engineering industries Unit: Tampere

METALPAK OY Field of activity: metal containers Unit: Lempäälä

International 38%

Finland 62%

The key figures of Kiilto Family are also displayed on page 45.

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Organisation  | Kiilto

Kiilto Oy Founded in 1919, Kiilto Oy is a Finnish, family-owned producer of chemical industry products. Kiilto develops, manufactures and markets adhesives and related products. Kiilto operations are guided by customer-orientation, innovation, domesticity and taking people and the environment into consideration. Kiilto operates in Finland and maintains subsidiaries in nine countries. In 2014, Kiilto Oy and its foreign subsidiaries reported a total turnover of €79.9 million and employed a staff of 360. Kiilto Oy and its foreign subsidiaries are a part of Kiilto Family Group.

Board of directors

Production

Products

Members of the Kiilto Oy board of directors include the CEO as well as the CFO of Kiilto Family Oy (parent company of the group) and the Managing Director of Kiilto Oy.

The production of Kiilto Oy takes place in in-house production facilities in Lempäälä. The production has the “Key Flag” mark of origin.

The board of directors • addresses strategic questions of the company and its subsidiaries • determines annual key objectives • ratifies division and company strategies and budgets addressed by the management group • verifies investments suggested by the management group • obtains information about the market and financial situation of the company, key operational questions as well as quality, environmental and safety issues • determines the result-based bonus payment policy of the company once a year, etc.

Lempäälä production facilities: • chemical plant (1970): chemical production • Dry Mix plant (2006): production of powdered goods • polymerisation facility (1981/2006): production of in-house raw materials (dispersions)

• adhesives • waterproofing membranes • levelling compounds for floors and walls • plasters and grouts • bonding and adhesive sealants • parquet lacquers and oils • thinners • foundry products

Corporate responsibility expertise is comprehensively represented in both the board of directors and the management group.

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Responsibility report

Regional warehouses • Vantaa (1982) • Oulu (1984) • Kuopio (1989) Raw material warehouse • Rauma (1984)

Unit changes during the review period 2012–2014 (new, closed or extended units) • subsidiary in Kazakhstan (TOO Kiilto-Klei) Significant changes in the supply chain during the review period 2012-2014 • discontinuing targeted shipments with in-house equipment (warehouses in Lempäälä, Kuopio, Oulu) (logistic optimisation) • outsourcing thinner packaging (work hygiene) • introducing a voice controlled collection system in warehouse (logistic optimisation) • introducing an automatic packaging system for waterproofing membranes (logistic and ergonomic optimisation) • introducing an enterprise resource planning system (system and logistic optimisation) • expanding production in Russia (optimising supply reliability and customer service in Russia, reducing transport in Finland)

Operating areas and customers • building and interior design trade • construction and contractor companies • wood and metal industries

• sandwich sheet industry • filter industry • building element industry

• paper processing and packaging industries • footwear industry • foundry industry

International subsidiaries of Kiilto Oy Kiilto has international subsidiaries in Sweden, Russia, Poland, Estonia, Latvia, Lithuania, Ukraine, Belarus and Kazakhstan. There are two production facilities in Russia which manufacture products for the local market. The Russian operations are introduced on page 50.


â&#x20AC;&#x201A;

Organisationâ&#x20AC;&#x201A; | Kiilto

Kiilto grows steadily and responsibly Financial stability is important for Kiilto. Healthy profits allow us to develop our company persistently and to make new investments even during challenging economic times. The stability of our operations means reliability and continuity for our customers and personnel. We focus on financial responsibility in our international operating environment as well, even if it means slower growth. We seek especially international growth. The significance of exports increases continuously, which entails directing sufficient resources towards our foreign subsidiaries. We strengthen this process by organisational changes, among other things. We have investigated the possibility of company takeovers in our export destination countries. If the takeovers are realised, they bring us the possibility of growth but also increase our challenges. In accordance with our vision, we pursue regional market leadership in our current operating environments. In Finland, we are market leaders in construction products, industrial adhesives as well as furan resins used by foundries, and we work hard to maintain this position. We are still a long way from regional market leadership in the other countries that we operate in. In our field of operation, establishing a position in the market requires persistent and determined work. We have operated in Finland for almost a hundred years and for almost up to 30 years in our export destination countries. Because our vision reaches the year 2080, we can proceed in a calm manner and ensure the correctness of our path along the way. RESEARCH AND DEVELOPMENT AS ENGINES OF GROWTH It is challenging to find new fields or product groups for growth in our current operating environment but we are actively searching for them with our own product development as well as by cooperating with research and educational establishments. For example, in 2014 we initiated a diploma project in which different fire retardants are researched. In the future, their market can grow significantly because of the construction of wooden blocks of flats, among other things. LOCAL PRODUCTION A STRENGTH IN RUSSIA We have two production facilities in our main area of growth, Russia. They are our only factories located abroad. Because

of local production, our operations there have stayed secure despite import restrictions and currency changes. In Russia, the key question in the long term is how the political and economic situation there will develop. Will they continue to welcome Western ways of life and technology or will the country close in on itself? I firmly believe that the problems that started in 2014 are temporary. Naturally, we are following the situation continuously and we will react accordingly. EMPHASIS ON THE ENVIRONMENT AND SAFETY CONTINUES TO INCREASE Environmental issues have been at the centre of our operations for a long time, and the emphasis on them continues to increase especially because of climate change. All companies in the chemical industry must continuously and increasingly pay attention to caring for the environment. Our responsibility for safety is also great. We must ensure the safety of our products from production to end use. In our production we have, for example, minimised the use of solvents and harmful substances. We ensure the safety of the end user by providing comprehensive and accurate information about the product and its use. In addition, our extensive product training and guidance advice in the safe use of the products. We currently train approximately 5,000 people annually in Finland. In the future, we will invest even more in product use training with, for example, our electronic training programme, eKiilto. Operators in the chemical industry actively exchange points of view and information on environmental and safety issues via expert meetings, benchmarking practices, reporting mutual indicators, etc. In this way, better practices can be pursued together. Although Kiilto is a small operator amongst international chemical companies, that does not stop us from belonging to the international elite in some fields. The safety practices of the chemical industry are one of those fields.

Antti OK Nieminen Managing Director of Kiilto Oy

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Organisation  | KiiltoClean

KiiltoClean Oy KiiltoClean Oy is a part of Kiilto Family Group, a leading Finnish supplier of cleaning and hygiene solutions and an internationally strong operator. KiiltoClean develops and manufactures domestic products that are safe and user friendly. The product selection includes washing, cleaning and care products, hygiene products, industrial chemicals as well as cleaning utensils and machinery. In 2014, KiiltoClean Oy and its subsidiaries reported a total turnover of €53.6 million and employed a staff of 300 in six different countries.

Board of directors

Products

Members of the KiiltoClean Oy board of directors include the CEO as well as the CFO of Kiilto Family Oy (parent company of the group) and the Managing Director of Kiilto Oy. The Managing Director of KiiltoClean Oy participates in the work of the board within the framework of his/her duties.

• professional cleaning agents and floor care products • professional kitchen hygiene products • hygiene products for food industry • products for personal and hospital hygiene • textile cleaning products for professional use as well as commercial laundry products • industrial chemicals for metal and paper industries • cleaning and hygiene products for primary production • cleaning, laundry detergent and personal hygiene products for households

The board of directors • addresses strategic questions of the company and its subsidiaries • determines annual key objectives • ratifies division and company strategies and budgets addressed by the management group • verifies investments suggested by the management group • obtains information about the market and financial situation of the company, key operational questions as well as quality, environmental and safety issues • determines the result-based bonus payment of the company once a year, etc. Corporate responsibility expertise is comprehensively represented in both the board of directors and the management group.

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Responsibility report

Consumer brands • Serto (Laundry detergent products) • Erisan (Personal hygiene and laundry detergent products) • Kiilto (Household cleaning) • Linna (Personal hygiene products) • Erioil (Skin care products)

KiiltoClean Oy was founded in 2003 when it separated from Kiilto Oy to form its own company. In 2010, KiiltoClean merged with another major cleaning industry operator, Farmos. The Turku plant of KiiltoClean is pictured.

Production facilities and foreign subsidiaries The main office of KiiltoClean is located in Turku. KiiltoClean products are developed and manufactured in the Hankasalmi and Turku factories in Finland. In addition, KiiltoClean has a sales office in Espoo. The products and services are also sold via our own subsidiaries in Russia, Estonia, Latvia and Lithuania. KiiltoClean has its own production facility in the St. Petersburg area in Russia which manufactures KiiltoClean products for the Russian demand. The Russian operations of KiiltoClean are introduced on page 51.

Operating areas and customers • professional cleaning • professional kitchens and HoReCa (Hotels, Restaurants, Catering) • food hygiene • hospital hygiene • metal industry and paper industry • commercial laundries • primary production • households

Unit changes during review period 2012–2014 (new, closed or extended units) • logistics centre to Raisio • renovation of premises in Espoo • ceasing aerosol production in Turku Significant changes in the supply chain during review period 2012–2014 • Optimising transport between Raisio and Hankasalmi (logistic and environmental optimisation)


â&#x20AC;&#x201A;

Organisationâ&#x20AC;&#x201A; | KiiltoClean

Work on responsibility supports the profitable growth of KiiltoClean We have been able to improve our results in recent years. We have fared well, but we will require even more of ourselves in the future. Securing growth has required us to rearrange some of our procedures as well. We centralised our logistical services at Raisio. This has improved both the cost efficiency and the environmental load of transportation. This arrangement is better than before for our customers as well: they receive all services required to order products from the same service point. Parts of our organisational model have also been changed to support our strategy of profitable growth. We clarified the areas of responsibility and division of work. Although the generally poor economic situation and decline in demand have limited the opportunities for growth in some respects, they are not stopping us from progressing. We have our own strategic direction, our own business objectives and our own practical work. When we succeed in them, profitable growth is possible even in a challenging operating environment. We are investigating the possibility of company takeovers as one way to grow. Work on responsibility is essential for our strategy of profitable growth. Our responsibility focus points are environmental and product safety, the well-being of people and successful business. All of the above are at the centre of our operations and distinct objectives have been determined for each sector. Six responsibility teams are responsible for the concrete furthering of our work on responsibility. The teams, in cooperation with the company management, determine annual objectives and what needs to be done to achieve them.

CUSTOMERS AS THE MIRROR OF RESPONSIBILITY Our customers are increasingly interested in the practical fulfilment of the responsibility principles of KiiltoClean. For us, our customers are a mirror that presents direct feedback on whether we are seen as a responsible operator or not. Openness and transparency are central in responsible business. People have to be able to trust that what it is they hear from a company is true. The value placed on domesticity and local production has grown significantly in recent years. Naturally, this is a positive direction for us and it creates the basis for growth and profitable business. Consumers are interested in the safety of chemicals and it stimulates a lot of discussion as well. It is important that public discussion is based on facts. Consequently, both KiiltoClean and other companies in this field of operation must provide information about the properties of chemicals and consumer products that is transparent and verified by research. Tending to the safety of both the processes as well as product use is a key responsibility of the companies in this field. KiiltoClean pays special attention to the information and guidelines related to products so that both consumers and professionals have current and correct information available to them about the safe and appropriate use of our products.

Kari Vainio Managing Director of KiiltoClean Oy

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â&#x20AC;&#x201A;

Organisationâ&#x20AC;&#x201A; | Kiilto

Kiilto Oy Operating systems and standards of Kiilto

Recognising the key aspects of corporate responsibility

Corporate responsibility is a part of the operating principles, organisational culture, strategies and daily activities of Kiilto. Responsibility is a central and essential part of quality at Kiilto. The principles and practices of corporate responsibility are implemented and controlled with the certified, integrated ISO 9001 Quality Management system of Kiilto Oy as well as a related management process. The quality management system has been integrated with an environmental programme compliant with the ISO 14001 standard, an occupational health and safety programme compliant with the OHSAS 18001 standard, International Council of Chemical Associationsâ&#x20AC;&#x2122; Responsible Care (RC) programme for sustainability as well as the principles and key topics of the ISO 26000 standard for social responsibility.

This report depicts the key aspects of the corporate responsibility of Kiilto as well as the actions, goals, objectives and outcomes related to them. An environmental and safety responsibility team consisting of in-house experts evaluates the key aspects of the corporate responsibility of Kiilto and their significance and realisation on the basis of the aforementioned standards, sustainability and stakeholder perspectives as well as taking our own field and operating environment into consideration. The team also monitors that the environmental and safety systems comply with the standards, that risk evaluation of environmental and safety issues is up-to-date as well as the contents and updating of the Kiilto corporate responsibility report. In addition to the environmental and safety responsibility team, the key aspects of the corporate

responsibility of Kiilto are also identified, evaluated and monitored by in-house RC and other expert teams as well as the people responsible for specific operations or tasks. RC teams report to the environmental and safety responsibility team, which reports to the management. The management informs the board of directors of the most important issues related to corporate responsibility. Kiilto tracks key aspects via indicators, internal audits, management quality, environment and safety reviews, process reviews, risk evaluations, self-assessments, aberration reports as well as other practices introduced in the quality handbook. These practices ensure that the relevant aspects of the social responsibility of Kiilto are recognised, monitored and taken into account in strategies, decisions and goals.

KIILTO AND KIILTOCLEAN RISKS AND RISK MANAGEMENT The most significant risks may be accidents related to property, interruption of operation as well operating and product responsibility. In safeguarding against them, proactive risk assessment and management measures and insurances included in the certified Quality Management system are utilised. The risks related to business are evaluated annually during the formulation of business strategies and budgets as well as in the examinations of in-house expert teams. The management teams of the companies evaluate the risks and their management during the drafting of the annual report of activities.

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Responsibility report


Organisation  | KiiltoClean

KiiltoClean Oy Operating systems and standards of KiiltoClean The operations of KiiltoClean have been certified according to the ISO 9001 Quality Management system and the ISO 14001 environmental programme. The certified OHSAS 18001 occupational health and safety system guides the management of occupational health and safety. In addition, the quality and responsibility of KiiltoClean is ensured by the ISO 13485 Quality Management system, which comprehends the production and marketing (CE-marked products) of medical devices (e.g. health care disinfectants) and guarantees their traceability. KiiltoClean has committed to following

the general principles and guidelines of the International Council of Chemical Associations’ Responsible Care (RC) programme for sustainability as well. In accordance with this programme, KiiltoClean monitors the environmental impact of its operations, such as emissions and the consumption of water and energy. The company also enhances its product and work safety, well-being of the work community as well as open communication and cooperation guided by the principles of the RC programme.

Recognising key aspects of corporate responsibility This report depicts the key aspects of the corporate responsibility of KiiltoClean. KiiltoClean has six responsibility teams with the task of developing corporate responsibility activities. The composition of the teams ensures that their work encompasses all areas of business. The teams identify areas of development, set goals for their own operating areas, devise plans to reach the objectives as well as compile and report agreed indicators. The work of the responsibility teams is interconnected with the RC action and its principles. The responsibility teams are guided by the QEHS (Quality, Environment, Health and Safety)

management team, which consists of the chairmen of the responsibility teams and the board of directors. The management informs the board of directors of the key issues related to corporate responsibility. KiiltoClean monitors the key aspects and analyses the results of the previous year with the help of indicators, internal audits, management reviews, process reviews, risk assessments and aberration reports. These practices ensure that relevant aspects of the social responsibility of KiiltoClean are recognised, monitored and taken into account in strategies, decisions and objectives.

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9


Business and management

Responsible business of Kiilto and KiiltoClean Producing solutions for customer needs is at the core of Kiilto and KiiltoClean operations, the goal is to be the best partner in the business for the customer. Responsibility in business means caring for the operating environment, creating added value for all stakeholders. It means sustainability, reliability, the durable management of products and operations. The key phrase for the operations of both companies is overall quality. In addition to product quality, it encompasses all the strategic and operational procedures associated with products, personnel, other internal operations as well as external stakeholder relations and operations. Taking environmental, health and safety considerations as well as other facets of corporate responsibility into account is absolutely necessary for overall quality. Standardised quality, environment and safety systems as well as responsibility programmes are utilised in the monitoring of the level of overall quality All aspects of overall quality are concretised in the annual strategies, objectives and operating plans of every business unit and division. At the core, the idea is to raise overall quality in both the companies and their stakeholder groups by the principle of shared mutual value. Kiilto and KiiltoClean are actively involved in developing their industry, anticipate amendments to legislation and regulations, and co-operate with the experts and authorities connected with the fields of their customers as well as their own. The cornerstones of responsibility are adhering to all laws and regulations and respecting the international agreements and documents related to your field of operation. In Kiilto and KiiltoClean, responsibility also encompasses the aspiration to exceed the minimum requirements of legislation and to be a pioneer, a good example and a partner that strives for mutual benefits.

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Responsibility report

Strategic management of Kiilto and KiiltoClean

THE CORE OF KIILTO OPERATIONS: Comprehensive bonding solutions.

THE CORE OF KIILTOCLEAN OPERATIONS: Creating cleanliness

THE VISION OF KIILTO: We engage in the profitable manufacture and sale of products in 2080 with the goal of regional market leadership. *

THE VISION OF KIILTOCLEAN: We are the leading supplier of hygiene and cleanliness solutions for professionals and consumers in selected areas of operation. **

Output

Added value for stakeholders

Operational impact

Core business

Vision

Overall quality

Information

Products

Finance Product development

Quality policy and principles

Financial responsibility

Services

Expertise and know-how, material and energy efficiency, production safety, product safety, well-being of personnel, environmental well-being

Production

Technology

Human resources

Marketing

Business and strategy processes

Product safety

Corporate culture

Social responsibility

Environmental responsibility

Stakeholders Laws

Decrees

Agreements

Standards

* The long-term vision for Kiilto was determined when the company had been in operation for 80 years in 1999. The vision was projected 80 years forwards and it represents the long-term operating model of the company. ** The long-term vision for KiiltoClean was determined in 2010. In the background was the merge between KiiltoClean and another major cleaning industry operator, Farmos, and the ensuing expansion of market potential and operations.

With their business operations, Kiilto and KiiltoClean respond to the expectations of stakeholders and create added value for them. The core processes of the business are the customer and product development process as well as the order and shipment process, which is represented in the form of a supply chain on this page. Support processes of the business include technical improvement and maintenance as well as the economic, information and human resources management processes administered by the parent company, Kiilto Family Oy. Strategic management is a key business process for the companies. It guides the formation of the strategy as well as the operation of the core and support processes so that strategic objectives, overall quality and stakeholder expectations are realised. Corporate responsibility is an intrinsic part of business processes and the formation of the strategy. The critical elements of business processes are mirrored in the key aspects of corporate responsibility as well. The strategic process is continuous effort which extends to all operations of companies. At the highest level, the strategic process is supervised in both companies by a management team that convenes monthly. In addition, the quality of operations is evaluated by the management with regular process reviews as well as management quality, environment and safety reviews. The management also expresses views on the decisions applied, and decrees development work according to the information reported.

KIILTO AND KIILTOCLEAN STRATEGIC STRENGTHS • Product development, production and service close to the customer. • Specialised knowledge in each customer sector, strong organisation of customer service. • Product systems and total service solutions. • Customer training and guidance. • Environmentally sustainable production processes. • Financial stability. • Implementing the Finnish concept in the international market as well.


Management and supply chain

MANAGEMENT PROCESS (STRATEGIC PROCESS) The management groups of Kiilto and KiiltoClean guide and monitor the operation of the whole organisation and process performance at the highest level as well as supervise the achievement of strategic goals and fulfilment of stakeholder expectations. The management teams report to the board of directors of their company. Management practices are evaluated and developed via personnel surveys, audits, self-assessments, etc.

Existing and potential and stakeholder groups; needs and expectations.

Examination and analysis of the operating environment. Recognising and evaluating needs and opportunities as well as threats and risks. Determining the objectives.

Forming the strategy. From strategy to action.

The satisfaction and commitment of stakeholders. Operational monitoring and evaluation. Operational management and development. Impact control.

Process teams, operating units, responsible parties for specific operations, quality, environment, safety and occupational well-being organisations

SUPPLY CHAIN (ORDER AND DELIVERY PROCESS) Product safety and quality control are core elements of the supply chains of Kiilto and KiiltoClean. They are a part of everything from the selection of raw materials to production and the delivery of finished products. The successful management of the supply chain also includes close cooperation with the customer and product development process.

EACH CORE AND SUPPORT PROCESS IS GUIDED BY A PROCESS TEAM, WHICH • determines the key customers and needs of the process • determines the connections with other processes • determines the indicators to be monitored and the practices for their collection and monitoring as well as evaluates whether the process is generating the desired results • identifies challenges related to the suppliers and stakeholders of the process • evaluates the internal and external challenges of the process • identifies and documents the risks and opportunities of the process, determines management practices and evaluates their effectiveness • evaluates the adequacy of the resources for efficient operation • continuously and actively considers and implements development projects which improve customer satisfaction

KIILTO AND KIILTOCLEAN SUPPLY CHAINS IN NUMBERS Kiilto Customers (no.) Customer orders (pcs.) Gross production (t)

Raw material sourcing

Customer and product development process

Support processes

Management and planning of production

Production

Packaging

Product storage

Customer deliveries

32,000

62,000

17,000 2,000/2,600*

Purchased raw materials (pcs.)

500

500

Suppliers of raw materials (pcs.)

200

100

supplier type Customer order processing

4,280

30,000 850/1,560*

Products (pcs.) QUALITY CONTROL/QUALITY ASSURANCE

KiiltoClean

3,260

manufacturer/importer

Purchase orders (pcs.)

1,600

2,500

Outgoing deliveries (t)

270 t/day

50–100 t/day

* taking different package sizes into account

In-house raw material production (Kiilto)* * The Kiilto polymerisation facility in Lempäälä manufactures bonding agents for water-soluble adhesives

Responsibility report

11


Stakeholders

Rewarding dialogue with stakeholders Extensive dialogue practices help Kiilto and KiiltoClean develop responsible practices and total quality management together with stakeholders. Kiilto and KiiltoClean engage in a structured and continuous dialogue with their stakeholders through multiple interaction channels. This dialogue allows the companies to develop their products, services and other operations to meet stakeholder expectations as thoroughly as possible. The companies expect that their cooperation partners also take responsibility into account in their practices. The dialogue contributes to the kind of conditions that allow stakeholders to fulfil their own responsibility goals. Recognising and reacting to stakeholder expectations is an essential part of responsibility. Kiilto and KiiltoClean gather information about both corporate customer and consumer expectations via customer surveys, consumer research, etc. Personal customer and training encounters are also important channels for the gathering and

sharing of information. Kiilto and KiiltoClean measure customer satisfaction with several internal indicators, such as the number of complaints and customer feedback reply rate. Annual developmental discussions are a key tool for mapping the expectations and needs of personnel. In addition, personnel surveys investigate employee well-being, coping at work as well as expectations towards the employer. Indicators have been determined for responding to stakeholder expectations as well as for the goals of Kiilto and KiiltoClean regarding stakeholders, the development of which is monitored in affiliated work and reports, strategy reviews and management surveys. Communication procedures are described in the Quality Management system guidelines and operational and process descriptions.

â&#x20AC;˘ The primary stakeholders of Kiilto and KiiltoClean are customers, personnel, representatives of society, suppliers of raw materials as well as owners. â&#x20AC;˘ The companies have determined their stakeholders by applying the ISO 9001, ISO 14001 and ISO 26000 standard guidelines and perspectives. â&#x20AC;˘ The stakeholders have been identified based on business operations and the core and support processes portrayed as well as management system.

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Responsibility report

The customers of Kiilto appreciate good customer service and domesticity In November 2014, Kiilto investigated via a customer survey how essential the corporate responsibility traits of Kiilto and the manifestations of responsible business are regarding the operations of customers. In addition, the customers were able to review the implementation of the responsibility communications of Kiilto. 541 people answered the survey. The respondents rated those practices that make their own work safer and easier as the most essential. The dimensions of good customer service were positively emphasised: reachability of product advice as well as product tailoring to customer needs received particularly high essentiality points. The three most important responsibility traits according to customers: 1. Kiilto has an in-house product development department which designs products suitable for Finnish conditions and customer needs; 95% of respondents rated this trait as important or very important. 2. Product advice can be obtained quickly and easily; 95% of respondents rated this trait as important or very important. 3. Kiilto invests in innovative product development; 94% of respondents rated this trait as important or very important. In addition, the domesticity of Kiilto was important or very important to 93% of respondents.

Consumers appreciate the domesticity and safety of KiiltoClean products KiiltoClean monitors the development of its brands through an annual consumer survey. According to the 2014 survey, the body and face care brand Erisan is the fourth most known brand immediately in the wake of international cosmetic giants. 10% of respondents described Erisan as gentle and suitable for all skin types. Relative to its market position, Erisan is a very positively distinguished brand. Laundry detergent Serto is also the fourth most know brand in its category. According to the survey, being phosphate and zeolite free as well as domesticity were the most renowned qualities of Serto (13% of respondents). Serto is considered user-friendly and good value for money. Kiilto is the second most known brand in the household cleaning industry. 25% of respondents were spontaneously familiar with Kiilto. It is considered a domestic (24%) and reliable (26%) home cleaning expert. 900 Finnish consumers answered the survey.


Stakeholders

STAKEHOLDERS OF KIILTO AND KIILTOCLEAN Responding to stakeholder expectations

Stakeholder

Stakeholder expectations

Expectations of Kiilto/KiiltoClean

Interaction channels

Customers: Product users/ refiners, product traders, end users/consumers. Indirectly affecting: designers, supervisors, expertise of the customer.

The right solution for a specific need. Increasing expertise and competitiveness. Product quality and reliability, customer service and reachability. Knowledge, expertise. Commercial benefits. Responsibility in operations and products.

Confirming and developing the customer relationship. Taking care of our operating environment.

Functional, safe and eco-efficient products, comprehensive product selection. Product development, innovation. Employee expertise, operational reliability and speed. Customer-oriented process management. Functionality of customer service as well as product information, guidance and training. Competitiveness of price/quality. Responsible procedures.

Customer meetings, customer involvement in product development, customer training. Extensive customer service organisation divided into specialised fields. Responsibility surveys, web-based dialogue channels and other data collection from the customer. Customer magazine. Expert networking, industry cooperation, public impact.

Personnel

Job certainty, wage level and advancement. Occupational well-being and safety. Developing expertise and career progress. Social benefits. Equality.

Ensuring a competent, dedicated and productive workforce. Taking care of our operating environment.

Occupational well-being programme for personnel. Practices for occupational health care and safety. Continuity and location of operations. Education and career progress opportunities. Incentive and reward policies. Annual themes and Kiilto principles.

Practices of the occupational well-being programme. Personnel surveys and developmental discussions. Employee events and internal meetings. Cooperation meetings. Intranet dialogue channels and other in-house communications. In-house expert organisations. Employee representation in management. Trusteeship practices. Innovation activities and activating campaigns. Training, expertise registry. Industry cooperation and promotion of interests. Occupational health care.

Owners and investors

Profits, risk management and stable development of the operations.

Financial control. Growth, development and continuity. Taking care of our operating environment.

Ensuring the profitability and financial stability of the company. Controlled growth.

Board work and company meetings. Management reports. Annual report and responsibility report. Networking, co-operative bodies and representation. Meetings and other communications.

Suppliers of materials, information, service or work.

Commercially profitable partnership. Performance achievements. Remaining as a supplier. Ensuring competitiveness and reputation, growth (volume development of purchases made by Kiilto and KiiltoClean). Good interaction with Kiilto and KiiltoClean.

Adhering to quality and responsibility principles. Receiving materials and professional knowledge that meet the requirements. Ensuring competitiveness and renewability. Fostering, developing and communicating company image and brand. Adhering to laws and regulations. Taking care of our operating environment.

Willingness to cooperate, supplier satisfaction, being a reference. Volume development of purchases. Negotiable price level. Liquidity. Clear assignments. Sufficient product specifications.

Meetings, point of view exchanges. Consulting, training. Shared customer meetings. Expert networking, industry cooperation.

Officials, operating environment: Municipalities of operation, the state, employment and environment officials, health and safety officials, economy and trade officials as well as other influential operators. Media.

Tax revenues and employment, general well-being. Domestic product selection, local investments. Monitoring and reacting to the risks and opportunities of the chemical industry. Monitoring and influencing changes in the legislation. Preserving natural resources, reacting to the climate change. Receiving information and support. Help for solving grievances.

Ensuring favourable circumstances and permits for operations, ensuring know-how and technology. Ensuring the sufficiency of resources. Benchmarking of good practices. Ensuring a positive company image and reputation. Taking care of our operating environment.

Supplying jobs, employment projects. Profitable and growing business. Domestic product selection. Location and extension decisions, investments. Responsibility programmes. Consultation, exchange of information, cooperation. Expert statements and articles.

Cooperation practices, communication practices. Inspections, announcements, reports. Meetings, point of view exchanges. Cooperation projects. Networks and contacts. Benchmarking.

Educational establishments, other operators in the field of education, research institutes.

Supporting studies, developing training programmes and materials, expert advice. Developing occupational expertise and work preparedness. Developing science and technology and their reachability.

Ensuring know-how and technology. Developing new ideas and solutions Promoting industry image. Ensuring the sufficiency of resources. Taking care of our operating environment.

Offering trainee and seasonal positions, familiarisation events as well as thesis opportunities. Research cooperation. Bursaries, grants, donations.

Meetings, point of view exchanges. Cooperation projects, exhibitions and training events. Apprenticeships, work practice programmes.

Associations, organisations, volunteer work

Supporting operations. Receiving information and support. Chance to have an impact.

Promoting health, culture and well-being. Strategic cooperation potential.

Continuous and consistent support operation.

Assistance and cooperation projects and work related to them. Shared campaigns. Responsibility report

13


Environmental and product safety Kiilto and KiiltoClean products are designed, developed and manufactured in Finland. Product development is founded on a deep understanding of the conditions and user environment in Finland. The development of each new product is connected not only to the functional properties determined by the customer, but also closely to environmental and safety considerations. The customer can be confident that they will receive a reliable total solution that is as safe as possible to the user and the environment. Responsibility in raw material choices and production processes ensures the safety of the manufacturer and the production environment as well. Versatile cooperation means that responsibility is developed and strengthened throughout the whole supply chain.

Environmental and product safety aspects The key environmental and product safety aspects of Kiilto and KiiltoClean operations concern chemical, energy and water use, by-products of processes as well as the transportation of raw materials and products. This segment represents the effects of, indicators determined by as well as mitigation measures related to those aspects.


Environmental and product safety

Responsible choices throughout the lifecycle of the product

Customer Customer needs guide product development. Kiilto and KiiltoClean participate in the financial performance, efficiency and competence development of their customer with their own product and service concept. Cooperation in product development with the customer ensures a practical feel of the customer’ usage area and technology. Consequently, future signals can be detected as early as possible.

Raw materials

Packaging

Logistics

Product development and production

Kiilto and KiiltoClean require that the materials are safe for the user and the environment and that they ensure the product’s functionality and competitiveness. Raw material purchases are always based on objective criteria such as quality, price, ability to deliver and responsibility. The environmental impact of a single raw material is estimated on the basis of information provided by the supplier and its effects compared with the effects of a possible replacement material.

Both companies require that the packaging supplier complies with the generally approved quality and responsibility operating models. If possible, the aim is to select a local supplier. The packaging must be – without compromising safety – as light as possible, thus reducing both packaging waste and costs. Keeping the number of various types of packaging to a minimum serves the same goal. One aim of packaging choices is to promote recycling as well.

The centralisation of the transport of raw materials and packaging as well as large container and tank deliveries reduce package waste, emissions and costs. Kiilto in-house raw material production reduces transport and increases self-sufficiency.

Products

Logistics

Product use

After use

Products correspond to the requirements and expectations of customers and end users as closely as possible. More and more products are marked with a badge, the meaning of which is that the product fulfils the requirements for a special level of quality and safety verified by official testing methods. The range of these products in the selection as well as purchase decisions of customers is constantly growing.

The timeliness, accuracy and transport safety of deliveries are quality indicators to monitor the quality of both in-house and the transport company’s operations. Product distribution is carried out with logistics that have the smallest possible environmental impact. The amount of packaging waste for the customer is reduced by large container and tank deliveries. Local production in Russia minimises transportation needs from Finland.

The customer receives a technically and environmentally safe and economically optimal product. Customer training and guidance continues even after product delivery. Kiilto educates professional customers at an inhouse training centre, regional warehouses and on the Internet about the proper and safe use of products, systems and methods. KiiltoClean consistently instructs on the safe use of products as well. The company provides customers with product and user training as well as practical dosage devices and systems. All products have clear operating instructions.

Available clear product disposal instructions help the customer dispose of product residues and empty packaging in the correct manner.

In-house product development reacts quickly to customer needs, changes in legislation and technological developments. It seeks solutions that are ever better for the user and the environment, sustainably manageable and competitive. Local production minimises the environmental impact of operations and enhances supply security. KiiltoClean products are manufactured in Turku and Hankasalmi and Kiilto products in Lempäälä. Closed manufacturing and batch specific processes as well as dosing and transfer solutions generally ensure that production does not generate by-products and emissions to soil, air and water can be minimised.

Responsibility report

15


Environmental and product safety

Taking proactive responsibility The chemical industry processes and produces substances with environmental and safety impacts. Kiilto and KiiltoClean have committed to minimising these impacts in their operations. Considering the environmental and safety aspects equals taking responsibility of the well-being of present and future generations. It is also part of our own risk management and safeguarding of the competitiveness and ability to deliver. Responsible product development is essential to the customer: it ensures technically, functionally and ecologically sustainable and competitive products. REACH AND CHEMICAL LEGISLATION ARE THE BACKBONE OF OPERATIONS The operations of Kiilto and KiiltoClean are strictly guided by chemical legislation. Both companies closely follow changes in chemical legislation, such as what is subject to licence and possible bans. Proactivity is important so that products as well their labels and material safety data sheets are up to date. One important legislative tool in the chemical industry is REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), namely the regulation on the registration, evaluation and authorisation of chemicals of the European Union. As downstream users of chemicals, it is up to Kiilto and KiiltoClean to ensure that suppliers have registered the raw materials in the European registry maintained by the European Chemicals Agency. The registration involves an assessment of the dangerous properties of the substances and the risks related to using them, as well as labelling the substances with information for guiding their safe use. During the review period, changes that affect the operations of Kiilto and KiiltoClean have been made to the chemical

16

Responsibility report

legislation. The transition period for the CLP (Classification, Labelling and Packaging of substances and mixtures) change concerning the classification of chemicals expires in June 2015. Thereafter, all product labels of Kiilto and KiiltoClean will be consistent with the new classification system. Considerable work efforts have been made in both companies because of the classification change. The Biocidal Products Directive of the EU (directive concerning the placing of biocidal products on the market and their use) applies to several KiiltoClean products. Biocides include disinfectants for skin and surfaces, pesticides as well as industrial preservatives for wood, etc.

All active substances in biocide products must be certified under the Biocidal Products Directive and their suppliers must be on the list of approved suppliers maintained by the European Chemicals Agency (Article 95 list). Licences for all biocide products must be applied for in accordance with the obligations and schedules specified in the Biocidal Products Directive. The application process requires special expertise and is time consuming and expensive. The application processes will be an important part of KiiltoClean operations in the coming years and they will also affect the biocide selection of the company. The SVCH (Substances of Very High Concern) list is also under constant scrutiny. Substances that will be subject to licence in the future are listed as SVCHs by the European Chemicals Agency. However, Kiilto and KiiltoClean aim to remove these substances from the production as early as possible and replace them with other raw materials. CHEMICAL INDUSTRY LEADS THE WAY Operators in the chemical industry have a strong cooperation network designed to promote environmental and product responsibility and the development of practices that support them. Kiilto and KiiltoClean are committed to the international Responsible Care (RC) programme of the chemical industry, which is the most long-lived voluntary programme for sustainability in the industry. In accordance with the principles of the Responsible Care programme, Kiilto and KiiltoClean are determined to improve the level of operations and performance in process safety, waste management, emissions, transport and product safety as well as occupational well-being. The companies follow the fulfilment of these objectives via indicators instituted by the programme. Responsible Care has provided Kiilto with tools for responsible operations since 1992. KiiltoClean has followed the principles of the RC programme since 2003 when the company was founded, and Farmos Oy, which merged with KiiltoClean in 2010, since 1994. Sustainable use of natural resources can create new business with the help of chemical solutions. Kiilto and KiiltoClean have investigated the possibility of using bio-based raw materials. The companies have participated in preparatory work for the standardisation of bio-based products in Finland. The standard is a cooperative effort between the Ministry of Employment and the Economy, the Ministry of the Environment and the Ministry of Agriculture and Forestry, and the project is coordinated by Kemesta Association.


Environmental and product safety

RESPONSIBILITY THROUGHOUT THE LIFECYCLE OF THE PRODUCT Environmental and safety responsibility covers the lifecycle of Kiilto and KiiltoClean products all the way from product development and raw materials to packaging choices, production, distribution, use and, finally, disposal of the packaging and product residues. Kiilto manufactures its products at in-house production facilities in Lempäälä, KiiltoClean in Turku and Hankasalmi. Locating production near the consumer as well as carefully selecting raw materials and packaging materials minimises the ecological footprint of operations. Kiilto and KiiltoClean invest in continuously developing product design that takes safety and the environment into account because it is through their products that they can influence the future of the environment the most. Marketing, product development, production and purchasing have a close dialogue with each other to optimise responsibility at different stages of the product chain. Marketing notifies product development of the product needs and responsibility concerns of the customer. Product development is constantly looking for raw materials and packaging options that minimise environmental impact as well as investigating possibilities for using recycled raw materials that are the by-products of other industries. Production invests in environmentally-friendly technology and clean, energy-saving production processes. The aim is to reduce the total amount of waste, the share of wastewater of total water consumption as well as the total amount of energy used per tonne of production. SUPPLY CHAIN EVALUATION IN DEVELOPMENT Kiilto and KiiltoClean require that the suppliers of raw materials adhere to the same or similar quality and responsibility principles that they themselves comply with. Where possible, operators involved with the Together for Sustainability (TfS) programme for sustainable supply chains are taken into account. The backgrounds of new raw material suppliers are investigated by the Kiilto purchasing department and evaluation visits set up with existing suppliers when possible. Assessment procedures for partners are constantly being developed. KiiltoClean utilises a supplier scoring system which will be introduced at Kiilto in 2015 as well. Kiilto and KiiltoClean product development cooperates closely with the purchasing department. New raw material acquisitions

are based on product development needs, but order decisions are made together with the purchasing department. The product must be functional, environmentally friendly and safe as well as competitively priced. Short supply chains minimise transportation costs and emissions and make product origin easier to ascertain. Kiilto and KiiltoClean recognise that special attention must be paid to supply chain management. The companies work consistently to ensure that the consumer has access to reliable information about the origin of the products. Good supplier cooperation is an essential part of meeting the needs of Kiilto and KiiltoClean customers. Suppliers provide information and materials for optimum product solutions. Supplier capability is actively monitored at all times. At the end of each year, a collective assessment takes place separately: in addition to the person in charge of the purchasing of raw materials, other representatives from purchasing, product reception, product development, production and marketing attend. RISK MANAGEMENT IS CARING FOR ENVIRONMENTAL WELL-BEING Anticipating environmental and safety risks is a proactive form of responsibility which benefits, above all, the employees of the company as well as the residents of the operating environment. Taking care of the well-being of both the internal and the external operating environment is part of the responsibility of Kiilto and KiiltoClean. This is ensured by numerous technical and security solutions, guidelines, training and exercises as well as the commitment to safety culture by the entire personnel. In both companies, in-house expert teams coordinate and develop environmental and safety practices in addition to their other responsibilities. The companies describe the operational risks of each workstation and process as well as how to manage them in management risk assessments and safety reports, which are reviewed regularly. Safe transportation and handling of raw materials as well as change management and aberration reports are carefully instructed. Emergency procedures are practiced regularly. Continuous risk assessment, systematic change management and people’s attitude are important factors in achieving and maintaining a safe working environment.

The proportion of new (= less than three years old) products of the total product sales of Kiilto % 30 min. 20%

20

10 25.5

26.6

22

2012

2013

2014

0 Objective 2012−2014 = min. 20% Objective 2015-2017 = objective unchanged

The goal of product development is to maintain a comprehensive and evolving product selection for customer needs. The role of product development in product chain responsibility is significant, which is why both companies invest in it heavily. At Kiilto, the proportion of product development employees compared to all personnel is almost 20%, and at KiiltoClean it is almost 10%.

Responsibility report

17


Environmental and product safety

Responsible together

The cold chain holds

KIILTO: PACKAGING

KIILTO: ENERGY CONSUMPTION

Environmental and safety objective: Reduce packaging waste in in-house raw material purchasing

Environmental and safety objective: Improve energy-efficiency

%

In the Caribbean Sea, under the warm sun, sails the world’s second-largest luxury liner MS Quantum of the Seas. Inside the vessel lies Finnish cold technology: the food used on-board is stored in refrigeration appliances designed and produced by Porkka Finland Oy. – Our business is export-oriented, since 80 per cent of our production is shipped abroad. Finland is still an important market for us: our products are generally used by Finnish companies, Sales Manager Petri Hiilloste explains. Porkka uses Kiilto bonding sealants in the refrigeration appliances they produce for ships. Recently, Kiilto applied for NSF approval for Kiiltoflex K largely due to the needs of Porkka. the US-based NSF (National Sanitation Foundation) certification mark is a classification for products that are in contact with foodstuffs. – Kiilto has always responded to our cries when we have been in need of support, even in difficult cases. When we have had problems in our production, we have received expert help from our partner on-site, Hiilloste rejoices.

GJ/t

100 objective min. 80%

80

0.8

60

0.6

40

0.4

20

0.2 73

70

69

0 2012

2013

2014

Objective 2012−2014: The percentage of raw materials to be stored in tanks for chemical production is at least 80% of all raw material deliveries for chemical production. Objective 2015-2017: Objective unchanged

Environmental and safety objective: Reducing the amount of customer packaging waste

0.61

0.64

2012

2013

2014

KIILTO: TRANSPORTATION ACCIDENTS

% 100 80

The most extensive review and improvement project during the review period was the industry energy analysis, which can be found on page 27.

Objective 2012-2014: Total energy consumption/tonnes produced (declining trend) Objective 2015-2017: Objective unchanged

Environmental and safety objective: Maintaining a zero level for accidents during the transport of dangerous goods

objective min. 70%

60 40 20 61

59

62

2012

2013

2014

0

* IBC = approx. 1000 litre container suitable for industrial customers

Responsibility report

0.63

0

Objective 2012-2014: The percentage of goods (in kilograms) shipped in recyclable Intermediate Bulk Containers (IBC) in Finland is at least 70% of the total volume (in kilograms) of industrial sales in Finland. Objective 2015–2017: min. 60%

18

Heat recovery systems of air-conditioning and process condensation water are utilised in heat production. Cold outside air is utilised in process cooling. Electricity consumption is reduced by using frequency converters for pump, mixer and fan control as well as by optimising mixing and pumping time, etc.

1.0

Year

Accidents

2012

0

2013

0

2014

0

Transport of dangerous goods, percentage of all transports % 5 4 3 2 1

Objective 2012-2014: TDG accidents 0/year Objective 2015-2017: Objective unchanged

3.9

2.9

2.6

2012

2013

2014

0


Environmental and product safety

Kiilto Oy material flows 2012–2014 (PRODUCTION FACILITIES IN LEMPÄÄLÄ) Percentage of in-house raw material production (bonding agents for water-soluble adhesives) is approx. 60% of all bonding agent use.

Raw materials Mains water

2012

2013

2014

54,000 t

54,600 t

53,450 t

Products

2013

2014

64,300 t

65,000 t

62,300 t

21,500 m3 21,000 m3 21,000 m3

Energy Product selection determines the raw material base in which possibilities of using bio-based alternatives are limited. Bio-based raw material options are mapped continuously.

2012

Electricity

19,577 GJ 20,131 GJ 20,675 GJ

Natural gas

19,548 GJ 18,166 GJ 17,899 GJ

Light fuel oil District heating

296 GJ

296 GJ

296 GJ

1,004 GJ

1,033 GJ

976 GJ

Kiilto Oy plants 2012–2014

Wastewater

2012

2013

2014

16,300 m3

16,250 m3

15,860 m3

Industrial wastewater

9,000 m3

8,700 m3

8,600 m3

Sanitary water

7,200 m3

7,400 m3

6,600 m3

Waste

448 t

539 t

649 t

Hazardous waste

8.4 t

21 t

33 t

Waste-to-energy waste

186 t

292 t

337 t

Recyclable/ recoverable waste

254 t

227 t

280 t

Solar power plant output Annual output  37.3 MWh 43.7 MWh 46.0 MWh 2012

2013

2014

2.4 t

2.4 t

2.1 t

VOC emissions* CO2 emissions**

1,451 t 1,020 t 1,006 t

For all washing and other waste, the instructed ways of reuse are preferred. None of the waste goes to landfill: instead, in the absence of other reuse opportunities, the waste is delivered to Ekokem Oy for material recovery.

The washing of equipment causes wastewater which is discharged into the municipal sewage treatment facilities through Kiilto inhouse wastewater clarifiers. A closed-loop process cooling water system recirculates most of the cooling water from production equipment, runs it through the heat recovery system and then re-uses it. Percentage of industrial wastewater of total production volume is low, 14%, due to reuse procedures.

* VOC = Volatile Organic Compound ** CO2 = carbon dioxide

KIILTO: WASTE Environmental and safety objective: Reduce waste volume %

Environmental and safety objective: Limit the volume of dangerous waste to current level %

1.0 objective max. 0.8%

0.8 0.6

%

0.10

100

0.08

80

0.06

0.4

40

0.02 0.7

0.8

1.0

0

0.00 2012

2013

2014

Objective 2012-2014: Total amount of waste maximum 0.8% of production/year New objective: Decrease the amount of energy and recoverable waste Objective 2015-2017: The amount of energy and recoverable waste maximum 0.8% of production/year Additional new goal 2015-2017: Increasing percentage of recoverable waste in the aforementioned total amount of energy and recoverable waste

objective max. 72%

60 objective max. 0.04%

0.04

0.2

Environmental and safety objective: Decrease the wastewater percentage of total water consumption

20 0.01

0.04

0.05

2012

2013

2014

Objective 2012-2014: The amount of hazardous waste maximum 0.04% of production/year Objective 2015-2017: Objective unchanged

77

77.4

73.2

2012

2013

2014

0 Objective 2012-2014: Percentage of wastewater maximum 72% of the total consumption of water/ year Objective 2015-2017: Objective unchanged

Responsibility report

19


Environmental and product safety

Daily work for the promotion of chemical safety Kiilto and KiiltoClean work daily to ensure product safety and that all product information and labels are in accordance with laws and regulations. • The change in CLP (Classification, Labelling and Packaging of Chemicals) regulation has been a multi-year project in both companies. It has been an extensive project from the point of view of product safety and management as well as packaging design. • In connection with the labelling change, material safety data sheets, safety instruction noticeboards in production facilities, transport information of hazardous substances as well as documents and programmes which contain classification information have been updated. • Updated material safety data sheets and other instructions have been sent to customers and in-house sales personnel. • KiiltoClean, for example, has approximately 400 products affected by the CLP regulation change. Even in the best-case scenario, the amount of labels that need to be updated is massive when there can be several packaging sizes of the same product.

HAZARD PICTOGRAMS ARE CHANGING Because of the new CLP regulation, the appearance of hazard pictograms will change and their names (Irritant, Harmful, etc.) will no longer be used. The number of hazard pictograms increases from seven to nine. Former and new hazard pictograms

20

Responsibility report

Responsible together

“Reliability and safety are top priorities”, Rolls-Royce Rauma Plant Manager Teuvo Palo, Machining and Welding Supervisor Markku Verronen and Maintenance Manager Timo Kakko agree.

Minimising chemical risks in propeller production International conglomerate Rolls-Royce manufactures high skill equipment such as aircraft and marine turbines and marine equipment. Strong Finnish know-how underlies the marine equipment production: the plant in Rauma is the world leader in the production of azimuth thrusters. State-of-the-art propellers are not only high quality equipment, but also entirely safe. Careful manufacturing means attention to every detail. – It is a serious responsibility. We have, for example, large machines for the washing of components. Exact information about adhesives etc. is a necessity for the assembly process in order to prevent reactions with detergents. This is essential for customer safety, Rolls-Royce Oy Ab Maintenance Manager Timo Kakko says. The company strives to eliminate process health hazards to employees. Recently, Rolls-Royce Rauma began measuring the microbial load of cutting fluids. It helps keep the machines and fluids clean and ensures that the fluid does not excrete harmful microbiological substances into the breathing air. KiiltoClean has guided the process and offers, among other things, laboratory services for the Rauma plant. – KiiltoClean educated us about the dangers of microbiological cultures and how to prevent them. The topic was interesting and several dozen employees and supervisors participated in the training, Timo Kakko says.


Environmental and product safety

KiiltoClean Oy material flows 2012–2014 (PRODUCTION FACILITIES IN TURKU AND HANKASALMI) Products

Raw materials Mains water Water contained in products

2012

2013

2014

8,603 t

8,736 t

8,786 t

28,200 m

32,300 m

31,948 m

7,410 m

7,315 m

7,616 m

3

3

3

3

3

3

2012

2013

2014

17,002 t

17,097 t

17,211 t

Wastewater

KiiltoClean Oy plants 2012-2014

Electricity

6,771 GJ

6,571 GJ

6,406 GJ

4,788 GJ

5,026 GJ

4,548 GJ

Fuel oil District heating

3,144 GJ

2,802 GJ

2,680 GJ

14,148 GJ

12,391 GJ

10,187 GJ

2013

2014

24,985 m3

24,332 m3

4.5 t

Waste Landfill waste

Energy Steam

2012 20,790 m3

2012

2013

VOC emissions*

4.1 t

3.3 t

1.2 t

CO2 emissions**

228 t

207 t

197 t

19.8 t

8.8 t

Hazardous landfill waste

78 t

43 t

58 t

Reusable waste

72 t

103 t

82 t

2014

* VOC = Volatile Organic Compound ** CO2 = carbon dioxide

Responsible together

Quality and local food Mami, a restaurant in Turku, favours local food and suppliers. According to the owners, it is important to support business in Southwest Finland. Quality is never compromised, neither with food nor with cleanliness. Good hygiene is an essential part of safe dining. Municipal food control authorities inspect restaurants for cleanliness and neatness of workspaces. For example work hygiene habits, the hand hygiene of the employees and work clothes are thoroughly monitored. – Hygiene requirements are strict. A visit from a health inspector opened our eyes. We have had double doors installed into the restaurant and are diligent about appropriate work clothes and

protective equipment, explains Mikko Piipponen, one of the three owners of Mami. Mami personnel use KiiltoClean products in the cleaning of worktops, sanitary facilities as well as all laundry and decalcifying the coffee machines. Cleanliness is as important as the food, especially in the kitchen. – The most important thing is that the cleaning products work well and are safe to use, chef Jouni Virtanen underlines.

Responsibility report

21


Environmental and product safety

Product labels – everything you need to know about a product

MS/ M

Disposal instructions: The product packaging

KIILTOCLEAN:

has a letter code, the first part of which tells the type of the product and the latter the type of packaging. Both have their own disposal instructions which are available on the Kiilto website.

Key Flag: The “Key Flag” mark of origin indicates that a product is made or service is provided in Finland and that it is at least 50% domestic.

NSF: The NSF Mark may be granted to a product

In addition to the instructions for use, product labels provide a lot of information about the ingredients, origin, attributes, use and disposal of the product.

whose raw material composition is certified as being suitable for use in contact with foodstuffs.

Wheel Mark: Adhesives bearing the “Wheel Mark” meet the fire safety requirements of the International Maritime Organization (IMO).

VTT: VTT certification ensures that a product KIILTO:

Key Flag: The “Key Flag” mark of origin indicates that a product is made or service is provided in Finland and that it is at least 50% domestic.

CE: A product is granted a CE marking when it has been tested according to the applicable EU product directive.

M1 label: The M1 label indicates that building materials meet the most stringent emissions classifications for indoor air quality.

or product system meets the requirements of Finnish building regulations and standards when used in accordance with the certificate instructions.

LEED: LEED certification programme aims to reduce the environmental impact of construction and building use.

CG2: The properties of grouts are specified in the EN 13888 standard. Grouts are divided into two groups according to the standard: CG (cementitious grouts) and RG (resin grouts). In addition, CG has been divided into two classes, 1 and 2, of which CG2 is stricter.

CE: Products for the health care sector which have been manufactured according to the EU directive on medical devices bear the CE mark. For some products, a conformity assessment by an independent notified body is required. In these cases, the number of the notified body will be provided under the CE mark. Nordic Swan: The Nordic Swan environmental label is awarded to products that fulfil strict environmental requirements. The environmental impact of the product’s whole lifecycle is considered in the criteria for the Nordic Swan label.

Allergy label: Products developed in co-operation with the Allergy and Asthma Federation that are completely free of fragrances and colouring are awarded the Allergy label. Biodegradability label: If a raw material is classified as readily biodegradable it means that, in nature, at least 60 per cent of its content will decompose in 28 days.

Kiilto Turva safety label: The Kiilto Turva safety label means that the product contains a bittering agent, which prevents ingestion of the product. The use of bittering agents increases user safety especially in households with children.

A colourfully green footprint KiiltoClean investigated the carbon footprint of its liquid laundry detergent, Serto Kirjo, in 2013. It is the first product whose carbon footprint KiiltoClean has accessed. The pilot study revealed – unsurprisingly – that the largest environmental impacts of the laundry detergent were caused at home. The objective of the study was to find out the carbon footprint of the whole supply chain, which areas of development need to be focused

22

Responsibility report

on, as well as how KiiltoClean compares to other manufacturers in the chemical industry. The goal is to develop a practical tool for future needs. Difficulties of calculating the environmental load were noted during the study. Gathering information about the supply chain, for example the transportation of raw materials and packaging, proved especially challenging.

“We will invest in finding good solutions for the minimisation of carbon footprints in our product development in the future as well. We will figure out the things that cause an environmental load and solve them safely without compromising on cleanliness.” Virva Mäkelä, Development Director R&D and QA, KiiltoClean Oy.


Environmental and product safety

Essential for customers:

Beat the dust! Construction sites have many dangerous sources of dust. Dust is a health hazard that exposes workers to multiple diseases. Reducing the amount of dust improves working conditions and reduces accidents as well. Kiilto wants to reduce the dust exposure of construction workers. In 2014, the building department introduced the “Pölinät pois” (Beat the dust) advertising campaign which emphasised the role of low-dust products in the safety of construction and renovation sites. The objective of the campaign was to increase buyer and professional interest in low-dust products.

Responsible together

90%

considered it important or very important that Kiilto provides help with the safe use of the product, wsste disposal as well as emission control, if necessary.

Product safety is customer service Kesko hardware stores, K-rauta and Rautia, sell Kiilto products for builders, contractors and the construction industry. To ensure that living and workspaces are safe and appropriate, Kiilto attends to the functionality and safety of its products in many different ways. This has not gone unnoticed in Rautakesko, the wholesale supplier of K-rauta and Rautia stores. Rautakesko Sustainability Manager Jesse Mether considers building products from the point of view of customer benefit. – Rautakesko wants to offer good living and working in safe buildings for its customers. It is important for individuals renovating or maintaining their homes that they can use the product safely and that nothing harmful is excreted from the product into the breathing air. According to Mether, product safety is an integrated whole. It encompasses the technical quality of the product, functionality, supply security as well as savvy salespeople who recognise the needs of customers. – Kiilto provides extensive training on the use of their products for salespeople and contractors. It is of paramount importance, not only for the correct use and selling of products, but also because the training is part of customer service and a competitive advantage, Mether emphasises.

94%

considered it important or very important that the product label contains the instructions for use.

79%

considered it important or very important that customer training programmes are tailored to suit different needs.

The figures have been extracted from the November 2014 essentiality survey for Kiilto customers.

Responsibility report

23


Environmental and product safety

Responsible together

Washing liquid aids in the prevention of hospital bacteria Sometimes, new product development is initiated directly by the customer. In spring 2013, Jaana Syrjänen, Chief Physician of the Infections Unit at the Tampere University Hospital (TAYS), expressed the needs of her unit in a meeting with KiiltoClean. – I asked, since you already produce the user-friendly Erisept Foam, whether a similar product could be prepared from chlorhexidine, Syrjänen recounts. TAYS and the Pirkanmaa Hospital District have been fighting against the MRSA bacterium for over ten years. No one solution exists for defeating that hospital bacterium, but the antiseptic chlorhexidine has been found useful in the prevention of MRSA. – We wanted to find a useful washing liquid that contains chlorhexidine. It turned out that the strength of existing products was not appropriate and that the packages were not practical for the user. Over the years, the Infections Unit has cooperated with KiiltoClean in many ways and the personnel of the unit feel that their improvement suggestions and comments have been carefully considered at KiiltoClean.

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Responsibility report


Environmental and product safety

KIILTOCLEAN: PRODUCTS

Environmental and safety objective: Maintaining the sales percentage of Nordic Swan label products at the current level.

Detergents, cleaning agents and polishes

Objective 2012-2014: Maintaining the sales percentage of Nordic Swan label products at at least the current level based on sales in euros of the total product category sales.

Objective 2015-2017: Objective unchanged The volume-based sales percentage of Swan Label products of total product category sales is also monitored in two key product areas.

%

50

50

40

40

30

30

20

20

Objective 2012-2014: Swan Label product sales percentage at least 50%

Objective 2015-2017: Maintaining current level Professional cleaning

Objective 2012-2014: Swan Label product sales percentage at least 65%

Objective 2015-2017: Maintaining current level

Essential for customers:

10

10 40.8

40.1

36.6

2012

2013

2014

30.5

32.6

33.2

2012

2013

2014

0

0

Kitchen hygiene*

Professional cleaning

%

%

50

70 50

30

40

20

30 20

10 41.4

42.0

44.6

10

63.5

62.2

65.5

2012

2013

2014

0

0 2013

2014

Volume-based sales percentage of Swan Label products of the total product category sales of equivalent products % 80 70 60 50 40 30 20 10 0

• Safety • Suitable for sensitive skin • Fragrance free Consumers linked these three qualities more often to the Erisan product range than to other skin care brands. The safety of Erisan means, first and foremost, that as few chemicals as possible have been used in the products.

60

40

2012

Detergents, cleaning agents and polishes

Personal hygiene

%

• Speciality products for all cleaning needs • Domesticity • Pleasant packaging Consumers linked these three qualities more often to Kiilto household products than to other similar brands.

71.0 50.8

70.7 50.1

74.8 46.1

2012

2013

2014

Professional cleaning

Detergents, cleaning agents and polishes

* The definition and name of the product range have changed from the previous review period.

The results have been collected from the 2014 brand survey of KiiltoClean.

Responsibility report

25


Environmental and product safety

Responsible together

Clean environment – clean milk Hygiene and product quality, Valio will not compromise on them. Simultaneously, the company also strives to develop more environmentally friendly and safe ways to produce dairy products in close cooperation with its partners. Valio verifies carefully that the processes of its partners are in order and that audits are routinely conducted. In November 2014, Valio personnel performed a risk assessment on KiiltoClean transports. – It is essential that substances are not unloaded into the wrong containers. Mixing of chemicals can lead to unexpected reactions, Environmental Officer Kari Harsia from the Seinäjoki plant of Valio says. This was the first risk assessment in which the process was followed from product manufacturing to unloading. Following the assessment, label information was revised and added onto, for example, the mixture feeding pipes to minimise the risk of substance mix-ups. – I am very satisfied with the assessment. The improvements will certainly also benefit customers other than Valio. We are happy to share our point of view about supplier processes because an outsider will see things differently. That is what makes the assessment worthwhile, Harsia states.

26

Responsibility report


Environmental and product safety

Responsible together

KIILTO PRODUCTS

Product development solved the adhesive problem at Ponsse

2.0

Finnish forest machine manufacturer Ponsse and Kiilto prove that

1.5

challenges can be conquered with cooperation. When the companies pursue the same goal, the result is solid, durable and environmentally friendly. – The problem was finding an adhesive between two painted metal surfaces in the cabin of the forest machine that would hold, bend and produce an elastic adhesive joint quickly, says Ponsse Global Sourcing Manager Jari Winter. – Our previous adhesive did not stick to the painted surface properly. We contacted Kiilto and began searching for a better product together. Finally, we found a suitable adhesive after testing and we switched the plastic tube into a so-called “sausage packaging”, which can be compressed so that it takes up even less space during disposal. Waste caused by the use of adhesives dropped to a fraction of what it was previously, Winter adds.

Material efficiency audit produced a new kind of environmental document The Chemical Industry Federation of Finland chose Kiilto as the pilot company for their investigation on whether the material audit model is suitable for analysing chemical processes. The material efficiency audit tool created by Motiva Oy has previously been utilised in construction and foodstuffs industries. Kiilto examined the efficiency of energy and material use in three of its production processes: at the plaster and levelling compound plant, at the polymerisation facilities and in the production of hot-melt adhesives. In addition, the material efficiency of six individual products was investigated. The audits resulted in the calculation of savings potential and investment costs for each target of possible improvement identified during the project. The most important result for Kiilto was that the efficiency of production was at a good level and that, for example, the amount of by-products was small.

Kiilto included a scientific viewpoint in the 2013-2014 audit as well. Saija Väihinpää, a student at the Tampere University of Technology, wrote her master’s thesis in conjunction with the project and developed an environmental document which explains the environmental impact of products. This new kind of document in the chemical industry increases the transparency of the environmental impacts of production processes and the environmental knowledge of customers. If necessary, the document is compiled on a product-by-product basis.

%

Environmental and safety objective: Reduce the amount of solvents used in manufacturing

objective max. 1.0%

1 0.5 0.54

0.53

0.56

2012

2013

2014

0 Objective 2012-2014: Percentage of solvents no more than 1.0% of total production/year Objective 2015-2017: Objective unchanged

Environmental and safety objective: Increase the sale of all environmentally and safety classified products % 100 80 60 40 20 59

69.5

75.6

2012

2013

2014

0

Objective 2012-2014: Increase the percentage of all environmentally and safety classified products out of all products sold. Objective 2015-2017: Objective unchanged

Responsibility report

27


Environmental and product safety

Research cooperation opens the door to the future

Research cooperation is an essential way for Kiilto and KiiltoClean to strengthen and deepen their competence and, simultaneously, affect the development of new technology and promotion of good practices more broadly. The main scientific partners are Tampere University of Technology and Åbo Akademi University. The research is mostly funded by the Finnish Funding Agency for Innovation (Tekes). Kiilto or KiiltoClean initiate the cooperation projects. When a need for research information arises in the context of practical work, the product developers at Kiilto or KiiltoClean contact the institute most familiar with the topic. The research institute suggests a suitable researcher, who is appropriately compensated for the work. The project is coordinated by the R&D Manager of Kiilto or KiiltoClean. Usually, the research projects last two to three years and employ two to three people.

A thesis that will not remain in a drawer Safety Management and Engineering degree student Tero Järvenpää is one of many trainees at Kiilto Oy. In autumn 2014, Järvenpää began working on a thesis at the Tampere University of Technology that will help Kiilto update the food safety certification of adhesives to the level of current EU legislation. – As a pilot project, I will take care of the certification of two different kinds of adhesives. Based on the project, I will develop an operational model that can be replicated with almost all Kiilto adhesives, Järvenpää says. Previously, the prevailing practice in the food safety certification of adhesives has been to follow US legislation. EU legislation has now become stricter in the matter. However, there is a lack of clear definitions and food safety certification is largely dependent on the interpretations of public officials and instructions from industrial organisations. Järvenpää compiles a summary of the different interpretations and instructions to determine the level needed for food safety certification by the EU. – My goal is to encapsulate the information from many different fields – product safety, legislation and chemisty – into the simplest form possible. This is an interesting project with a clear demand. The results will not remain in a drawer, Järvenpää rejoices.

28

Responsibility report

Kiilto has some product groups which fulfil the requirements of certain classification markings but for which classification has not been sought. EU food safety certification is one example of this. Because of Tero’s thesis, we will be able to obtain an EU food safety certificate as well. Lilli Puntti, R&D Support Manager and Occupational Safety Manager, Kiilto Oy.

At best, research cooperation creates new practical production methods and technologies for Kiilto and KiiltoClean. The research has been used to look for, for example, intelligent raw materials and recycled materials suitable for production. The research partners, on the other hand, accumulate deeper knowledge and research about the field and the special features of the chemical industry market as well as an understanding of the future research and education needs of companies. It can also result in a method, criteria or application that is more widely useable among customers. The researcher has a practical chance to creatively use their skills for a purpose. An industrial environment measures the quality of the research uncompromisingly.


Environmental and product safety

Responsible together

Recycle the plastics! Ekokem partners with Kiilto in the recycling, recovery and landfill of materials. After the signing of a comprehensive waste management agreement in 2010, no waste from Kiilto has gone to landfill sites. Ekokem Production Manager Mikko Koivuniemi, who is also responsible for the recycling of plastic waste, inspects bales of wrapping plastic in the warehouse together with Kiilto R&D Coordinator and member of the Kiilto waste management team, Sirpa Koukkula. Their task is to contemplate together how the recycling and recovery of plastic waste from the plant could be developed further. Kiilto conforms to the EU waste hierarchy and is preparing for the reforms in EU waste legislation, which come into effect in 2016. Consequently, plastic waste recycling will have to be improved significantly compared to the current level. â&#x20AC;&#x201C; The plastic used in the wrapping of pallets is good for recycling. The earlier the recoverable plastic is separated from other material, the better. Our work at Ekokem is a lot easier when clear and coloured plastics have been separated from each other and baled already at the plant, Koivuniemi says. Koivuniemi also proposes that Kiilto should start baling their large empty sacks and delivering the finished sack bales for recycling at Ekokem for a compensation. â&#x20AC;&#x201C; Industry does not yet often bale large sacks for recycling and we hope that that will change. However, the baling process requires that the company invests in a baler that is suitable for the handling of large sacks. Koukkula is excited about the new, concrete recycling ideas suggested by Koivuniemi and promises to put them up for discussion at the next meeting of the waste management team.

KIILTOCLEAN: WASTE Environmental and safety objective: Reducing waste Landfill waste percentage of production

Recoverable waste percentage of production

Hazardous landfill waste percentage of production

%

%

%

0.6

0.6

0.6

0.5

0.5

0.5

0.4

0.4

0.4

0.3

0.3

0.3

0.2

0.2

0.2

0.1

0.1

0.12

0.05

0.19

0

0 2012

2013

2014

Objective 2012-2014: Percentage of production (declining trend) Objective 2015-2017: Objective unchanged

0.54

0.60

0.60

0.1 0

2012

2013

2014

Objective 2012-2014: Percentage of production (declining trend) Objective 2015-2017: Objective unchanged

KIILTOCLEAN: ENERGY CONSUMPTION

KIILTOCLEAN: WATER CONSUMPTION

Environmental and safety objective: Improve energy-efficiency

Environmental and safety objective: Decrease the wastewater percentage of total water consumption %

l/kg

80 70 60 50 40 30 20 10 0

0.6

1.38

2012

2013

2014

Objective 2012-2014: Total energy consumption/tonnes produced (declining trend) Objective 2015-2017: Objective unchanged

0.22

2012

2013

2014

Additional new objective: Optimising water consumption

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

1.57

0.25

Objective 2012-2014: Percentage of production (declining trend) Objective 2015-2017: Objective unchanged

GJ/t

1.70

0.56

0.5 0.4 0.3 0.2 73.7

77.3

76.1

2012

2013

2014

Objective 2012-2014: Wastewater percentage of total water consumption (declining trend) Objective 2015-2017: Limiting to the current level

0.1

0.51

0.47

0.47

2012

2013

2014

Objective 2015-2017: Maintaining current level in water consumption/production in kilos

Responsibility report

29


Environmental and product safety

Over 10,000 trained people KiiltoClean trains almost 10,000 cleaning and sanitation professionals annually in the correct use of products. Moreover, almost 4,000 construction professionals, designers and salespeople as well as industry representatives participate in training by Kiilto. TRAINING CHANNELS OF KIILTO AND KIILTOCLEAN:

The forms and contents of the training are constantly evolving to suit customer wishes. Both benefit from the training: the customer learns effective work methods and receives answers to possible questions. The trainer, on the other hand, receives important feedback on what kind of information should be added to the instructions for use as well as what product attributes are necessary for customers. Electronic channels bring training within reach of those who otherwise would have a difficult time participating because of time constraints or long distances. eKiilto is an electronic training programme by Kiilto in which the participants complete a 15-20 minute training. There are also YouTube videos on Kiilto and KiiltoClean work instructions.

On-site training • Kiilto: topic units for contractors and technicians, design, landlords, surveillance, retailers as well as the industrial sector. • KiiltoClean: topic units for foodstuffs industry, cleaning, industry, professional kitchen and healthcare professionals as well as retailers.

Online training • Kiilto: Safe handling of MDI adhesives that contain isocyanates, Mounting adhesives, Wallpapering 101, Tiling 101, Wet room building, Levelling compound school • KiiltoClean: Hand hygiene, cleaning agents and kitchen hygiene

KiiltoClean trains all kinds of customers, for example foodstuffs industry, professional kitchen and healthcare professionals. Ideas spring from practical needs. Customers express their wishes but we also initiate training sessions on topics for which there is a clear need.

YouTube Kiilto channel http://goo.gl/th9edc or scan QR code

Kirsi Saukkonen, Training and Development Manager, KiiltoClean Oy

Kiilto: Customer training

KiiltoClean: Customer training

persons

persons

5,000

16,000 14,000

4,000

12,000

3,000

10,000

2,000

8,000 6,000

1,000 3,259

3,451

3,822

0 2012

30

2013

Responsibility report

2014

eKiilto training sessions included in the figures

4,000

11,331

8,158

13,347

2012

2013

2014

0

KiiltoClean channel http://goo.gl/S4v8WF or scan QR code

ADDED VALUE FROM RESPONSIBLE MARKETING For Kiilto and KiiltoClean, responsible marketing means, in particular, that product users receive information that is not only significant and useful for them, but also exceeds legal requirements. Transparency of communication and partner-like cooperation are manifestations of practical responsibility that create added value for everyone involved.


Environmental and product safety

Kiilto: Average handling time of customer complaints days

days

24

24

20

12

8

8

0

Websites and social media offer the possibility of direct feedback. They can be used to address consumer concerns and to guide them to use Kiilto and KiiltoClean products effectively and safely. Most consumer questions to KiiltoClean come through the website forms. The forms are located both on KiiltoClean’s own website and on the websites of the different product brands. The askers are interested in, for example, the origin and safety of the raw materials of products as well as whether they have been tested on animals. Regarding laundry detergents and products for households, people want tips for everyday situations such as choosing the washing temperature and the maintenance of certain flooring materials. KiiltoClean also has three Facebook profiles: Kiilto Siivousopas (Kiilto cleaning guide), Erisan herkälle iholle (Erisan for sensitive skin) and Serto. On Facebook, KiiltoClean shares tips for cleaning, laundry and skin care as well as helps people select the right products for different needs. The people who have liked the profiles ask about different ways to use the products and their safety as well as share their own experiences and memories about the products. They are also interested in matters of responsibility.

In addition, Kiilto and KiiltoClean answer consumer questions on the Kysy asiantuntijalta (Ask an expert) page at vastuullinenkiilto.com. The questions vary from product measuring to what the packaging labels mean and how to safely use the product. …AND THE DEVELOPER ANSWERS: Kiilto product information service answers the growing consumer need for information. All product information service personnel have a background in product development as well as years of experience with Kiilto products. Technical guidance, on the other hand, is for professional users of Kiilto products. – The Kiilto product information service is contacted regarding questions about building. We receive phone calls steadily, about 600 per month, and a few dozen emails. Most questions concern levelling compounds, plasters and waterproofing membranes. Product selection, how much product is needed and correct use are the most common product-related questions, Kiilto Senior Laboratory Technician Juha Vaani, says.

16

objective: under 14 days

12 4

8.3

8.1

2012

2013

10.9

4 0

2014

Kiilto: Transport punctuality

24

15

2012

2013

22

2014

KiiltoClean: Transport punctuality

%

%

100.0

100.0

99.5

99.5

99.0

99.0

98.5

objective: 99%

98.5 objective: over 98%

98.0 97.5

objective: under 25 days

20

16

The consumer asks online...

KiiltoClean: Average handling time of customer complaints

99.6

97.0 2012

98.0

97.3

98.9

2013

2014

97.5

97.9

99.4

99.1

2012

2013

2014

97.0

From the beginning of 2015, the target was raised to 99%

Responsibility report

31


Well-being, competence and safety The foundations of Kiilto and KiiltoClean work communities are the well-being of personnel, development of skills, safe work and working environment as well as clear objectives. The foundations create the conditions for motivated, committed and competent personnel who secure the high quality of operations, products and services of the companies as well as the competitiveness and continuity of business.

Aspects of employer responsibility The key aspects of the employer responsibility of Kiilto and KiiltoClean concern the management of human resources and personnel needs as well as work safety. This segment represents the effects of, indicators determined by as well as mitigation measures related to those aspects.


Human resources and working conditions

Personnel thrive and are committed to their work The personnel surveys of Kiilto and KiiltoClean show that the employees enjoy their work. The personnel are also deeply committed to their work and the company. According to the surveys, the employees unanimously think that the companies manage their social and environmental responsibilities well. The majority is also satisfied with the degree to which the companies take care of the well-being of the personnel.

Kiilto

96% 97% 92% 93% 83%

KiiltoClean of personnel think that the companies manage their social and environmental responsibilities well.

of personnel feel that the company can provide excellent products and services to its customers.

of personnel think that the operating principles and objectives of the company are worth pursuing.

of personnel feel that their own work efforts are important to the company.

of personnel feel that the employees in their immediate work environment are capable of flexibly adapting to new procedures.

98% 94% 92% 90% 86%

The results have been collected from the 2014 personnel survey. Responsibility report

33


Human resources and working conditions

Safe and inspiring working environment The goal of Kiilto and KiiltoClean is motivated, competent and productive personnel. The occupational well-being programme of Kiilto Family Group is an important tool in reaching that goal. The occupational well-being programme is divided into five parts: leadership, work community and environment, physical activity, personal working capacity and health, and skills. The focal areas of the programme are redefined annually and kept as practical as possible. The success of the occupational well-being programme is measured, for example, by the amount of sick leave as well as with personnel surveys. GREAT LEADERSHIP MOTIVATES EMPLOYEES A good manager supports the individual goals of employees and encourages them in the fulfilment of agreed tasks. The managers at Kiilto and KIiltoClean commit to developing themselves as well, simultaneously with their subordinates. The development of leadership is monitored via personnel survey results as well as objective and developmental discussions. Training and educational programmes provide practical tools for work. Kiilto and KiiltoClean invest in thorough and systematic induction training to ensure a successful start to the new employee’s introduction to the work community. The companies have detailed induction training programmes with additional adaptations for different workstations. In addition, in production induction trainers have been designated separately. Regular performance reviews and developmental discussions apply to all personnel. Objective and developmental discussions play an important role in strengthening the cooperative relationship between the subordinate and the manager. The discussions always take place early in the year and their follow-ups before the end of summer. The working capacity, motivation and well-being

34

Responsibility report

of the employee are also monitored during the objective and developmental discussion. LISTENING AND INFLUENCING in addition to developmental discussions, dialogue between personnel and the employer takes place during daily work as well as in joint work-related meetings and other occasions. For collective information sharing, KiiltoClean Oy organises information and discussion gatherings for management and personnel four times a year and Kiilto Oy arranges twice a year the Mitä kuuluu Kiilto? (What’s up Kiilto?) event. During these events, the economic and occupational well-being situation of the company as well as other current matters are examined. The personnel have an opportunity to pose questions and bring forth things that matter to them as well as improvement suggestions. SUPPORT AND ACTIVATION AT DIFFERENT STAGES OF LIFE Kiilto and KiiltoClean support the coping at work of their personnel in different life situations. Alternation leave, part-time retirement, telecommuting or shortened working hours provide opportunities for flexibility in the everyday life of personnel. Care service for children who are sick facilitates the reconciliation of work and family life. The part-time sick leave system in turn is of help when your working capacity is not sufficient to work full time but it is important to get back into the rhythm of everyday life. Work often has a rehabilitative role as well. Kiilto and KiiltoClean support the physical fitness of their employees by offering a wide range of options for people who like different types of exercise. Campaigns and fitness tests motivate employees to actively take care of sufficient physical activity. Kiilto and KiiltoClean utilise the Finnish Sport for All Association’s Active Workplace Award, which is updated every two years. The award is a tool for the assessment and development of the physical activity of personnel and its main objective is to give participating organisations feedback about the various aspects of the physical activity of personnel. CONTINUOUS LEARNING AND COMPETENCE DEVELOPMENT Every Kiilto and KiiltoClean employee has the opportunity to train and develop their skills. Managers identify personnel training needs in objective and developmental discussions as well as during everyday work. Employees have taken advantage of training opportunities offered by the companies by completing, for example, vocational qualifications related to their work as well

as marketing, business management and financial management training programmes. Topical training, organised by in-house experts, on occupational and chemical safety, quality and environmental issues, product attributes, IT systems, etc. is available to personnel as well. Competence development and coordination to suit the needs of both personnel and the company are reflected in, for example, in-house career and remit development as well as task rotation. SAFETY AND CLEANLINESS INSPECTIONS TWICE A YEAR In the chemical industry, special attention should be paid to occupational safety. Kiilto and KiiltoClean develop occupational safety continuously and persistently. Adequate protection measures for employees, safety instructions at workstations and material safety data sheets lower the risks of working with chemicals. Occupational health care officials regularly examine that the personnel has not been exposed to the chemical substances that they handle at work. The senior management is also committed to promoting occupational safety: one example of this are the so-called “Safety Walk” tours twice a year, which involve the management visiting different departments to examine safety and cleanliness matters as well as discussing safety with the personnel. The tours have been conducted at Kiilto for a couple of years now, and they are in the planning stage at KiiltoClean. Both companies have also provided training and guidance in workplace ergonomics. The Occupational Safety and Health Administration as well as occupational health care have organised workspaces and stations to support workplace ergonomics. Kiilto and KiiltoClean constantly train personnel about safe practices, and occupational and cleanliness projects, etc. take the development forward. Employees are encouraged to actively make safety observations and suggestions. Reporting and analytical processing of accidents as well as the obligations for correcting the situation are instructed in the Quality Management system. At Kiilto, the RC (Responsible Care) occupational safety team collectively represents the personnel and the employer in occupational health and safety issues. The team is primarily responsible for the development of proactive occupational safety. The results are reported to the environmental and safety responsibility team as well the board of directors. At KiiltoClean, a team of occupational safety experts reviews occupational safety incidents and accounts for the development of its area of responsibility. The team reports to the QEHS (Quality Environment Health Safety) management team.


Human resources and working conditions

KIILTO AND KIILTOCLEAN: PERSONNEL

Almost all employees in both companies are included in the sphere of collective negotiated work agreements.

Total number of personnel Kiilto

Distribution of personnel according to gender (%, w/m)

All Part-time Temporary personnel* Women Men employees employees

Kiilto

All personnel Managers Supervisors

Distribution of personnel according to length of employment (%)

Workers

Kiilto

Number of employees in managerial positions

10–19 yrs. 20–29 yrs. over 30 yrs. over 10 yrs.

Kiilto

All personnel

2014

181

54

127

6

9

2014

30/70

24/76

46/54

13/87

2014

25

20

11

56

2014

34

2013

180

53

127

5

10

2013

31/69

27/73

46/54

13/87

2013

26

21

10

58

2013

37

2012

175

53

122

5

9

2012

30/70

23/77

48/52

14/86

2012

22

24

11

57

2012

35

All Part-time Temporary KiiltoClean personnel* Women Men employees employees

All KiiltoClean personnel Managers Supervisors Employees

KiiltoClean 10–19 yrs. 20–29 yrs. over 30 yrs. over 10 yrs.

KiiltoClean All personnel

2014

191

97

94

6

12

2014

51/49

30/70

53/47

46/54

2014

27

14

9

52

2014

23

2013

198

97

101

6

10

2013

49/51

27/73

51/49

45/55

2013

27

15

9

51

2013

22

2012

189

89

100

3

10

2012

48/52

28/72

49/51

47/53

2012

27

15

8

50

2012

25

*Including temporary and part-time employees. Seasonal variations do not affect full-time personnel. Seasonal variations are mostly caused by the hiring of summer employees and trainees, for which there is a separate graph in the Sustainable business section.

THE TOTAL NUMBER AND PERCENTAGE OF NEW HIRED PERSONNEL* Age distribution/Men (no.)

Age distribution/Women (no.)

Kiilto

Kiilto

under 30

30–50 over 50

According to personnel groupings (no.)

under 30

30–50

over 50

Kiilto

Percentage

Management

Senior

Supervisors

Employees

Kiilto

All personnel

2014

6

1

1

2014

2

4

0

2014

0

2

4

8

2014

8

2013

11

4

1

2013

5

1

0

2013

0

4

3

15

2013

12

2012

5

3

0

2012

2012

2012

KiiltoClean under 30

30–50 over 50

KiiltoClean

3

2

2

under 30

30–50

over 50

KiiltoClean

0

0

6

9

Management

Senior

Supervisors

Employees

8

KiiltoClean

All personnel

2014

3

4

0

2014

3

8

1

2014

0

3

5

11

2014

10

2013

2

5

1

2013

5

10

1

2013

0

4

9

12

2013

13

2012

5

5

0

2012

7

10

0

2012

2

4

10

11

2012

14

*On-demand and summer employees not included

EMPLOYEE TURNOVER** Age distribution/Men (no.) Kiilto

Age distribution/Women (no.)

under 30

30–50

over 50

2014

6

1

2

2013

5

4

4

2012 KiiltoClean

5

7

6

under 30

30–50

over 50

Kiilto

According to personnel groupings (no.)

under 30

30–50

over 50

Management

Senior

Supervisors

2014

1

2

2

2014

0

2

3

9

2013

5

4

3

2013

0

2

9

14

2012

0

4

5

16

2012 KiiltoClean

1

2

4

under 30

30–50

over 50

Kiilto

Employees

KiiltoClean

2014

3

6

7

2014

2

6

2

2014

0

7

10

9

2013

2

1

3

2013

2

9

1

2013

0

5

6

7

2012

4

6

5

2012

4

8

2

2012

2

2

13

12

**Incl. all who left the company during the calendar year (including retirees), on-demand and summer employees not included.

Responsibility report

35


Human resources and working conditions

Personnel survey unfolds the work atmosphere Personnel survey results have remained

received positive feedback. The survey is also a tool for the development of human resources management. Based on the results, every department creates their own annual development projects. The HR Manager of Kiilto Family Group monitors the success of the projects and reports to the board of directors. The projects are practical tools to help ensure continuous development and the smoothness of work performance.

uniformly positive during the review period 2012-2014. The motivation of personnel is good: most employees feel that their work is worthwhile and that their contribution is important to the company. Employer investments in occupational well-being and the maintenance and development of working capacity are positively reflected in the surveys – in particular, the good occupational health care service has

KIILTO AND KIILTOCLEAN: OCCUPATIONAL WELL-BEING Objective: Promoting occupational well-being

Objective: Reduce the number of absences due to sickness

7 = extremely good 1 = extremely poor

%

7

6 Objective: min. 5.4

6

4

5

Objective: less than 3%

4 2

3 2

5.3 5.5

1 2012 Kiilto

“We invest significantly in occupational well-being because we want to create an internally strong and whole work community. It is a valuable thing. The goal of our personnel strategy is that the employees are motivated, competent and productive. This is clearly connected with the economic success of the business.” Antti Uski, HR Manager, Kiilto Family Oy

36

Responsibility report

5.4 5.7

5.1 4.9

2013

2014

KiiltoClean

Objective of the 2012-2014 review period: Average personnel survey results no less than 5.4 Objective 2015-2017: Distinctly better personnel survey results than the Finnish industry average. The personnel survey provider of Kiilto Family Group changed in 2014, which is why the numerical values are not directly comparable.

0

3.9 3.8

2012 Kiilto

3.5 5.0

2013 KiiltoClean

3.5 3.6

2014 Objective less than 3%

Objective of the 2012-2014 review period: The average sick leave per cent of all personnel less than 3 Objective 2015-2017: Objective unchanged Absences due to personal illness as well as due to a workrelated or commuting accidents are included in the sick leave figures. Headcounts include the average headcount of the quarter, excluding so-called on-demand as well as summer employees.


Human resources and working conditions

PARENTAL LEAVE TAKEN According to gender (no. of people) Kiilto

Women

Men

2014

6

11

2013

8

11

2012

8

8

KiiltoClean

The well-being of the work community is strengthened by a positive work atmosphere which Kiilto and KiiltoClean promote with, for example, collective leisure events. The culmination of year 2013 was the “Good Mood” celebration at the Caribia Arena in Turku. At the celebration, Christmas presents brought there by the employees were wrapped for distribution by the Mannerheim League for Child Welfare. In addition, seven “Good Mood ambassadors” were chosen from among the personnel. The ambassadors are individuals who generate a good mood for others in the work community with their actions and especially with their positive attitude.

Women

Men

2014

10

4

2013

7

2

2012

7

5

FULL-TIME EMPLOYEES OF KIILTO AND KIILTOCLEAN ENJOY, AMONG OTHER THINGS, THE FOLLOWING BENEFITS: • meal subvention • support for physical activity via recreational vouchers, various sporting events and company-specific exercise classes • an opportunity to acquire products manufactured by the sister companies in the group via personnel-specific sales • care service for children who are sick • occupational health care • result-based bonus apply to personnel

Responsibility report

37


Human resources and working conditions

Initiating useful ideas

Wanted: Safety observations Kiilto searches for potential safety gaps and development needs that are apparent in the operations together with its personnel. For this purpose, for example, production employees carry notebooks in which they can record observations related to occupational safety as part of their daily work. As a result of employee activation measures, the number of safety observations multiplied compared to earlier years in 2014, when a commendable 137 observations were recorded. During that year, people were actively reminded of the practice in training sessions, developmental discussions, etc., and everyone who made an observation was rewarded with a recreational voucher. The same practice will continue. The RC team for occupational safety annually selects the safety observations that will be rewarded. The goal is that every Kiilto employee would make at least one safety observation during the year.

The initiative policy is one way in which Kiilto and KiiltoClean encourage the whole personnel to develop the operations of the companies. The initiative can be any kind of suggestion that relates to practices. It can be targeted at products and production as well as logistics, sales, personnel or economic operations. The goal is to find ideas that enhance work outcomes, improve working conditions or reduce costs. Employees record their initiatives in the intranet, after which they are evaluated. The most useful initiatives are implemented and their authors are rewarded. INITIATIVES BOOSTED PRODUCTION AT THE DRY MIX PLANT Kiilto rewarded Kari Kankkunen and Marko Jussila for boosting the production of the dry mix plant in 2012. Kankkunen investigated how much time was spent on each step of the production process. He noticed that changing the type of product that was being produced took a large portion of the time and figured out that, with a particular technical change, it would be possible to speed up the changeover process. The idea was implemented and the changeover time shortened from 45 to 22 minutes. At the time, Kankkunen was working as a process technician; now, he has graduated with a degree in engineering. Production worker Jussila, on the other hand, noticed problems in the packaging production process, which caused interruptions in the packing. The packing process was smoothed by adjusting the speed of the equipment and, consequently, the overall speed and efficiency improved. Overall, the efficiency of production improved by 20 per cent at the plaster and levelling compound plant in 2012.

KIILTO AND KIILTOCLEAN: PERSONNEL INITIATIVES no. 250 200 150 100 50

38

Responsibility report

67 43

30 24

2012

2013

2014

KIILTO AND KIILTOCLEAN: REWARDED INITIATIVES no.

Eero Suojanen, Occupational Safety Representative, Kiilto Oy

20 KIILTO: SAFETY OBSERVATIONS

15 10 5 0

Kiilto Kiilto introduced the Orchidea initiative programme in 2012

237 28

0

â&#x20AC;&#x153;Collecting safety observations has been the single best tool for improving occupational safety in recent years. Because of it, we have over one hundred pairs of eyes examining the situation and participating in the development of occupational safety. Managing the big picture is even more important than isolated observations. Safety observations are a tool that increases knowledge and influences attitudes. Zero accidents is the absolute goal! Safety practices are partially mandated by collective and general agreements. Both collective agreements and training and theme days organised by trade or employer unions aim to improve occupational safety, job satisfaction and coping at work. The Industrial Union TEAM, Trade Union Pro for clerical employees and the Chemical Industry Federation of Finland cooperate very successfully to improve occupational safety.â&#x20AC;?

12 17

16 20

2012

2013 KiiltoClean

7

14

2014

160 140 120 100 80 60 40 20 0

30

35

137

2012

2013

2014

Safety observations


Human resources and working conditions

Result-based bonus encourage to develop operations

Sponsor tips support safe work Occupational safety sponsorship programmes involve process safety experts sharing good procedures and practices with each other. Kiilto introduced sponsorships into its operations based on the initiative of the Chemical Industry Federation of Finland in 2013. The member companies of occupational safety sponsorship networks are divided into four groups. Each group is sponsored by a company whose occupational safety matters are in good standing or whose safety thinking is already highly evolved. Kiilto is included in the colour industry group, which is sponsored by a representative of Neste Oil. – Topics suggested by group members are discussed in sponsor group meetings. The topic of our most recent meeting was change management. The aim is to develop an easy-touse change management tool that is suitable for

Kiillon and KiiltoClean personnel’s work contribution plays a significant part in generating company profit. The personnel have a key role in the operating efficiency, vocational competence and, consequently, economic bottom line of the companies. Successful companies, in turn, safeguard jobs and create opportunities for the professional development of employees. If Kiilto or KiiltoClean, with the help of their personnel, succeeds in reaching a level of economic profit that exceeds the preset minimum targets, employees are rewarded with a share of the surplus. The aim of this practice is a goal-oriented and fair approach to business management. Simultaneously, the awakening of active interest of employees to generate profit and increase their own income level as well is sought.

the needs of all companies in the group, Kiilto Occupational Safety Manager Lilli Puntti says. The work of the occupational safety sponsorship network has resulted in good practices at Kiilto. The safety activities of the companies involved are explored during the meetings. – A lot of new ideas have originated in the sponsor group. Currently, display boards that serve as occupational safety reminders are used in production and the cafeteria. The idea for them came from Tikkurila. The idea to start safety discussions between production supervisors and employees was also from the network. A total of 20 companies are involved in the sponsorship networks nationwide. KiiltoClean joined the network of Southwest Finland when it was established in 2014.

KIILTO: WORK-RELATED ACCIDENTS Objective: Zero accidents no.

Objective: Zero accidents no.

Objective: Fall below the reference level

5

10

20

4

8

15

3

6

2

4

1

3

0

1

0

2

10 5 8

0

0 2012

2013

2014

Objective 2012-2014: LTI 1 = total number of work-related accidents resulting in absence of at least one day zero Objective 2015-2017: LTIF 1 = total number of work-related accidents resulting in absence of at least one day/million work hours: zero accidents (declining trend)

2014 New objective 2015-2017: TRI = total number of work-related accidents (incl. commuting and subcontractors) zero

Objective: Maintain a zero accident level for as long as possible

no./million work hours/year

3

8.2

2012

0

5.9

2013

11.3

Reference figure = RC company average The figure for 2014 was not known at the time of printing.

2014

Objective 2012-2014: LTIF 3 = the number of work-related accidents resulting in at least three days absent from work/ million work hours/year falls below the average for RC companies Objective 2015-2017: Zero accidents

The longest accident-free period during the review period lasted 478 days (9.10.2012–29.1.2014).

KIILTO AND KIILTOCLEAN: FIRES Objective: Maintaining zero level There were no fires at KiiltoClean during the review period. At Kiilto, there was one incident in 2013 and one in 2014 that meet the criteria of a fire.

*) The Kiilto Oy incident figures of the review period include the personnel of Kiilto Family Oy because the monitoring process has been centralised to the organisation of Kiilto Oy. The monitoring process will be differentiated from 2015. Responsibility report

39


Human resources and working conditions

Five steps to cleanliness 5S is a cleanliness programme of Kiilto production that is divided into small steps. According to the philosophy of the programme, an outstanding plant is where everything is neat and every workstation clean and organised. This makes working smooth as well and improves the level of safety and the environment. Kiilto introduced the 5S programme in 2012 and has gradually expanded its sphere of influence all around the plant. In addition to the adhesive manufacturing facilities, the programme is currently in operation in the maintenance department and parts of the raw material polymerisation facility as well.

Responsible together

Chemical safety is a part of product development The Finnish Institute of Occupational Health performs a work hygiene inspection at Kiilto every four years. However, cooperation is ongoing because the chemical expertise of Kiilto is valuable for utilisation and sharing between inspections as well. Kiilto spreads its knowledge to customers and other stakeholders. – Kiilto is not focused on protecting only its own factory areas and personnel, but rather extends chemical safety all the way to the customers. Kiilto experts identify risks and guide customers to avoid them, says Milja Koponen , a Specialist Researcher at The Finnish Institute of Occupational Health (photo right). – The domestic Kiilto has an easily accessible and extensive customer service that guides you through the correct and safe use of the product in detail – on the spot, if necessary. Sales representatives play a major role in the guidance and training of customers. At Kiilto, occupational safety is a part of product development as well as technical development. During the development of each product and selection of raw material, the safety of the employee and possible exposure are always the first concern – and this will never be compromised. – We always try to replace raw materials that have been classified as hazardous with less dangerous options. If there are none, the goal is to make the handling of the classified raw material as safe as possible with technical solutions and/or the use of protective equipment, R&D Support Manager of Kiilto Oy Lilli Puntti explains. A lot of new automatic dosing equipment etc. has been added and the functionality of local exhaust ventilation has been examined at Kiilto. Dust extraction from the general atmosphere has been improved at the plaster and levelling

40

Responsibility report

compound plant, which has reduced the dust exposure of employees and made working easier. The work cards at each workstation contain detailed information about what protective equipment should be used. – The use of protective equipment is monitored, although that seems unnecessary already because the employees are aware of how essential the equipment is and they know to insist that their colleagues use them as well, Puntti says. From the point of view of the chemical safety system of Kiilto, it is essential that the classifications and quantities of all raw material components can be retraced. This requires close cooperation with suppliers. – This information helps us classify our own products but, on the other hand, it also solves difficult situations in which a customer may have possibly been exposed to some chemical, Puntti clarifies.

5S STANDS FOR THE FIVE STEPS TO CLEANLINESS WHICH ARE DECLUTTERING, REORGANISING, CLEANING, STANDARDISING AND MAINTAINING. • Decluttering means separating and removing unnecessary items. • In the reorganising phase, the remaining items are placed appropriately and marked. • During cleaning, the surface areas are wiped down and, if necessary, the space is decorated by painting etc. • Cleaning and organising practices are determined in the standardising phase and a checklist is composed to ensure that the practises are followed. • Maintaining is the last step: it includes inspection tours, addressing discrepancies and continuously thinking about possible improvements.

“It has been challenging to do cleaning alongside my own work, but it has been worth it. The cleanliness of the premises is now at a completely different level than before the project. In addition, the correct working methods can greatly affect the working environment. The accumulation of splashes and dust can be reduced with your own actions. When the surfaces are kept clean it is easy to detect, for example, oil spills from machines.” Antti Pohja, Production Engineer, Kiilto Oy.


Human resources and working conditions

Emergency drills prepare for risk situations In autumn 2014, KiiltoClean organised an emergency drill at the Turku factory area together with the Southwest Finland Emergency Services. The planning process for the drill was initiated early in the year already by KiiltoClean Production and Safety Manager Tapio Katajamäki. The premise of the drill was that a fictional chemical leak had taken place in the KiiltoClean production facilities. As a result, a general alarm was sounded at both the solution plant and the office premises and production employees and supervisors were evacuated from their workstations to the predetermined refuge area. The board of directors of the Rescue Services in Finland surveyed the situation and prepared an action plan together with the rescue department. The KiiltoClean first aid team convened and practiced as the events unfolded. When the situation was over, an overview of the emergency drill was organised in the conference room. The overview consisted of examining the main points of the procession of the emergency drill with the help of

videos and photographs. Afterwards, a feedback discussion was organised for the personnel where the sequence of events was retold and people contemplated together how the operating procedures of a crisis situation could be developed in the future. The emergency drill allowed KiiltoClean to test how its organisation would function in a crisis situation. Particularly the ways in which communication flows both internally and in the direction of the media were observed during the drill. Simultaneously, the rescue department was able to test the functionality of their chemical

publication is a condensed practical tool that advices how the employee should act at the workstations and who should be notified if the employee notices shortcomings in occupational safety. The guide also shows what you should do in emergency situations. organisation, meaning that the drill was a learning situation for them as well. Especially practices for internal communication were improved at KiiltoClean as a result of the emergency drill. The drill was one component of the ongoing safety work of KiiltoClean. Regular training is how the company guides its personnel to work safely. The Personnel Safety Guide

Environmental and safety training sessions

Kiilto

Number of training sessions

Training participants

KiiltoClean

Number of training sessions

Training participants

2012

23

395

2012

7

49

2013

32

328

2013

24

466

2014

69

776

2014

26

441

KIILTOCLEAN: WORK-RELATED ACCIDENTS Objective: Zero accidents

Objective: Fall below the reference level

no.

no./million work hours/year

6

20.0

5 3

10.0

2 1

days

15.0

4

5.0 6

4

17.6 8.2

5

11.8 5.9

8.6

0

0 2012

2013

2014

Objective 2012-2014: Declining number of work-related accidents/year, goal: zero accidents Objective 2015-2017: Zero work-related accidents This figure includes all work-related accidents resulting in at least one day absent from work.

2012

New objective: Maintain a zero accident level for as long as possible

2013

Reference figure = RC company average. The figure for 2014 was not known at the time of printing.

2014

Objective 2012-2014: The number of work-related accidents resulting in at least three days absent from work/million work hours/year falls below the average for RC companies Objective 2015-2017: Objective unchanged

250 200 150 100 50

205

0 2014 Objective 2015-2017: Uninterrupted number of days without a single accident/ year for as long as possible

Employees devised a person lift KiiltoClean searches for potential safety gaps and development needs that are apparent in the operations together with its personnel. The goal is that every production employee makes at least one safety observation per year. This is encouraged through various campaigns and rewards. Occupational Safety Representatives choose the best initiatives, and the goal is that they will be put into effect.

“We recently acquired a person lift for the production department. The purchase decision was made after several employees recognised the need for a lift. The lift has been terrific and the employees feel that it improves occupational safety considerably compared to working on a ladder. ” Reijo Rusi, Occupational Safety Representative, KiiltoClean Oy and Kalle Sevon, Technical Supervisor, KiiltoClean Oy

Responsibility report

41


Human resources and working conditions

Competence brings certainty to work Kiilto and KiiltoClean want their employees to have vocational skills in multiple fields. Continuous development and training of personnel is seen as a strategic competitive advantage. Outsourced training of the companies includes themed courses, seminars, lectures, examinations, trade fairs, visits to raw material and equipment suppliers as well other information gathering trips. Outsourced training courses are financially and temporally supported by the employer, either partially or completely. The companies organise in-house training for their personnel as well. It is offered as a part of other regular events, such as sales meetings, product development and production meetings, raw material supplier visits and customer training. In-house training is also organised as separate themed events. The fulfilment of training objectives is examined in collective discussions with the personnel and the employer. The personnel survey is used to monitor the development of the competence and operations of the departments and units annually.

“The chemical engineering qualifications that I completed brought certainty to my work. Now I know where to search for information if something work-related is unclear. This helps a lot because adhesives and equipment change and there are new challenges at work all the time.” Harri Markkola, Production Worker, Kiilto Oy

“I graduated from the Turku University of Applied Sciences with a master’s degree in 2013. My thesis is about the public procurement of professional detergents. The studies have supported my daily work and enabled the linking of theory with practical work. The company has supported and encouraged studying from the beginning, which has been a motivating factor for the studies and made graduating within the desired time frame possible.” Mikko Ruhtinas, Key Account Manager, KiiltoClean Oy.

In 2013, I participated in the Future Excellence 4 training programme which focused on leadership development and development in the ever-changing and globalising business environment. In my thesis, I focused on Valio as a key customer of KiiltoClean. The aim of the thesis was to illustrate the current state of key account management and develop our operations further. Jukka Rantala, Account and Development Manager, KiiltoClean Oy

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KIILTO AND KIILTOCLEAN EMPLOYEES HAVE COMPLETED STUDIES IN ADDITION TO THEIR WORK AND HAVE WRITTEN THESES ON, FOR EXAMPLE, THE FOLLOWING TOPICS: • utilising social media in marketing and the building of company image • website programming languages and using them on your webpages • developing services to support sales • the development of operations regarding critical customer encounters • development of cost-effectiveness in subsidiary logistic operations • community management • purchasing manager training • developing strategic management • developing key account management • public procurement • international business management • vocational qualifications in chemical engineering • lawyer’s degree The companies have arranged individual or collective training sessions for the personnel on topics related to their work. The most common ones are, for example, introductions to the IT and administrative systems that are being used as well as to the software and equipment (operating system, customer relationship management system, plant systems, office software), orientation for new personnel and voluntary advanced training as well as usage training for new systems and software. In addition, during review period 2012-2014 training and practice sessions have been organised as a part of the regular training programme about the following topics: • person lifts • chemical safety • leak prevention • occupational safety card • emergency drills • fire prevention and initial fire protection • cleanlines programme • first aid • internal audits • dangerous transports • challenging customer • IMO classifications service situations • hot work licence • equipment technology • forklift licence of the client • use of safety equipment • product quality • explosive atmospheres • leadership skills • electrical safety


Human resources and working conditions

Active exercise is a source of well-being Kiilto and KiiltoClean have received the Finnish Sport for All Association’s Active Workplace Award, which is a tool for evaluating and developing the physical activity of personnel. The award gives the participating organisation feedback on how well the different facets of workplace exercise have been taken care of at their company. At KiiltoClean, the certification was conducted for the first time in 2014, and the results were good right away. Cooperation with occupational health care and encouragement to physical exercise received a full score and special praise, similarly to Kiilto. At Kiilto, the certification was conducted for the third time already and the results were excellent. In addition to the above-mentioned sectors, the amount of support given to personnel physical activity as well as the system for monitoring the fulfilment of occupational well-being programme goals were praised especially. The Active Workplace certification is conducted at Kiilto and KiiltoClean every two years and the goal to raise the bar and receive better results than previously each time. Exercise is considered an important source of well-being, health and energy at the companies. Supporting the physical activities of personnel by company-specific exercise classes and recreational vouchers, collective exercise campaigns and events, annual fitness tests and sharing information about exercise are parts of the comprehensive occupational well-being programme of Kiilto Family Group. The goal is that the employees feel well both at and outside of work as well as exercise enough to stay healthy.

“I participated in a fitness test for the first time last autumn, soon after I had started working for KiiltoClean. The results of the test gave me information about my fitness level. They motivated me to train because I want to have better results next autumn! I exercise three to four times a week: I go to the gym, run as well as participate in the KiiltoClean exercise class. I have also considered running a marathon because KiiltoClean pays the participation fee once a year. That would be a great motivator for training.” Mira Kivisoja, Telemarketer, KiiltoClean Oy

Kiilto and KiiltoClean: Fitness test participants (% of all personnel) 60 50 40 30 20 10

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2012 Kiilto

“Hockey on Tuesdays, volleyball on Wednesdays, exercise class for men on Thursdays and floorball on Fridays. We have an opportunity to explore new kinds of sports a couple of times a year. In the summer we play tennis on the great artificial turf at the plant and in the winter we can book indoor court shifts. Moreover, Kiilto offers recreational vouchers in return for a deductible fee, so we have the opportunity to exercise as much as we have the energy for. Kiilto really invests and encourages physical activity and provides the things necessary to make it happen. Our whole department is sporty and competitive. When I hear that someone has been jogging, I have to go do that myself as well.” Tommi Roiha, Maintenance Mechanic, Kiilto Oy

In September 2014, nutritional expert Patrik Borg gave lectures to Kiilto and KiiltoClean personnel as a part of the “Kunnon syksy” (Healthy autumn) wellness campaign. In connection with the lectures, a wellness week was organised in the Lempäälä personnel restaurant, during which lunch was offered at a reduced price every day. The goal was to encourage personnel to make a daily habit of enjoying a healthy lunch at the personnel restaurant.

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2013

2014

KiiltoClean

Objective: At least 70% of personnel participate in fitness tests.

Kiilto and KiiltoClean: Active Workplace Award % 100 80 60 40 20 77

80

2009

2011

83

71

0 Kiilto

In October 2013, “50+” wellness events were organised at Kiilto and KiiltoClean. The events focused on issues about health, well-being, coping at work and pensions that are current for people who have turned 50. The speakers at the events included, for example, representatives from occupational health care and pension insurance companies. Employer-sponsored body age mapping was also organised for the event participants.

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0

2013

KiiltoClean

Objective: Always improving the Active Workplace Award results compared to previous results in the certification that takes place every two years

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Financially sound and profitable business creates sustainable well-being Economic stability, profitability and controlled growth form the foundation on which Kiilto and KiiltoClean build the lasting effects on well-being of their operations. The innovative, competitive, efficient and profitable operation of the companies creates economic added value, which has a substantial effect on the performance, well-being and development of both the companies and their partners as well as local communities and the society.

Aspects of sustainable business • management and development of operations • business growth and development • industry expertise • partnerships • creating shared, mutual value • setting an example • domesticity - both in Finland and internationally

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KiiltoClean Oy Hankasalmi plant’s yard is a grazing area for a dozen sheep during the summer months. The sheep have kept the vast yard area clean for almost ten summers. The idea for the sheep as a landscape attraction next to the busy highway 9 came from the Hankasalmi municipality.


Sustainable business

Stakeholder distribution of economic added value Kiilto and KiiltoClean Kiilto and KiiltoClean combined turnover* 2014: 104.0 MEUR 2013: 105.4 MEUR 2012: 104.2 MEUR

Customers

Turnovers

Environmental and safety investments of Kiilto and KiiltoClean

Products and services

2014

2013

2012

38.0

27.6

5.4

55.7

8.4

3.1

Kiilto

Investments (Kiilto and KiiltoClean combined) 2014: 1.46 MEUR 2013: 1.33 MEUR 2012: 1.53 MEUR

Suppliers

Personnel

Society

Raw material and material sourcing (Kiilto and KiiltoClean combined) 2014: 45.47 MEUR 2013: 47.29 MEUR 2012: 47.66 MEUR

Personnel wages and benefits Incentives** Occupational well-being investments Occupational health care (Kiilto and KiiltoClean combined) 2014: 17.61 MEUR 2013: 17.21 MEUR 2012: 16.70 MEUR

Income tax Real estate tax Social security costs Support for public good (Kiilto and KiiltoClean combined) 2014: 3.53 MEUR 2013: 3.97 MEUR 2012: 3.77 MEUR

The equity ratio of Kiilto Family Group (see page 3) as a whole is over 80 per cent and liquidity (quick ratio) over 2. The figures represent the financial stability of the whole group. * The turnovers include Kiilto and KiiltoClean business in Finland as well as export sales, including sales to foreign subsidiaries. (The turnovers of the Kiilto subgroup and KiiltoClean subgroup are presented on pages 4 and 6; the figures include the business of their foreign subsidiaries as well. However, this report only covers the international operations of the companies on an introductory level.) ** Kiilto and KiiltoClean have an established incentive policy which is described on page 39.

Environmental and safety investment percentage of all investments (%) KiiltoClean Environmental and safety investment percentage of all investments (%)

GRANTS AND SUBSIDIES RECEIVED DURING THE REVIEW PERIOD During the review period, Kiilto has received €13,000 for the industry energy analysis and €10,000 for material efficiency research as subsidies from the Centre for Economic Development, Transport and the Environment (ELY). In addition, the Finnish Funding Agency for Innovation (Tekes) has granted Kiilto a total of €693,000 for research during the review period. In 2012, KiiltoClean received a €11,000 energy grant from the ELY Centre for the preparation of an energy report. In the same year, KiiltoClean was involved in an extensive hospital project by Tekes. 50% of the costs of the project for KiiltoClean were compensated, the compensation was paid to the company that coordinated the project.

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Sustainable business

Economic stability is reflected in the environment The economic stability of Kiilto and KiiltoClean is reflected as positive economic and operational effects in their internal and external operating environments and stakeholder relations. In addition to their own customers and personnel, it extends to the surrounding society: first to the companiesâ&#x20AC;&#x2122; places of operation and the educational world, then wider to the whole business sector, national economy and the well-being of citizens. Two-way cooperation with regional and local authorities as well as educational institutions at various levels is based on open and confidential dialogue in which the direct and indirect beneficial elements for both parties are identified. The cooperation is also guided by finding and developing of practices that promote sustainable development. Kiilto and KiiltoClean engage in multi-level dialogue about the needs, plans and specific features of the communities within their area of influence. Both companies have an active discussion practice with the municipal administration of their operating municipalities. Discussions provide both parties with valuable information about, for example, land use planning, logistics, location of operations as well as research and development sectors. Regular cooperation with local environmental, occupational safety and rescue officials includes monitoring and developing the effects and practices related to plant surroundings and safety. This provides both parties with useful information. Close cooperation with employment authorities aids in finding suitable employees for Kiilto and KiiltoCleanâ&#x20AC;&#x2122;s workforce needs at the right time. Cooperation with educational institutions is one visible element of the economic and social responsibility of Kiilto and KiiltoClean. Apart from the cooperation partners, it promotes the competence of the whole industry in a broader sense while also reinforcing the image of a responsible employer. Cooperation offers pupils and students work experience, practical knowledge that supports vocational education and a chance to earn an income. Educational institutions learn about the development needs of the companies related to research or other operations

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and can take them into account in their educational planning and selection. The cooperation with educational institutions also includes lectures and other intellectual consulting by in-house experts of Kiilto and KiiltoClean at the institutions. Thus, this kind of knowledge exchange promotes both the chemical industry and the interest directed at it as well as the development of necessary education for its needs. In addition to the cooperation with educational institutions, apprenticeships and work practice positions are offered in connection with various labour policy training programmes, as well as so-called transitional jobs as a part of rehabilitation to the working life. Read more about Kiilto and KiiltoCleanâ&#x20AC;&#x2122;s cooperation with educational institutes on page 50. BUSINESS ETHICS The sustainable business of all Kiilto Family Group is based on the laws and other regulations of each operating country, collective agreements as well as good governance and ethical practices. The companies are familiar with the key national and international fundamental documents, initiatives and projects regarding social responsibility and respectfully follow their principles. In companies located in CIS countries and Ukraine, the so-called White Book guideline specifies the ethical principles of operations. During the review period, the companies strengthened their legal expertise resources by establishing a corporate lawyer position. The corporate lawyer advices the whole group regarding legal matters and participates in the decision making

process about the ethical policies of operations together with the management. The companies of the group pay taxes to their countries of operation in accordance with the local regulations. Corruption is not tolerated. The companies have also implemented the Anti-Corruption Clause of the International Chamber of Commerce, and this is communicated not only to in-house personnel but also to cooperation partners when, for example, agreements are being made. The quality principles of Kiilto act as an ethical guideline for Kiilto personnel. The quality principles emphasise that every Kiilto employee must be responsible in their work and promote the well-being of the internal and external environments. The operating policy of KiiltoClean, in turn, aims to ensure that the whole personnel is committed to improving quality, environmental protection and occupational safety. Kiilto quality principles and KiiltoClean operating policy are explained more closely on pages 58 and 59. EXPERT REPRESENTATIVES Kiilto and KiiltoClean have expert representation in expert, cooperation and advocacy bodies related to their industries. Representation allows the companies to promote and utilise the exchange of information in strengthening the competence of both parties and the general development of the industry. By participating in collaborative networks and forums the companies receive information about the needs, current projects and specific features of communities within their sphere of influence, which they can then take into account in their responsible operations.


Sustainable business

Responsible together KIILTO AND KIILTOCLEAN HAVE EXPERT REPRESENTATIVES IN, FOR EXAMPLE, THE FOLLOWING INDUSTRY AND COOPERATIVE BODIES: THE CHEMICAL INDUSTRY FEDERATION OF FINLAND • the board • scientific committee • adhesives division • environment, health and safety committee, also the product and production sub-teams • communications committee THE FINNISH COSMETIC, TOILETRY AND DETERGENT ASSOCIATION • the board • detergent and cleaning product division • institution and industry division • cosmetics division THE INDUSTRIAL UNION TEAM • union board THE BUILDING INFORMATION GROUP • indoor climate classification committee CEN (Comité Europeén de Normalisation, European Committee for Standardisation) • adhesives and tile plasters • floor levelling compounds • wood adhesives • bio-based products TAMPERE UNIVERSITY OF TECHNOLOGY • adhesive technology docentship • advisory board for the faculty of business and built environment TAMPERE UNIVERSITY OF APPLIED SCIENCES • advisory board for laboratory sciences AEL (Ammattienedistämislaitos, a foundation that promotes the updating training of skilled workers in industrial and other sectors) • national expert membership in chemistry and process engineering THE SCIENTIFIC ADVISORY BOARD FOR DEFENCE • Tampere division THE NATIONAL EMERGENCY SUPPLY AGENCY • chemical pool committee, industrial sector THE ASSOCIATION FOR ENVIRONMENTAL MANAGEMENT • supporting member

Timo Leppä, CEO of the Chemical Industry Federation of Finland

Chemistry is behind everything and involved with everything “It is an indisputable fact that Kiilto became an open-minded pioneer of the Finnish chemical industry in the early 1990s. Kiilto and KiiltoClean have systematically participated in projects that have developed corporate responsibility and its different facets – most recently energy and material efficiency as well as occupational safety. The speed and agility of Kiilto and KiiltoClean build skills that are needed in the global competition of the chemical industry. Staying ahead creates a way of thinking that is essential for competition. You take the initiative and if you find something good, you utilise it immediately. Chemistry is rarely in the headlines but it is involved in everything and behind everything. The annual turnover of the chemical industry is approximately 25 billion euros. That is the same as 25 per cent of the industrial production or 25 per cent of the exports in Finland. With that percentage, the chemical industry is the largest export industry sector in Finland. The chemical industry has a crucial role in maintaining and enabling Finnish well-being. We employ approximately 34,000 people directly in Finland. The annual plant, research and product development investments of the chemical industry are worth about €1 billion. Only the chemical industry has been able to rise from the 2008 financial crisis to its previous level and even well beyond. The chemical industry is building a society that is based on sustainable development. To achieve this, we must be competitive and quick to react. The answer is increasing innovativeness, meaning that enough focus must be put on research and product development. Kiilto and KiiltoClean understood this a long time ago and keep their extensive product development strictly at home. In addition to research, skills are needed for marketing, sales and business management so that innovations can be commercialised.”

In addition to their own industry connections, the expertise of the companies is represented in many other bodies that represent business, science, culture or societal action.

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Sustainable business

Responsible together

Corporate lawyer advices, investigates and verifies Kiilto Family Group established a corporate lawyer

Aleksi Randell, the Mayor of Turku

The City of Turku takes cooperation with the chemical industry forward “The Turku region has a wealth of chemistry expertise in research institutions as well as businesses. Recently, cooperation between the various parties has strengthened and it is important that universities and companies do innovation work together: research and product development that results in new products for both domestic and export markets. The city can support KiiltoClean with this kind of cooperation as far as possible. The role of the city is to enable cooperation between various fields. Regarding innovation projects, we can provide information about different options and help with obtaining funding, if necessary. We listen to companies and their needs but, for example, our trade enterprise has representatives from universities as well. We all sit around the same table and discuss how we can promote our common research and development projects. KiiltoClean is a medium-sized enterprise in the Turku region and a major employer. The fact that the company operates in more than one location makes it stronger and more competitive. KiiltoClean operations are stable, which is important to us in these difficult times. If the company wants to grow and invest, the aim of the city is to identify the needs of the business and provide appropriate assistance. We have discussed with KiiltoClean about their plans to develop their operations – about the needs for business premises and logistical questions. There is a long tradition of cooperation and the city has a good and direct relationship with KiiltoClean. We wish, of course, that the company is successful, continues and expands their operations in Turku. We make every effort that the city as a public actor can to help with this.”

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position in 2014. Corporate Lawyer Satu Koivula is available to all companies in the group. She offers advice on legal questions, keeps track of industry legislation and is responsible for trademark matters and intangible rights. She also inspects insurance documents and is involved in the handling of major complaints. Contract law is an important facet of the corporate lawyer’s work. Increasingly, customer contracts have the customers’ own responsibility programmes attached to

them and they expect that Kiilto and KiiltoClean commit to them. When necessary, Koivula participates in the contract negotiations of the companies in the group and checks the contents of both the contracts and the responsibility programmes. The job description of the corporate lawyer also includes the development of the ethical practices of the company and advice related to those issues. The group is in the process of creating an anti-corruption policy and the input of the corporate lawyer is significant in its formulation.

“A corporate lawyer brings one important point of view to the issues present and ensures that the operations are legally sound, contracts as clear as possible and that the risks of the company are controlled. It is easier to turn to an in-house lawyer who is present every day than to the counsel of an outsider. Problems can be prevented from the start or they can be solved at an early stage. As the corporate lawyer, my strength is having a wide scope of things. Previously, the problems of each sector might have been sorted out separately. As the corporate lawyer, I see the big picture of the group and can take advantage of what has already been learned and done as well as promote good practices. ” Satu Koivula, Corporate Lawyer, Kiilto Family Oy.

Responsible together

Kiilto is proud to be from Lempäälä

“Kiilto is an exemplarily managed and profitable family-owned company and the largest industrial employer in the municipality of Lempäälä. Many Kiilto employees live in Lempäälä and pay their municipal taxes to Lempäälä. Olli Viitasaari, the Municipal Considering the municipal, Manager of Lempäälä corporate and real-estate taxes, the tax revenues received by the municipality because of Kiilto are substantial. Large plants require services, which means that the indirect effects are significant as well. The fact that Kiilto is located in Lempäälä affects the employment self-sufficiency of the municipality, which is emphasised in the heated discussion around municipal structure. The employment self-sufficiency of Lempäälä is

around 70 per cent, of which three per cent comes from Kiilto. This affects the credibility of the municipality as an individual actor and implementer of successful economic policy. We have been very pleased with the willingness to cooperate that Kiilto has shown towards the municipality of Lempäälä. Half of the members of our industrial policy cooperation committee come from companies. Having a Kiilto representative in the group has made a valuable contribution to its activities. The cooperation is smooth and uncomplicated. The municipality has also tried to act as flexibly as possible whenever a need for negotiation has arisen. Kiilto states proudly that they are located in Lempäälä. An approachable, domestic family business is a good fit for our municipality. We know the people of Kiilto and always know who we can talk to about matters.”


Sustainable business

Responsible together

A plant brings stability to the municipality as well “The KiiltoClean plant in Niemisjärvi has operated

Matti Mäkinen, the Municipal Manager of Hankasalmi

persistently and consistently. We have been pleased to see that, despite the harsh economic times, KiiltoClean has been able to keep operations stable and that neither the operations of the plant nor the personnel have been reduced. During the last 10-15 years, the significance of KiiltoClean as an employer has been considerable to the municipality. KiiltoClean is committed to the operations in Hankasalmi and demonstrates that by communicating actively with the municipality. We are aware of what is happening within the company and what plans they have for the future. We meet regularly and discuss current affairs. Open communication increases trust and makes reaching out easy. This has been a good way to operate. The KiiltoClean production facilities in the

Niemisjärvi area of Hankasalmi are modern and safe. Even though products of the chemical industry are manufactured there, no environmental problems have been caused. The company has made sure of that with their investments. A neat, well-maintained and modern industrial facility next to highway 9 is also a good advertisement for the municipality. The Niemisjärvi plant is important to us. It creates a sense of security and increases the stability of our operations. There is a strong trust in the municipality that the operations of the Hankasalmi plant will continue at least at the current level. Perhaps something will be added – there is certainly room for expansion on the property. KiiltoClean will have a bright future in Hankasalmi.”

NIEMISJÄRVI PLANT, HANKASALMI • The plant has been in operation since 1976. • The most recent time that the factory was expanded was in 2004-2005. • It employs approximately 20 people. • Liquid cleaning agents for retail and institutional customers are manufactured at the plant.

Thesis about the application of the ISO 26000 social responsibility standard at Kiilto Susanna Saari, MBA, examined in her master’s thesis how the introduction of the ISO 26000 social responsibility standard is visible in Kiilto operations. Together with Kiilto, Saari chose two core subjects of the standard as the topics of her investigation: human rights and community involvement and development. Regarding human rights, the practices of purchasing operations and human resources management were surveyed. For Kiilto, community is not only a regional concept but can also mean a subject-based local or operating environment. Regarding community involvement, the educational institution and research cooperation of Kiilto was chosen for examination. In her thesis, Saari investigated what the current practices and development needs of KIilto are regarding the core subjects and how human rights as well as the educational institution and research cooperation are connected with the business operations of the company. Saari states in her thesis that the educational institution and

research cooperation is an important way for Kiilto to implement social responsibility. The company receives direct and indirect benefits through the cooperation. Simultaneously, the company supports the activities of the community. Cooperation generates need-specific information, competence and resource potential for the company, improves recognisability and acts as a communication channel. The educational institution gains, for example, trainee and employment possibilities as well as development of their knowledge, education and transferable skills. The current supplier relationships in purchasing operations have been long-lasting and are based on trust. According to Saari’s research, the challenges caused by changes in the operating environment and the growing public attention regarding human rights, particularly at the upstream parts of the supply chain, are recognised at Kiilto nonetheless. Kiilto is familiar with the key national and international documents that define human

rights, respects them and supports operations that follow the rules set in them. The company is committed to the practices of responsible business defined in its ethical principles and requires the same from cooperation partners. The Finnish legislation in and of itself already ensures that human rights are observed in all operations related to personnel, for example compliance with equality and non-discrimination. The thesis resulted in development ideas around both examined subjects regarding, for example, systematics, measurability as well as survey, mapping and documentation practices.

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Sustainable business

Internship opens the door to chemistry

“For us, cooperation with educational institutions is a vital part of social responsibility. It inspires young people to study, gives a concrete image of working life, helps them understand the significance of the chemical industry and enables the training of practical skills. Through student trainees, useful information about the practical applications and needs related to skills reach the educational institutions of the field as well. Cooperation with educational institutions is also a way for us to gain skilled employees. Trainee programmes are our main channel of recruitment. Lilli Puntti, R&D Support Manager, Occupational Safety Manager, Kiilto Oy

Kiilto offers schoolchildren and students diverse opportunities to explore the world of

SUMMER EMPLOYEES (PERSONS/YEAR) no. 50 40 30 20 10 40

6

43

4

30

5

0 2012 Kiilto

50

2013 KiiltoClean

Responsibility report

2014

work, the chemical industry and Kiilto as a company. The company cooperates actively with various educational institutions and aims to increase the interest in studying chemistry and working in the chemical industry. Research projects and trainee positions that support studies are offered especially to students of chemistry and technology, but also for other degree programmes. At the earliest, a pupil of the comprehensive school age already has the opportunity to explore working life in the form of school-related work practice (TET). Internships and getting to know the practices of the company often lead to actual employment at Kiilto as well. The cooperation with educational institutions in characterised by both physical proximity and specific skills. During the review period 2012-2014, Kiilto has offered work practice or internship positions to 30-40 young people annually. FORMS OF COOPERATION WITH EDUCATIONAL INSTITUTIONS AT KIILTO: • Comprehensive schools: TET work practice, “Tutustu työelämään ja tienaa” summer job campaign, familiarisation visits, school sponsoring activities • Upper secondary schools: familiarisation visits, chemistry bursaries for sponsor schools, summer jobs • Vocational schools: internships, occupational competency assessments, summer jobs • Polytechnics: internships, summer jobs, thesis projects • Universities: internships, summer jobs, thesis projects, research cooperation

The first workstation in production for interns and summer employees is typically the packing section. Later, it is possible to proceed to manufacturing and product development. As students seek employment with us themselves, they are usually quite interested in the field. During the internship they can deliberate whether they are interested in the chemical industry or Kiilto as an employer. That way we gain motivated employees to the company. This cooperation also helps us in extremely busy situations because we can quickly get students who are already familiar with the company to work as extra manpower on a project basis.” Keijo Salomäki, Manufacturing Manager, Kiilto Oy


Sustainable business

Summer job prepares you for a career Kiilto offers 35–50 summer jobs for young people each year. Kiilto is involved in the summer job campaign organised by the Chemical Industry Federation of Finland. The campaign offers young people a chance to explore the field of chemistry and get interested in it as a possible career path. The summer job statistics of the participating companies are collected to the chemistry summer job calculator on the federation’s website. With the help of the calculator, the federation challenges its members to actively recruit seasonal employees. Antti Laaksonen wrote about his experiences as a summer employee at Kiilto for the Chemical Industry Federation of Finland’s “Kesä kemiassa” (Summer in chemistry) blog. Laaksonen studies at the University of Turku to become a craft teacher as well as a class teacher. ANTTI LAAKSONEN: A SUMMER IN CHEMICAL PRODUCTION ”CH3COOCH=CH2 – Say what? No worries, I would not know that this combination of letters and numbers is a part of the structural formula for a raw material of a dispersion based wood adhesive either. You see, you don’t always have to understand molar masses to work with chemistry. When I was at the upper comprehensive school age, that is in 2003–2005, I worked for two weeks each summer at the Kiilto chemical plant near Tampere as part of the “Tonnilla töihin” summer job campaign. At that time, the tasks were mainly related to the

maintenance of the property and the plant, from mowing the lawn to changing the air filters at the hot-melt adhesive plant. The next summer, I was old enough to work at the Kiilto packing section. My job involved packing various adhesives and building plasters straight from the mixer. The summer of 2007 went by with the same kinds of tasks. I tried other jobs too until I managed to gain a place to study at the Department of Teacher Education, which is something that I had pursued for a long time. Because of school holidays, it is pretty hard to find work related to my topic of study in the summer time. Luckily for me, Kiilto offers summer job opportunities for students. As a future craft teacher, I will be responsible for the chemicals used in the school together with the headmaster. The new policy requires that school institutions draw up a list of chemicals and data sheets for all chemicals used in the school. It is a part of risk management and occupational safety. I think that Kiilto is a particularly good role model regarding chemical safety because the company pays special attention to occupational safety. I will be responsible for material acquisition in my future job, so the experience and knowledge about adhesives that I have gained at Kiilto will be useful for sure. When I was signing my first employment contract over ten years ago, I never would have guessed that the summer job at Kiilto would have any connection to my future profession.”

Support for culture, sports and social projects Kiilto and KiiltoClean are actively involved in the everyday life of their immediate surroundings. The companies support culture, sports and social projects with various cooperative agreements. The support can be financial, material or intellectual. In addition to direct need for assistance, the selection of projects is affected by the goal-orientation and commitment of the partner as well as the wider social significance of the support work. The cooperative agreements are used to promote the implementation, recognisability and development of the selected partners and their representatives as well as good projects. In addition to long-term cooperative agreements, the companies are involved in several nonrecurring events as well.

“VASTUULLISUUTTA HYVÄÄ TEHDEN” RESPONSIBILITY CAMPAIGNS Kiilto and KiiltoClean organise the “Vastuullisuutta hyvää tehden” responsibility campaign in their operating municipalities once a year. The assistance targets of the campaign are usually practical projects such as putting the yard of the local elderly care centre in order, cleaning training for young city mission volunteers or the construction of a volleyball court for local residents. The companies organise the projects and cover the costs of necessary materials. By participating in the concrete renovation or construction work, each member of the personnel can contribute to the assistance project.

Responsible together

KiiltoClean volunteers set up a long-awaited playhouse for children KiiltoClean built a playhouse in the yard of the Mannerheim League for Child Welfare’s (MLL) Heideken family house in Southwest Finland in spring 2013. The building project was a part of the “Vastuullisuutta hyvää tehden” responsibility campaign of the company. A playhouse had been planned for the yard of the family house already in 2008 but its construction had been postponed because of costs. A similar voluntary effort had never been implemented before in the Southwest Finland district of MLL. – The concept of KiiltoClean’s responsibility campaign is great and cooperating with the company worked excellently in every way, Director of MLL’s Southwest Finland district Raija Haataja-Nurminen says. MLL is a volunteer work and an advocacy organisation for families with children. Its main tasks include providing assistance to families in difficult life situations and training volunteers for various relief efforts, such as acting as a support person. District offices maintain club and family cafes as well as organise trips and events. Companies support MLL’s activities by, for example, participating in event organisation, making product donations or donating the money allocated for Christmas cards to the league. Support from companies is precious, but there are also criteria for partners. – Naturally, it is essential for us that the company that we collaborate with operates responsibly, Haataja-Nurminen says.

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Sustainable business

Kiilto certifies Russian production Kiilto has two production facilities in Russia for the local market: adhesive plant in Ramenskoye and dry mix plant in Maloyaroslavets St. Petersburg and Moscow are important market areas for Kiilto. Russia is the largest export country of Kiilto. – Russia is strategically a very important growth area for us. The potential market for, for example, construction products is huge. However, the large size of the country also poses challenges since long distances increase freight costs, Managing Director of Kiilto Antti OK Nieminen says. Both Russian plants were awarded the ISO 9001 quality certification in 2014. The certification is an important competitive advantage in the Russian market for Kiilto. – The significance of the ISO 9001 certification is very extensive. Local customers appreciate the standard greatly because it indicates that the products are of high quality and that the production is controlled. Simultaneously, the standard serves as a guideline for employees. According to Nieminen, the biggest challenges in Russia are related to corporate culture. The procedures are different from

Finland and there is also corruption in the country. – We have created a so-called White Book for internal use, in which we dissociate ourselves from malpractice. Rigorous documentation of production work and unambiguous instructions are practical ways to control the operations, Nieminen states. The trade sanctions that came into effect in 2014 have not significantly affected the Russian operations of Kiilto so far. Having in-house production facilities in Russia is a clear advantage. The production is based on Russian raw materials and import restrictions have not reduced the activity of production. However, changes in exchange rates caused by the economic sanctions make pricing and running a profitable business difficult. – We believe that the difficulties are temporary and that the operations of the Russian factories will be stable in the future as well.

RUSSIA, ZAO KIILTO KLEI Founded: 1995 Main office and warehouse: In St. Petersburg, adhesive plant in Ramenskoye, dry mix plant in Maloyaroslavets Number of personnel: 138 (2014) Main products: adhesives, levelling compounds for floors and walls Main customers: building supply stores, wholesalers, retailers, construction companies, furniture and building element plants, graphic and packing industry The turnover of the Russian subsidiaries accounted for 21% of the total turnover of the Kiilto subgroup in 2014 (see p. 4).

’GLOCAL’ (GLOBALLY LOCAL) OPERATING PHILOSOPHY OF KIILTO FAMILY GROUP: ’We are a domestic, local actor and partner in each of our operating countries. We adapt our product, manufacturing and customer service expertise that is based on Finnish product development to correspond with the local conditions and needs of each of our operating countries.’

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Sustainable business

The competence of KiiltoClean is an advantage in Russia KiiltoClean manufactures liquid cleaning agents for the Russian professional market at the city of Sertolovo near St. Petersburg, Northwest Russia. The operations of the plant were launched in 2004. An in-house production facility ensures a strong foothold in the Russian market. – Our sales have developed well in the area over the last few years. Russia is already a key market area for us right now and it also has a significant role in our strategy for profitable growth, Kari Vainio, CEO of KiiltoClean, explains. The international trade sanctions enforced in 2014 and their effects, such as the weakening of the Russian rouble exchange rate, have slowed down the practical operations somewhat. However, a local organisation is a great strength. – The Russian subsidiary is an independent and strong unit which has good opportunities to operate in the market even in the current difficult general market conditions, Vainio evaluates. To strengthen the competitiveness in the Russian market even more, KiiltoClean will invest in the Russian operations, such as production, in the future. Ensuring the quality and competitiveness

of the products is important as well. A significant portion of the raw materials used at the Russian plant of KiiltoClean are exported from Finland. The product development of the company will stay firmly in Turku in the future as well. – We make sure that product compositions are both safe and competitive. In addition, we will develop the quality, environmental and occupational safety activities of the Russian unit and examine the possibility of certification for these operating systems where applicable, Vainio says. KiiltoClean’s competence in the hygiene sector is of interest to Russians. The company has consulted the organisation of the university hospital that is under construction in St. Petersburg about the development of hospital hygiene. In addition, the Russian customers of the company have visited and explored the hygiene solutions of the Finnish partners of KiiltoClean. – Our Russian customers have a desire to learn and develop their operations. We can promote their safe cleanliness and hygiene practices with our expertise.

OOO KIILTOCLEAN (RUSSIA) Founded: 2004 Main office: In St. Petersburg Sales office and warehouse: In Moscow Modern local production: In Sertolovo (outside of St. Petersburg) Strong position in Northwest Russia, the focus of growth is in Moscow as well as in other regional growth centres Main customer groups: foodstuffs industry, HoReCa (Hotel, Restaurant, Catering), health care, cleaning and commercial laundries Number of personnel: approximately 70 employees Turnover: The turnover of the Russian subsidiary accounted for approx. 11% of the total turnover of the KiiltoClean subgroup in 2014 (see p. 6).

The Russian subsidiary of Kiilto received positive recognition for their business operations in 2013–2014 on the basis of production proportions, liquidity, efficient use of resources, economic stability and activeness of business.

Leadership training provides tools for long-term strategic planning Kiilto launched a Leadership training programme aimed at the management of their international subsidiaries in Eastern Europe in October 2014. The idea for the training came from Managing Director Antti OK Nieminen and it was organised by Antti Uski, HR Manager of the parent company Kiilto Family Oy. The aim of the training is to create an insightful and conversational environment where participants can share their views about work and get new ideas. A wide range of course tasks also support the development of the participants’ own work. The language of the training is Russian and it consists of three two-day modules. The first training module on strategy and economics was organised in Helsinki in October 2015, the subsequent two will be organised in Tallinn in the spring of 2015. The training is organised by Mercuri International Russia.

“We went through our area of responsibility, its current situation, the future as well as the competitive situation with the help of versatile analysis models. Everyone composed a tactical plan for next year, a strategy plan for the next 3-5 years as well as defined their long-term goals and vision. All this underlined the importance of long-term planning. In our line of work, basing the strategy on regular analytical examination is extremely important because the markets that we operate in change fast and we are sure to find new viewpoints to planning and management work each time.” Tanel Lonks, Managing Director of Kiilto Estonia

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GRI content index Reported Partially reported

CONTENT COMPARISON WITH THE GRI G4 GUIDELINE RECOMMENDATIONS Key figure G4-1 G4-2

G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 G4-13 G4-14 G4-15 G4-16

Included Strategy and analysis CEOâ&#x20AC;&#x2122;s statement Key impacts, risks and opportunities, assessment of key aspects Organisational profile Name of the reporting organisation Primary trademarks/brands, products and services Location of organisation headquarters Number of operating countries and the names of the countries where the organisation has significant operations or that are specifically relevant regarding the key aspects of corporate responsibility covered in the report Nature of the ownership and legal form of the organisation Market areas Scale of the reporting organisation Total number of employees by employment relationship and employment contract, region and gender Percentage of total employees covered by collective bargaining agreements Supply chain of the organisation Significant changes in the size, structure, ownership or supply chain of the organisation during the review period Addressing the precautionary principle Externally developed principles and initiatives to which the organisation subscribes or which it endorses

G4-17 G4-18 G4-19

Memberships in associations and advocacy organisations Identified material aspects and boundaries Aspect boundary of the group Specification of report content Key material aspects

G4-20 G4-21 G4-22

Key aspect boundaries within the organisation Key aspect boundaries outside the organisation Restatements of information provided in previous reports

G4-23

Significant changes in the scope of the report and aspect boundaries Stakeholder engagement List of the stakeholders groups of the organisation Stakeholder identification and selection criteria Principles of stakeholder engagement

G4-24 G4-25 G4-26 G4-27 G4-28 G4-29 G4-30 G4-31 G4-32 G4-33

54

Most important topics and concerns raised by stakeholders Report description Review period Date of most recent previous report Reporting cycle Contact point where you can order the report and ask for more information GRI G4 content index Policy and current practice with regard to seeking external assurance

Responsibility report

Kiilto Oy page

KiiltoClean Oy page

5 5, 8-9, 10-11, 12-13, 17

7 7, 8-9, 10-11, 1213, 17

1 4 4 4

1 6 6 6

4 4 11, 35, 45 35 35 11 4 8, 17 8, 16, 46, 58, 60 46, 47

6 6 11, 35, 45 35 35 11 6 8, 17 9, 16, 46, 59, 60

1 1 8, 10-11, 14, 32, 44 1 1

BC = back cover

Further information

46, 47 1 1 9, 10-11, 14, 32, 44 1 1 1

13 12 12-13, 23, 30, 31, 36 12-13

13 12 12-13, 25, 30, 31, 33, 36 12-13

1 59 1, BC 1, BC 54-57 1

1 59 1, BC 1, BC 54-57 1

The data for the Turku and Hankasalmi plants of KiiltoClean have been combined in this report, in the previous report they were presented mainly separately. Other changes have been reported in connection with the relevant indicators. No relevant changes in aspect boundaries.


GRI content index

Key figure

G4-34 G4-35 G4-36 G4-37 G4-38 G4-39 G4-42 G4-45 G4-46 G4-47 G4-48 G4-49 G4-56 G4-57 G4-58

G4-EC1 G4-EC4 G4-EC7 G4-EC8

G4-EN1 G4-EN2 G4-EN3 G4-EN5 G4-EN6 G4-EN8 G4-EN10

Included Governance Governance structure and composition Governance structure and committees Delegation of authority Positions of responsibility Stakeholder consultation Composition of the board of directors Position of the chair of the board Role of the board of directors in defining the purpose, values and strategy of the organisation Role of the board of directors in defining the purpose, values and strategy of the organisation Role of the board of directors in risk management Role of the board of directors in risk identification and management Risk management efficiency assessment Frequency of risk assessments Role of the board of directors in corporate responsibility reporting Approval of the corporate responsibility report Role of the board of directors in economic, social and environmental responsibility performance assessment Communicating critical concerns Ethics and integrity of business Values and business principles Seeking advice on ethical and lawful behaviour in operations Reporting suspected malpractice Disclosures on management approach Generic disclosures on management approach (DMA) Economic responsibility Economic performance Direct economic value generated and distributed Financial assistance received from government Indirect economic impacts Development and impact of infrastructural investments and public good services supported Significant indirect economic impacts and their extent Environmental responsibility Materials Materials used by weight or volume Percentage of recycled materials Energy Energy consumption within the organisation Energy intensity Reduction of energy consumption Water Total water withdrawal by source Percentage and total volume of water recycled and reused

Kiilto Oy page

KiiltoClean Oy page

8, 10-11 4, 8 8 12 4 4

9, 10-11 6, 9 9 12 6 6

4, 10-11

6, 10-11

4, 8 8 8

6, 8, 9 8 8

8

9

8

9

10, 46, 58 46, 48 8, 48

10, 46, 59 46, 48 9, 48

10-11, 14, 17, 32, 44

10-11, 14, 17, 32, 44

45 45

45 45

45, 46, 51 45, 46, 47, 48

45, 46, 51 45, 46, 47, 48, 49

19 19

21 21

19 19 18

21 21 29

19 19

21

Further information

Responsibility report

55


GRI content index

Key figure

Included

G4-EN15 G4-EN21 G4-EN22 G4-EN23 G4-EN24 G4-EN25

G4-EN27 G4-EN28 G4-EN30

G4-EN31 G4-EN32 G4-EN33 G4-EN34

G4-LA1 G4-LA2 G4-LA3 G4-LA5 G4-LA6 G4-LA8 G4-LA9 G4-LA10 G4-LA11 G4-LA12

G4-LA14

56

Emissions Direct greenhouse gas emissions (scope 1) Nitrogen oxide (NOx), sulphur oxide (SOx) emissions and other significant air emissions Effluents and waste Total water discharge by quality and destination Total weight of waste by type and disposal method Total number and volume of significant spills Weight of transported, imported, exported or treated hazardous waste (as defined under the terms of the Basel Convention Annex I, II, III and VIII) as well as the percentage of internationally transported hazardous waste Products and services Extent of impact mitigation of environmental impacts of products and services Percentage of products sold and their packaging materials that are reclaimed by category Transports Significant environmental impacts of transporting products and other goods and materials for the organisationâ&#x20AC;&#x2122;s operations, and transporting members of the workforce General Total environmental protection expenditures and investments by type Supplier environmental assessments Percentage of new suppliers that were screened using environmental criteria Significant actual and potential negative environmental impacts in the supply chain and actions taken Environmental grievance mechanisms Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms Social responsibility Human resources and working conditions Employment Total number and rates of new employee hires as well as employee turnover by age group, gender and region Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation Return to work and retention rates after parental leave by gender Occupational health and safety Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advice on occupational health and safety programmes Type of injury and rates of injury, occupational diseases, lost workdays, absenteeism and total number of workrelated fatalities by region and gender Health and safety topics covered in formal agreements with trade unions Training and education Average hours of training per year per employee by gender and employee category Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews Diversity and equal opportunity Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity Equal remuneration Supplier assessment for labour practices Percentage of new suppliers that were screened using labour practices criteria

Responsibility report

Kiilto Oy page

KiiltoClean Oy page

19 19

21 21

19 19

21, 29

Further information

There have been no significant spills in either company during the review period. 19

21, 29

18, 27 18

25

18

45

45

17 15, 17

17 15, 17 There have been no such grievances in either company during the review period.

35 37

35 37

37

37

34

34

39

41

38

38

41, 42 34, 42

41, 42 34, 42

34

34

35

35

17

17

No work-related occupational diseases or deaths have been noted in either company during the review period.


GRI content index

Key figure

G4-HR9

G4-SO3 G4-SO4 G4-SO6 G4-SO8

G4-PR1 G4-PR2

G4-PR3

G4-PR4 G4-PR5 G4-PR7

G4-PR8

G4-PR9

Included Human rights Human rights assessments Total number and percentage of operations that have been subject to human rights reviews or impact assessments Bribery and anti-corruption Total number and percentage of operations assessed for risks related to corruption and the significant risks identified Communication and training on anti-corruption policies and procedures Public policy Total value of political contributions by country and recipient/beneficiary Regulatory compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Product responsibility Customer health and safety Percentage of significant product and service categories for which health and safety impacts are assessed for improvement Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their lifecycle by type of outcomes Product and service labelling Type of product and service information required by the organisationâ&#x20AC;&#x2122;s procedures for product and service information and labelling as well as percentage of significant product and service categories subject to such information requirements Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling by type of outcomes Results of surveys measuring customer satisfaction Marketing communications Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes Customer privacy Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Compliance Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

Kiilto Oy page

KiiltoClean Oy page

Further information

49

46

46

46, 52, 58

46 Neither company has distributed any political contributions. Neither company has incurred any such fines or non-monetary sanctions.

23, 27

22, 25 There have been no such incidents of non-compliance in either company during the review period.

15, 16, 20, 22

15, 16, 20, 22

There have been no such incidents of non-compliance in either company during the review period. 12, 23

12, 25 There have been no such incidents of non-compliance in either company during the review period. Neither company has been targeted with such complaints during the review period. Neither company incurred such fines during the review period.

ISO 26000 SURVEY: KEY TOPICS Key topic

Described in the report on page

1. Organisational governance

4, 6, 8-11, 17, 34, 36, 38-39, 58-59

2. Human rights

34, 36, 46, 49, 58-59

3. Labour practices

2, 32-43, 53, 58-59

4. Environment

5, 7, 14-23, 25, 27, 29, 42, 46-47, 58-60

5. Fair operating practices

10, 15, 17, 39, 46, 48, 58-59

6. Consumer issues

5, 7, 12-17, 20, 22-23, 25, 27, 30-31, 48

7. Community involvement and development

28, 37, 44-51

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Sustainable business

Kiilto quality principles • All Kiilto employees act responsibly in their work in accordance with the guidelines of our quality management system and regard the environmental, safety and social responsibility aspects contained in it. • All Kiilto employees know their responsibilities, duties as well as the related obligations and understand them as part of the overall quality. We always perform tasks in accordance with the agreed methods and existing guidelines. We immediately notify our supervisor of any changes and document them in the quality handbook. • All Kiilto employees commit to maintain and develop their professional skills, knowledge required to complete tasks as well as safety related to their own work and general safety. Our goals in all operations are compliance, problem prevention, negative environmental, health and safety impact minimisation as well as raw material and energy use optimisation. We note that we are a part of the working community and its wellbeing. We train, guide and encourage our personnel to act in ways that support these aspects and are responsible. • In our business, we are committed to honesty, anti-corruption as well as compliance with all laws, official instructions and regulations related to our operations. We comply with the Equality Act and the Non-Discrimination Act and respect internationally recognised documents that govern human rights. • We strive to promote the well-being and sustainable development of our internal and external environment actively and independently. Within the scope of our operations, we abide by the principles of social responsibility and our goal is that our entire value chain operates responsibly. • We maintain a dialogue with our stakeholders, respond to possible concerns and develop our operations on the basis of the feedback whenever that is possible.

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Responsibility report

• We tell about the operations and products of Kiilto responsibly. We instruct and guide in the correct and safe selection, use and disposal of our products, aiming to help our customer to act responsibly as well. • We abide by the agreements that we have made with our partners and follow good business practices. We recognise confidential information about strategy or third parties in our operations and keep it confidential. We operate in accordance with the spirit of free and open competition. We communicate our prices, contractual terms and services to our customers clearly and in accordance with good practices. • We expect that our cooperation and agreement partners comply with the quality, environmental and safety obligations defined in the Kiilto quality management system as well as adhere to the generally accepted operating model for responsibility. • An abnormal situation is an indication of a problem or a threat thereof in the operations of Kiilto Oy. All Kiilto employees are obligated to immediately report any safety risks or abnormal situations that they detect or suspect: defective products, defective equipment, improper or unsatisfactory activities. We investigate the reasons for the abnormal situation carefully and take the appropriate corrective measures to ensure that a similar situation or error does not occur again. • We systematically monitor, assess and develop the quality, environmental and safety levels as well as the implementation of social responsibility in our operations with selected indicators, internal audits, sell-assessments, expert consultations, management reviews, feedback and imposed correction and development procedures. • The management of the company heed the problems that have been detected or reported about product or operation quality, the environment and safety or the realisation of social responsibility and take immediate steps to maintain and develop overall quality.


Sustainable business

KiiltoClean operating policy The mission statement of KiiltoClean is “Creating cleanliness“ and the operating policies that guide its implementation are: • • • • •

F ulfilment of customer needs The desire to achieve and succeed Responsibility now and in the future The will to renew and develop Working together and appreciating/respecting others

We develop our products, production processes and operating methods by applying the best technically and economically viable technology and expertise. We commit ourselves to anticipate, reduce and prevent the negative environmental and health effects caused by our operations, products or services. Our goal is to prevent environmental pollution as well as injuries or health problems caused by work however we can. KiiltoClean sets targets annually for those environmental as well as occupational health and safety aspects that are recognised as the most important and monitors their implementation. The environmental focus areas are material and energy efficiency. Chemical safety, accident frequency and sick leaves are key viewpoints to occupational health and safety issues. KiiltoClean complies with the environmental as well as work, health and safety legislation that is in effect at the time as well as other regulations and requirements relating to our operations. KiiltoClean is involved with the voluntary Responsible Care environmental, health and safety programme of the chemical industry. In addition, KiiltoClean complies with the International Chamber of Commerce’s (ICC) Business Charter for Sustainable Development.

We interact closely with suppliers, customers, various organisations in the chemical industry as well as authorities. We promote the commitment of our personnel to improving the quality, environmental protection and occupational safety with education and training, investment in safe practices as well as by implementing responsibility teams. Responsible consideration of the environment and occupational safety is a natural, daily way to operate for the whole personnel. Our operating policy is public and applies to all employees. We expect that raw material suppliers and other business partners follow the same principles.

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Responsibility communications

THE RESPONSIBILITY COMMUNICATION PATH OF KIILTO AND KIILTOCLEAN

1990

2000

2010

• 1991  | “Know and inform about environmental

• 2003  | KiiltoClean’s ISO 9001 quality management

• 1992  | Responsible Care

• 2003  | Kiilto social responsibility report

• 1993  | ISO 9001 certified quality management system

• 2005  | KiiltoClean’s environment leaflet

protection” A chemical industry campaign in which Kiilto was one of the first companies to join. Kiilto joined the Responsible Care programme of the Chemical Industry Federation of Finland. was introduced at Kiilto and it was integrated with the principles of the Responsible Care programme. This integrated ISO 9001 system of Kiilto was the first integrated quality, safety and environmental management system in Finland.

• 1997  | Environment leaflet

Description of the environmental impacts and measures of Kiilto. Key performance indicators and targets were also introduced in the leaflet.

• 1999  | ISO 14001, BS 8800/OHSAS 18001

Environmental and safety standards were integrated with the ISO 9001 quality management system of Kiilto.

• 1999  | Kiilto environmental and safety report

The report had been compiled in accordance with the environmental and safety standards and indicators were reviewed critically.

*) The cleaning agent business was a part of Kiilto Oy’s operations until 2003. It was included in Kiilto’s responsibility and quality management systems as well as reporting practices and was thus included as a part of Kiilto in the aforementioned programmes and publications before 2003. In 2003, the cleaning agent business was transferred to the newly established KiiltoClean Oy and to its own responsibility, quality and reporting practices.

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Responsibility report

system and ISO 14001 environmental management system certification as well as joining the Responsible Care programme Elements of social responsibility were included in the report for the first time. Description of environmental impacts and measures in which key performance indicators and targets were also introduced.

• 2006  | Kiilto social responsibility report

The report expanded and the perspective of sustainable development was included.

• 2007  | KiiltoClean social responsibility report • 2009  | Kiilto corporate responsibility report

The report emphasised interaction and the importance of cooperation.

• 2009  | KiiltoClean corporate responsibility report

• 2010  | KiiltoClean introduced the OHSAS 18001

certified occupational health and safety system

• 2012  | Introduction to the ISO 26000

social responsibility standard The standard offered, for example, a new viewing angle, the concept of CSV (Creating shared value).

• 2012  | Kiilto and KiiltoClean corporate responsibility

report and vastuullinenkiilto.com website The report addressed, for example the consideration of the ISO 26000 standard in the operations of the companies. An abridged comparison to the GRI reporting guideline was presented in the report.

• 2012  | ISO 26000 project

The connecting of the ISO 26000 social responsibility standard to the ISO 9001 quality management system of Kiilto was initiated.

• 2015  | Kiilto and KiiltoClean corporate

responsibility report Corporate responsibility is reported in accordance with the GRI G4 guideline reporting principles while taking the principles and core subjects of the ISO 26000 into account as well. Stakeholders have a strong presence in the report. The vastuullinenkiilto.com website has been simultaneously updated to correspond with the viewpoints of the report.


The corporate responsibility report of Kiilto and KiiltoClean is published in Finnish and English. The report will be available in English in the summer of 2015. On the Internet, the report will be published on www.vastuullinenkiilto.com, www.kiilto.com and www.kiiltoclean.fi. The full report or selected parts of it can be printed from the vastuullinenkiilto.com website. The person responsible for the publication of the corporate responsibility report is Communications Specialist Armi Mehto, Kiilto Family Oy. The report was compiled by the working group Armi Mehto, Asta Vainionpää (Kiilto Oy), Maija Blomquist (KiiltoClean Oy), Nina Kempe (KiiltoClean Oy)

4041 0209 Printed matter

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Report concept and production: Communications agency Selander & Co. Design and layout: Marketing communications agency Atomi Printing house: Hämeen Kirjapaino Oy, August 2015

ClimateCalc CC-000025/FI

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www.vastuullinenkiilto.com www.kiilto.com www.kiiltoclean.fi

Responsible - Corporate Responsibility Report 2015  
Responsible - Corporate Responsibility Report 2015