Environmental & Social Information • Mar 12, 2019
Environmental & Social Information
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annual report / financials / responsibility / corporate governance
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| Responsibility at Elisa |
3 |
|---|---|
| Governance, goals and performance 7 |
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| Financial responsibility |
8 |
| Digital responsibility |
11 |
| Social responsibility16 | |
| Customer interaction and customer | |
| communication18 | |
| Environmental responsibility21 | |
| Description of the report |
23 |
| GRI index27 |
Elisa's corporate responsibility report is part of Elisa's annual report. The corporate responsibility report consists of two parts: a verified responsibility report and an annual review.
We promote sustainable and safe digitalisation, and have a major role in the functionality of society in Finland and Estonia. As a pioneer in telecommunications and digital services in Finland, we continuously develop our services to improve their reliability, security and availability, as well as to reduce their climate impact.
Our vision is to become a brand of excellence, which is why our strategy focuses on developing the customer experience and quality.
Our corporate responsibility is based on our strategy, values and business model. Our core markets are Finland and Estonia. We also provide digital services for the international market. Our business segments are Consumer and Corporate customer business units and we serve public administration, business and consumer customers. Our business is guided by persistent development of quality and internal operations.
Elisa has more than 2.8 million customers and we provide a responsible and reliable digital environment for the users of our services in Finland and Estonia. It is important for us that we provide added value to our customers and society, and conduct ourselves responsibly, ethically and lawfully in all situations. A common Code of Conduct promotes sustainable, ethical and successful business and deepens our stakeholders' trust in us.
We are committed to the principles of the UN Global Compact. In addition to the Global Compact, Elisa's own Code of Conduct guides the work of each Elisa employee. Together with Elisa's information security, anti-corruption, human rights and contract agreement principles they form a set of guidelines that we use to ensure ethical business, and a secure, anti-bribery and equal corporate culture.
Our corporate responsibility is based on our strategy, values and business model.
RESPONSIBILITY AT ELISA FINANCIAL RESPONSIBILITY DIGITAL RESPONSIBILITY SOCIAL RESPONSIBILITY ENVIRONMENTAL RESPONSIBILITY GRI INDEX
All Elisa's public commitments, policies and indexes can be found on the corporate responsibility website.
Global megatrends that influence Elisa's business and the business model are described under Annual Review 2018 in the annual report.
Together with our stakeholders, we have determined Elisa's key responsibility themes, which we measure with a scorecard. These themes allow us to best work to implement the UN Sustainability Goals either through our own actions (footprint) or through services developed for our customers and other stakeholders (handprint).
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In recognising Elisa's material corporate responsibility aspects, we have taken into account the most important financial, social and environmental effects of our operations, products and services, as well as other significant trends affecting the industry. We have also applied the GRI reporting guidelines.
The determination of material aspects is based on an extensive stakeholder survey that was carried out in 2017 as part of the work on the corporate responsibility strategy. In 2018, the determination of material aspects was revised based on our quarterly responsibility survey and other feedback from stakeholders.
Elisa's material corporate responsibility issues and key focus areas that we report:
Our most important stakeholders are our personnel, customers, owners, social operators and partners. Stakeholder assessment is performed annually in connection with the update of the materiality analysis by Elisa's Executive Board.
We engage in active dialogue with our stakeholders to develop our business and our responsibility. We regularly arrange meetings and systematically implement a variety of surveys and studies to obtain feedback. As of the beginning of 2018, we have measured our success quarterly in responsibility issues and as a social actor with an independent study (IRO Research, Omnibus). There are 1,000 respondents
for the survey. It is one of the indicators in Elisa's scorecard. Furthermore, we have added responsibility as one of the themes in the customer satisfaction surveys of the Elisa Viihde service, for example.
In 2018, we launched a tool for Elisa's key responsibility indicators on our investor website. Stakeholders can use the tool to study our performance in the different aspects of responsibility.
Our stakeholders can report suspected breaches of law or the Elisa Code of Conduct via our reporting channels. We continued to develop our notification channel procedure in 2018, and we will launch an anonymous whistleblowing channel on our website in early 2019. Notifications are investigated using specified processes. We address violations of law or the Code of Conduct by appropriate means.
In addition to the UN Global Compact, we have made the following international and national commitments:
The key indexes and independent assessments are updated on both our investor and our corporate responsibility webpages.
In 2018, we were one of the first organisations to join FIBS Pro, Finland's leading promoter of sustainable business.
More information on stakeholder dialogue as well as a description of corporate responsibility management and external initiatives can be found on our corporate responsibility website.
Risk management, including that of responsibility risks, is integrated into Elisa's business and management. We identify all risks influencing our business, measure their significance and influence them in compliance with our risk management process. We have identified the following key responsibility risks:
Climate risks that can influence the operational reliability of services, especially if extreme weather conditions become more common
Risks associated with personnel arrangements, outsourcing in particular; discrimination risks and risks associated with working conditions or equal pay
programs, including:
To identify data protection risks on our IT systems we performed a systematic investigation, prepared a development action plan and launched a continuous monitoring model. We operate our own network and carry out security audits for all critical equipment device suppliers. In the identification and updating of climate risks, we used the Task Force on Climaterelated Financial Disclosures (TFCD).
Elisa the first Finnish telecom operator to join the Science Based Targets initiative, and committed to the goals of the Paris Agreement.
For more information on Elisa's risk management, please see our investor pages. The management of risks associated with corporate responsibility is described in our corporate responsibility management principles and policies. There is more information about these principles and policies on our corporate responsibility website.
Corporate responsibility aspects are regularly discussed and approved by the Elisa Corporate Responsibility Executive Board, the Elisa Executive Board and the Board's audit committee. The responsibility report is signed by Elisa's Board of Directors.
Corporate responsibility is one of Elisa's strategic goals that is measured with a scorecard and that each Elisa employee can choose as their target.
We have also determined corporate responsibility goals and indicators that we annually report in our responsibility report.
| Topic | Target | Target year | Performance 2018 |
|---|---|---|---|
| Corporate citizenship | |||
| Trustworthy and human corporate citizenship |
• We enable a safe digital environment for everyone • We act with empathy and promote equality • We act responsibly, ethically and promote wise resource usage |
Continuous | 3,4/5 |
| Economic | |||
| Sustainable value for the society |
Elisa's medium term financial targets | 2021 | www.elisa.com/investors |
| Digital | |||
| Information security and privacy |
100% of Elisa employees have completed dataprotection training | Continuouns | 78% |
| Safeguarding functioning | Cyber security | Continuouns | 54% |
| society, accessibility and ease of use of our services |
Reducing the number of disturbances | 2020 | 50% |
| Social | |||
| Responsible employer and personnel well-being |
100% share of teams having employee satisfaction higher than ≥ 3.5 |
2021 | 90% |
| Responsible customer communication |
Customer satisfaction | 2019 | 95% |
| Ethical business and anti corruption |
All 100% of Elisa employees have conducted Code of Conduct trainings |
Continuouns | 65% |
| Sustainable supply chain | Development of sustainable supply chain | Continuouns | CSR audits; subcontractor OHS reporting development |
| Environment | |||
| Environmental responsibility | Science Based Target (T1) | 2025 | 100% |
| and climate change mitigation | CO2 emissions savings |
2018 | 99% |
Securing financial profitability and competitiveness, and taking into account our financial impact on society, are important parts of our responsible operations.
A key part of Elisa's revenue goes back to Finnish society in the form of investments, salaries, taxes, dividends paid to our owners and payments made to our partner network. We also participate in the persistent development of society through our active research and startup cooperation.
We annually invest some 12 per cent of our revenue in networks and services in our main market areas, Finland and Estonia. With these continuous investments, we build and maintain a comprehensive fixed network and mobile network, and introduce latest technologies to meet the needs of our digitalising society.
Financial effects 2018 (2017), EUR million
In 2018, our capital expenditure investments totalled EUR 254 (246) million. The capital expenditure investments were targeted at the development of networks, IT systems and customer terminal devices. We also invest in digital services in Finland and internationally.
In addition, we are a producer, financier and distributor of Finnish cultural content. We produce unique Finnish original productions in our Elisa Viihde service. In 2018, we launched five new series and two new sequel series. In 2018, our calculated cultural footprint amounted to some EUR 40 million (including direct content purchases mainly from Finnish parties and payments to producers, authors and copyright organisations).
We employ thousands of people in Finland and internationally. In 2018, we paid EUR 311 (304) million in salaries and social security costs.
We are one of Finland's largest taxpayers, and we paid most (more than 76 per cent) of the taxes paid by all the Finnish telecoms operators during the tax year 2017. By paying taxes and other public levies, we participate in the development of society as a whole. According to the confirmed tax information for 2017, Elisa was the tenth largest payer of corporate income tax.
Elisa's performance has an impact on the entire country in the form of the municipal share of corporate income tax. This
share is divided among Finnish municipalities in relation to the number of Elisa employees working in each municipality. Due to our extensive network of offices, we are one of the most important payers of corporate income taxes in many locations. More than 30 per cent of the corporate income tax we pay goes to almost 40 municipalities outside the Helsinki metropolitan area.
We comply with all laws and regulations and ensure compliance with laws and regulations through the direct and indirect taxes we pay in all the countries in which we do business. In 2017, we paid EUR 408 (383) million in taxes, of which EUR 65 (60) million was Finnish corporate income tax according to the confirmed tax information for 2017. In Estonia, a company must only pay corporate income tax if it pays dividends to its owners. Elisa's subsidiaries in Estonia have not paid any dividends to the parent company.
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A key part of Elisa's profit goes in dividends to our owners and to our comprehensive network of suppliers and subcontractors.
Elisa has some 186,000 owners, half of which are Finnish households and institutions. Our largest owner is Solidium Oy, a company owned by the state of Finland. According to Elisa's distribution policy, profit distribution is 80–100 per cent of the previous fiscal year's net profit. In 2018, we paid EUR 1.65 (1.50) per share, or a total of EUR 264 (240) million, in dividends to our owners.
In 2018, we paid EUR 890 (881) million in fees to our suppliers and subcontractors.
We at Elisa believe that successful and sustainable services and digital society can be built through collaboration between startups and academia.
In 2018, Elisa cooperated with more than a hundred researchers from a dozen countries, carrying out 16 research projects. We partnered up with the Finnish Center for Artificial Intelligence and its founding members – Aalto University, the University of Helsinki and VTT Technical Research Centre of Finland – to develop our expertise in advanced machine learning with the help of research collaboration.
In addition, through the HPY Research Foundation, we support scientific research, teaching and development work in Finnish telecommunications technology, telecommunications and data communications. By 2018, the HPY Research Foundation had granted a total of EUR 1,049,000 in scholarships, mainly to researchers preparing dissertations in different universities. The library of the HPY Research Foundation consists of 119 (109) dissertations.
Over the years, we have launched many innovations together with startups. In 2018, Elisa had more than 90 Finnish and international startup partners whose success we supported through these partnerships.
We continuously collect feedback from startups, and most of them would recommend Elisa to other startups, because Elisa is an easily approachable and agile partner. We aim for business that benefits both parties, in which we can act as an early-phase customer for startups or distribute their products and services through our effective sales channels.
This year, we held the Elisa Innovation Challenge for the fourth time to encourage both companies and private persons in creating new products and services with the help of new network technology.
In 2018, we also arranged the Elisa Artificial Intelligence Co-Creation Challenge to study the opportunity to change information into business. We built prototypes with the 13 teams that participated in the competition. The teams resolved problems in Elisa's different business areas: entertainment, Industrial IoT, operators' business processes, digital health care and customer service.
Important part of Elisa's corporate responsibility is to ensure that everybody in Finland and Estonia has an equal opportunity to utilise digital services. Combined with the comprehensive and functional network, Elisa's speed-based service model has made it possible for Finns to use more data than any other nation in the world.
As the world becomes more digital and more and more activities are handled electronically, cybersecurity becomes even more important. We are doing our part in building a safer digital environment.
Our business operations are based on the trust of our customers, the functionality of our services and information security.
Digitalisation has exposed us to online crime. As everything takes place online, an ever-increasing number of people are being subjected to more varied and professional malfeasance. Ethical principles guide all our operations. For instance, we strive to protect children in the digital environment. Customers, legislation and our business impose information security requirements, and information security is a key part of our operations and the quality of our services.
Furthermore, digitalisation and implementation of the new EU General Data Protection Regulation emphasise the significance of data protection. Elisa's built-in data protection not only minimises risks and their consequences, but also maintains customers' trust in companies.
We have made GDPR as simple as possible for our customers who can automatically access their data through the OmaElisa service.
In our information security policy and safety management model, we define the principles, roles and responsibilities that we follow in the development, maintenance and monitoring of security and data protection. The policies of the different sectors are binding on employees of Elisa, on our subsidiaries and, via agreements, also on Elisa's suppliers and subcontractors.
For more information about information security management, please see our corporate responsibility website.
We guarantee a high level of data protection in all our operations. We process personal data of our customers, employees and partners, which is why data protection and confidential communication are of utmost importance.
We have introduced data protection principles into all the stages of all of our operations that require the processing of personal data. Our employees and partners have received training on how to take data protection into account in their work, and we are all obligated to process as confidential any information included in the scope of privacy protection.
The EU's new General Data Protection Regulation (GDPR) entered into force on 25 May 2018. The implementation of the GDPR emphasised the significance of data protection and clarified the data protection requirements concerning the processing of personal data.
In 2018, we updated our data protection principles to comply with the requirements of the amended legislation. We also consider the interests of our customers in our work to ensure applicability of our communication to them.
Customers can automatically access their data through the OmaElisa service. They can use the simple user interface to manage the consents they have given. Elisa received over 11,000 personal data inquiries in 2018.
We specified the role of data protection administration in Elisa's operations by naming persons responsible for data protection for Elisa and separately for Elisa's operations in Estonia. We maintain and promote Elisa's competence at the unit level with a Data Protection Ambassador organisation. We have developed the data protection operations of our partners in cooperation with them, utilising agreements, training and technical tools.
Nearly 80 per cent of Elisa employees have completed GDPR training.
We commented on UNICEF's data protection rights recommendations for businesses, which will be included as part of a publication by the Ministry of Education and Culture on children's rights and data protection. In addition, we participated in a workshop where children in the 9th grade of comprehensive school familiarised themselves with data protection and developed the privacy policy of Elisa Viihde from the perspective of the rights of children and adolescents.
We made a decision on filtering child pornography websites in Elisa's network and on setting-up required practices. 12
Information security is a key part of our operations and the quality of our services. Information security certifications are an indication of Elisa's investments, competence and commitment in the development of information security. Elisa Dialog Information Security Management System, Capacity Services of Elisa's Production IT Platform & Hosting Services, and Elisa's Security Control are are certified according to ISO 27001. Elisa Videra, which operates in 100 countries all around the world, and Elisa's service operation in Santa Monica received their information security certification (ISO/IEC 27001:2013) in 2018.
To assist our customers in resolving information security issues raised by the GDPR, we continued to invest in our information security competence and the products we offer to our customers in 2018.
For more information about modern cyber security management, click here.
The Elisa Cyber Security Centre is a service independent of operators and hardware manufactures that handles information security events in the manner requested by the customer. We promoted the operations of the Elisa Cyber Security Centre by starting collaboration with F-Secure. F-Secure's detection service identifies attackers, malware and other abnormal behaviour online. Once a threat has been identified, the Elisa Cyber Security Centre responds to it to
minimise damage to the customer. This way, we can offer our customers more versatile opportunities to handle their cyber security.
To ensure that information security vulnerabilities are detected and information security is improved, we launched a Bug Bounty programme through which we allow hackers to search vulnerabilities from our digital services. Anybody who finds a vulnerability receives a reward.
Phishing and the spreading of malware have increased. Over the course of the year, some of our customers were subjected to both phishing and emails that contained malware. According to our practices, we immediately notified our customers of these incidents with instructions on what to do. We maintain instructions on our customer service website.
We introduced a strong user identification system on which telecoms operators made a joint agreement for verification of the identity of customers at our stores.
In 2018, we arranged both general and targeted information security training for all our employees. For example, our employees were trained with the help of simulated risk scenarios to act in the correct manner in situations involving information security threats or phishing. A total of 5,600 Elisa employees from different Elisa units participated in the simulation training.
The latest mobile technology 5G means a faster, more reliable and more energy efficient data transfer.
Continuously developing digital services require a reliable and faster communications network. Some of our key tasks in Finland and Estonia include ensuring comprehensive and reliable connections and doing our part in securing the operational reliability of society.
As in past years, most of our investments in 2018 were targeted at improving the reliability, energy efficiency and availability of our fixed and mobile networks. In addition to expanding the networks, we investigated and tested new technologies to assist our customers in developing and launching new digital services.
In the mobile network, we especially invested in 5G readiness in Finland and Estonia. We set up the world's first precommercial 5G networks in Helsinki, Tampere and Tallinn. We also added 5G readiness at several locations of our network to ensure that we were able to utilise the 5G frequency, that was granted in 2018, already at the beginning of 2019.
The latest mobile technology 5G means a faster, more reliable and more energy efficient data transfer.
In the everyday lives of our customers, this means a better customer experience when downloading or watching movies and video, for example. Different types of remote measuring services enable the measuring of large entities and reliable data transfer. The faster response time introduced by the 5G technology will also promote safer remotely controlled and self-controlled data traffic.
Furthermore, we established an NB-IoT (Narrowband Internet of Things) network. The new technology allows connecting a huge number of sensors with data directly to a mobile network, energy efficiently and easily. NB-IoT is also being utilised in a research programme called MegaSense where we, together with the University of Helsinki, assist improving the air quality in cities. The idea is to cover densely populated urban areas with a network of air quality sensors that can detect pollution sources. The current research cities are Helsinki and Beijing.
For more information, please see the environmental responsibility section.
Development of our fixed network continued. We renewed our optical cable trunk network, utilising micro-trenching, which speeds up the work and reduces the disturbance to residents and traffic.
Elisa's experts ensure that the services for our customers are functional 24 hours a day, every day of the year. On weekdays we ensure that hardware and connections remain functional by means of active monitoring, by repairing faults, by performing preventive maintenance, and by dismantling old systems. During on-call hours, we focus on anticipating threats and failures, repairing faults and performing modifications.
For a long time now, we have been able to reduce both the total number of faults and the number of major disturbances, regardless of the fact that our service volume has increased in both Finland and Estonia. In 2018, there were two extensive data traffic disturbances in Elisa's networks. The root causes of the disturbances were identified, the operations were improved and anticipation was improved.
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When we detect a disturbance, we will begin communicating with customers as soon as possible and continue the communication until the fault has been repaired. In 2018, we also continued our investments in proactive, comprehensive communication about disturbances.
For more information about network management and the safety of the mobile network, please see our corporate responsibility website.
The increased level of digitalisation brings with it not only huge opportunities, but also challenges for society. People's behaviour is changing, because in the future, customers will have to operate between the digital world and the real world. Meetings and presence are different in the digital world than in genuine social situations.
We continuously develop our products and services to suit our customers' needs based on feedback from customers and stakeholders. Key goals include accessibility, security, profitability and experiences. We aim to design services based on the needs of the most challenging customer in order to ensure that the services are accessible to everybody (Design for All).
To develop the different service channels and understand the customers' varied needs, we have studied the ways in which customers use our services, and we have analysed the challenges and problems of a multi-channel service environment (phone, online, stores). We have obtained more information and increased our understanding by, for example, interviewing customers of different ages (18–70+) at our stores to allow them to participate in the development of the services.
Digitalisation makes people less dependent on their physical location, which offers new opportunities to provide services. One of the most important development areas is remote health care, which Elisa is developing together with other parties active in the industry, health care providers and other health care companies.
The Elisa Etämittaus remote measuring application in Elisa's fast network allows health care professionals to reliably perform remote measurements and remotely diagnose patients. It is possible to create a programme to monitor people with asthma, high blood pressure, diabetes or abnormal blood INR levels, for example. The remote measuring service reminds the patient about the need to measure, saves time for all the parties involved and reduces the need to travel. On a broader scale, digitalisation boosts treatment processes, improves the balance of patient care and allows health care professionals to provide services in broader geographical areas.
In 2018, remote measuring research was conducted and remote measuring was developed together with Roche Diagnostics at several health care service points all around Finland. An assessment of the environmental benefits of remote services was launched. The remote monitoring of patients receiving anticoagulation treatment (remote INR monitoring) is being assessed, for example.
Elisa provided digital solutions for the New Children's Hospital, which opened in Helsinki in September. Together with Nokia, we donated to the hospital a mobile network that covers all of the indoor premises.
We continued our collaboration with the CleverHealth Network company ecosystem coordinated by the Hospital District of Helsinki and Uusimaa.
Lately, the negative effects of digital services on their users have been discussed, especially in the case of children and adolescents. We conducted a survey among Finnish youth aged bedween 15 to 17 years about the severity of online
bullying and harassment. To promote the rights of children in digital services, in January we arranged an event called Talkoot together with UNICEF and a team of international experts in the field. After the event, principles of supporting children's rights in digital services were published. The development work was done by a large group of experts in design, psychology, education, neuroscience and children's rights. The principles were used in the design of the digital services offered at the New Children's Hospital in Helsinki.
We maintain a website that offers parents information and support for online parenting.
For more information on service design management and Elisa's service design principles, please see our our corporate responsibility website.
For Elisa, social responsibility means caring for our customers, employees and partners. Key issues include the protection of human rights, equality, diversity, good management, wellbeing at work and security.
Elisa is an important employer: we employ thousands of professionals in Finland and abroad. We are a pioneer in flexible working methods, which are a key part of our working culture that we call Ideal Work. Furthermore, we want to act responsibly also in other issues pertaining to work and to work together to make Elisa the best workplace in Finland.
New ways of working allow for flexible working and alternation between work and leisure, as well as saving time and help to protect the environment. In working life, this requires continuous development, taking care of one's own wellbeing, trust, open interaction and clearly defined goals. In the autumn, we published a campaign called Kun elämä kutsuu, työ vastaa ("When life calls, work answers") where we provide more information on the flexibility of work at Elisa.
Elisa's management principles are based on shared values and objectives, clearly defined goals and coaching leadership approach. Daily management and regular development
discussions one-to-one between supervisors and employees are key parts of management at Elisa.
We are committed to the UN Women's Empowerment Principles. We determinedly promote equality and nondiscrimination, and we regularly monitor the achievement of our goals.
Equality is an important value for Elisa, and we want to be involved in the promotion of equal society and working life. We participated in the nationwide campaign Work Does Not Discriminate – a Campaign for Workplace Equality. Equally treating applicants during recruitment is also important, which is why we removed questions about age and gender from Elisa's job application forms.
We improved Elisa's diversity management skills and tools by offering diversity management training based on the methods of value-based leadership in collaboration with the Guides and Scouts of Finland.
Responsibility report 2018
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We assess the achievement of the equality and non-discrimination goals with an annual equality and non-discrimination survey. The result of the equality analysis improved again in 2018 to 4.52 (4.47) on a scale of one to five. More than 90 per cent of Elisa employees feel that Elisa treats people equally. Trust in supervisory work has been an important factor in achieving this status. Continuously developed areas include empathy and cooperation between different people. Equality assessments also improved in the 2018 personnel survey and Great Place to Work survey.
In addition, Elisa has been evaluated to be a responsible employer in many indexes and studies on responsibility. Equileap's international Gender Equality Global Report investigates equality at 3,000 listed companies in 23 countries. Elisa was among the best 200 companies in the world, as well as the best Finnish company in the communications sector and one of the top four Finnish companies overall.
Our employees and partners have the right to work in a healthy and safe working environment, and an obligation to
| Finland | 4,321 | Singapore | 2 |
|---|---|---|---|
| Estonia | 1,035 | Italy | 2 |
| Spain | 57 | Canada | 1 |
| Great Britain | 23 | Norway | 1 |
| Russia | 10 | ||
| France | 7 | ||
| Sweden | 5 | ||
| Hong Kong | 4 |
bear their responsibility for the working community. We have a zero-tolerance approach to workplace harassment and discrimination.
We promote wellbeing at work and occupational health and safety by means of daily management and early intervention. Furthermore, we cooperate with our partners and other companies in the industry to improve our own occupational health and safety and the occupational health and safety of the entire industry, especially in maintenance tasks related to data communication.
We offer high-quality health care with services considerably in excess of the Finnish statutory requirements. To support our staff in taking care of their wellbeing, we offer sports activities and hobbies.
In 2018, we introduced as one of our employer responsibility focus areas the employability of our employees. We want people to retain and develop their professional skills when they are working at Elisa.
For more information, please see the personnel review section of our annual report and the corporate responsibility website.
We care for our customers and aim to be fair and just.
Our customers include more than 2.8 million consumers, companies and public administration organisations in Finland, Estonia and around the world. A profound understanding of our customers' needs is a prerequisite for the continuous development of our service quality and our ability to react to changing needs.
Customer orientation is one of our guiding values, and customer satisfaction is an important factor in steering our operations.
We care for our customers and aim to be fair and just. Successful customer interaction and secure services that are easy to use are key issues in developing the customer experience.
In order to develop our services and operations, we continuously request feedback from our customers with the help of customer satisfaction surveys. We also use regional panels operating in Finland. They consist of representatives of our stakeholders and offer us valuable feedback for the development of our operations.
In 2018, following topics from the customer feedback were taken for further development the ease of operation, the functionality and reliability of Elisa's network, fast connections, suitable products and pricing, improved customer care of existing customers and ease of deployment. The feedback was analysed and further transferred into development plans and implementation for Elisa's business. In 2018, we focused
on developing a customer-contact model, ease of consumer contact and quality of customer encounter.
We have achieved good results by simplifying processes, adding expertise, clarifying instructions and improving the processing of feedback offered by customers who contact us. We corrected our proactive marketing of 5G telephone subscriptions due to a caution from the Consumer Ombudsman.
The positive development was reflected in our customer satisfaction indicator NPS (Net Promoter Score). Elisa's NPS score improved from previous year to 25.4 (21.1).
In the Sustainable Brand Index 2018, Finnish consumers determined Elisa as the most responsible company in the industry. The index lists Finland's most responsible companies based on the responsibility principles of the UN Global Compact.
For more information about customer interaction management, please see our corporate responsibility website.
We cooperate with more than 5,700 suppliers and subcontractors. They are an important part of the development of Elisa's responsible business operations. We purchase most of our services, materials and products from the EU, but some also from outside the EU. Active cooperation ensures that the quality and responsibility goals are reached in the different parts of the supply chain.
Over the course of the year, we introduced a shared supplier management system that allows integration of responsibility and better management of supplier information as a whole. We tested the system with a self-assessment survey sent to a targeted group of suppliers.
We use subcontractors in the building of networks in Finland and Estonia. Our partners have the right to work in a healthy and safe working environment. We collaborate with other parties in the industry to improve the conditions, instructions and regulations.
We also work together with our subcontractors to improve occupational health and safety at our worksites. Over the course of the year 34 accidents were notified in our construction and maintenance work by our main partners, resulting 31 absent days.
A corporate responsibility audit that is performed for all new suppliers from high-risk countries covers the issues specified in Elisa's general Code of Conduct, ethical procurement principles and human rights policy, such as working conditions and labour law, environmental issues, bribery, human rights and compliance.
Over the cource of the year no partners were rejected due to CSR audits. No serious observations were found in the audits. The milder development targets were related to occupational health, working time, and pay. We have agreed on development actions for the development areas with the suppliers and agreed together a schedule for implementing them.
For more information on responsible procurement, please see our corporate responsibility website.
Elisa's corporate responsibility includes supporting social projects and involvement in long-term cooperation with projects. Participation in social dialogue and collaboration with partners who comply with our values, are linked to our operations and address a broad target group are important for Elisa.
We have been engaged in long-term work towards the wellbeing of young people for several years. We work in close cooperation with Children of the Station to prevent marginalisation. In addition, we have made major investments in the Tukikummit Foundation and ShedHelsinki.
In 2018 as in the previous years, operation of the ShedHelsinki Foundation, which we established, culminated in a musical theatre performance. The play, Seikkailu Jouluyönä, was realised in cooperation with Shed and the Helsinki City Theatre. More than 130 young people between the ages of nine and 19 participated in the preparation of the musical theatre performance. For the first time, the unique experience was also interpreted into Finnish sign language.
We continued arranging our highly popular digital schools for children at 13 locations and at Elisa Kulma. Several other events were also arranged at Elisa Kulma over the course of the year. A workshop realised by the Millennial Board and Vamos identified methods and created solutions for the prevention of marginalisation of adolescents. As in the previous years, we also participated in Red Nose Day by arranging a TV broadcast from Elisa Kulma and a virtual collection box, Elisa Nettilipas.
Based on our collaboration with the Football Association of Finland, we added Women's League matches to Elisa Viihde Sport. Elisa believes that broadcasting live Women's League matches alongside the men's Ykkösliiga will encourage women and girls to consider football as a potential sports option.
Elisa's employees continued with their Pidetään yhtä ("Stay Connected") projects, where they can replace one working day with voluntary work. A total of 180 Elisa employees participated in the project by doing voluntary work at the Walkers Cafes of Children of the Station, in events of the Mannerheim League for Child Welfare, at clothes sorting stations of the Hope Association and assisting with the arrangements of Pride parades, for example.
Our employees have the option of donating their birthday and anniversary bonuses to charity. In 2018, the donations went to the Tukikummit Foundation. A Christmas drive where Elisa employees could purchase a present for a child or young person named by the association was arranged together with the Hope Association.
In the autumn of 2018, we realised an anti-bullying project, #sananvastuu, on social media. According to a survey we commissioned, even a single mean word can leave a lifelong mark on the victim and deteriorate their quality of life. The project aimed at promoting discussion on the severity and effects of online bullying and harassment. Our goal was to emphasise to adolescents and their parents how important a problem online bullying is and ask them to take responsibility for what they say, also online.
For more information on Elisa's cooperation projects, please see our website.
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Our persistent environmental responsibility work focuses on climate and energy. We want to promote the achievement of a carbon-neutral society. The reduction of carbon dioxide emissions has been part of Elisa's strategy since 2009.
We offer sustainable digital services that assist our customers in using natural resources in a smarter and more climate-friendly manner.
The ICT industry is a key player in the mitigation of climate change and in making the operating methods of society more environmentally friendly. Due to digitalisation, the volume of data will increase enourmously. The new 5G technology enables faster transfer of larger volumes of data in mobile networks. The growing volume of data means that more energy will be consumed.
We have systematically worked on reducing Elisa's climate impact. We determined our carbon footprint goals in compliance with the requirements of the Science Based Targets initiative and confirmed that they are in line with the goals agreed at the Paris Climate Change Conference. We are committed to aiming for carbon neutrality by 2050. The first milestone is to reduce the carbon footprint of our energy consumption by 50 per cent from the 2016 level by 2025.
We have also signed Commitment 2050 and are involved in Finland's energy efficiency agreement.
Through new technology and the optimisation of its mobile networks, Elisa has succeeded in reducing its electricity consumption. Our electricity consumption per bit has reduced by 50% (from the 2015 level).
We continuously optimise and renew our network, and we purchase zero-emission energy to make our own carbon footprint as small as possible. Our carbon footprint (Scopes 1 and 2) has decreased about 60 per cent since 2016. Almost all of the electricity we use comes from carbon-neutral, renewable sources.
We were able to increase the utilisation of waste heat at our server rooms. In our mobile networks, we continued emission savings through modernisation and energy-saving properties.
We are currently studying with Nokia and Efore the opportunity to utilise the heat generated by access points in the heating of buildings. Utilisation of the heat could allow us to reduce our CO2 emissions and our energy costs.
We help customers to reduce their carbon footprint by offering services that enable them to operate efficiently and in an environmentally friendly manner. The greatest savings were achieved by online interactive solutions and cloud services.
We annually report our carbon footprint with the CDP questionnaire aimed at international investors. We achieved a result A- in CDP climate change assessment. Thousands of companies from all around the world participate in the annual CDP climate reporting.
The calculation basis of Elisa's CO2 emission indicators and additional information are available on our website.
51,629
A significant part of the ICT industry's environmental impact comes from the manufacture of devices. As a service provider, Elisa can reduce the environmental impact of devices by effectively and properly recycling decommissioned devices.
WEEE recycling is available at our services, and we have prepared videos on how to recycle devices. We also encourage people to recycle by offering them compensation for their old phones through our Kapulanvaihto campaigns. Our sales personnel are provided with additional training on recycling, and we have started to switch in stages to environmentally friendly paper bags at our stores. We handle our producer liability obligations in cooperation with the ICT Producer Co-operative and Finnish Packaging Recycling RINKI Ltd.
For more information on Elisa's environmental policy and environmental management system, please see our corporate responsibility website.
22
14 15 16 17 18
4,811 5,544
9,480 13,142 Energy eciency of mobile data transfer kWh/GB
Elisa's annual report consists of four parts: financial statements, annual review, corporate governance statement and responsibility report. The annual report is published in Finnish and English at www.elisa.fi/vuosikertomus. The different sections can be downloaded as interactive PDF files.
This is Elisa's sixth verified responsibility report that is published as part of the annual report. The responsibility report is also a statement of Elisa's non-financial information. It has been prepared according to the Global Reporting Initiative GRI G4 Core requirements and the Nasdaq Nordic ESG Reporting Guide has also been taken into account when preparing it. The reporting period is the calendar year 2018. The Global Reporting Initiative index for 2018 is part of this report.
Elisa's management has decided to have the responsibility report verified by a third party. The 2018 corporate responsibility report is verified by EY. The verification covers the responsibility section of Elisa's 2018 annual report. The reporting of key aspects covers all of the business units and subsidiaries included in Elisa's consolidated financial statements: Consumer Customers, Corporate Customers, Production, Support Services and the subsidiaries.
The starting point for the reporting is the same scope as for the financial reports (the Elisa Group). For some indicators, the scope has been limited due to a lack of reliable information. Any deviations from the limitation are indicated in connection with the indicators. We will continue to develop the coverage of our reporting in these respects. The financial information is from the consolidated financial statements, and it complies with IFRS accounting principles.
With regard to environmental indicators, the most significant environmental effects of the parent company and its subsidiaries have been calculated in accordance with the GRI guidelines. The calculation of carbon dioxide emissions is based on the Greenhouse Gas Protocol Corporate Standard (www.ghgprotocol.org). The figures for Scope 3 are reported according to the GHG Protocol Corporate Value Chain standard. The reporting of Scope 2 emissions takes into account GHG Protocol Scope 2 instructions.
For a description of the calculation method, please see our corporate responsibility website. With regard to personnel, figures for both the parent company and subsidiaries are included. Structural changes in the Group are presented in more detail in the annual report. The responsibility report is published annually.
The previous reports are available at www.elisa.com/ investors. Before 2013, we compiled an index describing responsibility measures based on the GRI's sustainable development reporting guidelines in 2011 and 2012. The publication date of the 2018 report is 12 March 2019.
Elisa Corporation Minna Kröger, Director, Corporate Responsibility Tel. +358 50 572 7620 [email protected]
Corporate responsibility website: http://corporate.elisa.com/responsibility
At the request of the Management of Elisa Oyj (hereafter Elisa) we have performed a limited assurance engagement on the information presented for the reporting period 1.1.–31.12.2018 in Elisa's Corporate Responsibility Report 2018 (hereafter corporate responsibility information).
The Management of Elisa is responsible for the preparation and presentation of the corporate responsibility information in accordance with the GRI Sustainability Reporting Standards 2016, and Elisa's internal reporting guidelines (hereafter the reporting principles).
It is our responsibility to present an independent conclusion on the corporate responsibility information based on our work performed. We do not accept nor assume responsibility to anyone else except to Elisa for our work, for the assurance report and for the conclusions that we have reached.
We have conducted the assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 'Assurance Engagements Other than Audits or Reviews of Historical Financial Information'. The ISAE 3000 standard requires compliance with ethical requirements as well as planning and performing the assurance engagement to obtain limited assurance on whether the corporate
responsibility information has been prepared, in all material respects, in accordance with the reporting principles.
We comply with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the IESBA (International Ethics Standards Board for Accountants). We apply ISQC 1 (International Standard on Quality Control) and accordingly maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
In a limited assurance engagement the evidence gathering procedures are more limited than in a reasonable assurance engagement, and therefore less assurance is obtained than in a reasonable assurance engagement. The procedures selected depend on the Assurance Provider's judgment, including an assessment of the risks that the corporate responsibility information would not, in all material respects, comply with the reporting principles. We have planned and performed our engagement to obtain sufficient appropriate evidence on which to base our conclusion.
We have performed, among others, the following procedures:
Our assurance report should be read in conjunction with the inherent limitations of accuracy and completeness for corporate responsibility information. This independent assurance report should not be used on its own as a basis for interpreting Elisa's performance in relation to its principles of corporate responsibility.
Based on our work described in this report, nothing has come to our attention that causes us to believe that the corporate responsibility information has not been prepared, in all material respects, in accordance with the reporting principles, or that the Information is not reliable, in all material respects, based on the reporting principles.
Helsinki, 7 March 2019
Ernst & Young Oy
Partner, Authorized Public Accountant
Leader of Climate Change and Sustainability Services
Helsinki, 6 March 2019
| Raimo Lind Chairman of the Board of Directors |
Clarisse Berggårdh | Petteri Koponen | |
|---|---|---|---|
| Leena Niemistö | Seija Turunen | Anssi Vanjoki | 26 |
| Antti Vasara | Veli-Matti Mattila |
President and CEO
Responsibility report 2018
| Content | Name | Boundary | UN Global Compact |
|
|---|---|---|---|---|
| Internet page: http://corporate.elisa.com/responsibility | ||||
| GRI 102: GENERAL DISCLOSURES (GRI 102, 2016 standard) | ||||
| 1. Organizational Profile | ||||
| 102-1 | Name of the organization | Accounting principles | Elisa Corporation | x |
| 102-2 | Activities, brands, products, and services | Elisa in brief | Elisa Corporation | x |
| 102-3 | Location of headquarters | Basic information on the Group | Elisa Corporation | x |
| 102-4 | Location of operations | CEO's review, Responsible employer , CSR report | Elisa Corporation | |
| x | ||||
| 102-5 | Ownership and legal form | Shares and shareholders, CSR report | Elisa Corporation | x |
| 102-6 | Markets served | Notes to the financial statements 1. | Elisa Corporation | x |
| 102-7 | Scale of the organization | The report of the board of directors; Notes to the financial statements 1. |
Elisa Corporation | x |
| 102-8 | Information on employees and other workers | GRI data, CSR report | Elisa Corporation | x |
| 102-9 | Supply chain | Partners | Elisa Corporation | x |
| 102-10 | Significant changes to the organization and its supply chain | Notes to the financial statements 2. | Elisa Corporation | x |
| 102-11 | Precautionary Principle or approach | GRI data | Elisa Corporation | |
| 102-12 | External initiatives | Responsibilty at Elisa; Policies and guidelines; Indices and commitments; Management and targets |
Elisa Corporation | |
| 102-13 | Membership of associations | Stakeholder dialogue | Elisa Corporation | |
| 2. Strategy | ||||
| 102-14 | Statement from senior decision-maker | CEO's review | Elisa Corporation | x |
| 102-15 | Key impacts, risks, and opportunities | Responsibility at Elisa; Risks ; GRI data | Elisa Corporation | x |
| 3. Ethics and Integrity | ||||
| 102-16 | Values, principles, standards, and norms of behavior | Responsibility at Elisa; Code of conduct | Elisa Corporation | x |
| 102-17 | Mechanisms for advice and concerns about ethics | Key topics and stakeholders; Stakeholder dialoque | Elisa Corporation | x |
| 4. Governance | ||||
| 102-18 | Governance structure | Governance structure; Management and targets | Elisa Corporation | x |
| 102-19 | Delegating authority | Governance structure; Management and targets | Elisa Corporation | x |
| 102-20 | Executive-level responsibility for economic, environmental, and social topics | Management and targets | Elisa Corporation | x |
| 102-21 | Consulting stakeholders on economic, environmental, and social topics | Key topics and stakeholders; Customer interaction and customer communications; Management and targets |
Elisa Corporation | x |
| Content | Name | Boundary | UN Global Compact |
|
|---|---|---|---|---|
| 102-22 | Composition of the highest governance body and its committees | Governance structure | Elisa Corporation | x |
| 102-23 | Chair of the highest governance body | Governance structure | Elisa Corporation | x |
| 102-24 | Nominating and selecting the highest governance body | Governance structure | Elisa Corporation | x |
| 102-25 | Conflicts of interest | Governance structure | Elisa Corporation | x |
| 102-26 | Role of highest governance body in setting purpose, values, and strategy | Charter of the Board of Directors | Elisa Corporation | x |
| 102-28 | Evaluating the highest governance body's performance | Governance structure | Elisa Corporation | x |
| 102-29 | Identifying and managing economic, environmental, and social impacts | Governance strucuture | Elisa Corporation | x |
| 102-30 | Effectiveness of risk management processes | III Descriptions of internal control procedures and main features of risk management systems. |
Elisa Corporation | x |
| 102-31 | Review of economic, environmental, and social topics | Key topics and stakeholders, Economic topics - CSR report | Elisa Corporation | x |
| 102-32 | Highest governance body's role in sustainability reporting | Signatures to the corporate responsibility and non-financial report |
Elisa Corporation | x |
| 102-33 | Communicating critical concerns | Internal auditing | Elisa Corporation | x |
| 102-35 | Remuneration policies | Remuneration statement | Elisa Corporation | x |
| 102-36 | Process for determining remuneration | Remuneration statement | Elisa Corporation | x |
| 102-37 | Stakeholders' involvement in remuneration | Remuneration statement | Elisa Corporation | x |
| 5. Stakeholder Engagement | ||||
| 102-40 | List of stakeholder groups | Stakeholder dialoque; Key topics and stakeholders | Elisa Corporation | x |
| 102-41 | Collective bargaining agreements | GRI data | Elisa Corporation | x |
| 102-42 | Identifying and selecting stakeholders | Key topics and stakeholders | Elisa Corporation | x |
| 102-43 | Approach to stakeholder engagement | Stakeholder dialoque; Customer interaction and customer communications, CSR report |
Elisa Corporation | |
| 102-44 | Key topics and concerns raised | Key topics and stakeholders; Customer interaction and customer communications; Partners, CSR report |
Elisa Corporation | x |
| 6. Reporting Practice | ||||
| 102-45 | Entities included in the consolidated financial statements | Description of the report | Elisa Corporation | |
| 102-46 | Defining report content and topic Boundaries | Foundation; Description of the report | Elisa Corporation | |
| 102-47 | List of material topics | Key topics and stakeholders; GRI data | Elisa Corporation | |
| 102-48 | Restatements of information | Description of the report | Elisa Corporation | |
| 102-49 | Changes in reporting | Description of the report | Elisa Corporation | |
| 102-50 | Reporting period | Description of the report | Elisa Corporation | x |
| 102-51 | Date of most recent report | Description of the report | Elisa Corporation | x |
| 102-52 | Reporting cycle | Description of the report | Elisa Corporation | x |
| 102-53 | Contact point for questions regarding the report | Reporting and contact information | Elisa Corporation | x |
| 102-54 | Claims of reporting in accordance with the GRI Standards | Description of the report | Elisa Corporation | x |
| 102-55 | GRI content index | GRI index | Elisa Corporation | x |
| 102-56 | External assurance | Description of the report ; GRI index | Elisa Corporation | x |
| Content | Name | Boundary | UN Global Compact |
|
|---|---|---|---|---|
| TOPIC SPECIFIC CONTENT | ||||
| GRI 103: MANAGEMENT APPROACH (GRI 103, 2016 standard) | ||||
| 103-1 | Explanation of the material topic and its Boundary | Key topics and stakeholders; Description of the report; GRI index |
Elisa Corporation | |
| 103-2; 103-3 | The management approach and its components; Evaluation of the management approach |
|||
| Indirect economic impacts, DMA (Disclosures on Management Approach) | Foundation; Financial responsibility; Research and development; Management and targets |
Elisa Corporation | x | |
| Energy, DMA | Foundation; Environmental responsibility ; Management and targets |
Elisa Corporation | x | |
| Emissions, DMA | Foundation; Environmental responsibility; Management and targets |
Elisa Corporation | x | |
| Products and services, DMA | Foundation; Environmental responsibility ; Management and targets |
Elisa Corporation | x | |
| Effluents and waste, DMA | Foundation; Environmental responsibility ; Management and targets |
Elisa Finland | x | |
| Compliance, DMA | Foundation; Responsibility at Elisa, Code of Conduct | Elisa Corporation | x | |
| Marketing Communications , DMA | Foundation; Customer interaction and communication ; Ease of use; Management and targets |
Elisa Corporation | x | |
| Customer privacy, DMA | Foundation; Digital responsibility; Data security and privacy; Management and targets |
Elisa Corporation | x | |
| Customer Health and Safety , DMA | Foundation; Functional network and services | Elisa Corporation | x | |
| Employment, DMA | Foundation; Responsible employer; Management and targets Elisa Corporation | x | ||
| Diversity and Equal Opportunity , DMA | Foundation; Responsible employer; Management and targets Elisa Corporation | x | ||
| Occupational Health and Safety , DMA | Foundation; Personnel review; Management and targets | Elisa Corporation | x | |
| Training and Education , DMA | Foundation; Personnel review; Management and targets | Elisa Corporation | x | |
| Non-discrimination , DMA | Foundation; Responsible employer; Code of conduct; Management and targets |
Elisa Corporation | x | |
| Security Practices, DMA | Foundation; Data security and privacy; Management and targets |
Elisa Corporation | x | |
| DMA, Anti-corruption | Foundation; Partners ; Code of conduct; Anti-corruption policy; Management and targets |
Elisa Corporation | x | |
| Public Policy, DMA | Foundation; Stakeholder dialogue; Code of conduct | Elisa Corporation | x | |
| GRI 201: ECONOMIC PERFORMANCE (GRI 201, 2016 standard) | ||||
| 201-1 | Direct economic value generated and distributed | GRI data | Elisa Corporation | |
| 201-2 | Financial implications and other risks and opportunities due to climate change | GRI data | Elisa Corporation | |
| GRI 203: INDIRECT ECONOMIC IMPACTS (GRI 203, 2016 standard) | ||||
| 203-1 | Infrastructure investments and services supported | GRI data | Elisa Corporation | |
| 203-2 | Significant indirect economic impacts | Research and development; Responsible employer; Networks | Elisa Corporation |
| Content | Name | Boundary | UN Global Compact |
|
|---|---|---|---|---|
| GRI 205: ANTI-CORRUPTION (GRI 205, 2016 standard) | ||||
| 205-2 | Communication and training about anti-corruption policies and procedures | GRI data | Elisa Corporation | x |
| 205-3 | Confirmed incidents of corruption and actions taken | GRI data | Elisa Corporation | x |
| GRI 302: ENERGY (GRI 302, 2016 standard) | ||||
| 302-1 | Energy consumption within the organization | GRI data | Elisa Corporation | x |
| 302-2 | Indirect Energy consumption by primary source | GRI data | Elisa Corporation | x |
| 302-3 | Energy intensity | GRI data | Elisa Corporation | x |
| 302-4 | Reduction of energy consumption | GRI data | Elisa Corporation | x |
| 302-5 | Reductions in energy requirements of products and services | GRI data | Elisa Corporation | x |
| GRI 305: EMISSIONS (GRI 305, 2016 standard) | ||||
| 305-1 | Direct (Scope 1) GHG emissions | GRI data | Elisa Corporation | x |
| 305-2 | Energy indirect (Scope 2) GHG emissions | GRI data | Elisa Corporation | x |
| 305-3 | Other indirect (Scope 3) GHG emissions | GRI data | Elisa Corporation, A more detailed description at the context of the indicator |
x |
| 305-4 | GHG emissions intensity | GRI data | Elisa Corporation | x |
| 305-5 | Reduction of GHG emissions | GRI data | Elisa Corporation | x |
| GRI 306: EFFLUENTS AND WASTE (GRI 306, 2016 standard) | ||||
| 306-2 | Waste by type and disposal method | GRI data | Elisa Finland | x |
| 306-3 | Significant spills | GRI data | Elisa Finland | x |
| GRI 307: ENVIRONMENTAL COMPLIANCE (GRI 307, 2016 standard) | ||||
| 307-1 | Non-compliance with environmental laws and regulations | GRI data | Elisa Corporation | x |
| GRI 401: EMPLOYMENT (GRI 401, 2016 standard) | ||||
| 401-1 | New employee hires and employee turnover | GRI data | Elisa Corporation | x |
| 401-2 | Benefits provided to full-time employees that are not provided to temporary or part time employees |
GRI data | Elisa Corporation | |
| GRI 403: OCCUPATIONAL HEALTH AND SAFETY (GRI 403, 2016 standard) | ||||
| 403-1 | Workers representation in formal joint management–worker health and safety committees |
GRI data | Elisa Corporation | |
| 403-2 | Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities |
GRI data | Elisa Corporation, excluded Fonum |
| Content | Name | Boundary | UN Global Compact |
|
|---|---|---|---|---|
| GRI 404: TRAINING AND EDUCATION (GRI 404, 2016 standard) | ||||
| 404-1 | Average hours of training per year per employee | GRI data | Elisa Corporation | x |
| 404-2 | Programs for upgrading employee skills and transition assistance programs | Personnel review | Elisa Corporation, excluded Enia, Hong Kong ja LNR kommunications Oy |
|
| 404-3 | Percentage of employees receiving regular performance and career development reviews |
GRI data | Elisa Corporation | x |
| GRI 405: DIVERSITY AND EQUAL OPPORTUNITY (GRI 405, 2016 standard) | ||||
| 405-1 | Diversity of governance bodies and employees | GRI data | Elisa Corporation | x |
| GRI 406: NON-DISCRIMINATION (GRI 406, 2016 STANDARD) | ||||
| 406-1 | Incidents of discrimination and corrective actions taken | GRI data | Elisa Corporation | x |
| GRI 410: SECURITY PRACTICES (GRI 410, 2016 standard) | ||||
| 410-1 | Security personnel trained in human rights policies or procedures | GRI data | Elisa Finland | x |
| GRI 415: PUBLIC POLICY (GRI 415, 2016 standard) | ||||
| 415-1 | Political contributions | GRI data | Elisa Corporation | x |
| GRI 416: CUSTOMER HEALTH AND SAFETY (GRI 416, 2016 standard) | ||||
| 416-2 | Incidents of non-compliance concerning the health and safety impacts of products and services |
GRI data | Elisa Corporation | |
| GRI 417: MARKETING AND LABELING (GRI 102, 2016 standard) | ||||
| 417-3 | Incidents of non-compliance concerning marketing communications | GRI data | Elisa Corporation | |
| GRI 418: CUSTOMER PRIVACY (GRI 418, 2016 standard) | ||||
| 418-1 | Substantiated complaints concerning breaches of customer privacy and losses of customer data |
GRI data | Elisa Corporation |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Net sales, EUR million | 1,647 | 1,787 | 1,832 |
| Suppliers and partners | 802 | 881 | 890 |
| Personnel remuneration | 275 | 304 | 311 |
| Dividends and interests | 248 | 263 | 288 |
| Taxes and other public oblications | 60 | 65 | 66 |
| Capital expenditure investments (2 | 204 | 246 | 254 |
| Taxes, EUR, million | 383 | 408 | 439 |
| Corporate tax | 60 | 65 | 66 |
| Value-added tax | 207 | 215 | 236 |
| Income tax and withholding tax | 93 | 94 | 101 |
| Public fees | 12 | 19 | 20 |
| Other taxes and public fees | 11 | 16 | 16 |
1) Incl. financial incomes
2) Capital expenditure investments differs from GRI definition and doesn't include investments in licenses.
32
| Risk | Description | Impact assesment | Risk management/opportunity |
|---|---|---|---|
| International agreements |
The New Paris agreement strive for limit average temperature to 1.5°C and to update national targets every five years to keep raising ambition |
Estimated cost for Elisa of carbon pricing is EUR 100,000- 200,000. Estimated implications are less than 1% of operational costs |
We have set Science based target, which is in line with Paris agreement´s targets. We use renewable energy so that our customers could use low-carbon connections. |
| Fuel/energy taxes and regulations |
Changes caused either directly or indirectly by climate change in the taxation of electricity, taxation of transmission of electricity and any carbon dioxide tax |
Average electricity price in Europe is expected to grow 18% to 2030 compared to 2010 levels mainly due regulation e.g. requirements concerning renewal energy production shares. 18% increase in Elisa´s electricity cost is about EUR 4 million. |
Elisa manages the risk with group wide energy/carbon footprint management system. Work is managed by energy efficiency working group. Our customers can act more energy efficient way by using our services. For example based our studies, one virtual server is even 95% energy efficient than physical server. |
| General environmental regulations |
In Finland ´s new national Climate change act came into force in 6.1.2015 The law provides for climate policy planning system and monitoring the achievement of climate change goals |
It will potentially increase the need for even more detailed measurement and monitoring of energy consumption. This also adds pressures to more ambitious carbon target setting and carbon pricing. |
We are constantly working on better measurement and calculations, using renewal energy and we we have set more ambitious middle – and long term target to our carbon footprint. Our customers can reduce their own carbon footprint by using digital services for example our virtual meeting services. Based our calculations one virtual meeting will save 25 kgCO2 per meeting. |
| Extreme weather phenomena |
Climate change causes extreme weather phenomena that are a threat for Elisa's mobile networks. Storms cause power failures and interruptions in Elisa's services. |
The increase in the number of disruptions causes higher personnel costs and costs incurred in replacing broken equipment.Estimated costs are based on one actual severe disruption event. Cost may vary from 200,000 to 500,000 EUR, depending on overall circumstances. |
Elisa has in place a real-time, comprehensive monitoring system for network disturbances. This enables identification of disturbances and rapid repairs. The demand for real-time measurement and monitoring services will increase in the future. |
| Changes in average temperature |
Rising average temperatures and heat waves will increase the need for cooling in Elisa's telecommunications and data centres and facilities. |
Costs will increase due to the increased electricity consumption incurred from investments in cooling devices.We estimate that the implication could be about 1% growth in electricity consumption which equals about EUR 96,000 (EUR 36/MWh). |
Elisa has a data centre in Espoo that uses heat loss energy generated by the data centre servers for district heating in the region. We have increased our heat loss energy usage also in our office environments. |
| Growing environmental awareness of our stakeholders |
Climate change increases the environmental awareness of Elisa's stakeholder groups. Reporting to stakeholders is increasing, as are the requirements for climate-friendly operations. |
The risk impacts to the demand of Elisa´s services. According to Sustainable Brand Index report 2017 33% of the consumers are willing to pay 10% more for sustainable products and services. If Elisa fails to take advance of that potential, that could result 3.3 % decline in future consumer business revenue (approximately it is EUR 33 million). |
Elisa's services make it possible to build a lower carbon society. Growth in Elisa's business and may also create new business operations. For example our new Elisa remote measurement service to asthma patients could save CO2 emissions 12% meanwhile monetary savings compared to old process are 20%. |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Capital expenditure, EUR million (1 | 204 | 246 | 254 |
| CAPEX/revenue, % | 12 | 13 | 12 |
1) Investments are mainly commerical investments
| 2016 | 2017 | 2018 | ||
|---|---|---|---|---|
| Virtual meetings | 227,556 | 268,586 | 289,380 | 34 |
| Distance working days/person/year | 77 | 75 | 72 | |
| Carbon dioxide savings (tCO2 ) |
5,101 | 5,606 | 6,338 |
416-2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes One incident under investigation in 2018.
417-3 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes Individual inquiries from the Data Protection Ombudsman. No formal comments on direct marketing.
418-1 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Two requests for clarification which have been responded in 2018.
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Personnel in total, 31.12.2017 | 4,781 | 5,152 | 5,468 |
| Permanent contract | 4,475 | 5,008 | 5,335 |
| Finland | 3,838 | 4,009 | 4,236 |
| Estonia | 506 | 888 | 989 |
| Other countries | 131 | 111 | 110 |
| Men | 2,962 | 3,283 | 3,572 |
| Women | 1,513 | 1,725 | 1,763 |
| Temporary contract | 306 | 144 | 133 |
| Finland | 189 | 70 | 85 |
| Estonia | 112 | 71 | 46 |
| Other countries | 5 | 3 | 2 |
| Men | 192 | 80 | 65 |
| Women | 114 | 64 | 68 |
| Full- time employees | 3,926 | 4,291 | 4,464 |
| Finland | 3,236 | 3,302 | 3,427 |
| Estonia | 563 | 888 | 936 |
| Other countries | 127 | 101 | 101 |
| Men | 2,570 | 2,773 | 2,924 |
| Women | 1,356 | 1,518 | 1,540 |
| Part-time employees | 855 | 861 | 1,004 |
| Finland | 791 | 777 | 895 |
| Estonia | 55 | 80 | 99 |
| Other countries | 9 | 4 | 10 |
| Men | 584 | 590 | 713 |
| Women | 271 | 271 | 291 |
| 102-41 Percentage of Total Employees Covered by Collective Bargaining Agreements | 2016 | 2017 | 2018 |
|---|---|---|---|
| 82% | 78% | 77% | |
| 401-1 Total number and rates of new employee hires and employee turnover by age group, gender and region (1 | |||
| 2016 | 2017 | 2018 | |
| New employee hires | 1,224 | 1,396 | 1,517 |
| Finland | 922 | 1,123 | 1,138 |
| Estonia | 258 | 232 | 338 |
| Other countries | 44 | 41 | 41 |
| Men | 815 | 989 | 1034 |
| Women | 409 | 407 | 483 |
| Under 30 years | 902 | 843 | 976 |
| 30-39 years | 207 | 415 | 357 |
| 40-49 years | 75 | 98 | 138 |
| Over 49 years | 40 | 40 | 46 |
| Terminated employments | 1,271 | 1,433 | 1,418 |
| Finland | 950 | 966 | 1,095 |
| Estonia | 201 | 400 | 310 |
| Other countries | 120 | 67 | 13 |
| Men | 807 | 863 | 883 |
| Women | 464 | 570 | 535 |
| Under 30 years | 748 | 832 | 851 |
| 30-39 years | 276 | 316 | 256 |
| 40-49 years | 125 | 164 | 165 |
| Over 49 years | 122 | 121 | 146 |
1) Elisa has reported the indicator its own way: Empolyee turnover is missing.
Based on collective agreements our occupational health, insurance, parental leave or pension benefits are not dependent on the duration or part-time nature of employment.
403-1 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs
| 2016 | 2017 | 2018 |
|---|---|---|
| 97% | 98% | 98% |
and total number of work-related fatalities, by region and by gender (1
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Injury rate (IR) | |||
| Finland | |||
| Commuting injuries | n/a | 8.00 | 6.2 |
| Working time injuries | n/a | 3.92 | 4.5 |
| Estonia | |||
| Commuting injuries | n/a | 0.00 | 0.0 |
| Working time injuries | n/a | 0.00 | 0.0 |
| Other countries | |||
| Commuting injuries | n/a | 6.28 | 0.0 |
| Working time injuries | n/a | 0.00 | 5.7 |
| Lost day rate (LDR) | |||
| Finland | n/a | 98.1 | 39.6 |
| Estonia | n/a | 0.0 | 0.0 |
| Other Countries | n/a | 0.0 | 0.0 |
| Occupational diseases rate (ODR) | |||
| Finland | n/a | 0.2 | 0.0 |
| Estonia | n/a | 0.0 | 0.0 |
| Other Countries | n/a | 0.0 | 0.0 |
| Absentee rate (AR) | |||
| Finland | 3.6% | 3.7% | 2.6% |
| Estonia | n/a | 7.8% | 6.2% |
| Other Countries | n/a | 0.5% | 0.1% |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Commuting injuries | 48 | 40 | |
| Finland | n/a | 47 | 40 |
| Estonia | n/a | 0 | 0 |
| Other Countries | n/a | 1 | 0 |
| Work time injuries | 23 | 30 | |
| Finland | n/a | 23 | 29 |
| Estonia | n/a | 0 | 0 |
| Other Countries | n/a | 0 | 1 |
| Occupational diseases | 1 | 0 | |
| Finland | n/a | 1 | 0 |
| Estonia | n/a | 0 | 0 |
| Other Countries | n/a | 0 | 0 |
| Lost day incidents | 72 | 34 | |
| Finland | n/a | 72 | 34 |
| Estonia | n/a | 0 | 0 |
| Other Countries | n/a | 0 | 0 |
| Absentees | 50,416 | 42,193 | |
| Finland | n/a | 32,055 | 26,435 |
| Estonia | n/a | 18,258 | 15,743 |
| Other Countries | n/a | 103 | 15 |
| Work relate fatalities | 0 | 0 | |
| Finland | n/a | 0 | 0 |
| Estonia | n/a | 0 | 0 |
| Other Countries | n/a | 0 | 0 |
1) Reporting covers 96% of the Group's personnel. We will improve our reporting. For more information, see Description Of The Report chapter.
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Gender | |||
| Men | 13 | 9 | 19 |
| Women | 16 | 9 | 20 |
| Employee category | |||
| Senior management | 15 | 9 | 35 |
| Middle management | 20 | 15 | 17 |
| Other employees | 13 | 7 | 19 |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Percentage of employees receiving regular performance and career development reviews | 78% | 76% | 70% |
| Men | 2,488 | 2,282 | 2,508 |
| Women | 1,223 | 1,304 | 1,340 |
| Senior management | 169 | 124 | 121 |
| Middle management | 757 | 754 | 802 |
| Other employees | 2,785 | 2,708 | 2,925 |
1) Reporting covers 91% of the Group's personnel. We will improve our reporting. For more information, see Description Of The Report- chapter.
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Elisa's Executive Board | 9 | 10 | 10 |
| Women | 2 | 2 | 2 |
| Under 30 years | 0 | 0 | 0 |
| 30-39 years | 0 | 0 | 0 |
| 40-49 years | 3 | 3 | 3 |
| Over 49 years | 6 | 7 | 7 |
| Board of Directors | 7 | 7 | 7 |
| Women | 3 | 3 | 3 |
| Under 30 years | 0 | 0 | 0 |
| 30-39 years | 0 | 0 | 0 |
| 40-49 years | 2 | 1 | 1 |
| Over 49 years | 5 | 6 | 6 |
| Management teams of business units | 79 | 75 | 84 |
| Women | 32 | 27 | 33 |
| Under 30 years | 0 | 0 | 0 |
| 30-39 years | 8 | 11 | 10 |
| 40-49 years | 42 | 37 | 46 |
| Over 49 years | 29 | 27 | 28 |
39
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Managerial board for corporate responsibility | 10 | 9 | 9 |
| Women | 4 | 4 | 4 |
| Under 30 years | 0 | 0 | 0 |
| 30-39 years | 1 | 1 | 2 |
| 40-49 years | 6 | 5 | 4 |
| Over 49 years | 3 | 3 | 3 |
| Breakdown of personnel by gender | |||
| Men | 66.0% | 65.3% | 66.5% |
| Women | 34.0% | 34.7% | 33.5% |
| Breakdown of personnel by age | |||
| Under 30 years | 25.9% | 26.3% | 26.0% |
| 30-39 years | 31.5% | 31.3% | 33.3% |
| 40-49 years | 25.0% | 24.8% | 23.9% |
| Over 49 years | 17.5% | 17.6% | 16.8% |
No incidents in 2018
All security personnel working permanently in Elisa (100 %) have conducted statutory training according to Finnish law and in addition they have been trained to Elisa Code of Conduct.
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Code of conduct - training (share of employees who have conducted training) | 79% | 72% | 65% |
No incidents in 2018.
We have not made any political contributions in 2018.
The precautionary principle has been taken into account in accordance with statutory requirements
Direct energy consumption by primary energy source
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Usage of diesel and petrol | 2,261 | 2,174 | 1,830 |
| Usage of oil | 3,435 | 3,596 | 4,264 |
| Total | 5,696 | 5,770 | 6,094 |
| Purchased renewal energy | 0 | 0 | 0 |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Electricity | 964,550 | 963,845 | 1,056,010 |
| Heating | 59,671 | 53,331 | 48,201 |
| Cooling | 18,021 | 23,977 | 41,233 |
| Total | 1,042,242 | 1,041,153 | 1,145,444 |
| Carbon free electricity(1 | 880,920 | 901,620 | 975,600 |
| 1) 59% nuclear power, 41% water power |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Mobile networks electricity consumption of transferred Gigabyte (kWh) | 0.5 | 0.4 | 0.3 |
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Ideal work office spaces (electricity and heating) | 52,286 | 56,830 | 71,176 |
| Energy efficiency in server environments (electricity) | 37,955 | 47,421 | 52,588 |
| Reuse of server generated heat (electricity) | 17,950 | 18,669 | 41,234 |
| Energy efficiency in mobile networks (electricity) | 24,630 | 23,666 | 29,946 |
| Total | 132,821 | 146,585 | 183,590 |
1) Additional information, calculation principles and baselines for Elisa's environmental responsibility report are available at: http://corporate.elisa.com/responsibility/environmental-responsibility
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Transfer to virtual servers (electricity) | 73,975 | 75,799 | 77,277 |
1) Additional information, calculation principles and baselines for Elisa's environmental responsibility report are available at: http://corporate.elisa.com/responsibility/environmental-responsibility
| 305-1 and 305-2 Total direct and indirect greenhouse gas emissions by weight (tCO )(1 2 |
|||
|---|---|---|---|
| 2016 | 2017 | 2018 | |
| Scope 1, Direct greenhouse gas emissions | 391 | 409 | 433 |
| Scope 2, Indirect greenhouse gas emissions, market based | 12,751 | 4,402 | 5,111 |
| Scope 2, Indirect greenhouse gas emissions, location based | 79,271 | 71,225 | 68,957 |
1) Additional information for Elisa's environmental responsibility report are available at: http://corporate.elisa.com/responsibility/environmental-responsibility
42
| Sources of Scope 3 emissions | 2016 | 2017 | 2018 | Description: | Figure includes: |
|---|---|---|---|---|---|
| Purchased good and services | 85,195 | 73,431 | 72,991 | Relevant, calculated |
Elisa Finland and Elisa Estonia , paper- and e-bills and office paper; Elisa Oyj: purchased products to sell and services |
| Capital goods | 17,289 | 35,631 | 30,797 | Relevant, calculated |
Elisa Finland, Purchased basestations and other network equipments |
| Fuel-and energy- related activities | 5,787,3 | 3,146 | 3,134 | Relevant, calculated |
Elisa Finland and Elisa Estonia: Emissions of fuel production of electricity used |
| Upstream transportation and distribution | 1,456 | 1,022 | 680 | Not relevant, calculated |
Transportation of goods to Elisa and to our customers |
| Waste generated in operations | 868 | 683 | 720 | Not relevant, calculated |
Elisa Finland waste, Elisa sewage water |
| Business travel | 1,998 | 1,201 | 1,194 | Relevant, calculated |
Elisa |
| Employee commuting | 2,541 | 3,186 | 4,523 | Relevant, calculated |
Elisa |
| Upstream leased assets, | 0 | 0 | 0 | Not relevant, explanation provided |
Consumption in rented sites is calculated in Scope 2. |
| Downstream transportation and distribution | 0 | 0 | 0 | Not relevant, explanation provided |
Not relevant, Elisa is not selling transportation services |
| Processing of sold product | 0 | 0 | 0 | Not relevant, explanation provided |
Not relevant, No processing of products |
| Use of sold product | 13,935 | 8,211 | 7,886 | Relevant calculated |
Energy consuption of customer´s devices. Electricity consuption of services is reported in Scope 2. |
| End-of-life treatment of sold products | 624 | 305 | 306 | Relevant calculated |
End of life treatment of Elisa´s sold products |
| Downstream leased assets | 0 | 0 | 0 | Not relevant, explanation provided |
Consumption of leased operators is calculated in Scope 2. We purchase renewal electricity. |
| Franchises | 0 | 0 | 0 | Not relevant, explanation provided |
Not relevant, No franchies |
| Investment | 0 | 0 | 0 | Not relevant, explanation provided |
Not relevant, No significant credit management |
1) Additional information for Elisa's environmental responsibility report are available at: http://corporate.elisa.com/ responsibility/environmental-responsibility
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Scope 1 and 2 emissions per revenue (KgCO2 /EUR) |
0.008 | 0.003 | 0.003 |
| 305-5 Reduction of greenhouse gas emissions(1 (tCO ) |
|||
| 2 | 2016 | 2017 | 2018 |
| Emission reductions in service production | 118,560 | 121,067 | 115,070 |
| Ideal work solutions, scope 3 | 5,101 | 5,606 | 6,338 |
| Computer rooms, scope 2 | 5,197 | 6,336 | 374 |
| Reuse of products, scope 3 | 1,939 | 1,210 | 295 |
| Electronic invoicing, scope 3 | 937 | 1,121 | 1,208 |
| Emission savings in mobile network, scope 2 | 2,756 | 2,268 | 2,670 |
| Usage of carbon free electricity, scope 2 | 102,630 | 104,526 | 104,185 |
1) Additional information, calculation principles and baselines for Elisa's environmental responsibility report are available at: http://corporate.elisa.com/responsibility/environmental-responsibility
2) Purchased carbon free electricity
59% nuclear power, 41% water power
| 2016 | 2017 | 2018 | |
|---|---|---|---|
| Total waste amount(2 | 1,339 | 1,017 | 1,070.0 |
| Hazardous waste(2 | 257 | 177 | 208.4 |
| WEEE (Waste Electrical and Electronic Equipment)(2 | 397 | 302 | 338.8 |
| Recycling % | 93% | 99% | 94% |
| Recovery % | 7.2% | 0.7% | 1.9% |
| Landfill % | 0.2% | 0.0% | 0.7% |
| 1 )Elisa has used its own waste breakdown | |||
| 2) Amounts not available for Elisa Estonia |
306-3 Total number and volume of significant spills
No spills in 2018.
No non-compliances in 2018.
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