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Sustainability report

Reporting period:

Yritys AB

CONTENTS

You can navigate the report by clicking on different sections of the table of contents

OVERVIEW

GENERAL INFORMATION


OPERATING PRINCIPLES, GOALS AND MEASURES

• Code of conduct - Ethical guidelines
   • Target: Committing partners to ethical guidelines
• Personnel policy
   • Target: Treating people equally
   • Target: Well-being and coping staff
• Environmental policy
   • Target: Mitigation of climate change
   • Target: Prevention of environmental pollution
   • Target: Promotion of circular economy

SUSTAINABILITY COMMUNICATION


ENVIRONMENTAL ISSUES

Overview

In the 2023 financial year, we invested especially in reducing and recycling waste and increasing well-being at work. The relative reduction of waste was successful, but the total amount of waste increased. We calculated our carbon footprint for the second time and saw concretely that our emissions have decreased. We continue to work to further reduce our emissions.

The purpose of this report is to present the structure of the report. The contents or length of the report do not perfectly correspond to a report of a real company.


General information

Description of the organization’s operations
Demo Company Oy is a family business founded in 1970 that manufactures spare parts for agricultural machinery.

Organization description
The management of Demo Company Oy consists of the board, the management team and the CEO. These actors are responsible for e.g. about the company's strategic decisions and guidance.
The company has five departments/teams: production department, sales and marketing department, finance department, HR department and product development department. Logistics and storage have been outsourced to another operator.

Scope and coverage of other management systems
Demo Company Oy has ISO 9001, ISO 14001 and ISO 45001 certificates, which cover all of the company's operations in both Finland and Estonia.

Stakeholders and their needs and expectations
We have identified suppliers and customers as our most important stakeholders. Transparency is important for all our stakeholders, both in terms of responsibility and economic development. Our suppliers hope for clear criteria on what responsibility actions are required of them. Our customers have varying requirements in terms of responsibility, and we strive to meet all requirements.

Scope and coverage of the sustainability program
Our sustainability program is applied in all our operations and it covers our entire operations in both Finland and Estonia.

Operating environment
We are located in Kajaani, but our operations cover the whole of Finland and partly also Estonia. Our operating environment is diverse and demanding. Our success is based on our ability to adapt to market changes, meet regulatory requirements and utilize technological developments. At the same time, the strong culture and values ​​of the family business support long-term and responsible business operations. In our operating environment, the tightening of sustainability requirements both in terms of legislation and customers, as well as growing competition in a generally challenging economic situation, are emphasized.

Demo Company Oy has a strong market position, especially in the domestic market. Competition in the industry is fierce, as several domestic and international companies operate on the market. The most important competitors are other family businesses, large multinational companies and smaller specialized manufacturers. Our customers are mostly agricultural companies, dealers and service shops of agricultural machinery and large farms.
Our operations are affected by economic factors such as raw material prices, energy costs and the general economic situation. Cycles in the agricultural sector and agricultural subsidies directly affect the demand for spare parts. We strive to prepare for economic fluctuations by maintaining a flexible cost structure and long-term supplier relationships.


Mission

Our mission is to produce high-quality spare parts sustainably and to promote the efficient operation of agriculture.

Vision

Our vision is to be the most responsible and transparent company in our industry by 2025.

Values

Integrity
Openness
Transparency

Material impacts

This section describes the impacts of our operations that result in material benefit or harm to the environment or society, as well as the external impacts that cause us material financial risks or opportunities.

Materiality analysis

We carried out the materiality assessment by first getting to know the most common environmental and social impacts in our industry and then comparing them to our own perceptions of our impacts. We used table AR 16 of the ESRS 1 standard to identify the impacts. We selected the most relevant impacts based on e.g. how useful/serious or far-reaching we estimated the impacts were. Next year, we will also carry out a stakeholder survey on the material impacts.
Heavy generation of waste
An impact resulting from our operations
Materiality:
Very large
Description 
Our operations generate a lot of waste, and it is not always possible to recycle it. Utilization of materials could be more efficient.

Features
Nature: Negative   Impacts: Directly     Existence: Actual   When: At the moment  Scale: Moderate  Scope: Small   Remediability: Relatively difficult

Policies promoting the impact:
#Environmental policy

Increasing sustainability reporting requirements
An external impact affecting our financials
Materiality:
Large
Description 
We have several companies as customers, which are starting to be affected by various sustainability reporting directives. Although the directives do not directly affect us, our customers must also collect sustainability information from us, which increases the pressure to invest in data collection and reporting. Responding to pressure takes resources from us. On the other hand, investing in sustainability increases our competitiveness.

Features
Appears: At the moment  
Nature: Positive  
Financial impact: Moderate  

Policies promoting the impact:
#Code of conduct - Ethical guidelines

The challenges of combining work and free time
An impact resulting from our operations
Materiality:
Large
Description 
We are not always able to offer flexibility in working or modify the job description according to the different life situations of the employees. We have identified this as our development target.

Features
Nature: Negative   Impacts: Directly     Existence: Actual   When: At the moment  Scale: Moderate  Scope: Very small   Remediability: Relatively difficult

Policies promoting the impact:

Reducing inequality
An impact resulting from our operations
Materiality:
Large
Description 
We also hire hard-to-employ people for seasonal work, which improves equality of employment and reduces inequality.

Features
Nature: Positive   Impacts: Directly     Existence: Actual   When: At the moment  Scale: Moderate  Scope: Very small  

Policies promoting the impact:
#Code of conduct - Ethical guidelines

Increasing frequency of extreme weather events
An external impact affecting our financials
Materiality:
Moderate
Description 
Extreme weather phenomena such as severe frosts, periods of heat, heavy rains and drought cause us costs when the reliability of supply decreases.

Features
Appears: In future  
Financial impact: Large  
Type: Risk  When: In 5+ years   Probability: Moderate  

Policies promoting the impact:
#Environmental policy

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Policies

Code of conduct - Ethical guidelines

Responsible for implementing: Toimitusjohtaja

Impacts to promote:

INTRODUCTION
The ethical guidelines define our company's operating principles together with our values. They are the basis for all our activities. They guide us in how we deal with customers, colleagues, business partners and other stakeholders.
Our ethical culture is developed and created together by all employees of our company.
We expect all of us to follow the principles given in the ethical guidelines.

SCOPE OF APPLICATION
These ethical guidelines apply to the entire operation of our company. We expect that our stakeholders are aware of our sustainability goals and guidelines and follow them.

ETHICAL PRINCIPLES

Legislation and policies
We are aware of the legislation regarding products, services and business. We comply with current legislation.
Our policies define in more detail how we operate, for example, in procurement and personnel matters. Our personnel and stakeholders are aware of our current policies.

Confidentiality
We handle confidential information that comes to our attention carefully and in accordance with the instructions. We use confidential information only for the purpose.

Professional operation
We demonstrate professionalism and good behavior in all our activities. We know how to resolve conflict situations constructively and with respect for others.

Safety and health
Safety issues are priority number 1. Everyone has the right to do their job safely. Safety covers both physical and mental safety. Each employee is responsible for developing the safety of their own work environment.

Environmental sustainability
We respect the environment and take care of it. We want to develop our operations at all levels in such a way that our negative environmental impact is as small as possible.
We update our environmental goals and programs annually and communicate them to our personnel and stakeholders.

A respectful and harassment-free work environment
We treat fellow human beings with respect. We accept different people regardless of their ethnicity, gender, age, nationality, sexuality, disability or religious background.
Every employee must treat his colleagues with respect and fairness.
We do not tolerate any physical, verbal, sexual or psychological harassment or bullying.

Conflicts of interest
In our operations, we make decisions in such a way that potential conflicts of interest do not guide our decisions. In operations, the company's interest comes before one's own interest.
Such situations can include ownership or family relationships, for example in acquisitions and staff recruitment.
When making decisions, we clearly bring potential conflicts of interest to the attention of our supervisor before decisions are made.

Preventing bribery and corruption
We do not allow bribery or corruption, and we do not give or accept gifts or favors that could influence decision-making.
We are responsible for not participating in decision-making in situations where pursuing our own interests is possible. For anti-bribery and corruption activities, we have a Whistleblowing reporting channel, where anyone can report anonymously if illegal activity by our company or a partner is suspected or another problem is noticed.

Information on supply chain sustainability
We want to be aware of the ethical issues of our partners and stakeholders. We regularly conduct follow-up surveys that our partners must answer. This way we are aware and able to develop our ethical activities together.

INTERNATIONAL AND NATIONAL AGREEMENTS
As part of our ethical guidelines, we are committed to the following international agreements:
- UN: Universal Declaration of Human Rights
- UN: International Convention on Economic, Social and Cultural Rights
- ILO: Declaration on Fundamental Principles and Rights at Work

SOFTWARE AND LIABILITY MONITORING
We use the following software in our sustainability program and in monitoring the sustainability of our partners:
ShowYourSustainability.com™
- Sustainability program planning, monitoring, data collection and reporting
Ceriffi Check®
- Supplier feedback, customer feedback, occupational safety, involvement of personnel and partners, monitoring of deviations
- Whistleblowing reporting channel

RESPONSIBLE ENTITIES AND CHANGES
The owner of this policy is the CEO of Demo Company Oy, and the management team of Demo Company Oy is responsible for updating it and making changes to it.

Target:

Committing partners to ethical guidelines

Significance :
Large
Influenceability :
Moderate
Impact materialitySlight :  : 

Actions

We go through our ethical guidelines with our partners and ask them to follow them. If it is not possible to commit to the ethical guidelines, we will consider if we can support in this somehow. If necessary, we will consider ending the partnership.


Risks and possibilities

Risk: The most important partners cannot be committed Significance: Large Probability: Slight
Actions:
We start the process of committing to ethical guidelines well in advance and give time to change practices. At the same time, we are surveying alternative partners.

Metrics

Share of partners committed to our ethical guidelines


Measurement frequency: Not defined


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Personnel policy

Responsible for implementing: Henkilöstöpäällikkö

SCOPE
The personnel policy is applied in all our operations, and the personnel must follow the principles described in the policy in their operations. The personnel policy is based on our values, ethical operating principles and equality plan.

OPERATING PRINCIPLES
Trust and responsibility
Our personnel policy is based on mutual trust and responsibility.
We build trust by investing in good task orientation and involving people in different ways.

Responsibility and ethical behavior
Personnel are required to act responsibly and follow ethical guidelines. Ethical guidelines are always reviewed during orientation.

Increasing competence
Personnel are encouraged to increase their skills. Personnel have the opportunity to participate in internal and external trainings.

Development of work well-being and working atmosphere
Responsibility for well-being at work lies with both the employer and the employees. The employer creates the framework and operating conditions to support occupational well-being; for example, we make sure that the workload of the employees does not become too great. Employees are responsible for actively maintaining their own well-being at work and bringing up any grievances. Our discussion atmosphere is open, and we encourage our personnel to give development ideas. We constantly monitor the working atmosphere and its development.

SOFTWARE AND STAFF MONITORING
We use the following software in our responsibility program and in monitoring the responsibility of our partners:
- ShowYourSustainability.com™ : sustainability program design, monitoring, data collection and reporting
- Ceriffi Check® : quality measurement, monitoring and certification

RESPONSIBLE ENTITIES AND CHANGES
The owner of this policy is the CEO of Demo Company Oy, and the personnel manager is responsible for updating it and making changes to it.

Target:

Treating people equally

Significance :
Large
Influenceability :
Large
Impact materialityModerate :  : 

Actions

We train our personnel in issues of equality. We follow the experiences of equality in the workplace from the annual personnel survey.


Risks and possibilities

Opportunity: Well-being and productive employees Significance: Very large Probability: Moderate
Actions:
We monitor employee satisfaction with equality issues.
Target:

Well-being and coping staff

Significance :
Large
Influenceability :
Large
Impact materialityModerate :  : 

Actions

We actively monitor and investigate the staff's coping and on-the-job learning. A personnel survey is conducted weekly and everyone has the opportunity to express their opinion.


Risks and possibilities

Opportunity: Personnel recommending the workplace Significance: Very large Probability: Large
Actions:
We monitor staff satisfaction and well-being with regular surveys. We use the positive experiences of employees in the recruitment of new employees.
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Environmental policy

Responsible for implementing: Vastuullisuusjohtaja

Impacts to promote:

INTRODUCTION
Environmental sustainability is an important part of our corporate sustainability. Assessment of environmental aspects and reduction of negative environmental impacts are strategically important focus areas.
We respect the environment and take care of it. We want to develop our operations at all levels in such a way that our environmental impact is as small as possible.

SCOPE
This policy applies to the entire operation of our company and, where applicable, also to our partners and stakeholders. We expect partners and stakeholders to be aware of our guidelines and follow them.

COMPLIANCE AND ENVIRONMENTAL WORK
We are aware of environmental legislation regarding products, services and business. We comply with current legislation.
Our environmental management is based on the environmental system (ISO 14001:2015), where environmental aspects and environmental risks and opportunities have been identified.
We update our environmental goals annually and communicate them to our personnel and stakeholders.
The applicability and effectiveness of the environmental management system is assessed annually with internal and external audits. In accordance with the plans, we also carry out audits of our own suppliers, in which we take environmental aspects into account.

SUPPLIERS AND THEIR OBLIGATIONS
In our purchases, we take into account the life-cycle effects and costs of products and services, as well as aspects that promote energy efficiency. We want our procurement partners to invest in environmental sustainability in the development of their own operations.
We collect annual follow-up data on sustainability from our partners. We oblige our partners to respond to our sustainability surveys.

KEY ENVIRONMENTAL PRINCIPLES
- We comply with environmental legislation and operate in accordance with the environmental conditions set for our operations.
- We cooperate with the authorities and stakeholders to ensure that our environmental work meets the expectations and requirements set for our operations.
- We reduce environmental and climate impacts in procurement, service and logistics.
- We promote the circular economy in our entire value chain.
- We take environmental aspects into account in investments and acquisitions.
- We raise the environmental awareness and competence of all our personnel with effective internal trainings.
- We commit to the principles of continuous improvement.
- We respect the environment and take care of it in an economically sustainable way.
- We are constantly developing our operations so that the carbon footprint of our operations is as small as possible.

RESPONSIBILITIES AND ROLES
The company's management sets the environmental policy and environmental goals.
The operative management is responsible for the planning and resourcing of operations together with the management team.
Each employee is responsible for following the instructions and regulations in their own work. We value the development ideas of our employees to improve environmental protection.

REPORTING ENVIRONMENTAL VIOLATIONS AND DAMAGE
If an employee notices that our company or a partner is acting contrary to our policy, instructions or legal requirements, it is his right and duty to report it directly to his supervisor or to make a report anonymously in the Whistleblowing reporting channel.
A violation can be reported to the authorities if there is reason to suspect that an employee's or partner's actions are in violation of the Environmental Act.

SOFTWARE AND ENVIRONMENTAL SUSTAINABILITY MONITORING
We use the following software in our sustainability program and in monitoring the sustainability of our partners:
ShowYourSustainability.com™:
- Sustainability program planning, monitoring, data collection and reporting
Ceriffi Check®:
- Supplier feedback, customer feedback, occupational safety, involvement of personnel and partners, monitoring of deviations
- Whistleblowing reporting channel

RESPONSIBLE ENTITIES AND CHANGES
The owner of this policy is the CEO of Demo Company Oy, and the sustainability manager is responsible for updating it and making changes to it.

Target:

Mitigation of climate change

Significance :
Moderate
Influenceability :
Very large
Impact materialityModerate :  : 

Actions

We strive to reduce our carbon footprint. We increase the use of renewable energy and use raw materials with lower emissions whenever possible.


Risks and possibilities

Risk: Increase in energy costs Significance: Large Probability: Very large
Actions:
We regularly put out energy contracts for tender. If necessary, we update the equipment to more energy-efficient ones. We are also investigating the possibility of our own energy production.
Risk: Increase in raw material costs Significance: Moderate Probability: Large
Actions:
We efficiate the use of raw materials and, if necessary, we switch to manufacturing some products only when ordered.

Metrics

Carbon footprint
The calculation includes scope 1, scope 2 and partially scope 3 emissions.

Base value: 10 tCO2eq (2023) The base value is the value to which the development of the measure is compared.
Measurement frequency: Annually Aim 2023: 50 tCO2eq


The usage rate of renewable energy


Base value: 1 % (2023) The base value is the value to which the development of the measure is compared.
Measurement frequency: Monthly Aim 2023: 2 %


Target:

Prevention of environmental pollution

Significance :
Moderate
Influenceability :
Large
Impact materialitySlight :  : 

Actions

We make sure that our activities do not result in soil or water pollution.


Risks and possibilities

Opportunity: Reputation as an environmentally responsible operator Significance: Large Probability: Moderate
Actions:
We communicate our actions done for the good of the environment and to avoid environmental deviations.
Target:

Promotion of circular economy

Significance :
Large
Influenceability :
Large
Impact materialityModerate :  : 

Actions

We use recycled materials as much as possible. We have an action plan for waste recycling. If something breaks or malfunctions, we first investigate the repair possibilities. If we acquire something new, we investigate whether it is available used or, for example, its materials comply with the principles of the circular economy.


Risks and possibilities

Opportunity: Reduced waste management costs Significance: Moderate Probability: Moderate
Actions:
We reduce especially the generation of mixed waste. We make recycling more efficient.

Metrics

Recycling rate


Base value: 37 % (2023) The base value is the value to which the development of the measure is compared.
Measurement frequency: Annually Aim 2027: 50 %


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Yritys AB

Sustainability communication

Responsible for implementing: Vastuullisuusjohtaja

INTRODUCTION
Transparent operations are part of our values, and the values ​​that guide our operations are also realized in our communication.

IDENTIFYING STAKEHOLDERS AND THEIR NEEDS
We have identified the most important stakeholder groups in terms of communication and the actors belonging to different stakeholder groups and their needs. We have designed our communication to suit the needs of different stakeholders. We research whether our communication is relevant and receive feedback, on the basis of which we develop our communication.

WHAT WE COMMUNICATE ABOUT
We communicate to our internal and external stakeholders about current issues, such as operational requirements, instructions and changes, as well as the development trends of sustainability and the results of our sustainability work. In addition, we encourage our stakeholders to take sustainable actions by using various means of communication.

INTERNAL SUSTAINABILITY COMMUNICATION - when, how and to whom we communicate
We invest in high-quality orientation for new employees. The supervisor and co-workers participate in the orientation. At the workstations, there are instruction leaflets on the work task to be performed at the workstation. The supervisor holds a weekly meeting where current issues of the week are reviewed. We also have team meetings as needed.

EXTERNAL SUSTAINABILITY COMMUNICATION - when, how and to whom we communicate
In procurement situations, we communicate our operating methods and values ​​to new partners. Customer meetings are organized as needed and current issues are discussed in them. We send our stakeholders a newsletter four times a year. Current information can be found in real time on our website and social media channels.

RESPONSIBLE ENTITIES AND CHANGES
Both internal and external sustainability communication and related changes are the responsibility of the CEO, the management team and the sustainability manager.


Greenhouse gas emissions

Scope 1 emissions refer to the direct emissions resulting from an organization's operations.

Scope 2 emissions refer to emissions caused by the energy purchased or acquired by the organization. Scope 2 emissions can be calculated in two ways: market-based and location-based. The market-based calculation method reveals the actual emissions from the energy procured by the organization, using emission factors provided by the energy suppliers. The location-based calculation method reflects the average emissions in the geographical areas where the energy is consumed, using general, regional, or national emission factors. Therefore, the emission figures obtained from market-based and location-based calculations usually differ from each other. When totaling scope 2 emissions, the emission figures obtained from the market-based calculation method are primarily used. If the market-based method cannot be applied, figures from the location-based method are used.

Scope 3 emissions refer to the organization’s indirect emissions in its upstream and downstream value chain.
Most of our greenhouse gas emissions are caused by scope 3 emissions, i.e. indirect emissions and especially raw materials.

Calculation methodology



In the calculation, SYKE's excel-based carbon footprint calculation tool Y-hiilari was used. Y-hiilari is a commonly used tool, and it takes into account the most important emission sources.

Emissions

Total greenhouse gas emissions

29.5 tCO2eq

Scope 1 3 tCO2eq
Own vehicles and machinery0.5 tCO2eq
Fuels used in own buildings2.5 tCO2eq

Scope 2, market-based | location-based 1.5 | 1.7 tCO2eq
Purchased/acquired electricity1.50 tCO2eq | 1.2 tCO2eq
Purchased/acquired steam0.00 tCO2eq | 0.00 tCO2eq
Purchased/acquired heating- | 0.5 tCO2eq
Purchased/acquired cooling0.00 tCO2eq | 0.00 tCO2eq

Scope 3 25  tCO2eq
Purchased goods and services20.00 t CO2ekv
Capital goods0.1 t CO2ekv
Fuel and energy related activities 1.00 t CO2ekv
Upstream transportation and distribution0.5 t CO2ekv
Waste generated in operations2.00 t CO2ekv
Business travel0.5 t CO2ekv
Employee commuting0.1 t CO2ekv
Upstream leased assets0.1 t CO2ekv
Downstream transportation and distribution0.1 t CO2ekv
Processing of sold products0.1 t CO2ekv
Use of sold products0.1 t CO2ekv
End-of-life treatment of sold products0.1 t CO2ekv
Downstream leased assets0.1 t CO2ekv
Franchises0.1 t CO2ekv
Investments0.1 t CO2ekv


Development of emissions



Chart type

Energy


Energy consumption
Total energy consumption 200.00 MWh
From fossil sources 50.00 MWh
Fuel from coal and coal products 10.00 MWh
Fuel from crude oil and petroleum products 0.00 MWh
Fuel from natural gas 10.00 MWh
Fuel from other fossil sources 0.00 MWh
Purchased or acquired electricity, heat, steam, and cooling from fossil sources 30.00 MWh
From nuclear sources 100.00 MWh
Fuel from renewable sources 50.00 MWh
Fuel from renewable sources (including biomass, renewable hydrogen) 10.00 MWh
Purchased or acquired electricity, heat, steam, and cooling from renewable sources 40.00 MWh
Self-generated non-fuel renewable energy 0.00 MWh

Energy production
Non-renewable energy production 0.00 MWh
Renewable energy production 0.00 MWh

Waste

The total amount of waste from own operations 40000 kg
The total amount of hazardous waste generated 2000 kg
The total amount of radioactive waste generated 0 kg
The total amount of non-recycled waste 30000 kg
The percentage of non-recycled waste

Waste directed to disposal 5000 kg
Breakdown 1: Non-hazardous waste and hazardous waste
Non-hazardous waste 3000 kg
Hazardous waste 2000 kg
Breakdown 2: Waste treatment types
Incineration 0 kg
Landfill 500 kg
Other disposal operations 4500 kg
Waste diverted from disposal 35000 kg
Breakdown 1: Non-hazardous waste and hazardous waste
Non-hazardous waste 35000 kg
Hazardous waste 0 kg
Breakdown 2: Recovery operation types
Recycling 10000 kg
Preparation for reuse 2000 kg
Other recovery operations 23000 kg
Background information on the composition of the waste
The waste was mostly energy waste (e.g. oily rags, wet cardboard and other material, mixed material unsuitable for recycling). The most relevant wastes for our operations are various metal wastes, which we were able to recycle completely.
Background information on the data calculation methodologies used to determine and classify products designed along circular principles
Regarding waste handling and measurement, it has been assumed that the information received from the waste company about the amount of waste is correct. We collect information about our waste from the waste company we use and it is based on direct measurements. If we refer to waste processed according to the principles of the circular economy, we mean waste going to recycling and preparation for reuse (12,000 kg in total).
General information on the waste
Generating a lot of waste is one of our most significant negative environmental impacts, and we are constantly working to reduce the generation of waste and improve its recycling rate.




Social topics

Own workforce


Employees
GenderEmployeesPermanent
employees
Temporary
employees
Non-guaranteed
hours employees
Full-time
employees
Part-time
employees
Male292184224
Female171071106
Other110010
Not disclosed000000
Total47321553210

Employees that have left the company 2
Employee turnover 4 %
Background information on employee turnover
In the summer, we have temporary and part-time employees.
Background information on the differences in the headcount information given in this report and the financial statement information
The financial statements describe the situation at the end of the accounting period. The sustainability report tells how many employees there were in total during the accounting period.
Non-employee workers
Non-employment employee 3
Self-employed people: 2
People provided by undertakings engaged in employment activities: 0
Trainees: 1
Other types of employees relevant to the undertaking: 0
Background information on non-employees:
We have two people who work in administration on a permanent basis as entrepreneurs. In addition, we had one temporary intern.