Our ESG work is based on values, commonly agreed operating principles, a positive employer brand and trustworthy and transparent reporting and governance. Our main ESG themes are:
ESG management at Ilkka
ESG is part of our Group’s daily work and management.
Ilkka’s operations, governance and decision-making are based on
- the Group’s common business principles
- the Finnish Limited Liability Companies Act
- regulations governing listed companies
- the Articles of Association
- Nasdaq Helsingin rules and guidelines
- Corporate Governance code of the Finnish Securities Market Association
- UN Sustainable Development Goals and Human Rights Principles
- principles of the International Labour Organization ILO.
The CEO is responsible for overseeing ESG issues with the support of the Group’s Executive Management Team. Each business segment is responsible for ESG measures as part of operational planning.
As Ilkka’s number of personnel has exceeded 500 employees in 2022, we are also obligated to report non-financial information. That is why in 2022, we carried out stakeholder and relevance analyses of areas subject to reporting and began drafting our ESG management framework.
During 2023, we will set up an ESG working group responsible for planning, developing and monitoring ESG targets. The ESG working group is chaired by the Group’s CFO, and members of the group represent various business segments and personnel groups.
The vision of our ESG strategy will be clarified as a result of the activities of the ESG working group. Our goal is to bring ESG and sustainability more strongly into our day-to-day operations in all areas. We discuss sustainable practices with our stakeholders and take ESG and sustainability into account in our choices and purchases. We want to be an active promoter and developer of ESG and sustainability in the value chain, which also helps our customers succeed. We increase our employees’ awareness of sustainability and the ESG themes we have chosen.
Our employees participate in the Group’s governance and development
A significant number of our personnel are involved in the innovation, development and planning of the Group and its companies and operations. This way, the expert views of our employees contribute to the promotion of a wide range of issues within the Group.
Ilkka has a Supervisory Board that is elected by the Annual General Meeting for a term of four years at a time. The Supervisory Board consists of eighteen members, including two employee representatives from fully owned Group companies. Employee representatives play an important role in the Group’s decision-making.
The duties of the Supervisory Board include:
- overseeing the company’s executive team and the management of the company’s businesses
- appoint and dismiss members of the Board of Directors, and
- decide on their remuneration
- appoint the members of the Remuneration and Nomination Committee.
Subsidiaries have their own boards of directors and a management team led by the CEO or CBO. The boards of directors of subsidiaries are responsible for:
- the appropriate organisation of the company’s governance and operations
- planning based on the Group strategy, and
- implementation of set targets.
The companies’ key employees and persons of authority participate in the work of management teams.
The core purpose of the Group EMT is to support the CEO in guiding and developing the Group’s operations so that the strategic goals presented by the EMT and approved by the Board of Directors are achieved. The Group EMT consists of representatives of business segments and the Group’s support services.
Diversity of governance and broad engagement helps the organisation develop
In a diverse Board of Directors, the expertise and experience of members complement each other, which is why at Ilkka, we pay special attention to diversity. Members of the Board of Directors must represent diverse expertise. Different educational and professional backgrounds, a broad age and gender distribution, among others, support the company’s business and development. Persons elected to the Board of Directors must be qualified for the position and have sufficient time to perform their duties.
ESG in planning the new strategy
The process of updating Ilkka’s strategy for the period 2023–2026 began in 2022. In connection with the strategy process, we have asked our customers and employees what their expectations are of Ilkka’s ESG work.
Based on the responses, our commitment to ESG and sustainability forms the basis for cooperation with us: ESG must be in line with values and manifested as visible actions, not just words.
ESG and sustainability can be seen, for example, in:
- keeping promises and dependability
- supporting local businesses
- tolerance and equal treatment of personnel
- good governance
- transparency and openness of operations
- minimising environmental impacts and developing sustainable solutions.
All these principles will also be taken into account in the upcoming strategy period.
ESG and risk management
We also take ESG and sustainability risks into account in our risk management. Environmental risks are assessed by means of a scenario-based climate risk assessment. Identified risks are related to distributions, data security and the availability of labour, among other areas.
Our risk management policy is part of our management system. With the policy, we ensure the continuation of operations and identify and manage opportunities, threats and risks.