SUSTAINABILITY REPORT 2018 - Finnair
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SUSTAINABILITY REPORT 2018
RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
CONTENT
3 RESPONSIBLE FINNAIR 42 ANNEX
4 Push for Change 43 Reporting principles
6 Value creation model 45 Global Compact content index
7 Materiality analysis 46 GRI content index
9 Management principles 50 Independent practitioner’s limited
16 Ethics and responsible sourcing assurance report
18 CLEANER
20 Energy consumption
23 Flight noise and biodiversity
25 Emissions
27 Waste
28 CARING
29 Caring for our employees
34 Caring for our customers
35 COLLABORATIVE
36 Stakeholders
37 Economic responsibility
39 Tax footprint
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RESPONSIBLE
FINNAIR
Finnair’s objective is to create sustainable
economic added value by producing flight
services profitably, cost-competitively and in
harmony with the needs of the environment
and society.
• Push for Change • Management Principles
• Value Creation model • Ethics and Responsible
• Materiality Analysis sourcing
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PUSH FOR CHANGE The same journey can generate more or
less emissions, depending on a number
of factors. By selecting a sensible form of
travel, a direct and lower-emission route as
well as an airline that uses modern aircraft,
everyone can reduce the environmental
impact of their journey. In the name of
ethics, companies should not compromise
on their travel, but on their emissions.
Airlines decide whether to invest in modern
technology, recycle waste appropriately,
reduce energy consumption, and care Does this ring a bell? Climate change and all years around the world, in aviation, and That is why we must act even more deci-
for the wellbeing of employees. As the our efforts to minimise its impacts keep the particularly at Finnair. sively. We must find new ways of reducing
customer, you decide, however, on the kind discussion going. This topic has been part of In 2012, the air transport industry joined jet fuel consumption and rely more on alter-
of airline you support. practically every evening conversation I’ve the EU-wide Emission Trading Scheme native sources of energy. Many promising
had recently. This actually makes sense –solu- (ETS). In 2016, the international community projects are already in the pipeline.
Tourism is one of the world’s biggest busi- tions need to come fast. agreed on a global carbon offsetting and For us, at Finnair, responsibility includes
nesses. It employs more than eight per cent Already in 2008 the topic of climate reduction scheme for international avia- more than the protection of the environment
of the world’s labour force and produces change and its impacts was under the focus tion, which requires reporting from this year from emissions and other negative impacts.
more than ten per cent of the world’s gross in Finnair’s first report on social responsi- onwards. Finnair, for its part, has signifi- We take all areas of responsible business
domestic product. Tourism’s impact on the bility, which followed the guidelines of GRI. cantly renewed its fleet and improved its seriously. We also see importance in working
world – whether it be good or bad – is huge. Even if the quotes above come directly from operations so that the level of emissions for together with our partners to ensure sustain-
that report, they would still be relevant as 2009–2017 has decreased by 20 per cent able development.
part of this report for 2018, against the back- / revenue tonne kilometre. The aviation Over the past ten years, the number of part-
ground of changes that took place over ten industry, including Finnair, keeps growing. ners has grown. Finnair has remarkable part-
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”OUR RESEARCH RESULTS
SHOW THAT THE MAJORITY OF
THE FINNISH PUBLIC WOULD
BE WILLING TO MAKE CONTRI-
BUTIONS IF THE FUNDS WOULD
DIRECTLY OFFSET CARBON
EMISSIONS OR SUPPORT
FLYING WITH BIOFUEL.”
ners that cooperate with us on the advance- Change, which helps customers offset and
ment of sustainability in the societies where reduce the emissions of their flights. We
we operate. The most prominent themes of introduced this service based on research
this year included well-being and education results from summer 2018, which show that
for children and youth, women empower- the majority of the Finnish public would be
ment around the globe, equality and non-dis- willing to make contributions, if the funds
crimination, development of accessible would directly offset carbon emissions or
services, prevention of human trafficking, and support flying with biofuel.
supporting the fight against cancer. Standing Our new initiative, Push for Change, offers
by our commitment to responsible business is customers both opportunities. A customer
crucial in today’s changing world. can purchase biofuel to be used in our flight
Already in 2008, our customers, both operations or support the use of low emis-
individual passengers and organisa- sion cooking stoves in Mozambique.
tions, wished they would be able to reduce Let us keep working together towards
emissions related to flying. Yet then, our flying and tourism that are more responsible.
customers did not show readiness to partic-
ipate in an offsetting programme.
Now the time is right. In January 2019, Kati Ihamäki
Finnair launched a service called Push for Director, Corporate Sustainability
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Value creation
INPUTS / RESOURCES VALUE CREATED / IMPACTS
OUR VISION, PURPOSE AND Value for society
Human capital MISSION
Personnel of 6,360, Flight connections for business and
training hours 50.3/person, expertise OUR VALUES AND leisure travellers, GDP contribution,
CODE OF CONDUCT taxes, innovative and sustainable
Financial products
Adjusted interest-bearing debt
PRODUCTS / OUTPUTS Value for shareholders
€675.2 million,
equity capital €1,021.7 million Market cap €907.8 million,
Network return on capital employed (ROCE) 11.9%
Immaterial Over 130 destinations in
Traffic rights, overflight rights Value for customers
Finnair’s network and
customer data, quality certifications, The fastest connections between Europe
over 1,000 in oneworld
route network, brand and customer base and Asia, customer satisfaction NPS 48,
network
safe and reliable operations
Social and partnerships Passenger
Supplier and partners, joint businesses transportation Value for personnel
(AJB/SJB) and alliance cooperation, 13.3 million passengers, Salaries and benefits €428.6 million,
distribution channels, public affairs STRATEGIC ancillary services people experience 3.77/5
FOCUS AREAS
Fleet and infrastructure Cargo transportation Environmental impacts
Growth Greenhouse gas emissions
Modern and efficient fleet of 81 aircraft, 158,140 tonnes
COOL Nordic Cargo Terminal, Helsinki hub 3,243,538 (jet fuel), noise and waste
Customer experience
Travel services
Natural resources People experience Package tours,
Jet fuel use 1,031,123 tonnes, dynamic travel products
energy consumption of facilities 259,479 GJ, Transformation
use of renewable fuels
SUSTAINABILITY
EFFICIENCY
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MATERIALITY ANALYSIS Finnair updated its materiality analysis
for corporate responsibility in 2018 in
The identified corporate responsibility
aspects were assigned priorities based
accordance with the reporting principles on their business impact and stakeholder
of GRI 101 Foundation Standard. The mate- interest. The results of the prioritisation
riality analysis was used to identify the were reviewed with the representatives of
key economic, environmental and social key stakeholders. Finnair’s Executive Board
impacts in Finnair’s value chain as well as and Board of Directors approved the results
impacts on business and stakeholder deci- of the materiality analysis.
sion making. The material aspects defined as a result of
The materiality analysis was based on the materiality analysis were grouped under
identifying corporate responsibility issues four themes. This analysis was also used as
emerging from Finnair’s business envi- the basis for reporting for 2018. Finnair’s
ronment through an analysis of industry sustainability themes, focus areas, mate-
trends, legislation, corporate responsi- rial aspects, and related GRI standards and
bility reporting guidelines, the reporting of boundaries can be found in the table below.
peer companies and issues highlighted by Specific GRI disclosures for the material
various stakeholders. topics can be found in the GRI content index.
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FOCUS AREA MATERIAL TOPICS GRI TOPICS TOPIC BOUNDARIES
ETHICAL BUSINESS AND RESPONSIBLE SOURCING
Ethical business and responsible sourcing • Code of Conduct • Ethics and integrity Finnair’s own operations, partners and
• Environmental compliance supply chain
• Socioeconomic compliance
• Anti-corruption and bribery • Anti-corruption
• Compliance with anti-competition regulations • Anti-competitive behavior
• Supply chain sustainability • Supplier social assessment
• Human rights assessment
CLEANER
Energy • Fuel efficiency • Energy Finnair’s own operations and indirect impacts
on greenhouse gas emissions (Scope 3) and
Noise and biodiversity • Biodiversity • Biodiversity
biodiversity
Emissions • Climate change mitigation • Emissions
• Renewable fuels
Waste • Eliminating plastics • Effluents and waste
• Recycling of materials
CARING
Caring for our employees • Employee experience • Employment Finnair's own operations
• Employee brand image • Labour/management relations
• Working conditions • Occupational health and safety
• Equality • Training and education
• Diversity and equal opportunity
• Human rights assessment
Respecting our customers • Flight safety • Stakeholder engagement Finnair's own operations and customers
• Customer experience • Customer health and safety
• Equality • Marketing and labelling
• Responsible use of customer data • Customer privacy
• Human rights assessment
COLLABORATIVE
Stakeholders • Stakeholder engagement Finnair’s own operations, society and local
• Public policy communities
Economic impact • Economic responsibility • Economic performance
• Indirect economic impacts
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In financial reporting, Finnair applies the tion is headed by the Senior Vice President
MANAGEMENT rules relating to listed companies as well as for Communications and Corporate Respon-
PRINCIPLES The company’s operations are guided by principles, international financial reporting standards. sibility, who is also a Member of the Finnair
policies and guidelines defined by the company, Most of Finnair’s operational activities are Executive Board. Reports and all key prin-
Finnair’s management system including the following: based on official regulations and are subject ciples and policies will be discussed by
is aimed at achieving strategic to official supervision. Within the group, the Finnair Board of Directors. The devel-
goals, creating added value for • Code of Conduct the legality and acceptability of operations opment, coordination and reporting is
• Risk Appetite Statement is monitored as part of Finnair’s general managed by the corporate responsibility
the company’s owners and other
• Risk Management Policy control and audit processes. The respon- function with the support of the steering
stakeholders, managing operational • Treasury Policy sibility for regulatory compliance in flight groups for other key functions.
risks and improving the company’s • Disclosure Policy operations lies with the persons defined and
performance. • Compensation Policy approved by the authorities. Finnair is also Responsible Finnair
• Insider rules subject to supervision relating to finances Finnair’s corporate responsibility is
• Board Diversity Principles and safety and security. reflected in its purpose “Enriching life by
• Approvals Policy Internal control and audit roles and bridging the world”, strategy, vision and
• Insurance Policy responsibilities are compliant with the values of commitment to care, simplicity
• Staff Travel Policy Finnish Companies Act, the Finnish Corpo- and courage. Responsibility is integral to
• Occupational Health & Safety Policy rate Governance Code for Listed Compa- all Finnair operations. The purpose of the
• Competition Policy nies and the regulations governing the responsibility strategy is to reduce the envi-
• Information Security Policy aviation industry. Finnair’s governance ronmental impact and increase the financial
• Data Protection Policy model, control environment and activities, and social return for society.
• Corporate Responsibility Policy internal audit and the roles and respon- The key areas of corporate responsibility
• Business Continuity Management Policy sibilities related to these are described in and sustainability strategy fall under the
• Environmental and Energy Efficiency Policy detail in Finnair’s Corporate Governance following themes: cleaner, caring, collabora-
Statement. tive. Finnair is committed to complying with
Corporate Responsibility at Finnair international and national legislation in its
concerns everyone and our aim is to incor- operations, as well as the ethical business
porate the corporate responsibility aspects principles laid out in the Code of Conduct.
equally in all our processes and product Anti-corruption policies are outlined in
design. The Corporate Responsibility func- Finnair’s Code of Conduct and Supplier
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Code of Conduct as well as in the Rules for Public affairs and lobbying Finnair is an active member of various avia- to their own work community and create
Anti-Bribery, Corporate Hospitality and Aviation is a strictly regulated industry. tion industry organisations, such as A4E a work environment that enables genuine
Hosting of Public Officials. Finnair’s Code Therefore, it is important for Finnair and IATA, but also in the Confederation of constructive discussion. The company
of Conduct includes an anti-corruption to participate in discussions and deci- Finnish Industries (EK), and its sub-associa- systematically develops its communication
section, and the receiving and giving of sion-making regarding its operating condi- tions and in several chambers of commerce. channels to enable more efficient commu-
bribes is strictly prohibited. During 2018, tions. It is part of the company’s growth nications and to facilitate constructive
Finnair continued to train its employees strategy to aim towards securing adequate Communications discussion.
on Finnair’s Code of Conduct in interactive traffic rights. Finnair aims at open, honest and timely
workshops, and all new employees receive Finnair pursues its interests in an ethi- communications. In line with these princi- Economic responsibility
the mandatory e-learning module on the cally sustainable manner by appropriately ples, Finnair’s communications are also in Finnair as a whole has substantial direct
Code of Conduct. Finnair decided to renew introducing its views, perspectives and compliance with regulations governing listed and indirect financial implications on
its Finnair Ethics Helpline to increase expertise. The company does not pressurise companies and limited liability companies, Finland’s national and local economies.
transparency and effectiveness of inci- or support political decision-makers in any as well as the obligations of the Finnish Act Aviation is a significant industry for
dent reporting. The new Whistleblowing way in pursuing its interests. The legality on Cooperation within Undertakings and Finnish society and the national economy.
system will be launched in Q1 2019 and will and ethicality of lobbying activities is the communications guidelines of the State The accessibility created by airline traffic
be opened to both internal and external controlled as part of the company’s general Ownership Steering Department. is a necessity for Finland’s global competi-
stakeholders. supervision and audit processes. Finnair takes different perspectives into tiveness and its economic impact is consid-
The corporate responsibility aspects The aim of Finnair’s lobbying activities is consideration and respects all stakeholders’ erable; aviation is estimated to account for
that are defined as material for Finnair are to maintain relationships concerning rele- views of its operations. Finnair’s internal 3–5 per cent of GDP, employment and tax
provided in the Materiality Assessment and vant policy and to participate in relevant communications are based on reciprocity. revenue. Finnair’s effective Asian strategy
the GRI content index. Finnair’s operations negotiations and the operations of advocacy Every employee has the duty to communi- is a key element of the GDP contribution of
and services involve a number of financial, organisations. When lobbying on various cate matters related to their area of respon- aviation and its impact is estimated at 1–2
social and environmental considerations. civil aviation and industry regulation issues, sibility to the relevant target groups. Those billion euros.
These have been described in more detail in Finnair typically cooperates with various in supervisory roles have a further duty to Finnair’s objective is to create sustainable
the following sections. organisations and chambers of commerce. communicate goals, operations and results economic added value by producing flight
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services profitably, cost-competitively and disqualified due to bias whenever they are service providers to an increasing degree. aircraft are always more efficient than
FINNAIR’S MOST
in harmony with the needs of the environ- required to make a decision pertaining to a Conforming with the UN’s Universal Decla- previous-generation aircraft, and hence
SIGNIFICANT ment and society. Responsible operations contract or business relationship involving ration of Human Rights and all applicable Finnair’s most significant environmental
ENVIRONMENTAL are the cornerstone of profitable business family relationships, ownership in the laws and statutes is a minimum require- action is to invest in a modern fleet.
ACTION IS TO INVEST activity, and Finnair takes into account the company concerned (with the exception of ment. Finnair requires that its suppliers Aircraft noise also has an impact on
effects of its operations on society. These a reasonable share of ownership in a listed comply with essentially similar ethical the areas surrounding airports and under
IN A MODERN FLEET.
effects are identified and assessed by the company) or any other business or debt standards as the company in its own oper- takeoff and approach flight paths. Advances
company’s corporate responsibility and risk relationship external to Finnair. Finnair ations. Finnair’s Supplier Code of Conduct in aerodynamics and engine technology
management organisations, which work does not accept corruption in any form provides clear principles to ensure ethical help mitigate aircraft noise. The noise
under the delegated authority of the CEO. and requires that its personnel and part- purchasing. Finnair’s Responsible Sourcing level of the Finnair fleet has been signif-
Finnair’s Board of Directors has set the ners comply with the principles of the UN’s Manual complements the Supplier Code of icantly reduced thanks to the on-going
company’s financial targets, which are Universal Declaration of Human Rights. Conduct as internal instructions for imple- fleet modernisation and noise attenua-
provided in information material for inves- Finnair’s procurement steering group is mentation. tion systems installed in older-generation
tors. As a public limited company, Finnair is responsible for the steering of the group’s Responsibility aspects are considered in aircraft.
committed to earning a profit for its share- procurement activity. The management of cooperation with the corporate responsi- In addition, other normal operations,
holders. The company’s profit distribution the Procurement unit has the duty to ensure bility unit. Finnair launched human rights including running business and office
principles are expressed in Finnair’s divi- that the personnel carrying out purchasing assessments in autumn 2015, which were premises and the fuel of ground vehicles,
dend policy. Finnair’s financial reporting has access to valid purchasing guide- extended to the supply chain in spring 2016. produce their share of emissions and envi-
aims to transparently provide information lines and that the guidelines are observed. Finnair has a process and guidelines for ronmental impact. These are all managed
about Finnair’s financial position and devel- Audits are performed in certain product and continuous improvement in supply chain under Finnair’s IEnvA environmental
opment. service groups and especially among stra- responsibility and for handling non-com- system.
tegic and key suppliers. Auditing focuses on pliances. Finnair aspires to continuously Finnair’s goal is to be a leading airline in
Purchasing practices quality and safety factors. develop practices that ensure that nega- the field of environmental responsibility.
As provided in Finnair’s Code of Conduct, its Many of the company’s procurement cate- tive impacts, including human rights viola- The company is committed to the common
procurement operations are entirely based gories are subject to regulation, requiring tions, can be mitigated and that responsible goal of the aviation industry to achieve
on the fair treatment of suppliers. The that the suppliers are approved by the sourcing is favoured when possible. carbon neutral growth by 2020 and to
persons who make procurement decisions authorities. This includes all procurement cut the emissions of our flight operations
at Finnair must always be independent of relating to flight safety. The sustainability Environmental responsibility by half by 2050 from the 2005 level. We
the business partners concerned. A Finnair of the supply chain is of major importance The biggest environmental impact of an comply with current environmental legis-
employee must declare himself/herself for airlines, which are using partners and airline is its engine emissions. Modern lation, but our environmental work aims
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at exceeding statutory requirements and mental management system developed by Social responsibility
being a pioneer in evaluating, reporting and IATA for airlines, which we apply to make Finnair is a company in a complex, highly
reducing environmental impacts. use of the best practices in the industry. technical business. The company has oper-
Finnair participates actively in civil avia- Our environmental management system ations and supply chain partners in dozens
tion environmental committees as well as has been assessed by third-party auditors of different countries, each with varying
in industry workgroups in Finland and the authorised by IATA who are qualified to laws and practices. The most important
Nordic countries, promoting the reduc- perform audits of environmental manage- social responsibility areas concern safety,
tion of the aviation sector’s environmental ment systems. To improve its performance, personnel, the supply chain and customers.
load. An open dialogue with different stake- Finnair has identified the most significant
holders and continuous development of environmental factors relevant to its opera- Human rights
operations according to the latest avail- tions and defined targets for them. Finnair’s own operations involve no signif-
able information are prerequisites for envi- Finnair takes into account environmental icant human rights risks or impacts.
ronmental responsibility. We report on our considerations in all its flight and ground However, indirect risks and implications
environmental impacts regularly in annual operations. Besides energy solutions that may exist in relation to the supply chains
reports and as a part of the Carbon Disclo- reduce the environmental load, Finnair’s and outsourced operations.
sure Project (CDP). In addition, we commu- environmental strategy also includes the In order to improve the monitoring of
nicate directly with various parties about preservation and promotion of natural its own operations and those of its entire
our operations and gladly answer any ques- diversity, known as biodiversity thinking. In supply chain, Finnair continued to develop
tions from our stakeholders or private addition, among other things, Finnair has assessment of the realisation of social
customers. actively supported a rain forest reforesta- responsibility and human rights in 2017. In
Environmental responsibility is managed tion and biodiversity project in Madagascar order to improve supply chain risk manage-
as part of Finnair’s environmental policy in collaboration with the Finnish Association ment, traceability and the assessment of
and environmental management system. for Nature Conservation for several years. social impact, Finnair relies on the SEDEX
Finnair Environment and Energy Policy Finnair signed the United for Wildlife system.
described the goals of the company’s envi- (UFW) Buckingham Palace declaration of Finnair’s human rights management is
ronmental management. In 2014, Finnair the Duke of Cambridge to prevent the illegal described in the Finnair Code of Conduct,
became the first European airline to receive smuggling of wild animals. As a signatory, The Supplier Code of Conduct and the
IATA Environmental Assessment (IEnvA) the company has undertaken to promote company’s personnel management prin-
Stage 2 certification for its environmental the awareness of different stakeholders ciples. Finnair respects the UN Universal
management systems. IEnvA is an environ- about this topic. Declaration on Human Rights and the core
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conventions of the International Labour tion or other personal attributes or circum complies with the model recommended by work community through various annu-
Organization (ILO). stances. the Finnish Ministry of Social Affairs and ally launched projects and to ensure the
In 2013 Finnair signed the United Nation’s Finnair does not condone harassment in Health. wellbeing of personnel through all career
Global Compact initiative and undertook the work community. Reporting infractions Leadership and competencies are devel- stages. The programme also contributes
to comply with the Global Compact’s ten is every employee’s right and the company oped on an individual, team, unit and to employee productivity, the company’s
principles of corporate responsibility. As is determined to take steps to intervene in organisation level. Learning and develop- competitiveness and attractiveness as an
required by the Global Compact principles all cases brought to its knowledge. It is the ment solutions are typically either adopted employer as well as the implementation of
endorsed by Finnair, the company aims to duty of every group employee to act so that by the entire personnel or tailored for the social component of corporate responsi-
prevent any violations of human rights and no one is accorded unequal status. specific development needs within a unit. bility.
the use of forced labour both within its own Finnair offers equal opportunities to They may also be aimed at developing In 2018, Finnair continued building the
operations and its supply chain. everyone with regard to recruitment, work professional skills, based on official require- management system for occupational
performance, career progression and devel- ments or in support of personal develop- health and safety, whereby the best prac-
Personnel opment. Finnair implements the equal pay ment. Finnair’s key focus areas for 2018 tices of each unit are brought together
A major aspect of social responsibility is to principle based on the Finnish Equality included leadership development and a new within Finnair’s unified ERP system. The
do with personnel and their working condi- Act and gives both men and women equal exchange programme, where, for six weeks, system is based on the Dupont’s 12 element
tions at Finnair. Personnel management opportunities for balancing work and family an employee familiarises him-/herself with model and covers all Finnair’s opera-
policies cover all aspects of social responsi- life. In 2011, Finnair signed the United the market and culture in another country. tions, premises and workplace principles.
bility that have been identified as material. Nations Women’s Empowerment Principles, Development needs in teams and the organ- The management system for occupational
The impacts affecting the personnel and the which give guidance on the empowerment isation are identified and the wellbeing and health and safety also strengthens more
working conditions are managed as based of women in the workplace, marketplace commitment of the personnel are regularly than before the integration of occupational
on the HR guidelines and the Finnair HR and community. monitored through a personnel survey. health care as part of a unified manage-
policy. Finnair complies with procedures jointly ment system for wellbeing at work. The
agreed by the employer and employees Occupational health and wellbeing results of the work on the management
Management, development, for the prevention of harassment, inap- at work system can already be seen by the improve-
training and employee wellbeing propriate conduct, and conflicts. Finnair The target group for the wellbeing at work ment in safety and sickness absence figures
Finnair does not discriminate based on has also promoted the prevention culture programme, which Finnair launched in in 2018.
gender, age, ethnic or national origin, and processes of easily accessible services. 2011, is aimed at the entire personnel. At Finnair, the Finnair Health Services unit
nationality, language, religion, conviction, The procedures are based on the Finnish The aim of the programme is to promote is responsible for occupational health care
opinion, health, disability, sexual orienta- Act on Occupational Safety and Health and the effectiveness and functionality of the services. Finnair Health Services focus on
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preventive care. The model of early caring tion of workers and collective negotiations PARTNERS ARE REQUIRED it are part of all decision-making at every
and the occupational ability risk manage- between the company and employee groups TO COMPLY stage. Finnair maintains and develops
ment system are examples of the guidelines are part of normal practice. All Finnair the principles of ongoing development by
governing preventive health care.
WITH FINNAIR’S QUALITY
employees have the right and opportunity adhering to its Safety Management System
Finnair Health Services and the Finnair to agree on terms of employment collec- ASSURANCE POLICIES AND (SMS). It covers all aspects of flight safety:
Aeromedical Centre FAeMC coordinate and tively. The terms of employment of manage- ETHICAL GUIDELINES. safety policy, flight safety risk manage-
are responsible for the implementation ment employees are agreed on locally. ment, safety training and communications
of occupational health care in the entire Personnel and management remunera- for the entire personnel and subcontractor
Finnair group. The operational and service tion principles are described Remuneration At Finnair, situations that deviate from chain, continual auditing of operations and
quality of Finnair Health Services is based statement. the norm are prepared for in advance. the assessment of the potential impact of
on the European Foundation for Quality The group has developed processes for new factors in the operating environment.
Management’s EFQM Excellence Model. The Management of customer various unexpected situations and these Official regulations and standards set the
quality system is used to ensure that Finnair experience are continually updated and maintained. minimum standards for Finnair’s safety
Health Services meets the requirements for The aviation industry consists of a strictly Customers must be able to trust in the fact management, which the company aims to
good occupational health care practice in regulated value chain comprised of multiple that they will be cared for throughout the exceed in all areas.
both aviation health care and aviation medi- suppliers of products and services. As an entire service chain. Finnair has responsi- One of the central elements in Finnair’s
cine services. The occupational health care airline and service company at the top of bility towards its customers for the overall safety system is the safety reporting
and aviation medical services are described this value chain, Finnair creates added quality of their experience, regardless of concerning the entire staff. The company
in a quality manual. value for its customers by providing them the fact that some services are produced by encourages its personnel and subcon-
with a comprehensive and high-quality Finnair’s partners rather than the company tractors to actively report any processes
Freedom of association and service product in collaboration with its itself. Therefore, Finnair pays increased or elements they come across that could
collective negotiation partners. Finnair is responsible for trans attention to the selection of its partners potentially compromise safety. Each report
Freedom of association and the collective porting customers and their baggage to and the partners are required to comply is analysed and assessed for risk, followed
right to negotiate on occupational issues their destinations safely, smoothly and with Finnair’s quality assurance policies and by necessary corrective actions based on
are recognised as fundamental rights in punctually. The most significant product ethical guidelines. this, and the person submitting the report
Finland. There is a long tradition of trade responsibility aspects in the Finnair Group’s will be notified of the outcome of the inves-
union activity in the company. Labour operations are flight safety, food safety, Flight safety tigation. Alongside subjective observations,
market culture in the company has been responsibility for individual customers, and Safety is at the core of all Finnair’s oper- Finnair extensively monitors and analyses
constructed in such a way that the organisa- responsibility for the cargo carried. ations. Flight safety and giving priority to objective indicators, such as flight data.
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Ongoing monitoring and analysis enable a larities are handled centrally from Helsinki, The company processes personal details at To deliver on their service promises, both
transparent risk level in all areas, which in thereby gathering the necessary infor- all stages of travel in compliance with the Finnair Cargo and the Ground Operations
turn enables prompt action on any indica- mation into one place. In this way, a more legislation on personal data and regulations unit apply a systematic evaluation process
tion of altered safety level. detailed overall picture of the multiplier issued by the authorities in the countries in when selecting subcontractors and part-
Events that seriously jeopardise safety effects and costs of the irregularities is which we operate. ners. Partners are required, for example, to
are extremely rare and almost without obtained, and efforts are made to minimise ensure and maintain the expertise of their
exception an impartial safety investigation inconvenience to the customer. Cargo and ground handling personnel, and also to ensure that vehicles,
is launched on each event. Safety inves- Monitoring and supervision of customer In cargo transport, Finnair and its subsid- equipment and premises are appropriate.
tigations are coordinated by public offi- service activity is based on regular auditing, iary Finnair Cargo are responsible for trans- In addition to quality audits at airports,
cials (Safety Investigation Authority) or, if customer feedback and customer satisfac- porting customers’ cargo in the condition Finnair also regularly performs quality
the authorities elect not to investigate the tion surveys, as well as external measure- in which it has been entrusted to us, and inspections that continually monitor both
event, Finnair will conduct its own internal ments. Our partners’ operations are also in compliance with Finnair Cargo’s General its own and subcontractors’ work. Finnair
safety investigation. The safety investiga- continually evaluated. Monitoring is system- Conditions of Carriage as well as interna- Cargo and Ground Operations are respon-
tors always carry out the investigation inde- atic and is used to set targets and check tional and national regulations. The aim is sible for maintaining and updating their
pendently and the company’s management that they are being met. Staff expertise is to offer cargo customers efficient logistics own quality systems and ensuring that
has no opportunity to influence the investi- ensured through training. services. This means, among other things, operations comply with requirements.
gation. that cargo entrusted to Finnair Cargo for Ground Operations also has an area
A strong safety culture, objective moni- Customer data transport is delivered to its destination manager, responsible for airport opera-
toring of the company’s own opera- Finnair respects the privacy of its customers exactly as agreed with the customer. tions, who has a significant role in moni-
tions, ongoing development and carrying and is committed to ensuring that personal Finnair’s Ground Operations unit is toring the compliance of operations with
out corrective measures as well as open details and other customer informa- responsible for the acquisition, quality regulations. If some activity does not to
dialogue with the authorities governing tion are processed appropriately. In 2018, criteria and quality control of ground some extent comply with the operations
Finnair’s operations guarantee safe and Finnair worked extensively to prepare for handling services required at airports. The manual or prevailing legislation, the devi-
high-quality airline operations. the implementation of a EU’s General Data unit’s task is to ensure that the ground ation is documented and corrective meas-
Protection Regulation (GDPR) and to ensure services used by Finnair fulfill the require- ures effected immediately.
Customer care compliance. We do our best to guarantee ments set for them, both in terms of
For exceptional situations, Finnair has its the confidentiality, security and accuracy quality and in respect of safety and official More information about safety and quality
own separate unit. All flight traffic irregu- of customer data under all circumstances. regulations. audits on IATA website.
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
Finnair’s ethical business principles are GRI 102-17 Mechanisms for advice
ETHICS AND RESPONSIBLE outlined in its Code of Conduct. The Code Finnair’s Actions for ethics and responsible and concerns about ethics
SOURCING applies to all Finnair personnel and all loca- sourcing in 2018: Finnair has a Whistleblowing line called
tions. Finnair requires that its suppliers Finnair Ethics Helpline, through which
comply with ethical standards essentially • In 2018, Finnair continued cooperation with the SEDEX system concerns for ethical business conduct can
similar to those which Finnair complies with and over 80 key suppliers are already using SEDEX self-assess- be raised. During 2018 no material inci-
in its own operations. Finnair’s Supplier ment. Best practices and development items in responsible dents of material misconduct were notified
Code of Conduct provides clear principles sourcing were identified in a project with students in the Haaga- through the Finnair Ethics Helpline nor were
to ensure ethical purchasing, including Helia Aviation Business programme, and work in responsible there any investigations on-going in the
zero tolerance for corruption. Finnair is sourcing will continue based on this. company.
working to further integrate sustainability • During 2018, no incidents of corruption were notified through
and ethical business conduct to an overall Finnair Ethics Helpline nor were there any material investigations GRI 205-2 Communication and
responsibility strategy. on-going in the company. Finnair decided to renew its Whistle- training about anti-corruption
blowing line called Finnair Ethics Helpline to increase transpar- policies and procedures
ency and effectiveness of incident reporting. The new Whistle- Finnair’s Code of Conduct includes an
FINNAIR’S ETHICAL BUSINESS
blowing system will be launched in 2019 and will be opened to anti-corruption section, and the receiving
PRINCIPLES ARE OUTLINED IN both internal and external stakeholders. and giving of bribes is strictly prohibited.
ITS CODE OF CONDUCT. THE • In June 2018, Finnair signed the IATA Resolution against modern Preventing corruption is the responsibility
CODE APPLIES TO ALL slavery and human trafficking as well as publishing the Finnair of everyone at Finnair, including the heads
FINNAIR PERSONNEL AND modern slavery and trafficking statement. of business operations, compliance function
and the internal audit.
AT ALL LOCATIONS.
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
Certain job descriptions at Finnair are such ment. The current policies and procedures Finnair continues to rely on the SEDEX perspective of operations and customer
that they are considered to have a higher were reviewed against the UN Declara- system to improve supply chain risk experience. The need to audit the imple-
than normal risk of corruption associated tion of Human Rights as well as guide- management, traceability and the assess- mentation of responsibility of suppliers
with them. All those handling such tasks lines and best practices for businesses. ment of human rights impacts. is evaluated among other things by the
are offered the opportunity to participate Risks related to human rights violations in system’s risk assessment tools, adjusted to
in anti-corruption training in business units Finnair’s own operations, the operations GRI 414-2 Negative social impacts each of the operational fields.
and subsidiaries. Finnair’s Code of Conduct of Aurinkomatkat Suntours and the supply in the supply chain and actions Finnair is aware of the risks related to
and Guidelines for Anti-Bribery, Corporate chain were also assessed. taken environment and human rights in geograph-
Hospitality and Hosting of Public Officials Finnair implements the SEDEX system to The sustainability of the supply chain is of ical and industry-specific areas and aims
are also communicated to the employees improve risk management, the evaluation of major importance for the airline as Finnair at continuous improvement of preventive
handling such tasks. The Group’s Guide- social impacts and traceability in the supply uses partners and service providers to an actions. The dialogue with the suppliers is
lines for Anti-Bribery, Corporate Hospitality chain. Assessment of the direct geograph- increasing degree as it expands its interna- continuous via themed supplier events.
and Hosting of Public Officials specify more ical and industry-specific social responsi- tional route network. Conforming with the
detailed guidelines concerning bribery bility risk of all suppliers that are significant UN’s Universal Declaration of Human Rights
and hospitality, and the group’s Conflict of regarding customer experience are made and all applicable laws and statutes is a
Interest Guidelines cover the identification using a risk assessment tool. Finnair aims minimum requirement for suppliers. Finnair
and avoidance of conflicts of interest and at including all new suppliers in the SEDEX requires that its suppliers comply with
related conduct. system starting from the bidding phase. similar ethical standards as the company
Finnair has its own ethical guidelines does in its own operations. Finnair’s
GRI 412-1 Operations that have for suppliers (Supplier Code of Conduct) Supplier Code of Conduct was updated in
been subject to human rights and subcontractors, and all suppliers are 2017 and it provides clear principles to
reviews or impact assessments required to comply with them. All partners ensure ethical purchasing. Responsibility
Finnair continued the project it began and subcontractors, moreover, are obliged aspects are considered in cooperation with
in the previous year to develop the real- to comply with the principles of the UN the social responsibility unit.
isation of social responsibility, human Universal Declaration of Human Rights as SEDEX system was used to evaluate all
rights reviews, and related risk assess- well as local legislation. suppliers that are significant from the
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
CLEANER
Finnair’s environmental responsibility
management is based on the principle of
continuous improvement. Environmental
responsibility is managed as part of Finnair’s
Environmental Management System. On
top of that, the Finnair Environment and
Energy Policy describes the aspirations for
environmental management.
• Energy consumption • Emissions
• Noise and • Waste
biodiversity
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
In 2014, Finnair became the first Euro- FINNAIR’S KEY ENVIRONMENTAL Finnair’s environmental responsibility in 2018
pean airline to receive IATA Environmental ASPECTS ARE:
Assessment (IEnvA) Stage 2 certification • Finnair continued the renewal of its fleet with next-generation Airbus A350 XWB aircraft that are on average
for its environmental management system. 20–25 per cent more fuel-efficient than their predecessors. At the end of 2018, Finnair’s fleet included twelve
IEnvA is an environmental management Airbus A350XWB aircraft.
system developed by IATA for airlines, which • CO emissions from flight operations increased by 11.7 per cent from the previous year, while available tonne
2
is consistent with ISO 14001:2005 standard. kilometres (ATK) increased by 13.0 per cent over the same period.
In this, Finnair makes use of the best prac- • Measured by the unit-specific CO emissions of revenue tonne kilometres (RTK), emissions increased by 2.0
EMISSIONS FROM THE USE 2
tices in its industry. Finnair has integrated per cent from the previous year.
OF JET FUEL
the Energy Efficiency System (EES+) as part • The volume of waste increased by approximately 9.1 per cent from the previous year.
of the management system. • Finnair’s energy usage in facilities decreased by 5.6 per cent.
To improve its environmental perfor- FLIGHT NOISE • As a part of Finnair’s fuel efficiency programme, a new vertical flight optimisation software (PACE) was
mance, Finnair has identified the key envi- brought into use in the A350 fleet in May 2018. It is located in the cockpit computers and provides the pilot
ronmental aspects of its operations, their THE ENERGY with a tool to make operations as efficient as possible. In addition to fuel and cost savings, the software also
impacts, risks and opportunities involved, CONSUMPTION OF offers environmental benefits as CO emissions drop in the same proportion.
2
and set targets related to them. PROPERTIES • During the summer Finnair conducted a consumer research study to find out what Finns think of the different
ways to reduce or compensate emissions resulting from aviation. According to the study’s results, the
majority of Finns are ready to pay to reduce the emissions caused by air travel but want the proceeds from
CABIN WASTE
possible additional charges to go directly to environmental work. Consequently, Finnair decided to introduce
to its clients a new tool to make flying more environmentally responsible. As of early 2019, customers can
choose to support either the use of biofuels or carbon capture initiatives when they fly with Finnair.
• Finnair Kitchen defined new targets for sustainable catering. First visible actions of this programme were the
replacement of milk jiggers with carton packed Finnish milk on European and domestic flights in November
2018 and removing plastic wrapping around renewed amenity kits (from spring 2019). These small actions
reduce generated waste by 5.0 tonnes and generated plastic waste by 10.0 tonnes annually. Finnair is also
the first airline implementing the IATA environmental assessment catering module. The implementation has
started and will be completed in 2019.
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
GRI 302-1 Energy consumption Fuel consumption and training flights as well as test runs
ENERGY within the organisation (Scopes 1 Finnair’s total consumption of jet fuel by technical services.
Finnair flights fuel consumption
CONSUMPTION and 2) comprises flights operated by Finnair itself, In 2018, Finnair’s jet fuel consumption tonnes
Finnair’s primary energy consumption flights operated by Norra on Finnair’s increased by 109,6 million kilogrammes
consists of the use of transport fuels. Avia- behalf, as well as so-called wet lease flights or approximately 11.9 per cent compared
tion is very energy-intensive, and Finnair’s leased on a short-term basis from other to the previous year. The higher total
largest environmental load arises from operators due to lack of fleet or crew. In consumption of fuel was primarily due
flying and particularly from the use of fossil addition, jet fuel is consumed on transfer to traffic growth and operational chal-
jet fuel. lenges. The breakdown of total consump-
tion in 2018 is presented in the adjacent
Energy Consumption chart.
2018 2017 2016 2015
Energy and heating consumption of Finnair 930,783 tonnes
Scope 1 non-renewable renewable
Jet Fuel, kg 1,031,125,265 0 921,519,796 874,148,241 834,512,184 properties NoRRa 89,090 tonnes
Wet Lease 11,252 tonnes
Jet Fuel, GJ 44,132,161 0 39,441,047 37,413,545 35,717,121 In 2018, the energy consumption of
Ground vehicles, kg 233,427 33,108 232,351 71,164 53,318 Finnair’s properties amounted to
Ground vehicles, GJ 8,403 1,192 8,365 2,562 1,919
72,078 MWh. Of this amount, electricity
Solar Power, GJ 1,033
Solar Power, MWh 287 consumption accounted for 37,932 MWh,
Total, GJ 44,140,565 2,224 39,449,412 37,416,107 35,719,041 while heating energy accounted for
11.9% 5.4% 4.8% 13.2%
34,146 MWh. 2018 was the first full year
Scope 2 when solar panels installed on the Cool
Faclities, electricity, GJ 136,555 0 113,814 119,711 123,459 Cargo terminal generated electricity
MWh 37,932 0 31,394 33,253 34,294 for the terminal use. The panels gener-
Faclities, heat, GJ 122,924 0 151,700 129,204 94,257
ated 287 MWh electricity (included in the
MWh 34,146 0 42,139 35,890 26,182
Total, GJ 259,479 0 265,514 248,915 217,716 Scope 1 consumption figure).
-2.3% 6.7% 14.3% -33.4%
Grand total, GJ 44,402,268 39,714,926 37,665,022 35,936,757
11.8% 5.4% 4.8%
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
Development in Finnair's GRI 302-3 Energy intensity NoRRA and other cooperation partners are GRI 302-4 Reduction of energy company’s pursuit of the target of reducing
fuel efficiency
mainly limited to route planning, fleet utili- consumption CO emissions by 17 per cent per RTK flown
2
fuel g/RTK Fuel efficiency of Finnair fleet sation and load factor optimisation. The average age of the fleet operated by by the end of 2020, using 2013 as the base-
300 Owing to the energy-intensive nature of its Finnair was approximately 9.5 years at line. By the end of 2018, Finnair had twelve
264 operations and the resulting costs, Finnair Energy efficiency of Finnair’s properties the end of 2018. Next-generation aircraft next-generation Airbus A350 XWB wide-
250
naturally has a strong aspiration to make its The properties owned and leased by Finnair consume approximately 20–25 per cent less body aircraft. In addition to providing a five-
200
operations more energy efficient, particu- are mainly located in the Helsinki Airport fuel than their predecessors. The CO emis-
2 star travel experience, the new Airbus A350
150 larly by striving to reduce jet fuel consump- area. The combined size in cubic metres of sions of the aircraft also decline by a corre- XWB aircraft offer 20 per cent more cargo
100 tion. Airlines with an environmentally these properties was about 2.8 million m3 sponding amount. In addition to one new and passenger capacity than their prede-
friendly mindset, such as Finnair, strive in 2018, and the energy efficiency was 25.6 Airbus A35 XWB aircraft, Finnair added one cessors.
50
to operate a modern fleet to reduce the KWh/m3. new Airbus A321 to its fleet in 2018. Finnair strives to improve fuel efficiency
0
15 16 17 18 required fuel and emissions. Energy consumption figures are not avail- The fleet investment, which has been the also by other means, not just modern-
Finnair’s measures to improve its fuel able for Finnair’s offices (sales etc.) abroad, most significant in the company’s history, ising its fleet. The ongoing fuel conserva-
RTK = revenue tonne kilometres, i.e. capacity
use according to payload weight
efficiency focus primarily on flights oper- as their energy consumption is typically will see Finnair take delivery of a total of 19 tion programme has achieved a reduction
Flights operated by Finnair and NoRRA ated by the company itself. Finnair monitors invoiced as a fixed part of rent. Airbus A350 XWB aircraft. They support the of several per cent in jet fuel consumption
(Norra as of 4/2015)
the fuel efficiency of its flights primarily by
the payload indicator (RTK), which accounts
for the passenger load factor, the volume
of cargo transported and the distance
between the origin and destination. The
Finnairs Fuel efficiency
following chart and table illustrate the fuel
efficiency of all Finnair flights in 2015–2018 2018 2017 2016 2015
(including Norra flights starting as of 4/2015 g/RPK 29.7 30 32.3 32.6
g/ASK 24.3 25 25.8 26.2
and all wet lease flights). Finnair’s oppor-
g/RTK 251.3 247.6 271.2 271.2
tunities to have an impact on the fuel effi- g/ATK 165.4 167 174.1 180.1
ciency of flight operations leased from
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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8RESPONSIBLE FINNAIR CLEANER CARING C O L L A B O R AT I V E ANNEX
in recent years. A 1 per cent increase in fuel regular basis, as well as the efficiency of noticeable weight savings. On average, GRI 302-5 Reductions in energy
IN 2018 FINNAIR
efficiency in Finnair’s traffic corresponds to water uplift and refuelling of the aircraft. In weight decrease has been about 150 kg per requirements of products and
IMPLEMENTED A NEW approximately 10 million kilogrammes of 2018 Finnair adjusted the standard water aircraft, decreasing fuel consumption by services
SOFTWARE (PACE) IN ITS fuel, which in turn corresponds to a reduc- uplift volume, gaining annual fuel savings 450 tonnes annually. Long-term work done to improve flights fuel
A350 FLEET TO OPTIMISE tion of over 30 million kilogrammes of CO .2 of 100 tonnes. By implementing new tech- In 2016, Finnair Facilities Management efficiency has resulted in the continuous
Finnair’s initiatives to improve the effi- nologies and materials aircrafts’ empty joined a nation-wide energy efficiency reduction of fuel used per passenger seat.
FLIGHT PROFILES.
ciency of fuel cover all activities within weight has successfully been reduced in agreement in the service sector, which is The fuel used per revenue tonne kilometres
operations, from flight planning to taxi in to recent years. Weight is always considered as part of the implementation of Finland’s increased in year 2018 as the full cargo
the gates. Operational punctuality and fuel an important factor whenever new aircraft long-term energy and climate strategy and capacity of the aircrafts was not success-
efficiency are the main focus areas in flight materials are being purchased. In addi- the framework decision of the Council of fully utilised.
planning. Due to the flexible deployment tion to empty weight, having the correct State on energy efficiency measures. The
of our Airbus fleet, it is possible to allocate take-off weight is crucial in fuel efficiency, agreement obliges Finnair to reduce its
an optimal aircraft type to each particular as it means that unnecessary fuel is not properties’ energy consumption by 7 per
route on any given day of the year. During carried in the tanks. In 2018 Finnair started cent from the 2016 level by 2025.
the operation stage, every flight is provided to improve and measure the efficiency of Finnair participates annually in the inter-
with an optimal flight path based on loading ULDs’, saving fuel about 200 tonnes national Earth Hour by switching off its
payload, weather forecast, and capacity of annually when unnecessary ULDs’ are not advertising lights at the airport and in
airspace. carried onboard. various properties for a whole weekend and
In 2018 Finnair implemented a new During 2018, Finnair introduced digital informing personnel of ways to conserve
software (PACE) in its A350 fleet to opti- newspapers and magazines on its flights. energy when at work as well as when on
mise flight profiles and trained pilots to do This enables Finnair to offer breaking duty.
one engine taxi-out. The taxi-out proce- news for the passengers and less fuel Finnair is an active member of the Nordic
dure itself saves about 120 tonnes of fuel consumption for each operated flight Initiative for Sustainable Aviation working
annually. when paper magazines are not carried group comprised of Nordic airlines, airport
Besides weather factors and air traffic onboard. A re-configuration process for operators and government ministries who
control, fuel consumption is affected by Finnair’s narrow-body fleet started on are working together with aircraft manu-
the weight of the aircraft and its load. The 2017 continued into 2018. The modifi- facturers to expedite the development of
weight of the aircraft is followed up on a cation of cabin interiors has resulted in biofuel in the aviation industry.
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