Fiskars Group

Fiskars Corporation is a Finnish public limited company whose statutory governing bodies are the General Meeting of Shareholders, the Board of Directors, the Managing Director (President and CEO) and the Auditor. Under the Articles of Association the Board has a minimum of five and a maximum of ten members. All Board members are non-executive and considered independent of the company (100% independent), and there is no employee representation. The less-represented gender (female) accounts for about 40% of Board members. Board diversity is considered by aspects such as gender, age, nationality and cultural background, and is addressed by the Nomination Committee. The Board and Audit Committee possess ESG expertise through experience and education. For sustainability, the ESG Strategy team is led by the CFO, and the Chief Financial Officer and deputy to the CEO holds overall responsibility for driving the sustainability agenda in the Fiskars Group Leadership Team (FGLT). The governance structure spans the Board, Audit Committee, FGLT, Group ESG Strategy Team, ESG Management Team, Business Areas and Global Functions. The President and CEO handles day-to-day management, assisted by the Leadership Team.

The Board of Directors and Audit Committee approve and review the ESG and sustainability ambition level, commitments and targets annually. The Board also follows up on progress towards commitments and targets on a quarterly basis. The Audit Committee has an advisory role regarding ESG strategy and management, reviews progress of the strategy and actions to meet sustainability requirements, and proposes items to the Board for approval. The Fiskars Group Leadership Team approves and reviews the ESG and sustainability approach, commitments, roadmaps and targets, with progress and execution followed up as part of the regular monthly agenda. The Audit Committee received training and regular updates from internal and external parties regarding Corporate Sustainability Reporting Directive (CSRD) reporting and other relevant topics. The ESG Strategy team, led by the CFO, has regularly reported on progress towards objectives and is available as needed to provide access to expertise. The Group ESG Strategy Team follows regulatory updates and consolidates data from Business Areas and global functions for overall progress reporting.

Fiskars Group's compensation philosophy and structures are designed to be market-relevant and performance-based. For most employees, compensation consists of three elements: base salary, bonus and benefits. Variable short-term and long-term incentives align remuneration with company performance and long-term financial success. The Performance Share Plan consists of annually commencing individual plans, each with a three-year performance period, with the Board of Directors deciding the commencement, performance criteria and targets. In 2023 and 2024, a measure related to the circular economy was added to the Performance Share Plan for 2023 to 2025 and 2024 to 2026 to reinforce commitment to sustainability ambitions. The plan's measures include total shareholder return, cumulative comparable EBIT and a circularity advancement measure, with the circularity target set at 10% of the potential total reward. Share plans are annually reviewed by the HR and Compensation Committee and approved by the Board of Directors. Employees working specifically with sustainability topics have various sustainability-linked incentives, and Business Areas and other parts of the organization have targets and incentives linked to sustainability, tailored to their line of work.

Fiskars Group provides a statement on due diligence that maps information in its sustainability reporting to the core elements of the due diligence process. The disclosure presents a table linking five core elements to the relevant sections of the Sustainability Statement. These elements are: a) embedding due diligence in governance, strategy and business model; b) engaging with affected stakeholders in all key steps of the due diligence process; c) identifying and assessing adverse impacts; d) taking actions to address those adverse impacts; and e) tracking the effectiveness of these efforts and communicating them. For each element, the table references where the related disclosures appear, spanning general governance sections such as ESRS 2 General Disclosures and ESRS G1 Business Conduct, environmental sections including ESRS E1 Climate change, ESRS E4 Biodiversity and ecosystems and ESRS E5 Resource use and circular economy, and social sections including ESRS S1 Own workforce, ESRS S2 Workers in the value chain and ESRS S4 Consumers and end-users.

The objective of risk management is to identify, assess, manage and monitor risks that may compromise the achievement of the company's business goals and commitments. Fiskars Group's Risk Management Policy provides comprehensive guidelines, with responsibility for risk identification, assessment, managing and monitoring lying with the business areas and global functions. The Risk Management function facilitates the enterprise risk management (ERM) process, and the Fiskars Group Leadership Team assesses major risks in a separate process. Cross-functional collaboration develops action plans for the most significant risks, which are presented to the Audit Committee for review. The double materiality assessment was conducted as an extension of the ERM process, aligning with CSRD requirements. Internal controls for sustainability reporting vary by reporting area, as multiple internal functions contribute, with control and assurance measures in place at the consolidated level. The FGLT, Audit Committee and Board of Directors are regularly informed about key ESG-related KPIs on a quarterly basis. The Audit Committee is specifically tasked with reviewing the Sustainability Statement and other ESG-related disclosures, including presenting assurance results to the Board and monitoring reporting procedures and internal control effectiveness.

Fiskars Group is described as the global home of design-driven brands for indoor and outdoor living, driven by its purpose of pioneering design to make the everyday extraordinary. Its portfolio includes Fiskars, Georg Jensen, Gerber, Iittala, Moomin Arabia, Royal Copenhagen, Waterford and Wedgwood, with brands present in more than 100 countries across Asia-Pacific, Europe and the Americas. In 2024 the Group was organized into two Business Areas, Vita (about 52% of net sales) and Fiskars (47%). The Growth Strategy focuses on winning brands, channels and countries, with four transformation levers (commercial excellence, direct to consumer, the U.S. and China) and enablers of people, digital, innovation and design, and sustainability. In 2024 the Group announced plans to separate the two Business Areas into operationally independent companies, expected effective from 1 April 2025 with the legal entity structure completed by the end of the first quarter of 2026. The company combines own manufacturing in Europe, Asia and the U.S. with approximately 173 finished goods suppliers. Reported figures include net sales of EUR 1,157.1 million, comparable EBIT of EUR 111.4 million, and 6,851 employees in 29 countries. Commitments are inspired by SDG 10, SDG 12 and SDG 13, and the company remains committed to the UN Global Compact.

Fiskars Group defines its stakeholders as entities or individuals that have a moderate impact on the business or are affected by its activities, products and services, presenting both risks and opportunities. The company considers it essential to stay informed of continuously developing stakeholder expectations to better align them with its strategy and sustainability approach, and its continuous strategy process takes stakeholder views into account. The views, interests and expectations of affected stakeholders are communicated to internal stakeholders, including administrative bodies, in accordance with the ESG management model and as part of the strategy, ERM and DMA processes. ESG and sustainability measures are reported through interim reports, the annual Board of Directors' report, the UN Global Compact, Ecovadis and CDP platforms, and the Upright Project platform. The statement identifies key stakeholder groups (consumers, customers, employees and potential employees, suppliers and subcontractors, shareholders and investors, NGOs, media, and research institutes, universities and vocational schools) and describes engagement approaches for each. Consumers, customers, suppliers, investors, NGOs and media were invited to participate in the company's materiality assessment in 2022, and employees in 2022 to 2024.

Fiskars Group discloses that seven out of the ten ESRS topics are material, as determined by its double materiality assessment. The critical topics are E1 Climate change, E5 Resource use and circular economy, S1 Own workforce and S4 Consumers and end-users, while the significant topics are E4 Biodiversity and ecosystems, S2 Workers in the value chain and G1 Business conduct. Topics E2 Pollution, E3 Water and marine resources and S3 Affected communities scored under the threshold and are not included in the report. For each material topic, tables present the sub-topics, the material impacts, risks and opportunities, whether impacts are negative or positive and actual or potential, the value chain phase driving the impact, and a score from 1 to 5. Impacts are considered through own operations and business relationships across upstream and downstream value chain phases. The time horizons considered are short-term, medium-term and long-term; for material impacts the expected time horizon is medium-term (1 to 5 years) but also short-term as they are already taking place. For material risks and opportunities, no considerable financial effects on financial position, performance or cash flows have currently been identified. Material impacts, risks and opportunities are utilized in decision making and risk and opportunity assessments.

Fiskars Group describes a double materiality assessment (DMA) process building on impact materiality assessments conducted for several years according to the Global Reporting Initiative (GRI) approach, with the most recent impact materiality assessment in 2022 and a more thorough financial materiality assessment in 2023. As EFRAG's IG 1 Materiality Assessment Guidance was not yet published, the company applied ESRS 1 principles, covering own activities and the upstream and downstream value chain. The 2022 process included a current state desktop study, a global online stakeholder survey conducted in English, Finnish, Swedish, Japanese and Chinese (yielding 1,136 responses from almost 40 countries), five in-depth interviews, and a benchmark study with a Fiskars Group Leadership Team working meeting. The 2023 DMA began with a desktop study, updated the impact materiality assessment against CSRD requirements, and engaged nine internal key decision-makers in interviews. Scoring used a 1 to 5 range for both impact and financial materiality, with severity preceding likelihood, and thresholds for material sub-topics set at significant (4) and critical (5). All disclosure requirements were then mapped to the DMA results to determine what is reported. Time horizons of short-term (under 1 year), medium-term (1 to 5 years) and long-term (over 5 years) were considered, and a separate process evaluates site-specific impacts for E2 and E3.

Fiskars Group states that its Sustainability Statement is prepared in accordance with the European Sustainability Reporting Standards (ESRS) issued by EFRAG, and that all data points included have been assessed as material according to its double materiality assessment. All disclosure requirements included in the statement can be found in the Content index at the beginning of the report. The company utilized the general list of phased-in disclosure requirements from ESRS 1 Appendix C. It reports several omissions of sensitive or unavailable information: the list of material suppliers assessed for E4 Biodiversity and ecosystems is treated as sensitive and not disclosed, the monetary amount of investment plans for climate transition is treated as sensitive and not disclosed, and the number of cases of recordable work-related ill health is not reported due to legal restrictions on collecting the data. No exemptions provided in articles 19a(3) and 29a(3) of Directive 2013/34/EU are used. No disclosures are incorporated by reference, but certain information on market position, strategy and business model, risk management and internal controls, and remuneration is elaborated further in other parts of the Report by the Board of Directors, the Corporate Governance Statement and the Remuneration report.

Fiskars Group presents a climate transition plan aligned with the Paris Agreement goal of limiting warming to 1.5C and with SBTi criteria. The company commits to becoming a net-zero entity by the end of 2049 and is part of the UN Business Ambition for 1.5C initiative, with near-term science-based targets approved by the SBTi. The plan includes a concrete investment plan to reach the 2030 science-based emission reduction targets and initial plans for the 2049 net-zero target. All manufacturing units and distribution centers were involved in compiling the 2030 roadmap by identifying current emissions and reduction opportunities. The main decarbonization levers are industrial energy efficiency, building energy efficiency, industrial electrification, use of renewables, and other measures, with glass and ceramic factories as priority units. The plan is integrated with business strategy and financial planning, reviewed and approved by executive teams, the Audit Committee, and the Board. Fiskars Group generates no revenue from fossil fuel expansion and has not been excluded from EU Paris-aligned Benchmarks. It does not disclose the total planned investment for the 2030 targets, considering it sensitive information.

Fiskars Group's climate change mitigation efforts are anchored in the Fiskars Group Environmental Policy, which emphasizes common targets and ways of working across the value chain and outlines the commitment to reduce emissions through energy efficiency, use of renewable energy, and supplier engagement. The Environmental Policy provides the framework to manage environmental impacts and mitigate risks, must be complied with by all employees working under the company's direction, and is approved by the Fiskars Group Leadership Team. Most of the company's factories and distribution centers are multisite certified in accordance with the ISO 14001 standard. The Fiskars Group Supplier Code of Conduct sets expectations for suppliers' energy and emissions management, and every supplier must sign and commit to it to do business with the company. While Fiskars Group has clear policies on energy efficiency and renewable energy, it does not currently have a formal policy on climate change adaptation. However, climate change impacts have been assessed as part of the company's risk assessment, and adaptation measures have been identified and implemented.

Fiskars Group reduces its climate impact through a combination of actions in its own operations and value chain. Its mitigation strategy involves replacing fossil-based fuels and energy sources with renewables at its factories and distribution centers, and enhancing energy efficiency through ongoing improvements and targeted investments. A key project is the Iittala manufacturing unit furnace renewal, which replaces old natural gas-powered furnaces with new, more efficient electric ones. In 2024 the Iittala factory's carbon-dioxide emissions decreased by 33% compared to the 2017 base year. During 2024, energy-saving initiatives such as waste-heat recovery and investing in newer, more energy-efficient equipment reduced energy consumption by 1,280 MWh, and the company transitioned to renewable alternatives for forklifts in one location. Altogether these actions cut annual emissions by 642 tons of CO2e. In the value chain, Fiskars Group engages suppliers with direct support, guidance materials, and emissions-calculation tools, increases recycled content, uses emission-minimized stainless steel, and improves logistics efficiency through better packaging and reduced delivery frequency. The transition plan is dependent on investments, with yearly CapEx on the Iittala renewal reported under EU Taxonomy indicators.

Fiskars Group set near-term targets in 2020 that have been validated by the SBTi and were set voluntarily. Three targets cover both own and suppliers' emissions: reduce GHG emissions from own operations (Scope 1 and 2, market-based) by 60% by 2030 from a 2017 base year, covering 100% of Scope 1 and 2 emissions; reduce GHG emissions from upstream transportation and distribution (Scope 3) by 30% by 2030 from a 2018 base year, covering 100% of the Scope 3 category 4 emissions; and ensure 60% of suppliers by spend covering purchased goods and services have science-based targets by 2024. In addition, the company has set a long-term net-zero target for its operations and entire value chain by the end of 2049, which has been submitted for SBTi validation. By 2024, Scope 1 and 2 emissions were reduced by 54%, transportation and distribution emissions by 44%, and 64% of suppliers by spend had set science-based targets. Fiskars Group has not published milestones or interim targets for its main emission reduction targets.

In 2024, Fiskars Group's total energy consumption was 237,674 MWh, up from 229,326 MWh in 2023, and down from 311,361 MWh in 2017. Total fossil energy consumption was 172,746 MWh, representing 73% of total energy consumption, with natural gas the largest single source at 152,845 MWh. Other fossil inputs included crude oil and petroleum products (37 MWh), other fossil sources (953 MWh), and purchased electricity, heat, steam, and cooling from fossil fuels (18,911 MWh); coal consumption was zero. Consumption from nuclear sources was 197 MWh (0.1%). Total renewable energy consumption was 64,731 MWh, or 27% of the total, including 60,770 MWh of purchased renewable electricity, heat, steam, and cooling, 3,854 MWh of self-generated non-fuel renewable energy, and 107 MWh of renewable fuel including biomass. In 2024, 81% of purchased electricity was from renewable sources. Energy intensity was 205 MWh per EUR million of net revenue. Natural gas is particularly significant in the glass and ceramic factories, and the Royal Copenhagen unit in Denmark transitioned to certified biogas in its kilns.

In 2024, Fiskars Group reported Gross Scope 1 GHG emissions of 30,496 tCO2eq (down from 31,207 in 2023), of which 15% came from regulated emission trading schemes. Gross location-based Scope 2 emissions were 25,321 tCO2eq and gross market-based Scope 2 emissions were 9,154 tCO2eq. Total gross indirect (Scope 3) emissions were 140,131 tCO2eq, with the largest category being purchased goods and services at 101,576 tCO2eq, followed by upstream transportation and distribution at 14,489 tCO2eq. Total GHG emissions were 195,948 tCO2eq location-based and 179,781 tCO2eq market-based. Overall GHG emissions increased by 4% compared to the previous year due to increased production volumes, while compared to the 2017 base year the company reached a reduction of 54% from energy-saving actions and renewable energy investments. Base years are 2017 for Scope 1 and 2 and 2018 for Scope 3, calculated per the GHG Protocol and validated by SBTi. GHG intensity was 169 tCO2eq location-based and 155 tCO2eq market-based per EUR million of net revenue. Categories 10 and 14 are not relevant, and categories 2, 9, 12, 13, and 15 have minor impacts and are excluded.

Fiskars Group does not present a standalone biodiversity transition plan. It states that 2024 is the first year of assessing biodiversity measures company-wide, building on existing knowledge such as managing Fiskars Village's surroundings and previously conducted site-specific assessments. The Double Materiality Assessment indicated significant biodiversity impacts and reliance on ecosystem services across the value chain, with mitigating actions in place for both. The company recognizes its role in an interdependent ecosystem and says it will place increasing focus on biodiversity going forward. It acknowledges the need for a deeper understanding of impacts and actions in its areas of operation, and notes that the DMA process increased understanding of the next steps needed to prevent further negative impact and secure reliance on ecosystems within the value chain. Recognizing and mitigating nature-related impacts is described as essential to preserve natural habitats and to secure long-term business resilience and supply chain stability.

The Fiskars Group Environmental Policy outlines the principles to mitigate the environmental impact of all Fiskars Group operations, including in the area of biodiversity. The policy states the commitment to take action to conserve biodiversity by sustainably managing the Fiskars Group owned forests and by collaborating in projects with local communities and NGOs where action is assessed to be needed. In 2024, 84% of the company's sites were ISO 14001 certified, and all sites are required to comply with national compliance requirements. Fiskars Group notes it has not yet established targets concerning biodiversity measures or biodiversity loss, and aims to build upon this foundation in coming years with a policy and target setting committed to the material biodiversity topics going forward. The company also states it has not applied the mitigation hierarchy nor used biodiversity offsets, and that more assessments are required to determine the extent of local and indigenous knowledge and nature-based solutions in biodiversity-related actions.

Actions related to biodiversity have concentrated mainly on resource use and circular economy, the direct surroundings and programs of operational sites, and local actions such as forest management in Finland. In 2024 Fiskars Group conducted its first group-wide biodiversity assessment, covering actual and potential impacts and dependencies at its own sites and in the upstream value chain, applying the WWF Biodiversity Risk Filter, the World Database for Key Biodiversity Areas, and the Natura 2000 platform. It covered all fully owned and operated factories and distribution centers globally, plus critical suppliers representing more than 75% of 2023 finished goods expenditure, and Fiskars Village. Local initiatives include the Gerber factory in Oregon supporting a project to install native plants around two protected streams to minimize erosion, and the Georg Jensen unit in Chiang Mai, Thailand co-building a check dam to reduce soil erosion and store water. The company has not conducted a full resilience analysis but says this first assessment lays the foundation for one. Expanding the assessment to downstream operations will be evaluated in 2025.

Fiskars Group reports that it has not yet established targets concerning biodiversity measures or biodiversity loss. It states the aim to further build upon the foundation created in coming years, with a policy and target setting committed to the material biodiversity topics going forward. The company explains that 2024 was the first year of a group-wide biodiversity assessment, and that it will deepen its knowledge base in this area and proceed with the work in upcoming years before setting targets. It notes that group-level actions and targets on resource use and circular economy are detailed separately in the E5 Resource Use and Circular Economy section. As no biodiversity targets are in place, no measurable, time-bound biodiversity targets or associated baseline years are disclosed for this topic.

Fiskars Group does not present a dedicated set of biodiversity impact metrics but discloses findings from its 2024 assessment. Thirteen of the assessed sites are within 2 km of a protected or conserved area, and four of these are located directly in two such areas, including Fiskars Group's own Royal Copenhagen Thailand manufacturing unit and three suppliers. The areas of concern are the Lower Central Basin in Thailand (approximately 1,420,000 ha) and the Qingdao-Rizhao coastal wetland and islands in China (approximately 8,760 ha), with no indication of significant harm caused by the assessed sites. Tree cover loss and pollution were identified as critical drivers, with tree cover loss deemed very high in the area of the Regional State Administrative Agency of Southern Finland where Fiskars Group owns sustainably managed, FSC and PEFC certified forests. Across the value chain, 90.9% of assessed sites are in areas at risk of pollution. Under the EU Taxonomy, 14,000 hectares of forests have a combined annual carbon sink of 18,000 tons of CO2 equivalent.

Fiskars Group's main policies to manage resource use and circular economy impacts, risks and opportunities are the Fiskars Group Environmental Policy, the Fiskars Group Supplier Code of Conduct, and the Fiskars Group Quality Policy, supported by a framework for enhancing circularity. The Environmental Policy sets out the approach to circular design, sourcing sustainable materials, chemical use and waste management, states durable products and timeless design as the primary objective, and expresses the aim to have no waste from operations going to landfill, prioritizing waste reduction in line with the European waste hierarchy. It also aims to replace virgin fossil-based raw materials with recycled or more circular alternatives where possible, and to prioritize renewable and recyclable packaging while reducing plastic. The Supplier Code of Conduct sets standards on labor and human rights, health and safety, environment, due diligence, and business ethics, and all raw material, component and packaging suppliers must commit to it. The Quality Policy provides a common framework for quality management. Regarding metals, Fiskars Group uses responsible suppliers complying with conflict mineral regulations.

In 2024, Fiskars Group accelerated its transition to the circular economy, emphasizing recycled and renewable content and enhancing repairability and recyclability. A cross-functional Circular Economy Task Force, initiated in 2023 and expanded in 2024, created the company's circularity framework and criteria. The framework focuses on product and service design and establishes three options for circular products: materials that are completely or partly recycled and/or renewable (with material-specific thresholds), designs that enable repairing, and products that are fully recyclable (which must also fulfill one of the first two options). Circular services such as spare parts, the Iittala Vintage service, the Fiskars pan-care service, and Georg Jensen jewelry and watch repairs also prolong product life. On waste minimization, internal recycling is used where possible; the PT Doulton unit in Indonesia has fed fired ceramic waste back into manufacturing since 2021, eliminating its landfill waste. The company also pursues alternative materials by engaging current suppliers and seeking new ones, and joined a Finnish circular economy network in 2024. It acknowledges reaching commercially viable circularity remains a risk.

Fiskars Group has two voluntarily set targets for resource use and circular economy. The first is for the majority of net sales to come from circular products and services by 2030, with a target of 50% by 2030 against a 2021 base year. Performance improved from 14% in 2023 to 26% in 2024. The target covers products made by Fiskars Group and sourced finished goods identified as circular under the circularity framework, and takes into account services that prolong product life, tracking increases in circular product design, circular material use, minimizing primary raw materials, and sustainable sourcing of renewable resources. The second target is zero waste to landfill by 2030, covering all operations including factories, distribution centers, retail locations and offices, with a 2017 base year. Waste to landfill decreased by 62% compared to 2023 and by 79% compared to 2017. This target is steered through the policies and actions described in the E5 standard.

Fiskars Group uses various raw materials, with key materials including inorganic substances for glass and ceramic production as well as steel, aluminum and plastic, plus packaging materials such as cardboard, plastic and wood for primary, secondary and tertiary packaging. The overall total weight of materials used in the company's own operations to manufacture products was 31,536 tons in 2024, down from 34,626 tons in 2023. Biological materials used (including packaging) were 5,037 tons in 2024, compared with 6,288 tons in 2023. The total weight of secondary reused or recycled component materials used (including packaging) was 7,242 tons in 2024, up from 2,770 tons in 2023, and the percentage of secondary reused or recycled component materials was 23% in 2024 versus 14% in 2023 (the 2023 figure was updated due to a calculation error). Figures cover the reporting period of October 2023 to September 2024. Fiskars Group is currently not able to report the total weight of materials used in its suppliers' operations, and did not source bio-based plastics in 2024.

Fiskars Group's resource outflows are framed through its circular products and services and their key product groups: jewelry, tableware, gardening, cooking, scissors and creating, and interior. These groups apply circularity principles such as recycled gold and silver in jewelry, recirculated fired ceramic materials in tableware, recycled steel and plastic in gardening and cooking products, and GOTS-certified renewable fibers in textiles, alongside repair and spare-part services. For durability, the Environmental Policy sets durable products and timeless design as the primary objective, supported by the Quality Policy and extensive laboratory testing, with extended warranties such as a 25-year warranty for certain Fiskars products and lifetime warranties in the US. On recyclable content, the rate of recyclable content (metals and precious metals) in products manufactured during 2024 is approximately 59%, and for packaging (paper, carton and corrugated cardboard) approximately 80%. For packaging, key materials are carton, corrugated cardboard, aluminum, metal, paper, plastic and wood, and the company strives to decrease packaging and plastic use.

Waste is generated throughout Fiskars Group's value chain, from manufacturing to packaging, with the majority consisting of production scrap including metal, clay and glass, plus general operational and maintenance waste. Total waste generated was 10,629 tons in 2024, down from 10,787 tons in 2023. This comprised 964 tons of hazardous waste (up from 1,446 tons in 2023) and 9,666 tons of non-hazardous waste (up from 9,341 tons in 2023). The total amount of non-recycled waste was 1,748 tons and the percentage of non-recycled waste was 16% in 2024, compared with 28% in 2023. For non-hazardous waste, 8,777 tons were diverted from disposal in 2024 (122 tons preparation for reuse, 7,334 tons recycling, 1,322 tons other recovery), and 888 tons were diverted to disposal, of which 340 tons went to landfill (down from 1,784 tons in 2023). For hazardous waste, 104 tons were diverted from disposal and 860 tons to disposal, including 471 tons to landfill. No radioactive waste is generated. Waste data is collected monthly based on invoices from permitted external waste-treatment partners and derived from direct measurements.

Fiskars Group has implemented several policies to address material impacts, risks and opportunities related to its own workforce, made available to all employees through the intranet or physically at factories and distribution centers. The Fiskars Group Employment Policy establishes core employment principles and applies globally to all employment relationships, outlining a commitment to transparent, open and honest engagement and to preventing discrimination based on characteristics including gender and gender identity, age, race, country of origin, physical or mental ability, health status, sexual orientation, marital status, religious or political beliefs, and parental status. The Health and Safety Policy sets principles for a culture of zero harm. Other policies include the Recruitment and Resourcing Policy, Data Privacy Policy, and Travel Policy. The Code of Conduct, Supplier Code of Conduct, and Human Rights Statement anchor the human rights approach. Policies are built on internationally recognized human rights, referencing the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights, ILO fundamental principles, the OECD Guidelines, and the UN Global Compact.

Fiskars Group actively involves employees in shaping their work environment through consistent communication, feedback mechanisms, and specific initiatives, with engagement embedded in daily operations. Engagement with worker councils and employee representatives occurs regularly based on regulatory requirements and location, with meetings held on a bi-monthly or quarterly basis. The Human Resources department enables engagement and cooperation with the own workforce, while the CEO and senior leaders are responsible for engagement within their organizations. Employee representatives participate in regular Health and Safety committee meetings at factories and distribution centers to ensure dialogue on physical and mental health and safety topics. The annual employee survey, Our Voice, is central to engagement and guides decisions on where improvements are needed. In May 2024, the overall engagement score was 73, and among office employees it was 65 out of 100. The company also collaborates with labor unions and work councils, and holds regular town hall gatherings and location-specific meetings for information sharing and open dialogue.

Fiskars Group has identified a potential negative impact toward its own workforce relating to employee health and safety, particularly for employees at manufacturing and distribution facilities who perform manual work and operate machinery and are at risk of injuries or accidents. The Fiskars Group Code of Conduct outlines the principles guiding ethical and responsible business practices and applies to all individuals within Fiskars Group across all entities worldwide. The Code of Conduct Violation Response Policy defines how the investigation of suspected code violations is conducted. The general remediation process and the channels for own workers to raise concerns are described under G1 Business Conduct, Remediation and whistleblowing channel. Employees are provided clear pathways to share concerns, ideas, and feedback, and a safety reporting tool is available to all employees for collecting accidents, near misses, and safety observations.

Fiskars Group takes proactive measures to address negative and positive impacts on its workforce, prioritizing initiatives that enhance employee well-being, safety, and inclusion. It has dedicated health and safety resources and a Health and Safety Manager who owns the policy at global level and ensures actions through health and safety teams in each location. All employees receive Health and Safety Policy training during induction, are involved in reporting and preventing hazards, and are empowered to stop work if concerned about safety. Initial risk assessments are carried out for new machinery and processes, and all incidents are investigated using the hierarchy of controls. In 2024, 100% of sites were covered by the management system and 84% of manufacturing sites and distribution centers were ISO 45001 certified. The company offers career-development programs, mentorship, and parental leave policies, and funds safety equipment, mental health programs, and diversity, equity and inclusion training. Effectiveness is evaluated using KPIs including engagement scores, inclusion experience, and safety metrics. Workplace accidents leading to lost time decreased by 19% in 2024.

Fiskars Group has set targets focusing on social priorities as part of its company-wide ESG targets. On health and safety, the company is committed to achieving a zero-harm workplace and aims to achieve a zero lost time accident frequency (LTAF) by 2030; the 2024 LTAF was 2.5 against a target of 0. On inclusion, Fiskars Group aims to be positioned among the top 10% of high-performing companies globally in terms of inclusion, with a 2024 inclusion experience score of 77 (May 2024, all employees) against a target of 80 and a benchmark of 80 (as of June 2024), updated biannually. An internal target has been set to achieve 25% leadership representation from diverse nationalities by 2030; as of the end of 2024, 16.4% of leaders came from diverse national backgrounds. Employees, contractors, and leaders are involved in shaping safety targets, and progress on local KPIs and global targets is monitored in dialogue between local Health and Safety Committees and the Health and Safety Manager. Targets are periodically reviewed and refined.

The HR department is responsible for collecting, maintaining, and reporting personnel data using a global HR system to ensure consistency and comparability. The reported people data covers active employees in an employment relationship with Fiskars Group as of 31 December 2024; inactive employees on leaves such as study leave, long-term sick leave, or parental leave are excluded and represent 3% of total employees. Total headcount was 6,851 employees, comprising 3,878 female, 2,971 male, and 2 other. By contract type there were 6,075 permanent employees, 455 temporary employees, and 321 non-guaranteed hours employees. By region there were 3,303 employees in Europe, 3,033 in Asia-Pacific, and 515 in North America. Countries with 50 or more employees representing at least 10% of the total were Thailand with 1,156, Finland with 1,042, and Indonesia with 804. During 2024, a total of 1,421 people left the company, and employee turnover was 20.7%. FTE and headcount information is also disclosed in the Financial Statements.

Fiskars Group defines top management as the CEO and the other members of the Fiskars Group Leadership Team. At top management level, gender distribution was 4 male (66.7%) and 2 female (33.3%), for a total of 6 (100.0%). By age group across the workforce, 1,033 employees (15.1%) were under 30 years old, 3,764 employees (54.9%) were 30 to 50 years old, and 2,054 employees (30.0%) were over 50 years old, for a total of 6,851 (100.0%). The company actively tracks and reports key diversity, equity and inclusion metrics on gender representation, generational diversity, and nationality diversity, analyzed across key markets, employee groups, and organizational levels, including the Fiskars Group Leadership Team, leaders, and people managers. Leaders are defined as those in a managerial role with a compensation grade set to F9 or above.

Fiskars Group pays adequate wages in all countries where it operates. The company uses Mercer market data to follow both competitiveness and level adequacy, and is committed to fair and competitive compensation for all employees, combining base salary, incentives, benefits, and non-monetary rewards such as learning and career development opportunities. It offers competitive base salaries tailored to geographic location, level of responsibility, experience, and performance, with a pay-for-performance approach that rewards exceptional performance with higher compensation. The company prioritizes non-discrimination in pay, determining compensation based on job performance and responsibility regardless of gender, age, ethnicity, or other personal characteristics. It regularly monitors the labor market, participates in salary surveys, and adjusts pay structures to stay competitive; in 2024, many employees received performance-based salary increases. Many employees are covered by an annual performance-based short-term incentive plan or other performance-based schemes such as sales, retail, or production plans, linked to both individual and company performance.

Fiskars Group has an occupational health and safety management system covering 100% of its employees, and 84% of its factories and distribution centers are ISO 45001 certified. In 2024 there were 50 total recordable work-related accidents (2023: 52; 2022: 59), and the rate of recordable work-related accidents was 4.9 (2023: 8.5; 2022: 7.4), calculated as the number of recordable accidents per one million hours worked based on actual working hours reported by the company's own factories and distribution centers. There were 0 fatalities as a result of work-related injuries in 2024, 2023, and 2022. LTAF in own manufacturing units and distribution centers decreased to 2.5 in 2024 (2023: 4.6), and contractor LTAF was 0 (2023: 0). Incident data is consolidated at company level, accounting for 100% of injuries across all operations. Fiskars Group does not collect or report data on work-related ill health cases due to GDPR constraints and legal prohibitions.

The gender pay gap for 2024 for all employees in Fiskars Group is 3.1%. This is calculated as the difference of average base pay levels between female and male employees, expressed as a percentage of the average pay level of male employees. The annual total remuneration ratio of the highest paid individual to the median is 18.7. This is calculated as the ratio between the highest paid individual's base salary and the median base salary for all employees, excluding the highest-paid individual.

Fiskars Group does not allow working conditions or treatment that contravene basic human rights or put workers at safety risk. The company has zero tolerance for child labor and safeguards vulnerable workers from abuse or exploitation, regardless of their employment contract or immigration status, and ensures its supply chain is free of forced labor and child labor by enforcing its policies, commitments, and due-diligence processes. The Code of Conduct Violation Response Policy defines how the investigation of suspected code violations is conducted, with the general process described under G1 Business Conduct, Remediation and whistleblowing channel. The approach to ensuring human rights in Fiskars Group operations is further described in that section. The Human Rights Statement expresses the company's commitment to upholding human rights as an integral part of responsible and sustainable business growth.

Fiskars Group complies with all relevant labor laws and regulations in the countries where it operates, and requires that fundamental labor rights, including freedom of association and collective bargaining, be respected across its operations. Its commitment to internationally recognized human rights is detailed under S1 Own workforce. The Fiskars Group Supplier Code of Conduct sets the standards all suppliers and partners must meet to do business with the company, and is implemented through supplier engagement and audits. It states that business consequences apply if a supplier fails to meet the minimum compliance level, with escalation to Sourcing leadership for decisions on business consequences or termination. The Code of Conduct Violation Response Policy defines how a suspected code violation is investigated. This policy complies with the EU Whistleblowing Directive (EU) 2019/1937 and applies to all Fiskars Group employees and companies worldwide. The company expects all business partners and their sub-contractors to be governed by the same or similar principles set out in the Fiskars Group Code of Conduct, including expectations to engage with stakeholders.

Stakeholder engagement is an integral part of Fiskars Group's due diligence, and input from stakeholders, including value chain workers, informs the review of the company's long-term targets and commitments. The company engages with direct suppliers and workers through site visits, annual supplier days, questionnaires, training and the program following the audit process. In supplier audits, the auditor interviews selected workers at the supplier's premises to verify compliance. Worker interviews affect the audit result, and the audit result affects business decisions regarding the supplier. Audits and worker interviews are conducted on a regular basis by either an internal supplier sustainability auditor or third-party auditing parties. Skilled auditors select workers for interview based on risk mapping of the supplier, type of business and workers employed, including potentially vulnerable workers, and by visually observing workers on site. Monthly Supplier Code of Conduct reports are compiled from audit findings, including input from value chain worker interviews, and shared with Sourcing and Supply Chain leadership to inform decision making. The effectiveness of engagement is measured via the targets of the Supplier Code of Conduct process.

Remediation of human rights breaches identified via the Ethics and Compliance Hotline is enabled and managed by the Legal team, as described in G1 Business Conduct. In cases of Supplier Code of Conduct audit findings and non-conformances, Fiskars Group follows up closely to ensure the supplier meets the minimum compliance level and to encourage improvement, with follow-up audits and worker interviews included when required. A Supplier Code of Conduct email account is open for contacting the audit team to report misconduct, as instructed in the Supplier Code of Conduct and its visualized version published on the company website. Suppliers must ensure reporting channels are communicated to their employees. The ethics and compliance helpline and various hotlines, provided by an external partner, are open to suppliers and business partners to allow open access to express concerns. If remediation is required, the supplier creates and informs Fiskars Group of a corrective action plan and timeline. The company evaluates worker feedback and the process itself during regular Supplier Code of Conduct and ISO management meetings. During the reporting year, no misconduct was reported to the Supplier Code of Conduct email account, and no human rights breaches were found during the year's audits.

To manage the identified risks, all suppliers and service providers must sign the Supplier Code of Conduct before entering a business relationship and are submitted to the assessment program. New suppliers are checked in a due-diligence process prior to approval and are audited before approval. The Sourcing team and a dedicated Sourcing Sustainability Manager oversee actions and compliance with the policy. Supplier performance is monitored continuously via audits, using an audit priority formula that includes latest audit results, country risk, and industry risk. Audit results are determined by zero-tolerance violations and the audit score, and are reviewed and confirmed by the lead auditor, with non-conformities set for corrective action plans and potential follow-up audits. During 2024, 81 audits in total were performed by Fiskars Group auditors and third-party auditors. No supplier relationships were exited due to Zero Tolerance findings, while 2 workshops were held with suppliers in Asia. During 2024 the company became a member of the SEDEX and AMFORI platforms. Human rights and other ESG topics are included in the annual ERM process, and in 2024 the ESG risk list of the risk assessment tool was reviewed and updated.

Fiskars Group ensures risk mitigation and drives improvement by setting annual supplier sustainability targets. KPIs measure Supplier Code of Conduct performance relating to the percentage of annual spend placed with low-risk suppliers for finished goods. During the reporting year, two targets were set to monitor performance and drive actions. The first KPI relates to finished-goods spend with low-risk suppliers, set at 80%, being the percentage of annual global spend with suppliers either from low-risk countries or receiving a low-risk result in the latest audit. Below low-risk, results can be medium risk, high risk, or fail. Medium risk is also acceptable, depending on supplier-improvement actions closely followed by the lead auditor. The second KPI relates to fail audit results from a zero-tolerance finding due to a score below 60% and/or any zero-tolerance finding, and the target level for this KPI is always zero. Both KPIs are updated monthly and the updated result is shared in business reviews with the Supply Chain leadership teams.

Fiskars Group prioritizes offering products and services that meet or exceed the expectations of consumers and customers, implemented via numerous company-wide policies. The company's commitment to human rights, detailed under S1, extends to the downstream value chain, including consumers and end-users, and is core to the Fiskars Group Code of Conduct. The Quality Policy articulates the commitment to customers and consumers and provides a common framework for quality management. The Environmental Policy describes environmental principles essential to product development and production, and the Guideline for Recycled Plastics promotes recycled plastic use without compromising chemical compliance. The Product Recall Policy guides the company in the event of a potential compliance issue in the marketplace to protect customers and ensure product-safety regulatory compliance. The Marketing Policy defines basic principles for all marketing communications, committing to claims that are legal, decent, honest, and truthful, respecting human dignity and not condoning discrimination, and follows the International Chamber of Commerce Framework for Responsible Environmental Marketing Communications. The Privacy Policy discloses how the company processes personal data, ensuring human-rights aspects of data privacy are respected and legal and contractual requirements complied with.

Engagement with consumers and end-users is owned by the Business Area and takes place through continued communication informing decisions from initial product scoping to new product development, marketing and claims, and consumer service. Some process steps are mandatory while others depend on the specific need. Insights engagement takes place in an ad-hoc fashion, predominantly prior to the design or mitigation phase, one to two times per month, conducted to protect data privacy. The aim is to include participants of different nationalities and to provide disaggregated views to capture nuances among consumers and end-users. The creative product portfolio includes products for children, requiring segmentation to ensure insights into safety measures and durability. During initial product scoping, consumers and end-users are engaged in person or via proxies, through research agencies or survey subscription tools. Their perspectives may directly influence product design by adding, changing, or removing features. Once a product is marketed, consumers and end-users provide feedback via social media channels, phone, email or websites, with contacts registered in the case management system. As a pilot in selected markets, consumer care engagement is assessed via a Net Promoter Score survey sent after resolving an inquiry.

Fiskars Group is committed to conducting business ethically and responsibly, complying with laws and regulations and tolerating no violations of the Fiskars Group Code of Conduct or Policies. To ensure channels for reporting concerns and grievances, consumers and end-users can submit concerns anonymously by writing to the ethics and compliance helpline or calling the anonymous ethics and compliance hotline numbers. During 2024, no severe human rights breaches or incidents connected to consumers and end-users were reported via the Ethics and Compliance Hotline or Consumer Service. Details of the process, including tracking and monitoring of the effectiveness of the channels, are described in G1 Business Conduct. Consumers and end-users can also reach Fiskars Group Consumer Care services via phone, email, and web form, where the consumer care team ensures inquiries and concerns are addressed and answered with input from the appropriate function. Social media are monitored for consumer and end-user contact, referred to consumer care for handling, and staff in Fiskars Group stores can receive inquiries and direct people to the appropriate function. The Consumer Privacy Policy, available on the website, details how consumers can raise concerns or report breaches.

With its core purpose to pioneer design, Fiskars Group designs products of timeless, purposeful and functional beauty while driving innovation and sustainable growth. Product design and life-cycle management are incorporated into processes through the circular economy and new materials and innovation. Consumer surveys help refine strategy for future planning, conducted by Consumer Insights teams focusing on specific products or experiences. Risk mitigation in relation to green claims, labelling and responsible marketing relies on compliance at product level and sound marketing practices. The Marketing Policy defines basic principles for all marketing communications, and Compliance and Marketing teams jointly ensure compliance with relevant local laws and regulations. Business Area Compliance teams monitor labelling and marketing requirements for different markets. Customer and consumer feedback is systematically analyzed to drive continuous improvement, with input applied to update processes, product design methods, and website information. Customer claims handling and root cause analysis take place monthly, feeding continuous improvements. Annual management reviews from the company's ISO 9001, 14001 and 45001 certifications further inform product-development decision making. Risk assessment is an integral part of the new product development process, ensuring safety compliance and product and packaging quality.

Fiskars Group is against throwaway culture and develops circular solutions to extend the joy its products bring and minimize strain on the planet. This ambition is supported by a group-wide target on circular economy, which supports the opportunity to meet increasing demand for durable and sustainable products and to maintain a strong company reputation. The circular economy target and performance are disclosed under the E5 Resource use and circular economy standard. To measure performance on quality, product safety and labelling compliance, quality, compliance and service level targets are set under the Quality Management System, monitored via monthly reporting and evaluated in the Supply Chain Management Team in annual Management Reviews. Fiskars Group does not disclose these targets, as they are internally set and managed. Effectiveness of engagement is measured with the target of claims rates, and product-safety claims are handled by the Business Areas under specific targets set for claims. In selected markets, consumer care engagement is assessed via a customer-care Net Promoter Score survey.

Fiskars Group's purpose is to pioneer design to make the everyday extraordinary, achieved by living the values, maintaining the company's reputation and iconic brands, and growing the business sustainably and with integrity. The company's values are creating change, celebrating the everyday, and growing with compassion. To enhance legal and regulatory compliance, Fiskars Group has implemented various compliance programs, policies, processes, and a mandatory Code of Conduct training program for all employees. The Code of Conduct applies to everyone within Fiskars Group, including employees, directors, officers, board members, consultants, and all group companies, even when it requires a higher standard than national law. Leaders and managers at all levels have increased responsibility to uphold the Code and act as role models. The Legal and Compliance function monitors compliance with the Code and provides support. Policies and standards communicate the company's values and culture and form part of the internal governance process. The Internal Audit team brings a disciplined systematic approach to evaluate and improve risk management, controls, and governance; VP Group Internal Audit reports administratively to the CEO and functionally to the Audit Committee to ensure independence.

Fiskars Group sources finished goods from suppliers in Europe, North America, and Asia, with the biggest sourcing countries being China, Thailand and Vietnam. The Procurement and Supply Management Policy describes the principles applied in all sourcing and purchasing activities globally, aiming to provide value through ethical sourcing that supports sustainable growth, and sets minimum standards for all employees and externals involved in sourcing. The Supplier Code of Conduct outlines the standards all suppliers and partners must meet, covering minimum obligations on labor and human rights including child labor, forced or involuntary labor and human trafficking, health and safety, environmental consciousness, due diligence, business ethics and integrity, management systems, commitments, and a speak-up culture aligned with the Ethics and Compliance Hotline. All suppliers must sign the Supplier Code of Conduct and are integrated into its process, which describes engagement through site visits, annual supplier days, questionnaires, training and an audit program, with escalation steps for failed audit results. Sourcing is further guided by the Sourcing and Purchasing Policy. A new version of the Supplier Code of Conduct was announced at the beginning of 2023. During 2024, 76.4% of spending on active finished-goods suppliers was audited. Fiskars Group prioritizes timely payments among all partners.

Fiskars Group is committed to preventing any form of bribery or corruption. Originally introduced in 2016, its global Anti-Bribery and Anti-Corruption Policy was updated and approved by the Fiskars Group Leadership Team in 2023. The update targeted strengthening the company's procedure to prevent and detect bribery and corruption, providing clear guidance to employees on distinguishing between acceptable practices and prohibited actions. To ensure effective implementation across all locations, the policy has been translated into all 20 languages spoken within Fiskars Group. Additionally, a comprehensive online anti-bribery and anti-corruption training, also available in 20 languages, was launched in 2023. This training is mandatory for all office employees globally, including sales, direct and indirect sourcing, and supply chain employees, as well as administrative and management personnel. Training has been assigned to all office employees because no single function has been assessed as riskier than others. The training completion rate is monitored collectively as a whole, rather than by individual functions. The anti-corruption and bribery training completion rate for 2024 was 80.2%.

Fiskars Group reports on confirmed incidents of corruption or bribery. During 2024, the number of convictions for violation of anti-corruption and anti-bribery laws was 0, and the amount of fines for violation of anti-corruption and anti-bribery laws was EUR 0. Actions taken to address breaches in procedures and standards of anti-corruption and anti-bribery numbered 3. More broadly, during 2024 Fiskars Group had a total of 46 reported misconduct cases, and the reported cases related to matters including corruption and bribery among other topics such as leadership issues, unethical behavior, misuse of employee benefits, breaches of policies, discrimination, bullying, harassment, conflicts of interest, health and safety, fraud, information security, and competition compliance. During 2024, Fiskars Group had no significant cases of non-compliance related to human rights, and no cases of severe human rights incidents or significant non-compliance with laws and regulations that resulted in fines or non-monetary sanctions.