Kone

KONE's governance model for sustainability and corporate responsibility within the organization is designed to ensure that sustainability is embedded into all levels of decision-making, from strategic oversight to operational execution. The key governance bodies for sustainability at KONE include the Board of Directors, the President and CEO and the Executive Board, Sustainability Disclosure Board, Safety, Quality and Sustainability Board, and Global Sustainability Forum.

The Board of Directors holds the overall responsibility for overseeing the company's sustainability strategy. The Board regularly reviews sustainability performance, addresses potential risks, impacts and opportunities, and ensures that the company complies with all relevant regulations and standards. The Board members' strong conviction in the strategic importance of sustainability for KONE's business places significant weight on it in KONE's overall strategy. The board is well-versed in key sustainability matters relevant to the industry and products, such as carbon neutrality. The Board of Directors consists of non-executive members with a gender ratio of 67% male and 33% female. The Vice Chair of the Board, Jussi Herlin has a separate employment contract for his role as Executive Vice Chair of the Board at KONE. There are no other separate employment contracts for the members of the Board of Directors. Of the Board members, 78% are independent of the Corporation and 67% are independent from significant shareholders.

The President and CEO is responsible for integrating the sustainability strategy approved by the Board of Directors into the company's daily operations. The Executive Board implements the sustainability strategy across all business units. Each executive member is responsible for embedding sustainability within their respective areas, ensuring that initiatives are effectively executed and aligned with the company's overall objectives.

Specific sustainability-related executive boards have been established to focus on critical areas such as environment, safety, quality, global compliance and sustainability governance. Various sustainability related forums act as platforms that bring together representatives from various areas, business lines and global funcions to share best practices, discuss challenges, and align on global sustainability priorities.

The Board members are experienced in addressing sustainability-related impacts, risks, and opportunities, for instance related to carbon neutrality and health and safety topics, within the company's industry, products and operating environment. The Board's annual review cycle and governance structure are established to ensure continuous monitoring of progress towards sustainability targets, associated risks and opportunities as well as development of relevant skills. These reviews are conducted by KONE's or external subject matter experts.

KONE's Global Compliance Committee, which comprises four Executive Board members, the Corporate Controller and VP, Global Compliance, assists the Executive Board in ensuring that KONE has an effective program to conduct business in an ethical and compliant manner. The Global Compliance Committee has expertise in topics critical to compliance, and provides advice to the Executive Board, management and audit committee in meetings and through reports. The Audit Committee monitors compliance matters which are reviewed by the Board of Directors at least annually.

The Executive Board reviews and evaluates the risk assessment results minimum twice a year and agrees on risk management priorities. The Executive Board and the President and CEO receive updates on material IROs or other relevant risk assessments bi-annually by the global risk management function. The Board of Directors are informed on the material risks and opportunities on an annual basis by the General Counsel.

The Board of Directors monitors and evaluates the effectiveness of KONE's risk management systems according to their role defined in KONE Risk Management Policy, in addition to the review of key risks and action plans. The Board's Audit Committee monitors the efficiency and functioning of the internal control environment, including internal controls over sustainability reporting. The Board's Audit Committee is informed on internal control findings on an annual basis.

KONE drives sustainability performance also through compensation. KONE's long-term incentive plan, approved and updated by the Board of Directors, emphasizes sustainability alongside profitable growth to ensure a strong focus in driving transformation towards the achievement of KONE's sustainability ambitions. KONE's Sustainability KPIs have a total 20% weight in the long-term incentive plan and are related to KONE's targets to reduce its Scope 1, 2 and 3 carbon emissions (10% weight), as well as diversity and safety related targets (10% weight).

KONE integrates due diligence into its governance and strategy by adhering to the Finnish Corporate Governance Code and embedding sustainability into its operations. The company's due diligence and its integration to key processes are supported by KONE Global Management System, Health and Safety Policy Statement, Environmental Policy Statement, Human Rights Policy, Code of Conduct, and Supplier and Distributor Codes of Conduct, which are detailed in the policy sections of the material sustainability topics. KONE emphasizes engagement with stakeholders, including employees, suppliers, and communities.

Supporting KONE's sustainability due diligence, the continuous assessment and identification of impacts, risks, and opportunities is embedded into its processes and policies. In addition to complying with applicable laws, rules, and regulations, KONE has established internal requirements to uphold high environmental and social standards in global activities, as well as for its suppliers and partners.

KONE's sustainability reporting is based on the group-level principles of risk management and internal control. The aim of risk management is to identify risks and opportunities in relation to the achievement of sustainability objectives and assess the likelihood and magnitude of the impacts these may have, as well as to identify actions to manage the impacts. The identified risks and opportunities are managed through KONE's sustainability, risk management and internal control governance models.

KONE's internal control framework is built and based on corporate values, the KONE Code of Conduct, a culture of honesty and high ethical standards. The framework is supported by a dedicated leadership, training programs, a positive and diligent corporate culture and working environment as well as by attracting and promoting dedicated and competent employees. Global and local policies and principles are a key part of the internal control framework.

KONE's internal controls are designed to manage relevant sustainability reporting risks, as part of KONE's processes and employee job roles. Internal controls over sustainability reporting are supported by global and local policies and principles that are continuously maintained by incorporating changes and developments from the business operations and information systems.

KONE's Global Risk Management function facilitates risk assessments which includes the assessment of risks and opportunities in relation to sustainability reporting. Dedicated sustainability risk and impact or materiality assessments are conducted to ensure systematical identification, assessment, and treatment of risks, impacts and opportunities. Risks and opportunities are prioritized according to KONE's Risk Management Policy which applies to sustainability reporting.

KONE's Global Risk Management function facilitates sustainability risk assessments, including double materiality analysis (DMA) and the assessment of impacts, risks and opportunities (IROs), which are reviewed and managed jointly with relevant functions. Internal control activities to manage the identified material risks related to the accuracy and timeliness of sustainability reporting are adopted as part of KONE's processes that produce sustainability information.

The management is responsible for establishing and maintaining adequate internal controls and for monitoring their effectiveness as part of operative management.

In 2024, KONE launched a new strategy 'Rise' for years 2025–2030 where leading in sustainability is part of the strategic ambition and 'Cut Carbon' is one of the four strategic shifts. In this strategic shift, the focus is both on reducing KONE's own emissions as well as on helping KONE's customers to decarbonize with sustainable solutions. Sustainability continues to also be one of KONE's core principles together with safety and quality.

Progress toward the sustainability-related strategic ambition is measured using an internal sustainability index. Under the 'Cut Carbon' strategic shift, KONE measures emission reductions in the value chain, revenue from sustainable solutions, and market share in sustainable opportunities.

With the new strategy, KONE remains committed to provide the most sustainable solutions to its customers and help them decarbonize throughout the buildings' life cycle with the following key objectives: • Overall reduction of product related Scope 3 emissions: Reducing emissions related to the materials used and lifetime energy consumption per product ordered • Smart use of materials and circularity: Optimizing material use and reducing the materials, energy, and other resources used in KONE's solutions and operations • Extending product lifetime: Extending lifetime of equipment through service and modernization including intelligent KONE 24/7 Connected Services and predictive maintenance • End-user safety: Having safety as KONE's top priority in all operations • Accessibility: Providing accessible, safe, and convenient solutions for all groups of End-users

Business model and value chain

KONE has a lifecycle business model where it provides elevators, escalators, building doors and related smart solutions for buildings and urban mobility. KONE maintains and modernizes the equipment to ensure the longevity, safety, and efficient operation of equipment, thereby contributing to sustainability by extending the product life cycle. By offering energy-efficient and sustainable products, KONE aims to reduce environmental impact throughout the entire product life cycle, from raw material sourcing to end-of-life. Furthermore, KONE requires that its supply chain partners adhere to sustainability requirements, including ethical sourcing and minimizing environmental impact.

A significant part of the value KONE creates is the result of collaboration with the large network of customers, partners, and suppliers, as well as through the use of elevators and escalators manufactured and/or maintained by KONE. Key customer groups include construction companies, building owners, facility managers, developers, and housing associations. Architects, authorities, and consultants are also key influencers in the decision-making process regarding elevators and escalators.

KONE creates value to its customers by providing innovative, safe, and energy-efficient solutions that enhance the flow of people in urban environments. The company's digital solutions, such as predictive maintenance and smart elevators, offer improved user experience, safety and uptime. KONE strives to ensure health and safety for employees through high safety standards and practices. For its employees, KONE promotes diversity, inclusion, and continuous learning within its workforce. For its shareholders, KONE creates value through its resilient, sustainable and capital light business model, which creates strong and stable cash flow.

KONE has identified the following strategic inputs that are crucial in creating value for customers, shareholders and society: • Competent and engaged people and strong leadership • Innovative sustainable offering and global processes and systems • Best partners • Efficient manufacturing and delivery chain • A solid financial position • Environmentally sustainable operations • High safety record, strong brand, solid reputation and commitment to safety • Life cycle business model and the existing maintenance base

KONE ensures the availability of key inputs in its value chain through a combination of strategic sourcing, supplier management, and risk mitigation. To secure key talent, KONE invests in continuous employee development, diversity and inclusion, and retention through a supportive and innovative culture.

In this Sustainability Statement, KONE's value chain is defined to cover upstream activities related to component and raw material production, and downstream activities related to the use of KONE's products and to the disposal and recycling of equipment at the end of the building's life cycle.

Sustainability is embedded into KONE's strategy and business model. KONE collaborates and maintains an active dialogue with its stakeholders to understand their needs and expectations, also related to human rights matters, and to provide input for KONE's planning processes as well as to the continuous improvement of KONE management system, thus creating a predictable business environment for everyone. Applicable administrative, management and supervisory bodies are informed about the outcomes by the responsible topic owners and subject matter experts through various channels, and appropriate actions are taken to address the material impacts.

Stakeholder views have been considered as part of the strategy setting process. To enable employee's participation and to ensure employee consultation in health and safety matters, KONE runs and participates in local safety forums and councils with employees and their representatives. To represent the interests of employees and actively involve them in shaping the company, an employee engagement survey 'Pulse' is conducted annually.

The learnings from the various stakeholder engagement activities including the employee engagement and customer surveys were taken into account in strategy development by lifting the key findings to the relevant Executive Board discussions.

The views of employees, value chain workers and equipment users are also collected through KONE management system which harmonizes safety management practices across KONE and sets minimum requirements to protect the health and address the safety of KONE equipment users, employees and anyone else KONE works with. KONE considers the interests, views, and rights of its value chain workers in KONE's strategy and business model as feasible, mainly through management level discussions.

Stakeholder engagement table:

Current financial effects of KONE's material risks and opportunities do not expose KONE's financial position, financial performance or cash flows to significant risks for material adjustments to the carrying amounts of assets and liabilities. During 2024, KONE's strategy and business models showed resilience in harnessing the material opportunities and addressing material impacts and risks stated in this report, mainly driven by healthy geographic and business line mix, supported by robust supply chain. The conclusion was supported by a qualitative assessment based on KONE reaching the set strategic targets and KPIs during the reporting period.

KONE's material impacts, risks and opportunities have been considered thoroughly in the planning of the new strategy and during strategy implementation in 2024.

KONE has identified material risks and negative and positive impacts related to climate change and energy, negative health and safety impacts related to own employees, value chain workers and end-users, and positive impacts related to corporate culture, protection of whistle-blowers and corruption and bribery.

KONE's double materiality assessment (DMA) approach consisted of four phases to determine material topics and provide input for the strategy development. These phases included value chain mapping, impact assessment, financial assessment, and final materiality determination. The DMA was completed in 2024. The DMA results will be reviewed annually and updated when necessary. KONE's earlier materiality assessment, human rights impact assessment and third-party due diligence process, non-financial risk assessment, and climate change scenario analysis, which have been integrated into KONE's risk management processes, were used as a starting point for the DMA.

The results of the DMA including the material impacts, risks and opportunities (IROs) were reviewed by a management steering group consisting of KONE Executive Board members and other management members. These members were selected based on their ownership, roles and responsibilities in the area of sustainability and reporting. The results of the DMA were reported to the Audit Committee of the KONE Board of Directors. Internal control over the DMA process was ensured through the reviews of the results and the adopted systematic assessment methodology.

In the initial phase of the DMA, KONE mapped its value chain and listed the main business activities across upstream, own operations, downstream, and cross-cutting activities through interviews with key internal stakeholders. The geographical locations and key external stakeholders affected by these activities were identified for each, in line with the reporting principles. Specific geographies, high-risk areas, and at-risk functions were taken into account.

The impacts, risks, and opportunities were evaluated by KONE's subject matter expert teams on a scale from 1 to 5, aligning with the ESRS criteria. These results can be easily compared with KONE's risk management process and tool, allowing for the consideration of sustainability risks alongside other business risks in terms of relative position and priorities. The views of KONE's stakeholders were provided through summarized input by the involved subject matter experts through their interaction with affected stakeholders and engagement with the users of KONE's Sustainability Statement.

During the impact assessment phase, KONE evaluated, scored, and prioritized the various impacts (positive or negative) and activities within its value chain that could affect people or the environment based on their scale, scope, likelihood, and irremediability, which was considered for negative impacts. In case of a potential negative human rights impact, the severity of the impact was prioritized over its likelihood.

The financial assessment phase included identification of key risks and opportunities posing financial implications, together with an assessment of their magnitude and likelihood, as well as the timeframe. The following scales were applied:

Likelihood of occurrence:

1. Highly unlikely to occur: >0–1%
2. Unlikely to occur: >1–10%
3. Possible to occur: >10–30%
4. Likely to occur: >30–60%
5. Highly likely to occur: >60–100%

Magnitude of financial impacts:

1. Nominal financial impact
2. Moderate financial impact
3. High financial impact
4. Significant financial impact
5. Critical financial impact

Timeframe:

• Short: <1 year
• Medium: 1–5 years
• Long: >5 years

The connections between impacts, and dependencies with the risks and opportunities, were considered as part of the identification of IROs, mainly in relation to geographical locations and IRO contents in the subtopics, however not systematically cross-referencing all connections and dependencies. Each prioritized risk, opportunity or impact is assigned to a risk owner. The risk owner appoints a person in a relevant role to be responsible for the specific IRO. The responsible person implements the necessary IRO treatment actions, and reports regarding progress to the risk owner.

As a result of the DMA, a comprehensive overview of KONE's IROs relating to each sustainability topic was formed. When an impact and/or risk or opportunity score of any topic exceeded a certain threshold, the topic was identified as material to KONE. The treatment of such IROs were prioritized to meet KONE's strategic sustainability objectives and ensure alignment with stakeholder expectations. In principle, all mandatory data points have been included and disclosed following the materiality principle of the ESRS standard. No material entity specific IROs were identified.

KONE's material ESRS topics based on the DMA process:

KONE's first climate change scenario analysis was kicked off in 2022 and finalized in early 2023. Resilience assessment of KONE's critical-to-continuity activities with respect to climate-related risks was part of the analysis. The analysis continues to be reviewed annually as part of KONE's overall risk assessment process and assessed and updated regularly.

In the first phase of the scenario analysis, KONE focused on the qualitative implications of climate-related risks and opportunities in key strategic performance areas of its operations considering the inherent and residual risk after existing treatment actions. KONE aims to quantify the anticipated financial impacts of material physical and transition climate risks upon a future analysis update.

Climate-related risks and opportunities were considered in terms of key strategic performance areas, which covered direct material purchases (representing KONE's upstream value chain), logistics (value chain cross-cutting activity), manufacturing operations and product and service design (representing KONE's own operations). Although KONE's downstream value chain was not directly in the scope, product and service design is closely linked to the downstream value chain. KONE's analysis included how KONE can advise and help customers in preventing damage when their facilities, together with KONE equipment, are exposed to severe weather events, such as hurricanes and floods.

Climate scenarios

The climate scenario assessment utilized several information sources, including the 6th Assessment Report of The Intergovernmental Panel on Climate Change (IPCC) Working Group I, Swiss Re CatNet, and combined SSP-RCP scenarios, i.e. Shared Socioeconomic Pathways (SSPs) informed by the Representative Concentration Pathways (RCPs).

Real world political and societal dynamics may deviate from the assumptions of the SSP-RCP scenarios, such as the level of global cooperation, affecting the feasibility of mitigation and adaptation measures. Other constraints relate to assumptions on the availability and use of natural resources, the feasibility of technological advancements and their implementation and the effectiveness and implementation of policies.

The selected scenarios are considered representative of KONE's risks and uncertainties, as they combine a range of plausible warming pathways and related socio-economic developments, which may influence the global megatrends that support KONE's strategy, and which will have a direct impact in KONE's day-to-day operating environment.

Scenario comparison:

KONE's resilience under the scenarios

KONE has a climate pledge with science-based targets for significant GHG emissions reductions in line with limiting global warming to 1.5°C, which is currently the most ambitious criteria for setting science-based targets.

In the '1.5°C low carbon' scenario, KONE's business strategy is resilient, as demand for energy efficient, sustainable and climate resilient solutions increases already in the short term, and in the medium term there is full transformation to renewable energy and electrification that creates opportunities for KONE. Physical changes may cause occasional disruptions to KONE factories and supply chain. However, KONE's efforts to enhance its ability to anticipate, prepare for, respond to, and adapt to disruptions will keep business interruptions limited and mainly recoverable without material losses.

In the '2.7°C, middle of the road' scenario, in the short to medium term, tighter policies promote demand for KONE's energy efficient product offering, but only in selected markets and countries committed to the Paris Agreement. KONE's business strategy faces some resilience challenges, as with less policy incentive to innovate, the advancement in material efficiency, recycling infrastructure and new materials is slower in the short to medium term, but may accelerate in the long term, when regulators recognize the need to take actions. Global supply chains and logistic routes may face notable disruptions, affecting KONE's business.

In the '4°C high carbon' scenario, emissions continue to rise, the transition to a low-carbon economy is disorganized, economic growth is preferred over climate action and overconsumption of resources continues over the medium to long term. In this scenario, KONE's business strategy faces the most resilience challenges, as the demand for sustainable and climate resilient solutions grows only in advanced economies or among select customer groups. Even so, most of KONE's strategic choices will still be relevant. Particularly in the long term, extreme weather conditions increase disruptions in supply chains and logistic routes, which may lead to significant logistic cost increases. In the medium term, changes may be required in KONE's product design for the equipment to bear extreme heat and humidity in order to operate under such conditions.

KONE considers the current and future projected exposures to acute and chronic physical climate change impacts when investing into and selecting new manufacturing or distribution center locations or expanding existing ones. However, KONE's ability to influence suppliers or customers in the selection of their operating locations is limited. Due to KONE's global footprint, KONE is able to diversify its supply and delivery chain, making KONE less dependent on particularly exposed locations from time to time. Furthermore, KONE utilizes special, location-based software tools to regularly monitor its supply chain locations, including supplier manufacturing locations and physical risks relevant to climate change. This increases KONE 's speed to switch to predefined alternative supply chains, if needed.

KONE's new strategy, 'Rise', emphasizes actions to cut carbon emissions in alignment with the Paris Agreement and the '1.5°C low carbon' scenario. Sustainability is integrated into the strategy as a key driver of profitable growth and differentiation.

When conducting the scenario assessment, KONE has not identified any assets or business activities that are incompatible with or need significant efforts to be compatible with a transition to a climate-neutral economy. There are no critical climate-related assumptions in KONE's financial statements.

Transition plan

KONE is committed to a 50% cut in the Scope 1 and 2 emissions from its own operations by 2030, compared to a 2018 baseline, and has pledged to have carbon neutral operations by 2030. This target is in line with limiting global warming to 1.5°C, which is currently the most ambitious criteria for setting science-based targets. Additionally, KONE targets a 40% reduction in the emissions related to its products' materials and lifetime energy use (Scope 3 emissions) over the same period, relative to orders received.

In addition, KONE is committed to reduce electricity consumption in its own operations and has set a target to increase the share of renewable electricity to more than 90% by the end of 2023 and to 100% by 2030. KONE has also increased the share of renewable electricity faster than originally planned by reaching 97% already in 2023. Due to this progress and systematic work in 2024, KONE set the target to increase the share of renewable electricity to 98% during 2024. In 2024, KONE reached a 99% share of renewable electricity.

KONE's new strategy has a strong emphasis on emission reduction targets as one of the core strategic shifts. To support the ongoing green transformation, KONE has a Climate and Environmental Excellence Program which is centered around four focus areas: partner with customer, offering, operations, and mindset and behavior.

KONE has identified the following key decarbonization levers to reach its science-based targets by 2030 in its own operations (Scope 1 and 2) and value chain (Scope 3): • Scope 1: fleet transformation to electrical vehicles (EVs) and increasing use of renewable energy • Scope 2: increase use of renewable electricity and other renewable energy sources • Scope 3: increase share of energy-efficient electrification systems and regenerative drives, increase material efficiency, systematically engaging with suppliers, product innovations and partnerships

Climate change adaptation

KONE Business Continuity Management Standard sets company-wide minimum requirements on crisis and disruption preparedness and business recovery and supports KONE's resilience and adaptation to climate change. It guides to identify critical activities, impacts, risks, and mitigation actions to prevent the disruptions or recover within the set time objectives.

The impactful business disruption scenarios including physical climate change are documented in business continuity plans, which include roles and responsibilities relevant to the prevention and preparedness, emergency and crisis response and business recovery of each scenario. The plans and the sufficiency and effectiveness of risk mitigations are reviewed annually at minimum, in connection with crisis and business continuity management exercises and audits.

Climate change mitigation and energy

KONE's commitment to the ten principles of the United Nations (UN) Global Compact initiative are embedded in its strategy, policies, and procedures, including KONE Environmental Policy Statement which emphasizes KONE's pledge to reduce GHG emissions and minimizing the environmental impacts of its solutions through durable, energy-efficient products and maintenance offerings. KONE Executive Board reviews quarterly and Board of Directors reviews annually the progression against the environmental targets.

KONE's business processes are set under the ISO standards. Of these standards, ISO 14001 Environmental management system and ISO 50001 Energy management system specifically relate to enhancing KONE's sustainability performance in climate change mitigation in its own and partners' daily operations and culture in alignment with the UN sustainable development agenda, Paris Pledge for Action climate initiative and KONE's science-based targets.

Although KONE's material topics focus on the impacts of GHG emissions and energy in the value chain, KONE is also committed to reduce emissions and energy consumption in its own operations. KONE Global Facilities Policy demonstrates KONE's dedication to increasing the usage of renewable electricity at its facilities worldwide to 100% by 2030. All KONE units report renewable electricity as part of their quarterly reporting.

KONE's everyday work is guided by KONE Code of Conduct alongside other company policies and guidelines. KONE's Code of Conduct requires compliance with applicable laws and regulations to maintain high environmental standards across KONE's operations, suppliers, and customers. KONE Supplier and Distributor Codes of Conduct mandate KONE's suppliers to comply with all relevant environmental laws and KONE requirements, secure necessary permits, and manage materials, energy, and emissions effectively.

All policies are available on KONE's internal systems, such as intranet, or publicly.

Key policies related to climate change:

Climate change adaptation

KONE aims to adapt to the physical impacts of climate change by harmonizing the engineering, delivery and manufacturing structures of its existing and new products. This helps KONE to maintain and improve its resilience when the delivery chain or logistics routes may be disrupted and material or component suppliers, KONE factories, distribution centers or logistics routes for shipments need to be quickly replaced with feasible alternatives. In 2024, KONE conducted the first phase release of product harmonization which will be followed with selected component harmonization implementations in Europe and Americas in 2025.

In 2024, KONE conducted simulated crisis and business continuity management exercises at some of its manufacturing facilities to ensure business continuity and to reduce the impact and likelihood of disruptions within its full delivery chain. While KONE's 10 manufacturing facilities in seven countries, multiple distribution centers and a large supplier network across the globe help to mitigate the impacts from potential disruptions in individual locations or countries, KONE aims to secure the availability of supply by implementing alternative sourcing channels, long-term agreements, and last-buy options for critical components and services. KONE also has a global property damage and business interruption insurance program in place.

In terms of downstream adaptation, KONE continuously develops services, which help its customers with weather event loss prevention, stand-by maintenance during events and post-event status check and repairs.

Climate change mitigation and energy

During the reporting year 2024, KONE has successfully implemented emission reduction activities by investing into the energy efficiency of KONE's solutions, increasing, and expanding the low carbon offering and engaging with suppliers to improve material efficiency in its solutions. The emissions reduction activities will be continued in 2025 and beyond to ensure KONE meets its 2030 targets. All of KONE's emissions reduction activities in 2024 are aligned with its climate change scenario analysis work to ensure long-term success in line with the 1.5°C pathway of the Paris Agreement.

KONE's constant focus is on actual emission reductions both in its own operations and in products and value chain. However, to reach carbon neutral operations by 2030, KONE is planning to compensate the remaining emissions.

Scope 1 and 2 emissions

KONE focuses on decreasing Scope 1 emissions by primarily transitioning to zero and low emission vehicle fleet or no fleet. KONE's vehicle fleet accounts for approximately 95% (2023: 92%) of its Scope 1 and 2 GHG emissions. The total carbon footprint of KONE's vehicle fleet decreased by 2% compared to 2023 and decreased by 4% compared to its 2018 emissions (109,000 tCO2e).

During 2024, KONE developed a comprehensive plan to reduce vehicle emissions in collaboration with its partners by for example identifying the technicians who could utilize electrical vehicles (EVs), incorporating EVs in subsidiaries local car policies, encouraging KONE employees to select low-emission vehicles and providing EV charging points. Accelerating the transition to electric vehicles is imperative to achieve KONE's 2030 reduction targets.

Renewable energy and energy efficiency

KONE's ten global manufacturing units have reduced their net Scope 1 and 2 emissions by 83% (2023: 81%) at the end of 2024 compared to the 2018 baseline. In 2024, solar panels were used in six out of ten manufacturing units and green district heating in one manufacturing unit. All units have been purchasing 100% renewable electricity since the beginning of 2023. In 2024, KONE also increased the use of biofuels in its facilities in North America and continued to optimize energy usage in heating, ventilation, air conditioning and lighting systems in KONE's manufacturing units. KONE has also invested in manufacturing line robotics and automation to further improve both the material and energy efficiency of its manufacturing process.

In addition, KONE has taken significant actions to reduce market-based Scope 2 emissions by systematically improving energy efficiency and increasing the use of renewable electricity across its facilities. KONE's total energy consumption remained stable in 2024 compared to 2023 and increased by 6% compared to 2018.

Product and value chain (Scope 3) emissions: energy and material efficiency

In 2024, KONE's Scope 3 (product and value chain) emissions per product ordered (62.2 tCO2e/order) decreased by 8.7% compared to 2023 (68.2 tCO2e/order) and by 12.8% compared to 2018 (71.4 tCO2e/order). KONE's absolute product and value chain emissions decreased by 8.8% compared to 2023 and 9.8% compared to 2018. KONE's Scope 3 GHG absolute emissions from its products' annual energy consumption decreased by 9.8% compared to 2023 (364,000 tCO2e) and by 15.3% compared to 2018 (387,600 tCO2e).

During 2024 and onward, one of the major contributing emissions reduction factors is further improved energy efficiency of KONE's products. This was achieved, for instance, through an increased share of energy-efficient electrification systems and regenerative drives in ordered elevators and systematically engaging with suppliers to increase the material efficiency of KONE's solutions. KONE also collaborates with its suppliers to increase the recycled content in the materials used for KONE's products. KONE actively looks for new partners and ways of working to find alternative materials with lower embodied carbon emissions and to develop processes to reuse and recycle materials more effectively.

In 2024, KONE launched KONE Energy Management feature which optimizes energy consumption of elevator groups over passenger waiting time and time to destination in off-peak hours while minimizing the waiting time and time to destination during peak hours. This results in annual energy savings in elevator groups due to optimized energy use during low-traffic periods. Additionally, KONE Service Business introduced KONE Remote Services which enables resolving issues remotely. This lowers the need for service site visits and KONE technicians driving between the sites, resulting in GHG emission reductions.

KONE's offering also holds the widest range of externally assured product information in the industry, such as Environmental Product Declarations (EPD) in compliance with the EN 15804 standard, and energy efficiency documentation according to ISO 25745. In 2024, KONE published six (2023: four) EPDs and had in total 27 (2023: 21) third-party verified EPDs. Through Health Product Declarations (HPDs), KONE also provides information about the material content and associated health effects of its products, responding to a growing need for healthier living environments. By 2024, KONE holds a total of six HPDs.

KONE was the first in the industry to launch a carbon neutral service offering, the KONE Care DX, in 2021. By 2024, KONE has introduced a carbon-neutral elevator and escalator and continued to expand its carbon neutral offering to further markets. In the future, KONE aims to increase the number of elevators with regenerative drive-in line with the company's ambitious emission reduction targets, thus also increasing the Taxonomy-aligned share of revenue.

Product and value chain (Scope 3) emissions: supplier engagement, innovations and partnerships

In 2024, KONE identified its suppliers accounting for the majority of KONE's Scope 3 emissions from purchased goods, and actively collaborates with them to reduce these emissions. This collaboration entails actions such as continuous dialogue with suppliers, emissions reporting development, emission reduction targets setting and supplier trainings. From 2025 onwards, KONE will start to measure the commitment of its suppliers in reducing their CO2 emissions.

Requirements for smart and sustainable materials, solutions and buildings are increasing, presenting KONE with sustainable growth opportunities. To understand the emerging needs and technologies in sustainable, resilient urban environments and people's behavior in them, KONE actively participates in large-scale research projects and consortiums, such as Veturi, which is a four-year innovation program, co-funded with Business Finland. In this program, KONE collaborates with customers and partners to tackle climate change and urbanization challenges to create smart and sustainable cities.

Internally, KONE promotes environmental and climate actions, for example, during dedicated theme days. During 2024, KONE continued to grow awareness and ownership of its environmental targets and progress. The company organized for example sustainability and climate-related information sharing and training sessions for various employee groups. KONE also responds to customers' increasing demand for sustainable products and services.

Target setting

KONE's science-based targets for Scope 1 and 2 as well as Scope 3 were set in 2020, validated by the Executive Board and approved by the Board of Directors. The aim was to align KONE's emission reduction activities with the overall business strategy and financial planning.

The science-based targets cover 100% of KONE's Scope 1 and market-based Scope 2 emissions and almost 99% of KONE's Scope 3 emissions (category 1: purchased goods and services and category 11: use of sold products).

The science-based targets coupled with annual renewable electricity and carbon neutral operation targets form KONE's emission reduction plan and its global Climate Pledge to drive the needed emission reduction activities in both KONE's own operations and related to its products and value chain. KONE's strategy and business model are compatible with the transition to a sustainable economy, and with the limiting of global warming to 1.5 °C in line with the Paris Agreement.

The science-based targets were set in collaboration with relevant internal stakeholders and global business units including R&D, Innovation and procurement. In addition, Science Based Target initiative (SBTi) standards and criteria were followed at the time in line with a cross-sector emission pathway compatible with limiting global warming to 1.5°C accounting for business growth in different geographical areas and business lines. The 2018 baseline was chosen in line with SBTi guidelines and criteria for a representative year which covered the most recent period for which the data was available at the time. SBTi has assessed and approved the targets, and the progress against the targets is externally assured annually. The emission reduction roadmap and business growth estimations are also reviewed annually to align with KONE's overall business outlook.

All of KONE's emission reduction targets (Scope 1,2 and 3) and intermediate milestones are presented in the table 'GHG emission reduction targets'. These targets are based on KONE's science-based targets, and the intermediate milestones have been set to ensure that KONE remains on track towards its 2030 targets. During the reporting year 2024, KONE reached net Scope 1 and 2 emission reduction of 29% (2023: 25%) compared to its 2018 emissions of 154,700 tCO2e, exceeding the emission reduction target of -25% (2023: -21%).

GHG emission reduction targets:

Scope 3 emissions decreased by 13% vs. 2018 which was 6 percentage points below the target. However, KONE is confident in reaching the -40% target by 2030, supported by the emission reduction activities and new strategy emphasizing carbon reduction which will be continued in 2025 and beyond. Actions are prioritized to further increase the energy efficiency of KONE's solutions and its materials while also engaging suppliers to improve the material efficiency of KONE's solutions.

Energy consumption and mix

Total energy consumption

Total energy consumption: 540,000 MWh (2024), 537,100 MWh (2023)

Scope: Data covers 99% of KONE's Scope 1 and 2 emissions, including all KONE manufacturing sites globally. Energy consumption covers indirect and direct energy usage of non-renewable and renewable electricity, liquefied petroleum gas (LPG), natural gas, district heating and self-generated electricity (e.g. solar). Data sources include invoices and third-party service provider reports.

Energy consumption by source

¹ Majority of crude oil and petroleum products comprise of vehicle fuels (414,000 MWh in 2024)

² Natural gas RECs/GOs

Energy mix by percentage

Energy intensity

Note on energy intensity: Pursuant to EU regulation (EC) No 1893/2006, all KONE's revenue stems from operations in high climate impact sector including the manufacture of elevators, escalators and doors (NACE code C28.22 'Manufacture of lifting and handling equipment'). However, a substantial share (59%) of the total revenue can be attributed to the non-high climate impact sectors, such as Service and Modernization business. The energy intensity is calculated based on total energy consumption per the net sales from the consolidated activities.

Gross Scopes 1, 2, 3 and Total GHG emissions

Greenhouse gas emissions

Notes:

1. KONE is not regulated under emission trading schemes.
2. Biogenic emissions, not accounted for in the table, totaled 2,800 tons of CO2e.
3. KONE has a combined target for Scope 1 and 2 emissions and an intensity target for the significant Scope 3 categories (1 & 11).
4. KONE's Scope 3 intensity target (set in 2020) results in absolute emission reductions by 2030 based on Science-Based Target initiative's guidelines.
5. In addition to KONE's official science-based targets, KONE measures its comparable operational carbon footprint (Scope 1&2) annually. KONE set to reduce its comparable operational carbon footprint by 28% in 2024 and achieved 30% reduction compared to baseline 2019 (144,400 metric tons CO2).
6. Net Scope 1 emissions 108,600 tCO2 includes natural gas RECs/GOs certificates, gross emissions without certificates 112,500 tCO2. Total gross GHG emissions (location-based) were 11,700,800 tCO2eq and total gross GHG emissions (market-based) were 11,669,600 tCO2eq.

GHG emission intensity

The GHG emission intensity is calculated based on gross total location-based or market-based GHG emissions divided by the net sales from the consolidated activities.

Regulated emissions

KONE is not regulated under emission trading schemes (EU ETS or other). 0% of Scope 1 GHG emissions are from regulated emission trading schemes.

Biogenic CO2 emissions

Biogenic emissions totaled 2,800 tons of CO2e in 2024. These are reported separately and not accounted for in the Scope 1, 2, 3 totals above. Direct biogenic carbon emissions are calculated by multiplying the energy in TJ (2024: 51TJ) of used biofuels with emission factors from Statistics Finland.

GHG removals and carbon credits

A total of 28 tCO2 equivalent outside of KONE's value chain was cancelled in the reporting period covering emissions in 2024 and 2025. KONE compensates for direct and indirect CO2 emissions of service activities related to KONE Care DX service contracts. KONE also offers its customers the option to compensate the embodied CO2 emissions until handover of selected KONE DX elevators. In addition, after active emission reduction at all manufacturing units, KONE compensates the remaining CO2 emissions to achieve carbon neutral manufacturing units globally.

KONE compensates for its emissions through a third-party partner via carbon credits. KONE has chosen projects from different continents and representing different climate benefits: reforestation in Colombia, solar power in Thailand, hydro power in China and Laos, clean cookstoves that avoid deforestation in Mali. All projects are conducted outside of the EU and are Gold Standard® certified. KONE does not consider compensation in its science-based GHG emission reduction targets. Compensation is used only as a last measure to support KONE's customers to reach carbon neutrality.

Internal carbon pricing

KONE rolled out a pilot program for an internal carbon cost over the period 2021-2024 to facilitate the change and to encourage all units to reduce their carbon footprint. The internal carbon cost is a shadow cost in KONE's operative profit and loss statement, i.e. it is used in KONE's internal reporting and does not trigger actual cash flows inside or outside the company. The internal carbon cost covers KONE's total Scope 1 (108,600 tCO2e in 2024) and market-based Scope 2 emissions (1,400 tCO2e in 2024), which contribute approximately 1% and 0.01% to KONE's total GHG emissions, respectively. The actual price used is EUR 100 per metric ton CO2e, which is reviewed annually. It is based on the price of emissions allowances (EUA) traded on the EU Emissions Trading Scheme (ETS) which is widely used in the industry as a shadow price. KONE's carbon pricing scheme is not aligned with the screening criteria in EU Taxonomy.

Methodology and scope

Consolidation approach: KONE applies an operational control approach for consolidating the energy and GHG emission metrics. Data is first consolidated at the subsidiary or manufacturing unit level and entered into the environmental performance system. The data is further consolidated globally.

Standards followed: KONE follows the three standards provided by the Greenhouse Gas Protocol of the World Resource Institute and the World Business Council for Sustainable Development in its GHG accounting: the GHG Corporate Accounting and Reporting Standard, the GHG Protocol Scope 2 Guidance, and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Reporting scope: The collected energy data covers 99% of KONE's Scope 1 and 2 emissions. Reporting principles and scope cover countries globally, including all KONE manufacturing sites.

Scope 1 calculation: Scope 1 emissions have been calculated using the energy consumption data and national emission factors from the UK Department for Environment, Food and Rural Affairs (DEFRA) and some supplier-specific emission factors, such as biofuels in Finland. Scope 1 net emissions presented include renewable natural gas RECs/GOs. Gross emissions (112,500 tCO2) are calculated without them. This approach aligns with the evolving reporting guidelines, concerning the purchase of biomethane certificates, which currently cannot be calculated into gross Scope 1 emissions. KONE purchases renewable natural gas in USA and Canada through biomethane RECs and in France through Biomethane Guarantees of Origin.

Scope 2 calculation: Scope 2 emissions have been calculated following market- and location-based methods. Renewable energy guarantees of origin subject to European Energy Certificate System (EECS) and Energy Attribute certificates (e.g. Renewable Energy Certificates (RECs), International Renewable Energy Certificates (I-RECs), Tradable Instruments for Global Renewables (TiGRs)) have been acquired for the purchased renewable electricity. In 2024, KONE's purchased renewable electricity consumption consisted close to 100% of contractual instruments, approximately 30% of contractual instruments used for sale and purchase of energy bundled with attributes about energy generation, and about 70% of contractual instruments used for sale and purchase of unbundled energy attribute claims. Over 99% of KONE's Scope 2 energy comes from renewable electricity. In 2024, market-based Scope 2 emissions were 1,400 tCO2, with half from non-renewable electricity and half from district heating.

For the market-based method, supplier-specific emission factors are used for Finland and the Czech Republic supplemented with the Association of Issuing Bodies (AIB) European Residual Mix Report and Reporting principles and scope International Energy Agency (IEA) Emission Factors for untracked purchased electricity. For the location-based method, emissions factors from AIB and IEA are used.

Scope 3 calculation: KONE has reported all significant and relevant Scope 3 categories based on GHG Protocol Scope 3 Inventory guidelines. Annually, KONE assesses the relevance and magnitude of all Scope 3 categories and updates the inventory when needed.

• Category 1 (Purchased goods and services): Emissions from purchased goods and services are calculated for KONE's two main product types, elevators and escalators, for new construction, and for those modernization projects where new elevator units are delivered to the customer. The total emissions are based on the most sold products in each region multiplied by the number of all products ordered during the reporting year. The emission factors are from the Ecoinvent V3.4 database or EPDs from the material manufacturers.

• Category 4 (Upstream transportation and distribution): Logistics data covers the transportation of products from KONE's manufacturing units to distribution centers. Transportation to local warehouses or installation sites is included for cases where KONE's manufacturing units are responsible for transportation. Spare part deliveries are also within the reporting scope, while inbound logistics of materials to KONE's manufacturing sites is excluded. Product and spare parts logistics data has been calculated using an in-house logistics emission calculation tool and emission factors from DEFRA.

• Category 5 (Waste generated in operations): Emissions for waste in own operations is calculated by multiplying the collected waste data with the emission factors retrieved from DEFRA for each waste type and treatment method. The calculation does not cover waste from KONE's installation sites, which is normally treated according to KONE customers' waste management processes and applicable laws and requirements.

• Category 6 (Business travel): Business air travel data has been collected from KONE's biggest travel agency and few local travel agencies. The emission calculations are aligned with DEFRA's methodology.

• Category 11 (Use of sold products): The operational carbon emissions of sold equipment are calculated based on lifetime energy consumptions and emission factors from the latest publication of the IEA. The average annual energy consumption is calculated from KONE's delivered products according to the ISO 25745 standards for the most sold configurations and expected usage profiles in each geographical region. The average annual energy consumption of the products is multiplied by the expected lifetimes of 25 and 15 years for elevators and escalators, respectively, to obtain the lifetime energy consumption values. The emission factors represent the order quantity-weighted average emission factor for each region. The total global operational carbon emissions are calculated by multiplying the average operational carbon emissions of each region with the region-specific order quantities and then aggregating the results. KONE's product-related Scope 3 emissions calculations are in line with its third-party verified EPDs.

Data estimation methods: Energy consumption and waste data may not in all cases be available in real time or immediately after quarter close. For this reason, energy and waste consumption and Scope 1 and 2 and Scope 3 (category 6) data are projected for the fourth quarter, extrapolated from the previously known data in the third quarter in the reporting year. For consistency, Scope 3 (categories 4 and 5) are extrapolated in a similar manner. Similarly, KONE estimates the yearly order quantities required for Scope 3 category 1 and 11 calculations for the fourth quarter based on previously known data.

Uncertainty: Manual data collection and the use of estimations and emission factors introduces a level of uncertainty into the environmental data. To reduce uncertainty, KONE has established consistent emission reporting practices over the years including reporting guidelines, training and internal reviews and validations.

Carbon credits

KONE compensates for direct and indirect CO2 emissions of service activities related to KONE Care DX service contracts. KONE also offers its customers the option to compensate the embodied CO2 emissions until handover of selected KONE DX elevators. In addition, after active emission reduction at all manufacturing units, KONE compensates the remaining CO2 emissions to achieve carbon neutral manufacturing units globally.

KONE compensates for its emissions through a third-party partner via carbon credits. KONE has chosen projects from different continents and representing different climate benefits: reforestation in Colombia, solar power in Thailand, hydro power in China and Laos, clean cookstoves that avoid deforestation in Mali. All projects are conducted outside of the EU and are Gold Standard® certified. In addition to having a positive climate effect, the projects support other United Nations Sustainable Development Goals (UNSDG) providing social and environmental benefits to local communities.

A total of 28 tCO2 equivalent outside of KONE's value chain was cancelled in the reporting period covering emissions in 2024 and 2025. KONE does not consider compensation in its science-based GHG emission reduction targets. Compensation is used only as a last measure to support KONE's customers to reach carbon neutrality.

KONE rolled out a pilot program for an internal carbon cost in 2024. The pilot covered KONE's global manufacturing units and some support functions with the purpose to enable climate-conscious business decisions. The internal carbon cost is applied to relevant investments and decisions at KONE's manufacturing units with a starting price of 100 EUR per tonne of CO2 equivalent. The internal carbon cost may be used to incentivize emission reductions and influence business decisions while supporting KONE's path towards its science-based targets.

Based on the assessment, physical climate risks are not considered material. KONE has taken mitigating actions to ensure continued operations globally and actively develops business continuity management capabilities to reduce the impact and likelihood of disruptions within its supply chain.

KONE has performed physical climate risk and vulnerability assessment as part of KONE's annual risk assessment process. KONE's risk and opportunity assessment includes a Climate Change Scenario Analysis based on International Panel for Climate Change RCP scenarios to help to ensure that KONE's strategy is resilient to climate change in a range of possible future states. The risk assessment focused on the qualitative implications of climate-related risks and opportunities in key strategic performance areas of KONE's operations: direct material purchases, manufacturing operations, logistics and product and service design.

Phase-in has been used for this disclosure requirement as permitted under ESRS standards.

KONE's approach to health and safety is based on KONE Health and Safety Policy Statement and KONE Management System (KMS). KONE's Health and Safety Policy Statement is approved by KONE President and CEO, and it sets the direction for health and safety work at KONE. It clearly states that health and safety of employees, customers and other stakeholders working with KONE is a top priority for KONE. The Policy states that all accidents are preventable and is complemented by guidance on how this commitment is realized in practice.

KONE Management System applies across KONE's global organization and harmonizes health and safety management practices and sets minimum requirements. The system addresses the health and safety of KONE equipment users, employees and anyone else KONE works with. It covers KONE's own operations including factories, offices, customer sites and public places with KONE equipment.

KONE has developed and implemented a human rights policy which sets out the company's commitments to respect human rights and to prevent adverse human rights impacts. The Human Rights Policy contains commitments related to due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, including freedom of association and collective bargaining, prohibition of forced or compulsory labor, and prohibition of child labor. The policy applies to KONE's business operations globally and to all KONE companies, employees and management.

KONE Code of Conduct contains provisions related to respect for people, workplace safety, equal treatment, human rights and creating a workplace free from harassment, discrimination and violence. The Code applies to all KONE employees globally and sets the expectation that everyone acts with integrity and follows both the Code and all applicable laws. The Code contains processes and measures for preventing trafficking in human beings through supplier requirements and risk-based assessments.

KONE has workplace accident prevention policy integrated into its management system. The Health and Safety Policy Statement and KONE Management System provide the framework for workplace accident prevention across all KONE operations, including comprehensive risk assessment procedures, safety training programs, and incident reporting and investigation processes.

To enable employee's participation and to ensure employee consultation in health and safety matters, KONE runs and participates in local safety forums and councils with employees and their representatives. These forums provide structured channels for ongoing dialogue about health and safety impacts and allow for meaningful participation in the development and implementation of safety measures.

To represent the interests of employees and actively involve them in shaping the company, an employee engagement survey 'Pulse' is conducted annually. This survey provides a formal mechanism for employees to provide input on various aspects of their work experience, including health and safety matters.

The views of employees are also collected through KONE management system which harmonizes safety management practices across KONE and sets minimum requirements to protect the health and address the safety of KONE equipment users, employees and anyone else KONE works with.

Employee participation in health and safety matters is facilitated through various channels including: • Daily interactions and regular employee performance discussions • Internal channels and forums for company-wide discussions • Training opportunities and innovation tools • Local safety forums and councils with employee representatives

KONE employee headcount

Employees by gender

Employees by age

Employees by employee category

Non-employee workers

Health and safety metrics

Global key performance indicators for health and safety – Own workforce

Coverage and methodology notes:

100% of own workforce (employees and contractors) is covered by KONE's integrated health and safety management system based on legal requirements and ISO 45001 standard. The system is audited both internally and by an external party.

Metric definitions:

• Fatalities: Does not include fatalities as a result of work-related ill health.
• Recordable work-related accidents: Work-related accidents (injuries) that result in any of the following: death, days away from work, restricted work or job transfer to another job, medical treatment beyond first aid, loss of consciousness; or significant injury diagnosed by a physician or other licensed healthcare professional. Does not include cases of work-related ill health due to restrictions on collecting the data.
• TRIR: Total number of recordable work-related employee accidents (injuries) divided by the number of total employee theoretical hours worked, multiplied by 1,000,000.
• IIFR: Number of severe and moderate work-related employee incidents divided by the number of total employee theoretical hours worked, multiplied by 1,000,000.
• Lost days: Counted as total calendar days lost from work due to a work-related injury, including injuries that occurred in the previous year but contributed lost days in the reporting year, counted up to maximum of 180 days per injury. Does not include cases of work-related ill health due to restrictions on collecting the data.

Scope limitations: Due to the current configuration of the reporting system (KSS), only own employees are included in these figures. Cases of work-related ill health are excluded from recordable accidents and lost days metrics due to legal restrictions on data collection.

Work-life balance metrics

KONE provides narrative disclosure on work-life balance initiatives but does not disclose quantitative metrics for family-related leave as required by ESRS S1-15.

Qualitative disclosure on work-life balance

KONE supports work-life balance through:

• Flexible working arrangements including remote and hybrid work, flexible working time, job sharing, compressed work week and part-time work
• Family support services including childcare and elderly care services
• Family leave provided in many local units
• Strict recovery periods emphasized during work-related travel

ESRS S1-15 metrics

Not disclosed:

• % of employees entitled to family-related leave (maternity/paternity/parental/family care)
• % of entitled employees who took family-related leave (by gender)
• Return-to-work rate after parental leave (by gender)
• Multi-year comparisons for family-related leave metrics

Incidents, complaints and severe human rights impacts

Incidents of discrimination and severe human rights impacts

KONE had zero incidents that were discrimination or severe human rights related. Similarly to 2023, KONE had zero incidents of child or forced labor reported through its compliance reporting channels in 2024. KONE's target is to maintain zero incidents going forward. KONE also had zero incidents that resulted in court proceedings or fines or concerned the use of child or forced labor or other severe human rights incidents.

Child labour and forced labour incidents

Fines and sanctions

KONE had zero incidents that resulted in court proceedings or fines related to child or forced labor or other severe human rights incidents in 2024.

Scope

These metrics cover incidents reported through KONE's compliance reporting channels, including the KONE Compliance Line which is available for employees, suppliers, distributors, and the public at all times.

Characteristics of non-employees in the undertaking's own workforce

Composition of own workforce

KONE's own workforce consists of three groups:

• KONE employees (permanent employees, fixed-term employees and trainees)
• Agency workers
• Self-employed contractors

The majority of KONE's own workforce are KONE employees. KONE's own workforce spreads across close to 70 countries globally, working in KONE offices, factories and client sites.

Coverage by health and safety management system

KONE's integrated health and safety management system covers 100% of its own workforce, including contractors. Safety management adheres to the ISO 45001 standard, covering KONE's entire own workforce (100%), including contractors.

Reporting and access to systems

KONE Safety Solution (KSS) access:

• Access to KSS is provided to all KONE employees and to non-employees within KONE's workforce with a few exceptions
• Independent contractors and agency workers without a KONE account are required to report to KONE supervisors
• For units with restrictions on providing direct access due to regulations, KONE offers an option to report through local channels
• The KSS app was installed in 2024 on all KONE phones globally

Safety incidents – Non-employees

While KONE reports that its integrated health and safety management system covers contractors at 100%, specific quantitative data on the number of non-employee workers, breakdown by type, or injury statistics for non-employees are not disclosed separately in the excerpts provided.

KONE notes that subcontractor workers report incidents to their supervisors, who then manage these within KSS. Subcontractors do not have direct access to KSS; they communicate issues through local channels which are then forwarded to KSS for analysis.

Policies related to value chain workers

KONE has identified working conditions among value chain workers, particularly health and safety, as a material topic. KONE addresses negative impacts on value chain workers through pre-planning works, enhancing worker competencies, and robust risk management. KONE's expectations for employees and business partners are set out in the KONE Code of Conduct.

KONE Supplier Code of Conduct

Scope: All suppliers, including suppliers' own workforce, suppliers, and third parties

Governance: VP Global Compliance

Key content and principles:

• Sets out ethical business practice requirements expected from suppliers
• Health and safety standards
• Zero tolerance to bribery and corruption
• Internationally recognized labor and human rights standards
• Environmental issues

Public availability: Available on kone.com in over 30 languages

International standards: Aligned with internationally recognized labor and human rights standards

Monitoring implementation:

• KONE requires all suppliers to sign the Code and tracks and monitors signatures
• May terminate contracts for failure to adhere to the Code
• By end of 2024, 87% of KONE's total spend with regular trade suppliers and installation subcontractors was with parties who had signed the Code or equivalent
• Online and on-site supplier human rights assessments conducted to identify potential and actual human rights risks
• Action plans with measurable targets agreed upon with suppliers along with timeline
• Tracking and follow-up process established

KONE Distributor Code of Conduct

Scope: All distributors, including distributors' own workforce, customers, suppliers, and third parties

Governance: VP Global Compliance

Key content and principles:

• Covers topics similar to the Supplier Code of Conduct
• Health and safety
• Corruption and bribery

Public availability: Currently available in seven languages

Monitoring implementation:

• KONE requires all distributors to sign the Code and tracks and monitors signatures
• May terminate contracts for failure to adhere to the Code
• Monthly meetings with various tiers of distributors
• Annual Field Operations assessment tailored to performance, maturity, and growth opportunities
• Annual distributor meeting with top management representatives focusing on safety, quality, operations, and business

KONE Safety Management Framework

Scope: Workers of KONE's value chain

Key content and principles:

• Integrated into KONE's Global Management System
• Follows ISO 45001 standard on occupational health and safety management systems
• Extended to workers in the value chain

International standards: ISO 45001

Monitoring implementation:

• Health and safety performance of subcontractors monitored daily as allowed by local law and contracts
• Data gathered into KONE Safety System (KSS) from internal and external operations
• Subcontractor near misses, moderate and serious injuries, and fatalities reported monthly to Executive Board
• Routine health and safety performance reviews in global and local management meetings
• Certified health and safety management system ensures external evaluation of risk mitigation processes

KONE Human Rights Policy

Scope: Value chain workers (in addition to own workforce)

Key content and principles:

• Details KONE's role, objectives and responsibilities with respect to human rights commitment for value chain workers

Human rights due diligence:

• Regular human rights impact assessments to identify risks within organization and supply chain
• Scope considers risks in upstream and downstream value chain
• Online and on-site supplier human rights assessments conducted
• Dedicated supplier sustainability team established in 2024 to develop and implement human rights due diligence
• Collaboration with suppliers and stakeholders to prevent potential adverse effects and mitigate adverse impacts
• Third-party due diligence tool manages parties representing significant portion of spend, customers and third parties based on risk criteria
• Tool manages through five stages: onboarding, risk assessment, due diligence, risk mitigation and monitoring
• Adverse findings on human rights flagged to relevant contract owner or category manager

International standards: Aligned with international human rights standards; reference to UNGPs and OECD guidelines indicated in disclosure requirement mapping

Anti-Bribery and Corruption (ABC) Policy

Scope: Employees and value chain (through supplier/distributor codes)

Key content and principles:

• Zero tolerance towards bribery and corruption
• Prohibited arrangements include direct and indirect bribery, facilitation payments, excessive gifts and hospitality, inappropriate donations and sponsorships
• Outlines third-party risks
• Risk-based approach towards prevention of bribery and corruption

Public availability: Available internally and externally on kone.com in over 30 languages

International standards: Aligned with United Nations Convention against Corruption

Monitoring implementation:

• Mandatory ABC e-learning courses assigned to all employees including Executive Management (95% completion for all employees, 98% for at-risk functions, 100% for Board and Executive Management)
• Frontline compliance risk assessments and localized programs
• New anti-bribery and corruption clause incorporated in global customer contract templates in 2024
• Systematic screening of target entities during mergers and acquisitions
• New conflict of interest declaration tool integrated into HR system in 2024
• Suppliers held to same standards through KONE Supplier Code of Conduct

Taking action on material impacts on value chain workers

Supplier engagement and continuous dialogue

Scope: Upstream value chain (suppliers and subcontractors)

Actions:

• Continuous one-to-one dialogue with suppliers
• Trade fairs, steering group meetings, supplier workshops
• Annual supplier day for selected strategic suppliers
• Supplier assessments including audit
• Annual supplier excellence certification program (Supplier Maturity Certification Program)
• Monitoring of high-risk suppliers
• Annual supplier survey
• Supplier quality audit and performance assessment

Expected outcomes/KPIs:

• Supplier quality audit and performance assessment results
• Annual supplier survey results
• Monitoring outcomes for high-risk suppliers

Climate and emissions reduction actions in value chain

Scope: Upstream value chain (Scope 3 Category 1: purchased goods and services)

Actions (from 2025):

• Identified suppliers accounting for majority of Scope 3 emissions from purchased goods
• Active collaboration with suppliers including:
  • Continuous dialogue with suppliers
  • Emissions reporting development
  • Emission reduction targets setting
  • Supplier trainings
• From 2025 onwards: measurement of supplier commitment in reducing CO2 emissions

Links to targets: Science-based targets for Scope 3 emissions reduction; compatible with limiting global warming to 1.5°C in line with Paris Agreement

Distributor and agent engagement

Scope: Downstream value chain (distributors and agents)

Actions:

• Daily interactions, account planning
• Regular country visits and distributors' meetings
• KONE tools provision
• Reward programs
• Business development initiatives

Expected outcomes/KPIs:

• Monitoring of sales-related activities
• Direct feedback from distributors

Compliance and grievance mechanisms

Scope: Full value chain (suppliers, subcontractors, distributors, agents)

Actions:

• KONE Compliance Line available to all value chain workers

Links to policy: Human rights policy commitments; due diligence policies on ILO Conventions 1-8

Research and innovation partnerships

Scope: Value chain stakeholders

Resources allocated:

• R&D expenditure 2024: EUR 43.1 million (sustainability-linked)
• Includes development of new generation regenerative drives
• Continuous investment in systems and tools for operational efficiency

Actions:

• Participation in large-scale research projects (e.g., Veturi four-year innovation program, co-funded with Business Finland)
• Collaboration with customers and partners on climate change and urbanization challenges

Time horizon: Four-year program (Veturi)

Note: While specific actions and engagement mechanisms are described, quantified financial or human resources allocated specifically to value chain worker impact actions (beyond R&D and supplier engagement processes) are not disclosed. Timeframes for most actions are not specified.

Taking action on material impacts on consumers

Management system and compliance

Integrated management system (ISO certifications)

• Action: Onboarding of further KONE units under KONE group certificates (OneISO) for quality (ISO 9001), environment (ISO 14001), occupational health and safety (ISO 45001) and lifts directive (2014/33/EU)
• Scope: Global operations (all KONE units)
• Current coverage: 90% of employees under ISO 9001, 87% under ISO 14001, 68% under ISO 45001
• Purpose: Harmonize management practices globally and ensure compliance with relevant standards and KONE operating model
• Resources: Non-financial - certification processes and management system integration

Product development and safety enhancements

Product lifecycle safety integration

• Action: Systematic hazard identification in product development process covering full product life cycle
• Scope: Own operations (product design and manufacturing)
• Outcome: Safety embedded before market introduction, hazards minimized to acceptable levels

Regenerative drive technology (DX Class elevators)

• Action: Manufacturing elevators equipped with regenerative drive that recovers energy
• Scope: Own operations and downstream (product offering)
• Links to: EU Taxonomy-aligned activities 3.6 and 4.1
• Outcome: Energy efficiency and reduced environmental impact

KONE 24/7 Connected Services

• Action: Intelligent predictive maintenance through cloud connection providing constant stream of data for predictive decisions
• Scope: Downstream value chain (installed equipment)
• Technology: Advanced analytics determines if issues are critical or can be addressed during scheduled maintenance
• Links to: EU Taxonomy activity 4.1 'Provision of IT/OT data-driven solutions'
• Outcome: More efficient maintenance, prevention of disruption

Modernization solutions

• Action: Extending product lifetime through service and modernization, upgrading or replacing existing equipment with solutions meeting latest safety standards
• Scope: Downstream value chain (installed base)
• Links to: EU Taxonomy activity 5.1 'Repair, refurbishment and remanufacturing'
• Purpose: Prolong product life cycle with upgrades in energy efficiency, safety, and visual appearance

Escalator video monitoring system (pilot)

• Action: Piloted escalator video monitoring system in 2024 to automatically detect unsafe passenger behavior
• Scope: Downstream (equipment in use)
• Time horizon: Pilot phase in 2024; extension to elevators in progress
• Features: Audio-visual guidance for safer behavior; records observations for insights
• Outcome: Targeted approach to improve end-user safety

Process improvement initiatives

Lean Six Sigma and continual improvement projects

• Action: Various product development and continual improvement initiatives applying Lean Six Sigma or similar methodology
• Scope: Own operations and downstream
• Scale: More than 2,000 DMAIC (define, measure, analyze, improve, control) or change request (CR) projects initiated during reporting period
• Focus: Share of projects focusing on end-user safety improvements
• Input sources: KONE Front Lines using Quality Issue Management (QIM) process

Safety communications and education

Customer and public safety education

• Action: Product owner documentation, hazard warning signs, and information about correct equipment use provided at installation completion
• Scope: Downstream (customers and building owners)
• Resources: Training materials and documentation

Safety awareness campaigns

• Action: Safety awareness campaigns for equipment users in cooperation with customers; safety promotion videos published in 2024
• Scope: Downstream (end-users and general public)
• Materials: Two new end-user safety promotion videos for safe use of elevators and escalators, available freely for customers and public
• Special focus: Targeted materials for children including safety playbook and safety mascots (Bob and Max) visiting shopping centers, kindergartens, and customer premises
• Availability: Materials available on kone.com

Standards development participation

ISO 8100 standard series participation

• Action: Contributing to development of national and international standards improving safety and accessibility for lifts and escalators
• Scope: Industry-level (downstream impact)
• Focus: ISO 8100 standard series to provide globally recognized requirements for safe design, installation, maintenance, and operation
• Resources: Technical expertise and participation in standards bodies

Maintenance and service quality

Preventive maintenance programs

• Action: Preventive maintenance methods for elevators, escalators, and automatic doors
• Scope: Downstream (installed equipment)
• Resources: Comprehensive training, coaching and mobile tools for maintenance technicians
• Methods: All installation, service and modernization methods defined and risk assessed with user and third-party risks considered

Field operational enablers (2024 targets)

• Action: Targets set since 2020 with increasing numeric goals for all Frontlines to ensure high standards in equipment maintenance
• Scope: Global operations (all Frontlines)
• Time horizon: Annual targets (2024 reported)
• Specific 2024 targets:
  • Modular based maintenance (MBM) visits completion >98%
  • MBM audits completion by KONE supervisors: 4 audits/supervisor/month
  • 24/7 Connected Services need completion >98%
• Links to: Material impact of equipment reliability and user safety

Incident management and remediation

Retrofit process

• Action: Retrofit process to address identified actual or potential safety risks, with customer/industry notification of known defects subject to product recall and repairs
• Scope: Downstream (installed equipment)
• Sources: User incidents, near misses, quality/warranty claims, QIM tickets, audits, third party inspections, technical callouts
• Resources: Close collaboration with local authorities when required

Incident management process

• Action: Application of incident management process when incidents involving KONE equipment users occur
• Scope: Downstream
• Tracking: Data recorded in KSS (excluding KONE Americas) and analyzed to inform preventative actions
• Outcome: Minimize recurrence of similar issues; tracking near misses enables proactive risk addressing

Management accountability and oversight

Leadership safety engagement targets (global)

• Action: Global target of at least 12 management workplace visits per leadership team member and one safety promotion event or meeting per 2,000 units in service
• Scope: All operations
• Purpose: Reinforce consumer and end-user safety at every level
• Monitoring: Unit-level management meetings closely monitor progress
• Links to: Zero-injury vision and broader safety objectives

Governance and reporting

Annual budget planning

• Action: Unit annual budget planning defining unit budget, objectives, targets, and action plan
• Scope: All units
• Time horizon: Annual
• Inputs: Stakeholder needs/expectations, regular unit performance reviews, Area Quarterly Business Review
• Links to: Financial and non-financial targets including safety objectives

Incidents of corruption or bribery

Confirmed incidents

KONE does not explicitly disclose the number of confirmed incidents of corruption or bribery in 2024. However, the company reports receiving 63 fraud or corruption-related compliance reports in 2024 out of a total of 261 compliance reports received.

Convictions and fines

In the Appendices section, KONE declares:

No specific information is provided regarding convictions, legal decisions, or fines paid for violations of anti-corruption/anti-bribery laws.

Disciplinary actions

Of the 239 compliance cases closed in 2024, 98 were either substantiated or partially substantiated. Disciplinary actions in those cases ranged from coaching discussions to termination of employment. 92 employees were dismissed or resigned as a result of the investigations.

While not all of these dismissals were specifically for corruption or bribery (the 239 cases covered various Code of Conduct violations), the company does not provide a breakdown by violation type.

Contracts terminated

No information is disclosed regarding contracts with business partners terminated or not renewed due to corruption or bribery.

Investigation and speak-up procedures

KONE maintains the KONE Compliance Line, a confidential reporting channel available 24/7 for employees, suppliers, distributors, and the public worldwide. It is operated by an independent third party and is accessible via phone and/or web in over 30 languages. Reports can be made anonymously where permitted under data protection laws.

The Compliance Line received 33% of the total 261 compliance reports in 2024. KONE investigates reported concerns independently, objectively and in a timely manner by a dedicated, impartial compliance team. When a Code of Conduct violation is established, relevant functions agree on remedial steps based on the facts of the case and local law.

KONE prohibits retaliation against anyone who reports a Code of Conduct violation in good faith, as clearly stated in its Code of Conduct, Supplier and Distributor Codes of Conduct, and training materials.

Political influence and lobbying activities

Materiality assessment

Based on KONE's double materiality assessment (DMA), political engagement and lobbying activities were assessed as not material to the company.

The materiality assessment table shows:

Engagement with trade associations and standardization forums

While political engagement and lobbying were not identified as material, KONE engages with trade associations and standardization forums focused on industry standards, practices, and safety objectives:

• KONE is an active member of the European Lift Association (ELA), where actual incident data from multiple original equipment manufacturers (OEMs) and industry associations is collected and analyzed for safety improvement purposes.

• In the Americas, KONE supports the Elevator and Escalator Safety Foundation through its industry trade association.

• KONE participates in and contributes to the development of national and international standards to improve safety and accessibility for lifts and escalators, including the ISO 8100 standard series.

These memberships and engagements are focused on technical standardization, safety promotion, and industry best practices rather than political lobbying activities.

Business conduct policies and corporate culture

KONE has identified corporate culture, protection of whistle-blowers, and prevention of corruption and bribery as material topics within business conduct. The company's culture is built on safety, quality, sustainability, and KONE values: care, customer, collaboration, and courage.

KONE Code of Conduct

Policy name: KONE Code of Conduct

Scope: Own workforce and all KONE companies

Approval and oversight: Executive Board

Key content and principles:

• Forms an integral part of KONE's company culture and is the foundation of its ethical business practices
• Addresses conflicts of interest, corruption, competition compliance, third-party due diligence, human rights, fraud and theft, and how to report violations
• Emphasizes KONE's non-retaliation policy: no form of retaliation is tolerated against anyone who has made a compliance report in good faith
• Requires compliance with applicable laws and regulations to maintain high environmental standards across KONE's operations, suppliers, and customers
• Available in over 30 languages
• A revised version was published in 2024

Public availability: Available on kone.com

International standards alignment: As a committed participant of the United Nations Global Compact, KONE upholds its ten principles on human rights, labor, environment, and anti-corruption

Monitoring implementation:

• In 2024, KONE assigned an annual, mandatory Code of Conduct e-learning for all employees
• The refreshed e-learning course is a 20-minute online module that includes real-life scenarios covering topics such as corruption and fraud, conflicts of interest, gifts and hospitality, how to apply the Code, and how to report actual or potential misconducts
• All new joiners at KONE are required to complete the most recent Code of Conduct e-learning
• In 2024, 95% of employees (65,673) completed the training; 98% of employees in at-risk functions (37,464) completed the training; 100% of the Board of Directors and Executive management (21) completed the training
• KONE extended the 2024 Code of Conduct training to the Board of Directors
• Refreshes and assigns key compliance e-learnings on a regular basis, ensuring each year one mandatory compliance training is rolled out covering all KONE employees, Executive Board members included

Anti-Bribery and Corruption (ABC) Policy

Policy name: Anti-Bribery and Corruption (ABC) Policy

Scope: Own workforce

Approval and oversight: Executive Board

Key content and principles:

• Published in 2023 to provide guidance to employees on how to deal with risky ABC situations
• States KONE's zero tolerance towards bribery and corruption
• Explains prohibited arrangements including direct and indirect bribery, facilitation payments, excessive gifts and hospitality, and inappropriate donations and sponsorships
• Outlines third-party risks
• Describes KONE's risk-based approach towards the prevention of bribery and corruption
• Gives examples of practical risk situations that employees should look out for
• Provides guidance on how to report any suspected violations
• Available in over 30 languages

Public availability: Available on kone.com

International standards alignment: Aligned with the United Nations Convention against Corruption

Monitoring implementation:

• Accompanied by mandatory ABC e-learning courses for all KONE employees in 2023, including Executive Management
• Two versions issued comprising different risk scenarios for staff and operatives
• Both versions cover the definition of corruption and bribery, KONE's zero-tolerance policy, and provide guidance on preventing, detecting, and responding to corrupt business practices
• By year end 2023, 85% of all active KONE employees (close to 54,000 completions) had completed the training; 86% of employees in functions with higher risk for bribery and corruption had completed the training
• The ABC e-learning is part of onboarding and assigned to all new employees
• Separate targeted training to frontlines and corporate functions on anti-bribery and corruption as well as gifts and corporate hospitality continued during 2024
• KONE is planning to reissue the ABC training annually to at-risk functions for bribery and corruption
• KONE conducted a comprehensive global anti-bribery and corruption risk assessment in 2021, identifying procurement, sales, and marketing to have an elevated risk
• Global instructions on gifts and corporate hospitality issued in 2022 and continued implementation in 2024
• Cross-functional fraud working group actively identifies fraud risks and implements controls to mitigate those risks
• In 2024, KONE created a new conflict of interest declaration tool integrated into KONE's HR system

Global Delegation of Authority Policy

Policy name: Global Delegation of Authority Policy

Scope: Own workforce

Approval and oversight: Executive Board

Key content and principles:

• Defines when matters need to be escalated to Executive Board Members, CEO or Board of Directors

Supplier Code of Conduct

Policy name: KONE Supplier Code of Conduct

Scope: All suppliers, including suppliers' own workforce, suppliers, and third parties

Approval and oversight: VP Global Compliance

Key content and principles:

• Sets out the ethical business practice requirements that KONE expects from suppliers
• Includes health and safety, zero tolerance to bribery and corruption
• Sets standards KONE requires from suppliers in terms of internationally recognized labor and human rights, and environmental issues
• Requires suppliers to comply with all relevant environmental laws and KONE requirements, secure necessary permits, and manage materials, energy, and emissions effectively
• Mandates KONE's suppliers to provide employees with a whistleblowing channel for reporting violations
• Available in over 30 languages
• Includes an extensive chapter dedicated to anti-bribery and corruption

Public availability: Available on kone.com

Monitoring implementation:

• KONE tracks and monitors signatures of the Codes
• KONE may terminate contracts for failure to adhere to the Codes
• According to KONE purchasing policy, all KONE suppliers are required to agree to and sign the Supplier Code of Conduct and demonstrate compliance with the behaviors expected by KONE
• By the end of 2024, 87% (2023: 86%) of KONE's total spend with regular trade suppliers and installation subcontractors was with parties who had signed KONE's Supplier Code of Conduct or equivalent
• Deviations from this requirement may be permitted if the supplier's own Code of Conduct is verified and deemed to align with KONE's standards, subject to approval by the legal department
• Human rights questionnaires directed to suppliers address the whistleblowing channel requirement

Distributor Code of Conduct

Policy name: KONE Distributor Code of Conduct

Scope: All distributors, including distributors' own workforce, customers, suppliers, and third parties

Approval and oversight: VP Global Compliance

Key content and principles:

• Covers topics similar to the Supplier Code of Conduct
• Emphasizes KONE's non-retaliation policy against anyone who reports a concern in good faith
• Currently available in seven languages
• Mandates distributors to provide employees with a whistleblowing channel for reporting violations

Monitoring implementation:

• KONE requires all of its distributors to sign the Codes and tracks and monitors the signatures
• KONE may terminate contracts for failure to adhere to the Codes
• KONE ensures that the latest version of the distributor Code of Conduct has been signed by active KONE distributors
• KONE conducts annual distributor training sessions, covering essential topics such as sanctions, bribery, corruption, and human rights, conducted during 2024
• In 2024, KONE revised its distributor annual due diligence questionnaire and included more detailed questions on bribery and corruption, as well as working conditions
• Human rights questionnaires directed to distributors address the whistleblowing channel requirement

Human Rights Policy

Policy name: KONE Human Rights Policy

Scope: Own operations and value chain (employees and workers across the supply and delivery chain, and end-users)

Key content and principles:

• Details KONE's role, objectives and responsibilities with respect to its human rights commitment
• In relation to end-users, acknowledges that safety is a shared responsibility that extends to all stakeholders, including end-users
• Reviewed annually

Public availability: Available on kone.com

International standards alignment: KONE is committed to respecting and endorsing internationally recognized labor and human rights standards in its operations and across the value chain. The policy aligns with The United Nations Guiding Principles on Business and Human Rights (UNGPs)

Monitoring implementation:

• Human rights working group, consisting of members from all areas of KONE, monitors national and international policy developments to ensure compliance with regulatory requirements and UNGPs standards
• Any human rights issues can be escalated to the human rights working group, reporting to the Global Compliance Committee
• KONE has a human rights due diligence process, consisting of impact assessments, third party due diligence, supplier screenings and internal assessments and surveys
• In 2024, a dedicated supplier sustainability team was established to develop and implement KONE's human rights due diligence
• Online and on-site supplier human rights assessments were conducted to identify potential and actual human rights risks in KONE's supply chain

Reporting mechanisms and whistleblower protection

Mechanism: KONE Compliance Line

Scope: Available for employees, suppliers, distributors, and the public (including consumers and end-users) worldwide

Key features:

• Confidential reporting channel, available 24/7
• Operated by an independent third party
• Accessible via phone and/or web in over 30 languages
• Reports can be made in the reporter's native language and can be anonymous where permitted under data protection laws
• Reports can be submitted on a range of topics related to Code of Conduct violations including fraud, theft, corruption, harassment, conflicts of interest, human rights, environment, and safety
• KONE has implemented the requirements set forth by local implementations of the EU Whistleblowers Directive (EU 2019/1937) in KONE's operating locations
• Where required by local whistleblower laws, KONE subsidiaries have local reporting lines and processes

Public availability: Highlighted on kone.com with clear instructions on how to report suspected violations. Also highlighted in customer contract templates

Monitoring implementation:

• KONE investigates reported concerns independently, objectively and in a timely and professional manner by a dedicated, impartial KONE compliance team, free from any conflicts of interest
• Case management system integrates web, phone, and other reporting channels to allow for a secure and confidential system for managing reports and follow up
• KONE consistently monitors reports by area, type, country, and other criteria, looking for any trends or other meaningful information
• Key compliance cases and statistics on all compliance cases are reported to the Global Compliance Committee on a quarterly basis
• Summary of key compliance cases and statistics is provided to the Audit Committee and external auditors annually
• In 2024, KONE received a total of 261 compliance reports, of which 33% were received through the Compliance Line
• 239 cases were closed in 2024; of the cases closed, 98 were either substantiated or partially substantiated
• 92 employees were dismissed or resigned as a result of the investigations
• KONE conducts periodic surveys and assessments to test the awareness level of its reporting channels and the willingness of employees to report such concerns
• To the extent allowed by local law, KONE maintains the confidentiality of reporters' identities to further reduce the risk of retaliation
• All reports are kept confidential on a strict need to know basis
• Access to the reporting system is limited to dedicated trained individuals tasked with handling compliance reports

Other relevant policies mentioned

• Quality, Health and Safety statements: Provide ambition and objectives applicable to all KONE units. Publicly available on kone.com
• Environmental Policy Statement: Emphasizes KONE's pledge to reduce GHG emissions and minimizing the environmental impacts of its solutions through durable, energy-efficient products and maintenance offerings
• Codes, standards and regulations: Set technical and operational requirements for KONE's solutions and services throughout their entire life cycle
• KONE Codes and Standards Policy: Sets out KONE's expectations for compliance by its units and employees with applicable codes, standards and regulations concerning KONE solutions and services
• KONE Customer Solutions Engineering Policy: Outlines key principles to ensure that the engineering work for customer deliveries is safe, high-quality, and complies with applicable laws, codes, and standards
• Competition Compliance Policy: Addressed in Code of Conduct e-learning; competition compliance e-learning (refreshed in 2022) is assigned as mandatory training to all new staff and supervisors at KONE

Corporate culture initiatives

• KONE's culture is built on the core principles and values: care, customer, collaboration, and courage
• During 2024, KONE continued developing its culture to ensure it supports strategic targets
• Inclusivity is deeply embedded in KONE's culture and values
• KONE has three Employee resource groups (ERGs), independently led by voluntary employees, each with a sponsor from the organization at the executive board level
• KONE has embedded the values as a criterion in its annual performance evaluation which indirectly links to KONE's global short-term incentive program
• Corporate culture related KPIs are included in KONE's Sustainability program monitoring, such as values, ethics, and compliance