Sustainability Report

Kiilto and corporate sustainability

The core of our business lies in the creation of solutions meeting customer needs, with the goal of being the industry’s best partner and the first choice for customers as well as the environmental leader of our field. For us, corpoate sustainability means fostering a good working environment, well-being, safety, top level know-how and ethical ways of operation. It is committing to the future and generating added value for all stakeholders. This involves a long-term approach, creativity, and sustainable product and operational management. In addition to our own operations and the close stakeholder groups, the effects can be seen in the development of the whole industry.

Business sustainability is an integral element of overall quality, based on our aim to generate responsible solutions for our stakeholders. Sustainablility also involves the aim to exceed legislative requirements, be a pioneer, lead by example and engage in partnerships for the common good.

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Strategic management of corporate sustainability

Strategic management is our key business process. It guides the drafting of our strategy, and all our processes, for fulfilling our strategic and overall quality goals and stakeholder expectations.

Business processes and strategy drafting are integral to corporate sustainability. A strategic process consists of continuous work extending into all activities. Our strategy process is led at the senior level by the management group, which meets once a month.

In addition, the management group engages in operational assessments in regular process reviews and management quality, environmental and safety reviews. It also assesses the solutions implemented and engages in development activities based on reported information.

The key aspects of risk management include assessing damage risks related to assets, operational disruptions and operational and product responsibilities. Protection against such risks is based on insurance policies and predictive risk assessment and management measures provided by a certified quality system.

Environmental aspects in the sustainability management

Environmental aspects play an important role in strategic decision making. We have made a Promise to the Environment that is divided into four areas covering our all operations. All areas have an international project group that evaluates and advances the actions, investments, projects and initiatives targeting to achieve the set environmental goals. The project groups report to a steering group once in a quarter minimum.

 

Management process and risk assesment

Management groups direct and monitor organisational activities process performance at executive level, as well as monitoring the achievement of strategic goals and fulfilment of stakeholder expectations. These management groups report to the Boards of their respective companies. Management methods are assessed and developed through tools such as employee surveys, audits and self-assessments.

 

Kiilto Management

Risk assessment as a part of the management process

We assess our business risks each year, when drawing up our business strategies and budgets, and reviewing our internal expert working groups. Boards of Directors within group companies assess risks and their management when drawing up the annual report.

Standards

We use standard-based quality, environmental and safety systems, and corporate responsibility programmes to monitor our success in this. The overall quality and all the related elements are summed up in the annual strategies, goals and action programme of each business unit and department. The key idea is an overall improvement on the basis of shared values. We are actively involved in developmental activities within our sector, anticipating forthcoming changes in legislation and regulation and participating in collaboration between experts and official bodies.

Management systems

 

Kiilto Finland: ISO 9001, ISO 14001, ISO 45001, ISO 13485

Kiilto Denmark: ISO 9001, ISO 14001, ISO 22716, ISO 13485

Kiilto Sweden: ISO 14001

Kiilto Russia: ISO 9001

Operating policy and guiding principles

Kiilto is a growing, internationally operating Finnish family-owned company. We develop, produce, distribute and sell chemical industry products, solutions and services. We operate in four business areas: construction, industrial adhesives and fireproofing, professional hygiene and consumer goods.

Our operations are based on the key principles of environmental leadership, closeness, and commitment to the future. Our common goal is to create the best possible customer experience and high quality, sustainable and responsibly produced solutions. We engage in continuous dialogue with our stakeholders in order to develop our operations.

We are committed to anticipating, preventing and mitigating risks posed by our operations, products and services. We comply with all statutory requirements, official regulations and guidelines. We are committed to maintaining and developing our operating system to keep it effective and efficient. Kiilto sets, monitors and implements annual quality, safety and environmental goals for ensuring the continuous improvement of operations.

Kiilto’s employees are professionals who act in accordance with their quality, safety, social and environmental responsibilities. We require that our suppliers and other partners comply with the same principles.

All Kiilto employees understand their responsibilities and objectives, are responsible for the quality of their work, and contribute to operational development.

Kiilto’s management and entire personnel are committed to continuously improving the company operations and providing the conditions for achieving the goals.

For further information on the principles behind corporate sustainability at Kiilto, and the company’s commitments to programmes defining such sustainability, see the description of each sustainability theme: environmental sustainabilitysocial sustainability and financial sustainability.

In addition to the themes mentioned, product safety has an important role in our sustainability work. We communicate about product safety separately here. 

Our material topics

We defined our key material topics in a corporate responsibility process completed in 2018. The working group included representatives from sales, marketing, HR administration, financial administration and senior management. Its work was based on the GRI Standards framework. The stakeholder perspective was based on the expertise of staff working at the customer interface. This involves our first materiality assessment based on the Standards framework. The assessment differs from materiality analyses in previous reports in terms of its impact assessment in particular. The Group companies Kiilto Oy, KiiltoClean Oy and Kiilto Family Oy are involved in defining material topics: the scope of the presented material themes is limited by the companies’ business activities and represent the group’s key financial, social and environmental impacts.

As a result, corporate sustainability at Kiilto is divided into three key areas, in the following order in terms of their impact on stakeholders: environmental, social and financial sustainability. The report covers years 2018, 2019 and 2020 and unlike earlier reports, it now involves data also from Kiilto international companies. In environmental sustainability key figures, Intermedius and Kiiltoplast Oy are not included.

Stakeholder activities

We engage in systematic and continuous dialogue with our stakeholders through a range of channels. In this way, we can develop our products, and our services and other functions, into the best possible fit with our stakeholders. In addition, we expect our partners to uphold responsible practices. On the other hand, dialogue provides stakeholders with a basis for fulfilling their own responsibility goals.

Kiilto Stakeholders

Identifying and responding to the needs of stakeholders is a key element of corporate responsibility. We use means such as customer and consumer surveys to collect information on our corporate customers and consumers’ expectations. Face-to-face meetings and customer training are also important sources and distribution channels for information. We use a range of key metrics, such as number of claims and speed of response to customer feedback, to measure customer satisfaction.

Annual development discussions are a key tool for analysing employees’ expectations and needs. In addition, we use employee surveys to assess employee wellbeing, working capacity and expectations towards the employer.

We have defined key indicators on the fulfilment of stakeholder expectations and our stakeholder goals. We monitor these indicators when working and reporting on the related topics, in strategy reviews, and during process and management evaluations. Our contact methods are described in our quality system guidelines and operational and process descriptions.

Read more about our stakeholder cooperation on our newsroom.

Material topics

Environmental responsibility

Kiilto’s environmental sustainability comprises three special topics related to the company and its stakeholders:

Product and material sustainability

  • Growth in sale of products with safety certification

Material efficiency

  • Waste reduction
  • Emission reduction
  • Waste recovery
  • More efficient water consumption
  • Biobased raw materials
  • Boosting of circular economy

Energy efficiency

  • Energy consumption
  • Renewable energy production
  • Customers’ energy efficiency
  • Logistics (incl. customer meetings)

Why are these so important to us?

As an industrial company, Kiilto is part of the global network through which we have been able to build our own wellbeing and society in its current form. We are also part of the excess carbon which is impacting on the future of our planet. By improving our energy and material efficiency, we are playing our part in combating climate change and promoting sustainable development. We promote the circular economy and use bio-based raw materials to decrease our use of non-renewable natural resources, while reducing our carbon footprint by lowering waste amounts and using our production waste.

As a part of Our Promise to the Environment, we have set an ambitious goal of having all our company operations carbon neutral by 2028. We will also reduce the use of fossil and virgin packaging material every year and use less fossil and virgin raw material and reduce waste every year. In addition to our own measurement and regular follow-up of achieving the goals, we have set them to a bigger framework by identifying and combining them with relevant UN Sustainable Development Goals (SDG). Read more here.

Kiilto is part of chemical industry and its product safety is subject to particular scrutiny by stakeholders. Kiilto’s adhesives, flame retardants, building supplies, detergents and hygiene products can be found in hundreds of thousands of households, workplaces and other built environments. Kiilto is strongly present in the everyday work of construction, cleaning and healthcare professionals.

By reducing our use of solvents in production and increasing sales of our safety-classified products, we are improving occupational and customer safety in our own working environment and customers’ premises.

Overall safety improvements in Kiilto’s developing markets are another sign of responsible products and services! Through our own actions, we can impact on the safety of chemical industry products in circumstances where product safety could improve.

Product safety and quality monitoring are key elements in Kiilto’s supply chain. Good supply chain management includes close cooperation with the customer and product development process:

Kiilto Supply chain

The impacts of our environmental sustainability work

We impact on people’s everyday lives. By creating a safer and cleaner built environment, we enable patient and occupational safety, and enjoyable and comfortable usage of spaces.

Energy efficiency

  • We combat climate change.
  • We boost economical production.

Material efficiency

  • We combat climate change.
  • We support sustainable development.
  • We reduce consumption of non-renewable natural sources.

Product and material sustainability

  • We improve occupational safety (personnel, end users).
  • We improve customers safety (customers, end users).
  • We improve user safety of our solutions.
  • We improve product safety in emerging markets.
  • We build a safer environment.

Read more about our environmental responsibility

Social responsibility

Social sustainability cuts across Kiilto’s activities as an employer. As part of its social environment, Kiilto has a visible impact across the business areas in which it operates. Our special social sustainability topics are:

A safe workplace

  • Prevention of accidents
  • Improving physical and psychological safety

An inspiring working environment

  • Support in different phases in life
  • Good supervision
  • A responsive organisation
  • Wellbeing personnel
  • We follow ethical standards of behaviour and business

Human rights in the value chain

  • An equal work environment
  • Prevention of child labour

Competence development

  • Development of employee competences
  • Development of customer competences
  • Educational colloboration
  • Responsible product information
  • Digital solutions

Why are these so important to us?

As a workplace, Kiilto provides a safe and inspiring environment and an opportunity for continuous personal development. Prevention of occupational accidents and improving safety in the workplace help to motivate employees to give their best performance. Motivated staff are the basis of financial success and added value shared by everyone.

One of our cultural cornerstones is that every Kiiltonian can make a difference. We seek to remain an open, supporting and inspiring atmosphere in order to continuous dialog wit our personnel. We have both continuous processes, such as an idea cahnnel, and shorter campaigns, such as Kiilto Up, to promote the personnels possibilities to have an input to the future business development of Kiilto. We think that providing the possibilities to individuals to pring their ideas forward, we also produce innovativeness that benefits the whole society.

We develop new solutions in an inspired setting; inspiration is based on good management and an organisation that listens. Support in the right place and at the right time improves the everyday work of each and every Kiiltonian and ensures our success going forward. We improve our workers’ employability through competence development and an active training policy. Our goal is that a career with Kiilto provides each and every one of our employees with the potential to succeed. Future Kiilto employees include students. The support we provide in cooperation with their education institutions will be part of our success story for years to come.

The safety of our customers and building users also forms part of Kiilto’s social sustainability. We improve the safety of our products by presenting and marketing our them responsibly. In addition, by developing our customers’ expertise, we can help to improve the safety and comfort of buildings.

Kiilto also faces challenges in its product value chain. To ensure that human rights are implemented at all stages of Kiilto’s business activities, we seek promote high ethical standards and equality in the working environment. In this way, we are creating a fairer world and improving the wellbeing of our personnel.

The impacts of our social sustainability work

A safe workplace

  • We motivate our employees.
  • We boost our production.
  • We generate financial success.
  • We ensure psychologically safe work place for our empolyees.

An inspiring working environment

  • We ensure success of our business.
  • We create new, innovative solutions.
  • We improve our employees’ value on the labour market.
  • We provide digital Code of Conduct training for our empoloyees.

Human rights in the value chain

  • We help to create a fair world.
  • We improve our employees’ wellbeing.

Competence development

  • We improve the safety of our products and services.
  • We grow our sales.
  • We ensure the continuity of our business.
  • We develop our industry.
  • We nurture our future empoloyees.
  • We improve user safety.
  • We improve the safety of residences and building use.

 

Financial responsibility

Every company aims to succeed financially. From the corporate sustainability perspective, it is important to have a vision of what Kiilto’s success will affect, what is our contribution in buildin more sustainable society in our operating countries and how the success can be achieved. Our financial sustainability focus areas are:

Developing our business and growth

  • Value-chain management
  • Growth of industry competences
  • New products and services

Creation of shared value

  • Indirect financial impact
  • Corporate citizenship
  • Tax footprint in emerging markets

Ethical business

  • Development of purchasing and sales
  • Anti-corruption activities

Why are these so important to us?

To enable its future success, Kiilto launches new products and services, and is growing its sectoral know-how. By doing so, Kiilto is reinventing the entire industry and creating wellbeing. Enhancing wellbeing creates a positive cycle, enabling investments in product development, which in turn enhance safety and environmental friendliness in the chemical industry.

Value chain management is critical to the realisation of Kiilto’s vision. Kiilto enhances economic stability within its value chain by creating good business relationships and sharing intellectual capital.

Measurements of shared value include Kiilto’s financial stream, i.e. Kiilto’s direct economic value generated and distributed throughout the surrounding society.

Kiilto is a corporate citizen with wellbeing and ethical practices as its footprint. The company also has a stable and transparent tax footprint in developing countries.

Kiilto creates a basis for financial sustainability by promoting ethically sustainable practices throughout its value chain. Crime and abuse are prevented by developing purchasing and sales activities and through anti-corruption activities, promoting the emergence of more equal societies.

Impacts of Kiilto’s financial sustainability work

Developing our business and growth

  • We increase financial stability within our value chain.
  • We enable product development investments.
  • We improve sustainability of our business.
  • We are reshaping the industry and fostering wellbeing.

Creation of shared value

  • We develop our surrounding environment.
  • We improve our corporate citizenship opportunities through measures such as education.

Ethical business

  • We promote sustainable practices throughout our value chain.
  • We prevent crime.

Value chain

The raw material streams for our products and packaging flow from all over the world and our personnel include dozens of nationalities. Value-chain transparency is a priority for Kiilto in light of its lengthening sub-contractor chains, international production and focus on sustainability. Our materiality analysis process included the value chain in which we operate.

In the chart below we have combined our value chain with our material topics. We have listed the operators in our value chain, in which our material topics have a strong impact:

Raw material suppliersPackage suppliersLogistics and customersEnd usersResidents and users of buildingsSocietyGroup operations
Energy efficiency

Developing our business and growth

Ethical business
Material efficiency

Developing our business and growth

Ethical business
Energy efficiency

Product and service responsibility

Human rights in the value chain

Competence development

Ethical business
Product and service responsibility

Competence development
Product and service responsibility

Competence development
Creation of shared value

Ethical business

Product and service responsibility

Human rights in the value chain
Developing our business and growth

Creation of shared value

Ethical business

A safe and inspiring workplace

Competence development

Energy and material efficiency

Product and service responsibility

Kiilto corporate sustainability in numbers