Trusted manufacturing partner
Annual Report
2
Turnover
780 M€
Personnel
4,000
EBIT
53 €M
Table of contents
Scanfil is a company with strong
culture and values. The company
has earned a reputation for
building long-term partnerships
based on a mutual passion for
success.
Annual review ....................................................3
Scanfil in brief ...................................................3
CEO’s review ....................................................4
Strategy and value creation .......................................5
Customer segments and megatrends ............................. 7
Investor information .............................................8
Financial review ................................................ 10
Board of Directors’ Report ....................................... 12
Key ratios ...................................................... 15
Shares and shareholders ........................................ 17
Sustainability Statement ........................................19
Condolidated financial statements (IFRS) ....................... 115
Consolidated income statement ................................ 115
Consolidated statement of financial position .................... 116
Consolidated statement of changes in equity .................... 118
Accounting principles for consolidated financial statements ...... 119
Notes to consolidated financial statements .....................122
Financial statements of the parent company (FAS) ..............154
Board of Directors’ proposal for
the distribution of profit and signatures .........................165
Auditor’s reports ...............................................166
Corporate Governance Statement ..............................174
Remuneration Report ..........................................181
3
Poland
China
Estonia
Sweden
Finland
Germany
USA
Australia
Malaysia
Scanfil in brief
Scanfil plc is the largest European stock-listed electronics manufacturing
service company in terms of turnover.
The company serves industry-leading customers worldwide in the Industrial,
Energy & Cleantech and Medtech & Life Science customer segments.
Its services include design services, prototype manufacturing, design
for manufacturability (DFM) services, test development, supply chain and
logistics services, circuit board assembly, manufacturing of subsystems and
components, and complex system integration services.
Scanfil’s objective is to grow customer value by improving their products’
competitiveness and reducing time to market. The company aims to be
customers’ primary supply chain and long-term international manufacturing
partner. Scanfil’s longest-standing customer account has continued for
more than 30 years.
Factory network and operating model
Scanfil has global supply capabilities and 11 production facilities across four
continents. On October 3, 2024 Scanfil acquired SRXGlobal and factory
network expanded to Johor Bahru in Malaysia and Melbourne in Australia.
The global network enables lower transportation costs and time, good
market knowledge, and possible benefits from avoiding import-related
costs such as customs.
Scanfil’s factories are self-reliant and responsible for their P&L. They benefit
from the Group’s resources in sales, sourcing, finance, IT and processes.
The operating model enables Scanfil to react quickly to changing customer
needs, obtain competitive purchase prices, reasonable financing costs for
necessary investments, and enable efficient and high-quality operations
through mutually compatible systems and processes.
Personnel
Industrial
Energy & Cleantech
Medtec & Life Science
Turnover
EUR 780 million
47%
34%
19%
35%
8%
5%
3%
4%
11%
15%
13%
4,000
6%
Atlanta, USA
Sievi, Finland
Pärnu, Estonia
Myslowice, Poland
Sieradz, Poland
Suzhou, China
Malmö, Sweden
Wutha, Germany
Åtvidaberg, Sweden
Johor Bahru, Malaysia
Melbourne, Australia
4
CEO’s review
“The first full year at the helm of Scanfil has been exciting.
We navigated a year marked by strategic reorganization,
regional expansion, and financial resilience, achieving
significant milestones despite facing challenges.
In March, we announced updated values, strategy,
customer segments, and financial targets. We are
positioning for growth and aim to balance organic and
inorganic growth. Our strategic changes marked a
significant step towards achieving our ambitious goals
and solidifying our position as a European leader in
the EMS industry. We reorganized our sales into three
customer segments: Industrial, Energy & Cleantech,
and Medtech & Life Science. This reorganization was
designed to enhance sales growth and profitability, with
dedicated sales teams for each segment.
In September, we announced a new regional structure,
which came into force on January 1, 2025. The new
regions are the Americas, APAC, Central Europe, and
Northern Europe. The change should enable faster
decision-making and drive organic and inorganic growth
by bringing decision-making closer to the region and
factories.
In October, we expanded our global footprint by acquiring
SRXGlobal Pty Ltd., enhancing our capabilities and
market reach. SRX has two well-situated factories in
Melbourne, Australia, and Johor Bahru, Malaysia. The
acquisition brings us new customers and allows our
existing customers to expand their operations with us
in the new areas of the fast-growing Asia Pacific region.
Scanfil navigated a year marked by both challenges
and achievements. Our financial performance faced
headwinds, leading to a revised turnover estimate of EUR
770–780 million and an adjusted operating profit of EUR
53–54 million. The turnover landed at EUR 779.9 million,
a decrease of 13.5% compared to 2023.
Despite these challenges, our commitment to operational
excellence remained steadfast. We achieved an adjusted
operating margin of 6.8%. Excluding full-year impacts
of foreign exchange rates, layoff costs, and material
consignment sales, the full-year operating margin
reached our long-term target of 7.0%.
On the customer side, we continued to focus on winning
new contracts and had a very active year in sales, winning
new projects with a value of EUR 187.5 million in total.
This implies turnover growth for the future. The growth
seems to be led by the Medtech & Life Science segment
with fourth-quarter turnover growth of 7.6% compared
to the same period last year. Turnover for the other two
customer segments was still declining slightly but started
showing signs of stabilization towards the end of the year.
We believe demand will gradually speed up in 2025, and
in the first quarter of the year, we will focus on ramping
up customer projects won in 2024. Our outlook for 2025
in turnover is EUR 780–920 million and an adjusted
operating profit EUR 53-66 million.
Our financial position strengthened, with gearing
reduced to 7.3% and an equity ratio of 55.5%. These
metrics reflect our strong balance sheet. This enables
us to continue to investigate possible M&As and build
our presence in selected geographies and customer
segments.
Looking ahead, we remain focused on our long-term
targets: achieving 10% annual turnover growth, sustaining
an operating profit level of 7–8%, and maintaining a net
debt/EBITDA ratio of ≤1.5. We aim to pay an increasing
dividend of approximately one-third of earnings per
share, reflecting our commitment to delivering value to
our shareholders.
The Board proposed a dividend of EUR 0.24, which is
41% of the earnings per share, to be distributed to our
shareholders. If the Annual General Meeting approves,
it will be 12 years of increasing dividends. The dividend
level will also leave us flexibility for future acquisitions
and other investments.
I extend my gratitude to our dedicated employees,
valued customers, and supportive shareholders for
their unwavering trust and commitment. Together, we
will continue to navigate the evolving market landscape,
leveraging our strengths to drive sustainable growth
and success.”
CHRISTOPHE SUT
CEO
5
Strategy and value creation
Scanfil was founded in 1976. Over the decades, the company has adjusted
its strategy according to the prevailing market situation, but the focus
has remained on manufacturing products containing electronics.
In March 2024, Scanfil updated its values, strategy, and long-term
financial targets. The Geared for Growth strategy is divided into two
main elements: growth and efficiency. The strategy supports the long-
term goals. The company targets an average annual revenue growth
of 10 percent, an operating profit margin of 7-8%, and keeping its net
debt/EBITDA ≤1.5.
Empowered as a value
Empowered is one of Scanfil’s core values. To enable fast and flexible
decision-making at the lower levels of the organization, Scanfil has
divided its business into customer segments and geographic business
segments. The customer segments are Industrial, Energy & Cleantech
and Medtech & Life Science and the geographical business segments
that took effect on 1 January 2025 are Americas, APAC, Central Europe
and Northern Europe.
Growth through acquisitions
Scanfil’s strategy is based on two growth factors: acquisitions and
organic. The new customer segment division supports organic growth
through clear responsibility and customer and industry knowledge.
Scanfil has three main criteria in its acquisition strategy:
1.
The target must have customers that fit into Scanfil’s customer
portfolio. Therefore, the acquired company’s customer base should
not include much consumer business and customer relationships in
the automotive industry. It should bring in new customers, especially
in the fields of energy technology, clean technology, and medical
and life science technology.
2.
It should improve Scanfil’s geographical positioning in areas where
rapid economic growth is expected and should also preferably
serve the growth projects of Scanfil’s existing customers. North
America including Mexico, Southeast Asia excluding China, and
Eastern Central Europe have been identified as areas of interest.
3.
The company to be acquired should have more than 200 employees
and growth potential.
Offering and differentiators
Scanfil offers a full range of electronics manufacturing services, from
prototyping to manufacturing to a complete, fully tested, and packaged
product. In mechanics, Scanfil offers flexible manufacturing means and
expert manufacturing of metal sheets from sub-assemblies to finished
integrated products. One of the company’s key strengths is its ability
to combine electronics and mechanics manufacturing, building high-
quality and technically advanced integrated devices.
Scanfil primarily provides its expertise and services to large and
medium-sized international companies with low or medium volumes
and complex products. In addition, Scanfil selectively serves smaller
growth companies.
Scanfil stands out from its competitors mainly because of its strong
design-driven manufacturing (DDM) capabilities, cost optimization, and
test development. Design-oriented manufacturing is a significant part
of a new product’s early stages of industrialization. Nearly 60% of costs
and price competitiveness are determined at this stage, determining
the components, materials, and manufacturing methods to use. The life
cycle of industrial products can be more than ten years long, and without
redesign, the cost structure remains fairly unchanged. Costs are also
considered in cost optimization, which usually requires at least some
redesign and re-evaluation of manufacturing methods. The need for
cost optimization may be caused by component obsolescence, which
increases prices and reduces availability. Testing is an essential part of
manufacturing, especially for industrial customers whose products have
a long lifespan and high-quality standards. Scanfil offers its customers
testing as a service, where testing has been developed specifically for
the customer’s product.
Business model
Scanfil is a global electronics contract manufacturing company
specializing in industrial customers and low- and medium-volume
production. When purchasing production services from electronics
contract manufacturing companies such as Scanfil, its benefits are mainly
in production economies of scale, materials and components sourcing,
logistics, warranty and repair services, and value-added services such as
product testing, design, and redesign services. Scanfil has approximately
160 active customers and produces approximately 10,000 different
products for different companies each year. The electronics contract
manufacturing business is guided by the utilization rate of machinery
and people and the purchasing power of materials and support services,
such as logistics.
6
Value chain and value creation
In the value chain, an electronics contract manufacturing company can
be a subcontractor to the original equipment manufacturer (OEM), for
example, Tomra, who sells the reverse vending machine to a supermarket,
or Danfoss, who supplies the heat pump for cooling and heating the
building. A contract manufacturer of electronics can manufacture all or
part of their customers’ products, such as a control panel or a component
like a printed circuit board assembly (PCBA).
Value is created through efficient purchasing and manufacturing, where
the utilization rate should be higher than the customer’s own production.
Many customers choose an electronics contract manufacturer,
especially when there is a need to make significant investments in the
manufacturing capabilities of a new product or to expand the production
of an existing product.
Efficiency
Scanfil improves the efficiency of its operations with continuous
improvement methods and the Dream Factory development program,
which develops production technology and processes. Among other
things, the adopted Manufacturing Execution System (MES) and the
harmonization of the machinery base are part of this program. The
availability and price of materials and components are part of the contract
manufacturer’s competitive advantage. Large purchase volumes often
mean better availability and lower pricing. The efficiency of inventory
management improved significantly during 2024.
Segment
focus
Scanfil Way
Strategic Enablers
Culture and People
Growth
Dream
Factory
Productivity Supply chain
excellence
Geographical
expansion
Segment
focus
Offering Acquisitions
Efficiency
Financing Sustainability IT/Data Risk managementM&A Investor relations
7
Customer segments and megatrends
Scanfil has three customer segments that typically have different
business cycles, and therefore, it balances changes in demand. We
have identified Energy & Cleantech and Medtech & Life Science as
high-growth potential customer segments.
Industrial
The customer base consists of industrial and B2B customers. The end
products include, for example, industrial automation systems, self-service
vending machines and lifts.
Driving megatrends
• Industrial automation
• Digitalization
• Urbanization
47%
Energy & Cleantech
The end products included in the segment include energy saving
solutions, electricity distribution and automatic collection and sorting
solutions.
Medtech & Life Science
End products for the segment are, e.g., dental chairs, analyzers, mass
spectrometers and solutions for environmental measuring.
Driving megatrends
• Ageing population
• The increasing needs for healthcare and
technology in emerging markets
• Climate change and need to predict weather phenomena
Driving megatrends
• Energy efficiency, renewable energy production
and solutions for circular economy
• Urbanization and electrification of transport
• Monitoring, controlling and cleaning of water and air quality
34%
19%
8
Investor information
0
300
600
900
20242023202220212020
844
902
780
696
595
Turnover Operating profit & operating profit %, adj. Scanfil share price
EUR million
EUR/share
EUR million
0,0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
20242023202220212020
0.54
0.5 0
0.50
0. 74
0.60
Earnings per share, adj.
EUR
0,00
0,05
0,10
0,15
0,20
0,25
20242023202220212020
0.21
0.1 9
0.1 7
0.23
0.24
Dividend per share
EUR
Board’s proposal
%
Return on investment
0
5
10
15
20
20242023202220212020
15.3
14.6
19.5
19.4
15.4
%
Equity ratio
0
10
20
30
40
50
60
20242023202220212020
45.3
45.3
54.3
53.7
55.5
Net Debt/EBITDA
Ratio
0,0
0,4
0,8
1,2
1,6
2,0
20242023202220212020
0.3 0
0.4 3
0.64
1.36
1.0 9
2
4
6
8
10
1.1.2020 1.1.2021 1.1.2022 1.1.2023 1.1.2024 31.12.2024
%
Operating profit, adjusted
Operating profit %, adjusted
Scanfil plc, EUR OMX Helsinki 25 Index
0
10
20
30
40
50
60
20242023202220212020
40.3
39.1
6.8 %
6.8 %
6.6 %
5.8 %
5.4 %
45.4
61.3
53 .1
1
2
3
4
5
6
7
8
9
Scanfil as an investment
Scanfil is a company with strong culture and values. The company has
been profitable since the beginning. Profitability has made it possible
for Scanfil to invest and secure its future.
Scanfil is its’ customers preferred manufacturing partner and systems
supplier. The company has earned a reputation for building long-term
partnerships based on a mutual passion for success.
Solvent and financially reliable partner
Scanfil is a solvent and financially reliable partner for its customers,
suppliers, shareholders and employees.
Scanfil’s goal is to work in sustainable, long-term cooperation with its
customers. Like its customers, the company operates internationally,
and its customers include numerous significant international automation,
cleantech, recycling and health technology providers, as well as
companies operating in the field of urbanization. Scanfil is one of the
market leaders in the Nordic countries, among the biggest companies
in its sector in Europe, and a household name in the global market.
Long-term targets
Scanfil is aiming for 10% annual turnover growth on average and 7%-8%
operating profit level, while keeping net debt/EBITDA ≤1.5.
Outlook for 2025
Scanfil estimates that its turnover for 2025 will be EUR 780–920 million,
and its adjusted operating profit will be EUR 53–66 million.
The guidance is based on customer forecasts and Scanfil’s normal
forecasting process. The outlook is associated with uncertainty related
to global economic development.
Dividend
Scanfil aims to pay an increasing dividend of approximately 1/3 of the
earnings per share. The level of dividends paid and the date of payment
are affected by the result, financial position, need for capital and other
possible factors.
The Board of Directors proposes to the Annual General Meeting that
a dividend of EUR 0.24 (0.23) per share be paid for a total of EUR
15,645,901.20 for the financial year ending on 31 December 2024. The
dividend matching day is 29 April 2025 and the dividend payment date
7 May 2025. The dividend will be paid to shareholders registered in the
Register of Shareholders maintained by Euroclear Finland Ltd on the
matching date.
Annual General Meeting
Scanfil plc’s Annual General Meeting will be held on 25 April 2025
without a meeting venue using remote connection in real time. More
information www.scanfil.com/agm
Financial publications in 2025
• Interim report for January–March, 24 April 2025
• Interim report for January–June, 17 July 2025
• Interim report for January–September, 24 October 2025
The financial publications are released in Finnish and English languages.
They will be available on the company’s website at scanfil.com.
10
Financial review
11
TABLE OF CONTENTS
BOARD OF DIRECTORS’ REPORT .............................................................................
Key ratios ............................................................................................................................. 15
Shares and shareholders .................................................................................................17
Sustainability statement ................................................................................................. 19
CONSOLIDATED FINANCIAL STATEMENT, IFRS .................................................. 115
Consolidated income statement .................................................................................115
Consolidated statement of financial position ..........................................................116
Consolidated statement of cash flow ......................................................................... 117
Consolidated statement of changes in equity .........................................................118
Accounting principles for consolidated
financial statements ........................................................................................................ 119
Notes to consolidated financial statements ............................................................ 122
1. ITEMS AFFECTING THE RESULT
1.1 Turnover and details of business segments ................................................. 122
1.2 Other operating income ....................................................................................126
1.3 Use of materials and supplies .......................................................................... 126
1.4 Employee benefit expenses .............................................................................126
1.5 Other operating expenses ................................................................................128
1.6 Income taxes ........................................................................................................129
1.7 Earnings per share ............................................................................................... 131
2. NET WORKING CAPITAL
2.1 Net working capital ..............................................................................................131
2.2 Inventories ............................................................................................................132
2.3 Trade and other receivables .............................................................................132
2.4 Trade and other liabilities .................................................................................. 133
3. NON-CURRENT ASSETS
3.1 Goodwill ................................................................................................................. 134
3.2 Other intangible assets ......................................................................................135
3.3 Property, plant and equipment ......................................................................... 137
3.4 Right-of-use assets ............................................................................................138
3.5 Depreciation, amortisation and impairment .................................................140
3.6 Acquired businesses ...........................................................................................141
4. CAPITAL STRUCTURE
4.1 Cash and cash equivalents ............................................................................... 142
4.2 Financial income and expenses ...................................................................... 142
4.3 Financial liabilities ...............................................................................................143
4.4 Book values and fair values of financial assets and liabilities ..................143
4.5 Derivative financial instruments and hedge accounting ..........................144
4.6 Hierarchy of fair values .......................................................................................146
4.7 Financial risk management ............................................................................... 147
4.8 Shareholders’ equity ...........................................................................................150
4.9 Management of capital structure ..................................................................... 151
5. OTHER NOTES
5.1 Provisions .............................................................................................................. 152
5.2 Securities provided, contingent liabilities and other liabilities ................. 152
5.3 Details of related parties and Group structure ............................................. 153
5.4 Events after the reporting period ....................................................................153
PARENT COMPANY FINANCIAL STATEMENT, FAS .............................................
Parent company income statement ........................................................................... 154
Parent company balance sheet ...................................................................................155
Parent company cash flow statement ....................................................................... 157
Notes to the parent company’s
financial statements ....................................................................................................... 158
The parent company’s accounting principles .........................................................158
1. Personnel expenses ...................................................................................158
2. Other operating expenses ........................................................................159
3. Depreciation and amortisation ................................................................159
4. Income taxes ...............................................................................................159
5. Intangible assets ....................................................................................... 160
6. Tangible assets .......................................................................................... 160
7. Holdings in Group companies ...................................................................161
8. Receivables from Group companies ........................................................161
9. Cash and cash equivalent ..........................................................................161
10. Equity ............................................................................................................162
11. Loans from financial institutions .............................................................. 162
12. Liabilities to Group companies ................................................................163
13. Accrued liabilities .......................................................................................163
14. Commitments and contingencies ...........................................................163
15. Derivative contracts ...................................................................................163
16. Other rental contracts ................................................................................164
17. Management's employment-related benefits .......................................164
BOARD OF DIRECTORS’ PROPOSAL FOR
THE DISTRIBUTION OF PROFIT .............................................................................. 165
SIGNATURES TO THE BOARD OF DIRECTORS’
REPORT AND FINANCIAL STATEMENTS .............................................................. 165
12
BOARD OF DIRECTORS’ REPORT
Scanfil plc is the largest European stock-listed electronics manufacturing service
company in terms of turnover. The company serves global sector leaders in the
customer segments of Industrial, Energy & Cleantech, and Medtech & Life Science.
The company’s services include design services, prototype manufacture, design
for manufacturability (DFM) services, test development, supply chain and logistics
services, circuit board assembly, manufacture of subsystems and components,
and complex systems integration services. Scanfil’s objective is to grow customer
value by improving their competitiveness and by being their primary supply chain
partner and long-term manufacturing partner internationally. The company has
global supply capabilities and eleven production facilities across four continents.
Year 2024
Scanfil's turnover decreased due to customers' destocking and low end-customer
demand. Despite the negative development in turnover, Scanfil maintained its
profitability, and the adjusted operating profit margin remained at the 2023 level
of 6.8%.
In March, Scanfil announced its updated strategy and set new long-term financial
targets, which include an average annual growth of 10% in turnover, an operating
profit margin of 7%-8%, and a net debt to EBITDA ratio of ≤1.5.
To accelerate organic growth, the company divided the sales organization into three
customer segments: Industrial, Energy & Cleantech and Medtech & Life Science. By
specializing, it is possible to make better use of sales' customer industry expertise
and improve customer understanding and boost new customer sales.
In September, we announced a transfer from a function-based operating model to
a geographical model that supports and accelerates local decision-making in areas
such as mergers and acquisitions, investments and new customer acquisition was
published. As of January 1, 2025, the Group Management Team was renewed to
support new geographic segments Americas, APAC, Central Europe and Northern
Europe.
In October, Scanfil announced its first acquisition since 2019. The acquisition of
SRXGlobal Pty Ltd. expanded Scanfil's operations in the rapidly growing Asia-Pacific
region. Scanfil plans to develop SRXGlobal and strengthen its position in the region.
For the first time, Scanfil reported on its responsibility in accordance with CSRD
standards and committed to the greenhouse gas emission reduction targets
established by the Science Based Targets initiative. The company aims to move
to a 60% fossil-free energy consumption by 2030.
Turnover and result
The turnover for 2024 was EUR 779.9 (2023: 901.6) million, a decrease of 13.5%
compared to the previous year. The turnover decreased by EUR 121.7 million, of which
EUR -14.5 million were spot market purchases. Excluding spot market purchases,
turnover decreased by 12,1%.
The adjusted operating profit was EUR 53.1 (61.3) million, 6.8% (6.8%) of turnover.
Operating profit was adjusted for EUR 0.5 million acquisition costs related to the
SRX transaction. The adjusted operating margin was affected by a EUR 1.0 million
change in foreign exchange rates, EUR 0.5 million in lay-off costs, and EUR 14.5
million in consignment revenue, resulting in a total impact of -0.3%. The operating
profit was EUR 52.6 (61.3) million, 6.7% (6.8%) of turnover.
The net profit was EUR 38.6 (48.2) million, a decrease of 19.9%. Earnings per share
were EUR 0.59 (0.74). The return on investment was 15.4% (19.4%).
The effective tax rate was 24.4% (21.7%). The difference in the rates is due to a
negative adjustment of taxes in the Poland Special Economic Zone and a tax refund
resulting from a mutual agreement process in 2023 concerning the 2014 tax year in
Poland. These factors had a total impact of 1.4% on the tax rate. Otherwise, the tax
rate reflects the weighted average tax rates, including withholding taxes on dividends.
The Group’s key figures over five years are presented under “The Group’s key
figures” in the financial statements.
Financing position and investments
Scanfil has a strong financial position. The consolidated balance sheet total was
EUR 539.1 (518.0) million at the end of the review period. Cash and cash equivalents
totaled EUR 48.5 (21.2) million. Liabilities amounted to EUR 248.0 (252.0) million, of
which non-interest-bearing liabilities totaled EUR 178.3 (179.0) million and interest-
bearing liabilities totaled EUR 69.7 (73.0) million. Interest-bearing liabilities consisted
of EUR 42.7 (50.4) million in liabilities from financial institutions and EUR 27.0 (22.6)
million in leasing liabilities. The Group has a strong liquidity position with EUR 91.5
million in unused credit facilities.
The equity ratio on December 2024 was 55.5% (53.7%), and net gearing was 7.3%
(19.4%). Net debt to EBITDA was 0.43 (0.64). Equity per share was EUR 4.46 (4.08).
The Group’s financial arrangement includes discharge covenants related to equity
ratio and interest-bearing net debt/EBITDA ratio. Compliance with the terms of the
covenants is reviewed quarterly. At the end of the period under review, the terms
have been complied with.
On October 3, 2024, Scanfil plc acquired the entire share capital of SRXGlobal Pty.
Ltd., an Australian electronics contract manufacturer. The purchase price was EUR
33.2 million. SRXGlobal has two factories in Melbourne, Australia and Johor Bahru,
Malaysia. Factories have in total 8 automated SMT lines and ca. 300 employees.
The net cash flow from operating activities was EUR 92.1 (68.9) million. The positive
change resulted from the EUR 50.4 million impact of the reduction in the inventory
values. The net cash flow from investing activities was EUR -37.6 (-21.9) million,
which includes a cash flow effect of EUR -22.3 million related to the acquisition of
SRXGlobal Pty Ltd. Furthermore, Scanfil invested in the Dream Factory manufacturing
efficiency program and necessary capacity replacements. Sieradz factory expansion
was postponed due to the prevailing demand environment.
Free cash flow was EUR 54.5 (46.8) million.
The cash flow from financing activities was EUR -27.6 (-46.4) million, including EUR
-15.0 (-13.6) million dividend payment, EUR -6.0 (-6.0) million in repayments of long-
term loans, changes in the leasing liabilities of EUR -4.4 (-4.2) million and change
in overdraft facility EUR -2.2 (-23.9) million.
Gross investments totaled EUR 48.6 (22.2) million, which was 6.2% (2.5%) of the
turnover. Depreciations, including impairments, totaled EUR 21.1 (19.1) million. The
gross investments include EUR 33.9 million in acquisition expenses related to the
share capital of SRXGlobal Pty Ltd.
The Board of Directors’ authorizations
Scanfil plc’s Annual General Meeting was held on April 25, 2024 as a remote
meeting in accordance with the law. The Meeting authorized the Board of Directors
to decide on the acquisition of the company’s own shares and to decide on share
issues through one or more issues.
The Board of Directors’ proposals to the General Meeting and the minutes of the
Annual General Meeting are available on the company website at scanfil.com/agm.
Option schemes
The Group has two valid option schemes. On April 24, 2019, the Annual General
Meeting accepted the 2019 option scheme (A–C) and on April 21, 2022 the Annual
General Meeting authorized the Board to decide on the issue of option rights to
the Scanfil Group‘s key personnel and to decide on the terms and conditions of
the option scheme. Based on the authorization on 27 October 2022, the Board
13
decided on the option scheme 2022 (AI/AII) – (CI/CII). ) On the basis of the 2019
option scheme, a maximum of 900,000 option rights can be granted and on the
basis of the 2022 option scheme, a maximum of 1,200,000 option rights can be
granted Each option right enables its holder to subscribe to one Scanfil plc share.
Share
Scanfil plc has a total of 65,269,993 shares. The company’s registered share
capital is EUR 2,000,000. The company has one series of shares, and each share
entitles the holder to one vote and an equal right to receive dividends.
Scanfil plc’s shares are quoted on Nasdaq Helsinki Ltd. The shares have been publicly
traded since January 2, 2012. The trading code of the shares is SCANFL. The shares
are included in the book-entry securities system maintained by Euroclear Finland Oy.
In 2024, a total number of shares traded on Nasdaq Helsinki Ltd was 4,470,037
comprising 7% of all outstanding shares. The value of shares traded was EUR 34.5
million and the volume weighted average price was EUR 7.73. The market value of
the share capital was EUR 538.5 million on December 31, 2024. The highest trading
price was EUR 8.70 and the lowest EUR 6.72. The closing price was EUR 8.25.
Members of the Board of Directors of Scanfil plc, the CEO and members of the
Group Management Team held a total of 10,126,193 shares on December 31, 2024,
comprising 15.5% of the company’s shares and votes.
More detailed information on the distribution of shareholdings, shareholders and
the share price development is presented under “Shares and shareholders” in the
financial statements.
Own shares
On December 31, 2024, the company owned 78,738 of its own shares, representing
0.1% of all shares.
Personnel
At the end of the period the Group employed 3,997 (3,797). The change was driven
by the acquisition of SRXGlobal. The average number of Group employees during
the review period was 3,593 (3,671) people.
PERSONNEL, AVARAGE 2024 2023 20212
Parent company 13 13 13
The Group 3,593 3,671 3,403
PAID SALARIES, WAGES AND FEES
EUR MILLION
2024 2023 2022
Parent company 1.9 2.3 1.9
The Group 96.6 95.6 82.5
Board of Directors and CEO
On April 25, 2024, the Annual General Meeting re-elected Harri Takanen, Thomas
Dekorsy, Bengt Engström, Christina Lindstedt, Juha Räisänen and Minna Yrjönmäki
as Board members. At its organizing meeting on April 25, 2024, the Board of
Directors elected Harri Takanen as its chair. The chair of the Audit Committee
was Juha Räisänen, and members were Christina Lindstedt and Minna Yrjönmäki.
Risks
Scanfil has determined the most significant risks in its operations. Risks related to
sustainability have been discussed in the Sustainability Report. The Group monitors
and follows all identified and potential risks. The Board of Directors steers the risk
management processes and Audit Committee supervises the implementation.
Operative management of the risk management is led by CFO. More information
can be found in the Corporate Governance Statement’s risk management section.
Near-future business risks and uncertainties
In this section, the most essential risk factors, that may have an impact on Scanfil’s
ability to achieve its targets and means to manage related risks, are discussed briefly.
Scanfil seeks actively to reduce the impact of these risk factors by preventive actions.
STRATEGIC RISKS
The weakening of the global economy and the declining demand of investment
goods might have a negative impact on the development of business of Scanfil’s
customers and weaken the demand in the contract manufacturing market.
The continuation and expansion of conflicts in Ukraine and the Middle East may have
an impact on the business environments of Scanfil and its customers.
Also, political and trade political tense and related actions may impact on the Scanfil
business environment. This risk is eliminated by Scanfil’s global factory network
and its development.
OPERATIONAL RISKS
The vast majority of materials and components used in the supply chain are
purchased from external suppliers or subcontractors. This exposes the Group to the
availability and cost risks related to materials, components and other subcontracted
products in addition to the contingency of the business relationship.
The group has a global procurement unit whose task is to ensure the availability
of materials using trusted suppliers. With its purchasing power and procurement
department, Scanfil is able to influence suppliers’ delivery reliability and pricing to
a reasonable extent.
Obsolete materials and components may create a financial risk for the group limited
to their book value. Material responsibilities are agreed upon in customer contracts.
Scanfil needs electricity and heat in its production. The risk of rising energy availability
and costs is believed to be small in the short term in Europe, and will not have a
significant impact on short-term revenue or profitability expectations. In the longer
term, there may still be risks to the availability of energy.
Scanfil is also involved in a few claims that may lead to or are in arbitration proceedings
and legal proceedings. If the group estimates that the outcome of the proceedings
has a potential financial impact, it is reflected in the accounting.
CUSTOMER RISKS
The Group has approximately 160 active customers, of which the largest customers
are Nordic companies that are leaders in their respective industries. The client
companies are spread over several different industries and geographical areas. In
general, the business of the Group’s key customers is not particularly sensitive to
economic cycles and the life cycles of products are often long. During 2024, the
largest customer’s share of turnover was 13% (13%), and the ten largest customers’
share of turnover was approximately 55% (55%).
FINANCIAL AND EXCHANGE RATE RISKS
Scanfil operates internationally and is thus exposed to exchange rate risks. The
14
group’s exchange rate risks consist of transaction risks related to business and
financing cash flows, translation risks related to foreign subsidiaries, and financial
risks caused by exchange rate changes. Currency forwards are used to hedge the
transaction risk. Investments in foreign subsidiaries are not protected.
Interest rate risk is included in the return on financial investments and interest-
bearing debts. Changes in the interest rate have an impact on the Group’s result.
The interest rate risk of loans can be managed with credit swaps and by adjusting
the relative shares of fixed and variable rate loans. The prevailing interest rate risk
is moderate with current contracts and credit levels.
Credit risks are related to trade receivables from customers. The Group’s largest
customers are solvent Nordic market leaders in their industries. Overdue trade
receivables are monitored regularly on a monthly basis at the Group level. The
creditworthiness of new customers is checked and only standard payment terms
are granted to customers. The customers’ credit ratings are monitored and most
of Scanfil’s largest customers have a good credit rating. Trade receivables do not
include significant credit loss risk.
Financial risk is mainly related to securing the Group’s financing. The management
of the Group’s finances and the management of financial risks are managed in
accordance with the principles approved by the Board of the Group’s parent company.
Scanfil’s finance function, which is part of the Group’s financial administration,
is responsible for ensuring that financial services and financial transactions are
carried out in a way that aims to enable the availability of sufficient funding under
all circumstances. Scanfil’s debt level is moderate and the credit rating is good.
INFLATION RISK
Overall inflation has an impact on the Group’s cost structure. Inflation has slowed
down, but the future development is uncertain.
PANDEMIC RISKS
Pandemics could affect the Group’s business. The effects can include, for example,
factory closings, increased staff sick leave and quarantines, the costs of protective
measures, even a temporary stoppage of production and/or delays in the delivery
of materials and manufactured products.
CYBER SECURITY RISK
Cyber security is recognized as a growing risk. Scanfil continuously monitors and
develops the ICT environment and systems to reduce risks.
The Group’s risks and risk management are described in more detail on the company’s
website in the Corporate Governance section and in the notes to the consolidated
financial statements.
Changes in the Group structure
Scanfil acquired SRXGlobal Pty Ltd. on 3 October 2024 for EUR 23.3 million. SRX has
two well-situated factories in Melbourne, Australia and Johor Bahru, Malaysia. The
factories have in total 8 automated SMT lines and approximately 300 employees.
Research and development
As a result of the nature of the company’s business operations, R&D activities
are primarily carried out with customers, and the company’s R&D activities do not
account for any significant part of the company’s cost structure.
Proposals by the Board of Directors
to the Annual General Meeting
Scanfil plc’s Annual General Meeting has been planned to be held on April 25, 2025.
Dividend for 2024
The parent company’s distributable assets total EUR 70,308,241.25 including
undistributed profits of EUR 36,674,749.71. The Board of Directors proposes to the
Annual General Meeting that a dividend of EUR 0.24 (0.23) per share, in total EUR
15,645,901.20 to be paid for the financial year ending on December 31, 2024. The
dividend will be paid to shareholders, who are recorded on April 29, 2025, in the
company’s list of shareholders maintained by Euroclear Finland Oy. The dividend
will be paid on May 7, 2025.
No significant changes have taken place in the company’s financial position since
the end of the financial year. In the view of the Board of Directors, the proposed
dividend pay-out will not put the company’s liquidity at risk.
The proposal of Scanfil plc’s nomination committee to the General Meeting for the
composition of Scanfil plc’s Board of Directors will be published in connection with
the invitation to the General Meeting.
Future Outlook
Scanfil estimates that its turnover for 2025 will be EUR 780-920 million, and its
adjusted operating profit will be EUR 53–66 million.
The outlook is based on customer forecasts and Scanfil’s normal forecasting
process. The outlook is associated with uncertainty related to the economy, customer
destocking and end-demand.
Long-term targets
Scanfil is aiming for 10% annual turnover growth and 7%-8% operating profit level
while keeping its net debt/EBITDA ≤1.5. Scanfil aims to pay an increasing dividend
of approximately 1/3 of the earnings per share.
Events after the reporting period
There were no significant events after the reporting perriod.
Corporate Governance Statement
The Corporate Governance Statement will be published with the financial statements
separately from the annual report.
15
2024 2023 2022 2021 2020
Financial key ratios
Turnover, EUR m 779.9 901.6 843.8 695.7 595.3
Turnover, growth from previous year, % -13.5 6.9 21.3 16.9 2.7
Operating profit, EUR m 52.6 61.3 45.4 39.6 44.4
Operating profit, % of turnover 6.7 6.8 5.4 5.7 7.5
Operating profit adjusted, EUR m 53.1 61.3 45.4 40.3 39.1
Operating profit adjusted, % of turnover 6.8 6.8 5.4 5.8 6.6
Profit/loss for the period, EUR m 38.6 48.2 35.0 29.8 36.9
Profit/loss for the period, % of turnover 5.0 5.3 4.2 4.3 6.2
Return on equity, % 13.9 19.6 16.1 15.2 21.1
Return on investment, % 15.4 19.4 14.6 15.3 19.5
Interest-bearing liabilities, EUR m 69.7 73.0 106.3 85.2 44.0
Gearing, % 7.3 19.5 37.8 28.9 9.9
Equity ratio, % 55.5 53.7 45.3 45.3 54.3
Gross investments in fixed assets, EUR m 48.5 22.2 19.0 15.5 9.4
Gross investments in fixed assets, % of turnover 6.2 2.5 2.3 2.2 1.6
Average number of employees for the period * 3,593 3,671 3,403 3,267 3,387
2024 2023 2022 2021 2020
Key indicators per share
Earnings per share, EUR 0.59 0.74 0.54 0.46 0.57
Shareholders’ equity per share, EUR 4.46 4.08 3.49 3.18 2.82
Dividend per share, EUR 0.24 0.23 0.21 0.19 0.17
Dividend per earnings, % 40.7 31.1 38.9 41.3 29.8
Effective dividend yield, % 2.91 2.94 3.19 2.55 2.61
Price-to-earnings ratio (P/E) 14.0 10.6 12.2 16.2 11.4
Share trading
No. of shares traded, thousands 4,470 6,731 4,166 4,415 6,290
Percentage of total shares, % 7.0 10.0 6.4 6.8 9.7
Share performance
Lowest price for year, EUR 6.72 6.40 4.90 6.24 3.26
Highest price for year, EUR 8.70 11.58 8.06 9.02 6.70
Average price for year, EUR 7.73 8.60 6.59 7.61 5.07
Price at the end of year, EUR 8.25 7.83 6.58 7.46 6.52
Market value of share capital at the end of financial
year, EUR million
538.5 511.1 427.4 484.6 422.7
Share-issue adjusted number of shares
At the end of the period, thousands 65,270 65,270 64,960 64,960 64,830
On average during the period, thousands 65,191 64,864 64,830 64,701 64,387
KEY RATIOS
*At the end of the financial period, the Group employed 3,997.
16
Return on equity, % Net profit for the period* x 100
Shareholders’ equity (average)
Adjusted return on equity, % Adjusted net profit for the period* x 100
Adjusted shareholders’ equity (average)
Return on investment, % (Profit before taxes + interest and other financial expenses)* x 100
Balance sheet total - non-interest-bearing liabilities (average)
Gearing (%) (Interest-bearing liabilities - cash and other liquid financial assets)
Shareholders’ equity
Equity ratio (%) Shareholders’ equity x 100
Balance sheet total - advance payments received
Earnings per share Net profit for the period
Average adjusted number of shares during the year
Shareholders’ equity per share Shareholders’ equity
Adjusted number of shares at the end of the financial period
Dividend per share Dividend to be distributed for the period (Board’s proposal)
Number of shares at the end of year
Dividend per earnings (%) Dividend per share x 100
Earnings per share
Effective dividend yield (%) Dividend per share x 100
Share price at the end of year
Price-to-earnings ratio (P/E) Share price at the end of year
Earnings per share
Average share price Total share turnover
Number of shares traded
Market capitalization Number of shares x last trading price of the financial period
Adjusted item A non-recurring significant item that deviates from normal business
operations, which affects the comparability between different periods.
DEFINITIONS OF KEY RATIOS
17
SHARES AND SHAREHOLDERS
Shares and share capital
Scanfil plc has a total of 65,269,993 shares. The company’s registered share capital
is EUR 2,000,000. The company has one series of shares, and each share entitles
the holder to one vote and an equal right to receive dividends.
Scanfil shares are quoted on Nasdaq Helsinki Ltd. The shares have been publicly
traded since January 2, 2012. The trading code of the shares is SCANFL. The shares
are included in the book-entry securities system maintained by Euroclear Finland Ltd.
Board’s authorizations in force
The Scanfil plc’s Board of Directors did not have any authorizations to issue
convertible bonds or bonds with warrants.
The Annual General Meeting (AGM) of Scanfil plc held on April 25, 2024 authorized
the Board of Directors to decide on the acquisition of at most 5,000,000 treasury
shares. The authorization will remain in force for 18 months after its issuance.
The AGM authorized the Board of Firectors to decide on share issue, granting shares
and issue of special rights entitling to shares. The number of shares to be issued
based on the authorization can be no more than 12,000,000 shares. The Board
of Directors decides on terms and conditions of share issues. The authorization
concerns both the issue of new shares and the transfer of treasury shares. Shares
can be issued in deviation from the shareholders’ pre-emptive rights (directed issue).
The authorization is valid until 30 June 2025.
Own shares
The company held 78,738 of its own shares on December 31, 2024.
Dividend distribution policy
The company aims to pay dividends annually. The level of dividends paid and the
date of payment are affected, inter alia, by the Group’s fnancial result and position,
need for capital and other possible factors. The aim is to distribute approximately
one-third of the Group’s annual profit as dividend to shareholders.
Dividend
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.24 per share, totalling EUR 15,645,901.20 be paid for the financial year
ending on December 31, 2024.
Share price development, trading and market value
During 2024, the number of Scanfil plc shares traded on Nasdaq Helsinki Ltd was
4,470,037 comprising 7% of all outstanding shares. The value of shares traded was
EUR 34.5 million and the volume weighted average price was EUR 7.73. The market
value of the share capital was EUR 538.5 million on December 31, 2024. The highest
trading price was EUR 8.70 and the lowest EUR 6.72. The closing price was EUR 8.25.
Information on shareholders
On December 31, 2024, Scanfil had a total of 8,161 shareholders, 85.6% of whom
owned a maximum of 1,000 shares in the company. The ten major shareholders
owned 71.0% of the shares. Nominee-registered shares accounted for 5.7%
of the shares.
Shares held by management
Members of the Board of Directors of Scanfil plc, the CEO and members of the
Group Management Team held a total of 10,126,193 shares on December 31,
2024, comprising 15.5% of the company’s shares and votes.
SCANFIL SHARE PRICE DEVELOPMENT
2
4
6
8
10
1.1.2020 1.1.2021 1.1.2022 1.1.2023 1.1.2024 31.12.2024
EUR/share
Scanfil plc, EUR
OMX Helsinki 25 Index
18
BREAKDOWN OF SHARE OWNERSHIP
BREAKDOWN OF SHARE OWNERSHIP BY NUMBER OF SHARES HELD ON DECEMBER 31, 2024
INFORMATION ON SHAREHOLDERS
MAJOR SHAREHOLDERS ON DECEMBER 31, 2024
Number of
shareholders
% of shareholders Total number
of shares, pcs % of shares
Private individuals 7,775 95.3 9,153,063 14.0
Companies 291 3.6 2,718,586 4.2
Pension & Insurance 14 0.1 527,355 0.8
Foundations 34 0.4 2,090,026 3.2
Other 7,775 0.3 45,288,619 69.2
Fund company 10 0.2 3,686,325 5.7
Nominee registered 10 0.1 3,686,993 5.7
Total 8,162 100.0 65,269,993 100.0
BREAKDOWN OF SHARE OWNERSHIP BY OWNER CATEGORY ON DECEMBER 31, 2024
Shares
Percentage
of shares, %
1. Takanen Harri 9,913,146 15.2
2. Takanen Jarkko 8,251,169 12.6
3. Varikot Oy 7,606,442 11.7
4. Takanen Jorma Jussi 6,474,305 9.9
5. Tolonen Jonna 3,351,950 5.1
6. Pöllä Reijo 3,328,745 5.1
7. Laakkonen Mikko 2,531,187 3.9
8. Riitta ja Jorma J. Takasen säätiö 1,900,000 2.9
9. Takanen Martti 1,647,018 2.5
10. Sijoitusrahasto Aktia Capital 1,319,203 2.0
Ten largest shareholders, in total 46,323,165 71.0
Number of shares
Number
of known owners
% of known owners Total number
of shares,
pcs
% of shares
1–100 2,874 35.2 125,449 0.2
101–1,000 4,117 50.4 1,596,196 2.5
1,001–10,000 1,010 12.4 2,716,274 4.0
10,001–100,000 119 1.5 3,622,087 5.6
100,001–9,999.999 32 0.4 53,543,055 82.0
Nominee registered 10 0.1 3,686,993 5.7
Total 8,162 100.0 65,269,993 100.0
19
Sustainability statement
20
. GENERAL INFORMATION ........................................................................................
1.1 General basis for preparation of the Sustainability Statement .................. 21
1.2 The role of the administrative, management and supervisory bodies ..... 21
1.3 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management, and supervisory bodies ..... 23
1.4 Integration of sustainability-related performance in incentive
schemes ................................................................................................................. 23
1.5 Statement on due diligence .............................................................................. 24
1.6 Risk management and internal controls over sustainability reporting .... 24
1.7 Strategy, business model, and value chain .................................................... 25
1.8 Interests and views of stakeholders ................................................................ 28
1.9 Material impacts, risks and opportunities and their interactions with
strategy and business model ............................................................................ 29
1.10 Description of the process to identify and assess material impacts,
risks and opportunities ........................................................................................ 41
1.11 Disclosures in relation to specific circumstances ...................................... 50
. ENVIRONMENTAL INFORMATION .......................................................................
2.1 Taxonomy report outline
2.1.1 How Scanfil is affected by the EU Taxonomy ................................................ 52
2.1.2 Eligibility assessment .......................................................................................... 52
2.1.3 Alignment assesment ......................................................................................... 53
2.1.4 Minimun safeguards ............................................................................................ 56
2.1.5 2024 assessment summary ...............................................................................57
2.1.6 Turnover .................................................................................................................. 58
2.1.7 Capital Expenditure ............................................................................................. 58
2.1.8 Operating Expenditure ....................................................................................... 58
2.1.9 Delegated regulations 2022/1214 .................................................................... 62
2.2 Climate change
2.2.1 Transition plan for climate change mitigation ............................................... 63
2.2.2 Policies related to climate change mitigation and adaptations ................ 63
2.2.3 Actions and resources in relation to climate change policies .................. 63
2.2.4 Targets related to climate change mitigation and adaptation .................. 63
2.2.5 Energy consumption and mix ........................................................................... 70
2.2.6 Gross scope 1, 2, 3 and total GHG emissions .................................................71
2.2.7 GHG removals and GHG mitigation projects financed
through carbon credits ........................................................................................75
2.2.8 Internal carbon pricing .........................................................................................75
2.3 Pollution
2.3.1 Policies related to pollution ................................................................................76
2.3.2 Actions and resources related to pollution .....................................................76
2.3.3 Targets related to pollution .................................................................................76
2.3.4 Pollution of air, water and soil .............................................................................76
2.3.5 Substances of concern and substances of very high concern ..................77
2.4 Resource use and the circular economy
2.4.1 Policies related to resource use and the circular economy .......................80
2.4.2 Actions and resources related to resource use and the circular
economy.................................................................................................................80
2.4.3 Targets related to resource use and the circular economy .......................80
2.4.4 Resource inflows .................................................................................................. 82
2.4.5 Resource outflows ............................................................................................... 83
. SOCIAL INFORMATION ..........................................................................................
3.1 Own workforce
3.1.1 Policies related to own workforce .................................................................... 85
3.1.2 Processes for engaging with own workforce and workers’
representatives about impacts ......................................................................... 88
3.1.3 Processes to remediate negative impacts and channels for own
workforce to raise concerns .............................................................................. 89
3.1.4 Taking action on material impacts on own workforce, and approaches
to managing material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions ................................ 89
3.1.5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities ........... 91
3.1.6 Characteristics of the undertaking’s employees .......................................... 92
3.1.7 Characteristics of non-employees in the undertaking’s
own workforce ....................................................................................................... 93
3.1.8 Collective bargaining coverage and social dialog ....................................... 94
3.1.9 Diversity metrics ................................................................................................... 94
3.1.10 Adequate wages................................................................................................... 95
3.1.11 Health and safety metrics .................................................................................. 95
3.1.12 Remuneration metrics (pay gap and total remuneration) ........................... 95
3.1.13 Incidents, complaints, and severe human rights impacts ......................... 96
3.2 Workers in the value chain
3.2.1 Policies related to value chain workers ............................................................97
3.2.2 Processes for engaging with value chain workers about impact ............. 98
3.2.3 Processes to remediate negative impacts as well as channels for
value chain workers to raise concerns ............................................................ 98
3.2.4 Taking action on material impacts on value chain workers’ approaches
to managing material risks as well as pursuing material opportunities
related to value chain workers and the effectiveness of those actions .. 99
3.2.5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities ........ 100
. GOVERNANCE INFORMATION ...........................................................................
4.1 Business Conduct
4.1.1 The role of the administrative, management and supervisory bodies ...102
4.1.2 Business conduct policies and corporate culture ......................................102
4.1.3 Management of relationships with suppliers ...............................................103
4.1.4 Prevention and detection of corruption and bribery ................................... 103
4.1.5 Incidents of corruption or bribery ....................................................................105
4.1.6 Payment practices ..............................................................................................105
4.1.7 Entity specific: Disclosure for Data Security .................................................105
APPENDIX .................................................................................................................... 106
Disclosures incorporated by reference .....................................................................106
List of datapoints in cross-cutting and topical standards that derive
from other EU legislation ..............................................................................................107
Scoring and threshold methodology for financial and impact materiality .........113
The level of data accuracy for environmental and social data ..............................114
TABLE OF CONTENTS
21
1. General Information
1.1 General basis for preparation
of the Sustainability Statement
This Sustainability Statement complies with the EU’s Corporate
Sustainability Reporting Directive (CSRD) and its reporting requirements
ESRS.
The Sustainability Statement has been prepared on the Position Green
cloud service reporting and consolidation solution. It follows the same
consolidation principles as financial statements for all Scanfil subsidiaries
that belong to the Group in 2024. SRXGlobal Pty Ltd was acquired on
October 3, 2024, and has been consolidated since. The progress
made in Scanfil’s strategy regarding its 2030 sustainability targets is
also reported.
The disclosed sustainability topics are based on a Double Materiality
Assessment conducted in 2024. The material topics and sustainability
targets based on the materiality assessment were approved in May 2024,
and reporting based on them was initiated in June 2024.
Scanfil’s sustainability reporting complies with the Group’s common
principles and processes for statutory reporting, risk management,
and internal control. In sustainability reporting, internal control is based
on risk identification and analysis, focusing on the most material risks
identified and applying the best internal control practices.
Scanfil’s Chief Financial Officer, supported by the sustainability function,
oversees the implementation of sustainability reporting. Data is collected
from all Scanfil sites, including its factories and offices. The data is
consolidated in Scanfil’s sustainability reporting platform, Position Green,
in such a way that the data is traceable and auditable.
The risks identified in sustainability reporting include the accuracy of
information and the timing of reporting. To ensure that the disclosed
information is accurate and appropriately timed, Scanfil has defined and
adopted a process and a governance structure that specify the roles,
responsibilities, and reporting timelines in sustainability reporting for
the data included.
Data providers from each site are responsible for ensuring the
correctness of site-level information. The Global Sustainability Function
supervises the correctness of the consolidated data and then provides
it to Group Accounting.
An internal auditor is responsible for ensuring the accuracy and timeliness
of disclosed information as a part of the audit work. The internal auditing
results are monitored, and supervised by Scanfil’s Chief Financial Officer,
Audit Committee, and Group Management Team.
The Scanfil Sustainability Statement covers all the parts of the upstream
and downstream value chain that are assessed as material in the Double
Materiality Assessment and discloses metrics on:
• Raw material manufacturers
• Component manufacturers/suppliers
• Own operations
• Customers
End-users are excluded as Scanfil only manufactures according to a
customer’s specifications and has no product ownership or market
surveillance.
Scanfil has not identified any specific information corresponding to
intellectual property rights, neither results of innovations nor expertise
that have been decided not to be disclosed in this report, and has not
used any exemptions based on articles 19a(3) and 29a(3) of Directive
2013/34/EU.
1.2 The role of the administrative,
management and supervisory bodies
Business Conduct
The supreme decision-making bodies are the Annual General Meeting
(General Meeting) of the parent company Scanfil plc and the Board of
Directors (the Board). The Board has an Audit Committee to supervise the
financial reporting process and the reporting of the financial statements,
sustainability statements, and interim reports, as well as monitoring the
functionality of Scanfil’s internal control and risk management. It also
evaluates the appropriateness of auditing and prepares the proposal
for the appointment of an auditor.
The Shareholders’ Nomination Board (Nomination Board) prepares
proposals for General Meetings concerning the election of Board
members, their remuneration, as well as the remuneration of Board
Committee members. The Nomination Board is also responsible for
ensuring that the Board and its members have sufficient knowledge
and experience corresponding to the company’s needs, e.g., strategy
development, sustainability, and financial accounting. The Board appoints
the CEO to set Scanfil’s strategic goals and objectives and ensure
the necessary resources are in place to achieve them. The Group
Management Team assists the CEO with expertise in the business’
code of conduct and sustainability.
22
The Group’s General Counsel reports directly to the CEO and acts as a
secretary to the Board. The General Counsel is a part of the Extended
Management Team. The area of sustainability is led by the Chief
Development Officer, assisted by a Director for Global Sustainability.
All members of the Board have long and comprehensive expertise on
business conduct matters throughout their professional careers.
Scanfil’s Board of Directors comprises six Board members, all of whom
are non-executive. No employees or other workers are represented on
the Board of Directors. 83.3% of the Board members are independent of
the company. Four men (66.7%) and two women (33.3%) are represented
on the Board. 80% of the Board members have previous experience
in the Electronic Manufacturing Service (EMS) industry and/or Scanfil’s
customers’ businesses, while 100% of the members have geographical
knowledge of the locations where Scanfil is active. 33.3% of the Board
members have a deep understanding of sustainability-related matters
through their professional careers or research work. The Group
Management Team (Management Team) comprises of seven people:
Five men (71.4%) and two women (28.6%).
The Board of Directors
The Board of Directors is the company’s highest body overseeing
sustainability. The company’s Board of Directors approves Scanfil’s
sustainability targets as part of the company’s strategy and supervises
the achievement of the targets.
Sustainability is incorporated into Scanfil’s strategy, long-term business
and investment plans, risk assessments, and annual action plans. They
are prepared by the Group Management Team and approved by the
Board of Directors. In accordance with the annual cycle, the Board of
Directors reviews the Sustainability Statement once a year. The Board
also discusses other sustainability-related matters when required and
consults with sustainability management.
CEO and Group Management Team
The CEO and the Group Management Team review the progress
of the sustainability strategy and target achievements quarterly. In
addition, sustainability progress is reported and evaluated in bi-annual
management reviews defined in the Scanfil Quality Management System.
The Group Management Team makes decisions related to capital
expenditure, expenses, and organization to enable the successful
execution of the sustainability strategy, following the Group Authorization
Manual. The Group Management Team is also responsible for proposing
adjustments to the sustainability strategy to be decided by the Board
of Directors and to ensure that it remains relevant and aligned with any
possible changes, i.e., in the regulatory landscape.
Sustainability Function
The Sustainability Function prepares and follows up on the Group
sustainability strategy execution plans, supervises the preparation of
site-specific plans, and ensures alignment with the group-level plans.
The function also defines the lower-level sustainability targets and sets
up the tools, processes, and partnerships to enable the successful
execution of the sustainability strategy.
Sites
Local sites prepare, execute, and follow up on the local sustainability plans
and provide the local reporting data to the Group’s sustainability reporting
platform. Sites also decide or prepare proposals for sustainability-related
capital expenditure, expenses, and organization according to the limits
specified in the Group Authorization Manual.
Internal audit
The responsibility of the internal auditor is described in section 1.1 General
basis for the preparation of the Sustainability Statement.
Audit Committee
The Board of Directors has established an Audit Committee. The
Board of Directors holds primary responsibility for the oversight of
the organization’s impacts, risks, and opportunities. Within the Board,
the Audit Committee is specifically tasked with monitoring financial
reporting and evaluating financial and operational risks, including ESG
(Environmental, Social, and Governance) topics. The Audit Committee
reports regularly to the Board and ensures accountability through
quarterly assessments and annual impact reviews. The CEO and the
Group Management Team work closely with the Audit Committee to
implement strategies and respond to emerging risks, ensuring alignment
with the organization’s long-term objectives.
The Board of Directors plays an important role in overseeing the
identification, assessment, and management of key impacts, risks,
and opportunities that are vital to Scanfil’s long-term success. This
responsibility is clearly articulated in the Board’s mandate, ensuring that
considerations of risk and opportunity are integral to strategic decision-
making. Through routine reviews and updates to governance policies, the
Board incorporates sustainability factors, financial risks, and emerging
opportunities into its accountability framework, guided by specific
policies including the Risk Management Policy and Code of Conduct.
The Shareholders’ Nomination Board is responsible for ensuring that the
Board of Directors has sufficient capabilities represented. The Board of
Directors and its Audit Committee are responsible for acquiring external
expertise if it cannot be covered with internal resources. Operationally,
the CEO is responsible for staffing the company’s sustainability function
to fulfill legislative requirements. Scanfil continuously trains its personnel
in sustainability matters to meet the requirements.
23
Sustainability Governance at Scanfil
The Global Sustainability Function reports regularly to the Group
Management Team, which communicates with the Board of Directors
and its committees to govern the creation process of objectives linked
to material consequences, risks and opportunities and the progress
of objectives presented in the double materiality analysis. This is
done through administrative documentation and meetings, where
representatives from the Sustainability Function are involved when
convenient. If there should be any updates of objectives related to Scanfil’s
material consequences, risks and opportunities, these are reviewed and
approved by the Group Management Team and the Board, and later
considered in the corporate strategy which is updated on a yearly basis.
Board of Directors
CEO + Group Management Team
Sites Internal Audit
Global Sustainability
Function
Scanfil has had a Director Global Sustainability since 2024. Scanfil will
develop its sustainability agenda further in 2025, and there is a plan to
incorporate the sustainability structure into the Corporate Management
System.
Every site has a Quality & Environmental Manager covering environmental
topics and an HR Manager covering social topics. Governance topics
are handled globally by the Group Management Team and locally by
the Factory Manager supported by the Factory Management Team.
They consult with the expertise of Global Functions when needed e.g.
on sustainability, HR and legal matters.
The Board and the Group Management Team have limited expertise in
sustainability-related matters. The Board’s Audit Committee is the key
body in guiding and gathering expertise in sustainability reporting. Scanfil
has utilized its internal resources and external expertise to increase its
knowledge level. Scanfil has also hired third-party consultancy experts
when needed.
1.3 Information provided to and
sustainability matters addressed
by the undertaking’s administrative,
management, and supervisory bodies
The Board has appointed the Audit Committee to have the main
responsibility over Scanfil’s sustainability topics. Throughout 2024, the
Audit Committee has had three major topics on the agenda: CSRD,
SBTi, and Sustainbility as a brand pillar. The CDO together with the
Chair of the Audit Committee, CFO and Director of Global Sustainability
have governed Scanfil’s progress towards fulfilling the requirements
related to the ESRS and EU-taxonomy, where the focus has been put
on developing the sustainability reporting process, the corresponding
double materiality assessment and its risk management process. The
DMA was conducted during 2024 and was reviewed by the Board,
Scanfil’s Group Management Team, and Scanfil’s external auditor. Scanfil
was validated by the Science Based Targets initiative (SBTi) short-term
target 2030, and the company is committed to setting a net-zero target
for 2050 within the next few years. Moreover, The Group Management
Team has recognized the opportunity to position Scanfil as one of the
leading companies in sustainability, strengthening its reputation and
embedding sustainability as a core element of the brand. Material risk
monitoring is part of Scanfil’s risk management process. Risks are
reported and revalued monthly as part of Scanfil’s financial reporting,
where proactive measures and corrective actions are taken when certain
thresholds are exceeded.
The Board of Directors convened 15 times in 2024. Sustainability related
matters were discussed four times on the following dates:
22 February - The plan for participating in the SBTi NetZero with the
Letter of Commitment to achieve zero emissions in Scope 3 by 2050
at the latest. The matter was presented by the CEO Christophe Sut.
22 February - CEO Christophe Sut presented the Sustainability Report
(NFI/ESG Report) from fiscal period 2023.
22 May - Discussion and conclusions of the Audit Committee meeting
held on May 21, 2024 on CSRD and the sustainability reporting process,
the double materiality assessment and its pre-assurance. Matters were
presented by the Audit Committee’s Chairman Juha Räisänen.
20 November - Status of the sustainability process including updates on
the NetZero journey. Matters were presented by the Chief Development
Officer Riku Hynninen.
1.4 Integration of sustainability-related
performance in incentive schemes
Scanfil is a listed company, and its sustainability agenda affects the
company’s share value, which is linked to management incentives through
option programs. The general principles of a company’s remuneration,
together with the sustainability-related incentive scheme set for Scanfil’s
Management Team, are described in the Remuneration Report.
Scanfil has a Remuneration Policy that guides general principles of
remuneration for the Board of Directors, the CEO, and other senior
management.
Scanfil has annual and share-based incentive schemes. The annual
scheme is linked to short, usually annual targets, but it may also include
longer-term indicators, which are typically set for three years. The scheme
aims to encourage and guide the achievement of short-term financial
and operational goals and reward the achievement of short-term goals
in the implementation of the company’s strategy, including sustainability
targets.
24
Scanfil is gradually moving towards a one-year target setting. However,
the sustainability target was set for three years until 2026. In addition,
Scanfil has a share-based incentive plan that links the CEO and
other Group Management members to the shareholders. Scanfil is a
listed company, and share-based incentives expose beneficiaries to
sustainability risks through the company’s reputation on the share price.
The Board of Directors decides on the remuneration for the CEO. The
remuneration that relates to the members of the Group Management
Team is managed by the CEO. Updates are made on an annual basis.
Climate change
Scanfil’s Remuneration Policy outlines compensation principles
for the Board, CEO, and Group Management. The company
uses annual and share-based incentives. In 2024, the scope
1 and 2 GHG (greenhouse gas) emission target was ≤8,800
tCO2e, based on 2023’s calculation method and numbers
of production units. The multiplier is 0.9x, implying that the
annual short-term remuneration will be deducted by 10% if
the target is not met. The Board annually reviews and decides
on the remuneration based on the CEO’s proposal.
1.5 Statement on due diligence
Due diligence in sustainability
Scanfil is committed to embed sustainability into the core operations
and business strategy. The due diligence processes align with the ESRS
framework, ensuring that sustainability is integrated at every level of
decision-making. Below is a breakdown of how Scanfil approaches due
diligence across key areas:
Incorporating sustainability into policies
and management system
Sustainability principles are embedding into its corporate policies and
management systems. Scanfil continuously updates the environmental,
social, and governance (ESG) policies to reflect the industry’s best
practices, regulatory requirements, and stakeholder expectations.
This alignment drives accountability across the organization, ensuring
that sustainability considerations are integral to operational processes.
The key policies are: Environmental Policy, Work Environmental Policy,
Code of Conduct, and Supplier Code of Conduct. All of these policies
are communicated internally and externally, and employees receive
regular trainings on these policies
Identifying and assessing consequences,
risks, and opportunities
Scanfil conducts regular risk assessments to identify sustainability-
related risks and opportunities throughout its supply chain and
operations. The assessments cover environmental impacts, social
responsibility, and governance issues, which are evaluated for both short-
term and long-term consequences. This proactive approach helps Scanfil
to anticipate the potential risks and capitalize on emerging opportunities.
Preventing, mitigating, and responding to negative impacts
Scanfil employs a framework for preventing, mitigating, and addressing
negative impacts associated with its operations. Preventive measures
include supplier audits, resource efficiency initiatives, and employee
training. Mitigation strategies focus on minimizing risks through
innovation and collaboration with stakeholders, while response plans
ensure swift action in case of any adverse impacts.
Measuring progress
Progress on sustainability efforts is followed up through key performance
indicators (KPIs) tied to Scanfil’s environmental and social goals. Metrics
such as carbon emissions, energy consumption, and labor practices,
are regularly reviewed to ensure alignment with Scanfil’s sustainability
objectives. The data is used to refine strategies and inform stakeholders
on the company’s sustainability performance.
Open and transparent communication
Transparency is a core part of Scanfil’s sustainability reporting. Scanfil
is committed to openly communicating with stakeholders and providing
regular updates on its progress, challenges, and initiatives. The reports
are adapted to the ESRS standard, which ensures that stakeholders have
clear insights into the sustainability work and future plans.
Actions to address consequences
In the event of any negative consequences to its operations, Scanfil takes
immediate action. This includes corrective actions such as reviewing
policies, engaging with stakeholders, and implementing changes to
prevent recurrence. The goal is not only to address the immediate issue
but also to ensure long-term improvements in the business.
By addressing these six areas, Scanfil ensures that sustainability is an
integral part of the company’s operations, governance, and strategic
decision-making, thereby reflecting its commitment to responsible
business practices.
Scanfil does not currently have any specific sustainability due diligence
process but plans to prepare for the Corporate Sustainability Due
Diligence Directive (CSDDD), which will impact the company in 2028.
Current due diligence processes related to people and the environment
are embedded in several of Scanfil’s policies: Scanfil Environmental
Policy, Work Environment Policy, Code of Conduct, Supplier Code of
Conduct, and Sustainable Procurement Policy. For each of these policies,
there are processes and instructions ensuring suppliers fulfill Scanfil’s
policy aspects that are connected to people and the environment. In
the introduction of new suppliers, Scanfil follows a specific approval
process, which includes risk analyses and assessments related to these
two topics. For new customers, there is currently a process related to
adverse impacts on the environment but not related to the topic of people.
If there should be any potential adverse impacts identified during the due
diligence process with new suppliers, Scanfil acts through the supplier
audit process, where the process identifies and mitigates impacts. If
any adverse impacts are identified outside the due diligence process
25
of Scanfil’s value chain, the whistleblower channel is a useful element
in which adverse impacts can be reported by both internal and external
stakeholders.
1.6 Risk management and internal
controls over sustainability reporting
Scanfil’s process for sustainability reporting currently follows the
Group’s common principles and processes for statutory reporting, risk
management and internal control. The internal control process is based
on risk identification and analysis and focuses on the most material risks
that are identified. This is currently also the risk assessment methodology
that Scanfil is using.
The Sustainability Report is compiled by the Global Sustainability Team,
where Scanfil’s Chief Financial Officer oversees the reporting process.
Data is collected from all Scanfil sites, including its factories and office
locations, and is consolidated in Scanfil’s sustainability reporting platform
in a way that the data is traceable and auditable. The risks identified in
relation to the process of compiling the Sustainability Report include
the accuracy of information and the timing of reporting. Data providers
from each geographical site are responsible for ensuring that the site-
level information provided is correct. The Global Sustainability Team
supervises the accuracy of the consolidated data and then provides it
to the Group Accounting Team.
To ensure that the disclosed information is as accurate as possible and
delivered on time, Scanfil is currently developing a process and structure
that specify the roles, responsibilities, and reporting timelines for the
data collection. The plan for 2025 is to develop this process by utilizing
more features of the Position Green reporting tool.
1.7 Strategy, business model, and value chain
Strategy
Scanfil has divided its customers into three segments: 1. Industrial
2. Energy & Cleantech and 3. Medtech & Life Science. New sales
organizations is expected to drive organic growth, and improve customer
focus and industrial knowledge. This transformative change from a
generalist EMS to an industry-focused one occurred in the first half
of 2024.
In 2024, Scanfil also announced its new regional structure, which comes
into force as of January 1, 2025. New regions are the Americas, APAC,
Central Europe, and Northern Europe. The change should enable faster
decision-making, and drive organic and inorganic growth by bringing
decision-making closer to the region and factories.
Primarily, Scanfil provides its expertise and services to international
large and medium-sized companies with low or medium volumes and
complex products. In addition, Scanfil selectively serves smaller growth
companies.
Scanfil differentiates itself from its competitors mainly by having strong
capabilities in design-driven manufacturing (DDM), cost optimization, and
test development. Design-driven manufacturing is involved, especially in
the early phases of industrialization of a new product. Nearly 60% of the
costs are defined in this phase and, thereby, the cost competitiveness
of the product as well. In this phase, the use of components, materials,
and manufacturing methods are defined. In industrial products, the life
span of a product can be over a decade, and unless it is redesigned, the
cost structure remains unchanged. These costs are also revisited in a
cost optimization, which usually needs at least some level of redesign
and reconsideration of manufacturing methods. Cost optimization could
be driven by component obsolescence, which drives up prices and
lowers availability. Testing is an integral part of manufacturing, especially
among industrial customers with long product lifespans and high-quality
requirements. Scanfil offers its customers test-as-a-service packages
where testing is developed especially for the customer’s product.
Scanfil’s strategy is based on two growth aspects: acquisitive and
organic. It aims for 10% annual turnover growth considering both growth
components. In its acquisition strategy, Scanfil has three main criteria. (i)
Target(s) should include customers that fit Scanfil’s customer portfolio.
This means that the customer base of the acquired company does not
include much B2C business and customer relationships in the automotive
industry. It should add new customers, especially in Energy & Cleantech
and Medtech & Life Science. (ii) It should add to Scanfil’s geographical
footprint in regions with expected high economic growth and preferably
also serve the growth aspirations of Scanfil’s existing customers. North
America, including Mexico, Southeast Asia outside of China, and Eastern
Central Europe, have been identified as interesting. (iii) The target should
have a scale of >200 employees and growth potential.
Business model
Scanfil is a global EMS company that specializes in industrial customers
and low-to-mid-volume production. The advantages of purchasing
production services from an EMS company like Scanfil are mainly the
scale in manufacturing, materials and component procurement, logistics,
warranty and repairs, and value-added services like testing, design, and
the redesign of products. Scanfil has approximately 160 active customers
and produces approximately 10,000 different products per annum for
different companies. The EMS business is driven by the utilization rate
of machinery and people as well as purchasing power in materials and
supporting services, e.g., logistics.
Value chain and creation
In the value chain, an EMS company can be a subcontractor to an
Original Equipment Manufacturer (OEM), e.g., Tomra, which sells the
reverse vending machine to a supermarket or Danfoss, which supplies
a heat pump to cool and heat a building. An EMS can manufacture the
whole product for its customer or a part of it, such as a control panel or
a component, e.g., a PCBA.
26
Value is created in efficient procurement through purchasing power
and high-utilization manufacturing, which should be higher than the
customer’s own production. Many customers choose an EMS, especially
in circumstances where it should make significant investments in
manufacturing capabilities for a new product or expand the production
of an existing product.
The headcount per geographical area is presented in section 3.1 Own
workforce.
Scanfil has no products or services that are banned in certain markets.
Scanfil reports total revenue according to IFRS 8. Total revenue by
customer segments is reported in note 1.1 in the financial statement.
Since Scanfil’s business strategy does not relate to any controversial
sustainability matters like coal, oil, gas, chemicals production,
controversial weapons, cultivation or production of tobacco, there is
no corresponding revenue to be presented in this report.
Scanfil has specific sustainability related goals for suppliers:
•
80% of suppliers should have been assesed with a sustainability
rating by 2030
•
All new suppliers must sign the Supplier Code of Conduct to be able
to be a Scanfil supplier
•
50% of current suppliers must have signed the Supplier Code of
Conduct by 2025
Scanfil has specific sustainability related goals for its own workforce.
These targets are described in section 3.1.5.
Scanfil has made the sustainability assessment based on its generic value
chain, and has not adopted any assessment related to any significant
products and/or services, and significant markets or customer groups.
One of Scanfil’s corporate strategy goals for 2030 relates to the main
challenge of reducing the greenhouse gas (GHG) footprint. Read more
about this in section 2.1 Climate change. The largest contributor is the
emissions from the manufacturing of purchased goods. This is handled
by the upstream supply chain.
To achieve this long-term goal, Scanfil must understand the supply
chain and its challenges, and be able to select materials and suppliers
that can deliver on its goals.
An important activity to support this objective is to improve the data
quality for GHG calculations on purchased goods. The ongoing work
to implement real GHG emission data on all purchased goods into its
business system allows Scanfil to continuously improve. By having access
to this data, Scanfil gets the opportunity to choose purchasing materials
based on the component’s GHG content. This together with more
detailed supplier performance data, enables Scanfil to contribute refined
calculations on delivered products, that can be used for a customer’s
product life cycle assessments (LCA).
Scanfil does not currently report according to ESRS sectors. Since
Scanfil is an EMS company, it mainly produces electric products for its
customers. Thus, the only significant ESRS sector for Scanfil is currently
‘Electronics’.
Scanfil specializes in Business-to-Business customers and High-Mix
Low-Volume Manufacturing.
Scanfil offers a full range of electronic manufacturing services, starting
from prototyping to manufacturing and ending with a complete, fully
tested and packaged product. In mechanics, Scanfil offers flexible
manufacturing methods and expert sheet metal fabrication from sub-
assemblies to ready-made integrated units. One of the key strengths
is the ability to combine the manufacture of electronics and mechanics
and, in this way, build high-quality and technically advanced integrated
equipment.
Raw material
manufacturer
Component
manufacturer
Manufacturing
(EMS)
Seller (OEM) End-user
Product design Industrialization Manufacturing Maintenance End of life
27
Stakeholder Stakeholder engagement How engagement is organized Purpose of engagement How Scanfil takes the results into account
Customers
Customer experience surveys
Bi-annual customer surveys are sent by Scanfil's Sales and
Marketing Function.
Getting customers' input on Scanfil's ability to meet their
requirements and understand how satisfied the customer is. The
survey is anonymous.
The result of the study is analyzed and Scanfil sets an action
plan for improvement. Topics are addressed by the affected
departments.
Quarterly business review
Quarterly business meetings between Scanfil's Global Account
Manager and customers.
The meeting is to emphasize close cooperation between Scanfil
and its customer. The meetings ensure that the relationship and
cooperation develop and maintain in a positive way.
Scanfil's Account Manager takes care of the actions needed
and that they are initiated with the affected functions. The
Account Manager is also responsible for following up on actions
addressed to the customer.
Own workforce
Read more about how
Scanfil engages with its
own workforce in
section 3.1 Own workforce
Employee survey
Yearly employee surveys are managed by Scanfil's HR
Department.
Gain insight into Scanfil's workforce by measuring employee
engagement and their perception of the company.
The result from the yearly survey will be escalated down the
organization and each management area needs to establish
action plans for improvements.
Town hall meetings
Quarterly virtual town hall meetings for all employees organized
by the Group Management Team.
Inform and discuss with employees about operational status and
strategy.
Possible concerns are brought to management's attention.
Workers in the value chain
Read more about how
Scanfil engages workers in
the value chain in section
3.2 Workers in the value
chain
Supplier quarterly business
reviews
Quarterly meetings between Scanfil's Sourcing Function and
Scanfil's preferred suppliers.
The meeting is to emphasis a close cooperation between Scanfil
and it's suppliers. The meetings will secure that the relationship
and cooperation develop and maintain in a positive way.
Scanfil's Sourcing Category Manager takes care of the actions
needed and initiates actions with affected functions. The
manager is also responsible for following up actions addressed
to the supplier.
Supplier evaluations, balanced
scorecards
An evaluation of suppliers' performance indicators is done
quarterly.
The evaluation will give Scanfil's supplier a clear understanding
of how Scanfil experiences its performance and indicate areas
for improvements.
If suppliers do not meet targets, the supplier evaluation will result
in Scanfil requesting action plans for improvements. The action
plans shall be presented to Scanfil by the suppliers.
Supplier days/ supplier
webinars
A supplier sustainability webinar is held twice per year
Local supplier days are arranged by local sites (non-mandatory).
Sustainability webinars are held with suppliers that need to
improve their operations. The purpose is to communicate
Scanfil's requirements in terms of sustainability.
Supplier days are used to communicate and encourage suppliers
to cooperate and to improve their relationship with Scanfil.
Meetings are informative and do not result in any action plans.
Supplier audits
On-site supplier audits re done by following a pre-defined
questionnaire. All audits are initiated based on business needs,
regulatory requirements and/or upon customers requests. They
can also be organized on-site or at the global level.
The purpose is to get an evaluation of a supplier's ability to meet
Scanfil's requirements in terms of quality and sustainability.
The audit results lead to audit action plans. The suppliers need to
address the tasks and provide a time plan for how the results are
handled by them.
Scanfil Management Management review meeting
Monthly report meetings with Scanfil's Group Management
Team, where sustainability is part of the agenda.
The meeting is held to ensure that Scanfil meets its targets in
terms of sustainability.
The Group Management Team is responsible for assigning
resources to handle the requirements and will track that targets
are met. If targets cannot be met, measures will be taken by the
Group Management Team in order to mitigate potential risks.
Shareholder/investor Meeting notes
Active and open dialog one-on-one and group meetings, factory
visits, Capital Markets Days, Annual General Meetings, and
answering emails and phone inquiries in a timely manner.
Provide investors with accurate information about Scanfil's
financials, strategy and goals for investment decisions in a timely
manner.
To meet the expectations of its investors and shareholders,
Scanfil is continuously developing its Investor Relations- and
Financial Reporting processes.
Authorities Laws/ directives No direct engagement (one-way engagement)
Scanfil monitors updates regularly to understand, prepare and
act on new laws and governmental laws and directives.
New laws and directives that affec Scanfil's processes and
business, must be handled, and affected functions must
immediately be informed. This is handled both on a local level to
secure local initiatives and also from a global perspective when
needed.
28
Before manufacturing begins, several preliminary steps must be
recognised and completed by the EMS company. This includes
gaining a thorough understanding of the customer’s product, technical
requirements, specifications, and expectations. Once these requirements
are gathered, a feasibility study should be conducted.
When a detailed cost breakdown is done, including material, labor, tooling,
test equipment, and overhead costs, the contract will be finalized. The
final agreement shall include all negotiation terms, final agreements,
outline deliverables, timelines, and payment terms.
The workforce consists of skilled workers essential for manufacturing and
testing. The workers should be put in place before starting manufacturing
and the production can start when components and purchased materials
are in place.
Products: A diverse range of electronic, PCBAs, boxbuilds, and system
integration solutions, based on customer specifications.
Customer benefits: Enhanced production efficiency, cost savings (no
need for investments in manufacturing capabilities), and access to value-
added services such as testing, warranty, and repairs.
Investor benefits: Stable revenue streams from a broad customer base
and efficient utilization of resources. High return on investment and equity.
Stakeholder benefits: Reliable supply chain partnerships and
contributions to local economies through employment and business
activities. A financially solid company is a reliable investment for its
financiers (shareholders and banks).
Upstream value chain
Scanfil’s upstream value chain consists of suppliers of different sizes
and importance. Scanfil focuses on consolidating procurement with
its Preferred and Key suppliers, but suppliers can also be directed by
the customers. All purchases related to the manufacturing of products
adhere to the specifications provided by the customer. This means that
a high number of suppliers must be managed by Scanfil’s procurement.
Global processes are used for handling the purchase and all activities
are managed and stored in Scanfil’s Integrated Management System.
This enables the opportunity to consolidate and streamline the supplier
portfolio.
In addition, all suppliers are monitored and evaluated where continuous
communication ensures timely and cost-effective sourcing.
Downstream value chain
The downstream value chain solely consists of Business-to-Business
customer relationships, where industrial customers require electronic
manufacturing services from Scanfil. This means that Scanfil produces
products based on customers’ specifications and are customers of
Scanfil’s customers. Scanfil works closely with its own customers to
understand their needs based on product specifications and then provide
tailored solutions suitable for the use of the end-users.
Scanfil’s position in the value chain
Scanfil is positioned at the intersection of the upstream and downstream
value chain.
Scanfil plays a crucial role in transforming materials and components
from suppliers into finished products for customers. This position allows
Scanfil to leverage economies of scale, optimize production processes,
and offer comprehensive services that add value to customers.
1.8 Interests and views of stakeholders
Scanfil’s stakeholders are involved in the company’s sustainability work
in various ways. The table in the section 1.9 lists each stakeholder, how
the engagement with them occurs and how it is organised, as well as
the purpose and how its outcome is considered in Scanfil’s strategy
and business model. During the development of the Double Materiality
Assessment (DMA), Scanfil sent out stakeholder surveys to the majority
of its main stakeholders to receive their views and interests on various
material and financial impacts throughout the Scanfil value chain. The
stakeholders listed financial and material impacts following the ESRS
list of sub-sub topics. Each stakeholder scored a level of criticality for
these impacts according to their views and interests. The input was later
used as a baseline throughout the DMA process and its finalization. The
final DMA was communicated in 2024 to the Group Management Team
and the Board of Directors and has been used as input into the Annual
Review and update of Scanfil’s strategy and business model.
No amendments have been made to Scanfil’s strategy and business
model since there has not been any input from its stakeholders that
affects the current model and strategy. Thus, no plan to change the
current set up is presented.
As stated above,stakeholder engagement is a key component of the
DMA and has been embedded throughout the whole DMA process to
consider their interests and potential impacts.
Own workforce
Scanfil’s strategy indicates that culture and people are the fundamental
enablers for any strategically important deliverables.
The strategy creation and follow-up process involve input from Scanfil’s
workforce. Each function performs strategic workshops involving the
function’s managers from factories as well as global experts. These
are preceded by factory strategy work where key employees are invited
to share their observations, input received from external stakeholders
(customers, suppliers, subcontractors, other partners) as well as their
own ideas for development. Utilizing the workforce’s knowledge and
expertise is a crucial asset. Similarly, the business model is monitored
for its efficiency and competitiveness as well as the impact it generates.
29
Strategic growth through geographical expansion and acquisitions
brings the necessity to investigate if there are any risks related to child
labor or forced labor. As human rights standards are crucial for Scanfil’s
culture and business, none of the growth opportunities that would hold
these kinds of risks would be accepted.
The strategic approach to efficiency expressed by productivity-focused
initiatives as well as the Dream Factory concept supports developing
high standards of working conditions. Those are meant as the ones that
ensure safe and effective workplaces for employees as well as secure
employment characterized by adequate wages, optimized work time,
and a healthy work-life balance. All of that is provided in a respectful
environment.
The company strategy is openly shared with its workforce by the Group
Management Team through quarterly town hall meetings and the monthly
Scanfil Way Bulletin distributed to all factories. Common practices are
regular meetings with the whole crew as well as channeled meetings
and discussion forums with employee representatives, including unions
and works councils. Factories also use digital communication platforms
to keep the workforce engaged.
The Scanfil business model definition with its drivers, is part of the
onboarding process for employees. The company believes that as a
service provider, it is crucial to continuously increase business awareness
and enhance the engagement of its workforce. Only engaged individuals
can provide high-quality service to the company’s customers. Therefore,
employees are informed about the business drivers that may impact
them, such as:
•
Variations in volumes of customer demand and periodical fluctuation
•
Manufacturing processes that require different technologies and,
therefore, different competencies from Scanfil’s workforce
•
Cost plus price model that calls for efficient cost management to
ensure competitiveness.
Workers in the value chain
As for Scanfil’s own employees, workers throughout the value chain
play a crucial role in supporting Scanfil’s strategy. Culture and people
are fundamental enablers to reach Scanfil’s deliveries of high efficiency
and supply chain excellence. This includes all workers in the value chain,
from suppliers of raw materials and manufacturers of components to
EMS production, but also for work done with Scanfil’s customers and
during the transportation of goods. To reach their full potential in the
value chain, workers must be able to perform their duties in a healthy
and safe environment, in which human rights, diversity and inclusion
are respected. The Scanfil way is to explain the business model and
emphasize the importance of Supply Chain Excellence. This is a strategic
enabler of sustainability. Following Scanfil’s value chain, workers in the
value chain can be found in all steps. This means workers who are in
direct contact with Scanfil, such as tier 1 suppliers, transport companies,
and customers. Scanfil’s upstream suppliers are normally distributors
of electronic components, but can also be manufacturers of machined
components, plastic components, PCBs, and cables. For sheet metal
manufacturing, Scanfil works with suppliers of metal blanks.
1.9 Material impacts, risks and
opportunities, and their interaction with
the strategy and business model
The identification and assessment of material
impacts, risks, and opportunities
Scanfil’s sustainability-related material impacts, risks, and opportunities
have been identified in a Double Materiality Assessment based on
the principles of Scanfil’s Risk Management Process. The key goal is
to identify and assess the risks, threats, and opportunities potentially
significant to the implementation of Scanfil’s values and strategy and to
the achievement of long-term targets as well as to identify and assess
Scanfil’s impacts on society and the environment. In addition to Scanfil’s
own operations, the identification and assessment of impacts, risks,
and opportunities encompasses the upstream and downstream value
chain and any other parties that Scanfil’s operations affect. Scanfil’s
Risk Management Process and its responsibilities are described in
more detail in the Corporate Governance Statement.
Scanfil updated its materiality assessment of sustainability matters
in 2024. The updating of the materiality assessment proceeded in
two phases. In the first phase, in 2023, the views of external and
internal stakeholders on Scanfil’s real and potential impacts, risks,
and opportunities were collected through interviews and surveys. The
stakeholders interviewed included the company’s own employees as
well as its customers, investors, and goods and service suppliers. Based
on the material collected, the impacts, risks, and opportunities were
prioritized in management workshops. The prioritization was based on
double materiality, meaning that the workshop participants paid attention
to the company’s impacts on the environment, society, employees, and
other stakeholders, as well as to the qualitative and financial risks and
opportunities for Scanfil’s business related to sustainability matters. The
likelihood and scope of the impact, risk, or opportunity were considered
in prioritization.
The next table gives a description of Scanfil’s material impacts, risks and
opportunities resulting from Scanfil’s materiality assessment, including
a description of where in its business model, its own operations, and its
upstream and downstream value chains these material impacts, risks
and opportunities are concentrated. A description of each material
topic’s specific impacts, risks and opportunities are disclosed for each
topical ESRS. Scanfil has not yet anticipated the current and expected
effects of the impacts, risks, and opportunities with respect to the
company’s strategy and business model. Scanfil plans to analyze the
anticipated effects in 2025.
Each material topic’s negative or positive impact on people and/or the
environment, including the expected time horizon, is disclosed under
each relevant chapter in this Sustainability Statement.
30
The material impacts originate from Scanfil’s business model as an
EMS company.
Scanfil has not identified any significant risk of a substantial adjustment
to the reported values of assets and liabilities in the relevant financial
statements during the next annual reporting period.
Scanfil has not yet conducted an analysis of the resilience of its
strategy and business model regarding its material impacts, risks and
opportunities except for the information disclosed in section 1.8. Material
impacts, risks and opportunities, and their interaction with the strategy
and business model.
Since the DMA was conducted for the first time in 2024, the impacts,
risks and opportunities that are presented in this report have not been
changed from last year.
Scanfil’s only additional entity-specific disclosure, other than ESRS
Disclosure Requirements, is regarding cyber security which is disclosed
in the Sustainability Statement in section 4. Governance.
31
Topic Sub-topic
Sub-sub
topics Description
Value chain
direction
Potential and
actual impacts
Time horizon
Nature of
activities
or business
relationships
Where in the
business model
Location
Impact
Materiality
Financial
Materiality
E- ENVIRONMENT
Climate change
Climate
change
adaptation
Scanfil operates across four continents, where energy consumption for facility
heating and cooling is significant, especially in warmer regions, e.g., China and
the US, and colder regions, e.g., Nordics.
Own
operations
Actual -
Own activities: Adapting own
facilities to climate change.
Manufacturing,
Facilities
Local Material
Not
Material
Climate
change
mitigation
Scanfil operates globally, focusing on energy-efficient, fossil-free solutions,
especially in warmer regions e.g. China and the US, where cooling demands
are high. While stable conditions are expected elsewhere, uncertainties around
climate change prompt a commitment to sustainability and increased fossil-free
energy use.
Upstream,
Own
operations,
Downstream
Actual -
Own activities: Greenhouse gas
emissions from procurement and
usage of energy and combustion
of fuels at own facilities.
Manufacturing,
Facilities,
Suppliers,
Logistics
Global Material
Not
Material
Energy
Scanfil operates worldwide, prioritizing energy-efficient, fossil-free solutions,
where heating and cooling needs are high. Commitment to sustainability drives
increased use of fossil-free energy, despite stable conditions elsewhere.
Own
operations
Potential
Short,
medium
and long
term
Own activities: Need of energy for
manufacturing at facilities.
Manufacturing Local Material Material
Pollution
Substances
of very high
concern
Scanfil complies with REACH regulations. This commitment ensures product
safety, environmental protection, and customer trust. Scanfil collaborates with
suppliers to drive a cleaner electronics industry.
Upstream,
Downstream
Actual -
Business relationship: Product
specifications drives the need
and purchase of components that
can contain substances of very
high concern.
Customer
specification
Local Material
Not
Material
Circular economy
Resource
inflows,
including
resource use
Resource inflows represent the acquisition of materials, energy, and services
necessary for Scanfil's operations. The efficient and sustainable use of these
resources is critical to minimizing environmental impact and ensuring long-term
viability.
Upstream Potential
Medium
and long
term
Business relationship: Product
specification that may include
non-renewable resources.
Customer
specification
Local Material Material
Resource
outflows
related to
products and
services
Renewable resources like water, plants, and wind energy can replenish naturally.
Non-renewable resources like fossil fuels and minerals cannot.
Sustainable or regenerative sources minimize environmental harm and ensure
long-term availability.
Downstream Actual -
Business relationship: Customer
order drives resource outflows of
products and services.
Customer orders Local Material
Not
Material
Waste
Effective waste management benefits the environment, economy, and society.
It reduces pollution, conserves resources, and creates jobs. By reducing waste,
Scanfil improves public health and creates cleaner communities.
Downstream Actual -
Own activities: Hazardous and
non-hazardous waste generated
via manufacturing activities.
Customer
specification
Local Material Material
32
Topic Sub-topic
Sub-sub
topics Description
Value chain
direction
Potential and
actual impacts
Time horizon
Nature of
activities
or business
relationships
Where in the
business model
Location
Impact
Materiality
Financial
Materiality
S SOCIAL
RESPONSIBILITY
Own workforce
Working
conditions
Secure
employment
Secure employment at Scanfil fosters trust and stability, boosting morale and
productivity. The commitment to job security strengthens the company’s
workforce and enables it to focus on innovation and quality.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil follows
country regulations on secure
employment and enhances it by
applying own policies.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Working time
Effective management of working time enhances productivity and employee
well-being. Balanced working hours reduce burnout and absenteeism, leading
to higher morale and retention. Compliance with labor laws minimizes legal
risks and potential fines. Overall, an effective working time approach improves
operational efficiency, employee satisfaction, and company reputation, driving
profitability and sustainable growth.
Own
operations
Actual
Short and
medium
term
Own activities: Scanfil follows
country regulations on working
time and enhances it by applying
own policies, e.g., on remote
work.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Adequate
wages
Adequate wages ensure financial stability and workforce loyalty, strengthening
morale and productivity. Fair compensation strengthens the team and fosters
innovation and quality.
Own
operations
Actual
Short
term
Own activities: Scanfil follows
country regulations on minimal
wage and enhances it by applying
own Salary Regulations Process.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Social dialog
Social dialog fosters collaboration and mutual understanding between
management and employees. Open communication channels promote
transparency and trust, driving innovation and problem-solving.
Own
operations
Actual
Short
term
Own activities: Scanfil cultivates
open dialog culture and supports
that through own processes.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Work-life
balance
Without a good work-life balance, employees may experience increased
stress, burnout, and dissatisfaction. This can lead to higher turnover rates,
increasing recruitment and training costs. Productivity and quality of work may
suffer, affecting client satisfaction and company reputation. Moreover, health
issues arising from chronic stress can result in higher healthcare costs and
absenteeism.
Own
operations
Potential
Short and
medium
term
Own activities: Scanfil monitors
workload and work-life balance
through in-house activities.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Health and
safety
Health and safety are top priorities at Scanfil. Risks are minimized through safety
protocols, training, and risk assessments. By fostering a safety culture, Scanfil
protects its own employees and demonstrates a commitment to corporate
responsibility and operational excellence.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil follows
country regulations on work
safety and enhances it by internal
experts forum Safety Council.
Manufacturing,
Sales & Marketing,
Procurement
Local Material Material
Equal
treatment and
opportunities
for all
Gender
equality and
equal pay for
work of equal
value
Gender equality and equal pay ensure fairness. It promotes a just society,
boosts the economy, and improves well-being for all. By valuing everyone
equally, Scanfil creates a better future.
Own
operations
Potential
Short,
medium
and long
term
Own activities: Scanfil
ensures equal treatment and
opportunities for all in its policies.
Manufacturing,
Sales & Marketing,
Procurement
Local Material Material
33
Topic Sub-topic
Sub-sub
topics Description
Value chain
direction
Potential and
actual impacts
Time horizon
Nature of
activities
or business
relationships
Where in the
business model
Location
Impact
Materiality
Financial
Materiality
Own workforce
Training
and skills
development
Continuous training improves safety, compliance, and environmental impact.
It fosters employee growth and satisfaction, leading to higher retention and
efficiency. This supports Scanfil’s sustainability and competitiveness.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil offers
internal and external training.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Employment
and
inclusion of
people with
disabilities
Inclusive hiring benefits everyone. It boosts diversity, innovation, and
productivity. By creating a welcoming workplace, Scanfil attracts top talent,
improves employee morale, and enhances the company’s reputation.
Own
operations
Potential
Medium
term
Own activities: Inclusion of
people with disabilities is Scanfil
in-house activity.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Diversity
Diversity drives innovation at Scanfil. A diverse workforce fosters creativity,
improves employee satisfaction, and attracts top talent. It also enhances
the reputation and attracts customers and investors. Ultimately, diversity
contributes to the company’s long-term success.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil’s company
culture and policy promotes
diversity.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Other work-
related rights
Child labor
Child labor is unacceptable at Scanfil. It would damage the reputation, lead to
legal penalties, and harm the workforce. Preventing child labor is crucial for
integrity and long-term success.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil follows
country regulations which
eliminates risk of child labor.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Forced labor
Forced labor is unacceptable at Scanfil. It would damage the reputation, lead
to legal penalties, and harm the workforce. Preventing forced labor is crucial for
ethics, legality, and long-term success.
Own
operations
Actual
Short,
medium
and long
term
Own activities: Scanfil follows
country regulations which
eliminates risk of forced labor.
Manufacturing,
Sales & Marketing,
Procurement
Local Material
Not
material
Workers in the value
chain
Working
conditions
Health and
safety
At Scanfil, the health and safety of employees, contractors, and stakeholders
is a top priority. While striving to eliminate risks associated with manufacturing,
accidents, injuries, and illnesses can still occur. To mitigate these risks, Scanfil
implements robust safety protocols, provides comprehensive training, and
conducts regular assessments. By fostering a culture of safety awareness,
promoting ergonomic practices, and investing in protective equipment, Scanfil
creates a safer workplace and safeguards the well-being of its workforce. The
commitment to health and safety reflects Scanfil’s dedication to corporate
responsibility, employee welfare, and operational excellence, ultimately
contributing to a more sustainable and resilient organization.
Upstream Actual Long term
Business relationship:
Relationship with supplier partner
guided by International standards
for Labor and human rights (ILO
and UN).
Suppliers Global Material Material
34
Topic Sub-topic
Sub-sub
topics Description
Value chain
direction
Potential and
actual impacts
Time horizon
Nature of
activities
or business
relationships
Where in the
business model
Location
Impact
Materiality
Financial
Materiality
G - GOVERNANCE
Business conduct
Corporate
culture
Scanfil values and cherishes diversity, equality, and inclusion. The value
“Achieving Together” highlights how being one team globally is emphasized,
how diversity is benefited from: ideas are shared, respect and reliance on each
other are emphasized, collective success is aimed for, and how every individual
is respected with no tolerance for bullying, harassment, or discrimination.
Own
operations
Actual -
Own activities and business
relationship: Corporate culture
and customer business ethical
requirements are driven by the
Code of Conduct.
Manufacturing,
Sales & Marketing,
Procurement
Global Material
Not
Material
Management
of
relationships
with suppliers
including
payment
practices
By managing supplier relationships and payment practices effectively,
businesses can significantly impact their operational efficiency and financial
health. Timely payments strengthen trust, foster loyalty, and attract high-quality
suppliers, ultimately leading to a more stable and reliable supply chain. Fair and
ethical payment practices also contribute to social responsibility, supporting
fair wages and working conditions. Conversely, delayed or unfair payments can
strain relationships, leading to disruptions, quality issues, and increased costs.
Upstream Potential
Short and
medium
term
Business relationship:
Relationships with suppliers,
including payment practices
are a part of healthy supplier
relationships.
Procurement,
Suppliers
Global Material
Not
Material
Corruption and
bribery
Prevention
and
detection,
including
training
Effective prevention and detection of corruption and bribery are essential
for maintaining organizational integrity and building stakeholder trust. By
implementing robust policies, procedures, and controls, businesses can
significantly reduce the risk of legal and financial penalties. Regular audits
and compliance training further strengthen these efforts, fostering a culture of
transparency, ethics, and accountability.
Upstream,
Own
operations,
Downstream
Potential
Short,
medium
and long
term
Own activities and business
relationships: Corruption and
bribery can have a financial
impact on the business. These
incidents can result in increased
regulatory scrutiny and loss of
business opportunities.
Sales & Marketing,
Procurement
Global Material
Not
Material
Cybersecurity
Cybersecurity breaches can have severe financial consequences. Direct losses
include theft, fraud, and ransom payments. Legal and regulatory penalties arise
from data breaches and non-compliance. Reputational damage can lead to
customer loss and reduced revenue. Operational disruptions cause downtime
and productivity loss. Finally, insurance premiums may increase, further
impacting costs.
Upstream,
Own
operations,
Downstream
Potential
Short,
medium
and long
term
Own activities and business
relationships: Cybersecurity
breaches can have direct
financial losses, legal and
regulatory costs, operational
disruptions and reputation
damage.
Manufacturing,
Sales & Marketing,
Procurement
Global Material
Not
Material
35
Risks for Scanfil Group Management
Acute
↓
Storms, fires, and floods cause disruptions in Scanfil’s production.
Scanfil’s factories are not directly in any risk area, even if risks are considered.
Supply chain disruptions: If a supplier’s production facilities are in vulnerable
areas, extreme weather events may interrupt their ability to deliver goods and
services. This can cause delays and increased costs for the business.
Scanfil prepares for the risks arising from extreme weather by implementing comprehensive
resilience strategies across its global operations. These include fortifying infrastructure to
withstand extreme weather and adopting relevant fire prevention systems. Scanfil is managing
risks by diversifying suppliers and establishing rapid response protocols. Furthermore, Scanfil
invests in continuous training and awareness programs for employees and collaborates with
local authorities to ensure preparedness. These proactive measures ensure business continuity
while safeguarding the employees, assets, and the environment.
Chronic
↓
Increasing temperatures can strain cooling systems in Scanfil’s
manufacturing plants, reduce productivity, and harm workers’ health.
Adequate cooling and ventilation systems are implemented. Scanfil continues to develop and
implement heat-resistant technology, provide adequate hydration and rest periods for workers,
and adapt work schedules to cooler times of the day.
Material physical risks and their management
Climate change
Scanfil has not conducted any resilience analysis or climate scenario
analysis of its strategy and business model in relation to climate change.
Consequently, Scanfil cannot report the scope, method or results of
such an analysis.
Although Scanfil has not conducted these types of analyses, it has
assessed its exposure to physical climate-related hazards using a
Disaster Evaluation Matrix, which considers risk severity and likelihood
but lacks specific time horizons and high-emission scenarios. The
assessment is based on local knowledge. For transitional climate-related
risks and opportunities, Scanfil has initiated a process to identify climate-
related transition risks and opportunities within its operations and value
chain. However, no climate scenario analysis has been conducted for
this matter.
The resilience analysis will be conducted once the process to identify
physical and transitional climate-related risks and opportunities
are finalized. For further information, see section Description of the
processes to identify and assess the material climate-related impacts,
risks, and opportunities. The table below presents the results from the
initial assessment of material physical climate-related hazards.
36
Own workforce
The material impacts, risks, and opportunities related to the company’s
own workforce have been identified in a Double Materiality Assessment
based on the principles of the company’s Risk Management Process.
Scanfil’s Risk Management Process and its responsibilities are described
in more detail in section 1.6 Risk management and internal controls over
sustainability reporting. The materiality assessment process is described
in the section Description of the process to identify and assess material
impacts, risks, and opportunities.
The strategic initiatives chosen by the Human Resources function for
2024 are focused on three pillars:
• Scanfil Way culture roll-out addressing updated Scanfil core values
as well as their practical application to workforce’s behaviors.
•
Productivity support by HR-driven activities, designed and driven
according to local needs.
•
Internal job market to roll-out cross-factory resource sharing and
offer attractive personal development opportunities for individuals.
Segment
focus
Scanfil Way
Strategic Enablers
Culture and People
Growth
Dream
Factory
Productivity Supply chain
excellence
Geographical
expansion
Segment
focus
Offering Acquisitions
Efficiency
Financing Sustainability IT/Data Risk managementM&A Investor relations
37
Material sub-sub topics Impacts Risks and opportunities for Scanfil Management
Working conditions
• Secure employment
• Working time
• Adequate wages
• Social dialog
• Work-life balance
• Health and safety
↑
Actual:
Scanfil ensures secure employment, which positively impacts employee
engagement and productivity. It has a powerful positive impact on people’s
sense of safety, which is a fundamental basic human need. Scanfil pays
adequate wages, which ensures good living standards for employees and
their families.
Offering flexible work time and remote work schemes for positions where
the nature of work makes it possible, as well as prioritizing work-life balance,
enables employees to better organize their working time in a way that
supports their family-related duties.
Social dialog, which is a vital part of Scanfil’s collaboration culture,
provides empowerment for employees, helps them grow in their business
awareness, and enhances their engagement.
Potential:
Scanfil observes the opportunity to support employees’ mental health
through professional EAP (Employee Assistance Programs) differentiating
the company from other employers.
↑
Opportunity:
A high standard of workplace safety positively impacts employees
engagement and loyalty, leading to increased productivity and reduced
turnover and sick leave costs. This, in turn, can boost productivity, reduce
employee turnover, and lower costs associated with sick leave. Moreover,
this would enhance Scanfil’s reputation and elevate its standing in the
employer market within its operating areas. As a result, it would facilitate
the recruitment of desired professionals and help retain talent within the
company.
• Scanfil follows all the country-specific legal requirements to ensure high-
quality working conditions. Additionally, both the development ideas
driven from the Employee Engagement Survey as well as from the Safety
Council meetings are shared between factories as best practices to
continuously enhance company standards, even exceeding the country’s
regulations.
• In all of Scanfil’s operating countries, the requirement for minimum
required wages is met. Furthermore, Scanfil monitors market
remuneration to be able to offer attractive salaries and annually review its
own workforce’s wages.
• Scanfil offers flexible or hybrid/remote work schemes for the positions
where the nature of the work allows it.
• Health and safety aspects are managed in line with the country’s
regulations as well as manufacturing standards for the technologies used.
The Safety Council monitors and enhances the sharing of best practices
on preventive measures.
• The well-being of employees is supported both by monitoring the
workload in each department as well as by promoting healthy habits and
offering sports or leisure activities.
• The dialog with employees and their representatives is executed
through both need-based meetings benefiting from a direct and open
communication culture as well as through structured processes like
Employee Engagement Surveys, and regular meetings with unions or
workers councils.
↓
Actual:
Restricting remote work possibilities is negatively impacting employees’
satisfaction in some locations where other employers widely offer it (e.g.
Poland).
Any work-related accident occurring on Scanfil premises can negatively
impact employee health. Accidents can happen at all locations. However,
these incidents have been very minor with no severe impact on the
employee’s health. There have not been any fatalities, but one serious
accident requiring hospitalization in 2024.
Potential:
Improper working conditions could negatively impact on the health of
employees on the job as well as the well-being of their families if secure
living conditions are not ensured. Furthermore, insecure employment terms
or disrespectful dialog and communication practices could lead to chronic
stress, impacting employee health and potentially damaging the company’s
reputation.
↓
Risk:
A high rate of sick leave incurs costs associated with absenteeism.
Additionally, periods in which absent employees need replacement lead to
competence gaps and risks of lower service quality as well as increased
overtime costs for other employees covering the tasks. In cases of long-
term absences, this may require additional training for stand-in staff.
38
Material sub-sub topics Impacts Risks and opportunities for Scanfil Management
Equal treatment and opportunities for all
• Gender equality and equal
pay for work of equal value
• Training and skills
development
• Employment and the
inclusion of persons with
disabilities
• Diversity
↑
Actual:
The diversity supported by Scanfil’s corporate culture brings exclusive
benefits to the business owing to higher creativity and the ability to see
the wider context of business situations as well as attract a wider range of
diverse customers. The openness for this is cultivated in the company’s
core values as well as the Scanfil Way leadership. They both encourage
empathy which supports cross-cultural acceptance among employees and
naturally enhances equal treatment and opportunities for all. The training
and development opportunities are available to all employees, regardless of
their personal characteristics.
Potential:
Increasing diversity at Scanfil, especially in China and Europe where the
sites are generally (very) homogeneous, would have a significant positive
impact on the social acceptance and understanding of both diverse
cultures and backgrounds, as well as different personal perspectives.
↑
Opportunity:
Well-developed equal treatment standards enhance Scanfil’s reputation as
an employer, attracting top talents from diverse backgrounds who are eager
to work for Scanfil. This, in turn, contributes to the company’s innovation and
overall performance.
• Competence and skills development are monitored in both the annual
appraisal process and monthly skills matrix reviews.
• Training is offered and done both through internal and external trainers.
Development opportunities are equally available for all employees,
independent of gender.
• Diversity in the management is actively searched through both external
recruitment and structured succession planning.
• Scanfil adapts selected workplaces for disabled persons.
↓
Actual:
Scanfil can offer a limited number of positions for individuals with
disabilities, as the majority of roles require high precision and full mobility.
Potential:
A highly homogeneous workplace can lead to the isolation of individuals,
fostering a lack of understanding and tolerance for alternative views and
approaches, which can fuel conflicts. In such an environment, inequality in
the treatment of the workforce lowers employee morale, limits development
opportunities for underrepresented groups, and widens gaps in pay and
living standards.
↓
Risk:
Retaining experienced professionals becomes challenging if they are
not provided with opportunities for growth and a salary that distinguishes
them from junior employees. Scanfil plans to invest in a new salary
grading system to monitor pay gaps, and if discrepancies are identified,
adjustments will be made to address these inequalities. This could lead to
higher salary costs for the company.
Other work related rights
• Child labor
• Forced labor
↓
Actual:
Scanfil upholds high ethical standards in its employment policies, ensuring
that neither child labor nor forced labor is tolerated.
Potential:
If child labor or forced labor were observed at Scanfil, it would have a
detrimental impact on people’s lives. Child labor disrupts the natural course
of human development, while forced labor infringes on the basic human
right to freedom. These situations would also negatively affect the families
of the employees involved.
↑
n/a • Scanfil operates in countries where there are high-quality standards for
employment practices. The birth date is one of the measures that is
mandatorily validated prior to the start of the employment. All employment
relationships are on a voluntary basis as all applications are employee-
initiated.
39
In the section, 3.1 Own workforce, Scanfil discloses the required
information for its own workforce, which covers all employees and
non-employees in its own operations. The impacts related to workers in
the value chain are described in section 3.2 Workers in the value chain.
The Scanfil workforce mainly consists of Scanfil contracted employees
comprising 86% of the total workforce. The remaining workforce is
third-party contracted employees. The participation of self-employed
delivering services to Scanfil is minimal and globally totals less than
1% of its workforce. The company’s goal is to incorporate third-party
employees to the greatest extent to the work standards and company
culture, providing seamless services to the customers.
The identified potential negative impacts refer to working conditions,
equal treatment and opportunities for everyone, and other work-related
rights like child labor or forced labor. None of those can be seen as
widespread or systematic in Scanfil operations.
Within working conditions, Scanfil observes that restricting remote work
possibilities is negatively impacting employee satisfaction in some
locations where other employers widely offer it (e.g. Poland).
Any work-related accident occurring at Scanfil premises can negatively
impact employee health. Accidents can happen in all locations. However,
the incidents which occurred in 2024 have been very minor, with no
severe impact on the employee’s health. There have been no fatalities
in 2024, but there was one serious accident requiring hospitalization.
Scanfil can offer a limited number of positions for individuals with
disabilities, as the majority of roles require high precision and full mobility.
This is negatively impacting its capability of employment and inclusion
of persons with disabilities.
Through appropriate risk management, Scanfil has identified potential
negative impacts that should be prevented. One impact is improper
working conditions, which could adversely affect employee health
and the well-being of their families if secure living conditions are not
ensured. Furthermore, insecure employment terms or disrespectful
dialog and communication practices could lead to chronic stress,
impacting employees health and potentially damaging the company’s
reputation. Another potential impact could be a highly homogeneous
workplace, which can lead to the isolation of individuals, fostering a lack
of understanding and tolerance for alternative views and approaches,
which can fuel conflicts. In such an environment, inequality in the
treatment of the workforce lowers employee morale, limits development
opportunities for underrepresented groups, and widens gaps in pay and
living standards. Scanfil upholds high ethical standards in its employment
policies, ensuring that neither child labor nor forced labor is tolerated. It
would have a detrimental impact on people’s lives. Child labor disrupts
the natural course of human development, while forced labor infringes on
the basic human right to freedom. These situations would also negatively
affect the families of the employees involved.
Scanfil ensures secure employment for its own workforce; all employees
hold legally valid work contracts. Scanfil pays adequate wages which
ensures good living standards for the employees and their families. The
company performs annual salary reviews and benchmarking analysis
towards the local markets to ensure optimal pay development. The
company uses third-party work agencies to hire employees, which
ensures both higher stability and security of employment for its own
employees as well as flexibility for the business, needed to address
the periodic demand fluctuations. The third-party providers are
thoroughly verified on the employment conditions offered to Scanfil’s
non-employees.
Offering flexible work hours and remote work schemes for the positions
where the nature of work makes it possible, as well as prioritizing work-
life balance, enable employees to better organize their working time in
a way that supports their family-related duties.
Scanfil continuously improves its working conditions as part of both
strategic efficiency-centric projects, for example Dream Factory or
Lean Six Sigma certification projects performed by its own employees
as well as working conditions development initiatives driven from the
input of employee engagement surveys inputs.
Social dialog between the employer and the workforce is a common
practice at Scanfil. It is a vital part of the company’s collaboration culture
and provides empowerment for the employees by helping them grow
in their business awareness and enhancing their engagement. It is
performed through the regular meetings of Factories’ Management
Teams with employees representatives (both formed in unions or works
councils as well as simply nominated by the crew), periodic meetings
with the whole factory personnel, and quarterly town hall meetings led
by the company’s Group Management Team.
Scanfil promotes diversity in its operations, e.g., through the DEI (Diversity
Equity Inclusion) Forum. This community meets online on a quarterly
basis to discuss the best practices on how to enhance diversity as
well as increases awareness and understanding regarding diverse
cultures. Another initiative that takes place monthly is the SWAT (Scanfil
Women Appreciation Team) meetings that are focused on enhancing
opportunities for professional growth and development of women. The
community explores new ways to support talented individuals, e.g., by
mentoring as well as encouraging recognition and sharing achievements
of females who are still in the minority in higher positions.
Scanfil effectively performs internal campaigns on well-being and safety
which promote good habits among employees.
A high standard of workplace safety positively impacts employee
engagement and loyalty, leading to increased productivity and reduced
turnover and sick leave costs. This, in turn, would boost productivity,
reduce employee turnover, and lower costs associated with sick leave.
Furthermore, this would enhance Scanfil’s reputation and elevate its
standing in the employer market within its operating areas. As a result, it
would facilitate the recruitment of desired professionals and help retain
talent within the company.
40
At the same time, a high sick leave rate generates absenteeism costs.
Additionally, periods in which absent employees need replacement
lead to competence gaps and risks of lower service quality, as well as
increased overtime costs for other employees covering the tasks. In
cases of long-term absences, this may require additional training for
the stand-in staff.
Well-developed equal treatment standards enhance Scanfil’s reputation
as an employer, attracting top talents from diverse backgrounds who
are eager to work for Scanfil. This, in turn, contributes to the company’s
innovation and overall performance.
At the same time, retaining experienced professionals becomes
challenging if they are not provided with opportunities for growth
and a salary that distinguishes them from junior employees. Scanfil
plans to invest in a new pay equity software to monitor pay gaps, and if
discrepancies are identified, adjustments will be made to address these
inequalities. This could lead to higher salary costs for the company.
Scanfil’s commitment to environmental and sustainability standards is
very serious and thus executed thoroughly. Employees are expected
to perform the mandatory training delivered by Scanfil and follow the
sustainability standards. In case of a serious breach of these standards,
disciplinary actions can be applied.
The enhancement of travel policy and business meeting guidelines
which prioritize virtual collaboration channels requires employees to
develop new skills, both in the use of advanced technologies as well as
professional and impactful communication techniques. It is observed that
managers face challenges when leading remote teams and having limited
possibilities to travel for face-to-face meetings. They are supported with
training and mentoring.
It is not tolerated at Scanfil to allow forced labor, compulsory labor, or
child labor. Scanfil strictly follows the legal standards ensuring freedom
of movement for all its employees and employment of only legally allowed
employees (adults and teenagers after the age defined by the laws in
the operating countries). However, when operating globally, it might
be considered that the manufacturing plants in Asia may uphold the
potential risk of forced or compulsory or even child labor.
Scanfil applies the same health and safety measures to both employees
and third-party employees in its workforce. All individuals performing
particular kinds of tasks use the same workstations and personal
protection equipment.
Third-party employees might be impacted negatively regarding the
security of employment as, by definition, their contracts offer significantly
shorter notice periods.
Employees who have hourly-based contracts may have limited
possibilities for personal leave as these days or hours are unpaid. The
potential risks for the workforce might be observed in very few areas.
The most highly desirable positions at Scanfil, especially in specialist
work and engineering, are dominated by male employees. This may
negatively impact the career possibilities for women thereby resulting
in the underrepresentation of women in senior management. Scanfil’s
definition of senior management is the Group Management Team,
Factories Management Teams and Directors and Heads of global
functions. As of the end of 2024, the percentage of women in these
teams was at 27%. At the same time, the total employee gender balance
in the organization is close to a 50/50 split between females and males,
which proves equal accessibility to all and fair treatment driven by
company culture and policies.
Another risk is the possibility of losing an experienced workforce driven
by just minor differentiation in pay between employees with long years
of work compared to junior employees. This is observed mainly in
Poland where the minimum wage which is offered to junior employees
was increased significantly due to country regulations, while more
experienced worker salaries did not increase to the same extent.
Workers in the value chain
Based on the information under section Interest and views of stakeholders,
Scanfil has identified four main areas of risk and opportunities for value
chain workers:
Upstream value chain workers: These are workers employed by suppliers
and based in facilities managed by suppliers. These are workers in the
value chain employed by direct suppliers or by other tier-up suppliers.
In-house value chain workers: These are employees of suppliers, but they
work at Scanfil’s premises. It could be suppliers working with installations,
temporary employees contracted via a service provider, etc. All supplier
employees working at Scanfil’s premises undergo safety training and are
guaranteed to have personal safety protection. It is the responsibility of
the site’s top management to ensure that no one visits Scanfil’s premises
without the right safety gear.
Downstream value chain workers: These are employees of customers
and will be impacted by the quality and service that are provided by
Scanfil.
Distribution value chain workers: These are employees of contracted
transportation companies and transport goods either to or from Scanfil.
Particularly vulnerable worker: All people have equal value, and Scanfil
prioritizes work guided by the DEI principles. This is applicable in the
Scanfil value chain. For more information, please refer to the Own
workforce section.
Scanfil has very limited possibilities to impact the workers in the value
chain downwards, as these are controlled by customers. It is part of the
sales process to decline businesses that do not meet a decent maturity
level of sustainability. It was, therefore, natural to focus on upstream
suppliers and/or suppliers that Scanfil can impact directly through the
procurement channels. The below matrix shows how Scanfil impacts or
will be impacted by the thematic sub-sub topics according to ESRS. In
Scanfil’s DMA, health and safety were identified as material.
41
Material sub-sub topics Impacts Risks and opportunities for Scanfil Management
Working conditions
• Health and safety
↑
Potential: Implementing health and safety across the value chain yields
significant benefits e.g., safeguarding the well-being of employees,
reducing risks, boosting operational efficiency, and saving costs.
Compliance ensures resilience and enhances brand reputation, while
fostering innovation and continuous improvement. This proactive approach
not only protects employees but also drives sustainable business success.
↑
Opportunity: Enhancing working conditions in the supply chain offers the
opportunity to build resilient and ethical supply networks, and strengthens
the company’s reputation which attracts socially conscious consumers and
investors. Improved working conditions also leads to higher productivity and
quality from suppliers, reducing defects and delays.
To ensure that suppliers share the same values as Scanfil, the aim is to have
all suppliers to sign the Scanfil’s Supplier Code of Conduct.
Scanfil does also evaluate the suppliers compliance during supplier audits
and visits in general.
↓
Risk: Breaches related to bad or dangerous working environment can
damage Scanfil’s reputation.
As a global company, Scanfil operates in various regions with diverse
regulatory environments. Human rights and labor standards vary
significantly across different countries. Among the different regions that
Scanfil’s supply chain is operating in, the APAC region is considered to
have a higher risk of child or forced labor. In addition, Africa is considered
high-risk, but Scanfil does not have any direct business in this region.
The current political situation in the world addresses risks to Scanfil’s
supply chain. Much of the electronic components come from countries
located in Asia with high political tensions. In case of conflict, there
is a risk that the supply chain will be disrupted and that would cause
disturbances in Scanfil’s production.
No material negative impacts have been identified within Scanfil’s own
operations or in any of the company’s partners in the value chain. Scanfil
is aware of the risks related to the mining of minerals in conflict areas
and, for that purpose, has included processes for reporting conflict
minerals according to the guidelines set by the RBA (Responsible
Business Association).
1.10 Description of the process to identify and
assess material impacts, risks and opportunities
The DMA covers all the sustainability matters covered by ESRS. Scanfil
has analyzed its impacts, risks, and opportunities within the sub-topics
provided by ESRS. For those sub-topics where ESRS has identified a
sub-sub-topic, Scanfil has been able to choose the relevant sub-sub-
topic for the identified impact, risk, or opportunity. Scanfil has been able
to add entity-specific sustainability matters that they see as relevant.
Time horizon identification
For potential impacts, risks, and opportunities, the time horizon has
been identified within which the impact, risk, or opportunity will occur.
The default time horizons used are based on those defined in the ESRS:
• Short-term: Reporting period
• Medium-term: Reporting period to 5 years
• Long-term: > 5 years
Value chain parameters
Scanfil’s value chain has been taken into consideration for each identified
impact, risk, and opportunity. Scanfil has identified what direction(s) of
the value chain (upstream, own operations, and downstream) the impact,
risk, or opportunity occurs in as well as the specific position(s) within
the value chain direction.
Impact identification
For each impact identified, the company has analyzed the following
criteria:
• Whether the impact is actual or potential
• Whether the impact is negative or positive
• Whether the impact is direct or indirect
Impact scoring criteria
The impacts were then scored based on the following criteria, in line
with ESRS:
• Negative impacts were scored based on severity, a combination of
scale, scope and remediability, and likelihood. Severity was prioritized
over the likelihood of negative impacts on human rights.
•
Positive impacts were scored based on their scale, scope, and
likelihood.
42
Scale, scope, remediability, and likelihood were determined based on
the following default criteria:
Scale:
1. Minimal consequence on people/environment
2. Low consequences on people/environment that are easily managed
or mitigated
3. Medium consequence that is manageable within reasonable means
4. High consequence that can cause substantial disruption and require
immediate attention
5. Absolute: Major disruption with long-term consequences
Scope*:
1. Few individuals / Very low – Isolated location
2. Groups / Minority of customers / Low – Multiple locations
3. Departments / Large groups / Roughly half of customers / Medium
– Several large areas
4. Business divisions / Majority / Entire region
5. Global / Entire populations / All customers/end-users
* Dependent on the most affected stakeholder group
Remediability:
1. Easily reversible
2. Low
3. Reversible with material effort/cost
4. High
5. Permanent
Likelihood:
1. Rare (<10%)
2. Low (10-25%)
3. Possible (25-50%)
4. Likely (50-75%)
5. Almost certain (>75%)
6. Actual (100%)
Scoring and threshold methodology
The scoring and threshold methodology for impact materiality included:
•
Each impact was assessed by positive/negative and actual/potential
• Assessment of the severity of the impact was then plotted against
the likelihood of it occurring
• The product of both is the impact score
• Impact score = Likelihood x Severity
• Severity of negative impacts = (Scale + Scope + Irremediability)
• Severity of positive impacts = (Scale + Scope)
All impacts related to that sustainability matter were plotted on a 5x5 grid
of Severity vs. Likelihood. The threshold for impact is set as a sloping
line, dependent on the combination of severity and likelihood.
A threshold line was established that gave precedence to severity over
likelihood (i.e., all impacts with severity scores > 4 were considered
material irrespective of likelihood, while also taking into account less
severe risks that were more likely).
If any impacts for a given sustainability matter were above the threshold,
then the sustainability matter itself would be deemed to be material.
Risk and opportunity identification
For each risk and opportunity identified, Scanfil has analyzed the following
criteria:
• The direct or indirect ownership of the risk/opportunity
•
The negative or positive financial effect of the risk or opportunity,
respectively
Risk and opportunity scoring criteria
The risks and opportunities were then scored based on the magnitude
of the financial effect and the likelihood of it occurring.
The magnitude of the financial effect and likelihood was determined
using the following criteria:
Magnitude of financial effect*:
1. Minor
2. Moderate
3. High
4. Very High
5. Major
* The default is based on the Net Asset Value entered by the company.
Likelihood:
1. Rare (<10%)
2. Low (10-25%)
3. Possible (25-50%)
4. Likely (50-75%)
5. Almost certain (>75%)
43
Scoring and threshold methodology
The scoring and threshold methodology for financial materiality included:
• The product of both is the Financial score
• Financial score = Likelihood X Magnitude
• All of the risks and opportunities related to that sustainability matter
were plotted on a 5x5 grid of Size of financial effect vs. Likelihood. The
threshold for financial materiality is set as a sloping line, dependent
on the combination of Size of financial effect and Likelihood. An
approximate materiality threshold line had been established, which
captured all the highest tiers of financial effects and less affecting
risks that were more likely. This means that, for each risk/opportunity
where the product of Size of financial effect and Likelihood score is
above the threshold, it is considered to be material.
Scanfil’s sustainability-related material impacts, risks, and opportunities
have been identified in a Double Materiality Assessment based on the
principles of the company’s risk management process. The key goal is
to identify and assess the risks, threats, and opportunities potentially
significant to the implementation of the company’s values and strategy
and to the achievement of long-term targets as well as to identify and
assess the company’s impacts on society and the environment. In
addition to the company’s own operations, the identification and
assessment of impacts, risks, and opportunities encompasses the
upstream and downstream value chain and any other parties that the
company’s operations affect. Scanfil’s Risk Management Process
and its responsibilities are described in more detail in the Corporate
Governance Statement.
Scanfil updated its materiality assessment of sustainability matters in
2024. The updating of the materiality assessment proceeded in two
phases. In the first phase, in 2023, the views of external and internal
stakeholders on the company’s real and potential impacts, risks, and
opportunities were collected through interviews and surveys. The
stakeholders interviewed included the company’s own employees as
well as its customers, investors, goods and service suppliers, Scanfil
management, creditors, and shareholders. Based on the material
collected, the impacts, risks, and opportunities were prioritized in
management workshops. The prioritization was based on double
materiality, meaning that the workshop participants paid attention
to the company’s impacts on the environment, society, employees,
and other stakeholders as well as to the qualitative and financial risks
and opportunities for the company’s business related to sustainability
matters. The likelihood and scope of the impact, risk, or opportunity
were considered in prioritization.
Scanfil’s process for identifying potential and actual impacts is partially
based on the due diligence process that explains whether and how
business relationships are considered. This procedure is described in
detail under the section Statement on due diligence. The sustainability
matters presented by the ESRS standards have been included in the
materiality assessment and have been connected to the impacts on
Scanfil’s value chain and business relationships.
Furthermore, Scanfil conducts qualitative risk assessments of
geographical locations and parameters connected to a heightened
risk of adverse impacts taking into consideration that a majority of
the sourcing base of electronic components is in potential risk areas.
Scanfil works systematically to reduce adverse impacts immediately, e.g.,
ensure alternative suppliers for the supply of key components already
at the contract writing phase. In addition to these processes, the DMA
takes into account parameters such as affected stakeholders, value
chain position, actual or potential impact, recurring or non-recurring
impacts, and more.
The key goal is to identify and assess the risks, threats, and opportunities
potentially significant to the implementation of the company’s values and
strategy and to the achievement of long-term targets as well as to identify
and assess the company’s impacts (actual and potential) on society
and the environment. In addition to the company’s own operations,
the identification and assessment of impacts, risks, and opportunities
encompasses the upstream and downstream value chain and any other
business relationships that the company’s operations affect.
Stakeholder consultation through a survey is a part of the process to
identify, assess, prioritize, and monitor Scanfil’s potential and actual
impacts. In the impact identification process, a stakeholder dialog
was conducted to collect data and sustainability matter concerns from
different stakeholder groups. This data was used as input to the DMA and
impact description. The survey, comprising 68 questions, was divided
into two parts aimed at assessing both the material impacts and material
risks related to Scanfil’s overall business approach. The questions
focused on three areas: Environmental, Social, and Governance, with
respondents being asked to rate their answers on a scale of 0-5, with
0 indicating no impact, or no risk and 5 representing critical impact
or very high risk. Scanfil’s management, shareholders, investors, and
creditors were directed to questions on Financial Materiality, while
customers, employees, subcontractors, and business partners answered
on Impact Materiality.
After the survey was completed, the results were analyzed, and the
second phase of the DMA implementation started. This phase was
a more qualitative assessment, where different representatives from
Scanfil participated, covering the scope of sustainability. The second
part was performed in a newly purchased digital system named Position
Green, where the input for this more qualitative assessment came from
Scanfil participants and partly from the survey performed earlier.
Position Green has helped to perform the DMA by providing a
comprehensive and user-friendly platform to identify and assess
material sustainability issues. The software guides users through the
process of identifying relevant topics, collecting and analyzing data,
and prioritizing material issues based on their impact on the company’s
business model and operations, as well as their importance to external
44
stakeholders. Position Green also helps the organization comply with the
regulations, as all sustainability matters in topical ESRS are covered. The
assessment procedure of impacts takes into consideration whether the
impact is positive or negative, the severity of the impact (scale, scope,
irremediability), and the likelihood of the impact (for potential impacts).
The prioritization of materiality is based on the assessment results from
Position Green of severity and likelihood and the stakeholder survey.
Scanfil connects its impacts, risks, and opportunities in its Risk
Management Process. Scanfil strives to maintain a holistic perspective
in its risk assessment, even though financial risks remain the top priority.
Sustainability risks that are considered financial are identified and
assessed in the Risk Management Process, including in the Double
Materiality Assessment and the Risk Management System. In the system,
the financial risks are assessed by the likelihood of occurrence, the
magnitude of the financial impact, and the nature of the effects. These
assessments are based on three scales – the percentage of occurrence,
financial impact in monetary terms, and the scoring of the level of risk
control.
The Risk Management System is used by all local sites and departments
where Scanfil has its own business operations. In 2025, Scanfil will start
integrating severe sustainability risks from the Risk Management System
into its DMA review process.
At Scanfil, the Director Global Sustainability is the owner of the DMA
process. The results from the DMA have been presented to the Group
Management Team and the Board. In addition to this, there are currently
no other established decision-making processes or related internal
control procedures related to DMA. However, Scanfil has internal control
procedures regarding the overall Risk Management Process. This control
procedure is handled by the Internal Auditing group and is owned by
the Chief Financial Officer.
All local entities and global divisions conduct financial risk analysis
on their own operations from a top-down level, where the results are
implemented in Scanfil’s Risk Management System. To align with
Scanfil’s focus on financial risks, a new Risk Management System was
implemented in 2024. The system is used to support Scanfil in assessing
the financial risks and opportunities that have been identified previously
and newly identified risks and opportunities. The system is used to
monitor financial risks and mitigate negative impacts.
Currently, Scanfil has not implemented any method to track the impacts
of the CSRD sustainability topics in any Risk Management System. In
2025, Scanfil will develop a process to integrate the Risk Management
System with the DMA process.
Scanfil uses multiple different parameters as inputs to its risk
management and double materiality process. A comprehensive overview
of each ESRS input parameter, data sources, and assumptions are
presented below:
Climate change: Stakeholder engagement, SBTi targets, and ISO 14001
management system. Scanfil will decide in 2025 when a climate scenario
analysis will be carried out.
Pollution: ISO 14001 management system. Compliance with REACH &
RoHS. Mandated material compliance in the Supplier Code of Conduct,
EcoVadis.
Resource use and circular economy: Stakeholder engagement. Detailed
data collection on waste. Resource inflows and outflows have been
estimated at a high level. Ecovadis, and mandated material compliance
in the Supplier Code of Conduct. ISO 14001 management system.
Own workforce: Stakeholder engagement, country-specific legal
requirements, employee dialogs, employee engagement survey, internal
Code of Conduct.
Workers in the value chain: Stakeholder engagement, Supplier Code
of Conduct, International Labour Organization (ILO), EcoVadis, supplier
monitoring process (supplier selection criteria, balanced scorecard)
Business conduct: Stakeholder engagement (shareholders, investors,
creditors) Supplier Code of Conduct, internal Code of Conduct, legal
requirements, UN Global Compact, OECD conflict minerals, ILO,
EcoVadis.
The Double Materiality Assessment was developed and conducted
for the first time in the present reporting year. Based on this condition,
changes have not been made to the process to identify impacts, risks,
and opportunities. Scanfil is planning to review the Double Materiality
Assessment annually starting in 2025. See the Scoring and threshold
methodology for financial and impact materiality in the Appendix for
more details.
45
Climate change
The material impacts, risks, and opportunities related to climate change
have been identified in a Double Materiality Assessment based on the
principles of the company’s risk management process. Scanfil identified
the topics of climate change adaptation, climate change mitigation and
energy as material topics. The materiality assessment is discussed in
section Material impacts, risks and opportunities, and their interaction
with the strategy and business model.
Scanfil has an ongoing but not finalized high-level company analysis
to screen and assess whether assets and business activities may be
exposed to, or the sensitivity to the identified climate-related hazards. The
ongoing work is conducted by each site through a Disaster Evaluation
Matrix. The matrix takes into consideration the severity and likelihood
of the physical risk occurring but has not defined short-, medium- and
long-term time horizons, nor is it based on high emissions climate-
related scenarios.
The Disaster Evaluation Matrix is part of the process to identify and
assess climate-related physical risks. It has a qualitative approach and
is based on the classification table of climate-related hazards presented
in the ESRS standard, where physical risks for Scanfil’s own operations
per manufacturing site have been identified. The qualitative approach is
based on local know-how and local circumstances. However, a detailed
physical risk assessment with the latest scientific data or climate-related
scenarios is not yet in place.
Scanfil has started working on a process to identify climate-related
transition risks and opportunities for its own operations and along the
value chain.
Scanfil has yet to conduct a climate scenario analysis that is in line with
the UN target of limiting global warming to 1.5 °C to identify transition risks
and opportunities for the short-, medium- and long-term time horizons.
Since no climate scenario analysis has been carried out, there are still
great uncertainties relating to the coverage of plausible risks, time
horizons, details, geographical data, trends, key forces, drivers, and
endpoints.
Scanfil will decide in 2025 to implement a climate scenario analysis as
part of the transition risk identification process.
The transition risks and opportunities have been identified in relation
to the negative impacts of the Double Materiality Assessment. When
carrying out the DMA the assets and business activities were screened
for their potential exposure to these risks and opportunities. The extent
of the anticipated effects and any possible business activities that are
incompatible with transitioning to a climate-neutral economy are yet
to be identified.
As the analysis has not been based on climate-related scenarios, Scanfil
is not able to make any critical assumptions in the financial statement.
Material sub -topics Impacts Risks and opportunities for Scanfil Management
Climate change adaptation
↓
Actual: Climate changes and changes in weather patterns, such as a
warmer climate, can have a negative impact on facilities and increase
energy use for cooling and air conditioning.
• Working on adapting own facilities to climate change.
• Adapting heating and cooling units in facilities.
• Having adaptation strategies for extreme weather events.
Climate change mitigation
↓
Actual: Emissions of greenhouse gases have a direct negative impact on
climate change. Mitigation activities drive energy consumption.
Energy
↓
Potential: Energy consumption significantly impacts pollution levels
and the surrounding environment. High consumption leads to increased
emissions of greenhouse gases and pollutants, worsening air quality in
local areas.
↑
Opportunity: By consuming renewable energy,
Scanfil can replace fossil-based energy sources.
Renewable energy already accounts for 52% of the
energy used in Scanfil’s production (scope 1 and
scope 2).
• Scanfil’s strategic target is to improve its energy efficiency and the transition to fossil-free fuels,
as well as fossil-free purchased electricity and heat.
• During the financial year, a survey was carried out on the feasibility of energy-saving activities
in Scanfil’s operations. Energy-saving geothermal heat will be tested when the expansion in
Sieradz is completed. Solar panels are installed in Scanfil’s factory in Suzhou, China.
46
Pollution
The material impacts, risks, and opportunities related to pollution have
been identified in the Double Materiality Assessment based on the
principles of the company’s risk management process. The materiality
assessment is discussed under the section Material impacts, risks and
opportunities, and their interaction with the strategy and business model.
Ensuring uninterrupted production is a critical part of the company’s
risk management process for its manufacturing facilities. The
environmental risks of these production units are evaluated through
the ISO 14001 management system. The most significant risks identified
are incorporated into the overall corporate risk management process.
Regular risk assessments and official inspections help ensure the
comprehensive monitoring and performance of the production units.
Substances of very high concern (SVHC) are a key focus area for
Scanfil and were considered a material topic in the Double Materiality
Assessment. The company carefully procures components to ensure
they meet regulatory and customer requirements. Scanfil prefers to work
with recognized, established suppliers and regularly communicates
with them about the updated regulations. Scanfil’s supplier agreements
and Supplier Code of Conduct mandate “Material Compliance”. This
requirement is included in every purchase order. If a customer requests
a deeper analysis of purchased materials, Scanfil provides this as an
extended service.
By prioritizing the elimination or reduction of SVHC, Scanfil can
reduce risk, protect stakeholders, and demonstrate its commitment to
sustainability and responsible stewardship.
SVHC are present in the manufacturing process within the Electronic
Manufacturing Service (EMS) business and are critical for ensuring
product safety, environmental protection, and regulatory compliance.
Despite efforts, SVHC may still be present throughout the supply chain
and the manufacturing processes, posing risks to human health and the
environment. Specific consultations have not been conducted with the
affected communities, except when it is mandatory by legislation such
as for environmental permits.
SVHC are material downstream in the value chain. At Scanfil, customers
and the European Chemical Agency (ECHA) authority are informed
through Substances of Concern in Products (SCIP) reports whether
products and components contain substances above a certain threshold.
If any SVHC exceeds the threshold, this information is forwarded to the
individual customer along with a message to SCIP.
Reporting principles for metrics
Scanfil reports regularly according to the regulations on substances
of very high concern. The reporting is provided to customers but also
to organizations that require the traceability of SVHC. The reporting is
done by the local units and in accordance with applicable regulations
and customer requirements.
One example is the SCIP database, which is an EU database designed to
improve transparency and facilitate the safe use of chemicals in products.
Companies are obliged to provide information about the presence of
substances of very high concern in their products.
Pollution-related impacts, risks, and opportunities
Material sub-topics Impacts Risks and opportunities for Scanfil Management
Substances of very high concern
↓
Actual:
Managing substances of very high concern within Scanfil
is critical for ensuring product safety, environmental
protection, and regulatory compliance. Despite efforts,
SVHC may still be present throughout the supply chain
and manufacturing processes, posing risks to human
health and the environment. Exposure to SVHC can
lead to adverse health effects, workplace accidents,
and environmental contamination. Addressing SVHC
requires proactive measures such as implementing strict
material sourcing policies and substituting substances
of very high concern with safer alternatives. By prioritizing
the elimination or reduction of SVHC, Scanfil can
mitigate risks, protect stakeholders, and demonstrate
its commitment to sustainability and responsible
stewardship.
↓
Risk: Weak management of substances of very high concern might lead to losses in several areas. These
can be:
• Compliance costs: Non-compliance with regulations such as REACH or RoHS can lead to fines, legal
fees, and increased operational costs to rectify the issue.
• Supply chain disruption: Changes in regulations or restrictions on certain substances can disrupt the
supply chain, leading to increased costs due to sourcing alternative materials or redesigning products.
• Reputation damage: Negative publicity due to the presence of substances of very high concern in
products can lead to decreased customer trust, brand damage, and loss of market share.
• Product recalls: Discovering substances of very high concern in products post-production can result in
costly recalls, including expenses for product retrieval, replacement, and potential legal liabilities.
• Good management of substances of very high concern
involves a proactive approach to identifying, assessing, and
mitigating the risks associated with these. This includes
measures to prevent pollution, protect human health, and
ensure environmental sustainability.
• Regulatory adherence: Stay up to date with the relevant
regulations and standards.
• Audits and inspections: Conduct regular audits and
inspections to verify compliance.
↑
Opportunity: By prioritizing the elimination or reduction of substances of very high concern, Scanfil can
mitigate risks, protect stakeholders, and demonstrate its commitment to sustainability and responsible
stewardship.
47
Water and marine resources
The impacts, risks, and opportunities related to water and marine
resources have been investigated as part of the preparations of the
DMA, where a qualitative assessment based on internal knowledge and
through consultations with the stakeholders was made. The consultations
with stakeholders were conducted through surveys, with a focus on own
operational activities as well as downstream and upstream activities.
Together with a third-party consultant agency, Scanfil has identified
this ESRS topic as not material. Read more about the conclusion from
the DMA in the section Disclosures incorporated by reference in the
Appendix to this report. In the stakeholder survey process, Scanfil
involved the following stakeholders: own employees, supplier business
partners, customers, Scanfil’s management, shareholders and investors.
Scanfil did not involve affected communities and thus no consultations
were made with this group.
Biodiversity and ecosystems
The impacts, risks, dependencies and opportunities related to biodiversity
and ecosystems have been investigated as part of the preparations of the
DMA, where a qualitative assessment based on internal knowledge and
through consultations with stakeholders was made. The consultations
with stakeholders were conducted through surveys, with a focus on
Scanfil’s own operational activities as well as downstream and upstream
activities. Together with a third-party consultant agency, Scanfil has
identified this ESRS topic as not material. Read more about the conclusion
from the DMA in section Disclosures incorporated by reference in the
Appendix to this report. In the stakeholder survey process, Scanfil
involved the following stakeholders: own employees, supplier business
partners, customers, Scanfil’s management, shareholders and investors.
Scanfil did not involve affected communities and thus no consultations
were made with this group. Since Scanfil has identified this topic as
not material, no scenario analysis of identified and assessed material
risks and opportunities over different time horizons was conducted.
Moreover, Scanfil production sites and offices around the world are in
industrial parks and in areas not close to any biodiversity-sensitive areas,
and it has not been concluded that any necessary measures regarding
biodiversity mitigation need to be implemented at its own sites or among
other stakeholders in the value chain.
Resource use and circular economy
In the DMA, resource use and circular economy were identified as a
material topic. The materiality assessment is discussed under the section
Material impacts, risks and opportunities, and their interaction with the
strategy and business model. Scanfil found the sub-topics Resource
inflows, including resource use, Resource outflows related to products
and services, and Waste as material.
The focus of Scanfil’s previous reporting was on waste from its own
operations. Resource inflows (components, materials, and capital goods
such as equipment used in Scanfil’s operations) and resource outflows
(products and waste) related to products and services have so far been
out of scope, and the data has not previously been collected.
From the 2024 reporting, Scanfil has detailed data collection on waste,
while resource inflows and outflows of components and materials are
estimated at a high level. Scanfil will refine the data quality over time.
In 2025, Scanfil plans to implement initiatives that will improve data
availability. For purchased goods and services and capital goods, the
internal purchasing system is used to collect data.
Scanfil conducted a DMA to identify and evaluate sustainability-related
impacts, risks, and opportunities, in line with its risk management
principles relating to resource use and the circular economy. This
assessment aimed to pinpoint significant factors affecting the company’s
values, strategy, long-term objectives, and environmental impacts. It
covers Scanfil’s own operations, and other affected parties both upstream
and downstream in the value chain.
In 2023, insights from internal and external stakeholders were gathered
via surveys with employees, customers, investors and shareholders,
Scanfil’s management, and suppliers. However, no special consideration
was taken for affected communities as this stakeholder is considered
non-material for Scanfil. This data was used to prioritize stakeholder
insights, risks, opportunities and other relevant matters during
management workshops which was later used to identify impacts,
risks and opportunities for the core process, and upstream as well as
downstream in the DMA. The positive and negative impacts were then
combined with risks and opportunities to gain valuable strategic insights
into Scanfil’s material aspects.
In the table below, the identified impacts, risks and opportunities and
integrated management routines and processes are presented.
48
Material sub topics Impacts Risks and opportunities for Scanfil Management
Resource inflows, including resource use
↓
Potential: The extensive use
of metals, components, and
chemicals poses a risk to
the environment, particularly
when these materials are
not sourced sustainably. The
reliance on customer-chosen
materials can lead to the use
of less sustainable options.
Scanfil utilizes global natural
resources economically and
efficiently by developing
production processes in a
more efficient direction.
↑
↑
Opportunity: There is an opportunity in the legislation that recognizes the environmental
benefits of using fossil-free raw materials in production. Such legislation could require replacing
primary fossil-based raw materials with more sustainable alternatives, particularly for packaging
materials.
Opportunity: All Scanfil’s factories have a certified ISO 14001-compliant environmental
management system. Waste materials are recycled if they cannot be reused in the company’s
own production. Steel is an important raw material used by Scanfil. Its effective use is closely
monitored in the production process to reduce negative impacts.
Effective management of resource inflows and their subsequent use is critical for fostering sustainability in
any organization. This approach not only ensures the long-term availability of resources but also aligns with
global sustainability goals, such as reducing environmental impact and promoting social responsibility. The
management of resource inflows encompasses the processes of sourcing, procurement, and the initial
handling of resources, while resource use involves the efficient, equitable, and sustainable consumption of
these resources throughout their lifecycle.
Scanfil has taken the step of managing resource inflows by adopting sustainable purchasing methods. This
was done by introducing a Sustainable Procurement Policy, which will guide procurement personnel to include
sustainability in the supplier selection process. The Scanfil Supplier Code of Conduct addresses Scanfil’s
expectations that raw materials are obtained from renewable sources or recycled inputs, which minimizes the
depletion of natural resources. In addition, it promotes ethical working practices, fair trade and reduces the
carbon footprint associated with transport and production.
Scanfil is using the Ecovadis sustainable procurement platform to assess the preferred and key suppliers, and
all new suppliers have to sign Scanfil’s Supplier Code of Conduct.
Resource outflows related to products and services
↓
Potential: The
manufacturing of electrical
components from a resource
outflow perspective has
a negative impact from
increased e-waste volumes,
including defective units and
obsolete components.
↑
Opportunity: Legislation that promotes recyclable products made from renewable materials
rather than plastic components, presents business development opportunities.
Cooperation with customers and suppliers creates a good basis for the development of sustainable
production and a healthy outflow of resources. Scanfil often does not participate in the design work of products
that are manufactured, but has good opportunities for influence over time, both upstream and downstream.
By understanding resource outflows, Scanfil can take steps to reduce the environmental impact. Some
strategies include:
• Efficient resource use: Implementing measures to minimize waste and optimize resource consumption.
• Material substitution: Replacing harmful materials with more sustainable alternatives.
• Energy efficiency: Investing in energy-saving technologies and practices.
• Water conservation: Reducing water usage through efficient processes and recycling.
Waste
↓
Actual: Waste from Scanfil’s
operations could negatively
impact the environment by
dispersing pollutants into the
surrounding areas, leading to
contamination and potential
harm to ecosystems and
human health.
↑
Opportunity: Waste reduction and proper management have significant effects on the
environment, the economy and society.
• Environmentally: It reduces pollution, conserve resources and minimize habitat destruction.
• Economically: Efficient waste management lowers waste disposal costs, creates jobs in the
recycling and composting industry, and promotes innovation in waste-to-energy technology.
• Socially: It improves public health by reducing exposure to hazardous materials and improves
community well-being by promoting clean and attractive surroundings.
For the Scanfil Group, adopting effective waste reduction and management methods is essential
for a sustainable and healthy future and promotes the company’s business development.
• Invest in new technology and follow the development of new methods to take care of waste in a more
sustainable way.
• Develop cleaner process technologies that reduce waste.
• Choose suppliers based on the sustainability perspective and always try to promote recycling options.
↓
Risk: Managing waste management in an efficient and sustainable manner is important from
an environmental, legal and regulatory point of view, as well as from a reputational standpoint.
Stakeholders expect Scanfil to take responsibility and invest in facilities and knowledge to
manage waste in the best sustainable way. Improper waste management can lead to fines.
49
Business Conduct
Scanfil has followed Position Green's approach in identifying material
impacts, risk and opportunities related to business conduct matters. The
areas that have been identified as relevant and material are corporate
culture, corruption and bribery, cyber security and management of
Material sub topics Impacts Risks and opportunities for Scanfil Management
Corporate culture
• Diversity, Equity,
and Inclusion
↑
Actual: A strong corporate culture rooted in Diversity, Equity, and Inclusion (DEI)
fosters innovation, collaboration, and belonging. It empowers diverse voices, ensuring
equitable opportunities and representation at all levels. DEI-driven cultures attract top
talent, improve employee engagement, and enhance decision-making through varied
perspectives. By addressing systemic barriers and promoting fairness, organizations
build trust and resilience. An inclusive environment boosts morale and retention while
strengthening connections with diverse customers and communities. Prioritizing
DEI is essential for driving business success, fostering innovation, and creating a
workplace where everyone can thrive.
n/a Scanfil values and cherishes diversity, equality, and inclusion. The
value “Achieving Together” highlights how being one team globally
is emphasized, how diversity is benefited from shared ideas, how
respect and reliance on each other are emphasized, the aim for
collective success, and how every individual is respected with no
tolerance for bullying, harassment, or discrimination.
Corruption and bribery
• Prevention &
Detection
↑
Potential: Effective prevention and detection of corruption and bribery protect
organizational integrity and stakeholder trust. Implementing robust policies, regular
audits, and compliance training reduces legal risks, financial losses, and reputational
damage. These measures foster a transparent, ethical culture, promoting sustainable
and fair business practices.
n/a All employees receive comprehensive training in Scanfil’s Code
of Conduct. Raising awareness of corruption and bribery risks
strengthens prevention efforts, mitigates potential threats, and
reinforces stakeholder trust while promoting a culture of integrity and
compliance.
Cybersecurity
↓
Potential: Strong cybersecurity protects sensitive data, ensures business continuity,
and builds stakeholder trust. It prevents financial losses, enhances compliance, and
safeguards reputation. Effective cybersecurity also promotes innovation by reducing
operational risks.
n/a Likelihood is determined through threat intelligence, historical data,
and industry trends. Sources include cybersecurity frameworks
(NIS, ISO), threat intelligence platforms (Cyber awareness platform),
incident response data, and vulnerability assessments. Conducting
regular audits, penetration tests, and staying informed through
industry reports ensures a proactive and adaptive cyber-security
strategy.
Management of relationships with suppliers including payment practices
↓
Potential: Effective management of supplier relationships and payment practices
improves operational efficiency, strengthens trust, and ensures supply chain
stability. Timely and fair payments foster loyalty, attract high-quality suppliers,
enhance product quality, and promote innovation. Ethical practices support social
responsibility and long-term sustainable partnerships, contributing to overall
business success.
n/a Scanfil is committed to foster strong partnerships with suppliers
who align with its core values. Through well-defined agreements,
both parties ensure mutual accountability in fulfilling business
commitments. These agreements encompass clear guidelines on
deliveries and payment practices, promoting transparency, reliability,
and sustainable collaboration.
relationships with suppliers’ payment practices. The criteria that have
been used to identify material impacts, risks and opportunities related
to these areas have been to assess whether Scanfil and its value chain
stakeholders have any direct operational activities related to these in
the geographical locations where they operate.
50
1.11 Disclosures in relation to
specific circumstances
Measures including estimated value chain data, using indirect sources
and the basis for preparation of these metrics, are presented below:
Upstream metrics:
• Scope 3.1 Purchased Goods and Services
- Calculated on spend of purchased material and use of emission
factors from Exiobase 3.9
• Scope 3.2 Capital Goods
-
Calculated on spend of purchased capital goods and use of
emission factors from Exiobase 3.9
•
Scope 3.3 Fuel- and Energy-Related Activities Not Included in
Scope 1 or Scope 2
-
Calculated on energy used and use of emission factors from DEFRA
WTT: factors from T&D and generation (2021)
• Scope 3.4 Upstream Transportation and Distribution
-
Calculated on spend method of inbound transport and use of
emission factors from Exiobase 3.9. Reported by site.
• Resource inflows - purchased goods
- Reference to E5-4 32
Own operation metrics:
• Scope 1
-
Calculation of direct emissions that are owned or controlled by
Scanfil. Combustion and Fugitive emissions (refrigerants): DEFRA
(2023),
• Scope 2
-
Purchased electricity includes indirect greenhouse gas (GHG)
emissions from the generation of purchased electricity. Emission
factor AIB (2022)
- Emission factor - Scope 3 Source: DEFRA WTT: factors from T&D
and generation
• Scope 3.5 Waste Generated in Operations
-
Calculated by waste-type specific method, tonnes of waste.
Reported per site. DEFRA (2023) emission factor
• Scope 3.6 Business Travel
-
Calculated on a spend-based method and estimates emissions
from the cost associated with each travel segment, using cost as
a proxy for emissions and applying spend-based emission factors.
Reported per site. Emission factor from Exiobase 3.9
• Scope 3.7 Employee commuting
-
Employee commuting includes emissions from employee travel
between their homes and their workplace. This includes various
modes of transportation such as personal vehicles, public
transportation, carpooling, and cycling. The average-data method
uses industry-standard emission factors and averages to estimate
emissions when specific commute data is not available.
- The following emmision factor sources have been used:
- Petrol car commuting: NTM (2018)
- Diesel car commuting: NTM (2018)
- Battery Electric Average Car: DEFRA (2022)
- Plug-in Hybrid: DEFRA (2022)
- Bicycle: ZERO
- Electric bike: AIB (2020)
- Bus: NTM (2018)
-
Electric scooter: Severengiz, Semih & Finke, Sebastian &
Schelte, Nora & Wendt, Norman. (2020). Life Cycle Assessment
on the Mobility Service E-Scooter Sharing. 1-6. 10.1109/E-T
EMS46250.2020.9111817. All emissions assigned to Scope 3.
- Motorbike, average: DEFRA (2022)
- Subway/Metro: NTM (2018)
- Regional train: NTM (2018)
• Energy consumption and combination of energy sources
- Reporting in the Position Green sustainability system. Reporting
per site
• GHG intensity
- GHG intensity based on turnover, Scopes 1, 2, 3 (market-based),
tCO2e / euros
• Resource inflows - Water consumption
- Calculated on reported measured water consumption per site
• Waste generated in the company’s own operations
- Tons of waste types reported per site
51
Downstream metrics:
• Scope 3.9 Downstream transportation and distribution
-
Calculated on spend method and use of emission factors from
Exiobase 3.9. Reported by site.
• Scope 3.11 Use of sold products
-
Calculated on estimated usage of delivered products. Average
electricity emission factor
• Substances of very high concern
- Number of reports in the SCIP database
Scanfil’s Sustainability Statement contains disclosures related to the
company’s own operations, and the upstream and downstream value
chains including suppliers, customers, and other business partners.
There are inherent uncertainties about the completeness, availability,
quality, and accuracy of this information as it relates to performance
and activities that are beyond Scanfil’s direct influence and control.
In appendix, the level of accuracy for activity data and environmental
data is presented with respect to metrics that include upstream and/
or downstream value chain data based on indirect sources. The level of
accuracy has been qualitatively assessed and categorized as:
1. High: Minimal margin of error or uncertainty.
2. Medium: Some uncertainty exists due to limitations in data
collection or methodology.
3. Low: High level of uncertainty due to limitations in methdology or
lack of verification.
The level of accuracy for environmental data has been assessed as
“Medium” in all cases as the data is based on third-party data.
Scanfil has a goal to continuously improve the level of accuracy in its
value chain data. The company has implemented a specific software that
gathers and provides the necessary data for its own operations, as well
as downstream and upstream value chain data relevant to Scanfil. The
plan is to continuously raise the level of digitalization and data accuracy
by improving the conditions for this software to provide the metrics that
are needed and in case where estimates still are needed, improve the
accuracy of the estimations.
When primary data cannot be used, Scanfil uses the method of spend
analysis. Spend analysis is a method used for collecting, cleansing,
classifying and analyzing expenditure data. By using the expenditure
data, the data is multiplied with suitable equivalent factors. All spend
data is taken out of Scanfil’s ERP system.
Some measurements are associated with inherent uncertainties due
to limitations in the availability and quality of primary data, which is why
the reported figures should not be regarded as exact measurements.
At the moment, Scanfil has not identified or assessed future events that
provide measurement uncertainties.
Scanfil uses the same assumptions, approximations, and judgments
that are presented by the databases and software used for retrieving
the data. There have not been any other assumptions, approximations
, or judgments.
The Sustainability Statement reported for 2023 was based on the Non-
financial Reporting Directive (NFRD). Since the CSRD requires both more
qualitative and quantitative data, changes in comparison to last year’s
report are inevitable. Moreover, Scanfil has integrated the Position Green
system this year which has enhanced the collection process and data
structure, as well as enabled us to refine and validate the actual data.
As a result of these factors, there has been one change in comparison
to last year, directly related to metrics. ‘Occupational accidents which
resulted in sick leave’ was measured as the percentage of accidents vs
active workforce in 2023. The measurement in this report is provided
under section the Own workforce.
At the beginning of Q4 this year, two new entities in Australia and Malaysia
were acquired by Scanfil and are included in this report. Although the
available data provided by these new entities follow a clear structure
for data collection, the volume and quality of the data are at relatively
lower levels in comparison to the rest of the Group.
The metric occupational accidents which resulted in sick leave’ will not
be recalculated as the metric includes different parameters.
As per Scanfil’s recalculation policy for GHG reporting, if the acquisition
of these units will increase Scanfil’s GHG emissions by more than 5%,
the baseline, as well as the target, will be recalculated, and the updated
figures will be reported in 2025.
No changes or errors in comparison to reports delivered in prior periods
have been identified in the preparation of this report. Therefore, Scanfil
is not presenting any corrections, circumstances, or the nature of such
errors.
52
The EU Taxonomy (EU 2020/852) is a classification system established to
determine whether an economic activity is environmentally sustainable. It
aims to provide companies, investors, and policymakers with appropriate
definitions to help navigate the transition to a low-carbon, resilient, and
resource-efficient economy.
It is important to clarify that alignment with the EU Taxonomy does not
necessarily mean that an activity is sustainable in all aspects, or vice
versa, but rather that it meets specific criteria set out by the taxonomy.
In the reporting period, Scanfil has conducted a wide screening to
identify taxonomy-eligible economic activities. The screening process
was conducted for all six environmental objectives in the EU taxonomy
regulation.
2.1.1 How Scanfil is affected
by the EU Taxonomy
Scanfil is an electronics manufacturing service (“EMS”) company that
almost exclusively produces according to customer specifications,
with little control over how the specifications are developed. Most of its
operations fall under NACE code 26 (Manufacturing of computers and
electronic and optical products), and its products are primarily sold as
components for further assembly and manufacturing by clients. Despite
these constraints, Scanfil remains committed to aligning its operations
with the EU Taxonomy to the greatest extent possible, ensuring that its
contributions to the supply chain support the transition to a sustainable
economy.
Updates to the reporting methodology
Previously, the reporting of alignment with the EU Taxonomy followed
a fully customer-centered approach which presented difficulties since
Scanfil cannot always know what the produced components are used
for by the customer in the final product or application. Components may
be used for taxonomy eligible or non-eligible, aligned, and non-aligned
economic activities, complicating the assessment and influencing
usage in detail.
In 2024, Scanfil has refined its methodology to better align with the latest
guidelines and standards. Scanfil has implemented a more systematic
approach to its reporting, ensuring consistency and accuracy across
all activities. Activities are assessed strictly on how they conform to the
technical screenings without reference to the customer’s operations. As
such both the substantial contribution and the Do No Significant Harm
(DNSH) criteria are assessed based solely on Scanfil’s own processes.
Henceforth, Scanfil has more insight and control over the data collection
process which will uncomplicate the assessment and influence usage
in detail.
Furthermore, despite improvements, there are still areas where data is
missing or incomplete. Scanfil is actively working to address these gaps.
Scanfil has decided to take a conservative and systematic approach,
opting for ineligibility whenever there is any uncertainty. Therefore,
taxonomy-eligible activities will be reduced during reporting period 2024.
In reviewing the 2023 KPIs for Turnover, CapEx, and OpEx, two major
changes were made. Firstly, all amounts for CCM 3.4 and 3.5, which were
previously classified as aligned, were reclassified as eligible but non-
aligned due to not meeting all DNSH criteria. Secondly, amounts related
to CCM 3.1 were changed to non-eligible following a reassessment of
the group’s activities. The updated amounts now exclude amounts from
CCM 3.1 and concern those reclassified from aligned to eligible. These
amounts are more reliable and consistent with the 2024 methodology:
• Turnover: 95.1 MEUR (19 MEUR from CCM 3.4, 76.1 MEUR from CCM
3.5)
• CapEx: 2.5 MEUR (0.5 MEUR from CCM 3.4, 2 MEUR from CCM 3.5)
• OpEx: 1 MEUR (0.2 MEUR from CCM 3.4, 0.8 MEUR from CCM 3.5)
2.1.2 Eligibility assessment
Not all activities that can make a substantial contribution to the climate
and environmental objectives are yet part of the EU Taxonomy, and
activities will be added over time. For instance, the Manufacture of
automotive and mobility components was added to the Commission
Delegated Regulation (EU) 2023/2485. Additionally, the EU Commission
has stated that: “The treatment of key components for manufacturing
activities, for example, in the low carbon transport sector, covered by
the Climate Delegated Act will be addressed in future revisions of the
delegated act”. As such, much of Scanfil’s core business related to the
manufacture of key components for renewable energy technologies
can be expected to be amended in due time.
2. Environmental information
2.1 Taxonomy report outline
53
For 2024, Scanfil has conducted a thorough review of each listed activity
to determine its eligibility under the EU Taxonomy. The initial screening
was done by cross-checking all Scanfil’s activities with a complete list
of all economic activities for each environmental objective covered
by the EU Taxonomy. After the initial screening, the relevant activities
were identified for further assessment. It was found that Scanfil’s most
substantial contributions were all towards the first environmental
objective, Climate Change Mitigation (CCM). Based on screening of
eligible activities, Scanfil has identified the following financial activities
to be relevant for 2024 reporting period:
Eligible manufacturing activities related to Turnover, Capex, and Opex
within the objective “Climate Change Mitigation”:
•
CCM 3.5. “Manufacture of energy efficiency equipment for buildings”:
Scanfil manufactures a series of products and key components
fulfilling the substantial contribution criteria for a selection of valid
subsections. Those subsections are: (i) cooling and ventilation; (k.)
heat pumps; (m.) energy-efficient building automation and control
systems; (n) zoned thermostats and devices for the smart monitoring
of the main electricity loads or heat loads for buildings, and sensoring
equipment; (o.) products for heat metering and thermostatic controls;
(q.) products for smart monitoring and regulating of heating systems,
and sensoring equipment.
•
CCM 3.20. ”Manufacture, installation, and servicing of high, medium
and low voltage electrical equipment for electrical transmission and
distribution that result in or enable a substantial contribution to climate
change mitigation”: Scanfil manufactures a number of products
fulfilling the substantial contribution criteria for a selection of valid
subsections. Those subsections are: a) electric vehicle charging
stations and supporting electric infrastructure for the electrification of
transport that is installed primarily to enable electric vehicle charging;
e) low voltage electrical products, equipment and systems, that
increase the controllability of the electricity system, and contribute
to increasing the proportion of renewable energy or improve energy
efficiency.
Eligible energy activities related to Capex and Opex within the objective
“Climate Change Mitigation”:
•
CCM 4.1. “Electricity generation using solar photovoltaic technology”:
Scanfil has installed roof solar generator systems on one of its
manufacturing sites, constituting a capital investment to generate
renewable energy in the service of climate change mitigation.
One difference from last year’s reporting is that activity 3.4 “Manufacture
of batteries” has been excluded since no manufacturing of battery
components has taken place this year. As such, this activity is no longer
eligible.
2.1.3 Alignment assessment
To be taxonomy-aligned, the economic activity must contribute
significantly to a climate or environmental objective, whilst also not
causing significant harm (DNSH) to any of the other objectives. In addition,
corporate operations must be carried out in accordance with Minimum
safeguards.
Scanfil has assessed eligible activities against these technical screening
criteria in the Commission Delegated Regulation (EU) 2021/2139 and
has identified no activities as currently taxonomy-aligned.
For manufacturing activities (CCM 3.5 & CCM 3.20), each eligible product/
component was assessed for alignment according to its substantial
contribution criteria. Since manufacturing activities share the same
factory facilities, and since their DNSH criteria are identical, all their DNSH
criteria were assessed on a factory basis, excluding those facilities with
insufficient evidence to confirm compliance. See the following matrix for
a breakdown of the alignment assessment of the manufacturing activities:
54
TECHNICAL SCREENING CRITERIA CRITERIA DESCRIPTION SCANFIL COMPLIANCE
Substantial contribution - CCM 3.5, as referred to article 10(3) of Regulation (EU)
2020/852.
Manufacture of energy efficiency equipment for buildings.
For a series of different companies, Scanfil manufactures products and key
components that are compliant with subpoints (i), (k), (m), (n) & (o).
Substantial contribution - CCM 3.20, as referred to article 10(3) of Regulation (EU)
2020/852.
The economic activity develops, manufactures, installs, maintains or services
electrical products, equipment, systems, or software aimed at substantial GHG
emission reductions in high, medium and low voltage electrical transmission
and distribution systems through electrification, energy efficiency, integration of
renewable energy or efficient power conversion.
Scanfil manufactures high-power charging stations for electric vehicles, compliant
with subpoint 1(a), as well as active dynamic filtering, compliant with subpoint 1(e).
Furthermore, in accordance with subpoint 4, the products manufactured comply with
mandatory energy and material efficiency performance requirements laid down in
Directive 2009/125/EC. No other subpoints are applicable.
DNSH – Climate adaptation, as referred to article 11(3) of Regulation (EU) 2020/852.
The activities comply with the criteria set out in
Appendix A to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
Non-compliant. Scanfil has completed hazard assessments using its Disaster
Evaluation Matrix, which is designed to identify and assess climate-related physical
risks. However, a detailed physical risk assessment, specifically for climate change
adaptation according to the EU Taxonomy requirements, has not yet been conducted.
DNSH – Water, as referred to article 12(2) of Regulation (EU) 2020/852.
The activities comply with the criteria set out in
Appendix B to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
An assessment of all Scanfil’s applicable factories shows that all but one are
compliant, either having completed an EIA or meeting the national requirements of an
EU member-state.
DNSH – Circular Economy, as referred to article 13(2) of Regulation (EU) 2020/852.
The activity assesses the availability of and, where feasible, adopts techniques that
support:
a.reuse and use of secondary raw materials and reused components in products
manufactured.
b.design for high durability, recyclability, easy disassembly and adaptability of
products manufactured.
c.waste management that prioritizes recycling over disposal, in the manufacturing
process.
d. information on and traceability of substances of concern throughout the life cycle
of the manufactured products.
An assessment of all Scanfil’s applicable factories shows that all are compliant,
actively implementing strategies to reuse materials on the factory floor, including the
return of some materials to suppliers for reuse, such as packaging materials.
DNSH – Pollution prevention, as referred to article 14(2) of Regulation (EU) 2020/852.
The activities comply with the criteria set out in
Appendix C to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
An assessment of all Scanfil’s applicable factories shows that all are compliant, either
by not manufacturing, placing on the market, or using the listed substances, or by
ensuring compliance with the relevant substance directive.
DNSH – Biodiversity, as referred to article 15(2) of Regulation (EU) 2020/852.
The activities comply with the criteria set out in
Appendix Dto Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
An assessment of all Scanfil’s applicable factories shows that all but one are
compliant, either having completed an EIA or meeting the national requirements of an
EU member-state.
55
TECHNICAL SCREENING CRITERIA CRITERIA DESCRIPTION SCANFIL COMPLIANCE
Substantial contribution - CCM 4.1, as referred to article 10(3) of Regulation (EU)
2020/852.
The activity generates electricity using solar PV technology.
Compliant. Scanfil has installed and now operates a roof solar generator system on
one of its manufacturing sites thus complying with the criteria.
DNSH – Climate adaptation, as referred to article 11(3) of Regulation (EU) 2020/852.
The activity complies with the criteria set out in
Appendix A to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
Non-compliant. Although Scanfil has completed hazard assessments using its
Disaster Evaluation Matrix, a detailed physical risk assessment, specifically for
climate change adaptation according to the EU Taxonomy’s requirements, has not yet
been conducted.
DNSH – Water, as referred to article 12(2) of Regulation (EU) 2020/852. N/A N/A
DNSH – Circular Economy, as referred to article 13(2) of Regulation (EU) 2020/852.
The activity assesses the availability of and, where feasible, uses equipment and
components of high durability and recyclability that are easy to dismantle and
refurbish.
Compliant. Scanfil conducts regular maintenance inspections of its roof solar
generator system where high durability and recyclability of all feasible components
are mandated (including panels, bolts, welds, support connections, junction box,
inverter structure, etc.)
DNSH – Pollution prevention, as referred to article 14(2) of Regulation (EU) 2020/852. N/A N/A
DNSH – Biodiversity, as referred to article 15(2) of Regulation (EU) 2020/852.
The activity complies with the criteria set out in
Appendix D to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021.
Compliant. Scanfil adheres to national laws in the countries where it operates. The
location and connection of the solar generator system required government approval
which Scanfil attained. EIAs are not required for rooftop solar cells, as they are
considered to not cause significant harm to biodiversity.
In October 2024, two more factories were acquired. However, since these
have not been involved in the manufacturing of the assessed activities,
these are not included in the DNSH assessment. Their contribution will
be accounted for in 2025.
For the eligible energy activity (CCM 4.1), the investment was assessed
for alignment according to its substantial contribution and DNSH criteria.
See the following matrix for a breakdown of the alignment assessment
of the activity:
56
2.1.4 Minimum safeguards
The minimum safeguard criteria require procedures to be in place
regarding anti-corruption, fair competition, taxation, and human rights.
These criteria have been assessed at the company level where it has been
concluded that all economic activities identified as potentially taxonomy-
aligned are covered by our company-wide policies and procedures.
Scanfil is dedicated to upholding human rights as outlined in the OECD
Guidelines for Multinational Enterprises, UN Guiding Principles on
Business and Human Rights, the ILO Fundamental Conventions on
Human Rights at Work, and the International Bill of Human Rights. This
commitment is embedded in Scanfil’s Code of Conduct (CoC) and
is communicated through mandatory training for all employees and
requirements for Scanfil suppliers.
Anti-corruption and fair competition
Scanfil is dedicated to upholding the highest standards of integrity and
fair competition. Scanfil strictly adheres to all applicable competition
laws, avoiding anti-competitive practices such as price-fixing and market
division. Scanfil employees receive comprehensive training to ensure
they understand and comply with these laws.
Scanfil’s CoC strictly prohibits all forms of corruption, with a whistleblowing
channel through which any observed or suspected misconduct can be
reported. No such deviations were identified in 2024. Additionally, Scanfil
is in the planning stage of implementing robust, company-wide anti-
corruption measures, including internal control tools and regular risk
assessments to identify and mitigate corruption risks. These measures
are scheduled to be fully implemented within the next couple of years.
Human rights
Scanfil upholds human rights as outlined in international declarations and
conventions, embedding this commitment in our Code of Conduct (CoC).
All employees undergo mandatory training to align their behaviors with
Scanfil’s values. Human rights performance is integrated into Scanfil’s
management system, which includes risk assessments and audits for
suppliers. Scanfil engages with stakeholders to consider their views in
Scanfil risk management processes. New suppliers must sign Scanfil’s
Supplier Code of Conduct and undergo a risk assessment process.
Scanfil uses EcoVadis to assess the sustainability performance of its
suppliers and implement corrective measures for those who do not
meet Scanfil’s standards. The effectiveness of Scanfil's human rights
efforts is tracked through regular audits and stakeholder feedback.
A whistleblower service allows reporting of human rights violations,
handled by an internal council with monthly assessments and follow-ups.
Taxation
Scanfil complies with tax laws and regulations in all countries where
Scanfil operates, ensuring taxes are paid where value is created. Scanfil
adheres to applicable transfer pricing rules and guidelines developed by
the OECD and other regulatory bodies. Relevant and accurate information
is provided to tax authorities in a timely manner. Transactions between
related companies follow the arm's length principle to ensure market-
based pricing.
Sustainable development and corporate governance
Scanfil contributes to economic, environmental, and social development
through compliance with Scanfil’s Code of Conduct and sustainability
practices. Scanfil supports local capacity building, promotes education,
and creates employment opportunities. Good corporate governance
principles are supported and applied, with effective self-regulatory
practices developed. Transparency in lobbying activities is ensured,
avoiding exceptions not prescribed by law. Risk-based due diligence
is conducted to identify, prevent, and mitigate negative impacts. Scanfil
engages meaningfully with stakeholders, considering their views in
decision-making processes.
Environmental responsibility
Scanfil identifies and manages negative environmental impacts,
establishing and maintaining an environmental management system.
Scanfil sets measurable goals and strategies to improve environmental
performance, with transparency in reporting progress. Employees are
educated about environmental, health, and safety issues, promoting
awareness among customers and stakeholders. Scanfil cooperates
with authorities and other actors to address negative environmental
impacts and promote environmental protection.
Employment and industrial relations
Scanfil respects workers' rights to form or join trade unions and
recognizes these for collective bargaining. Scanfil contributes to the
abolition of child and forced labor and promotes equal opportunities
and treatment in employment without discrimination. A safe and healthy
working environment is provided in line with the ILO's declaration on
fundamental principles and rights at work. Scanfil employs local workers
and offers training to improve their skills, giving reasonable notice
to worker representatives in the event of major changes affecting
employment.
Information disclosure
Scanfil provides regular, reliable, clear, and complete information on all
material matters in Scanfil's yearly and quarterly reports. The disclosure
includes financial and operational results, corporate goals, sustainability-
related information, capital structures, major shareholdings, board
composition and remuneration, related-party transactions, foreseeable
risk factors, and governance structures. Scanfil follows internationally
recognized accounting and information standards and conducts annual
external audits to ensure financial reports are accurate and reliable.
Access to grievance mechanisms
Scanfil establishes or participates in effective grievance mechanisms
at the operational level for individuals and communities that may be
negatively affected. Scanfil emphasizes that any grievance activities,
including state-based mechanisms, are not impeded by the company.
All participations in human rights grievance or mediation processes are
protected and will not be subject to any negative after-effects.
57
2.1.5 2024 assessment summary
As a result of the revised reporting methodology, where activities are
assessed strictly on how they conform to the technical screenings
without reference to the customer’s operations, the distribution of eligible
activities has changed from last year’s reporting results. Furthermore, the
2024 assessment finds that whilst Scanfil currently has eligible activities
through climate change mitigation related to its manufacturing process
(CCM 3.5 & CCM 3.20) and from its energy investments (CCM 4.1), none
of the economic activities were identified as taxonomy-aligned. This is
mainly due to the DNSH criteria regarding climate change adaptation.
Scanfil will investigate the potential of further aligning its activities in
the future.
Scanfil Taxonomy KPIs for the year 2024 are presented in the tables of
the following pages.
Double counting has been avoided by classifying external revenue
streams into taxonomy-eligible economic activities only once. The shares
of eligible and aligned net sales have been used as a key to calculate
eligible and aligned Opex and Capex. The risk of double counting is
further reduced because Scanfil only reports compliance with the first
environmental objective, climate change mitigation.
Scanfil Taxonomy KPIs for the year 2024 are presented in the tables of
the following pages.
58
2.1.6 Turnover
Scanfil operates as an electronics manufacturing services (EMS)
provider, specializing in the production of components and products
for its customers. The bulk of Scanfil’s operations are classified under
NACE code 26 (Manufacturing of computers and electronic and optical
products), which is not currently addressed in the initial Delegated Act on
Climate. Scanfil serves roughly 160 active customers and produces about
10,000 different products annually. The end products of its customers
include medical devices, heat pumps, recycling systems, elevators,
industrial pumps, and frequency converters. Scanfil’s taxonomy-eligible
activities are primarily within the Energy & Cleantech sector, while other
business areas are not yet covered by the Taxonomy Regulation. The
revenue is based on Scanfil’s revenue as recognized per IFRS 15. The
numerator is determined by the revenue from factories responsible for
the sale of products or components related to the associated eligible
activities.
2.1.7 Capital Expenditure
In the context of the EU Taxonomy, CapEx (Capital Expenditure) is
categorized into three types of investments in sustainable activities:
1. CapEx A: This includes expenditures related to assets or
processes that are already aligned with the EU Taxonomy. These
are investments in activities that meet the criteria for substantial
contribution to climate and environmental objectives and do no
significant harm (DNSH) to other objectives.
2. CapEx B: This covers expenditures aimed at upgrading or
transforming existing assets or processes to become aligned with
the EU Taxonomy. These investments are intended to bring non-
aligned activities into compliance with the taxonomy criteria.
3. CapEx C: This includes expenditures related to the acquisition of
new assets or processes that will be aligned with the EU Taxonomy.
These are forward-looking investments in new projects or
technologies that meet the taxonomy’s sustainability criteria.
In the context of Scanfils manufacturing activities, all capital expenditures
can be categorized as CapEx A. Scanfil, as an EMS company, is involved in
the sharing of production assets among various customers. For example,
SMT lines are utilized for multiple customers, making it impossible to
identify or separate investments in these assets based on taxonomy
eligibility or alignment. As such, the eligible CapEx has been calculated
as the share of total CapEx, proportionate to the eligible turnover. To
avoid double-counting, the CapEx from all other eligible activities is first
subtracted. For this year, these activities constituted one energy-related
investment. It includes purchases of property, plant, and equipment,
intangible assets, and right-of-use assets.
The CapEx for Scanfil’s energy investment for a roof solar generator
system is directly attributable to a single cost and categorized as CapEx C.
2.1.8 Operating Expenditure
The Taxonomy regulation defines OpEx as expenses related to assets
and economic activities that generate taxonomy-eligible net sales. This
includes costs directly associated with the maintenance and servicing
of assets, such as facility improvements.
The method for calculating OpEx is the same as with CapEx for
manufacturing activities with regard to the share of total CapEx, being
proportionate to the eligible turnover. Again, to avoid double-counting,
the OpEx from all other eligible activities is first subtracted. For this year,
those activities comprised the energy-related investment.
The OpEx for Scanfil’s energy investment for a roof solar generator
system is directly attributable to a single set of costs.
CapEx KPI MEUR
Additions to property, plant and equipment 17.70
Additions to intangible assets 13.11
Additions to capitalized right-of-use assets 8.45
Total 39.25
OpEx KPI MEUR
Cost of short-term leases 1.56
Costs of maintenance, repair and equipment 11.57
Total 13.13
59
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities (1) Code (2) Turnover (3)
Proportion
of turnover,
year 2024 (4)
Climate
change
mitigation (5)
Climate
change
adaptation
(6)
Water (7)
Pollution (8)
Circular
economy (9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution (14)
Circular
economy (15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or -eligible
(A.2.)turnover,
year 2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
MEUR % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) - - - - - - - - - - - - - - -
Of which enabling - - - - - - - - - E
Of which transitional - - - - T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of batteries CCM 3.4 0 0.00 % EL EL N/EL N/EL N/EL N/EL 2.11 %
Manufacturer of energy efficiency equipment for buildings CCM 3.5 39.09 5.01 % EL EL N/EL N/EL N/EL N/EL 8.44 %
Manufacture, installation, and servicing of high, medium
and low voltage electrical equipment for electrical
transmission and distribution that result in or enable a
substantial contribution to climate change mitigation CCM 3.20 13.49 1.73 % EL N/EL N/EL N/EL N/EL N/EL 0.00 %
Turnover of Taxonomy eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities (A.2) 52.58 6.74 % 0 % 0 % 0 % 0 % 0 % 0 % 10.54 %
Total (A.1+A.2) 52.58 6.74 % 0 % 0 % 0 % 0 % 0 % 0 % 10.54 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 727.33 93.26 %
Total (A+B) 779.91 100 %
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2024
Legends of the tables
A.1.
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
A.2
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective
Scanfil plc’s principles for defining turnover, capital expenditure and operating expenditure
can be found in notes 1.1., 1.5., 3.2., 3.3. and 3.4. in the Financial Statements.
60
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2024
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities (1) Code (2) CapEx (3)
Proportion of
CapEx, year
2024 (4)
Climate
change
mitigation (5)
Climate
change
adaptation
(6)
Water (7)
Pollution (8)
Circular
economy (9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution (14)
Circular
economy (15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or -eligible
(A.2.)turnover,
year 2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
MEUR % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) - - - - - - - - - - - - - - -
Of which enabling - - - - - - - - - E
Of which transitional - - - - T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of batteries CCM 3.4 0 0.00 % EL EL N/EL N/EL N/EL N/EL 2.11 %
Manufacturer of energy efficiency equipment for buildings CCM 3.5 1.97 5.01 % EL EL N/EL N/EL N/EL N/EL 8.44 %
Manufacture, installation, and servicing of high, medium
and low voltage electrical equipment for electrical
transmission and distribution that result in or enable a
substantial contribution to climate change mitigation CCM 3.20 0.68 1.73 % EL N/EL N/EL N/EL N/EL N/EL 0.00 %
Electricity generation using solar photovoltaic technology CCM 4.1 0.97 2.46 % EL EL N/EL N/EL N/EL N/EL 0.00 %
CapEx of Taxonomy eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities (A.2) 3.61 9.21 % 9.21 % 0 % 0 % 0 % 0 % 0 % 10.54 %
Total (A.1+A.2) 3.61 9.21 % 9.21 % 0 % 0 % 0 % 0 % 0 % 10.54 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 35.64 90.79 %
Total (A+B) 39.25 100 %
61
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2024
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities (1) Code (2) OpEx (3)
Proportion of
OpEx, year
2024 (4)
Climate
change
mitigation (5)
Climate
change
adaptation
(6)
Water (7)
Pollution (8)
Circular
economy (9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution (14)
Circular
economy (15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or -eligible
(A.2.)turnover,
year 2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
MEUR % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) - - - - - - - - - - - - - - -
Of which enabling - - - - - - - - - E
Of which transitional - - - - T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of batteries CCM 3.4 0 0.00 % EL EL N/EL N/EL N/EL N/EL 2.11 %
Manufacturer of energy efficiency equipment for buildings CCM 3.5 0.66 5.01 % EL EL N/EL N/EL N/EL N/EL 8.44 %
Manufacture, installation, and servicing of high, medium
and low voltage electrical equipment for electrical
transmission and distribution that result in or enable a
substantial contribution to climate change mitigation CCM 3.20 0.23 1.73 % EL N/EL N/EL N/EL N/EL N/EL 0.00 %
Electricity generation using solar photovoltaic technology CCM 4.1 0.01 0.10 % EL EL N/EL N/EL N/EL N/EL 0.00 %
OpEx of Taxonomy eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities (A.2) 0.90 6.84 % 6.84 % 0 % 0 % 0 % 0 % 0 % 10.54 %
Total (A.1+A.2) 0.90 6.84 % 6.84 % 0 % 0 % 0 % 0 % 0 % 10.54 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 12.23 93.16 %
Total (A+B) 13.13 100 %
62
NUCLEAR ENERGY RELATED ACTIVITIES YES/NO
1.
The undertaking carries out, funds, or has exposure to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds, or has exposure to the construction and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using best the available technologies.
NO
3
The undertaking carries out, funds, or has exposures to the safe operation of existing nuclear installations that produce electricity
or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
FOSSIL GAS RELATED ACTIVITIES
4.
The undertaking carries out, funds, or has exposure to the construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds, or has exposure to the construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds, or has exposure to the construction, refurbishment, and operation of heat generation facilities
that produce heat/cool using fossil gaseous fuels.
NO
2.1.9 Delegated regulations 2022/1214
Most of Scanfil’s operations fall under NACE code 26, Manufacturer
of computer, electronic and optical products, in accordance with the
statistical classification of economic activities established by regulation
(EC) no 1893/2006. As an electronics manufacturing service (“EMS”)
Scanfil has customers in the Energy & Cleantech segment but rarely
with knowledge of in-depth energy related activities.
63
2.2 Climate change
2.2.1 Transition plan for
climate change mitigation
Scanfil has not yet developed a transition plan for climate change
mitigation in accordance with the disclosure requirements outlined. The
company aims to decide on when it will adopt a transition plan by 2025.
Scanfil is committed to a 55.8% reduction in absolute scope 1 and 2
Greenhouse Gas (GHG) emissions by 2030 with 2020 as the baseline
year.* Scanfil is also committed to reducing absolute scope 3 GHG
emissions from purchased goods and services, capital goods, fuel- and
energy-related activities, upstream transportation and distribution, waste
generated in operations, business travel, and employee commuting by
25% by 2030 with 2022 as the baseline year.
*The target boundary includes biogenic land-related emissions and
removals from bioenergy feedstocks.
In 2024, the company reported a 48% decrease in scope 1+2 GHG
emissions compared to the 2020 baseline and a 26% decrease in
scope 3 GHG emissions compared to 2022. However, the targets for
scope 1+2 and scope 3 present challenges, particularly considering the
anticipated annual organic turnover growth rate of 5-7%.
As a global enterprise, business travel for employees is essential,
but Scanfil is actively working to minimize it by leveraging advanced
technology and promoting virtual meetings. Employees are consistently
encouraged to select the most environmentally sustainable options
for travel and meetings. All business travels are measured at the site
level and categorized into different types of transport, such as car,
train, and flight.
The absolute biggest factor for Scanfil’s GHG emissions is scope 3.1,
Purchased goods and services. Purchased goods and services account
for 61 % of Scanfil’s total GHG emissions and are, therefore the focus of
activities. An important activity that already started in 2024 is to update
the business system with data on GHG emissions per component. It
provides the opportunity to measure and understand the GHG emissions
of delivered products as well as the opportunity to compare components
from different manufacturers.
By having the information in Scanfil’s ERP system, any improvement
data can be entered, and a direct update of the GHG emissions can
be perceived. The objective is to have data on GHG emissions for each
purchased goods and services as well as to have GHG emissions as a
purchase criterion in the same way as cost, quality and delivery ability.
To address GHG emissions from daily commuting, Scanfil has
implemented bus transportation for staff at several of its factories. In
addition, the company’s revised vehicle policy prioritizes low-emission
vehicles, including hybrids and electric cars. All Scanfil sites calculate
their employees’ commuting based on a careful assessment of transport
patterns as a basis for finding improvement opportunities and being
able to offer the employees attractive opportunities for environmentally
friendly alternatives.
Scanfil’s GHG emission reduction targets (scope 1-3) have received
validation from the Science Based Targets initiative (SBTi) in September
2024, adhering to the stringent criteria of the Paris Agreement, which
aims to limit global warming to 1.5 degrees Celsius. The scope 3 target
also relates to Scanfil’s suppliers meeting the rigorous standards set
by the SBTi and aligns with best practices.
Furthermore, Scanfil has committed to ensuring that 60% of its total
energy consumption is fossil-free by 2030, which is an increase from
the previous target of 50% set in 2020. As of 2024, the proportion of
fossil-free energy rose to 50%, up from a baseline of 28% in 2020.
For electricity, Scanfil has set up a target to achieve 100% renewable
electricity sourcing by 2030 with 2020 as the baseline year. In 2024,
the proportion of fossil-free electricity amounted to 54% of the total
electricity consumption, which is an increase of 31% in comparison to
the baseline. Scanfil works actively to negotiate fossil-free electricity,
and the factories in Poland, Sweden, Finland, and Germany have fossil-
free electricity.
2.2.2 Policies related to climate
change mitigation and adaptations
Scanfil’s policies related to climate change mitigation and adaptations
consist of 1) Environmental Policy, 2) Code of Conduct, and 3) Supplier
Code of Conduct.
Scanfil’s policies encompass all areas of operations and upstream
activities and are applied across all geographical locations where
business is conducted. The policies strive to manage identified risks
and opportunities relating to reducing the environmental impact.
Environmental Policy
Scanfil’s Environmental Policy is a comprehensive declaration of the
commitment to using renewable resources, streamlining processes,
and continuously improving environmental efforts.
64
The Environmental Policy is governed by the requirements of the
quality and environmental managements system, ISO 9001 and 14001,
respectively.
Scanfil states in the Environmental Policy its aim to mitigate climate
change by striving for fossil-free energy consumption.
Specific actions for achieving this are not currently mentioned in the
Environmental Policy but it includes purchasing energy from renewable
resources for its production facilities. In addition, Scanfil has started to
develop its own energy production to adapt to climate change.
The person responsible for implementing and following up on the
Environmental Policy is the Director Global Sustainability at Scanfil.
Internal Code of Conduct
The internal Code of Conduct states that Scanfil works with continuous
improvements by taking environmental aspects and the demands from
customers into account, acknowledging the effects of production on the
environment as well as trying to minimize environmental risks.
All Scanfil employees receive regular training regarding the Code of
Conduct. In addition, it is also mandatory training for new employees
and part of the onboarding process. Employees must be aware of
Scanfil’s commitment to environmental issues and this commitment
is encouraged in daily work.
Environmental principles stated in the Code of Conduct are aligned
with Scanfil’s ambitions related to reducing GHG emissions, renewable
energy consumption and production, and waste.
The person responsible for implementing and following up on the Internal
Code of Conduct is the Director Global Sustainability at Scanfil.
Supplier Code of Conduct
A major challenge for Scanfil is related to GHG emissions for purchased
goods and services in scope 3.1.
The purpose of Scanfil’s Supplier Code of Conduct is to align supplier
efforts with the company’s overarching targets relating to climate change
mitigation and adaptation. Scanfil is engaged in several activities to
reduce GHG emissions in the upstream value chain, including monitoring
GHG emissions on a material and product level. This enables Scanfil to
assess the GHG performance of its suppliers.
The Supplier Code of Conduct is also an important tool in aligning
Scanfil’s procurement strategy with climate change adaptation measures
in the future. Taking geographical aspects into consideration reduces
the risk of disruptions in the value chain.
The Supplier Code of Conduct states that energy consumption and
greenhouse gas emissions are to be tracked and documented, at supplier
facilities and/or at the corporate level. Participants are to look for cost-
effective methods to improve energy efficiency and minimize their energy
consumption and greenhouse gas emissions.
The person responsible for implementing and following up the Supplier
Code of Conduct is the Director Global Sustainability at Scanfil.
Information regarding the participants’ environmental practices and
performance is to be disclosed following the applicable regulations and
prevailing industry practices. The table below presents the company’s
policies concerning these topics.
65
Policy Description of policy Scope of policy
Environmental
Policy
Scanfil’s Environmental Policy aims to position the company as a reliable partner
through exceptional performance, integrating environmental considerations
into all business strategies. It commits to compliance with all relevant laws
and standards, actively working to minimize the environmental impact, reduce
greenhouse gas emissions, and pursue the implementation of renewable energy
sources. According to the environmental policy, Scanfil will continuously work to
prevent environmental impact by reducing air and water pollution, conserving
natural resources, and continuously enhancing practices to meet stakeholder
expectations.
• Environmental integration in strategy
• Regulatory compliance
• Impact prevention and reduction
• Resource conservation
• Stakeholder engagement and continuous improvement
Code of
Conduct
The environmental section of Scanfil’s Code of Conduct emphasizes continuous
improvement and accountability in minimizing environmental impact. It outlines
the key principles, such as compliance with environmental legislation, efficient
use of natural resources, and reduction of GHG emissions. Scanfil commits to
transparency in environmental reporting, providing regular updates to authorities.
Employee training is also prioritized to foster a culture of environmental
responsibility, while ongoing technological and procedural advancements
support resource efficiency and sustainable practices throughout Scanfil’s own
operations.
The environmental scope in Scanfil’s Code of Conduct emphasizes a
commitment to continuous improvement in environmental sustainability. Scanfil
recognizes the impact of its production on the environment and is dedicated
to minimizing environmental hazards through various initiatives. These include
reducing carbon footprint, minimizing fossil fuel consumption, managing water
usage, and waste reduction. Compliance with local environmental laws and
efficient use of global natural resources are prioritized. Scanfil also aims to reduce
industrial emissions and enhance recycling efforts, regularly informing authorities
of environmental impact and providing training to ensure employee commitment
to these sustainable practices.
Supplier Code
of Conduct
The environmental section of Scanfil’s Supplier Code of Conduct emphasizes the
importance of sustainable practices and pollution prevention. Key points include:
• Resource responsibility: Suppliers are expected to use resources
responsibly and work toward minimizing their environmental impact.
• Energy efficiency: According to the Supplier Code of Conduct, energy
consumption and greenhouse gas emissions are to be tracked and
documented, at the facility and/or corporate level.
• Transparency: Suppliers should disclose their environmental practices
and performance according to the applicable regulations and industry
standards, as well as their GHG emissions.
Overall, Scanfil expects its suppliers to commit to environmentally responsible
operations that align with the principles of the UN Global Compact initiative.
The environmental scope of the Scanfil Supplier Code of Conduct emphasizes
pollution prevention, resource reduction, and responsible handling of hazardous
substances. Suppliers are expected to actively minimize environmental impact by
reducing emissions, waste, and energy consumption. They must ensure the safe
management of hazardous materials and disclose energy and emissions data in
alignment with industry standards.
Suppliers are encouraged to improve energy efficiency and reduce greenhouse
gas emissions while maintaining transparency about their environmental
practices. This aligns with Scanfil’s commitment to sustainability and
environmental responsibility throughout its supply chain.
66
2.2.3 Actions and resources in
relation to climate change policies
Greenhouse gas emissions and energy
in the company’s operations
Scanfil is developing a comprehensive plan to mitigate climate change
in its own operations. The plan includes investments and measures to
replace fossil fuels with renewable fuels and fossil-free electricity across
all the Scanfil’s factories to lower GHG emissions.
One of Scanfil’s key actions for each production unit in its own operations
is developing a long-term strategy to achieve fossil-free operations.
These measures apply to the electricity and fuels used for heating at
the production facilities. Moreover, Scanfil continues its transition to fully
renewable or fossil-free alternatives for its purchased energy.
Furthermore, Scanfil continuously improves the efficiency of its energy
and water use in its own operations through ongoing development and
investment. Reducing water use is an important part of climate change
mitigation, as the energy required to process water and wastewater
treatment generates greenhouse gas emissions.
To improve the overall quality of Scanfil, long-term 2-3% of yearly revenue
is invested in the development of factories. There is an investment plan
for each factory initiated. During the reporting year, the implementation of
solar cells at the Suzhou facility was the single largest initiative to reduce
fossil fuel emissions and improve energy efficiency, resulting in a 20%
improvement in electricity consumption and an increase in the fossil-
free share of the Suzhou factory to 30%, together with 10% renewable
electricity sources. As of 2024, the investment is only measured on an
overarching level, and specific investments used, like the solar cells in
Suzhou cannot be disclosed.
Greenhouse gas emissions in the value chain
In 2024, Scanfil continued its long-term efforts to reduce greenhouse gas
emissions across the value chain. This year, Scanfil expanded its tracking
and reporting of indirect emissions from the value chain. This included
emissions from purchased goods and services, upstream suppliers,
upstream transportation, business travel, and employee commuting.
Scanfil Group encourages suppliers to set emission reduction targets
to mitigate climate change. Scanfil has also requested that all key
and preferred suppliers make an EcoVadis assessment, and this
recommendation is part of the Supplier Code of Conduct. The supplier’s
achievement is monitored in supplier assessments and audits.
Climate change adaptation
Adaptation to climate change requires handling acute threats, such as
extreme weather events, and chronic risks arising from climate change’s
effects on electricity, water, and other critical resources. For Scanfil, the
biggest risk is in the availability of purchased material, which can affect
the business negatively if supply is disrupted. To mitigate this, Scanfil’s
purchasing team closely monitors the situation and uses risk assessment
and redundancy strategies.
Currently, Scanfil has no defined scope or time horizon for this key
action. During 2025, Scanfil will decide on when this will be implemented.
Developing a net zero strategy and targets
Scanfil’s short-term 2030 program started in September 2023 with a
central team of people, with the support of all units’ designated managers,
to drive the scope 3 reduction and further improve the performance of
Scanfil’s scope 1 & 2 GHG emissions.
An external consultant has provided guidance since the program’s
inception. After the initial analysis of Scanfil’s carbon footprint, scope 1
& 2 emissions have been continuously monitored. A full carbon footprint
analysis across the entire value chain has been carried out, and as of
March 2024, scope 3 GHG emissions are now also in scope.
At present, Scanfil has not yet established a net-zero target for 2050.
However, Scanfil is commited to setting a net-zero target within the next
few years through the SBTi.
Developing the process for sustainability reporting
Having acquired the Position Green reporting tool in 2023, Scanfil
obtained direct reporting from all the sites and offices from January
2024. The intervals for reporting depend on the availability of data, but
the main rule is that all quantitative data must be reported as frequently
as possible (quarterly or semi-annually), while qualitative data is reported
at longer intervals.
As the implementation of Position Green is new, Scanfil has no defined
scope or time horizon for this key action. During 2025, Scanfil will decide
when this will be implemented and how the key actions can be expanded.
Outcome of climate change mitigation actions
For scope 1 and 2 GHG emissions, Scanfil has achieved 48% reduction
by 2024. These are some of the long-term actions and reduction is
expected to continue. By 2030, Scanfil aims to reduce scope 1 and 2
GHG emissions by 55.8%. For scope 3 GHG emissions, Scanfil has
achieved a reduction of 26% by 2024. For the target year 2030, the
scope 3 GHG emissions must have been reduced by 25.0%.
67
Action Scope of action
Mitigate climate change in its operations
Scanfil is committed to reducing its absolute greenhouse gas (GHG) emissions significantly by 2030, with specific
targets set for scope 1, 2, and 3 emissions:
• Scope 1 and 2 emissions: Scanfil aims for a 55.8% reduction from 2020 levels by 2030.
• Scope 3 emissions: Scanfil targets a 25% reduction in scope 3 emissions from the baseline year of 2022, which includes
emissions from purchased goods and services, capital goods, fuel-related activities, and more.
• Sustainable travel: While business travel is necessary for operations, Scanfil is working to minimize it by promoting virtual
meetings and encouraging employees to choose environmentally friendly travel options. Travel emissions are tracked and
categorized.
• Commuting solutions: To reduce emissions from employee commuting, Scanfil provides bus transportation and has adopted a
vehicle policy favoring low-emission vehicles. Commuting patterns are assessed to identify opportunities for more sustainable
transport options.
• Energy consumption: Scanfil uses energy for heating, cooling, lighting, and production, consuming a significant amount of
electricity and total energy. Scanfil is actively negotiating for fossil-free electricity supply, and the factories in Poland, Sweden,
Finland, and Germany are already using such energy sources.
Mitigate climate change in the value chain Purchased goods and services represent the largest portion of Scanfil’s GHG emissions. Scanfil is updating its business system
to incorporate GHG emissions data per component, enabling better measurement and comparison of the carbon footprint
associated with different suppliers.
Capital and operational expenditures related
to EU Taxonomy-eligible activities
Scanfil’s CapEx relevant line items in the financial
statements are detailed as follows:
1. Additions to property, plant, and equipment
A value of 1.19 MEUR stems from all type A capital expenditures
related to the physical assets required for the manufacturing
of products and components contributing to Climate Change
Mitigation [CCM] (EU Taxonomy activities 3.5 & 3.20).
Energy-related investments are type C capital expenditures
contributing to CCM (EU Taxonomy activity 4.1). Its value is 0.97
MEUR, which stems from an investment in rooftop solar cells.
2. Additions to intangible assets
A value of 0.88 MEUR stems from all type A capital expenditures
related to the non-physical assets required for the manufacturing
of products and components of contributing to CCM (EU
Taxonomy activities 3.5 & 3.20), including patents, trademarks and
software.
3. Additions to capitalized right-of-use assets
A value of 0.57 MEUR stems from all type A capital expenditures
related to the lease agreements required for the manufacturing of
products and components of contributing to CCM (EU Taxonomy
activities 3.5 & 3.20).
Scanfil’s OpEx KPIs are detailed as follows:
1. Costs of short-term leases
A value of 0.11 MEUR stems from all operating expenditures
required for the continuation of climate change mitigation
contributions for manufacturing to CCM (EU Taxonomy activities
3.5, 3.20).
2. Costs of maintenance, repair and equipment
A value of 0.78 MEUR stems from all operating expenditures
required for the continuation of climate change mitigation
contributions for manufacturing to CCM (EU Taxonomy activities
3.5, 3.20). For energy-related activities contributing to CCM (EU
Taxonomy activity 4.1), a value of 0.01 MEUR stems from the OpEx
of the rooftop solar cells.
Scanfil's KPIs for CapEx and OpEx have been
calculated with the following methodology:
1. CapEx and OpEx related to manufacturing for CCM (EU Taxonomy
activities 3.5 & 3.20)
Since Scanfil’s existing CapEx is used for both taxonomy-eligible
and non-eligible activities without a clear separation, the CapEx
value is calculated based on the proportion of taxonomy-eligible
and aligned turnover. For example, if 7 % of total turnover is
taxonomy-eligible, then 7 % of CapEx is allocated accordingly. The
same method applies to OpEx related to manufacturing.
2. CapEx and OpEx related to energy-related investments for CCM
(EU Taxonomy activity 4.1)
For energy-related investments, CapEx and OpEx are clearly
distinguished. As such, their value is directly attributed to the
specific projects and initiatives that are taxonomy eligible. These
expenditures are fully allocated to the relevant line items in the
financial statements, ensuring transparency and compliance with
the EU Taxonomy Regulation.
Scanfil's planned significant CapEx and OpEx investments
are focused on renewable energy and energy storage.
As of yet, Scanfil has no ‘CapEx plan’ related to the expansion
of Taxonomy-aligned economic activities or the purchase
of output from Taxonomy-aligned economic activities and
individual measures enabling the target activities to become
low-carbon or to lead to greenhouse gas reductions.
This will be a prioritized undertaking for 2025.
68
2.2.4 Targets related to climate
change mitigation and adaptation
Scanfil’s reporting of scope 1, 2, and 3 emissions, covers all factories,
warehouses, and offices. Scope 1 and 2 have a baseline from 2020 and
scope 3 has a baseline from 2022.
In May 2015, Scanfil announced the acquisition of the company
PartnerTech AB. During the time leading up to 2020, the company has
successfully been integrated into Scanfil’s operations leading to minimal
effects on the results of the baseline year 2020. The Covid-19 pandemic
that occurred in 2020 has had minimal effects on the company’s turnover
as the business operations were minimally impacted which can be seen
through minimal deviations in comparison to other year’s turnovers.
The baseline year for scope 3 is set to 2022 and there are no great
deviations in terms of turnover for the baseline year in comparison to
previous years.
For total GHG emissions, Scanfil uses the market-based method to
track progress towards its targets for scope 1 and 2 as well as scope 3.
In 2025, Scanfil will decide on when a climate scenario will be carried
out to detect relevant environmental, societal, technology, market, and
policy developments to determine its decarbonization levers.
The consistency of GHG emission reduction targets with the GHG
inventory boundaries has been ensured by aligning the scope and
boundaries of the targets with those defined in the inventory methodology.
In addition, Scanfil performed a comprehensive review between 2023-
2024 of the scope 3 GHG emissions. As of 2024, all factories and
offices report in an environmental reporting system, Position Green,
which ensures continuity, adaptation, and enhanced data quality. This
also applies to scope 1 and 2 GHG emissions.
Scanfil has validated short-term targets for 2030 via SBTi. Targets
approved by the SBTi are scientifically based because they are built on
the latest climate research and are designed to align with the goals of
the Paris Agreement.
Currently, Scanfil does not have a net-zero target for 2050 but is
committed to setting up a net-zero target within a few years via SBTi.
For Scanfil’s SBTi short-term targets, the expected outcome for 2030,
and the progress until 2025 are presented below:
Scope 1 and 2 GHG emissions:
• Target: Reduce absolute GHG emissions by 55.8% by 2030 with
2020 as the baseline year, equating to a 5.58% yearly reduction.
• Progress: After 2024, the GHG emissions in scope 1 and 2 have
been reduced from 16,901 tCO2e to 8,774 tCO2e, equating to a
reduction of 48%.
Scope 3 GHG emissions (category 1-7):
• Target: Reduce the absolute GHG emissions by 25% by 2030 with
2022 as the baseline year, equating to a 3.13% yearly reduction.
• Progress: After 2024, the GHG emissions have been reduced from
653,454 tCO2e to 482,319 tCO2e, equating to a reduction of 26%.
Scanfil’s renewable energy sourcing target and progress are presented
below:
• Target: Achieve 100% fossil-free electricity sourcing by 2030 with
2020 as the baseline year equating to a 7.7% yearly increase.
• Progress: The sourcing of fossil-free electricity has been increased
from 23% to 54%.
• Target: Achieve 60% fossil-free energy sourcing by 2030 with
2020 as the baseline year, equating to a 3.2% yearly increase.
• Progress: The sourcing of fossil-free energy has been increased
from 28% to 50%.
69
Scope Baseline year Baseline Target 2030
Scope 1 GHG emissions
Move to district heating, biofuel heating, geothermal heating, energy reduction of air conditioning, electric cars 2020 1,507 874
Scope 2 GHG emissions
Energy reduction activities, green electricity, solar cells 2020 15,394 6,600
Significant scope 3 GHG emissions
1. Purchased goods and services
Supplier engagement to improve data quality and reduce emissions 2022 616,438 462,329
2. Capital goods
Supplier engagement to improve data quality and reduce emissions 2022 16,322 12,242
3. Fuel and energy-related activities (not included in scope 1 or scope 2)
Fuel and energy supplier base management 2022 4,554 3,416
4. Upstream transportation and distribution
Transport and distribution supplier base management 2022 12,959 9,719
5. Waste generated in operations
No planned actions 2022 60 45
6. Business traveling
No planned actions 2022 263 197
7. Employee commuting
Offer environmentally friendly alternatives for employee commuting such as carpooling, bus transport, and company
bicycles
2022 2,858 2,144
70
2.2.5 Energy consumption and mix
Scanfil tracks the final energy consumption across all its production
facilities. Final energy consumption refers to the total fuel, electricity, and
heat consumed, without accounting for the efficiency factors of those
energy sources. To calculate the final energy consumption, Scanfil sums
up the fuel used at its factories, warehouses, and offices as well as the
amount of electricity and heat purchased.
Energy consumption and combination of energy sources
The table presents Scanfil’s energy consumption and mix including
fossil, nuclear and renewable sources.
Scanfil has invested in solar panels for its production facility in Suzhou,
China. These solar panels will provide the facility with self-produced
renewable energy. For 2024, the solar panels have resulted in a
production of 324 MWh from September to the end of 2024.
The self-produced energy from the solar panels has been deducted
from the total renewable energy consumption to avoid double counting.
Scanfil does not produce any non-renewable energy within its operations.
Scanfil purchases certificates of fossil-free electricity. Suppliers are
trusted by Scanfil, as recognized suppliers from the respective areas
where Scanfil has business.
Energy consumption and mix 2024
1. Fuel consumption from coal and coal products (MWh) 0
2. Fuel consumption from crude oil and petroleum products (MWh) 4,976
3. Fuel consumption from natural gas (MWh) 1,779
4. Fuel consumption from other fossil sources (MWh)
0.39
5. Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 12,834
6. Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 19,589
Share of fossil sources in total energy consumption (%) 50
7. Consumption from nuclear sources (MWh) 2,291
Share of consumption from nuclear sources in total energy consumption (%) 6
8. Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable
hydrogen, etc.) (MWh)
184
9. Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 16,922
10. The consumption of self-generated non-fuel renewable energy (MWh) 324
11. Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 17,4 3 1
Share of renewable sources in total energy consumption (%) 44
12. Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11) 39,311
71
2.2.6 Gross scope 1, 2, 3 and
total GHG emissions
Gross scope 1, 2, 3 and total GHG emissions
In 2024, Scanfil started to utilize the Position Green sustainability
reporting system to report the company’s scope 1, 2, and 3 GHG
emissions. The transition to Position Green secures the data quality, both
in terms of activity data and environmental data. However, a comparison
of GHG emissions in scope 1 and 2 shows that the transition has had a
negligible impact on Scanfil’s climate footprint. This means that Scanfil is
confident in the accuracy of its previously communicated GHG emissions.
The GHG emission reporting has considered the GHG Protocol Corporate
Standard, the GHG Protocol Scope 2 Guidance, and the GHG Protocol
Corporate Value Chain Accounting and Reporting Standard.
Scanfil has used operational control as a consolidation approach
to define the organizational boundary. Scope 1 includes direct GHG
emissions from sources owned or controlled by Scanfil. The scope 1
GHG emissions have been calculated from the fuels used by production
units, where all production facilities at Scanfil have reported activity data
in Position Green. The calculation is based on supplier-specific emission
factors for fuels or national emission factors.
Scope 2 includes indirect GHG emissions from the production of
purchased electricity and heat consumed by Scanfil. Two different
methods are used for scope 2 GHG emissions. The market-based
method uses supplier-specific emission factors, supplemented with
national residual mix emission factors for untracked purchased electricity.
In the location-based method, country-specific average emission factors
for electricity are used. The residual mix factors and country-specific
factors have been obtained from the AIB (Association of Issuing Bodies)
report on emission factors. Currently, Scanfil purchases certificates on
fossil free electricity. The suppliers are trusted by Scanfil, as recognized
suppliers from the respective areas where Scanfil has business.
Energy intensity per net revenue 2024
Total energy consumption from activities in high climate
impact sectors per net revenue from activities in high
climate impact sectors (MWh/MEUR)
50.4
Energy intensity based on net revenue
Scanfil’s energy intensity is 50.4 MWh/MEUR. This is the first time that
Scanfil is reporting the energy intensity. Consequently, there are no
comparative figures available for benchmarking the energy intensity.
Net revenue from activities in high climate impact sectors
used to calculate energy intensity (MEUR)
Other net revenue (MEUR)
Total net revenue (MEUR)
All factories have contractual instruments; however, the contractual
instruments do not cover 100% of the purchased energy. Therefore, the
contractual instruments equal a total of 56%. Out of these contractual
instruments used for the sale and purchase of energy, 100% are bundled
with attributes, meaning 0% are unbundled energy attribute claims.
The types of bundled contractual instruments used are Guarantees of
origin (GO), Renewable electricity Certificates and Certificates of own
electricity production (Suzhou).
For scope 3 categories, the materiality was determined with respect
to Scanfil Group’s business areas. The GHG emission calculations
used spend-based and activity-based methods. For scope 3.11, the
calculations are limited to the usage of small and large PCBAs, and
the GHG emissions only cover direct emissions. In addition, the GHG
emissions from Scanfil’s offices are based on approximations.
Scope 3.8 to 3.10 and scope 3.12 to 3.15 were excluded from the
calculations, as they were deemed non-material with neglected impact on
the GHG emissions. In addition, Scanfil does not have significant leased
assets under scope 3 that are not already accounted for in scope 1 and
scope 2, nor does Scanfil engage in franchising. The operational data
used in the calculation is obtained from Scanfil’s internal systems. In the
absence of accurate data, assumptions have been used. The emission
factors used are mainly from global databases, including Ecoinvent 3.9.1,
EXIOBASE 3, DEFRA’s GHG conversion factors (full set 2022), and IEA’s
Life Cycle Upstream Emission Factors (2023).
Scanfil does not have emissions from investees nor joint arrangements
not structured through an entity.
In October 2024, Scanfil acquired SRXGlobal Pty Ltd. (SRX) to expand
its business in Asia-Pacific. The acquisition includes SRX factories in
Melbourne, Australia, and Johor Bahru, Malaysia, with 8 automated
SMT lines and about 300 employees. Financially, SRX’s had a turnover
of EUR 42.0 million and EUR 39.0 million for the years ending June 30,
2023, and June 30, 2024, respectively. Taking this into account, it will
All activities within Scanfil are considered to belong to sectors with
high climate impact. Scanfil’s activities as a manufacturing service
provider belong to category C Manufacturing of electronic components
in Regulation (EC) No 1893/2006 of the European Parliament and of
the Council.
Connectivity of energy intensity on net revenue
with financial reporting information
The table below outlines Scanfil’s net revenue in 2024 used to determine
the energy intensity. See the financial report for the reconciliation of net
revenue in Notes to the financial statements 1.1.
72
Scope 3 category Scope Motivation to exclusion Primary data (%) Secondary data (%)
1. Purchased goods and services x - 0 100
2. Capital goods x - 0 100
3. Fuel and energy-related activities(not included in scope 1 or
scope 2)
x 35 65
4. Upstream transportation and distribution x - 43 57
5. Waste generated in operations x - 61 39
6. Business travel x - 64 36
7. Employee commuting x - 35 65
8. Upstream leased assets -
All upstream leased assets are
reported in scope 1 and 2
- -
9. Downstream transportation -
Neglected impact on GHG
emissions
- -
10. Processing of sold products -
Neglected impact on GHG
emissions
- -
11. Use of sold products x
100 0
12. End-of-life treatment of sold products -
Neglected impact on GHG
emissions
- -
13. Downstream leased assets -
Scanfil does not have any
downstream leased assets
- -
14. Franchises -
Scanfil does not have any franchise
activities
- -
15. Investments -
Scanfil does not have any investment
activities outside its core business
- -
trigger a recalculation of the base years for scope 1 and 2 as well as
scope 3 according to Scanfil’s recalculation policy. The recalculations
are planned for 2025, and revised baselines will be reported in the
next reporting period. SRX’s fourth quarter data has been included in
Scanfil’s GHG reporting.
In total, Scanfil used 40% primary data and 60% secondary data in
scope 3 with respect to the GHG emissions.
For some data in scope 3, it was unknown whether the data type was
primary or secondary data. In these cases, it has been assumed that
the data type is secondary data.
The table below presents the scope 3 categories included in Scanfil’s
GHG reporting and the reasons why certain categories have been
excluded. Additionally, it includes information on the ratio of primary to
secondary data for each category.
73
The “Comparative” column is missing data for all scope 3 categories.
This is due to Scanfil starting the data collection for monitoring GHG
emissions in 2024.
As the table below describes, Scanfil has not set up any targets for 2025
and 2050. Additionally, Scanfil’s target for scope 3 GHG emissions does
not include category 3.11. Consequently, GHG emissions from scope 3.11
are not included in the annual % target / base year.
Scanfil is not part of any regulated emission trading schemes.
For scope 1, Scanfil emits 58 tons of biogenic CO2 emissions due to
the combustion of wood logs.
Furthermore, Scanfil is required to disclose biogenic emissions from the
combustion or biodegradation of biomass separately from the scope
2 GHG emissions as well scope 3 GHG emissions. Currently, Scanfil
uses Position Green to report on the GHG emissions in scope 2 and 3.
However, there are no fallback emission factors for biogenic emissions
in scope 2 and 3. Taking this into account, Scanfil has estimated the
biogenic emissions.
The emission factors for biogenic emissions are based on datasets from
Ecoinvent version 3.11. The net biogenic emissions have been approximated
as the difference between the impact category Climate Change: Biogenic
Emissions (incl. CO2) in LCIA IPCC 2021 (incl. biogenic CO2) and the
impact category Climate Change: biogenic (excl. CO2) in LCIA IPCC 2021.
The datasets used are considered as fair representations of the areas
and processes concerned
For the scope 3 biogenic emission calculations, scopes 3.1-3.7 and 3.11
are included, where the contribution from scope 3.7 has been assumed
to be neglected.
Taking this methodology into account, the biogenic emissions for scope
2 were estimated to be 814 tons of CO2, and for scope 3: 30,891 tons
of CO2. The results are subject to uncertainty; however, moving forward
Scanfil will improve the data quality and calculation methodology for
more representative results.
The following table discloses the results of Scanfil’s GHG reporting. The
base year for reporting in scope 1 and 2 is 2020, while the base year for
scope 3 is 2022. Data reported during Scanfil’s base years represent the
GHG emissions for the different base years, 2020 and 2022, respectively.
As a result, the total GHG emissions for location-based and market-based
methods contain summarized data from both base years.
74
Retrospective Milestones and target years
Scope 1 GHG emissions Base year
Comparative
2023
2024 % N / N-1 2025 2030 (2050) Annual % target / Base year
Gross scope 1 GHG emissions (tCO2eq) 1,507 1,227 1,706 % - 874 - . %
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) - - - - - -
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions (tCO2eq) 13,254 - 15,112 - - -
Gross market-based scope 2 GHG emissions (tCO2eq) 15,394 7,6 1 8 , -7 % - 6,600 - . %
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions (tCOeq) 935,492 - 7 3 7,12 8 - 490,091 - . %
1. Purchased goods and services 616,438 - 452,389 - 462,329 - . %
2. Capital goods 16,322 - 11,697 - 12,242 - . %
3. Fuel and energy-related activities (not included in scope 1 or scope 2) 4,554 - 4,504 - 3,416 - . %
4. Upstream transportation and distribution 12,959 - 9,706 - 9,719 - . %
5. Waste generated in operations 60 - 134 - 45 - . %
6. Business traveling 263 - 386 - 197 - . %
7. Employee commuting 2,858 - 3,503 - 2,144 - . %
8. Upstream leased assets - - - - - -
9. Downstream transportation - - - - - - -
10. Processing of sold products - - - - - -
11. Use of sold products* 282,038 - 254,809 - -
12. End-of-life treatment of sold products - - - - -
13. Downstream leased assets - - - - - - - -
14. Franchises - - - - - - - -
15. Investments - - - - - - - -
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq) 950,253 - 753,947 - - -
Total GHG emissions (market-based) (tCO2eq) 952,393 - 745,903 - 497,5 6 5 - . %
All rows marked with “ – “ indicate that there is no data to be reported.
* The total GHG emissions (location-based) and (market-based) sums up two different base years: 2020 for scope 1 and 2, and 2022 for
scope 3 * Note that 11. Use of sold products is not included in the annual % target / base year.
75
GHG intensity based on net revenue
Scanfil’s GHG intensity is 967 tCO2eq/MEUR using the location-based
method and 956 tCO2eq/MEUR using the market-based method. The
GHG emissions for both the location-based and market-based methods
are the same as those reported in the table above.
This is the first time that Scanfil is reporting on GHG intensity based on
net revenue. Consequently, there are no comparative figures available
for benchmarking.
Connectivity of GHG intensity on net revenue
with financial reporting information
The table below outlines Scanfil’s net revenue in 2024 which was used
to determine the intensity of GHG emissions. See the financial report for
the reconciliation of net revenue in Notes to the financial statements 1.1.
GHG intensity per net revenue 2024
Total GHG emissions (location-based) per net revenue
(tCO2eq/MEUR)
967
Total GHG emissions (market-based per net revenue
(tCO2eq/MEUR)
956
Net revenue used to calculate GHG intensity (MEUR)
Other net revenue (MEUR)
Total net revenue (MEUR)
2.2.7 GHG removals and GHG mitigation
projects financed through carbon credits
Scanfil does not finance any GHG removals and GHG mitigation projects
through carbon credits.
2.2.8 Internal carbon pricing
Scanfil does not apply any internal carbon pricing schemes. Thus, the
subtopic is considered non-material.
76
2.3.1 Policies related to pollution
In the Environmental Policy, Scanfil has committed to being a reliable
partner for customers and to complying with the laws, regulations,
and other requirements, which the company follows and relates to in
environmental aspects.
Environmental management and continued environmental performance
are governed by the requirements of the production units’ certified quality
and environmental management systems. Emissions and waste of all
types are to be minimized or eliminated at the source or by practices
such as the use of pollution control equipment, modifying production,
maintenance, and facility processes. Chemicals, waste, and other
materials posing a hazard to humans, or the environment are to be
identified, labeled, and managed to ensure safe handling, movement,
storage, use, recycling, reuse, and disposal. The Environmental Policy is
an internal Scanfil policy related to its own operation activities.
Through the selection, use, and development of technological and
economical solutions in Scanfil’s production processes, the Group
aims to reduce environmentally harmful industrial emissions classified
as Substances of very high concern (SVHC).
The Scanfil Supplier Code of Conduct states resources shall be used
responsibly and carefully. Suppliers’ efforts shall focus on reducing any
environmental burden associated with their business activities and
operational practices. Developments that lessen the environmental
and social effects of Scanfil’s business shall be supported. The Supplier
Code of Conduct mandates requirements for the value chain operations.
Usually, the material impact regarding information on SVHC to customers
is handled either by request or in the Scanfil customer contract. The
information to the Environmental Chemical Agency (ECHA) is handled
through mandatory Substances of concern inproduct (SCIP)-reports.
Scanfil’s Director Global Sustainability is accountable for the
implementation of both policies mentioned above.
Scanfil has policies in place relating to SVHC, however, these policies do
not fulfil the full requirements for policies adopted to manage material
sustainability matters. During 2025, Scanfil aims to decide when to start
working on aligning the policies with the requirements.
Since Scanfil is a contract manufacturing company, it produces outputs
based on its customer’s product specifications. Before signing any
agreements with new customers, Scanfil makes sure to thoroughly assess
and evaluate the customer’s operations and value chain activities to
make sure they are aligned with Scanfil’s policies and Code of Conduct.
Scanfil has no other authorities to decide what substances are used,
substituted, or phased out.
Scanfil’s Code of Conduct provides sufficient information, instructions,
training, and supervision to enable all employees to avoid hazards and
contribute to their own health and safety at work. Scanfil’s employees
are involved in health and safety decisions through consultation and
cooperation.
Scanfil complies with legal requirements, developing and implementing
appropriate health and safety procedures and working practices. Local
sites have instructions to be compliant with the Code of Conduct and
risk analyses are conducted per legal requirement.
Each substance used has its own risk instruction and safety data sheet
(SDS) with instructions on what to do if accidents occur.
2.3.2 Actions and resources
related to pollution
Scanfil has not currently adopted any actions relating to SVHC. During
2025, the company plans to decide on when to implement the action
plan. The key actions, with specified time horizons, will align with the
company’s policies and aim to mitigate negative impacts from SVHC,
where possible, in own operations and its value chain.
2.3.3 Targets related to pollution
At Scanfil, mandatory regulatory requirements and legislations of SVHC
are applied but the company has no specific targets. The reason is that
all product specifications are provided by customers.
Scanfil anticipates setting initial targets during 2025 as its data collection
and impact assessment processes are advanced. The targets that will
be set, are to be developed over time including measurable, timebound,
outcome-oriented targets with a baseline year in line with policies that
cover Scanfil’s own operations and handling of SVHC.
2.3.4 Pollution of air, water and soil
Scanfil does not consider pollution of air, water and soil as a material
topic. Thus, no information is disclosed.
2.3.5 Substances of concern and
substances of very high concern
Scanfil has implemented procedures to meet legislation based on EU
Directives such as, but not limited to, REACH and RoHS. The RoHS and
REACH Directives set obligations for companies working within the EU
2.3 Pollution
77
to implement procedures that will identify and control the use of any
restricted or forbidden material or chemicals.
As Scanfil is not a manufacturer of chemicals, the focus in compliance
work is on the incoming material. There are mainly two groups of materials
that need to be controlled.
A. The material used in Scanfil factories and needed for
manufacturing processes. This can be materials like tin, glue, oil,
paint, chemicals, etc.
B. The components or products used in final products (acc. bill of
material).
Scanfil manufacturing sites do control the chemicals or substances
used in the factories, but these are not included in the customer-owned
specification. This material is always controlled and handled according
to the RoHS and REACH Directives.
For the components and products specified by the customer that are
used in manufactured products, the information is obtained if the content
is under-reporting requirements. The information comes primarily from
Scanfil’s suppliers, but data can also be obtained through publicly
available material declarations.
Scanfil always informs its customers if the RoHS and REACH content
of the material is over the threshold value and mandated by legal
requirements, and in return, expects the customers to report any
deviations back to Scanfil. Scanfil always specifies in its purchase
orders and supplier agreements that suppliers must be aware of and
understand these requirements regardless of whether the supplier is
located within or outside the EU. In addition to this, an information letter
about changes in the directive is regularly sent to all Scanfil’s suppliers.
The SCIP database (Substances of very high concern in articles, as such
or in objects (Products)) is a vital tool established by the ECHA as part of
the European Union’s Waste Framework Directive. Its primary objective
is to improve transparency regarding the presence of substances of very
high concern in products and promote a circular economy by ensuring
safer recycling and disposal practices.
In alignment with the Waste Framework Directive, companies supplying
articles containing substances of very high concern must submit
detailed information to the SCIP database. These SVHCs are listed in
the EU REACH regulation’s Candidate List, and their inclusion in the
SCIP database ensures that waste operators, consumers, and other
stakeholders are informed of potentially harmful substances.
As part of Scanfil’s sustainability strategy, the Group is fully compliant
with SCIP reporting requirements. This commitment underscores the
dedication to responsible sourcing, product safety, and transparency
in managing substances of very high concern.
During 2024, 72 and 27 SCIP reports have been issued in Pärnu and
Sieradz, respectively.
The material compliance section of Scanfil’s Supplier Code of Conduct
outlines the company’s adherence to EU legislation, particularly the
REACH and RoHS Directives. These regulations mandate that companies
identify and manage the use of restricted or forbidden materials and
chemicals. Given that Scanfil is not a chemical manufacturer, its
compliance efforts focus on two main categories of incoming materials:
• Materials for manufacturing processes: This includes substances
such as tin, glue, oil, paint, and other chemicals used in production.
• Components in final products: These are materials specified in the
bill of materials for the products that Scanfil manufactures.
Scanfil ensures that all the materials used in its factories comply with
the RoHS and REACH requirements, especially those not specified by
customers. For REACH requirements, Scanfil applies article 33: Duty to
communicate substances in articles. Therefore, information is supplied
to stakeholders upstream and downstream upon request. Suppliers of
articles containing substances identified under Article 57 and Article
59(1) at concentrations above 0.1% weight by weight (w/w) must provide
recipients and consumers, upon request, with sufficient information to
ensure safe use of the article, including the name of the substance. This
information must be provided free of charge within 45 days of the request.
For customer-specified components, Scanfil collects information on any
reporting requirements primarily from suppliers, while also using publicly
available material declarations. Scanfil keeps customers informed about
the compliance status and expects them to report any discrepancies.
Taking this into account, Scanfil is not able to disclose information
regarding the total amounts of SVHC.
Furthermore, suppliers are required to understand and comply with these
regulations, regardless of their location, and they are regularly updated
about changes in the directives. The SCIP database plays a crucial role
in this compliance framework by enhancing transparency regarding
substances of very high concern in products and supporting responsible
recycling practices. Scanfil’s commitment to SCIP reporting reflects its
dedication to product safety and responsible sourcing, contributing to
its overall sustainability strategy.
The estimation of the total amount of SVHC leaving Scanfil’s production
facilities used the assessment of resource inflows of materials and
products as a basis for data. For further information on the methodology,
see 2.4.4 Resource inflows.
It was presumed that electrical machinery and apparatus is the only
material and product category subject to SVHC. This category includes
78
Policy Description of policy Scope of policy
Environmental
policy
In Scanfil's Environmental Policy, pollution mitigation is a key focus. The Group
is committed to preventing environmental impacts by reducing greenhouse gas
emissions and striving for fossil-free energy consumption. Scanfil will continuously
work to prevent environmental impacts by reducing air and water pollution,
conserving natural resources, and continuously enhancing practices to meet
stakeholder expectations. Scanfil ensures compliance with the relevant laws
and regulations. Scanfil integrates environmental considerations into business
strategies and initiatives by updating processes and instructions in Scanfil’s
Management System. The Group aims for continuous improvement to meet the
stakeholder requirements and enhance its environmental performance, thereby
reinforcing its vision as a trusted partner for customers.
Scanfil’s Environmental Policy emphasizes a comprehensive approach to
pollution management as part of its vision to be a trusted partner for customers.
The Group integrates environmental considerations into all business strategies
and initiatives, ensuring compliance with relevant laws and regulations. A
key focus is on continuously preventing environmental impacts by reducing
greenhouse gas emissions and striving for fossil-free energy consumption.
Scanfil also aims to mitigate air and water pollution while minimizing the
consumption of natural resources. In addition, the Group is committed to meeting
stakeholder requirements through ongoing improvements in its practices and
processes, reinforcing its dedication to sustainable and responsible operations.
Code of
Conduct
In Scanfil’s Code of Conduct, the pollution-related principles are designed to
minimize the environmental impact of its operations. The Group recognizes
the significance of addressing environmental issues, aiming to reduce harmful
emissions affecting air, water, and soil resources. Key commitments include
adhering to environmental legislation and utilizing natural resources efficiently
through improved production processes. Scanfil emphasizes the importance of
minimizing waste, enhancing recycling efforts, and reusing packaging materials.
Moreover, the Group commits to ongoing employee training and systematic
environmental management practices, ensuring continuous improvement and
technical development in its environmental programs.
In Scanfil’s Code of Conduct, the pollution aspect is addressed through a
commitment to minimizing the environmental impact of its operations. The Group
aims to continuously improve its practices related to environmental aspects
and recognizes the importance of reducing water, air, and soil pollution. Scanfil
emphasizes compliance with environmental legislation and seeks to use global
natural resources efficiently. The Group focuses on diminishing the effects
of its industrial activities by selecting and developing technological solutions
that lower harmful emissions. Moreover, Scanfil promotes recycling and waste
reduction while ensuring employees are trained and guided in responsible
environmental management. This proactive approach underscores the Group’s
dedication to sustainable practices and reducing its environmental footprint.
Supplier Code
of Conduct
The pollution aspect of Scanfil’s Supplier Code of Conduct focuses on
environmental responsibility and the commitment to reducing environmental
impacts associated with business operations. Suppliers are expected to use
resources responsibly and minimize any environmental burden through effective
operational practices. Key components include:
• Pollution prevention and resource reduction: Scanfil’s Supplier Code of Conduct
encourages suppliers to engage in practices that reduce environmental impacts,
promoting developments that minimize social and environmental effects.
• Waste management: Emissions and all types of waste should be minimized or
eliminated at the source. Suppliers are encouraged to implement pollution control
measures and adjust their production and maintenance processes to achieve
these goals.
• Hazardous substances: According to Scanfil’s Supplier Code of Conduct,
suppliers must identify and manage hazardous materials, such as chemicals and
waste, to ensure safe handling, storage, and disposal.
• Energy consumption and greenhouse gas emissions: According to Scanfil’s
Supplier Code of Conduct, suppliers shall track and document energy use and
greenhouse gas emissions. Suppliers should seek cost-effective ways to enhance
energy efficiency and reduce emissions.
• Transparency in environmental practices: According to Scanfil’s Supplier Code
of Conduct, suppliers are obligated to disclose information regarding their
environmental practices and performance in line with applicable regulations and
industry standards.
Through these guidelines, Scanfil aims to foster sustainable practices among its
suppliers, contributing to a more environmentally friendly supply chain.
The “Pollution prevention and resource reduction” section of Scanfil’s Supplier
Code of Conduct emphasizes the importance of responsible resource
management and environmental stewardship among suppliers. This includes a
commitment to minimizing environmental burdens linked to business activities
through conscientious operational practices. Suppliers are expected to adopt
measures that reduce or eliminate emissions and waste at their source,
employing pollution control equipment and modifying production processes to
achieve these goals.
Furthermore, the section outlines the necessity for identifying, labeling, and
managing hazardous substances to ensure safe handling, storage, use,
recycling, and disposal. Suppliers are also encouraged to track and document
energy consumption and greenhouse gas emissions, with a focus on finding
cost-effective ways to enhance energy efficiency and decrease overall
emissions. Transparency is key, and suppliers must disclose their environmental
practices and performance in accordance with the applicable regulations
and industry standards, ensuring accountability and fostering continuous
improvement in environmental performance.
several subcategories, some of which are relevant to SVHC while others
are not. The total weight of material and product categories relevant to
SVHC amounted to 12,013 tons out of 15,368 tons, i.e., approximately
78% of all subcategories.
The estimation assumed that 10% of all materials and products in these
subcategories are subject to SVHC. In addition, it was assumed that
each unit contain in average 0.05% of SVHC of the total weight. The total
SVHC content was estimated to 0.60 tons for the entire Scanfil Group.
79
Category Amount (ton)
Total amount of substances of very high concern that are generated or used during production or that are procured by main hazard classes of substances of concern
0
Total amount of substances of very high concern that leave facilities as emissions, as products, or as part of products or services by main hazard classes
of substances of concern
0.60
Amount of substances of very high concern that leave facilities as emissions by main hazard classes of substances of concern 0
Amount of substances of very high concern that leave facilities as products by main hazard classes of substances of concern 0
Amount of substances of very high concern that leave facilities as part of products by main hazard classes of substances of concern 0.60
Amount of substances of very high concern that leave facilities as services by main hazard classes of substances of concern 0
80
2.4 Resource use and the circular economy
2.4.1 Policies related to resource
use and the circular economy
Scanfil’s Environmental Policy and global Code of Conduct state that
the Group shall continuously work to prevent environmental impacts,
reduce emissions of greenhouse gases, and strive for fossil-free energy
consumption as well as reduce air and water pollution and consumption
of natural resources.
Scanfil uses global natural resources economically and efficiently
by streamlining manufacturing processes. The Group strives for
improvement when recycling industrial waste and tries to reuse packaging
materials and minimize waste. In Scanfil’s organization, the Director
Global Sustainability is considered accountable for the policy.
The environmental policy ISO 14001 certification is mandatory for all
factories globally and monitored by a global function. Factories need
to carry out independent and high-quality internal audits.
Scanfil’s Supplier Code of Conduct states that suppliers must comply
with all the applicable laws and regulations. Resources must be used
responsibly and carefully. Work must be carried out to reduce possible
environmental impacts in connection with business activities and
operational practices must reflect this.
Development that reduces the environmental and social effects of
operations must be supported. Emissions and waste of all kinds must
be minimized or eliminated at the source or through practices such
as the use of pollution control equipment, modification of production,
maintenance, and plant processes.
In the table on the next page, Scanfil’s Environmental Policy is described
in detail. As presented, Scanfil has policies in place that relate to resource
use and the circular economy, however, the Environmental Policy needs
a closer alignment with both of these. Scanfil will decide when this will
be carried out in 2025.
2.4.2 Actions and resources related to
resource use and the circular economy
Scanfil has not yet determined a comprehensive strategy to implement a
circular business model across the company. However, Scanfil recognizes
the potential of a circular economy to improve its footprint on people,
the planet, and prosperity.
Scanfil has little opportunity to influence the design and intended use
of the products that are manufactured. The use of sold goods and end-
of-life treatment is outside the company’s scope. Therefore, the focus
is on purchased goods and materials, efficient use of resources as well
as reducing waste and increasing recycling.
Scanfil is not a large consumer of water but believes that taking
responsibility for its water consumption is important. Water is not
considered material in the DMA, but by recognizing the impact of Scanfil’s
water consumption and taking proactive measures, the company can
move toward a more sustainable future where water resources are
managed responsibly for the benefit of all.
Scanfil will refine the appropriate data over time and start in 2025 to
establish an overarching strategy and measurable, time-oriented key
actions to establish a circular business model for the entire company.
2.4.3 Targets related to resource
use and the circular economy
Scanfil tracks the effectiveness of its policies and actions concerning
resource use and the circular economy via the global monitoring function
and internal audits, see 2.4.1 Policies related to resource use and the
circular economy.
Scanfil sources most of the purchased goods and services in the form
of materials and components that are used in the manufacturing of
customer-designed products and sub-assemblies. These include system
integration, printed circuit board assembly (PCBA), and box builds.
The company’s production is based on customer specifications, but
customers also request Scanfil to align with their set sustainability
goals, particularly regarding transparency in lifecycle emissions and
carbon reduction targets.
Scanfil has also committed to voluntary targets for energy and
water consumption, as well as waste generation, see Performance
measurement in 2.4.3. During 2025, Scanfil will decide on when to
evolve its current targets to align better with tracking the effectiveness
of policies and actions through targets. The targets will be reformulated
and made measurable, timebound and outcome-oriented with a set
baseline year to make sure that they relate more specifically to the
identified impacts of resource use and the circular economy and fulfill
the disclosure requirements.
81
Policy Description of policy Scope of policy
Environmental
Policy
The part of Scanfil’s Environmental Policy relating to resource use and
the circular economy emphasizes a commitment to sustainability in its
operations. It highlights Scanfil’s intent to incorporate environmental
considerations into all business strategies and initiatives. This includes:
• Compliance and responsibility: Scanfil pledges to adhere to relevant
laws, regulations, and other requirements concerning environmental
aspects, ensuring responsible resource use.
• Impact prevention: Scanfil actively seeks to prevent environmental
impact through continuous improvement, which suggests a focus on
minimizing resource consumption and waste generation.
• Emission reduction: There is a clear goal to reduce greenhouse gas
emissions, indicating an effort to transition towards more sustainable
energy sources and practices.
• Resource conservation: The policy mentions a commitment to reducing
air and water pollution, as well as minimizing the consumption of natural
resources, which aligns with circular economy principles by aiming for
more efficient and sustainable resource use.
• Stakeholder engagement: By meeting stakeholder requirements and
continuously improving operations, Scanfil aims to enhance its resource
management practices and contribute to a circular economy where
resources are reused, recycled, and maintained within the production
cycle.
The scope of Scanfil’s Environmental Policy regarding resource use and
the circular economy emphasizes a commitment to sustainable practices
that minimizes environmental impacts while optimizing resource efficiency.
Key elements include:
• Integration of environmental considerations: Scanfil incorporates
environmental issues into all business strategies and initiatives. This
holistic approach ensures that resource use is aligned with sustainability
goals and contributes to a circular economy.
• Compliance and commitment: Scanfil adheres to laws, regulations, and
other environmental requirements, which guides its practices in resource
management and waste reduction. This compliance underscores their
dedication to responsible resource use.
• Impact prevention and reduction: Scanfil is committed to continuously
working on preventing negative environmental impacts, specifically
aiming to reduce greenhouse gas emissions and transitioning towards
fossil-free energy consumption. This commitment contributes to a
reduction in resource depletion and aligns with circular economy
principles.
• Pollution reduction: The policy highlights efforts to minimize air and
water pollution, which indirectly supports more efficient resource use by
promoting cleaner production processes and reducing waste.
• Natural resource conservation: By striving to reduce the consumption
of natural resources, Scanfil actively participates in circular economy
principles, focusing on reusing and recycling materials to extend their
lifecycle.
• Stakeholder engagement: The policy emphasizes meeting stakeholder
requirements through continuous improvement in working practices,
fostering collaboration that supports sustainable resource use and
circular economy initiatives.
Sustainability governance and policies
Environmental responsibility is embedded in Scanfil’s operational
strategy. The Group focuses on:
• Efficient use of resources.
• Circular economy promotion.
• Control and reduction of energy and water consumption.
• Waste management and recycling.
• Minimization of carbon footprint across the value chain.
•
Scanfil has voluntarily set a clear target to reduce its energy and water
consumption as well as waste generation. These targets align with
broader sustainability and circular economy goals.
Primary emissions sources in value chain
Scanfil’s environmental efforts center on addressing both upstream
and its own operation emissions:
•
Upstream emissions: Linked to the sourcing of raw materials and
components.
•
Own operations: Linked to the manufacturing of customer-specified
products.
Performance measurement
Scanfil voluntarily measures its environmental performance with the
following metrics:
• 3% annual reduction in energy and water consumption, normalized
by added value.
•
3% annual reduction in waste generation, normalized by added value.
These performance indicators enable Scanfil to track its progress
in resource efficiency and waste management, directly reflecting its
environmental commitment to circular economy by reducing the com-
pany’s negative impact related to resource depletion and climate change.
82
Stakeholder engagement
Scanfil’s customers play a crucial role in shaping its sustainability agenda.
Customers often require full transparency into the lifecycle emissions
of Scanfil’s products and services and expect support in achieving their
own carbon reduction goals. This collaboration drives Scanfil to improve
both upstream and downstream emissions, benefiting both parties in
the effort to meet shared sustainability objectives.
Scanfil’s supply chain sustainability efforts drive environmental, social,
and ethical performance. Purchased products and components account
for the absolute largest part of Scanfil’s total climate impact. Therefore,
Scanfil requests its suppliers to participate in EcoVadis’s program
Sustainable Procurement and this program covers supplier participation
with almost 45% of Scanfil’s total purchase spend.
Principal adverse impacts and mitigation
The key adverse environmental impacts that Scanfil faces are tied to
the emissions and resource use within its operations and supply chain.
Forward-looking information
Scanfil is committed to continually improving its environmental
performance by further reducing resource consumption and emissions
across its value chain. Future strategies include maintaining and
potentially expanding its voluntary targets and deepening collaboration
with customers to align our shared sustainability goals.
2.4.4 Resource inflows
Scanfil has a global category sourcing organization to develop and
maintain an optimally global and regional supply base to ensure long-term
competitiveness throughout the whole product life cycle. All purchases
are recorded in Scanfil’s Enterprise Resource Planning system (ERP).
Currently, an ongoing project aims to integrate data on weight, constituent
materials, and CO2 emissions per component. This initiative will enable
detailed calculations of Scanfil’s inflows and outflows at both the
component and delivered product levels. The system is expected to
be ready for CO2 calculations by 2025, with comprehensive material
declarations as the subsequent step.
Purchased goods
As Scanfil is a manufacturing service provider, the resource inflow
includes a variety of purchased goods and materials used in its core
manufacturing process. Due to this, the resource inflows cannot be
specified in detail as they are outside of Scanfil’s own operations, except
for water consumption presented below.
The data for resource inflows of purchased materials and products
was obtained from Scanfil’s purchasing system and included all article
purchases during the reporting period. The articles were categorized
into purchasing categories, and the number of articles was summed up.
For each purchasing category, a weight was estimated. The purchasing
categories were then sorted into material and product categories
according to suggestions from Exiobase: aluminum, basic iron, steel,
ferro-alloys, chemicals, electrical machinery, apparatus, glass, paper, and
plastics. Subsequently, the total weight for each material and product
group was calculated, representing Scanfil’s resource inflow. Aluminum,
basic iron, steel, ferro-alloys, glass, and plastics are exceptions to this
method and are based on the expert judgment of Scanfil, including
assumptions about commodity price, and proportions between raw
material and value-adding activities.
For resource inflows of capital goods, the data was obtained through
Scanfil’s purchase system and compiled for capital goods relating to
machinery and equipment, computer and related services, construction
work, and motor vehicles that have been purchased during the reporting
period. The data presented is based on direct measurement items.
The perception is that the methodology for determining the resource
inflows does not result in any significant double counting as the data
was obtained from Scanfil’s purchasing system.
The table below presents resource inflows of products and materials
including packaging materials (paper and plastics).
Purchased materials and products Weight [ton]
Aluminum 2,533
Basic iron, steel, and ferro-alloys 16,326
Chemicals 3,313
Electrical machinery and apparatus 16,189
Glass 1,621
Other 757
Paper 6,594
Plastics 2,659
Total [ton] 49,993
The table below presents resource inflows of capital goods.
Capital goods Spend Unit
Computer and related services 2.97 MEUR
Construction work 5.64 MEUR
Other manufactured goods 1.97 MEUR
Machinery and equipment 27. 9 MEUR
Motor vehicles, trailers and semi-trailers 0.15 MEUR
Total 38.6 MEUR
No certification scheme exists for paper and plastics. Therefore, the
weight percentage of biological material is disclosed as zero.
83
The total weight and percentage of secondary reused or recycled
components, secondary intermediary products, and secondary materials
used to manufacture Scanfil’s products correspond to an absolute of
7,622 tons and 15%, respectively.
The proportion of recycled material has been assumed as 0% for
aluminum, 18% for basic iron, steel and ferro-alloys and 70% for paper
based on certification letters and supplier-specific data. All other
materials and products, have been assumed to not contain any recycled
material. Note that the aluminum has been assumed to not contain
any secondary material. It is reasonable to assume that the purchased
aluminum contains some secondary material, but Scanfil cannot verify
this via certificates at present.
The table below presents the total water consumption in core
manufacturing processes.
Water consumption in core manufacturing processes - M
3
2024 2023 2022 2021
68,382 66,985 55,065 46,227
2.4.5 Resource outflows
The products Scanfil manufactures are developed and released to the
market by Scanfil’s customers. Scanfil has little opportunity to influence
the specification and focuses on sustainable material supply, efficient
production processes, efficient equipment, and sustainable utilization
of resources.
Scanfil utilizes all purchased materials in its manufacturing processes.
Any leftover materials are returned, and scrapped materials are reported
as “Total waste generated in the company’s own operations”.
Products and materials
Scanfil is a manufacturing service provider for industrial and B2B. The
products and materials that come out of Scanfil’s core manufacturing
processes are:
•
Electronics: Printed circuit boards (PCBs), electronic assemblies,
integrated electronic systems
• Mechanical assemblies: Sheet metal fabrication
• System integration: System and module assembly
• Medtech & Life Science: Technical medical equipment
•
Energy & Cleantech Solutions: Energy saving, electrification, renewable
energy products and circular economy products
• Packaging materials: Carton and ESD bags
As a result of Scanfil’s business model, the ownership of the design
and the products belongs to the customer. Therefore, Scanfil is not
able to disclose the expected durability and reparability of the products
in addition to the rates of recyclable content in the products and their
packaging. Scanfil guarantees to its customers that the company has
delivered according to their specifications, however, this does not
necessarily guarantee that the product will function as intended.
Waste
The table on the right discloses waste management and disposal based
on data from Scanfil’s environmental reporting system in Position Green.
Waste generated in Scanfil Group’s own
operations and sent to recovery [tons]
2024
Non-hazardous waste sent to reuse 386
Non-hazardous waste sent to recycling 4,196
Non-hazardous waste sent to other recovery operations 389
Total non-hazardous waste sent to recovery 4,971
Hazardous waste sent to reuse 3.53
Hazardous waste sent to recycling 27. 3
Hazardous waste sent to other recovery operations 35.6
Total hazardous waste sent to recovery 66.3
Waste generated in Scanfil Group’s own
operations and sent to disposal [tons]
Non-hazardous waste sent to incineration 162
Non-hazardous waste sent to landfill 370
Non-hazardous waste sent to other disposal operations 1.0
Total non-hazardous waste sent to disposal 533
Hazardous waste sent to incineration 40.2
Hazardous waste sent to landfill 8.35
Hazardous waste sent to other disposal operations 0.27
Total hazardous waste sent to disposal 48.8
Total waste generated in Scanfil Group’s own operations
Total amount of radioactive waste 37.0
Total amount of waste generated 5,619
Total amount of hazardous waste 115
Total amount of non-hazardous waste 5,504
Total amount of non-recycled waste 581
Total amount of recycled waste 5,037
Percentage of non-recycled waste (%) 10%
Percentage of recycled waste (%) 90%
84
The data captures the total volume of waste generated by Scanfil’s
operations during the reporting period and highlights its efforts to
reduce waste, promote recycling, and minimize environmental impacts.
The data is specific and provided by the factories’ contracted waste
collectors and directly reported into Position Green.
The waste data is presented in categories based on origin, composition,
and waste management methods. This includes both hazardous and
non-hazardous waste as well as the proportion of waste directed to
recovery, recycling, or landfill.
The table also allows for future year-on-year comparisons to show
progress and areas that require further improvement in Scanfil’s waste
reduction initiatives.
The table on the right presents the outgoing waste composition and
material from Scanfil’s core manufacturing processes.
Waste composition and waste material are the same for certain flows
due to uncertainties in the data aggregation. The relevance to the sector
or activities is assessed based on the European Waste Catalogue
2000/532/EC.
Waste composition Waste material
RELEVANT TO
SECTOR OR
ACTIVITIES
Batteries Batteries x
Commerical and industrial
waste
Commercial and industrial
waste
x
Electrical items Fridges and freezers -
Glass Glass -
Household residual waste Household residual waste -
Metal Cans, foils, scrap metal x
Organic waste Food and drink waste -
Paper and cardboard Paper and cardboard -
Plasterboard Plasterboard -
85
3.1.1 Policies related to own workforce
Scanfil’s collaboration principles with the workforce are guided by
the applicable legislation, as well as policies, such as the Code of
Conduct, Incidents and Accidents guideline, and the Work Environmental
Policy. Additionally, the workforce is impacted by some of the processes
described in Scanfil’s Management System, such as the competence
development process, one-to-one (annual appraisal) process, succession
planning process, talent development process, employee engagement
monitoring, and others.
Scanfil works to enhance its policies to more widely describe the way
in which it manages material risks and opportunities.
Scanfil’s Code of Conduct defines the ethical standards and the
Group’s commitments within its business principles such as compliance
with law and culture; and the ways it keeps fairness in all business
relations, including elaboration on anti-corruption and anti-competitive
practices, handling of confidential information together with external
communications rules. It widely addresses the treatment of people
and the Respect of human rights. It includes the commitments to the
environment and the health and safety of its employees and visitors.
The final section guides on reporting channels and remedies for any
potential violations. This policy emphasizes Scanfil’s commitment to
support and respect the United Nations Global Compact principles
as well as the International Labour Organization (ILO) core standards:
Freedom of associations and the right to collective bargaining, the
elimination of forced labor, the effective abolition of child labor and the
elimination of discrimination in respect of employment and occupation.
The Code of Conduct policy is mandatory to follow for the whole Scanfil
workforce, both for own employees and well as non-employees, in all
geographical locations (with the 2024 exception of SRX locations to
which the Code of Conduct is planned to be implemented in the first
half of 2025). For upstream stakeholders, Scanfil applies the Supplier
Code of Conduct. The Code of Conduct demonstrates how Scanfil takes
care of the downstream stakeholders, especially in the aspect of the
quality of services performed by Scanfil’s workforce for the customers
as well as the confidentiality of the information related to their business
and products. This policy positively impacts also shareholders as well as
the workforce, their families and local society. The Code of Conduct is
available to the workforce through the company‘s policy library (Scanfil
Management System) and to the external network through Scanfil’s
webpages. The policy is monitored in the Scanfil Management System
and the Global Sustainability and Global HR Directors are responsible
for the updates and distribution to Scanfil units as well as external and
internal communication channels (webpage and intranet). Any updates
to the policy are consulted internally with factories representatives prior
to approval by the Group Management Team and implemented through
e-learning and training. The CEO is accountable for the Code of Conduct
while the implementation and execution of it is the responsibility of
Global Sustainability and Global HR functions.
The Work Environmental Policy defines the company’s vision and mission
as well as the Core Values which shall drive employee behavior. These
are widely communicated through internal and external campaigns, both
in social media as well as on Scanfil’s webpages and at investor events,
e.g., the core values that were updated in 2024 were communicated
in the Capital Market Day event. The CEO is the accountable for the
content of this policy. The policy is monitored in the Scanfil Management
System and the Global HR Director is responsible for the updates and
distrubution to all Scanfil units.
The Accidents and Incidents Handling Policy, defines the approach for the
classification of injuries, near misses and recordable accidents with its
reporting channels. It also specifies the serious accident characteristics
and reporting rules. There are also guidelines for informing on fatalities.
The health and safety country specific rules may differ and thus are
stated there as prevailing Scanfil’s internal rules. This policy covers
both Scanfil’s own workforce and any visitors who might be impacted
while staying on Scanfil’s premises. In each of the factories, the local
Managing Director is responsilble for safety measures and globally, the
accountability belongs to the CEO. The policy is monitored in the Scanfil
Management System and the Global HR Director is responsible for the
updates and distribution to Scanfil all units.
Working conditions
Scanfil ensures proper working conditions in all its units. The aspects
regulated by law in operating countries are followed and monitored
well by the local factory management and external audits. To make
sure that the working conditions meet employee expectations, Scanfil
also includes this area in the annual Employee Engagement Survey.
Whenever low scores are observed, the responsible unit is obligated
to take improvement actions. The result for working conditions in 2024
was in the green-zone level (75 out of 100 points).
Scanfil has defined particular policies and standards referring to the
number of aspects that impact its workforce.
3.1 Own workforce
3. Social information
86
Secure employment
Scanfil ensures stable and legally proven employment conditions. Any
flexibility required by the business periodical fluctuations is addressed
with third party agency workers. Scanfil takes good care of the high
quality of the lease labor partners to ensure fair and secure employment
conditions for the whole workforce performing jobs for Scanfil.
Scanfil sites also follow country regulations, ensuring the well-performing
third party employees are getting contracted by Scanfil directly (which
is seen as a benefit of higher employment security) after a given period
of continuous work, for example, 18 or 24 months.
Employees are covered with the social protection measures to which
they are entitled by the local country laws in Scanfil’s operating countries,
including sick leave, absence resulting from work-related injury, parental
leave, and others.
The largest differences vs. European standards are observed in the
USA. One example is that coverage for disability resulting from a work-
related accident is an option that an employee can decide to purchase
additionally. This gives coverage for disability insurance for personal
illnesses that may make employees unable to work and result in them
being unpaid. Parental leave is possible for up to 12 weeks, but this is
unpaid for the employee. Scanfil follows the majority of employers in
the USA in this respect. Retirement is offered based on the scheme
that an employee can choose to contribute to their retirement and then
Scanfil contributes a percentage of what the employee has contributed.
Working time and work-life balance
Scanfil offers its workforce flexible work hours whenever possible based
on the nature of the work and monitors overtime hours closely to make
sure it follows the labor law regulations and ensures employee well-
being. Hybrid or remote work is offered where required and possible.
Employees at Scanfil can freely use all kinds of leaves ensured by local
country legislations, both the ones related to their own personal rest, such
as annual leaves as well as family-related leaves, e.g., parental leaves,
sick-child-care leaves, and others. Using vacation days is monitored
by the local HR team, which supports direct managers in the effective
planning of their workforce absences. Scanfil promotes activities that
support well-being of employees through internal campaigns. These
focus on healthy habits related to effective rest, sleep, physical activities,
and eating habits.
Adequate wages
All Scanfil employees are paid living wages. No salaries are lower than
the minimum wage mandated in the country in question which at Scanfil
is perceived as an adequate wage. Furthermore, in most of the locations,
Scanfil offers performance-driven incentives. Most of them are defined
locally by the Factory Management Team to respond to local standards.
The ones defined on the Group level refer to global employees and
Factory Management Teams. Scanfil practices annual salary reviews to
ensure appropriate and competitive wages for its workforce.
Social dialog
Scanfil employees have the freedom to join any unios or works council-
represented community. The regular dialog between Scanfil Factory
Management and worker representatives (unions, workers councils, or
representative committees) is part of Scanfil’s open communication
culture.
To enhance the open dialog with its workforce, Scanfil conducts an annual
Employee Engagement Survey (EES) which is one of the key tools for
gathering employees’ feedback. The survey covers several areas that
are recognized as crucial for employee satisfaction and loyalty as well
as business continuation. These are:
• Satisfaction & motivation
• Loyalty
• Reputation
• Group Management Team
• Immediate Manager
• Cooperation
• Working conditions
• Job content
• Learning and development
• Factory Management Team
• One-to-one dialog
• Our core values
• My employment at Scanfil
• Equality & inclusion
The EES is driven by the HR function that supports managers in reviewing
the results and analyzing the development needs. All managers are
trained in the process, methods of interpreting the survey results, and
the toolbox for working with the results. Managers meet with their teams
or representatives to review their unit’s report and to define the needed
improvements. Based on the discussions, development actions are
registered in the EES digital tool. The Group Management Team can
monitor the progress of the defined improvements implementation
with the digital tool.
Scanfil’s Code of Conduct expresses a clear commitment to acting in
accordance with the United Nations Global Compact principles. Scanfil
respects ILO (International Labour Organization) core standards. Human
rights and the fundamental rule for all company specific policies. Respect
for the individual is incorporated not only in the Code of Conduct but
also expressed in the definitions of our company’s core values and, last
but not least, monitored in the annual Employee Engagement Survey. All
new Scanfil employees are trained in the Code of Conduct during their
onboarding and Code of Conduct updates are communicated through
e-learning to white collar and blue collar workers depending on local
factory practices, e.g., as part of periodical department meetings or via
internal communication channels.
Scanfil involves its employees to co-define and co-decide in a number of
ways. As expressed in one of Scanfil’s core values, the company promotes
among others, an achieving together attitude. This is reflected in the
87
open communication and engagement of the workforce. Employees
are involved in the company’s Code of Conduct by performing non-
managerial consultations before publishing an update. Employees were
invited to vote on updated core values visuals and promotional materials.
Employee engagement is also monitored in an annual survey. Factories
have a routine of regular (monthly and quarterly) meetings between all
of the personnel and local management. The Group Management Team
is in frequent contact with the workforce through the quarterly virtual
town hall meetings where employees can ask questions to be answered
by the Group Management Team. A common practice is also holding
regular dialog between Scanfil’s Factory Management Teams and worker
representatives (unions, workers’ councils, or representative committees).
The Scanfil workforce as well as any external stakeholders can report
any ethical concerns or violations of the Code of Conduct, including any
aspect of human rights or applicable legislation.
Scanfil commits to the following in its Code of Conduct:
•
Taking all the needed actions to help impacted individuals and remove
circumstances in which similar cases could happen in the future,
• no retaliation against any employee making a report in good faith,
•
neither tolerate nor contribute to any threats, intimidation, or attacks
against human rights defenders in relation to company operations,
•
any of the grievance activities, including state-based grievance
mechanisms, are not impeded by the company.
Scanfil has enhanced its whistleblowing channel with a digital tool that
ensures the anonymity of the reporter. Employees may also report
violations by sending emails or placing official claim letters to local
or global HR. The number of reported cases is subject to a monthly
report to the Group Management Team. The Code of Conduct Forum
also gathers quarterly to discuss the cases and lessons learned. The
Forum consists of factory’s HR Managers, the Global HR Director, and
the Global Sustainability Director. All cases are thoroughly investigated,
ensuring the anonymity of the reporters, and ensuring the protection
of whistleblowers.
Scanfil’s Code of Conduct expresses a clear commitment to acting in
accordance with the United Nations Global Compact principles. Scanfil
respects ILO core standards: Freedom of associations and right to
collective bargaining, elimination of forced labor, effective abolition of
child labor, and Elimination of discrimination in respect of employment
and occupation.
As part of the alignment with ILO, Scanfil is committed to ensuring that
no child or forced labor, human trafficking, or other forms of modern
slavery occur in its business operations and supply chain.
Scanfil occupational safety is guided by its Safety Management System,
and the Incidents and Accidents handling is described in the same
called guideline in the Scanfil Management System (SMS). The safety
practices adopted locally firstly follow each country’s and, secondly, the
standards established at Scanfil. In addition to guiding occupational
safety, the ISO 45001 standard calls for a Safety Management System.
The Scanfil CEO is responsible for the implementation of safety policies
in accordance with the requirements.
Occupational safety commitments are defined in the Work Environmental
Policy, the Code of Conduct, and the responsibilities stated in the position
descriptions for managers.
All employees are entitled to social protection in case of work-related
injuries.
Scanfil has created a community consisting of Health and Safety
Officers and HR Managers to support the continuous development of
safety practices. It is called the Safety Council, and it meets quarterly to
review the accidents happening in the recent quarter, together with the
corrective and preventive actions resulting from these. The best practice
sharing comes from the forum insights and is subject to annual review.
To enhance safety awareness, Scanfil implemented the Safe Scanfil
campaign in 2024. The topics tackled are expected to drive reflection
on safety and own accountability for the actions taken by each individual.
Scanfil is committed to enhancing diversity, equity, and inclusion (DEI)
within its own workforce. Scanfil’s Code of Conduct strongly prohibits
discrimination against any person in an employment-based relationship
based on the person’s ethnic origin, color, age, religion, creed, gender,
marital status, family status, sexual orientation, disability, or any other
prohibited ground of discrimination protected by applicable law.
Moreover, in Scanfil’s core values, the benefit of diversity and the
importance of respect for individual is emphasized and reinforced.
Awareness of diversity, equity, inclusion, and non-discrimination is
promoted through the Code of Conduct courses. These are mandatory
for all new employees, including interns and third party workers. To
promote the value of these desired behaviors, Scanfil performs internal
and external campaigns.
Scanfil’s contracted workforce is well differentiated regarding the
perspective of age. The majority, 58% (end of 2024) of the workforce,
is between 30 and 50 years old. However, there is also a significant
number of employees over 50 years old, 25%, and a healthy portion of
the youngest less than 30 years old, 17%. This balance enables good
knowledge sharing and ensures business continuity.
When joining the UN Global Compact in 2021, Scanfil chose the
empowerment of women as the key aspect to be supported which was
confirmed in the Letter of Commitment to WEP (Women Empowerment
Principles) signed by the CEO of Scanfil. As a result of this, in 2022,
Scanfil initiated the SWAT Community.
Scanfil Women Appreciation Team (SWAT), initiated after Scanfil became
a WEP Signatory, meets monthly to discuss ideas and define actions
that support women’s growth in the company’s expert and managerial
positions. As a next step, in 2023, the DEI Forum was established as a
quarterly practice where both women and men join to share solutions
88
applied in different locations for improved diversity in their workforce.
In 2024, Scanfil decided to take the next step and start analyses of
the gender pay gap. The company’s goal is to eliminate it if it is found.
Scanfil has a strong commitment to equal opportunities for all its
employees.
One of the strategic targets became the percentage of women in
Senior Management, which is monitored monthly. The analyzed group
of managers includes the Group Management Team, Global Functions
Heads, and Factory Management Teams. Scanfil’s target was set in
2023 to reach 35% of women representation in Senior Management
by 2026. However, Scanfil is on a journey to reach 50% with continuous
improvement year on year.
DEI is promoted via campaigns done through the local intranet as well
as via external channels. The benefits of diversity are emphasized at all
stages of employee engagement with Scanfil. It is kept in focus during
the recruitment process and in training and development activities.
Hiring, promotions, and the voluntary turnover of employees of different
genders are monitored quarterly. Diversity is an important aspect of
the succession planning process. Scanfil takes all the measures and
communicates openly the willingness to see diverse talents accessing
the successors’ pool.
Equity perception among employees is also measured in the annual
Employee Engagement Survey. Whenever gaps are observed there, the
affected units are obligated to plan activities to ensure improvement.
Among others, these could be DEI awareness trainings, individual
development activities with the manager of the affected team, and
HR-driven mediation and workshops.
The policy is implemented through the Code of Conduct, which is
mandatory to get trained for new employees and non-employees in the
company’s workforce. All parties involved, both internal and external,
can report any violation of the Code of Conduct both locally and globally.
The processing of the cases is reported to Group Management Team
and monitored closely.
3.1.2 Processes for engaging
with own workforce and workers’
representatives about impacts
Scanfil involves its own employees in co-definition and co-determination
in a number of ways, both globally and locally. As expressed in one of
Scanfil’s core values, the company promotes the Achieving together
attitude. This is reflected in the open communication to the employees,
with their groups and formal representation bodies as well as in
department and individual level.
Employees are invited to share their opinions, requests, or concerns
towards the decisions aimed for or taken by the Factory Management
Teams.
There are both globally and locally applied practices that involve
employees in decisions referring to Scanfil’s impact on its workforce.
On the global level, employees are involved in Scanfil’s Code of Conduct
creation by performing consultations with non-managerial representatives
of employees in their units. The comments and suggestions are reported
to the global Code of Conduct owners, reviewed, and considered for
their global applicability and if accepted, they become subject to the
Group Management Team approval process.
On an annual basis, the whole workforce, including both Scanfil’s own
employees and non-employees, are invited to the Employee Engagement
Survey. There, participants give scores on the multiple areas that impact
them and express in anonymous open comments their expectations,
opinions, concerns or ideas for improvements. Each department with
a minimum of four survey participants receives the result report and its
leader is obligated to perform a review meeting with the team in order to
define development actions in the areas where the lowest satisfaction
ratings were achieved. The highest level responsible for the factory results
and improvements development process is the Managing Director. On
the Group level, it is the CEO.
The Group Management Team is in frequent contact with the workforce
through the quarterly Townhall meetings where employees can place
questions, which the Group Management Team will answer.
A common practice at Scanfil is also a regular dialog between Scanfil
Factory Management Teams and workers’ representatives (unions,
workers’ councils, or representatives’ committees). In the meetings
which happen on a monthly basis, the employees can rise their
requests or suggestions for changes in the aspects which impact
them as the workforce. At the same time, in most of the operating
countries, the Factory Management Team is obligated to present to
these representation bodies any suggestion for changes in the company
Handbooks or Regulations that may impact the workforce.
Scanfil’s Code of Conduct expresses a clear commitment to acting in
accordance with the United Nations Global Compact principles. Scanfil
respects ILO core standards: Freedom of Associations and Right to
Collective Bargaining; Elimination of Forced Labor; Effective Abolition
of Child Labor; Elimination of discrimination in respect of employment
and occupation.
When joining the UN Global Compact in 2021, Scanfil chose the
empowerment of women as the key aspect to be supported which was
confirmed in the Letter of Commitment to WEP (Women Empowerment
Principles) signed by the CEO of Scanfil. As a result of this, in 2022
Scanfil initiated the SWAT Community.
The working method with Employee Engagement Survey inputs has
proven to be very effective. It is observed that the units that report a high
level of follow-up activities as well as define the actions addressing the
lowest scored areas, observe improving results in the following year.
89
Also, regular meetings with workers’ representative bodies result in
enhanced trust and higher engagement in the co-determinated changes.
In order to enhance gathering insight into the perspectives of all people
in own workforce, including those who may be particularly vulnerable,
Scanfil has in 2024 upgraded its whistleblowing channel. The digital
tool that is accessible through both external company webpage as
well as internal intranet interface, ensures complete anonymity, which
encourages all groups of employees to share their inputs.
3.1.3 Processes to remediate
negative impacts and channels for
own workforce to raise concerns
Scanfil workforce as well as any external stakeholders can report any
ethical concerns or violations of the Code of Conduct or applicable
legislation. Scanfil has enhanced its whistleblowing channel to a digital
tool that ensures the anonymity of the reporter. Employees may also
report violations by sending emails or placing official claim letters
to local or global HR. The number of reported cases is subject to a
monthly report to the Group Management Team. In addition, the Code
of Conduct Forum gathers quarterly to discuss the cases and lessons
learned. The Forum consists of factories’ HR Managers, the Global
HR Director, and the Global Sustainability Director. All the cases are
thoroughly investigated, ensuring the anonymity of the reporters, and
ensuring protection of whistleblowers.
The newly upgraded digital whistleblowing channel, used for anonymous
reporting of violations, enables the company to leave feedback and
comments on the actions taken internally to address the reported
misconduct and prevent it from happening in the future. The remedy
should also be described in the Code of Conduct Violations Register
which is subject to a monthly review. The effectiveness assessment of
the remedy is, in case of anonymously reported cases, evaluated by the
Global HR Director together with the Global Sustainability Director, and
in case of non-anonymous cases would also be discussed and reviewed
with the impacted victim.
The whistleblowing channel is available both through the external
interface, being the company’s webpage, which is easily accessible
for all stakeholders as well as through the intranet interface accessible
for company’s employees. The company has trained the personnel
authorized to process the reported allegations. Scanfil has also
performed a wide communication campaign for the whole workforce
on the channel’s availability and safety. It is also part of the Code of
Conduct training.
Scanfil commits in its Code of Conduct to taking all the needed actions
to help impacted individuals and remove circumstances in which similar
cases could happen in the future. Scanfil emphasizes that any of the
grievance activities, including state-based grievance mechanisms,
are not impeded by the company. All participations in human rights
grievance or mediation processes are protected and will not be subject
to any negative after-effects, and neither will they be requested to
waive their legal rights as a condition of participation in the grievance/
mediation process.
In 2024, Scanfil registered one harassment case, and 29 cases
perceived as misconduct against the company’s Code of Conduct or
core values. All these cases were reported either through the anonymous
whistleblowing channel, or delivered in direct communication to different
levels of management or HR professionals. All these are treated as
official reporting channels at Scanfil.
Furthermore, Scanfil monitors the number of cases indicated as
perceived misbehaviors in the annual Employee Engagement Survey,
in the section called Equality. The results of the survey are monitored
closely by the Group and Factory Management Teams. In the units
where the misbehaviors are reported, they are obligated to take strong
immediate actions. The progress of those is monitored closely by the
Group Management Team based on the HR monthly report.
3.1.4 Taking action on material impacts
on own workforce, and approaches to
managing material risks and pursuing material
opportunities related to own workforce,
and effectiveness of those actions
All of the material impacts, risks, and opportunities are addressed with
the appropriate actions as listed below. The effectiveness of these is
evaluated in a mode consistent with the process cycle, for an example
the progress on the ones tackled in the Employee Engagement Survey
is verified annually and followed up monthly; the ones referring to Health
and safety are monitored in standard mode monthly and in case of
serious accident daily; the ones related to equality are incorporated in
the standard processes, e.g. recruitment or succession planning with
their own frequency.
Scanfil follows all the country specific legal requirements to ensure
high-quality working conditions seen as opportunity positively impacting
its workforce. Additionally, both the development ideas driven from
the Employee Engagement Survey as well as from the Safety Council
meetings are shared between factories as best practices to continuously
enhance company standards, even exceeding the country regulations.
In all Scanfil operating countries, the requirement for minimum required
wages is met. Additionally, Scanfil monitors market remuneration to be
able to offer attractive salaries and annually adjusts its own workforce’s
wages.
Scanfil offers flexible or hybrid/remote work schemes for the positions
where the nature of the work allows it.
Health and safety aspects are managed in line with the country regulations
as well as the manufacturing standards for the used technologies. The
Safety Council monitors and enhances the sharing of best practices on
preventive measures to enable Scanfil to use the opportunity to offer
outstanding safe workplaces.
90
Competence and skills development are monitored in both the annual
appraisal process and monthly skills matrix reviews.
Training is performed both through internal and external trainers.
Development opportunities are equally available for all employees,
independent of gender.
Diversity in the management is actively searched through both external
recruitment and structured succession planning. The DEI Forum meets
on a quarterly basis to promote diversity benefits awareness and enable
the best practice sharing between Scanfil organizational units.
Scanfil adapts selected workplaces for disabled persons.
Actions to prevent or mitigate negative impacts and to provide
remedy for actual impacts
Scanfil offers remote work schemes fo positions where the nature
of the work allows it, so for white collar workers. In 2024 some units
developed solutions, which give even more flexibility than the country
regulations, e.g. Poland and Germany, where the home office policies
were enhanced. By doing that Scanfil aims to increase the employees
satisfaction and motivation, support their personal well-being as well as
their possibilities to perform family-related duties. Scanfil also believes
that offering this flexibility will positively contribute to reducing health
and safety measures, such as work-related accidents or sick leave.
Scanfil set a standard that at least minimal wage (applicable in the
country), which is seen as adequate wage, is paid to all employees. In
2024, the same as every year the applicable adjustments of the wages
to meet at least the minimal wage. Additionally, many of the higher-
paid employees also received salary increases. The levels of the salary
regulations are in some countries decided by the collective agreements
(Finland, Sweden) and in the other countries, they correspond with the
local regional salary inflation trends as well as the factory’s budget.
Scanfil processes these annual routines in order to ensure adequate
living standards of its workforce and thus enhance their satisfaction,
motivation and loyalty.
One of the actions taken in 2024 to support continuous development of
safe workplace was the annual Health and Safety solutions mapping and
the best practice sharing. The Safety Council gathered the inspirations
from all sites who then mapped applicability of these to their locations.
Local Health and Safety Officers who drive preventive solutions got
a solid toolbox to choose from. The goal for this annual practice is to
enhance the safety measures and eliminate possibility of accidents and
thus limit the negative impact on the workforce. Secondly, the Safety
Council initiated the Safe Scanfil 2024 campaign. It consists of periodical
inspirational stories shared via company intranet and posters with
visualizations of safe solutions which were distributed to factories, and
there translated and shared to the workforce. This initiative was driven
from the conclusion that number of minor accidents were caused by
lack of attention and thus, the mindset and putting safety first is the key
to grow health habits in the workplace.
Scanfil’s Safety Council will decide at the beginning of the year the topic
of the year 2025 campaign.
Scanfil is able to offer a limited number of positions for individuals
with disabilities, as the majority of roles require high precision and full
mobility. Scanfil has not taken any actions to extend the employment of
persons with disabilities in 2024. In order to extend the possibilities for
this underrepresented group and to enhance inclusion, Scanfil plans to
work on polices related to employment of diasbled persons within 2025.
To mitigate the potential negative impact of having a highly homogeneous
workplace, which could lead to the isolation of individuals, fostering a lack
of understanding and tolerance for alternative views and approaches,
Scanfil enhanced practices to promote the diversity and inclusion on all
levels of the organization. One of the actions for that during 2024 was
quarterly DEI Forum (Diversity Equity Inclusion). It was involving the Group
Management Team, Factory Management Teams, Global Functions
Heads and all interested in the topic individuals from different parts of
the organization. The Forum was an occasion to both share the best
practices coming from most diverse units, as well as gather ideas for
practical solutions to be implemented at Scanfil. They were initiated by
SWAT (Scanfil Women Appreciation Team) as a next level step towards
increasing awareness on the benefits of diversity in the organization.
The expected outcome of that is first the mindset change which would
open consideration for diverse candidates, e.g. female for the functions
or positions dominated by male. Secondly, Scanfil believes that these
activities will encourage female professionals to apply for managerial
roles and grow in the organization. This would directly contribute to the
target for women representation in the Senior Management. Scanfil will
continue with both these initiatives in 2025. Scanfil upholds high ethical
standards in its employment policies, ensuring that neither child labor nor
forced labor is tolerated in any locations around the world. Thus, Scanfil
has not taken any specific actions addressing these areas.
Actions to deliver positive impacts
One of the ways how Scanfil positively impacts own workforce is by
ensuring secure employment. This is firstly driven by and monitored
through holding to the standards of ensuring proper and legally verified
work contracts for own employees. Secondly, this is ensured by the
collaboration culture and a direct and open communication. It is executed
through both need-based meetings as well as through structured
processes like Employee Engagement Survey, and regular meetings
with unions or Workers’ Councils.
In 2024, Scanfil updated its core values and trained the employees on
these and their impact on collaboration culture. This initiative covered
white collar workers thought the e-learning platform and blue-collar
workers through the local communications and training practices. The
next action was to implement an advanced anonymous whistleblowing
channel which is aimed to ensure a higher safety-standard, while
monitoring any misbehaviours or violations. The channel is available
since Q2 both through internal and external interfaces to the entire
workforce and other stakeholders.
Scanfil observes the opportunity to further improve the own workforce
health by supporting employees’ mental health. This should deacrease
91
the sickleave rate and increase empoloyee satisfaction and motivation.
Thus, during 2024 Scanfil mapped in all its units the benefits offered
to the employees. In 2025, Scanfil plans to enhance the mental health
support packages, as appropriate.
The actions for addressing the negative impacts are resulting from
subject matter experts forums within Scanfil. These are the Safety
Council, Global HR Community meetings, Code of Conduct Forum
meetings and Management Review meetings. Scanfil plans to enhance
the structure for ESG related development meetings within 2025. In
these forums, the potential risks and actual incidents are reviewed
and preventive and corrective actions for these are discussed. The
impacted organizational unit (e.g. particular factory) is accountable for
the implementation of the defined actions, however the whole subject-
matter forum benefits from practice sharing regular meetings and
lessons learned presentations.
Scanfil performs extended risk analyses on regular basis. The conclusions
from these are subject of Management Review and sharing to functional
process owners both in global and factories’ organisations. Owing to
that, any changes in the working methods, processes, instructions or
guidelines are firstly considered for its potential impacts which enables
Scanfil to prevent from that own practices do not contribute to material
negative impact.
During 2025 Scanfil is aiming to develop the targets for tracking the
effectiveness of its policies and actions.
Sustainability is a crucial focus area in Scanfil’s long term business
strategy. Thus, the company has allocated key resources to explore and
gain knowledge of the most effective management of its material impacts.
Those are including, but not limited to the global subject matter experts,
e.g. Global Sustainability Director, Global HR Director, Global Investors
Relations and Communications Director, Global Supplier Quality Manager.
This core team was gaining insights from the resources allocated to this
mission in the factories, e.g. Quality Managers, Sustainability Managers,
HR Managers. The Group Management Team involvement was also
visible and represented by Chief Financial Officer’s, Chief Development
Officer’s and Chief People Officer’s participation. And last, but not least,
Scanfil invested in the external consultancy to further develop own
practices on addressing its material impacts.
Scanfil is aware of that the transition to greener and climate-neutral
operations might require some investments in the production units’
infrastructure, changes in the supply chain setup and collaboration
practices with remote stakeholders. However, it’s of strategic importance
to avoid that these changes would negatively impact its own workforce.
Thus, Scanfil is continuously enhancing its risk management practices
and training the specialists in own workforce on the applicable advanced
solutions, e.g. for supply chain optimisation. Additionally, any investment
needs driven from the transition are budgeted upfront and well planned, in
order to prevent them from negatively impacting operations’ profitability.
Scanfil aims to contribute to greener operations by the enhancement
of travel policy and business meeting guidelines which prioritize virtual
collaboration channels. Thus, the employer supports own workforce
with advanced virtual communication tools for effective collaboration.
Scanfil is supporting managers with coaching and mentoring to help
them with the challenges when leading remote teams and having limited
possibilities to travel for face-to-face meetings. The actions described
in this paragraph refer to Scanfil units excluding new acquired SRX.
3.1.5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
Scanfil is closely monitoring the progress of the following three targets
that are related to managing its material negative impacts, risks and
opportunities whilst aiming to advance potential positive impacts.
Workplace accident rate
Workplace accident rate, calculated as ratio of number of accidents
versus actual worked hours multiplied with 1,000,000 is one of targets
Scanfil regularly monitors. The target is related to Scanfil’s Code of
Conduct and the Accident & Incident Handling Policy, where Scanfil
prioritises the health and safety of its employees and other individuals
that may be directly affected by its own operational activities. Having
2023 as a base year, the ambition is to lower the accident rate by 10% in
2024. The scope is global and is set to control for any potential risks or
hazards that may be involved in the workforce’s daily work at all sites. All
Scanfil employees are involved in health and safety decisions through
consultation and cooperation. The company implements appropriate
health and safety procedures and working practices locally at all sites,
where local targets also are defined. Scanfil has formed a Safety Council
which monitors all work-related safety aspects and defines the measures
to reach the global targets related to health and safety based on the
trends and input from the local sites. The Safety Council gathers quarterly
to review corrective actions and preventive best practices. In 2023,
the target of the annual accident rate was measured as the number
of accidents per average active headcount. The measurement was
changed this year to comply with the CSRD reporting standards and
the 2023 baseline was re-calculated accordingly. In 2024, workplace
accident rate reached ratio of 4,5 which means an increase compared
to 2023 result which was 4,0.
Employee Engagement Survey
The Employee Engagement Survey results are closely linked to the
Code of Conduct Policy. Although the target is not explicitly mentioned
in the policy at the moment, the policy is a reason for setting targets
and monitoring collaboration, respect, work engagement and safe
working conditions. The global target level to be achieved is to reach
75 points in the main Satisfaction and motivation score by 2030 with
2023 being the baseline year. The level of 75 points is considered a
“high level” according to the methodology used by the chosen survey
developer. The target is following an increasing trend. On a local level,
each factory can set their own targets in line with the global targets,
The own workforce at the factories is involved in the results review
process, together with setting targets for following year and defining
92
the actions which will contribute to reaching the targets. The targets
or corresponding metrics or methodology have not been changed
since 2023. Furthermore, the target does not involve any environmental
matters based on conclusive scientific evidence. The result for Employee
Engagement Survey, measured as Satisfaction and Motivation was 70
points in 2024, which showed decrease for the first time for past eight
years when results were growing. The decrease compared to 2023
baseline is three points. The biggest impact on the Group level result was
driven from significantly decreased scores in Scanfil’s biggest factory
in Poland which owing to the highest number of employees contributed
strongly to the aggregated result. The main reasons for the result drop
in that unit was workforce reductions and postponed salary increases
which were driven from challenging demand situation. Directly after the
results were presented to the Factory Management Teams, all sub-units
started their work on developing the improvement plans.
Increase women’s representation in the Senior Management
Scanfil emphasizes its commitment to advancing equality between
women and men. This is expressed in Scanfil’s CEO Statement of
Support for the Women’s Empowerment Principles. Furthermore, the
target is related to the Code of Conduct Policy and is a step toward
increasing the inclusivity and diversity at Scanf. The ambition is to reach
35% women in the Senior Management positions globally by the end of
2026. The baseline year for the target was set in 2023, in collaboration
with the SWAT (Scanfil Women Appreciation Team) in the own workforce.
On a local level, Factory Management Teams set their own targets in
line with the overarching goal. The targets or corresponding metrics
or methodology have not been changed since 2023. Furthermore, the
target does not involve any environmental matters based on conclusive
scientific evidence. In the year-end women stood for 27% of senior
management which shows an increased ration compared to 2023-end
when the result was 20%
Targets are currently being developed for other impacts, risks and
opportunities identified as material to Scanfil. For example, Scanfil is
currently developing an approach (including targets and policies) for
enhancing worktime flexibility and extending employment of persons with
disabilities. To address the material risks Scanfil plans to invest in a new
salary grading system to monitor the gender pay gap, and if discrepancies
are identified, targets for impacted units to eliminate inequalities will be
defined. The trend of the sick leave rate is monitored monthly to limit the
risk of high absenteeism. As different locations present different levels,
locally applicable targets are defined and actions taken.
Monitoring all workforce-related targets is an important part of working
towards lowering the risks and managing potential negative impacts that
affect Scanfil’s own employees. This monitoring process is perceived as
an increasing opportunity for Scanfil to improve the health and wellbeing
of all employees whilst being transparent towards stakeholders in how it
works with health and wellbeing. For example, a safe work environment
reduces sick leave for employees, increases productivity and leads to
higher satisfaction and wellbeing, helping reduce the rate of future
incidents. An increase in the number of female employees in the Senior
Management will enhance Scanfil’s gender equality work and lead to
improved inclusion and diversity making Scanfil an attractive employer
and overall benefiting from diverse workforce creativity. Finally, the
Employee Engagement Survey results scoring indicate how Scanfil can
improve to continue supporting its’ employees’ motivation, wellbeing
and satisfaction from work environment.
Scanfil involves its workforce in the target-setting process. The three
most strategic, measurable targets are developed together with the
own workforce for example through the functional experts and are
considered long-term targets. The workplace accident rate reduction
is consulted with the Safety Council participants from all units; similarly,
the target for women’s representation in the Senior Management was
subject to discussion with the SWAT community. Finally, the target for
satisfaction and motivation score from the Employee Engagement
Survey is perceived as management commitment to further develop
the areas impacting employees.
The performance in reaching these targets is monitored monthly
within the Human Resources Managers community involving factories’
representatives and it is reported to the Group Management Team.
Lessons learned and suggestions for improvements are identified with
the contribution of the functional experts among employees, e.g. the
Health and Safety officers or specialists collaborating with the Area
Leaders on site are involved in accident prevention solutions design;
similarly, the HR Business Partners and departments’ leaders collaborate
on the best practices to grow diverse talents in order to increase diversity
in all management levels. As it goes for the development of areas
impacting employee satisfaction and motivation, all departments have
review sessions of the survey scores which result in defining together
with the leader the ideas for improvement activities due in the following
year. Also, the progress of scores per different survey areas is monitored
at the department level. The targets described in this paragraph refer
to Scanfil units excluding new acquired SRX.
3.1.6 Characteristics of the
undertaking’s employees
The Scanfil workforce primarily comprises Scanfil contracted employees
(3,997 headcount) who total 89% of the total workforce (4,502 headcount)
as well as minor group of five persons who hold non-guaranteed hours
contracts and work for Scanfil on need base. The remaining workforce
is third party contracted employees (495 headcount) and self-employed
(five headcount) delivering services to Scanfi. The company goal is to
incorporate third party employees to the highest extent to the work
standards and company culture in order to provide seamless services
to the customers. Therefore, most company policies and standards,
like the Code of Conduct, health and safety system, or competence
development opportunities are offered to both own employees and
non-employees. The total number of employees who left Scanfil (both
voluntarily and non-voluntarily) during 2024 was 532, which equals
an employee turnover of 14%. This number includes also employees
whose leave was intentional, for example summer workers leaving after
the pre-defined agreed period. The reported date refers to headcount
93
indicating the number of employees from the last month of the year.
The data is originating from country specific payroll systems, from
where they got extracted and reported to Scanfil Group consolidation
system Cognos, from which you retrieve monthly reports as well as data
to the CSRD Report. The data presented above corresponds with the
headcount numbers in the Financial Statement, section 1.4 Employee
benefit expenses.
Non-guaranteed hours workers are not treated as employees so not
included in Scanfil headcount reporting but included here as part of the
workforce. These are classified as part-time workers.
3.1.7 Characteristics of non-employees
in the undertaking’s own workforce
Scanfil has 500 non-employees in own workforce per the end of the year
2024; 495 are employed by a third party and five are self-employed. This
means they stand for 11% of the total workforce. Third party workers are
provided by undertakings primarily engaged in employment activities.
They are monitored on a monthly basis and are a part of the reporting
and follow-up in Scanfil’s monthly report. The number of reported non-
employees, reflect the number of heads who worked in the last month
of the reporting period, meaning headcount. Additionally, self-employed
workers are included there.
3.1.8 Collective bargaining
coverage and social dialog
Collective agreements are common practices in Sweden, Finland, and
China. There the majority of the employees are covered by collective
bargaining agreements. Moreover, part of the employees in Poland are
also covered by these. In other countries, it is still widely applicable
that employees are represented by their locally chosen representation
REPORTING PERIOD ST DECEMBER
Country
Number of
employees
(headcount)
Poland 1,463
China 589
Sweden 423
Estonia 533
Finland 291
USA 180
Germany 227
Malaysia 162
Australia 124
Other 5
Total 3,997
REPORTING PERIOD
Type of employment Female Male Other* Not disclosed Total
Number of employees (headcount) 1,983 2,019 0 0 4,002
Number of permanent employees (headcount) 1,783 1,884 0 0 3,667
Number of temporary employees (headcount) 199 131 0 0 330
Number of non-guaranteed hours employees (headcount) 1 4 0 0 5
Number of full-time employees (headcount) 1,933 1,993 0 0 3,926
Number of part-time employees (headcount) 53 23 0 0 76
* GENDER AS SPECIFIED BY THE EMPLOYEES THEMSELVES.
REPORTING PERIOD
Gender
Number of
employees
(headcount)
Male 2,015
Female 1,982
Other n/a
Not reported n/a
Total employees 3,997
94
Management groups
Female Male Total
% female
in Senior
Management
Group Management Team 2 5 7 29%
Global Functions’ Directors
and Heads
4 12 16 25%
Factory Management Teams 28 77 105 27%
Total 34 94 128 27%
Employees under 30 years old 698 17%
Employees 30-50 years old 2,307 58%
Employees over 50 years old 992 25%
Total 3,997
Collective Bargaining Coverage Social Dialog
Coverage Rate Employees - EEA Employees - Non-EEA Workplace Representation ( EEA only)
0-19% Poland, Estonia, Germany USA, Australia, Malaysia
20-39%
40-59%
60-79%
80-100% Finland, Sweden China Finland, Sweden, Poland, Estonia, Germany
committees. At the end of year 2024, 1,471 employees were covered
by the collective bargaining agreements, which totals 37% of the total
employees globally. It is an important part of Scanfil’s collaboration
culture between the employees and management, thus even there where
collective agreements are not in place, the employees are represented
by Works Councils, unions, or internally elected Workers Representation
Committees. The areas that are the subject of discussions, alignment,
or negotiations between workers representatives refer to a wide range
of areas, starting from working conditions, terms and conditions of
employment, remuneration schemes, etc. In the table below, percentage
of own employees covered by collective bargaining agreements are within
coverage rate by country with significant employment in the EEA and
outside of the EEA are presented, as well as percentage of employees
in country (EEA) covered by workers’ representatives. In the European
units, majority of employees are covered by workers’ representatives,
either formulated in Workers Councils or unions or company’s internal
Workers Representation Committees. There is no existence of any
agreement with Scanfil’s employees for representation by a European
Works Council (EWC), a Societas Europaea (SE) Works Council, or a
Societas Cooperativa Europaea (SCE) Works Council.
3.1.9 Diversity metrics
At the end of year 2024, Scanfil observed 27% (34 women) of females in
the Senior Management. Senior Management is defined as the Group
Management Team, Global Functions’ Directors and Heads, and Factory
Management Teams. This means an increase compared to 2023-end
when this ratio was 20%.
The age diversity of Scanfil own workforce indicates balanced split
between the middle aged personnel as well as the junior and senior
employees.
95
3.1.10 Adequate wages
All countries where Scanfil operates have a defined minimum country
wage, the company as well as third party providers for non-employees
follow these requirements. According to Scanfil, minimum wages are
considered adequate wages, and therefore the percentage of employees
paid below the adequate wage is 0%.
3.1.11 Health and safety metrics
Scanfil’s occupational safety is guided by the safety management
system, and the incidents and accidents handling is described in
the guideline of the same name in the Scanfil Management System
(SMS). The safety practices adopted locally firstly follow each country’s
regulations and, secondly, the standards established at Scanfil. In
addition to guiding occupational safety, the ISO 45001 standard calls
for a safety management system. The Scanfil CEO is accountable to get
responsible Management Teams to implement and execute the safety
policies in accordance with the requirements.
Occupational safety commitments are defined in the Work Environmental
Policy, the Code of Conduct, and the responsibilities stated in the position
descriptions for managers.
All the employees are entitled to social protection in case of work-
related injuries.
Scanfil has created a community consisting of Health and Safety Officers
and HR Managers to support the continuous development of safety
practices. It is called the Safety Council, and it meets quarterly to review
the accidents that have happened in the recent quarter, together with
the corrective and preventive actions resulting from these. The best
practice sharing comes from the forum insights and is subject to an
annual review.
To enhance safety awareness Scanfil has implemented a Safe Scanfil
campaign in 2024. The topics tackled are expected to drive reflection
on safety and own accountability for the actions taken by everyone.
At Scanfil, 100% of the workforce is covered by the health and safety
management system. Both the preventive measures taken in Scanfil units
as well as continuous safety improvements of the safety are impacting
own employees as well as non-employees.
During 2024, there were 34 reported work-related accidents, meaning
injuries happening on Scanfil premises that resulted in an employee’s
or non-employee’s sick leave; 30 of these impacted Scanfil employees
and four of these impacted third party employees. These result in the
accident rate being 4.5 for 2024. It is calculated as the ratio of the
number of accidents to the number of hours worked and multiplied by
one million. 2024 shows negative development compared to the 2023
rate which was 4.0. On top of the accidents, there were 21 other work-
related injuries which have not resulted in days away from work. Seven of
these resulted in restricted work or transfer to another job, five resulted
in loss of consciousness, nine resulted in medical treatment beyond first
aid. Taking into consideration the other 21 injuries, Scanfil calculated the
total work-related injury rate using the same methodology as descibed
above but including not only 34 accidents but also 21 injuries. The rate
totals up to 7.3.
Analysis of the accident categories indicates a decreased number of
accidents while operating the machines and during assembly operations,
however increased number of accidents while handling of the hand-tools
and the ones happening in the company’s social facilities.
The accidents resulted in a total of 621 lost working days during 2024,
27 days for non-employees and 594 days for employees.
There was one serious accident, meaning an accident that required
an employee’s hospitalization. It happened while operating a rivet tool.
After 24 days of absence, the employee returned to work. Preventive
actions were applied at the factory.
There were no fatalities among either Scanfil employees or non-
employees.
3.1.12 Remuneration metrics (pay
gap and total remuneration)
Scanfil is developing gender pay gap monitoring. The general overview
with split per employees’ categories indicates in the first analyses
significant difference are observed in white collars category. To further
investigate it and address with actions, Scanfil plans to introduce
Pay Equity software during 2025 to enable accurate conclusions.
Employee Category
Aggregated gender pay
gap, Basic salary [%]
Blue Collars 14.46
Middle Managers 11.71
Senior Managers 16.27
White Collars 19.90
The above difference in gender pay was obtained by taking out a spread
of data on male and female basic salary, based on factories’ payroll
system data. Basic salary for all the months of employment during the
year 2024 is divided into number of standard work hours during the actual
employment period of each employee. This way calculated hourly pays
are aggregated per gender and employee category and then divided
into hourly rates. The exception is China where the pay and work hours
include also overtime due to its significant contribution to basic salary
and standard work time.
96
Total annual remuneration ratio for 2024 is 5%. The calculation is based
on median of actual paid remunerations for all employees during the
year 2024 and compared with the annual remuneration of the highest
paid individual who was excluded from the median.
3.1.13 Incidents, complaints, and
severe human rights impacts
The Scanfil workforce as well as any external stakeholder can report
any ethical concerns or violations of the Code of Conduct or applicable
legislation, as described also in section 3.1.3 of this report.
Scanfil has enhanced its whistleblowing channel with a digital tool that
ensures the anonymity of the reporter. Employees may also report
violations by sending emails or giving official claim letters to local or
global HR. The number of reported cases is subject to a monthly report
to Scanfil Management Team. Furthermore, the Code of Conduct Forum
gathers quarterly to discuss the cases and lessons learned. The Forum
consists of factories’ HR Managers, Global HR Director, and Global
Sustainability Director. All the cases are thoroughly investigated, ensuring
the anonymity of the reporters, and ensuring whistleblowers’ protection.
During the reporting period year 2024, there were 30 incidents of
misbehavior reported through the official channels. All of them were
investigated and interviews were performed with the subjects of
the allegations and also with possible witnesses. In ten cases, the
situation was not classified as the alleged violation mentioned in the
original reporter’s statement, but to nevertheless continuously enhance
respectful collaboration standards, and verbal reprimands were also
issued. The other incidents resulted in corrective actions and at the
year-end eight of them still remain open as follow-up of the defined
corrective or development activities are planned. Scanfil has not called
for any fines or penalties from these allegations.
There were no severe human rights violations.
The table below presents information of the total number of incidents of
discrimination, number of complaints filed through channels for the own
workforce, to National contact points for OECD multinational enterprises
and total amount of fines and penalties as a result of incidents.
Number of incidents of discrimination and harassment 1
Number of complaints filed through channels for people
in the undertaking’s own workforce to raise concerns
(including discrimination and harassment)
30
Number of complaints filed to National Contact Points
for OECD Multinational Enterprises
0
Total amount of fines and penalties 0
97
3.2 Workers in the value chain
Scanfil’s suppliers. The highest ranked person responsible for the policy
is Scanfil’s Chief Procurement Officer (CPO). Scanfil requests that
its suppliers always adhere to all applicable laws, regulations, and
international standards related to sustainable procurement, including the
UN Global Compact principles and International Labor Organization (ILO)
rules. As a complement to ethical sourcing, Scanfil has also developed
a Conflict Mineral Policy to ensure responsible sourcing concerning
human rights in the mining of minerals.
Scanfil’s Sustainable Procurement Policy is valid for all employees in the
upstream value chain as described in section Material impacts, risks and
opportunities and their interactions with strategy and business model
under 1. General information.
In addition to the Policy, Scanfil has also established a Supplier Code of
Conduct. This has been developed following the guidelines from RBA
(Responsible Business Association). By following the recommendation
from RBA, Scanfil can ensure that the Scanfil Code of Conduct sets
commitments in line with the OECD, UN & ILO. As of now, Scanfil has
not identified or been informed about any breaches to this commitment
in Scanfil’s value chain. The provisions of the RBA Code are derived from
and respect internationally recognized standards including:
• OECD Guidelines for Multinational Enterprises
• UN Guiding Principles on Business and Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work
• ILO Fundamental Conventions
• UN Universal Declaration of Human Rights
The Scanfil Supplier Code of Conduct communicates Scanfil’s
sustainability expectations to the suppliers. This addresses issues
about human trafficking, forced or compulsory labor, and child labor which
Scanfil strongly opposes. Scanfil’s Supplier Code of Conduct includes:
3.2.1 Policies related to value chain workers
Scanfil as a global Electronic Manufacturing Service (EMS) company will
have an impact on value chain workers in different parts of the world.
Following the same commitment as for its workforce, Scanfil believes
that companies in Scanfil’s value chain will perform better and be more
efficient if employees can perform their work in a healthy and safe
environment following international standards and guidelines.
During 2023 Scanfil completed a stakeholder survey, where the identified
stakeholders, as described in 1. General information, were asked to rank
Scanfils’s impact (both material and financial) on topics as described by
the ESRS standard and its sub-sub topics. Scanfil’s stakeholders, which
also included representation from the upstream value chain, identified
health and safety as a material impact. To address the interests of
stakeholders, Scanfil has established a Sustainable Procurement Policy.
This policy works together with Scanfil’s Supplier Code of Conduct which
has been developed following international standards. This policy covers
workers in Scanfil’s upstream value chain and was introduced in 2024.
The Scanfil Supplier Code of Conduct was established in 2023. No
changes or updates to these policies have been made during 2024. The
Scanfil Sustainable Procurement Policy, together with the Scanfil Supplier
Code of Conduct, are stand-alone policies specifically to address the
impacts of the upstream value chain. This policy was developed in
alignment with OECD Guidelines and Fundamental principles of ILO.
Scanfil has established a Sustainable Procurement Policy that addresses
six sustainability areas for suppliers to agree on. These are compliance,
transparency, environmental protection, social responsibility, ethical
sourcing, and continuous improvements. The purpose of the Scanfil
Sustainable Procurement Policy is to express and align Scanfil’s
expectations and requirements into the supply chain. The same high
sustainability standard required for Scanfil, must also be applied by
Labor rights (employment rights, human treatment, employment of
children, fair employment conditions, and freedom of association)
Health and safety (working and living conditions, occupational illness
and injury rates, and machine safeguarding)
Environment (pollution prevention and resource reduction, hazardous
substances, energy consumption, and greenhouse gas emissions)
Business ethics (no improper advantage, disclosure of information, fair
business, protection of identity, confidential information, responsible
sourcing of minerals)
To communicate Scanfil’s Policy for Sustainable Procurement, Scanfil
has integrated this as part of the procurement processes. More on
Scanfil’s way of communicating and engaging with value chain workers
can be read in 3.2.2 Processes for engaging with value chain workers
about impact. In addition to this, Scanfil’s Supplier Code of Conduct is
available on Scanfil’s webpage, www.scanfil.com. Scanfil’s Supplier Code
of Conduct shall be signed by all Scanfil’s suppliers, and Scanfil aims to
start measuring the coverage of signatures during 2025. As a start, this
is a mandatory evaluation point for a new supplier to Scanfil, and without
a signed Supplier Code of Conduct, a new supplier cannot be approved.
3.2.2 Processes for engaging with
value chain workers about impact
Scanfil’s general approach to engaging with workers in the value chain is
handled in Scanfil’s procurement processes. The most important is the
selection of a new supplier, the NPI (new supplier Introduction) process,
in which the supplier needs to show its commitment to the requirements
stated in the Code of Conduct. By doing this, Scanfil will reduce the risk
of introducing new suppliers with weak processes for their workers’ well-
98
being. Scanfil also utilizes a consolidation strategy aiming to address the
majority of the spending to suppliers with acceptable and sustainable
performance ratings.
Suppliers already in Scanfil’s portfolio of suppliers will be reviewed
according to the tools below.
Scanfil has four main processes where it can address concerns and
engage with value chain workers about impact. Contacts are mainly
done via the sales representatives of the suppliers but can also be more
direct with the value chain workers during Scanfil’s Supplier Audits. The
tools to engage with the suppliers are:
Introduction of a new supplier: When applying to become a new supplier
to Scanfil, the supplier shall commit to the Supplier Code of Conduct.
Quarterly business review meetings: These are development meetings
held with preferred and key suppliers, and in which sustainability rating
is discussed. Poor sustainability performance will lead to suggestions
for improvements.
Audits: Scanfil visits and audits suppliers at their premises. During the
audit sustainability questions about health and safety, child labor, age
verification, and discrimination are reviewed.
EcoVadis: A third party sustainability assessment of suppliers. This
assessment will show if there are areas of improvement that need to
be addressed by the suppliers.
More information about Scanfil’s methods and tools to engage with its
stakeholders can be found in 1.8 Interests and views of stakeholders.
For the procurement organization, the assessment tool provided by
EcoVadis gives them good information about the sustainability rating of
suppliers, and also how well the supplier meets international standards
regarding labor and human rights. Unrated or suppliers with poor rating
scores shall be avoided, or if not possible, show an improvement plan. As
an example, Scanfil has focused on having key- and preferred suppliers
assessed by EcoVadis during 2024. By requesting these suppliers to
do the EcoVadis assessment, Scanfil ensures that the perspectives of
value chain workers are considered according to international standards.
If the assessment shows low performance within the topic of labor and
human rights, Scanfil can use the EcoVadis platform to request the
supplier to improve. Failure to improve might affect business relations.
The highest ranked person responsible for the policy is Scanfil’s Chief
Procurement Officer (CPO).
Scanfil will continue to investigate methods to engage directly with
value chain workers. Scanfil is always seeking ways to improve, and in
2025, the company will look into tools to identify risk areas and collect
information about the material impact on value chain workers including
workers that might be particularly vulnerable.
3.2.3 Processes to remediate negative
impacts as well as channels for value
chain workers to raise concerns
If Scanfil becomes aware of any breaches of either national laws or the
Supplier Code of Conduct, Scanfil will immediately get in contact with
the representatives of the company. Scanfil expects corrective action
and proof that the upcoming breaches have been adjusted to meet
the requirements.
Scanfil can be informed about breaches in different ways. One way is via
the EcoVadis 360 view, in which official news that affects companies is
scanned. This news can be positive, negative, or neutral. The findings in
the 360 view can affect the suppliers’ score both positively and negatively.
Scanfil can also be informed directly via whistleblowing channels.
Through this channel, anyone, both internal and external employees,
can anonymously report any concern to Scanfil.
Results from audits can address breaches, and the supplier will be
requested to present a corrective action plan to Scanfil.
Any material impact caused must be corrected and mitigated by the
supplier and tracked by Scanfil until it is considered closed. The inability
to resolve any problems that have arisen may lead to the termination of
the agreement with the supplier. Scanfil does not directly compensate
individuals in the supply chain in case of any impact. Scanfil’s methods
for communicating and developing suppliers are described in chapter
3.2.2 Processes for engaging with value chain workers about impact.
It can be difficult to assess if value chain workers are aware of and
trust the channels for raising concerns, and today this can only be
done occasionally during supplier audits and in direct contact with the
workers. The Supplier Code of Conduct clearly states that programs that
ensure the confidentiality and protection of whistleblowers are to be
implemented and maintained, accompanied by a process enabling them
to raise any concerns. The whistleblowing channels can be accessed at
www.scanfil.com and it is communicated to suppliers in the Scanfil Code
of Conduct. To protect people using this channel, Scanfil’s whistleblowing
process offers full anonymity. Read more about the process in 4.1.2
Business conduct policies and corporate culture. Scanfil’s Supplier Code
of Conduct ensures the confidentiality and protection of whistleblowers
and requires suppliers to implement and maintain a process enabling
their workers to raise any concerns.
3.2.4 Taking action on material impacts on
value chain workers’ approaches to managing
material risks as well as pursuing material
opportunities related to value chain workers
and the effectiveness of those actions
From Scanfil’s Double Materiality Assessment (DMA), health and safety
were identified as a material impact for value chain workers. Scanfil’s
Supplier Code of Conduct addresses these impacts throughout the value
99
chain. Any negative or positive impact will be managed by processes
for supplier development, and EcoVadis can be used as a tool to follow
the effectiveness of these actions.
To prevent and mitigate the risk of impact, Scanfil seeks to do business
with suppliers that share the company’s core values and commit to
international standards as outlined in chapter 3.2.1 Policies related to
value chain workers. Before approving a new supplier, Scanfil conducts
a thorough assessment to ensure that potential new suppliers uphold
strong sustainable practices and a commitment to labor and human
rights.
The Scanfil Supplier Code of Conduct is a key document for addressing
sustainability requirements for suppliers. Scanfil strives to have the
Supplier Code of Conduct signed by all suppliers of direct materials.
Scanfil is currently investigating tools to simplify the tracking of signed
Supplier Code of Conduct documents. Today, Scanfil has this as a
mandatory part of its global and local purchase agreement. Currently,
Scanfil can only estimate the percentage of signed Supplier Code of
Conduct documents.
To achieve a positive material impact for workers in Scanfil value chain,
Scanfil continuously works to improve supplier policies and processes.
This is done through regular supplier improvement meetings or quarterly
business reviews of the preferred suppliers. In these meetings, the
supplier’s sustainability rating, as assessed by Ecovadis, is reviewed and
actions to improve are agreed. These actions are integrated into Scanfil’s
procurement processes and Scanfil’s Global Category Managers are
responsible for developing their suppliers to meet Scanfil’s requirements
as outlined in Sustainable Procurement Policy and Supplier Code of
Conduct. Scanfil has 12 people working within global sourcing (Category
Managers) along with about 50 local tactical buyers.
Scanfil also conducts regular supplier audits to ensure adherence to
ethical, environmental, and social standards. Scanfil collaborates with
suppliers to enhance their sustainability efforts, focusing on labor and
human rights. In 2024, Scanfil completed 42 supplier audits. This activity
is supervised by the Global Supply Chain Quality and Sustainability
Manager in cooperation with 10 local Supplier Quality Engineers/
Managers. The key actions planned to minimize risk exposure for value
chain workers can be read later in this chapter, but no targets are currently
Key actions during 2024
How action contributes
to policies and target Scope of key actions Time horizon
Result and result for
value chain workers
EcoVadis assessment for
preferred and key suppliers.
Scanfil’s Policy for Sustainable
Procurement is aligned with the
EcoVadis assessment which
evaluates the supplier according
to international sustainability
standards (UNGC, GRI, ISO, and
more).
This includes all upstream value
chain workers independent of
geographic location.
Continuously with targets as
presented in section 3.2.5
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities.
Insights from the EcoVadis
analysis reveal that Scanfil’s
supplier base outperforms
the industry average while
highlighting opportunities
for improvement among
underperforming suppliers.
Mandatory Supplier Code of
Conduct for new suppliers.
Scanfil’s Supplier Code
of Conduct addresses
requirements for suppliers
regarding environmental, social,
and governance.
Upstreams value chain workers. Continuously with targets as
presented in section 3.2.5
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
This requirement will send a
clear message to potential new
suppliers and drive suppliers to
provide better working conditions
for workers.
available. The operational costs for the EcoVadis system are included in
annual budget plans and do not have any significant impact.
Since 2021, Scanfil has annually participated in the EcoVadis assessment
to evaluate the sustainability performance of its procurement practices.
This assessment helps us understand how well Scanfil handles
sustainability concerns across the value chain. For 2024, Scanfil received
a score of 60 points in sustainable procurement and has set a target to
achieve 70 points in the 2025 assessment. Scanfil’s tools for introducing
and developing suppliers help to mitigate the impact risks in its value
chain, and processes for remedy are used as explained in chapter 3.2.3
Processes to remediate negative impacts as well as channels for value
chain workers to raise concerns.
Today, Scanfil’s focus is primarily on key suppliers with whom Scanfil
have regular interactions and the ability to influence. Scanfil also works
with suppliers that are used less frequently or only for specific, limited
needs, which makes it more challenging to have an impact on their
sustainability practices. To better assess the risks associated with
these suppliers, Scanfil is exploring various screening tools. These
tools will help to identify areas of risk, enabling to target the efforts more
effectively. Scanfil aims to implement such tools by 2025. In case of any
breaches to its commitments, Scanfil will utilize its supplier auditing
process to secure that implemented improvements positively affect
worker conditions. More of Scanfil’s processes can be read in chapter
3.2.3 Processes to remediate negative impacts as well as channels for
value chain workers to raise concerns.
In 2023, Scanfil became a “requesting company,” meaning that the
key suppliers are now required to undergo a sustainability assessment
through EcoVadis. This allows Scanfil to better measure the sustainability
performance of the supply chain. Scanfil prioritizes key and preferred
suppliers and requests that they participate in EcoVadis assessments.
If the assessment identifies weaknesses, Scanfil can use the EcoVadis
platform to request corrective actions from suppliers. Failure to make
100
these improvements may lead to a re-evaluation of the supplier
relationship.
Scanfil has conducted webinars for suppliers twice per year to introduce
the suppliers to Scanfil’s sustainability work and to provide insights about
the EcoVadis platform and the benefits of using a common transparent
system to communicate sustainability concerns.
If suppliers do not meet Scanfil’s targets for the EcoVadis sustainability
rating, and specifically for the topic of labor and human rights, they will
be requested to present an action plan on how to deal with this. With
this Scanfil can track the development in these areas, and if needed,
escalate or support the supplier to improve. Scanfil also has the possibility
to audit the suppliers to ensure that actions were efficient.
With a big scope of suppliers that Scanfil will impact and depend on,
it needs to have good tools to identify risks. During the coming years,
it will be a focus area to find such tools or methods that can help the
procurement team minimize risks of workers in the value chain. Currently,
Scanfil lacks a robust method to ensure that its actions have a direct
positive impact on workers in the value chain. However, Scanfil has
observed that suppliers who complete the EcoVadis assessment and
begin working on sustainability improvements show rapid progress in
their scores.
As a cost-driven company, it is always important for Scanfil to search
for supplier relations that give the best-landed cost. This can cause
tensions between the choice of low price or low sustainability risks. For
this reason, Scanfil does require that all new suppliers must sign the
Scanfil Supplier Code of Conduct. With this as a minimum requirement
for new suppliers, Scanfil can assure not to introduce suppliers who
do not respec international laws in terms of labor and human rights.
Further, Scanfil has also set as a minimum that all key and preferred
suppliers must have completed an EcoVadis sustainability rating, which
will make it possible for Scanfil to address requests for improvement. Not
meeting these minimum requirements may lead to a termination of the
contract. Scanfil measures the risk quota for sustainability by targeting
the spend placed on suppliers with a good sustainability rating. With the
implementation of minimum requirements, Scanfil can avoid tension
between the prevention or mitigation of material negative impacts and
other business pressures.
As of today, Scanfil has not reported any severe human rights incidents
in its value chain.
At Scanfil, the Chief Procurement Officer has the overall responsibility
to manage any material impacts caused to a worker in the value chain.
This is operationally handled by the global and local procurement team
with the support of Scanfil’s sustainability related roles.
At Scanfil the sourcing organization is responsible for selecting and
developing suppliers following the company’s sustainability policies.
With both global and local buyers Scanfil believes that it can reach out
to all suppliers from both perspectives.
The supplier quality and sustainability function supports the buyer with
tools and processes to achieve sustainability targets.
3.2.5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
To manage material negative impacts, advance positive impacts, and
manage material risks and opportunities, Scanfil has implemented the
following targets.
Level of preferred and key suppliers with a sustainability rating
A sustainability rating must be issued by a recognized third-party
provider. The EcoVadis assessment has been verified to be in line
with Scanfil’s Supplier Code of Conduct and will enhance supplier
commitment to this policy. Scanfil aims to have this share as high as
possible and has set a target to be above 90 % by 2030. The target
is relative as the total amount of preferred and key suppliers might
change over the year. All Scanfil suppliers of direct material (material
used in customer products) are included in this target. The baseline for
this target was set in January 2024 to 40% as the first reporting year.
KPI
Result
31.12.2024 Target 2030
Baseline
(Jan. 2024)
Level of preferred
and key suppliers
with a sustainability
rating
65% >90% 40%
Measurement is done monthly based on data from the past three months
and Scanfil expects a linear progress until 2030. This target is measured
as the share of assessed preferred and key suppliers as part of the
total amount of preferred and key suppliers. This KPI shows Scanfil’s
suppliers the importance of complying with international standards
(such as labor and human rights, and health and safety) to become a
long-term partner to Scanfil. This target was set by the Scanfil supply
chain department together with internal sustainability experts as a
method to boost the willingness of preferred and key suppliers’ to rate
their sustainability work. Since the target was implemented in 2024,
no changes related to the targets or methods have been made during
2024. Scanfil can see a strong positive trend and in general, more and
more companies do assess their sustainability systems. At this time,
Scanfil cannot foresee any major obstacles to meeting this target. The
target is part of the monthly report and informed to the Directors of
Purchasing and Sustainability.
Share of spend placed to suppliers with a sustainability rating.
A sustainability rating must be issued by a recognized third-party
provider. The EcoVadis assessment has been verified to be in line
with Scanfil’s Supplier Code of Conduct and will enhance the ability of
101
Scanfil’s procurement departments to address their purchase towards
suppliers with a sustainability rating. Scanfil aims to have this share as
high as possible and have set a target to be above 80 % by 2030. The
target is relative as the total spend will change over the years. Scanfil’s
spending for direct material (material used in customers’ products) is
included in this target. The baseline year for this target was 2024 and
the value was 40%.
KPI Result 2024 Target 2030
Baseline
(Jan. 2024)
Share of spend to
suppliers with a
sustainability rating
47% >80% 40%
Measurement will be done based on a rolling 3-month period, and Scanfil
has projected linear progress until 2030. This target is measured as the
share of spend placed on assessed suppliers as part of the total spend
for direct material. It does emphasize to Scanfils procurement teams the
importance of using sustainable suppliers that comply with international
standards for labor and human rights, and health and safety. This target
was set by Scanfil’s supply chain department together with internal and
external sustainability experts as a method to monitor and develop
current suppliers or redirect spending to more sustainable sources.
Since the target was implemented in 2024, no changes to the targets
or methods have been made during 2024. Scanfil can see a positive
trend and cannot foresee any major obstacles to meeting this target at
this phase. The target is part of the monthly report and informed to the
Directors of Purchasing and Sustainability. By the end of 2024, Scanfil
The average result of Scanfil’s supplier who has completed the EcoVadis assessment.
Labor & human Rights
61.0
+9.0
compared to the benchmark
Sustainable procurement
54.1
+14.4
compared to the benchmark
Ethics
55.8
+8.0
compared to the benchmark
Overall
61.2
+11.2
compared to the benchmark
Environment
67.7
+16.0
compared to the benchmark
had 167 suppliers with a completed EcoVadis assessment, accounting
for 47% of the total procurement spend.
By targeting these KPIs, Scanfil will challenge the supply base to
implement sustainable practices which will have the opportunity to
reduce negative impacts, advance positive impacts, as well as manage
risks and opportunities.
Targets are decided together within Scanfil’s supply chain departments
(supply chain, procurement & supplier development). Scanfil has also
been guided by experts from EcoVadis on how to set targets that will
be relevant for Scanfils value chain workers.
Once decided as a target the new target is followed as a KPI. Scanfil’s
supplier quality & sustainability function reports the actual value monthly
to the Director of Sustainability who reports it to the Group Management
Team. The responsibility to reach the targets is on Scanfil’s supplier
quality & sustainability function and will be a part of their incentive
program.
Scanfil started tracking these KPIs in 2024, and can see a steady
improvement in all of them. In relation to Scanfil’s impact on health
and safety in the value chain, the Group sees that more suppliers have
established policies that are aligned with international standards. Based
on EcoVadis-assessed suppliers, Scanfil’s rated suppliers perform above
the industry average, see picture “The average result of suppliers who
have completed the EcoVadis assessment”.
102
4.1.1 The role of the administrative,
management and supervisory bodies
The supreme decision-making bodies are the Annual General Meeting
(General Meeting) of the parent company Scanfil plc and the Board
of Directors (the Board). The Board has an Audit Committee with the
purpose to supervise the financial reporting process and the reporting
of the financial statements, sustainability statements and interim reports
and to monitor the functionality of the company’s internal supervision
and risk management. It also evaluates the appropriateness of auditing
and prepares the proposal for the appointment of an auditor to the
General Meeting.
The Shareholders’ Nomination Board prepares proposals for General
Meetings concerning the election of Board members and the
remuneration of the members of the Board and Board Committee
members. The Nomination Board is also responsible for ensuring that
the Board and its members have a sufficient level of knowledge and
experience that corresponds to the needs of the Scanfil e.g. strategy
development, sustainability and accounting. The Board appoints the
CEO, who is responsible for setting Scanfil’s strategic goals, and ensuring
that the necessary resources are in place to achieve them. The Group
Management Team assists the CEO with expertise in the business code
of conduct and sustainability.
The Group’s General Counsel reports directly to the CEO and acts as
a secretary to the Board. The General Counsel is part of the extended
Group Management Team. The area of sustainability is led by the Group’s
Chief Development Officer with the help from the Director Global
Sustainability. All members of the Board have long and comprehensive
expertise on ethical business conduct throughout their professional
careers. Scanfil’s governance model and roles are described in details
in sections 1.1 and 1.2.
4.1.2 Business conduct policies
and corporate culture
In 2024, Scanfil had 27 policies and other guiding principles. These
concerned e.g. traveling, financing, quality, and risk management. The
CEO has approved Scanfil’s key policies: the Code of Conduct and the
Supplier Code of Conduct.
The Code of Conduct underscores the principles by which Scanfil
conducts its relations with employees, business partners, and other
stakeholders. All employees must be aware of and comply with the Code
of Conduct, which, together with group policies, form the basis for working
at Scanfil. All employees are expected to always act according to it. All
managers are accountable for enforcing the Code of Conduct in their
organizations. Failure to comply with the Code of Conduct will result in
an investigation and can result in disciplinary actions. Scanfil requires
suppliers, subcontractors, consultants, and other business partners to
adopt and follow the principles of the Code of Conduct.
All new Scanfil employees are required to complete the Code of
Conduct e-learning courses or in-person training and acknowledge their
commitment to it. The learning materials covers key ethical principles
and describes the best practices through examples and exercises.
Depending on the employee’s duties, some are also required to complete
e-learning courses related to other policies such as conflict mineral
and supplier contract management policies. Meetings focusing on
diversity, equity, and inclusion were arranged quarterly for global and
local management (Please see section 3.1 Own workforce).
The Supplier Code of Conduct is a separate policy that all new
suppliers need to comply with to become a supplier. Among other
recommendations, Scanfil has followed the United Nations Convention
against anti-corruption in preparing the Supplier Code of Conduct. Anti-
corruption practices and risk assessment are outlined in the Code of
Conduct and the Supplier Code of Conduct. The evaluation is performed
on a needed basis taking into consideration the local regulations,
business performance practices, counterparts, and cultural context.
The risk assessment enables Scanfil to undertake required preventive
measures to limit exposure to corruption risks. The risk assessment
results are presented annually to the Group Management Team as
part of the management review. Scanfil aims to implement a policy
on anti-corruption and anti-bribery consistent with the United Nations
Convention against Corruption in 2025.
Scanfil is a signatory of the United Nations Global Compact initiative.
All company’s suppliers must support and respect the United Nations
Global Compact principles. Scanfil and its suppliers ensure that they
are not involved in any complicity concerning human rights abuses.
Scanfil expects its suppliers to commit to and respect ILO’s core labor
standards: Freedom of association and right to collective bargaining;
elimination of forced fabour; effective abolition of child labour; elimination
of discrimination in respect of employment and occupation. The Supplier
Code of Conduct describes in details Scanfil’s requirements to its
business partners in labor, health and safety, environment, business
ethics, management systems and communications to all appropriate
employees, suppliers or sub-contractors engaged in their supply chain.
4.1 Business Conduct
4. Governance
103
Scanfil has a conflict mineral policy to meet international responsible
sourcing standards, set by the Organisation for Economic Co-operation
and Development (OECD). Conflict minerals are tin, tantalum, tungsten,
and gold regardless of their country of origin.
Scanfil’s company culture is driven by values which are the foundation
for the company’s operations. The Group Management Team and the
Board review the company’s values once a year in connection with
the annual strategy process. In 2024, “Proactive” was replaced with
“Empowered”. Scanfil’s values are:
Customer focused
We add value for our customers and help customers
achieve their goals. We build and nurture long-term
partnerships. We treat customers fairly and expect fair
treatment.
Achieving together
We collaborate across teams and sites and support
each other. We benefit from diversity and respect every
individual. We celebrate progress and achievements.
Empowered
We take ownership of our own performance, behavior and
growth. We explore opportunities to improve and learn from
our mistakes. We make decisions in our own responsibility
area based on data and evidence.
Engaged to perform
We keep our promises: deliver on time, with quality,
at competitive cost. We proactively detect and solve
challenges with a solution focus. We continuously improve
our competences and capabilities.
The updated values were published in March 2024 and frequently
communicated in connection with the values and strategy implementation
process. The process included new value posters in all local languages,
an online survey on values and behavior, frequent articles on the Intranet
and promotion at the quarterly online meetings open to all employees,
as well as an activation section aimed at identifying behaviors in line with
the company’s values in everyday work. Teams evaluated to have acted
in an exemplary manner in line with Scanfil’s values received recognition
as part of the “Most Wanted Team” activation campaign.
Scanfil employees and all other stakeholders can report any ethical
concerns or violations of the Code of Conduct, Supplier Code of Conduct
and/or applicable legislation. Scanfil has a digital whistleblowing channel
which ensures anonymity of the reporter. Employees may additionally
report violations by sending emails or placing official claim letters to
local or global HR. The number of reported cases is subject to monthly
reporting to the Group Management Team. The Code of Conduct Forum
collects quarterly cases and gained experiences for discussion. The
Forum consists of factory HR Managers, the Global HR Director, the
Director Global Sustainability, and the Chief People Officer. All cases
are investigated, ensuring the anonymity of the reporters, and ensuring
the protection of whistleblowers. Scanfil is committed to investigating
business conduct incidents promptly, independently and objectively. In
2024 there were 30 reported concerns or violations.
Whistleblowers are protected by the local laws in all operating countries.
If such a law is missing, the EU law on protection will be applied. Scanfil
does not have an active plan to create a policy for extra protection.
4.1.3 Management of
relationships with suppliers
The suppliers of raw materials and components are handled by global and
local sourcing. Global sourcing is led by the Chief Procurement Officer.
Global sourcing is responsible for certain key components such as
semiconductors and other large volume materials. Local tactical sourcing
is responsible for components and materials with local significance and
lower volumes. All new suppliers and business partners must sign the
Supplier Code of Conduct. Among many other topics, it includes social
and environmental aspects of business operations. Audits and supplier
reviews are done as part of the initialization process of a new supplier
and/or business partner. Assessments and reviews are also done when
a concern or doubt of concern have been raised by internal or external
stakeholders. The company’s target is to know the origin, or at least
the country of manufacture, of all the key components and materials.
Scanfil has categorized its suppliers into approved, key suppliers, and
preferred. Scanfil evaluates the sustainability of its suppliers in the
initial approval process and key supplier follow-up process as one of
the key criteria. Guiding documents are supplier basic document and
the score card. The score card has 14 selection criteria of which one is
sustainability. A supplier needs to have a sustainability measurement
system in place. Scanfil recommends its partners to use the EcoVadis
platform and should receive over 45 points in the assessment to be
selected as a Scanfil business partner. Scanfil has no specific policy to
prevent late payments to its suppliers. Payment practices are described
in section 4.1.6.
4.1.4 Prevention and detection
of corruption and bribery
The Code of Conduct, which guides the ethics of Scanfil’s operations,
prohibits corruption and bribery in all forms. Scanfil is committed to anti-
corruption and anti-bribery in its own operations and in relation to its
partners. Prohibition is also included in the Supplier Code of Conduct.
Scanfil is assessing the risk of internal and external corruption. The
evaluation is performed on a regular basis taking into consideration the
local regulations, business performance practices, counterparts, and
cultural context. The risk assessment enables Scanfil to undertake the
needed preventive measures to limit exposure to corruption risks. The
risk assessment results are presented yearly to the Group Management
Team as part of the management review.
104
The following are the main measures for preventing and detecting
corruption and bribery:
• Anonymous whistleblowing channel accessible to all stakeholders.
•
Online and onsite trainings in the Code of Conduct and other policies
guiding Scanfil’s operations.
•
Assessment to ensure the sustainability of partners, and required
background checks defined in supplier basic document and score
card.
•
Continuous development of ethical operations in the supply chain
as part of supplier strategy development.
•
Four and six-eye principal in approval processes (Group Authorization
Manual)
The key measures in this respect include supplier commitment to the
Supplier Code of Conduct in line with the 2030 sustainability targets
and supplier audits and assessments. Completing the Code of Conduct
e-learning courses and in-person training, together with the anonymous
whistleblowing channel, aim to prevent corruption and bribery.
The initial phase of procedures to detect and address allegations and
incidents of corruption and bribery follows the same method as the
whistleblowing channel. All allegations are investigated as soon as they
become known to the company. The company can be made aware of
allegations through whistleblowing or other channels, e.g., email, phone,
information in the media, etc. Scanfil has a procedure for investigating all
allegations. The involvement of independent investigators is assessed
case by case. All claims exceeding the threshold of potential criminal
charges are reported to the authorities. Financially immaterial and local
allegations can be handled locally. Based on the Audit Committee’s
assessment, the Board of Directors will handle all financially material
allegations or allegations concerning the Group. It will make decisions
based on the recommendations of the General Counsel and possibly
an external advisor.
At-risk functions Managers Other white-collars
Training Coverage
Total 116 89 1,037
Total receiving training 70 50 647
Delivery method and duration
Computer based training 1 hour 1 hour 1 hour
Frequency
How often training is required Annually Annually Annually
Topics covered
Compliance X X X
Conflict of interest X X X
Anti-corruption and Anti-competitive X X X
Reporting of violations X X X
Neither the person investigated, nor their supervisor participate in
the investigation of the breach or suspected breach. If called for by
the significance of the breach under investigation, the Chief People
Officer involves the General Counsel who reports the incident to the
Group Management Team and the Board of Directors at a regular
meeting, or immediately if required. The cases are divided into the
following categories: 1. Fraud or other criminal behavior 2. Corruption and
bribery 3. Competition law 4. Conflicts of interest 5. Employee matters
6. Discrimination 7. Privacy and information security 8. Occupational
safety 9. Environment 10. Breaches of the Supplier Code of Conduct,
and 11. Other reports.
The Supplier Code of Conduct and all policies are available to all
employees on the Scanfil Management System. Scanfil has ensured that
all employees understand the implications through online training. Scanfil
employees handling business relations with suppliers and customers
have been trained to explain to their counterparts the implications of the
Supplier Code of Conduct, which is also accessible online.
Scanfil’s training activities in 2024 are described in the table. Sales and
Procurement are considered at-risk functions and represent 4% of all
employees and 16% of white-collar employees.
105
4.1.5 Incidents of corruption or bribery
In 2024, Scanfil had no incidents of corruption or bribery, so the Group
had no related actions or fines.
4.1.6 Payment practices
The standard payment term in the new supplier instruction form instructs
a minimum of 30 days net. However, this can be reconsidered individually
for example if the supplier is a small company or for another reason.
In many operating countries e.g. in Poland and Finland local legislation
drives to pay invoices on time. Scanfil does not have statistics on the
percentage of payments executed according to standard payment
terms. In 2024, Scanfil was not a party to any legal proceedings due
to late payments.
4.1.7 Entity specific - Disclosure
for Data Security
Data security is a critical component of Scanfil’s operations. The Group
is committed to responsible and secure business practices. It prioritizes
the protection of customer, partner, and employee data. The Group’s
approach to data security aligns with industry best practices, regulatory
requirements, and the evolving cybersecurity landscape.
Data security is overseen by the ICT Director, who reports to the Chief
Development Officer. The Chief Development Officer ensures that
data security initiatives are integrated into the Group’s development
strategy, while oversight and strategic direction are provided by the
CEO together with the Group Management Team, which communicates
regularly with the Board.
Scanfil’s IT/IS Security Policy (Security Policy) aims to guide and increase
awareness of the importance of secure practices. The policy is available
on the intranet. It is designed to prevent unauthorized access, breaches,
and data loss. The policy covers areas such as encryption standards,
network security, and incident response. Security Policy is reviewed as
needed following emerging threats and legal requirements.
The Group conducts regular assessments of data security risks, both
internal and external. These assessments help to identify vulnerabilities
and enhance our mitigation strategies. Key areas of focus include
protection against cyber-attacks and data breaches as well as ensuring
the security of the upstream value chain. In addition, Scanfil uses external
24/7 security service providers to monitor, prevent and control cyber
security threats. Other external partners can also be used, if necessary.
Employees across all levels are provided with training in data security
practices. This includes phishing prevention, secure data handling, and
incident reporting protocols. Our goal is to foster a culture of security
awareness, minimizing human error and strengthening our security
posture. Scanfil uses an e-learning tool and monthly cyber security
bulletin to educate all its employees.
Scanfil maintains an incident response plan, which enables the company
to respond rapidly to potential data and security breaches. Possible
breaches are detected with continuous screening and reporting. All
incidents are tracked, and root-cause analyses are conducted to prevent
future occurrences. Relevant incidents and findings are reported to the
Group Management Team and the Board of Directors. Depending on
the severity of the data security issue, it can also be subject to customer
communications or other communications. Scanfil can also report
and ask for the assistance of authorities and file a criminal report of a
possible issue.
Scanfil adheres to global and regional data protection regulations,
including the General Data Protection Regulation (GDPR) and other
applicable data privacy laws. Two companies regularly assess
Scanfil’s data security. Both companies have ranked Scanfil with
high scores. Scanfil continuously develops its data security based on
recommendations and best practices.
In 2024, Scanfil had four data breach events, all of which were
investigated. Impacts were limited to compromised email addresses.
When the data breach was detected, all persons and companies whose
information was compromised were informed. As a result of these
events, no effects have come to the company’s attention. The Chief
Development Officer leads data breach processes.
Scanfil does not capitalize costs related to data security thus; all
its expenses are operational expenses. In 2024, the company had
approximately EUR 0.9 million in cyber security costs. Scanfil expects
its cyber security costs to increase by approximately 40% in 2025. Over
80% of the costs are related to services and solutions.
106
The following are addressed by incorporated references to other parts
of the Board of Directors’ report or external documents:
• Statement on due diligence
• Material impacts, risks and opportunities, and their interaction with
the strategy and business model
Scanfil has concluded that water and marine resources, biodiversity and
ecosystems, affected communities and consumers and end-users are
not material topics and therefore omit all the disclosure requirements
in the corresponding topical ESRS.
Appendix
Disclosures incorporated by reference
ES RS Topic Conclusion of the Double Materiality Assessment
Water and marine resources Scanfil is not a large consumer of water. The manufacturing processes use a moderate amount of water, indicating that water usage is
not a significant part of operations. Moreover, Scanfil’s operations have a low impact on water discharges into the ocean, suggesting
that the activities do not significantly affect marine resources. Upstream suppliers need water in their processes, but Scanfil does not
measure this consumption. Although Scanfil believes in taking responsibility for water consumption, the overall impact and usage are
relatively low, making it less material compared to other resources or environmental factors.
Scanfil’s operations have a limited impact on marine resources as there are no industrial discharges, chemical spills, or improper
waste disposal that can contaminate marine ecosystems. Scanfil has an impact on climate change, but this is handled in other
environmental reporting topics. Regarding shipping, Scanfil uses vessels for shipping but has no direct impact on operations. The
company has no direct activities in mining, oil drilling, or deep-sea mining that could affect marine ecosystems directly. Since Scanfil
does not produce any plastics, it does not contribute to ocean pollution.
Biodiversity and ecosystems Scanfil's operations have a minimal impact on biodiversity and ecosystems. The company does not engage in activities that affect
forests, grasslands, wetlands, or agricultural areas. Land use is limited to factory expansions in controlled zones, ensuring minimal
disruption, and pollution from operations is minor, resulting in low impact on dams, water diversions, and withdrawals for agriculture
and industry. Freshwater habitats such as rivers, lakes, and wetlands remain undisturbed, and there are no activities related to oceans.
Emissions from factories are minimal, leading to a low impact on biodiversity
Affected communities Scanfil respects the civiland political rights different communitie by operating in environments where these rights are upheld. The
company mitigates legal and reputational risks, avoiding costly litigation and damage control efforts. Although a stable political
climates fosters economic growth, and healthier populations and cultures provide the business with more reliable markets and
investment opportunities, the topical ESRS does not currently reach the threshold level of materiality for Scanfil. B2B contract
manufacturers like Scanfil, without product ownership, typically have limited direct interaction with indigenous communities. Scanfil’s
focus lies in fulfilling customer orders, often involving indirect supply chains. As such, Scanfil is less directly concerned with specific
indigenous rights. While ethical business practices are essential, the specific challenges and opportunities related to indigenous
rights are more relevant to companies directly involved in resource extraction, operating in specific regions, or having direct
community relationships. For Scanfil as a contract manufacturer, the primary concern is the production of goods according to specific
customer requirements. This focus is on the technical aspects of manufacturing, quality control, and timely delivery, rather than
broader social and ethical considerations like indigenous rights.
Consumers and end-users Scanfil as a contract manufacturer, produces products according to customer specifications and does not often have direct contact
with end users. Scanfil is not involved in the design phase of the manufactured products and has no market monitoring or deeper
knowledge of the intended use of the products. Should any safety risks for consumers and end users be discovered based on the
information Scanfil has, the company will inform its customers about this. As such, the influence on social inclusion initiatives is
limited.
107
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation
(EU)2020/1816(27), AnnexII
p. 22
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)2020/1816, AnnexII p. 22
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10 Table #3 of Annex 1 p. 24
ESRS 2 SBM-1
Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4 Table #1 of Annex 1 Article449a Regulation (EU) No575/2013;
Commission Implementing Regulation
(EU)2022/2453(28)Table 1: Qualitative
information on Environmental risk and Table 2:
Qualitative information on social risk
Delegated Regulation (EU)2020/1816, AnnexII Not material
ESRS 2 SBM-1
Involvement in activities related to chemical
production paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU)2020/1816, AnnexII Not material
ESRS 2 SBM-1
Involvement in activities related to controversial
weapons paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU)2020/1818(29),
Article12(1) Delegated Regulation (EU)2020/1816,
AnnexII
Not material
ESRS 2 SBM-1
Involvement in activities related to cultivation and
production of tobacco paragraph 40 (d) iv
Delegated Regulation (EU)2020/1818, Article12(1)
Delegated Regulation (EU)2020/1816, AnnexII
Not material
ESRS E1-1
Transition plan to reach climate neutrality by 2050
paragraph 14
Regulation (EU)2021/1119, Article2(1) p. 63
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article449a
Regulation (EU) No575/2013; Commission
Implementing Regulation (EU)2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU)2020/1818, Article12.1
(d) to (g), and Article12.2
p. 63
108
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS E1-4
GHG emission reduction targets paragraph 34
Indicator number 4 Table #2 of Annex 1 Article449a
Regulation (EU) No575/2013; Commission
Implementing Regulation (EU)2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU)2020/1818, Article6 p. 68-69
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors) paragraph 38
Indicator number 5 Table #1 and indicator
number5 Table #2 of Annex 1
p. 70-71
ESRS E1-5
Energy consumption and mix paragraph 37
Indicator number 5 Table #1 of Annex 1 p. 70-71
ESRS E1-5
Energy intensity associated with activities in high
climate impact sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1 p. 71
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number 1 and2 Table #1 of Annex 1 Article449a; Regulation (EU) No575/2013;
Commission Implementing Regulation
(EU)2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality of
exposures by sector, emissions and residual
maturity
Delegated Regulation (EU)2020/1818, Article5(1),
6 and8(1)
p. 74
ESRS E1-6
Gross GHG emissions intensity paragraphs 53
to 55
Indicators number 3 Table #1 of Annex 1 Article449a Regulation (EU) No575/2013;
Commission Implementing Regulation
(EU)2022/2453 Template 3: Banking book –
Climate change transition risk: alignment metrics
Delegated Regulation (EU)2020/1818, Article8(1) p. 75
ESRS E1-7
GHG removals and carbon credits paragraph 56
Regulation (EU)2021/1119, Article2(1) p. 75
ESRS E1-9
Exposure of the benchmark portfolio to climate-
related physical risks paragraph 66
Delegated Regulation (EU)2020/1818, AnnexII
Delegated Regulation (EU)2020/1816, AnnexII
Not material
ESRS E1-9
Disaggregation of monetary amounts by acute
and chronic physical risk paragraph 66 (a)
Article449a Regulation (EU) No575/2013;
Commission Implementing Regulation
(EU)2022/2453 paragraphs 46 and47; Template
5: Banking book - Climate change physical risk:
Exposures subject to physical risk.
Not material
109
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS E1-9
Location of significant assets at material physical
risk paragraph 66 (c).
Not material
ESRS E1-9
Breakdown of the carrying value of its real estate
assets by energy-efficiency classes paragraph
67 (c).
Article449a Regulation (EU) No575/2013;
Commission Implementing Regulation
(EU)2022/2453 paragraph 34;Template 2:Banking
book -Climate change transition risk: Loans
collateralized by immovable property - Energy
efficiency of the collateral
Not material
ESRS E1-9
Degree of exposure of the portfolio to climate-
related opportunities paragraph 69
Delegated Regulation (EU)2020/1818, AnnexII Not material
ESRS E2-4
Amount of each pollutant listed in AnnexII of the
E-PRTR Regulation (European Pollutant Release
and Transfer Register) emitted to air, water and
soil, paragraph 28
Indicator number 8 Table #1 of Annex 1 Indicator
number 2 Table #2 of Annex 1 Indicator number 1
Table #2 of Annex 1 Indicator number 3 Table #2
of Annex 1
Not material
ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7 Table #2 of Annex 1 Not material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex 1 Not material
ESRS E3-1
Sustainable oceans and seas paragraph 14
Indicator number 12 Table #2 of Annex 1 Not material
ESRS E3-4
Total water recycled and reused paragraph 28 (c)
Indicator number 6.2 Table #2 of Annex 1 Not material
ESRS E3-4
Total water consumption in m3per net revenue
on own operations paragraph 29
Indicator number 6.1 Table #2 of Annex 1 Not material
ESRS 2- SBM 3 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material
ESRS 2- SBM 3 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material
ESRS 2- SBM 3 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material
110
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS E4-2
Sustainable land / agriculture practices or policies
paragraph 24 (b)
Indicator number 11 Table #2 of Annex 1 Not material
ESRS E4-2
Sustainable oceans / seas practices or policies
paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1 Not material
ESRS E4-2
Policies to address deforestation paragraph 24 (d)
Indicator number 15 Table #2 of Annex 1 Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of Annex 1 p. 83-84
ESRS E5-5
Hazardous waste and radioactive waste
paragraph 39
Indicator number 9 Table #1 of Annex 1 p. 83-84
ESRS 2- SBM3 - S1
Risk of incidents of forced labor paragraph 14 (f)
Indicator number 13 Table #3 of AnnexI p. 39-41
ESRS 2- SBM3 - S1
Risk of incidents of child labor paragraph 14 (g)
Indicator number 12 Table #3 of AnnexI p. 39-41
ESRS S1-1
Human rights policy commitments paragraph 20
Indicator number 9 Table #3 and Indicator number
11 Table #1 of AnnexI
p. 85-87
ESRS S1-1
Due diligence policies on issues addressed by
the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation (EU)2020/1816, AnnexII p. 85-87
ESRS S1-1
Processes and measures for preventing trafficking
in human beings paragraph 22
Indicator number 11 Table #3 of AnnexI p. 85-87
ESRS S1-1
Workplace accident prevention policy or
management system paragraph 23
Indicator number 1 Table #3 of AnnexI p. 85-87
ESRS S1-3
Grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 5 Table #3 of AnnexI p. 89
111
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS S1-14
Number of fatalities and number and rate of work-
related accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of AnnexI Delegated Regulation (EU)2020/1816, AnnexII p. 95
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3 Table #3 of AnnexI p. 95
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12 Table #1 of AnnexI Delegated Regulation (EU)2020/1816, AnnexII p. 95
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of AnnexI p. 95
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
Indicator number 7 Table #3 of AnnexI p. 96
ESRS S1-17
Non-respect of UNGPs on Business and Human
Rights and OECD Guidelines paragraph 104 (a)
Indicator number 10 Table #1 and Indicator n.14
Table #3 of AnnexI
Delegated Regulation (EU)2020/1816, AnnexII
Delegated Regulation (EU)2020/1818 Art 12 (1)
p. 96
ESRS 2- SBM3 – S2
Significant risk of child labor or forced labor in the
value chain paragraph 11 (b)
Indicators number 12 and n.13 Table #3 of AnnexI p. 41
ESRS S2-1
Human rights policy commitments paragraph 17
Indicator number 9 Table #3 and Indicator n.11
Table #1 of Annex 1
p. 97
ESRS S2-1
Policies related to value chain workers paragraph
18
Indicator number 11 and n.4 Table #3 of Annex 1 p. 97
ESRS S2-1
Non-respect of UNGPs on Business and Human
Rights principles and OECD guidelines paragraph
19
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU)2020/1816, AnnexII
Delegated Regulation (EU)2020/1818, Art 12 (1)
p. 97
ESRS S2-1
Due diligence policies on issues addressed by
the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU)2020/1816, AnnexII p. 97
112
Disclosure Requirement and related datapoint SFDRreference Pillar 3reference Benchmark Regulation reference EU Climate Law reference Page #
ESRS S2-4
Human rights issues and incidents connected
to its upstream and downstream value chain
paragraph 36
Indicator number 14 Table #3 of Annex 1 p. 99-100
ESRS S3-1
Human rights policy commitments paragraph 16
Indicator number 9 Table #3 of Annex 1 and
Indicator number 11 Table #1 of Annex 1
Not material
ESRS S3-1
Non-respect of UNGPs on Business and Human
Rights, ILO principles or OECD guidelines
paragraph 17
Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU)2020/1816, AnnexII
Delegated Regulation (EU)2020/1818, Art 12 (1)
Not material
ESRS S3-4
Human rights issues and incidents paragraph 36
Indicator number 14 Table #3 of Annex 1 Not material
ESRS S4-1
Policies related to consumers and end-users
paragraph 16
Indicator number 9 Table #3 and Indicator number
11 Table #1 of Annex 1
Not material
ESRS S4-1
Non-respect of UNGPs on Business and Human
Rights and OECD guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU)2020/1816, AnnexII
Delegated Regulation (EU)2020/1818, Art 12 (1)
Not material
ESRS S4-4
Human rights issues and incidents paragraph 35
Indicator number 14 Table #3 of Annex 1 Not material
ESRS G1-1
United Nations Convention against Corruption
paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1 p. 102-103
ESRS G1-1
Protection of whistle- blowers paragraph 10 (d)
Indicator number 6 Table #3 of Annex 1 p. 102-103
ESRS G1-4
Fines for violation of anti-corruption and anti-
bribery laws paragraph 24 (a)
Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU)2020/1816, AnnexII) p. 105
ESRS G1-4
Standards of anti- corruption and anti- bribery
paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1 p. 105
Scanfil has not identified any legislation, standard or framework requiring the company to disclose other information in addition to the requirements prescribed in ESRS.
113
1 - Rare
1 - Minor
2 - Moderate
3 - High
4 - Very High
5 - Major
2 - Low 3 - Possible 4 - Likely
LIKELIHOOD
SIZE OF FINANCIAL EFFECT
5 - Almost
certain
Threshold OpportunitiesRisk
Financial materiality
1 - Rare
0
1
2
3
4
5
Threshold if unrelated to human rights Threshold if human rights-related
Positive impactNegative impact
2 - Low 3 - Possible 4 - Likely
LIKELIHOOD
SEVERITY
5 - Almost
certain
Actual
Impact materiality
Scoring and threshold methodology for financial and impact materiality
114
ES RS Topic Metric Level of accuracy for activity data
Level of accuracy for
environmental data
E1-4 GHG targets for Scope 3 High Medium
E1-6 Scope 3.1 High Medium
E1-6 Scope 3.2 High Medium
E1-6 Scope 3.3 High Medium
E1-6 Scope 3.4 High Medium
E1-6 Scope 3.5 High Medium
E1-6 Scope 3.6 High Medium
E1-6 Scope 3.7 Medium Medium
E1-6 Scope 3.11 Low Medium
E1-6 GHG intensity High Medium
E5-4 Resource inflow Medium N/A
E5-4 Secondary material Low N/A
S2-5 #No. EcoVadis assessment High N/A
S2-5 #No. Signed Supplier Code of Conduct High N/A
The level of data accuracy for environmental and social data
115
CONSOLIDATED FINANCIAL STATEMENT, IFRS
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Turnover 1.1 779,912 901,564
Other operating income 1.2 1,159 861
Changes in inventories of finished goods
and work in progress
-3,098 -275
Use of materials and supplies 1.3 -522,784 -631,601
Employee benefit expenses 1.4 -122,929 -120,845
Depreciation and amortisation 3.5 -21,110 -19,104
Other operating expenses 1.5 -58,572 -69,285
Operating profit 52,578 61,314
Financial income 4.2 1,219 4,013
Financial expense 4.2 -2,715 -3,713
Profit before tax 51,081 61,614
Income tax 1.6 -12,475 -13,399
Net profit for the period 38,606 48,215
Attributable to:
The parent company owners 38,606 48,215
Earnings per share calculated on the profit attributable
to shareholders of the parent company:
undiluted earnings per share 1.7 0.59 0.74
diluted earnings per share 1.7 0.59 0.74
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Net profit for the period 38,606 48,215
Other comprehensive income
Items that may later be recognised in profit or loss
Translation differences 4.8 2,087 2,972
Cash flow hedges 4.8 -970 -35
Other comprehensive income, net of tax 1,117 2,937
Total comprehensive income 39,724 51,152
Total comprehensive income attributable to:
The parent company owners 39,724 51,152
Consolidated Income Statement Consolidated Statement of Comprehensive Income
116
EUR THOUSAND Note 31.12.2024 31.12.2023
ASSETS
Non-current assets
Property, plant and equipment 3.3 68,374 62,697
Right-of-use-assets 3.4 26,532 22,616
Goodwill 3.1 29,113 7,678
Other intangible assets 3.2 19,997 10,391
Other investments 4.6 518 529
Deferred tax assets 1.6 7,700 7,694
Current assets
Inventories 2.2 168,103 209,003
Trade and other receivables 2.3 165,353 173,504
Advance payments 655 923
Current tax 4,173 1,770
Cash and cash equivalents 4.1 48,534 21,222
Total assets 539,051 518,027
EUR THOUSAND Note 31.12.2024 31.12.2023
EQUITY AND LIABILITIES
Shareholder's equity and liabilities 4.8
Share capital 2,000 2,000
Reserve for invested unrestricted equity fund 33,290 34,806
Fair Value Reserve -46 924
Other reserves 2,650 2,650
Translation differences -2,500 -4,588
Retained earnings 255,643 230,246
Total equity 291,036 266,038
Non-current liabilities
Provisions 5.1 1,788 1,105
Interest bearing liabilities 4.3 20,000 0
Non-interest bearing liabilities 4.3 10,314 0
Lease liabilities 4.3 21,863 18,606
Deferred tax liabilities 1.6 9,650 5,703
Current liabilities
Trade and other liabilities 2.4 153,748 166,750
Current tax 2,088 4,886
Provisions 5.1 693 578
Interest bearing liabilities 4.3 22,749 50,413
Lease liabilities 4.3 5,123 3,948
Total liabilities 248,015 251,989
Total shareholder's equity and liabilities 539,051 518,027
Consolidated Statement of Financial Position
117
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Cash flow from operating activities
Net profit 38,606 48,215
Adjustments for the net profit
Transactions without payment:
Change in provisions 772 413
Capital gain / loss for fixed assets -349 -16
Exchange rate differences 425 2,518
Other adjustments 247 540
Depreciation and amortisation 21,110 19,104
Financial income -1,219 -3,959
Financial expenses 2,441 3,659
Taxes 12,495 13,391
Change in net working capital:
Change in accounts receivable and other receivables 13,990 -6,491
Change in inventories 50,415 24,002
Change in accounts payable and other liabilities -28,159 -20,078
Change in net working capital total 36,246 -2,566
Paid interests -2,130 -3,644
Interest received 951 493
Taxes paid -17,479 -9,212
Net cash from operating activities 92,116 68,936
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Cash flow from investing activities
Net cash from acquisition 3.6 -22,296 0
Investments in tangible and intangible assets 3.2, 3.3 -15,654 -22,168
Sale of tangible and intangible assets 349 258
Net cash from investing activities -37,601 -21,909
Cash flow from financing activities
Share subscriptions based on stock options 1.4 0 1,381
Repayment of short-term loans -2,172 −23,994
Repayment of long-term loans −6,000 −6,000
Repayment of lease liabilities -4,448 −4,185
Paid dividends -14,994 −13,621
Net cash from financing activities -27,615 −46,419
Net increase/decrease in cash and cash equivalents 26,900 608
Cash and cash equivalents at beginning of period 21,222 20,779
Changes in exchange rates 411 -165
Cash and cash equivalents at end of period 48,534 21,222
Consolidated Statement of Cash Flow
118
Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR THOUSAND Note
Share
capital
Reserve for
invested
unrestricted
equity fund
Fair
value
reserve
Other
reserves
Translation
differ-
ences
Retained
earnings
Equity
total
Equity 1.1.2024 2,000 34,806 924 2,650 -4,588 230,246 266,038
Comprehensive income
Net profit for the period 38,606 38,606
Other comprehensive income
(net of tax)
Translation differences 4.8 2,087 2,087
Cash flow hedges 4.5, 4.8 −970 −970
Total comprehensive income −970 2,087 38,606 39,724
Transactions with owners
Option Scheme 268 268
Paid dividends −14,994 −14,994
Share options exercised* −1,516 1,516 0
Equity 31.12.2024 2,000 33,290 −46 2,650 −2,500 255,643 291,036
Equity attributable to equity holders of the parent company
EUR THOUSAND Note
Share
capital
Reserve for
invested
unrestricted
equity fund
Fair
value
reserve
Other
reserves
Translation
differ-
ences
Retained
earnings
Equity
total
Equity 1.1.2023 2,000 33,425 959 2,650 -7,560 195,120 226,594
Comprehensive income
Net profit for the period 48,215 48,215
Other comprehensive income
(net of tax)
Translation differences 4.8 2,972 2,972
Cash flow hedges 4.5, 4.8 -35 -35
Total comprehensive income -35 2,972 48,215 51,152
Transactions with owners
Option Scheme 532 532
Paid dividends -13,621 -13,621
Share options exercised 1,381 1,381
Equity 31.12.2023 2,000 34,806 924 2,650 -4,588 230,246 266,038
* 1.1.2024 The cumulative effect of entries related to exercised share options has been reclassified
as retained earnings from the reserve for invested unrestricted equity fund.
119
120
121
122
1. ITEMS AFFECTING THE RESULT
123
124
125
126
127
128
129
130
131
2. NET WORKING CAPITAL
132
133
134
3. NON-CURRENT ASSETS
135
136
137
138
139
140
141
142
4. CAPITAL STRUCTURE
143
144
145
146
147
2023
148
149
150
151
152
5. OTHER NOTES
153
154
PARENT COMPANY FINANCIAL STATEMENTS, FAS
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Other operating income 2,724 2,466
Personnel expenses 1
Wages, salaries and fees -1,939 -2,349
Pensions and statutory indirect employee costs
Pensions -377 -396
Statutory indirect employee costs -150 -113
Personnel expenses total -2,466 -2,858
Depreciation and reduction in value
Depreciation according to plan 3 -102 -77
Depreciation and reduction in value total -102 -77
Other operating expenses 2 -1,930 -1,292
Operating profit -1,773 -1,761
Financial income and expenses
Financial income from Group 25,000 6,000
Other interest and financial income
From Group 2,564 6,215
From other 3,078 3,998
Interest expenses and financial expenses
To Group -2,249 -1,680
To other -2,374 -2,562
Financial income and expenses total 26,019 11,972
EUR THOUSAND Note 1.1.-31.12.2024 1.1.-31.12.2023
Profit before appropriations and taxes 24,246 10,211
Appropriations
Depreciation difference increase 5
Appropriations total 5
Profit before tax 24,246 10,215
Income taxes 4
Income taxes -7 -813
Taxes for previous years -35 0
Deferred taxes 155
Income taxes total 113 -813
Net profit for the period 24,359 9,403
Parent Company Income Statement
155
EUR THOUSAND Note 31.12.2024 31.12.2023
ASSETS
Non-current assets
Intangible assets 5
Immaterial rights 0 2
Other non-current assets 222 239
Advance payments and contracts in progress 4
Intangible assets total 226 241
Tangible assets 6
Plant and equipment 6 21
Other tangible assets 17 17
Advance payments and construction in progress 32
Tangible assets total 23 69
Investments
Holdings in Group companies 7 119,831 68,535
Investments total 119,831 68,535
EUR THOUSAND Note 31.12.2024 31.12.2023
Total non-current assets 120,080 68,846
ASSETS
Current assets
Long-term receivables
Loan receivables from Group companies 8 13,125 25,370
Deferred tax assets 155
Long-term receivables total 13,280 25,370
Short-term receivables
Receivables from Group companies 8 22,826 42,529
Accrued income 1,600 2,444
Short-term receivables total 24,426 44,974
Cash and cash equivalents 9 27,705 6,173
Total current assets 65,412 76,516
Total assets 185,492 145,362
Parent Company Balance Sheet
156
EUR THOUSAND Note 31.12.2024 31.12.2023
SHAREHOLDER’S EQUITY AND LIABILITIES
Equity
Share capital 10 2,000 2,000
Other reserves
Fair value reserve 68 841
Reserve for invested unrestricted equity fund 33,633 35,150
Retained earnings 12,315 16,391
Profit for the period 24,359 9,403
Total Equity 72,376 63,784
EUR THOUSAND Note 31.12.2024 31.12.2023
Liabilities
Non-current liabilities
Financing loans 11 20,000 0
Conditional additional purchase price 11,195 0
Deferred tax liabilities 17 210
Non-current liabilities total 31,212 210
Current liabilities
Financing loans 12 10,000 36,000
Trade liabilities 159 93
Liabilities to group companies 13 70,619 43,847
Other creditors 89,842 152
Accrued liabilities 14 1,036 1,276
Current liabilities total 81,903 81,367
Total liabilities 113,116 81,577
Total equity and liabilities 185,492 145,362
Parent Company Balance Sheet
157
Parent Company Cash Flow Statement
EUR THOUSAND 1.1.-31.12.2024 1.1.-31.12.2023
Cash flow from operating activities
Profit for the period 24,359 9,403
Adjustments
Depreciation according to plan 102 77
Financial income and expenses -26,245 -11,972
Other income and expenses without payment
Deferred taxes −113 808
Exchange rate differences 579 2,055
Changes in working capital
Inc(-)/dec(+) in short-term non-interest bearing receivables 171 -1,106
Inc(+)/dec(-) in short-term non-interest-bearing liabilities -633 538
Interest received from other financial revenues 3,034 4,975
Interest paid -2,113 -2,657
Taxes paid -306 -1,032
Net cash flow from operating activities -1,165 1,089
Cash flow from investing activities
Investments in tangible and intangible assets -69 -73
Investments in subsidiary shares -40,289
Received loan payments 18,283 18,523
Received dividends 25,000 6,000
Net cash flow from investing activities 2,926 24,450
EUR THOUSAND 1.1.-31.12.2024 1.1.-31.12.2023
Cash flow from financing activities
Related party investments to company shares 1,381
Changes in Group financing 40,766 -1,127
Repayment of long-term loans -6,000 -6,000
Dividends paid -14,994 -13,621
Net cash flow from financing activities 19,772 -19,367
Net increase/decrease in cash and cash equivalents 21,533 6,172
Cash and cash equivalents Jan 1. 6,173 1
Cash and cash equivalents Dec 31. 27,705 6,173
Changes in Group financing are presented net and related to the Group's Cash pool.
158
NOTES TO FINANCIAL STATEMENTS, FAS
The parent company’s accounting principles
Scanfil plc is a Finland-based public limited company domiciled in Sievi. The company’s shares are quoted on the Main List of
Nasdaq Helsinki Ltd. The financial statements of Scanfil plc have been prepared in accordance with the Finnish Accounting
Act and other legislation and regulations in force in Finland.
In September 2023, Scanfil Oyj opened a Permanent Establishment in Sweden. The accounts of Scanfil Oyj's Stockholm branch
will be integrated into the accounting records of the parent company.
MEASUREMENT AND RECOGNITION PRINCIPLES AND METHODS
Fixed assets
Fixed assets are measured at historical cost less accumulated depreciation and impairment. Depreciation is calculated on a
straight-line basis over the expected useful lives of the assets.
The depreciation periods for fixed assets are as follows:
Intellectual property rights 5 years
Other long-term expenses 5 years
Machinery and equipment 3–5 years
Subsidiary company shares
Shares in subsidiaries have been measured at the acquisition cost, which is adjusted by impairment if the future returns on
the investment are expected to be permanently lower than the acquisition cost.
Financial instruments
Financial assets and liabilities are measured at the lower of cost and probable realisable value.
The group’s bank account system
The assets and liabilities of the subsidiaries included in Scanfil plc’s group account systems are shown as offset at Scanfil plc,
either as cash and bank receivables or as short-term financial liabilities and short-term receivables from group companies or
as short-term debts to group companies.
Derivative contracts and hedge accounting
Section 5:2a of the Act on Foreign Exchange Derivatives is applied to currency derivatives, in which changes in the fair value
of currency derivatives are recorded in the fair value reserve for equity less deferred tax liabilities. Accounting principles are
found from Group note "4.5 Derivative financial instruments and hedge accounting".
Turnover
The parent company’s operations consist of group functions, and income from the sale of services is presented as turnover.
Pension costs are based on defined contribution schemes. Management’s employee benefits are reported in note 18.
EUR THOUSAND 2024 2023
Salaries, wages and fees 1,939 2,349
Pension costs 377 396
Other indirect employee expenses 150 113
Total 2,466 2,858
Fringe benefits (taxable value) 29 1,435
AVERAGE NUMBER OF EMPLOYEES DURING THE PERIOD 2024 2023
Clerical employees 12 13
Total 12 13
1. Personnel expenses
Share-based rewards and options
Option rights are valued at their fair value at the time they were granted and recognised as an expense in the income statement
under employee benefits in equal portions during the vesting period. When option rights are exercised, proceeds from share
subscriptions, adjusted with potential transaction costs, are entered under equity. Detailed accounting principles are found
from Group note "1.4 Employee benefit expenses".
Pension costs
The pension cover of employees is provided by pension insurance companies. Pension expenses are recognised as expenses
for the year during which they are accrued.
Foreign currency items
Foreign currency-denominated transactions are recognised during the financial period using the exchange rates on the
transaction date. Any foreign currency-denominated balance sheet items remaining outstanding on the closing date are
measured at the exchange rate valid on the closing date.
Taxes
Income taxes have been recorded in accordance with Finnish tax legislation. A deferred tax liability or asset is calculated
on temporary differences between accounting and taxation of assets and liabilities at the established tax rate. Deferred tax
liabilities are recognised in full. Deferred tax assets are recognised only when it is probable that the receivable can be utilised
against taxable profit in future periods.
159
Other operating costs mainly consist of legal and consultation expenses, travelling expenses and statutory expenses of a listed company.
EUR THOUSAND 2024 2023
Other operating expenses 1,930 1,292
Total 1,930 1,292
2. Other operating expenses
AUDITOR’S REMUNERATION, EUR THOUSAND 2024 2023
Auditor's remunerations of the Chartered Accountants 151 70
Sustainability assurance 70
Auditor's statements 10
Tax advisor 27
Total 221 106
3. Depreciation and amortisation
DEPRECIATION BY ASSET CLASS, EUR THOUSAND 2024 2023
Intangible assets
Intangible rights 2 2
Other long-term expenses 84 60
Tangible assets
Plant and equipment 15 15
Total 102 77
Total depriciation 102 77
4. Income taxes
EUR THOUSAND 2024 2023
Income taxes from actual operations 7 813
Income taxes from previous years 35 0
Change in deferred taxes -155
Total -113 813
Deferred taxes re recognised on currency derivatives under layered hedging program adjusting the fair value reserve on
shareholders equity. In the financial year 2023, deferred tax liabilities were recognised for currency derivatives amounting to
EUR 210 (168) thousand.
160
EUR THOUSAND
Intangible
rights
Other long-term
expenses
Advance payments
and purchases in
progress
Intangible assets
total
Acquisition cost Jan 1, 2024 121 410 531
Additions 36 4 40
Transfers between accounts* 32 32
Acquisition cost Dec 31, 2024 121 477 4 602
Accumuled depricions Jan 1, 2024 -119 -171 -290
Depreciations -2 -84 -87
Accumuled depricions Dec 31, 2024 -121 -255 -376
Carrying amount Jan 1, 2024 2 239 241
Carrying amount Dec 31, 2024 0 222 4 226
EUR THOUSAND
Intangible
rights
Other long-term
expenses
Intangible assets
total
Acquisition cost Jan 1, 2023 121 235 356
Additions 41 41
Transfers between accounts 133 133
Acquisition cost Dec 31, 2023 121 410 531
Accumuled depricions Jan 1, 2023 -117 -111 -228
Depreciations -2 -60 -62
Accumuled depricions Dec 31, 2023 -119 -171 -290
Carrying amount Jan 1, 2023 4 124 129
Carrying amount Dec 31, 2023 2 239 241
5. Intangible assets 6. Tangible assets
EUR THOUSAND
Plant and
equipment
Other
tangible assets
Advanced
payments and
construction in
progress
Tangible assets
total
Acquisition cost Jan 1, 2024 76 17 32 124
Additions
Transfer between accounts* -32 -32
Acquisition cost Dec 31, 2024 76 17 0 92
Accumuled depricions Jan 1, 2024 -54 -54
Deprecions -15 -15
Accumuled depricions Dec 31, 2024 -69 -69
Carrying amount Jan 1, 2024 21 17 32 69
Carrying amount Dec 31, 2024 6 17 23
EUR THOUSAND
Plant and
equipment
Other
tangible assets
Advanced
payments and
construction in
progress
Tangible assets
total
Acquisition cost Jan 1, 2023 76 17 133 225
Additions 32 32
Transfer between accounts -133 -133
Acquisition cost Dec 31, 2023 76 17 32 124
Accumuled depricions Jan 1, 2023 -39 -39
Deprecions -15 -15
Accumuled depricions Dec 31, 2023 -54 -54
Carrying amount Jan 1, 2023 36 17 133 186
Carrying amount Dec 31, 2023 21 17 32 69
*Transfer from tangible to intangible assets.
161
7. Holdings in Group companies
EUR THOUSAND 2024 2023
Total in the beginning of period 68,535 68,535
Scanfil Holding Germany GmbH, additions 17,000
SRXGlobal Pty Ltd, additions 34,296
Total at the end of period 119,831 68,535
Carrying amount at 31 Dec. 119,831 68,535
GROUP COMPANIES, EUR THOUSAND Domicile
Group
share %
Parent company
share %
Parent company
book value
Scanfil EMS Oy Finland 100 100 12,621
Scanfil Sweden AB Sweden 100 100 48,823
Scanfil Holding Germany GmbH Germany 100 100 24,091
SRXGlobal Pty Ltd Australia 100 100 34,296
Total 119,831
8. Receivables from Group companies
EUR THOUSAND 2024 2023
Long-term receivables
Loan receivables 13,125 25,370
Total 13,125 25,370
Short-term receivables
Prepayments and accrued income 504 377
Global Cash Pool receivables 4,623 18,325
Loan receivables 17,264 23,302
Other receivables 435 525
Total 22,826 42,529
Prepayments and accrued income
Interest income from group 504 377
Total 504 377
9. Cash and equivalent
EUR THOUSAND 2024 2023
Cash and bank balances 27,705 6,173
Total 27,705 6,173
162
10. Equity
11. Non-current and current liabilities
EUR THOUSAND 2024 2023
Non-current
Financial Institutions 20,000
Unpaid conditional purchase price of acquisitions 11,195
Current
Financial Institutions 10,000 36,000
Total 41,195 36,000
Interest-bearing liabilities will mature as follows:
Year 2024 36,000
Year 2025 10,000
Year 2026 21,195
Year 2027 10,000
Total 41,195 36,000
In 2019, Scanfil Plc raised a EUR 30 million long-term loan from Nordea Bank Abp, of which the last installment was paid on 27
September 2024. In addition, a EUR 30 million long-term loan that Scanfil Plc raised from Nordea Bank Abp in 2021 matured
on 15 November 2024. The loan was extended for three years, and the extended loan will be repaid in every six months by
EUR 5 million. The last installment of the loan is on 15 November 2027.
Scanfil Plc has Nordea’s Multicurrency Global Cash Pool available with an overdraft facility of EUR 50 million and SEB’s Liquidity
Optimisation facility available with an overdraft of EUR 30 million. In addition, a working capital facility of CNY 180 million
granted to subsidiary Scanfil (Suzhou) Co. Ltd. by Nordea Bank AB Shanghai Branch.
The Group’s financing arrangements include termination covenants related to the equity ratio and the ratio between interest-
bearing net liabilities and the operating margin. The terms of the covenants are monitored on a quarterly basis. The Group
fulfilled the covenant terms during the financial periods of 2024 and 2023.
EUR THOUSAND 2024 2023
Share capital
Share capital Jan 1. 2,000 2,000
Share capital Dec 31. 2,000 2,000
Fair Value Reserve 68 841
Total restricted shareholder's equity 2,068 2,841
Reserve for invested unrestricted equity fund
Reserve for invested unrestricted equity fund Jan 1. 35,150 33,768
Options 1,381
Transfer of disposal of own shares −1,516
Reserve for invested unrestricted equity fund Dec 31. 33,633 35,150
Retained earnings
Retained earning Jan 1. 25,793 30,011
Paid dividends -14,994 -13,621
Transfer of disposal of own shares 1,516
Retained earnings Dec 31. 12,315 16,391
Profit for the period 24,359 9,403
Total unrestricted equity 70,308 60,943
Total equity 72,376 63,784
Calculation of distributable funds Dec 31.
Reserve for invested unrestricted equity fund 33,633 35,150
Retained earnings 12,315 16,391
Profit for the period 24,359 9,403
Total 70,308 60,943
163
12. Liabilities to Group companies
EUR THOUSAND 2024 2023
Short-term liabilities to Group companies
Accounts payable 10 302
Other liabilities 70,609 43,544
Total 70,619 43,847
13. Accrued liabilities
EUR THOUSAND 2024 2023
The most significant items included in accrued liabilities
Employee expenses 547 1,083
Interests 126 11
Other accrued liabilities 364 181
Total 1,036 1,276
14. Commitments and contingencies
EUR THOUSAND 2024 2023
Guarantees given
On behalf of group company 150 150
Total 150 150
In addition, the following guarantees have been given:
Scanfil plc has given guarantees to Nordea Bank Abp as security for payment of the liabilities which Scanfil Sweden AB has
created from time to time towards Nordea Bank Abp on the basis of derivative contracts concluded, as well as to Skandinaviska
Enskilda Banken AB replacing the previous liabilities of Scanfil Sweden AB. The maximum liability to Skandinaviska Enskilda
Banken AB is EUR 3.6 million. Scanfil plc has provided a guarantee to Nordea Bank Abp as security for the performance and
payment of obligations under the derivative contracts concluded between Scanfil Electronics GmbH and Nordea Bank Abp.
Scanfil plc has given a guarantee for the lease obligations of its subsidiary Scanfil Inc their customer agreement obligations.
On behalf of the group companies may be given usual parent company guarantees from time to time as security for the
fulfillment of their customer agreement obligations.
15. Derivative contracts
INTEREST DERIVATIVES, EUR THOUSAND 2024 2023
Interest swap agreements, hedging
Fair value -132 104
Rated value of underlying asset 30,000 6,000
HEDGE ACCOUNTING, EUR THOUSAND 2024 2023
Forward exchange contracts, hedge accounting
Fair value 85 1,052
Rated value of underlying asset 36,525 30,408
Forward exchange contracts, outside of hedge accounting
Other liabilities 52
Rated value of underlying asset 17,157
The Group has a EUR 30.0 million loan maturing in 2027, which is hedged with an interest rate swap. The purpose of the
hedge is to offer protection against interest rate fluctuations related to the variable-rate loan. Based on the interest rate swap
agreement, Scanfil pays a fixed interest rate, and receives the variable Euribor 6-month interest rate set as the reference
interest rate for the hedged loan. The objective of the hedge is in accordance with the Group’s risk management principles.
The effectiveness of the hedge can be reliably measured, and the hedge is expected to remain fully effective throughout the
validity of the hedge. The terms are corresponding to each other, regarding the hedged item and the hedging instrument.
Effectiveness is quarterly evaluated and the hedge has remained effective. The impact of the derivative on results is expected
to materialise during the validity of the loan.
The fair value of the derivative was EUR 132 thousand, including accrued interest. The interest flows of the derivative occur
simultaneously with the interest flows of the loan.
In line with the International Accounting Standard, currency derivatives under a layered hedging programme are recognised in
accordance with their own the fair value reserve of capital adjusted for deferred tax. A fair value reserve is adjusted to earnings
when a currency derivative surrendered or due.
164
16. Other rental contracts
EUR THOUSAND 2024 2023
To be paid next accounting period 42 47
To be paid later 79 26
Total 122 73
Rent liabilities do not include VAT.
17. Management’s employment-related benefits
SALARIES AND OTHER SHORTTERM EMPLOYEE BENEFITS,
EUR THOUSAND 2024 2023
Salaries and bonuses of the President
Christophe Sut from 1.9.2023 358 116
Petteri Jokitalo until 31.8.2023 413
Shares and options, Petteri Jokitalo 1,111
Total salaries and bonuses of the President 358 1,640
*Taxable value of the benefit
Salaries and bonuses of the Board members
Harri Takanen 61 61
Bengt Engström 41 39
Christina Lindstedt 45 41
Juha Räisänen 50 46
Minna Yrjönmäki from 27.4.2023 44 26
Thomas Dekorsy from 27.4.2023 39 23
Total salaries of the Board Members 280 236
165
SIGNATURES TO THE BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
Financial Statement has been prepared in accordance with applicable accounting regulations, give a true and fair view of the assets, liabilities, fianancial position, and profit
of the company and the group of companies included in its consolidated financial statememnts.
The management report contains a truthful description of the development and result of the business operations of both the company and the group of companies included in
its consolidated financial statements, as well as a description of the most significant risks and uncertainties and other aspects of the company's condition.The sustainability
report included in the management report has been prepared in accordance with the reporting standards referred to in Chapter 7 and Article 8 of the Taxonomy Regulation.
Sievi, February 20, 2025
Harri Takanen Bengt Engström Minna Yrjönmäki Dr. Thomas Dekorsy
Chairman of the Board Member of the Board Member of the Board Member of the Board
Christina Lindstedt Juha Räisänen Christophe Sut
Member of the Board Member of the Board CEO
BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company’s distributable funds total EUR 70,308,241.25, including undistributed profits of EUR 36,674,749.71.The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 0.24 per share be paid, totalling EUR 15,645,901.20 for the financial year ending on December 31, 2024.
166
To the Annual General Meeting of Scanfil Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Scanfil Oyj (business identity
code 2422742-9) for the year ended 31 December, 2024. The financial
statements comprise the consolidated balance sheet, income statement,
statement of comprehensive income, statement of changes in equity,
statement of cash flows and notes, including material accounting policy
information, as well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
•
the consolidated financial statements give a true and fair view of the
group’s financial position, financial performance and cash flows in
accordance with IFRS Accounting Standards as adopted by the EU.
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in accordance
with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the
Audit Committee and Board of Directors.
AUDITOR’S REPORT
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies
in accordance with the ethical requirements that are applicable in Finland
and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that
we have provided to the parent company and group companies are in
compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit
services referred to in Article 5(1) of regulation (EU) 537/2014. The non-
audit services that we have provided have been disclosed in note 1.5 to
the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the
current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section
of our report, including in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the financial
statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit
opinion on the accompanying financial statements.
We have also addressed the risk of management override of internal
controls. This includes consideration of whether there was evidence
of management bias that represented a risk of material misstatement
due to fraud.
167
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition
We refer to the accounting principles for consolidated nancial statement and note 1.1.
In accordance with its accounting principles revenue is recognized when Scanfil satisfies performance
obligations in the contract either at a point in time or over the time for services. As the revenue of the
group consist mainly of the sale of products the revenue is recognized at a point in time when the
control is transferred to a customer in accordance with the terms and conditions of the agreement.
The Group focuses on revenue as a key performance measure which could create an incentive for
revenue to be recognized before the risks and rewards have been transferred. Revenue recognition
was determined to be a key audit matter and a significant risk of material misstatement referred to in
EU Regulation No 537/2014, point (c) of Article 10(2).
Our audit procedures to address the risk of material misstatement in respect of the revenue recogni-
tion included, among others:
•
assessment of the Group’s accounting policies over revenue recognition against applicable
accounting standards;
• gaining an understanding of the revenue recognition process including related accruals;
• data analytical procedures, for example, analyzing the conversion of revenue to cash received;
• familiarizing ourselves with the contractual terms in sales agreements;
• testing the revenue cut-off with analytical procedures and with a sample test of details on a transa-
ction level on either side of the balance sheet date; and
• assessment of the Group´s disclosures in respect of revenues.
Valuation of inventories
We refer to the accounting principles for consolidated nancial statement and note 2.2.
Inventories are valued at the lower of cost or net realizable value. Inventories are valued and presented
net of an impairment loss recognized for obsolete inventories. At the balance sheet date, the total value
of inventory and related provision for obsolete inventory amounted to 170.1 M€ and 2 M€ (net 168.1 M€).
Valuation of inventories was a key matter because the carrying value of inventories and related provi-
sions are material to the financial statements, and because valuation of inventories requires manage-
ment assessment relating to future sales and the level of provision for obsolete inventory.
Our audit procedures included, among others:
•
assessment of the Group’s accounting policies over inventory valuation against applicable
accounting standards;
• comparing unit prices of selected inventory items to latest purchase invoices and to sales prices;
• assessing the analyses and assessment made by management with respect to obsolete stock and
to the expected sales and net realizable value; and
• assessing the Group´s disclosures in respect of inventory.
168
Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible
for the preparation of consolidated financial statements that
give a true and fair view in accordance with IFRS Accounting
Standards as adopted by the EU, and of financial statements
that give a true and fair view in accordance with the laws and
regulations governing the preparation of financial statements
in Finland and comply with statutory requirements. The Board
of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to
enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and
the Managing Director are responsible for assessing the parent
company’s and the group’s ability to continue as going concern,
disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements
are prepared using the going concern basis of accounting unless
there is an intention to liquidate the parent company or the group or
cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of
internal control.
•
Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board of Directors’ and the
Managing Director’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt
on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the parent company
or the group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events so
that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities or
business units within the group as a basis for forming an opinion on
the group financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of
the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships
and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
169
Other Reporting Requirements
Information on our audit engagement
We were appointed as auditors by the Annual General Meeting with
effect from 25.4.2024.
Other information
The Board of Directors and the Managing Director are responsible for
the other information. The other information comprises the report of the
Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report
thereon. We have obtained the report of the Board of Directors prior to
the date of this auditor’s report, and the Annual Report is expected to
be made available to us after that date.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our responsibility
is to read the other information identified above and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. With respect to report of the Board
of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in compliance with
the applicable provisions, excluding the sustainability report information
on which there are provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors
is consistent with the information in the financial statements and the
report of the Board of Directors has been prepared in compliance with
the applicable provisions. Our opinion does not cover the sustainability
report information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we
obtained prior to the date of this auditor’s report, we conclude that there
is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki 24.2.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
170
To the Board of Directors of Scanfil Oyj
We have performed a reasonable assurance engagement on the financial
statements 7437004XD6U0FFDCT507-2024-12-31-fi.zip of Scanfil Oyj
(y-identifier: 2422742-9) that have been prepared in accordance with
the Commission’s regulatory technical standard for the financial year
ended 31.12.2024.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are responsible for the
preparation of the company’s report of Board of Directors and financial
statements (the ESEF financial statements) in such a way that they comply
with the requirements of the Commission’s regulatory technical standard.
This responsibility includes:
• preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission’s regulatory technical
standard
• tagging the primary financial statements, notes and company’s
identification data in the consolidated financial statements that
are included in the ESEF financial statements with iXBRL tags in
accordance with Article 4 of the Commission’s regulatory technical
standard and
•
ensuring the consistency between the ESEF financial statements and
the audited financial statements
INDEPENDENT AUDITOR’S REPORT ON THE ESEF CONSOLIDATED
FINANCIAL STATEMENTS OF SCANFIL OYJ
The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable the
preparation of ESEF financial statements in accordance the requirements
of the Commission’s regulatory technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to the
engagement we have performed, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The firm applies International Standard on Quality Management (ISQM)
1, which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the
Securities Markets Act, provide assurance on the financial statements
that have been prepared in accordance with the Commission’s technical
regulatory standard. We express an opinion on whether the consolidated
financial statements that are included in the ESEF financial statements
have been tagged, in all material respects, in accordance with the
requirements of Article 4 of the Commission’s regulatory technical
standard.
Our responsibility is to indicate in our opinion to what extent the assurance
has been provided. We conducted a reasonable assurance engagement
in accordance with International Standard on Assurance Engagements
(ISAE) 3000.
The engagement includes procedures
to obtain evidence on:
•
whether the primary financial statements in the consolidated financial
statements that are included in the ESEF financial statements have
been tagged, in all material respects, with iXBRL tags in accordance
with the requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether the notes and company’s identification data in the
consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
•
whether there is consistency between the ESEF financial statements
and the audited financial statements.
The nature, timing and extent of the selected procedures depend on
the auditor’s judgement. This includes an assessment of the risk of
material deviations due to fraud or error from the requirements of the
Commission’s technical regulatory standard.
171
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company’s identification data in the consolidated financial statements
that are included in the ESEF financial statements of Scanfil Oyj
7437004XD6U0FFDCT507-2024-12-31-fi.zip for the financial year ended
31.12.2024 have been tagged, in all material respects, in accordance with
the requirements of the Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of
Scanfil Oyj for the financial year ended 31.12.2024 has been expressed
in our auditor’s report 24.2.2025. With this report we do not express
an opinion on the audit of the consolidated financial statements nor
express another assurance conclusion.
Helsinki 27.3.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
172
To the Annual General Meeting of Scanfil Oyj
We have performed a limited assurance engagement on the group
sustainability report of Scanfil Oyj (2422742-9) that is referred to in
Chapter 7 of the Accounting Act and that is included in the report of
the Board of Directors for the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have
obtained, nothing has come to our attention that causes us to believe
that the group sustainability report does not comply, in all material
respects, with
1. the requirements laid down in Chapter 7 of the Accounting Act and
the sustainability reporting standards (ESRS);
2.
the requirements laid down in Article 8 of the Regulation (EU) 2020/852
of the European Parliament and of the Council on the establishment
of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Scanfil Oyj has identified
the information for reporting in accordance with the sustainability
reporting standards (double materiality assessment) and the tagging of
information as referred to in Chapter 7, Section 22 of the Accounting Act.
Our opinion does not cover the tagging of the group sustainability
report with digital XBRL sustainability tags in accordance with Chapter 7,
Section 22, Subsection 1(2), of the Accounting Act, because sustainability
reporting companies have not had the possibility to comply with that
provision in the absence of the ESEF regulation or other European Union
legislation.
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT
Basis for Opinion
We performed the assurance of the group sustainability report as a limited
assurance engagement in compliance with good assurance practice in
Finland and with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised) Assurance Engagements Other than Audits or
Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the
Responsibilities of the Authorized Sustainability Auditor section of our
report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability report of
Scanfil Oyj that is referred to in Chapter 7 of the Accounting Act has been
prepared and assurance has been provided for it for the first time for the
financial year 1.1.–31.12.2024. Our opinion does not cover the comparative
information that has been presented in the group sustainability report.
Our opinion is not modified in respect of this matter.
Authorized group sustainability auditor’s
Independence and Quality Management
We are independent of the parent company and of the group companies
in accordance with the ethical requirements that are applicable in Finland
and are relevant to our engagement, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The authorized group sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires the authorized
sustainability audit firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director of Scanfil Oyj are
responsible for:
•
the group sustainability report and for its preparation and presentation
in accordance with the provisions of Chapter 7 of the Accounting
Act, including the process that has been defined in the sustainability
reporting standards and in which the information for reporting in
accordance with the sustainability reporting standards has been
identified as well as the tagging of information as referred to in Chapter
7, Section 22 of the Accounting Act and
•
the compliance of the group sustainability report with the requirements
laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework
to facilitate sustainable investment, and amending Regulation (EU)
2019/2088;
• such internal control as the Board of Directors and the Managing
Director determine is necessary to enable the preparation of a group
sustainability report that is free from material misstatement, whether
due to fraud or error.
173
Inherent Limitations in the Preparation
of a Sustainability Reports
The preparation of the sustainability report requires a materiality
assessment from the company in order to identify relevant disclosures.
This significantly involves management judgment and choices.
Sustainability reporting is also characterized by estimates and
assumptions, as well as measurement and estimation uncertainty.
The determination of greenhouse gases is subject to inherent uncertainty
due to the incomplete scientific data used to determine the emission
factors and the numerical values needed to combine emissions of
different gases.
In addition, when reporting forward-looking information, the company
must make assumptions about possible future events and disclose the
company’s possible future actions in relation to these events. The actual
outcome may be different because predicted events do not always occur
as expected.
Responsibilities of the Authorized
Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain
limited assurance about whether the group sustainability report is free
from material misstatement, whether due to fraud or error, and to issue
a limited assurance report that includes our opinion. Misstatements can
arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the
decisions of users taken on the basis of the group sustainability report.
Compliance with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised) requires that we exercise professional judgment
and maintain professional skepticism throughout the engagement. We
also:
• Identify and assess the risks of material misstatement of the group
sustainability report, whether due to fraud or error, and obtain an
understanding of internal control relevant to the engagement in
order to design assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
•
Design and perform assurance procedures responsive to those risks to
obtain evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary
in nature and timing from, and are less in extent than for, a reasonable
assurance engagement. The nature, timing and extent of assurance
procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud or
error. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement been performed.
Our procedures included for ex. the following:
• We have interviewed the key persons responsible for collecting and
reporting the information included in the sustainability report.
• Through interviews, we gained an understanding of the company’s
control environment related to the sustainability reporting process.
•
We evaluated the implementation of the company’s double materiality
assessment process against the requirements of ESRS standards and
the compliance of the information provided for the double materiality
assessment with ESRS standards.
• We assessed whether the sustainability report in material respect
meets the requirements of ESRS standards for material sustainability
topics:
- We have tested the accuracy of the information presented in the
sustainability report by comparing the information on a sample
basis with supporting company documentation.
- We have on a sample basis performed analytical assurance
procedures and related inquiries, recalculation and inspected
documentation, as well as tested data aggregation to assess the
accuracy of the sustainability report.
•
We gained an understanding of the process by which a company has
defined taxonomy-eligible and taxonomy-aligned economic activities
and evaluate the regulatory compliance of the information provided.
Helsinki 24.2.2025
Ernst & Young Oy
Authorized Sustainability Audit Firm
Toni Halonen
Authorized Sustainability Auditor
174
Scanfil plc (the company) is a publicly listed company managed in accordance
with the company’s Articles of Association, the Finnish Companies Act, and other
legislation relating to the company. In addition, the company complies with the
Finnish Corporate Governance Code (2024) published by the Securities Market
Association, which entered into force on January 1, 2025.
This Corporate Governance Statement is available on Scanfil’s website at
www.scanfil.com, under Investors. The Finnish Corporate Governance Code is
available to the public at www.cgfinland.fi.
Shareholders’ Nomination Board
The Annual General Meeting 2024 decided to establish a Shareholders’ Nomination
Board (Nomination Board). The Nomination Board is a shareholders’ body responsible
for preparing proposals for upcoming Annual General Meetings. When necessary,
it also prepares proposals for extraordinary general meetings concerning the
election of Board members and the remuneration of the Board of Directors and
committee members. The Nomination Board is also responsible for ensuring that
the Board of Directors and its members have sufficient knowledge and experience
that corresponds to the needs of the company. The Nomination Board has three
members. Two of those members are representatives appointed by the two largest
shareholders, and the Chair of the Board of Directors is the third member of the
Nomination Board. Each year, the two shareholders that hold the largest share of the
votes conferred by all shares in the company pursuant to the shareholders’ register
maintained by Euroclear Finland Ltd on the first working day of the September
preceding the applicable Annual General Meeting will be entitled to appoint members
that represent the shareholders. If the representative of the largest shareholder also
serves as the Chair of the company’s Board of Directors, they cannot be appointed
as the Chair of the Shareholders’ Nomination Board but may act as the shareholder’s
representative as a member of the Nomination Board. In 2024, the members of the
Nomination Board were Jarkko Takanen (Chair) and Harri Takanen. The charter of
the Shareholders’ Nomination Board can be found here.
CORPORATE GOVERNANCE STATEMENT 2024
Board of Directors
Under the Companies Act, the Board of Directors (the Board) is responsible for
the management of the company and the proper organization of operations. The
members of the Board are elected by the Annual General Meeting. According to
the Articles of Association, Scanfil plc’s Board of Directors shall include a minimum
of three and a maximum of seven regular members. The Board elects a Chair from
among its members. The Board is responsible for deciding on the business strategy
and significant matters related to investments, organization, and finance, as well
as supervising the company’s management and operations. The Board shall also
ensure that the company’s accounts and asset management are properly organized
and supervised.
The Board, elected by the Annual General Meeting on April 25, 2024, has evaluated
the independence of its members according to which the majority of members
(Thomas Dekorsy, Bengt Engström, Christina Lindstedt, Juha Räisänen and Minna
Yrjönmäki) are independent of the company and independent of the significant
shareholders of the company. All three members of the Audit Committee are
independent of the company and its significant shareholders. This statement has
been reviewed by Scanfil plc’s Board of Directors.
Harri Takanen
Harri Takanen (born 1968, a Finnish citizen),
Member of the Board since April 18, 2013,
Professional Board Member, and Managing
Director of Jussi Capital Oy and Jussi Invest Oy.
Harri Takanen has worked at Sievi Capital plc as
CEO 2007–2011 and as the CEO of Scanfil plc
and Scanfil EMS Ltd. 2012–2013. He has served
Scanfil Group since 1994, e.g. as Director of
operations in China, Scanfil (Hangzhou) Co.,
Ltd’s Managing Director, Technology Director,
Director of Customer Relations, Customer
Service Manager and Plant Manager of Sievi Mechanics. Harri Takanen holds
a Master’s degree in Engineering. Not independent of the company and major
shareholders.
Area of expertise: EMS industry, strategy and business management
Held 9,913,146 shares in Scanfil plc on December 31, 2024
Chair of the Board of Directors: WellO2 Oy
Member of the Board of Directors: Jussi Capital Oy
Dr. Thomas Dekorsy
Dr. Thomas Dekorsy (born 1963, a German
citizen). Member of the Board since April 27,
2023. He is an experienced Interim Executive
specializing in restructuring, profit growth, and
reorganization of industrial companies. He was
the Global Head of Automotive Business Unit
(ad. interim) at Amann & Sähne GmbH & Co. KG.
He has served in various leadership roles e.g as
the Managing Director of Prettl Management
Services GmbH 2021–2022, the Chief Operating
Officer of Lakesight Technologies Holding
GmbH 2019–2021, the Chief Executive Officer of Escatec Switzerland AG 2013–
2019, and many others since 1989. He holds a Ph.D. in Engineering. Independent
of the company and its major shareholders.
Area of expertise: Industrial companies, business
turnarounds and sustainability
Did not hold any shares in Scanfil plc on December 31, 2024
Bengt Engström
Bengt Engström (born 1953, a Swedish citizen),
Member of the Board since August 20, 2015.
Bengt Engström has held a number of executive
positions at several companies, both in Sweden
and globally, for example at Whirlpool, Bofors AB,
Duni AB, and Fujitsu. Bengt Engström holds a
Mechanical Engineer’s degree. Independent of
the company and major shareholders.
Area of expertise: EMS industry,
strategy and business management
Held 12,929 shares in Scanfil plc on December 31, 2024
Chair of the Board of Directors: Nordic Flanges, QleanAir AB,
Qlosr AB, BEngström AB and BEngström Förvaltning AB
Member of the Board of Directors: Real Fastigheter AB,
Polygienne AB and Scandinavian Chemotech AB
175
Christina Lindstedt
Christina Lindstedt (born 1968, a Swedish
citizen), Member of the Board since April 12,
2016. Partner at STOAF since 2014. She was
the Senior Advisor, CEO, and COO at QleanAir
Scandinavia 2020−2023. Christina Lindstedt
has held several executive positions at AB
Electrolux, Sony Ericsson, and Sony, both
in Sweden and globally. Primarily, she has
served as a Business/Product area head for
businesses such as, e.g., smartphones, washing
machines, automatic lawn mowing, and new
business Areas. In addition, she has been responsible for establishing global
sourcing operations in China. Christina has also held a number of board positions
in listed and non-listed companies. Christina Lindstedt holds a Master’s Degree
of Business Administration and Commercial law. Independent of the company and
major shareholders.
Area of expertise: EMS industry, startups and growth companies
Held 7,312 shares in Scanfil plc on December 31, 2024
Member of the Board of Directors: Xplorebiz AB
Juha Räisänen
Juha Räisänen (born 1958, a Finnish citizen),
Member of the Board since April 23, 2020.
Managing Partner at Valuenode GmbH. Juha
Räisänen has held a number of executive
positions globally at ICL-Fujitsu, Nokia, SanDisk,
KONE, and Aliaxis. He has been responsible for
sales, manufacturing, supply chain, sourcing
& procurement, quality, and safety. Juha
Räisänen holds a Master’s Degree of Industrial
Engineering & Management. Independent of the
company and major shareholders.
Area of expertise: Manufacturing, supply chain and sourcing
Did not hold any shares in Scanfil plc on December 31, 2024
Member of the Board of Directors: Bluefors Oy and Valuenode GmbH
Minna Yrjönmäki
Minna Yrjönmäki (born 1967, a Finnish citizen),
Member of the Board since 27 April 2023. She
is the Chief Financial Officer of Wihuri Group
since 2023. She has served as the CFO (ad
int.) of Raute Corporation 2022–2023, the
CFO of Uponor Corporation 2019–2021, SVP
Group Financial Controlling 2016–2019 and SVP
Financial Services and Reporting 2014–2016
at Outokumpu Oyj. Prior to that, she worked
in different leading financial roles at Ahlstrom
Oyj 2004–2014 and Huhtamaki Oyj 1991–2004.
She holds a Master of Science (Econ.) degree. Independent of the company and
its major shareholders.
Area of expertise: Financial management, accounting and sustainability
Did not hold any shares in Scanfil plc on December 31, 2024
The entities over which the Board members exercise control do not own Scanfil
shares.
The term of office of Board members expires at the close of the first Annual General
Meeting following the one in which they were elected.
Activity of the Board
The Board had 15 meetings in 2024, of which four were written resolutions without
convening a meeting. The average member attendance rate for meetings was 99%.
The duties and responsibilities of Scanfil’s Board of Directors are based on the
Finnish Limited Liability Companies Act, other applicable legislation, the Articles
of Association, good governance recommendations, and the Board’s charter. The
Board carries out an annual review of its operations and regular reviews of the CEO
and Group Management Team’s work. The Board of Directors has confirmed the
charter, which lists the following key duties for the Board:
•
confirming the company’s business strategy and monitoring its implementation
•
confirming the annual key business targets and monitoring Scanfil Group’s
performance
• deciding on strategically significant investments in the Group
• discussing and approving financial statements and interim reports
•
appointing and dismissing the CEO and determining their terms of employment
and remuneration
• deciding on incentive systems for managers and employees
• monitoring the company’s key operational risks and their management
• confirming the company’s values and operating principles.
Diversity Principles for the Board of Directors
Scanfil plc operates in international contract manufacturing, and its customers include
global companies in various industries. For the Board to be effective, its members
must possess experience from several different industries, be well-versed in
international business, and have insight into the global trends, including sustainability,
that affect the development of contract manufacturing. The Shareholders’ Nomination
Board should consider the education, professional and international experience
of the candidates, as well as their individual characteristics, when preparing the
proposal for the Board’s composition. The aim is to form a diverse Board with
a sufficient number of members who can take responsibility for developing the
company’s operations, sustainability, and strategy in its line of business and who are
competent in managing the duties and responsibilities of the Board. Scanfil aims
to have a sufficiently diverse gender and age distribution on its Board of Directors.
The Annual General Meeting held on April 25, 2024, elected six (6) members to the
Board, four of whom are men (66.7%) and two (33.3%) women. Board members have
either technical or business degrees. In addition, the above-mentioned factors
and characteristics relevant to the diversity of the Board were represented in the
composition of the Board in 2024.
Board Committees
The Board of Directors has established an Audit Committee. The Audit Committee
is responsible for monitoring the financial and sustainability reporting processes,
the reporting of financial and sustainability statements and interim reports, and the
functionality of internal control and risk management in the company. It also evaluates
the appropriateness of auditing and prepares the proposal for the appointment of
an auditor. The committee has three members: Juha Räisänen (Chair), Christina
Lindstedt, and Minna Yrjönmäki. The committee convened eight (8) times in 2024.
The attendance rate of its members was 100%.
176
Group Management Team
The principal duty of the Group Management Team is to assist the CEO in the
company’s operative management. The Team’s other responsibilities include long-
term planning, planning and monitoring investments, and allocating resources to
key operations.
Riku Hynninen
Chief Development Officer
Riku Hynninen (1972) was responsible for
operational performance development,
combining the power of manufacturing and
information technologies, people and culture,
sustainability, and quality & lean management.
During the years 2018–2021, he led Scanfil’s
operations as COO. He previously worked at
Nokia Corporation, where he was responsible
for manufacturing technology, new product
introduction, and lifecycle management for
the Mobile Networks product portfolio. He holds a Master’s degree in Engineering.
Held 46,150 shares in Scanfil plc on December 31, 2024.
Markku Kosunen
Chief Procurement Officer
Markku Kosunen (1967) was responsible for
Global Sourcing and Supply Chain, including
inventory management. Before joining Scanfil
Group, he worked at Mecanova Oy as Vice
President of Business Development 2005–
2007, Director of Operations during 2008–2010,
and in different management positions at the
mechanics plants of Flextronics and Ojala-
yhtymä in Finland during 1993–2005. He is an
undergraduate in technology.
Held 19,156 shares in Scanfil plc on 31 December 2024.
CEO
The Board of Directors decides on the appointment and dismissal of the CEO and
the terms and conditions of their employment.
The CEO is covered by the performance and profit bonus systems decided upon
separately by the Board of Directors. Christophe Sut was nominated as the CEO
as of September 1, 2023.
Christophe Sut
CEO
Christophe Sut (1973), a French and Swedish
citizen. He was previously the President of
the Manufacturing Solutions at Sandvik AB
2021–2023, Executive Vice President of
Global Solutions 2016–2021, Vice President
of Business Development 2014–2016 at ASSA
ABLOY AB, and the Development Director, EMEA
at CLIQ 2012–2014. Global Strategic Marketing
Manager at Niscayah Group 2010–2012, and
various marketing and development roles at
ASSA ABLOY AB in Sweden and France 2001–2010. Various marketing roles at ITW
Group and SAM Outillage 1997–2001. He holds a Master’s degree in Marketing and
Sales and a Bachelor’s degree in Languages and Mathematics.
Held 5,000 shares, 120,000 option rights 2022(BI) and 120,000
option rights 2022(CI) in Scanfil plc on December 31, 2024.
The CEO’s duties are determined in accordance with the Companies Act. The CEO
is in charge of the company’s operative management according to the guidelines
and orders given by the Board of Directors. The CEO shall ensure that the company’s
accounting practices comply with legislation and that asset management is organized
in a reliable manner. The CEO is the chairman of the Group Management Team.
The CEO has a separate service contract that is valid until further notice with a mutual
notice period of six months. Should the company terminate the service contract
made with the CEO, the amount is subject to the duration of the service term and
at the maximum equivalent to the monetary salary of 12 months can be paid to the
CEO as a severance package under the terms and conditions of his service contract.
The CEO’s retirement age is the statutory retirement age.
Anette Mullis
Chief People Officer (as of
October 14, 2024)
Anette Mullis (1965) was responsible for the
global HR management and strategy. Before
joining Scanfil she was the Vice President of
Human Resources and Sustainability at Arelion
2021–2024. Prior to that she was Senior Vice
President, Human Resources at Mycronic
2018–2021, Head of HR Solutions Area OSS at
Ericsson 2017–2018, held several leading HR
positions at CSL Behring 2010–2017, Associate
Director at Wyeth Pharmaceuticals 2004–2007 and also worked in managerial
HR roles at IKEA Homefurnishings 1988–2004.Anette holds a Bachelor’s Degree
in Science (Social Work).
Did not hold any shares in Scanfil on December 31, 2024
Timo Sonninen
Chief Operating Officer (until
November 30, 2024)
Timo Sonninen (1966) was responsible for
the operational and financial performance of
factories. He previously worked for Efore Oyj as
Vice President of Operations in Suzhou, China,
2006–2013. Prior to that, he worked at Incap Oyj,
among others, as Vice President, Manufacturing
Services and as the Plant Director of the Vuokatti
factory. He holds a Bachelor’s degree in Science.
Held 100,500 shares in Scanfil on December 31, 2024.
177
Kai Valo
Chief Financial Officer
Kai Valo (1965) was responsible for finance,
accounting, and risk management. During 2015–
2016, Kai was the CFO at Norpe Group. Prior to
that, he was Lite-On Mobile Group’s Director of
Finance and Control in Beijing, China, 2009–
2015. In 1999–2008, he held several finance-
related management positions at Perlos. He
holds a Master’s degree in Economics.
Held 20,000 shares in Scanfil on December
31, 2024.
Christina Wiklund
Chief Commercial Officer
Christina Wiklund (1971) was responsible for
sales, marketing, and customer relations.
Christina was the Vice President of Sales
EMEA at GE Additive. Prior to that, she was the
Vice President of Sales at Flex 2006–2018,
Account Manager at Solectron 2002–2006,
and in business development and account
management roles at Ericsson 1999–2002. She
holds a Bachelor’s degree in Social Science and
has attended the Stanford Graduate School of
Business Executive Program.
Held 2,000 shares in Scanfil on 31 December 2024.
DESCRIPTIONS OF INTERNAL CONTROL PROCEDURES AND
THE MAIN FEATURES OF RISK MANAGEMENT SYSTEMS
RELATED TO THE FINANCIAL REPORTING PROCESS
Risk Management
The Board of Directors is responsible for ensuring the appropriate organization of
the Group’s risk management and internal control and audit. Risk management is
based on a risk management policy approved by the Board, aimed at managing
risks in a comprehensive and proactive manner. The assessment of risks is part
of the annual strategy and business planning process. There is no separate risk
management organization; risk management is incorporated into the business
processes and the management system and it is coordinated by the Group’s CFO.
Risk management aims to observe and analyze factors that might have a negative
impact on the achievement of the company’s goals and to take measures to
mitigate or completely eliminate risks. The operative units report on business risks
in accordance with the management and reporting system.
Internal Control
Scanfil plc’s internal control is a continuous process used to ensure profitable and
uninterrupted operation. The control function aims to minimize risks by ensuring
the reliability of reporting and compliance with laws and regulations.
Internal control is based on the Group’s shared values, ethical guidelines, and
industry legislation, from which the operating principles and guidelines are derived.
The guidelines cover procedures for core operations. Group and unit management
hold the responsibility for the company’s internal control system. Internal control
forms an active part of the company’s management and administration. The Group’s
operational management holds the responsibility for developing the harmonized
business processes included in the control system. The Group’s financial
administration coordinates the financial management of the Group.
The controls included in Scanfil’s operating processes form the basis of the
company’s financial control. They enable the company to swiftly identify and react
to any deviations. The monthly reporting by management is a fundamental part
of financial control. It includes producing a rolling forecast, the result of business
operations carried out and an analysis of the differences between the forecast
and the actual result. The indicators monitored in monthly reporting have been set
so they support the achievement of shared Group-level and unit-specific targets,
and to identify issues that require control measures. An auditing firm supports the
performance of financial control.
The interpretation and application of accounting standards are carried out centrally by
the Group’s financial administration. These standards form the basis for the Group’s
shared recognition principles and reporting and accounting standards. In order to
ensure reliable financial reporting, core functions are conducted using a globally
harmonized ERP system and shared reporting tools. The use of standardized tools
enables continuous control and successful change management.
Internal Audit
The company uses internal auditing that handles internal auditing duties in
cooperation with other Group functions, and makes regular reports to the CEO
and the Board.
Changes in Group’s structure in 2024
Scanfil plc acquired SRXGlobal Pty Ltd. on October 3, 2024.
178
DESCRIPTION OF THE INTERNAL CONTROL AT SCANFIL PLC
SCANFIL PLC GROUPS STRUCTURE IN
VALUES, ETHICAL GUIDELINES, INDUSTRY LEGISLATION
Business processes
ERP system
Strategy
Corporate governance
Strategy process
Management systems
Management reporting systems
GROUP MANAGEMENT
SUPPORT FUNCTIONS
BOARD LEVEL
OPERATIONAL LEVEL
Scanfil Oyj
Sievi, Finland | The ultimate group parent company, listed in NASDAQ Helsinki
Scanfil EMS Oy
Sievi, Finland
Scanfil Holding Germany GmbH
Wutha-Farnroda, Germany
SRXGlobal Pty Ltd.
Scanfil Sweden Ab
Malmö, Sweden
Scanfil
(Suzhou) Co., Ltd
Suzhou, China
Scanfil
Electronics GmbH
Wulha-Farnroda, Germany
SRXGlobal
(Australia) Pty Ltd.
SRXGlobal
(Singapore) Pte Ltd.
Scanfil Business
Services Kft
Biatorbágy, Hungary
Scanfil GmbH
Wutha-Farnroda, Germany
SRXGlobal
(Malaysia) Sdn Bhd
Scanfil OÜ
Pärnu, Estonia
Scanfil
Sieradz Sp. z o.o.
Sieradz, Poland (Branch)
Scanfil Inc.
Buford, Georgia,
The USA
Scanfil
Malmö AB
Malmö, Sweden
Scanfil
Myslowice Sp. z o.o.
Myslowice, Poland
Scanfil
Åtvidaberg AB
Åtvidberg, Sweden
Owns 100%
Owns 100%
Owns 100% Owns 100%From 3.10.2024Owns 100%
179
OTHER INFORMATION TO BE PROVIDED IN THE STATEMENT
Company insiders and insider administration
In its operations, the company complies with regulation EU No. 596/2014 on market
abuse (MAR) and the Finnish Securities Markets Act, as well as related regulations
and guidelines issued by the European Securities and Markets Authority (ESMA),
the Finnish Financial Supervisory Authority and Nasdaq Helsinki.
The company’s Board of Directors has confirmed the company’s insider guidelines
based on Nasdaq Helsinki’s guidelines for insiders. The insider guidelines define
certain practices and decision-making procedures to ensure that the company’s
insider administration is organized consistently and reliably.
The company divides insiders into two categories: a) managers with a reporting
obligation; and b) project-specific insiders. Managers with a reporting obligation
include members of the Board of Directors, the CEO and members of the Group
Management Team. Managers with a reporting obligation cannot trade in the
company’s financial instruments during a period before the publication of the
company’s interim reports and financial statements releases, starting 30 days
before the publication of the interim reports and financial statements releases
(“closed window”). Project-specific insiders cannot trade in the company’s financial
instruments before the project in question has ended.
In addition, the company has decided that persons who are party to the preparation
and drawing up of the company’s interim reports and financial statements releases
cannot trade in the company’s financial instruments during a period before the
publication of the company’s interim reports and financial statements releases,
starting 30 days before the publication of the interim reports and financial statements
releases (“expanded closed window”). The expanded closed window also applies
to persons who, as a result of their work-related tasks, have access to the group’s
sales figures or to sales figures of a business unit that is significant for the total
results of Scanfil Group as a whole.
As a result of the entry into force of MAR, the company no longer has any public
insiders. From July 3, 2016, the company will publish, in a stock exchange release,
all transactions with company shares carried out by managers (“PDMR”, person
discharging managerial responsibilities) with a reporting obligation and their related
parties in the company’s financial instruments in accordance with MAR.
Related-party transactions
Principles of monitoring and assessing Scanfil plc’s related-party transactions
The principles of Scanfil plc’s related-party transactions define the principles and
processes by which the company identifies its related parties and monitors related-
party transactions, assesses the nature and terms of business transactions, and
ensures that any conflicts of interest are addressed appropriately in the company’s
decision-making processes. The Board of Directors monitors and assesses related-
party transactions continuously and regularly.
The company’s related parties
The company’s related parties cover individuals and entities close to the Group’s
companies as defined in the International Financial Reporting Standards (IFRS),
approved in accordance with the IAS Regulation referred to in Chapter 1, Section 4
d of the Finnish Accounting Act.
The company’s related parties include its subsidiaries and the company’s key
management employees, consisting of the Board of Directors, the CEO and the
Group Management Team, as well as their family members. Related parties also
include companies in which the aforementioned individuals hold control.
List of related parties
The company maintains a list of individuals and entities regarded as its related parties
to identify related-party transactions. The company ensures that the company’s
management is provided with sufficient related-party guidelines.
The company’s internal related parties are identified by maintaining and updating
the list of related parties. Each individual and entity identified as a related-party
is entered in the list of related parties, including details of their connection to the
company as a related-party, such as shareholdings in other entities. Each related-
party is required to report or otherwise bring, on their own initiative, potential conflicts
of interests to the attention of the executive management.
Identifying related-party transactions
Related-party transactions are identified, and a register of agreed activities is
maintained. The following procedures apply to the identification of related-party
transactions:
• The company maintains a list of entities regarded as related parties.
• The person who approves related-party transactions on the company’s behalf
verifies that assessments and decision-making processes regarding related-
party transactions are in compliance with defined criteria.
•
If it becomes apparent in connection with the preparation of a related-party
transaction that the related-party transaction is not related to the company’s
ordinary course of business or it is not carried out on arm’s-length terms, the
preparation of the transaction is handled by the Group Administration.
•
In addition to the identification procedures followed by the company, individuals
and entities regarded as related parties must ensure that related-party
transactions are entered in the register of related-party transactions and carried
out following the appropriate decision-making process.
Monitoring related-party transactions
The company monitors and assesses how agreements and other legal transactions
between the company and its related parties comply with the requirements set
for ordinary activities and for arms-length terms. Information on related-party
transactions will be requested regularly from related parties, at least in conjunction
with regular reporting.
Assessing related-party transactions and decision making
The company’s main criterion for related-party transactions is that it is sufficiently
ensured that related-party transactions comply with market terms and are favorable
for the company’s business operations.
When preparing decisions on related-party transactions, it must be considered that (a)
decisions are based on particularly careful preparations and appropriate clarifications
and assessments; (b) preparations, decision-making and the assessment and
approval of individual transactions are arranged considering provisions of conflicts
of interests regulations and the appropriate decision-making body; and/or (c) the
identification, reporting and control related to transactions have been arranged
appropriately, for example, so that the company’s related-party transactions are
monitored in accordance with the reporting practices followed by the company.
Related-party transactions are assessed according to the categories to which each
transaction belongs. These include:
ORDINARY RELATEDPARTY TRANSACTIONS
As a rule, ordinary related-party transactions must be part of the company’s regular
business operations, and they must be carried out following arms-length terms.
Related-party transactions are entered in the register of related-party transactions
so that the company can report its related-party transactions as required in IFRS.
The ordinality and arm’s-length terms of the transaction shall be assessed and
documented for such ordinary related-party transactions that are not performed
on standard terms or at standard pricing or for transactions with a value exceeding
EUR 5,000. Ordinary commercial terms may vary in different situations.
The ordinary nature of related-party transactions in relation to Scanfil Group’s
business operations are assessed on the basis of the company’s purpose, the
industry and other provisions listed in the company’s Articles of Association, and
the company’s actual operations.
Related-party transactions that are associated with the company’s standard
agreements or agreements provided generally for customers within the framework
of standard pricing, and related-party transactions that have a value of less than
EUR 5,000 can be approved following the one-over-one principle. Other ordinary
180
related-party transactions must be approved by the CEO unless they are significant
related-party transactions, or unusual or far-reaching considering the scope and
quality of the activities. However, any events involving the CEO’s related parties must
always be approved by the Chair of the Board of Directors.
SIGNIFICANT RELATEDPARTY TRANSACTIONS
Related-party transactions that are not part of the company’s ordinary business
operations or that are not carried out in accordance with arms-length terms are
regarded as significant related-party transactions.
The company’s Board of Directors decides on significant related-party transactions,
including agreements or other legal transactions involving related parties that are
not part of the company’s ordinary business operations and do not follow arms-
length terms.
Members of the Board of Directors or the company’s shareholders cannot participate
in the voting or approval of a decision if they or their related parties are party to
significant related-party transactions.
Reporting related-party transactions
When preparing and carrying out related-party transactions, the company
complies with specific reporting and disclosure obligations regarding related-
party transactions.
Auditors
The Annual General Meeting held on April 25, 2024, selected the auditing firm Ernst
& Young Oy as the auditor, and they named Authorized Public Accountant Toni
Halonen as the main auditor. Until April 25, 2024, KPMG Oy Ab acted as Scanfil’s
auditing firm. The auditing fees for the Finnish companies of the Group for the
2024 accounting year were EUR 286,369 in total, and the parent company’s share
was EUR 221,245. The audit fees for the foreign companies of the Group were EUR
324,236 in total (EY: EUR 317,837 and other EUR 6,399). For other services, the
auditing company was paid EUR 27,124.
181
1. Introduction
Scanfil plc’s (the company) Annual General Meeting held on April 25, 2024 discussed the Remuneration Policy regarding the
company’s administrative bodies, what aims to promote the company’s long-term financial performance and development of
shareholder value by rewarding the company’s senior management by engaging and motivating management to pursue the
company’s strategy in the best interest of all company’s shareholders.
Shareholders’ Nomination Board
The Annual General Meeting held on 25 April 2024, decided on establishing a Shareholders’ Nomination
Board (Nomination Board). The Nomination Board and the Board of Directors (the Board) monitor
the company’s remuneration practices to ensure they comply with the established Remuneration
Policy. The Nomination Board prepares a proposal for the Remuneration Policy and the remuneration
of the Board of Directors which are presented to the Annual General Meeting to decide.
The Board of Directors
The General Meeting decides on the remuneration of the members of the Board of Directors. The Nomination Board prepares
proposals for the remuneration of the Board. The General Meeting approves the Board’s remuneration each year, which is
discussed and resolved at the General Meeting following the agenda. The remuneration of the Board can consist of one or
more components, such as an annual fee and meeting fees. The fees can be paid in cash, or partially in cash and in company
shares. The members of the Board of Directors do not participate in incentive plans of the company.
The CEO
Compensation of the CEO consists of a fixed basic salary with benefits in kind and variable incentives, i.e. performance-based
compensation. Variable incentive schemes include an annual incentive plan and a share-based incentive plan. In deciding
on the level of overall remuneration, the Board will consider financial and operational objectives and results. The company’s
strategy and market conditions will be taken into account when deciding on the annual remuneration. The variable component
may not exceed 100% of the fixed basic salary.
Details about the Remuneration policy can be found online.
Element Target group Target Description
Salary CEO and other
senior management
Attract, keep and
reward skilled
managers
Number of factors are taken
into account in determining the
basic salary, e.g. market situation,
individual qualities, skill and
experience. The basic salary is
typically reviewed annually.
Fixed remuneration The Board of
Directors
Attract, keep and
reward skilled
Board members
The remuneration of the Board
of Directors is proposed by the
Nomination and Remuneration
Committee to the General
Meeting to decide.
Annual incentive
scheme (short-term)
CEO and other
senior management
Encourage, guide
and reward from
achieving short-
term financial,
operational and
strategic targets
The short-term annual incentive
plan is primarily based on one-
year earnings criteria, which
are further based on longer-
term indicators, typically three
years of target settings.
Stock option
incentive scheme
(long-term)
CEO and other
senior management
Link management
and their rewarding
to Company’s
shareholders
The General Meeting decides
on share-based compensation
programs and authorizes the Board
of Directors to decide on the details
and practical implementation of
the compensation programs.
KEY ELEMENTS OF REMUNERATION
REMUNERATION REPORT FOR THE GOVERNING BODIES 2024
182
Scanfil’s financial and remuneration development over the last five years
In 2021-2023 Scanfil’s turnover increased rapidly. In 2024, many customers faced softening demand and started destocking.
This accelerated the negative change in turnover. Scanfil was able to defend its profit margin with a prompt cost-cutting
program and its adjusted operating profit margin stayed at the previous year’s levels at 6.8%.
*No adjustments in the financial reporting period
Scanfil’s financial targets in 2024 were 10% turnover growth over the business cycle, 7%-8% adjusted operating profit margin
and Net Debt/EBITDA <1.5.
2020 2021 2022 2023 2024
Turnover, EUR million 595.3 695.7 843.8 901.6 779.9
Annual turnover growth, % 2.7 16.9 21.3 6.9 -13.5
Adjusted operating profit, EUR million 39.1 40.3 45.4* 61.3* 53.1
Adjusted operating profit, % 6.6 5.8 5.4* 6.8* 6.8
Share price change, VWAP, % 21.9 50.1 -13.4 18.1 -10.1
, EUR 2020 2021 2022 2023 2024
Harri Takanen (chair) 51.0 54.1 61,5 60.7 60.8
Thomas Dekorsy (as of 27 April 2023) - - - 22.8 39.3
Bengt Engström 29.5 33.8 40.0 39.3 40.7
Christina Lindstedt 30.1 33.8 36.8 41.5 45.1
Juha Räisänen (as of 23 April 2020) 17.4 33.8 37.8 45.8 49.9
Minna Yrjönmäki - - - 25.6 43.7
Jarkko Takanen (until 2 February 2022) 31.7 34.9 9.0 - -
Christer Härkönen (until 22 April 2021) 27.9 11.4 - - -
Salaries and fees of the Board of Directors, in total 187.6 198.7 185.0 235.7 279.5
FINANCIAL AND REMUNERATION DEVELOPMENT,
FEES OF THE BOARD OF DIRECTORS
The remuneration of the CEO has consisted of a fixed base salary with fringe benefits and variable incentives. The variable
incentives have included the short-term performance bonus and long-term stock option schemes, with their terms and conditions
determined by the Board. Petteri Jokitalo acted as the CEO until August 31,2023. Christophe Sut assumed his position as
the CEO September 1, 2023.
, EUR 2020 2021 2022 2023 2024
Salary, in total 289.7 295.3 304.0 354.2 351.6
Petteri Jokitalo 289.7 295.3 304.0 241.1 -
Christophe Sut - - - 113.1 351.6
Fringe benefits, in total 12.3 14.2 14.8 14.5 6.7
Petteri Jokitalo 12.3 14.2 14.8 11.3 -
Christophe Sut - - - 3.1 6.7
Performance bonus, in total 85.0 105.6 101.4 160.0 316.2
Petteri Jokitalo 85.0 105.6 101.4 160.0 316.2
Christophe Sut - - - - -
In shares and payable stock options, in total 132.2 631.3 - 1.111.1 -
Petteri Jokitalo 132.2 631.3 - 1,111.1 -
Christophe Sut - - - - -
In total 519.2 1,046.4 420.1 1,640.2 674.5
SALARIES AND FEES OF THE CEO
The development of employees’ remuneration is based on the salaries and wages paid to the personnel less the employer’s
social security contributions divided by the average number of employees during the year.
, EUR 2020 2021 2022 2023 2024
In total 22.6 23.1 24.0 25.1 26.6
PAID SALARIES AND WAGES/AVERAGE NUMBER OF EMPLOYEES
183
2. Remuneration of the Board of Directors in 2024
The remuneration of the Board members is decided by the General Meeting of Scanfil plc.
On April 25, 2024 the Annual General Meeting decided that:
• Members of the Board are paid EUR 3,200/month
• The Chairman of the Board is paid EUR 5,000/month.
Additionally, members of the Committee received a compensation of EUR 750/meeting and the Chair of the Audit Committee
EUR 380/month. In addition, a fee of EUR 380 per face-to-face meeting held outside of the Board Members country of
residence was paid.
The travel expenses of Board members were compensated in accordance with the company’s travel policy. No other benefits
were paid to the members of the Board on the basis of this position.
During the financial year of 2024, members of Scanfil plc’s Board of Directors did not receive any company’s shares or share-
based benefits as remuneration. The remuneration of the Board consisted of the monthly fees and committee membership
fees decided by the General Meeting.
EUR Meeting fee Committee fee Fees in total
Harri Takanen 59,420 1,400 60,820
Thomas Dekorsy 39,310 - 39,310
Bengt Engström 39,280 1,400 40,680
Christina Lindstedt 39,280 5,850 45,130
Juha Räisänen 39,660 10,266 49,926
Minna Yrjönmäki 37,820 5,850 43,670
In total 254,770 24,766 279,536
MEETING AND COMMITTEE FEES PAID TO THE BOARD OF DIRECTORS IN
3. Remuneration of the CEO in 2024
The CEO has a service contract that is valid until further notice with a mutual notice period of six months. Should the company
terminate the service contract made with the CEO, the amount is subject to the duration of the service term and at the
maximum equivalent to the monetary salary of 12 months can be paid to the CEO as a severance package under the terms
and conditions of his service contract.
The retirement age of the CEO is the statutory retirement age.
The former CEO Petteri Jokitalo was paid a performance bonus of EUR 316,224 regarding the year 2023 in 2024,
which was 100% of the maximum.
EUR Fixed Variable
Salary, in total 351 577 -
Fringe benefits, in total 6 718 -
Performance bonus from the year 2023, in total -
Stock option scheme, in total - -
Salaries and fees, in total 358 295
SALARIES AND FEES OF THE CEO
184
Performance bonus
The CEO is included in the scope of the management’s performance bonus scheme based on the Group’s operating profit and
turnover. The operating profit determines 80% and turnover 20% of the bonus payable to the CEO. The final performance bonus
is determined on the basis of the actual operating profit and turnover in euro compared with the targets set in the previous
three years, each representing one-third of determining the bonus. The Board of Directors decides on the management
remuneration scheme and its terms and conditions for the next three years.
The annual bonus cannot exceed the amount corresponding to 12 months’ salary. The CEO is also included in the scope of
the company’s share-based incentive scheme.
The CEO does not have other benefits.
Stock option scheme
On 21 April 2022, the Annual General Meeting of Scanfil plc decided to authorize the Board of Directors to decide on granting
stock options rights to key personnel of the Scanfil Group and to decide on the terms and conditions of the maximum amount
of 1,200,000 option rights (“Stock Option scheme 2022”).
OPTIONS HELD BY THE CEO 2022(BI) 2022(CI)
Number of options 120,000 120,000
Subscription period
1 May 2026 -
30 April 2028
1 May 2027 -
30 April 2029
Fair value, in total, EUR 229,200 194,400
More details on stock option schemes can be found here.
Tel. +358 8 48 82 111
scanfil.com
Scanfil is a trusted manufacturing partner and system supplier