REPORT OF THE BOARD
OF DIRECTORS AND
FINANCIAL STATEMENTS
2024
Verkkokauppa.com has published its annual reporting package for 2024.
The reporting components are: the Company brochure, the Report
of the Board of Directors and the Financial Statements including the
Sustainability Statement, and the Corporate Governance Statement
including the Remuneration Report. The reports are available in Finnish
and English, and they can be read and downloaded separately from
Verkkokauppa.com’s investor site as separate pdf files.
VERKKOKAUPPA.COM’S ANNUAL REPORTING 2024
CORPORETE GOVERNANCE
STATEMENT AND
REMUNERATION REPORT
2024
COMPANY
YEAR 2024
REPORT OF THE BOARD
OF DIRECTORS AND
FINANCIAL STATEMENTS
2024
2Report of the Board of Directors and Financial Statements
2024
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2024
REPORT OF THE BOARD OF DIRECTORS ������������������������� 5
SUSTAINABILITY STATEMENT ������������������������������������������ 14
GENERAL INFORMATION .............................................. 14
Basis for preparation .................................................. 14
Governance ............................................................ 14
Strategy .................................................................18
Impact, risk and opportunity management ........................... 27
ENVIRONMENT ......................................................... 39
Information about the taxonomy of sustainable finance ............. 39
E1 – Climate change ................................................... 42
E2 – Pollution .......................................................... 47
E5 –Resource use and circular economy ............................. 49
SOCIAL RESPONSIBILTY ............................................... 53
S1 – Own workforce ................................................... 53
S2 – Workers in value chain ........................................... 59
S4 – Consumers and end-users .......................................61
GOVERNANCE .......................................................... 63
G1 –Business conduct ................................................ 63
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) 2024 ���� 65
1 CONSOLIDATED STATEMENT OF INCOME ������������������������� 65
2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ��� 65
3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ��������� 66
4 CONSOLIDATED CASH FLOW STATEMENT ������������������������ 67
5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ��������� 68
6 GROUP ACCOUNTING PRINCIPLES ��������������������������������� 69
6.1 Basic information on the Company ............................. 69
6.2 Basis of preparation .............................................. 69
6.3 Accounting policies requiring judgment by the management and
key factors of uncertainty related to estimates ................. 69
6.4 Group Information ............................................... 70
6.5 Effects of IFRS standards that become effective during or after
the financial year ..................................................71
7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ������ 72
7.1 Segment reporting ............................................... 72
7.2 Revenue from contracts with customers ....................... 72
7.3 Other operating income ......................................... 74
7.4 Materials and services ........................................... 74
7.5 Employee benefits ............................................... 74
7.6 Remuneration of key management personnel .................. 74
7.7 Depreciation and amortization .................................. 76
7.8 Other operating expenses ....................................... 76
7.9 Finance income and expenses .................................. 76
7.10 Income taxes ..................................................... 76
7.11 Earnings per share ............................................... 77
7.12 Share-based payments .......................................... 77
7.13 Intangible assets ................................................. 78
7.14 Tangible assets ...................................................81
7.15 Leases ........................................................... 82
7.16 Deferred tax assets and liabilities ............................... 85
7.17 Trade receivables and other receivables ....................... 86
7.18 Inventory ......................................................... 86
7.19 Cash and cash equivalents ...................................... 87
7. 20 Equity ............................................................. 87
7.21 Cash flow information ........................................... 88
7.22 Funding ........................................................... 89
7.23 Other current liabilities and accrued liabilities ................. 92
7.24 Provisions ........................................................ 93
7.25 Related parties .................................................. 93
7.26 Guarantees and commitments .................................. 93
7.27 Subsequent events .............................................. 93
8 FINANCIAL STATEMENTS OF PARENT COMPANY
(FAS) 2024 ������������������������������������������������������������� 94
INCOME STATEMENT ���������������������������������������������������� 94
BALANCE ������������������������������������������������������������������ 95
STATEMENT OF FUNDS ��������������������������������������������������� 96
NOTES TO THE FINANCIAL STATEMENTS 31.12.2024����������������� 97
8.1 Notes on the preparation of the financial
statements ....................................................... 97
8.2 Revenue .......................................................... 98
8.3 Other operating income ......................................... 98
8.4 Employee benefits ............................................... 98
8.5 Management remuneration ..................................... 98
8.6 Depreciation and amortization .................................. 99
8.7 Other operating expenses ....................................... 99
8.8 Finance income and costs ....................................... 99
8.9 Income taxes ..................................................... 99
8.10 Intangible assets ................................................ 100
8.11 Property, plant and equipment ................................. 100
8.12 Investments ..................................................... 101
8.13 Trade receivables and other receivables ...................... 101
8.14 Receivables from companies of the same group .............. 101
8.15 Other short-term receivables and accruals .................... 101
8.16 Inventory ........................................................ 101
8.17 Cash and cash equivalents ..................................... 101
3Report of the Board of Directors and Financial Statements
2024
8.18 Equity ............................................................ 101
8.19 Calculation of distributable funds .............................. 101
8.20 Financial statement transfers .................................. 101
8.21 Other current liabilities and accrued liabilities ................ 102
8.22 Liabilities from companies of the same group ................. 102
8.23 Long-term debt capital ......................................... 102
8.24 Provisions ....................................................... 102
8.25 Guarantees and commitments ................................. 102
SIGNATURES FOR THE FINANCIAL STATEMENTS AND
THE BOARD OF DIRECTORS’ REPORT ��������������������������������� 103
AUDITOR’S REPORT ���������������������������������������������������� 104
Report on the Audit of the Financial Statements ........................ 104
Other Reporting Requirements ........................................... 107
ASSURANCE REPORT ON ESEF FINANCIAL
STATEMENTS ������������������������������������������������������������� 108
ASSURANCE REPORT ON THE SUSTAINABILITY
REPORT �������������������������������������������������������������������� 109
4Report of the Board of Directors and Financial Statements
2024
Fiscal year 2024 in brief
In 2024, Verkkokauppa.com’s operating environment was characterised
by the economic downturn in the Finnish economy, weak employment
development and high interest rates in the early part of the year.
These weakened the consumer confidence, which remained low
throughout the year. Private consumption was sluggish, and purchases
of discretionary products in particular were cautious. Price competition
in consumer electronics remained intense and there were no signs
of a replacement cycle starting. In addition, companies postponed
investments and recruitments due to the economic uncertainty.
During the year, the financial performance was affected by weak
demand both in the online and the stores. Revenue decreased by 7.0
percent to EUR 467.8 million (502.9). The operating result decreased
by EUR 4.1 million to EUR 0.6 million (4.7). Its share of turnover was 0.1%
(0.9%). The comparable operating result was EUR 1.8 million (6.1) and the
result for the period was EUR -0.8 million (2.1).
In the challenging operating environment, the company focused
on improving operational efficiency, adapting costs to the prevailing
operating environment and managing cash flow effectively. In the
autumn, the company conducted change negotiations to align the
organization with the company’s long-term strategy and adapting it to
the prevailing demand environment.
In line with its strategy, the company is accelerating the shift to online
shopping by making it fast, easy and affordable. The company expects
that the customer shift to online shopping continues and that fast
deliveries continue to grow. During the year, the Company improved its
operations to provide the customers with the most efficient order-to-
delivery process and a superior customer experience. The company
invested in improving product discoverability and the presentation of
product availability in the online store. In addition, the capability for fast
deliveries was expanded. The company is Finland’s sole operator able
to serve 1.7 million consumers within an hour. In addition, the company
focused on sales of strategically important own brands, which increased
by 18% to 6.6% of the revenue. During the period, the company
continued to take measures to accelerate international growth. The
company aims to grow in Sweden, Denmark and the Baltic countries,
through existing and new partners as well as marketplaces.
Developments in the operating environment
The economic downturn in Finland created significant uncertainty in
the market situation in 2024. The labour market continued to weaken
which was reflected in a rise in the unemployment rate. Consumers’
confidence in their own and Finland’s economy remained weak
throughout the year, reducing private consumption. Consumers
considered the period very unfavourable for buying durable goods.
Price competition in the campaign-driven market remained fierce.
The renewal cycle for discretionary household products did not start
and consumers remained very price-conscious in the challenging
economic environment. The consumer electronics market contracted
compared to the previous year. The purchasing behaviour of business
customers was slightly more stable than that of consumers.
(Sources: Bank of Finland, economic forecast - December 2024, Statistics Fin-
land - consumer confidence)
Revenue and profitability development
Revenue declined by 7.0 percent and amounted to EUR 467.8 million
(502.9). The decline was driven by weak demand especially in
discretionary categories like Televisions, Mobile Phones, Gaming,
Cameras and Sports, while IT and Home appliances performed better.
Gross margin was 16.2 percent (16.1 %). Towards the end of
the financial year, the margin improved mainly due to successful
commercial negotiations and pricing strategy. However, the gross
margin was negatively impacted by low gross margin sales of electric
bikes and active inventory measures.
Personnel expenses decreased by 2.1 percent to EUR 35.9 (36.7)
million. Comparable personnel expenses decreased by 1.3 percent
to EUR 35.2 million (35.7). Other operating expenses decreased by 1.7
percent and amounted to EUR 32.9 million (33.5). Comparable other
operating expenses decreased by 2.1 percent to EUR 32.4 million (33.1).
Fixed costs totaled EUR 68.8 million (70.2), decreasing by 1.9 percent
from the comparison period. Comparable fixed costs decreased by 1.7
percent to EUR 67.6 million (68.8).
The company’s operating result (EBIT) was EUR 0.6 million (4.7), it
declined by EUR 4.1 million. Comparable EBIT was EUR 1.8 million (6.1),
which decreased by EUR 4.3 million. The decrease was mainly due to
lower sales volumes during the year.
Items affecting comparability totaled EUR -1.2 million (-1.4) and were
related to the reorganization, to the release of the e-ville deferred
purchase price liability and provision for the administrative fine from the
Office of the Data Protection Ombudsman.
Net result for the period was EUR -0.8 (2.1) million.
Earnings per share were EUR -0.02 (0.05).
Finance and investments
Cash flow from operating activities in 2024 totaled EUR 12.9 million
(20.3). The operating cash flow before the change in working capital
was EUR 7.0 million (11.3). The company’s net financial expenses were
EUR 2.2 million (1.7).
Investments in 2024 were EUR 1.8 million (2.4) and were mainly related
to the improvement of online customer experience. During the year, web
discoverability and accessibility were improved. In addition, the capability
REPORT OF THE BOARD OF DIRECTORS
5Report of the Board of Directors
2024
for fast deliveries was developed further. The investments included
capitalized wages and salaries at the amount of EUR 0.9 million (0.9).
The company renewed its financing arrangements in June 2024. At
the end of December, the company had EUR 19 million in bank loans and
an unutilized EUR 25 million revolving credit facility, which are valid until
June 2027. The principal of the bank loan is amortized every six months.
In December 2024, the company agreed to extend the lease
agreement for the Jätkäsaari real estate and land area. The extended
agreement is valid until December 2032.
Key figures
2024 2023 2022
Revenue, MEUR 468
503
543
Operating profit, % 0.1%
0.9%
0.4%
Comparable operating result, % 0.4%
1.2%
0.6%
Equity ratio, % 16.0%
16.2%
15.8%
Gearing, % 35.2%
21.5%
74.6%
Investments, MEUR 1.8
2.4
9.3
Cash flow from the operations, MEUR 12.9
20.3
1.5
Personnel at the end of the period 615
677
838
Key events during the fiscal year
On 18 January 2024, Verkkokauppa.com’s Shareholders Nomination
Board proposed the composition and remuneration of the Board of
Directors.
On 13 February 2024, Verkkokauppa.com’s Board of Directors
resolved on a new matching period under the performance matching
share plan for the years 2023–2027.
On 15 March 2024, Office of the Data Protection Ombudsman’s
Sanctions Board decided to impose an administrative fine of 856,000
euros on the company. The administrative fine is based on the Data
Protection Ombudsman’s interpretation, according to which the
company would have failed to specify the retention period for the
online store’s customer data in compliance with the EU’s General Data
Protection Regulation. Verkkokauppa.com consided the administrative
fine to be unfounded and appealed the decision to the Administrative
Court.
On 4 April 2024, Annual General Meeting adopted the annual
accounts for the financial period 1 January – 31 December 2023 and
resolved not to distribute a dividend.
On 3 May 2024, holding of Samuli Seppälä’s shares and votes in
Verkkokauppa.com Oyj fell below 30%.
On 6 May 2024, Jesper Blomster was appointed as a new Chief
Financial Officer (CFO) and member of the management team as of 7
May 2024.
On 30 May 2024, Verkkokauppa arranged a Capital Markets Day
for investors. The cornerstones of Verkkokauppa.com’s strategy are
growing the current business faster than the market, new openings,
such as assortment expansion, own brand products and new markets,
significant growth of the services business, and stronger profitability
by continuously developing our own operations and platform. The
company aims for growth by accelerating the online shift by making
shopping fast, extremely convenient and affordable.
On 16 July 2024, the company lowered its financial guidance for 2024
and provided preliminary information on financial performance for the
first half of the year.
On 13 August 2024, Following members were appointed to the
the Shareholders’ Nomination Board: Samuli Seppälä, Founder of
Verkkokauppa.com, representing himself, Erkka Kohonen (The Chair
of the Nomination Board), Senior Portfolio Manager, appointed by
Varma Mutual Pension Insurance Company and Karoliina Lindroos,
Head of Responsible Investment, appointed by Ilmarinen Mutual
Pension Insurance Company. Arja Talma, Chairperson of the Board of
Verkkokauppa.com Oyj, serves as an expert member of the Nomination
Board.
On 23 October 2024 Verkkokauppa.com announced the results of the
employee change negotiations. The personnel reductions are estimated
to bring in annual savings of EUR 2.5 million in personnel costs. The
savings are expected to materialize in full in 2025.
Personnel
The number of personnel decreased compared to the previous year and
was 615 (677) at the end of December 2024. The number of employees
includes both full-time and part-time employees.
In 2024, the leadership practices, organisation and common HR
practices were renewed in line with the strategy and the business.
The company invested in good leadership by finalising a multi-
year leadership development programme, Soihtu, which focuses
on coaching leadership. A new performance management system
was introduced and common approaches to setting objectives were
specified.
Sustainability was a key theme in the 2024 human resource
management framework. The company worked systematically to
promote diversity and equality in line with its objectives. There was
also a focus on managing working capacity. Mental health-related sick
leaves decreased compared to 2023. A staff survey was carried out
three times in 2024. The results were important for identifying areas
for improvement and for reforming the work community. The survey
continuously measured the development of the Leadership Index.
In autumn 2024, change negotiations were conducted to reform and
streamline the organisational structure to ensure profitable growth,
sufficient and correct resources for advancing strategic projects, the
development of purchasing and assortment management and the ability
to utilize technology more extensively in the organisation. The change
negotiations ended on 23 October 2024 and resulted in a reduction of
33 people. In addition to this, 7 employment contracts ended during the
negotiation period which will not be filled. The company provided both
external training on living with change and internal training on leading
change from within the school to support change negotiations.
The new strategy period started in 2024. In the strategy implemen-
tation, the company involved the people by encouraging them to plan
common operating models for actualizing the strategy use in their daily
work. The company also implemented the strategy through leadership
training, communication and by describing the meaning of the strategy
from the perspective of the competence and ways of working.
6Report of the Board of Directors
2024
Information presented in the notes
to the financial statements
Information on the company’s personnel and related parties is provided
in the notes to the financial statements.
Share trading and shares
Verkkokauppa.com share (VERK) in Nasdaq Helsinki stock exchange in
January-December 2024:
No. of shared traded 7,472,233
Share of no. of total shares, % 16.5%
Total value, EUR million 15,111,218
Last, EUR 1.34
High, EUR 2.71
Low, EUR 1.27
Average, EUR 2.11
Verkkokauppa.com market capitalization and shareholders
31 December 2024
Market capitalization (excl. own shares), EUR million 60.5
Number of shareholders (of which nominee shareholders)
18,737 (7)
Nominee registrations and direct foreign shareholders, % 10.98
Households, % 50.83
Financial and insurance corporations, % 16.06
Other Finnish investors, % 22.13
On 31 December 2024, the share capital was EUR 100,000 and the
total number of shares in the company was 45,354,532 including
86,345 treasury shares held by the company. The treasury shares have
no voting rights, and no dividend is paid on them. The treasury shares
accounted for 0.19 percent of all shares. In January–December 2024,
the company transferred a total of 59,374 treasury shares as part of the
remuneration of Board members and key employees.
Distribution of shareholders on 31 December 2024
Size of shareholding,
shares
Number of
shareholders
% of
shareholders
Number
of shares
% of shares
0–100
9,645
51.48%
367,5 40 0.81%
101–500
5,793
30.92%
1,474,406
3.25%
501–1,000
1,681
8.97%
1, 297,96 3 2.86%
1,001–5,000
1,356
7. 24%
2,923,700
6.45%
5,001–10,000
132
0.70%
986,988
2.18%
10,001–50 000
87
0.46%
1,735,488
3.83%
50,001–100 000
12
0.07%
833,829
1.84%
100,001–
24
0.12%
30,782,464
67.87%
Non-Finnish
shareholders
7
0.04%
4,952,154
10.92%
Total 18,737 100,00 % 45,354,532 100.00%
Shareholder breakdown by sector on 31 December 2024
Number of
shareholders
% of
shareholders
Number of
shares
% of shares
Households
18,247
97.39%
23,051,424
50.82%
Pension and
insurance institutions
10
0.05%
9,618,101
21.21%
Private companies
396
2.11%
2,914,762
6.43%
Fund companies
7
0.04%
2,763,295
6.09%
Other
47
0.25%
1,516,417
3.34%
Non-profit
organizations
23
0.12%
538,379
1.19%
Non-Finnish
shareholders
7
0.04%
4,952,154
10.92%
Total 18,737 100.00% 45,354,532 100.00%
Major shareholders on 31 December 2024
Nimi Number of shares % of shares
Seppälä Sam Samuli
13,347,000
29.43%
Varma Mutual Pension Insurance Company 4,365,932 9.63%
Ilmarinen Mutual Pension Insurance Company 2,174,309 4.79%
Mandatum Life Insurance Company Limited 2,112,900 4.66%
Nordea Nordic Small Cap Fund 1,416,669 3.12%
Investment Fund Evli Finland Smallcap 1,127, 380 2.49%
Investment Fund Danske Invest 812,612 1.79%
Skogberg Ville Johannes 634,266 1.40%
Special Investment Fund Aktia Mikro Markka 618,323 1.36%
Mutual Insurance Company Kaleva 506,325 1.12%
10 biggest shareholders, total 27,115,716 59.79%
Other shareholders 18,238,816 40.21%
Total 45,354,532 100.00%
Flagging notifications
On 3 May 2024, Verkkokauppa.com Oyj received a notification under
Chapter 9, Section 5 of the Finnish Securities Market Act according to
which the holding of Samuli Seppälä in Verkkokauppa.com Oyj shares
and votes fell below 30 percent on 3 May 2024. After the transaction,
the holding of Samuli Seppälä is 29.43 percent and 13,347,000 shares
of the total Verkkokauppa.com Oyj’s shares and votes.
Long-term incentive plans
On 13 February 2024, The Board of Directors of Verkkokauppa.com
decided on the start of the second earning period (Performance Share
Plan 2023–2027) for the CEO and the Management Team. The Plan
has three matching periods covering the financial years 2023–2025,
2024–2026 and 2025–2027. The Board of Directors decides annually
on the commencement of the matching period and its details. The
performance criterion for the second performance period 2024–2026
is Total Share Return (TSR).
7Report of the Board of Directors
2024
The purpose of the plan is to align the objectives of shareholders
and management to increase the value of the company in the long
term, to encourage management to invest personally in the company’s
shares, to retain the target group at the company, and to offer them a
competitive incentive plan in which participants may earn shares as a
reward for performance and their personal investment.
Section 7.12 of the notes section describes the company’s share-
based incentive plan in more detail.
No new shares will be issued in connection with the payment of the
share rewards and therefore the resolution will not have a dilutive effect.
Verkkokauppa.com’s management team
Verkkokauppa.com’s management team during 2024:
Member Until/from
Panu Porkka, CEO
Jesper Blomster, CFO
From 7 May 2024
Mikko Forsell, CFO
Until 6 May 2024
Nina Anttila, Chief Supply Chain Officer
Tatu Kaleva, Chief Commercial Officer
Pekka Litmanen, Chief Experience Officer
Satu Berlin, HR Director
From 1 March 2024
Jyrki Tulokas, Chief Strategy and Technolgy Officer
Suvituuli Tuukkanen, Marketing, Communications
and Sustainability Director
Acquisitions
The company did not make any acquisitions during the fiscal year 2024.
Change negotiations
Verkkokauppa.com announced on 23 October 2024 that as a result of
the change negotiations, the number of personnel will be reduced by
33 employees. In addition to this, 7 employment contracts ended during
the negotiation period, which will not be filled. The company offers all
dismissed persons, regardless of the length of their employment, a
change security package that includes e.g. personal career coaching,
change training and employment services.
Strategy
Verkkokauppa.com continues as a forerunner in the market with
the vision of creating the new normal for buying and owning. The
cornerstones of Verkkokauppa.com’s strategy are growing the current
business faster than the market, new openings, such as assortment
expansion, own brand products and new markets, significant growth
of the services business, and stronger profitability by continuously
developing the company’s own operations and platform.
Growing current business faster than the market
The company aims to strengthen its market leadership by accelerating
the online shift by making buying fast, extremely convenient and
affordable. As the only operator in Finland, Verkkokauppa.com already
delivers to 1.7 million consumers around the clock in one hour, every day
of the week. The company continues to optimize product flows, develop
the distribution network and further automate the intralogistics to enable
the continued development of the fastest deliveries on the market.
New openings: assortment expansion, own brand products and
new markets
During the strategy period, the company plans to expand the assortment
with a special focus on product areas that are optimally suited for fast
deliveries and Verkkokauppa.com’s platform. The company will continue
pilots in new market areas also outside Finland, making versatile use
of both own platform and selected partners. New operating models,
automation, as well as data will enable cost-efficiency and scalability.
Significant growth of the services business
Verkkokauppa.com seeks to offer consumers sustainable alternatives
for buying products. The company’s current customer financing service,
Tili, combined with the trade-in service, provides a strong foundation
for new valueadded services and product openings. The company’s
current trade-in service and the assortment of recycled products are
expanding. During the strategy period, Verkkokauppa.com will explore
new subscription-based services to the market.
Stronger profitability by continuously developing own operations
and platform
The company leverages artificial intelligence (AI) and data to operate
goods flows, to streamline operations and to provide a superior
personalized customer experience. Verkkokauppa.com’s own flexible
platform and extensive software development expertise enable versatile
utilization of leading technologies from selected partners and are the
basis for the capabilities that will be built during the strategy period.
Financial targets
Verkkokauppa.com’s long-term financial targets for the strategy period
2024–2028 are as follows:
1. Annual revenue growth (CAGR) of over 5 percent, faster than the
market
2. Annual operating result margin of over 5 percent by the end of the
strategy period
3. Fixed costs to less than 10 percent of revenue by the end of the
strategy period
4. To pay out 60-80 percent of annual net profit in quarterly growing
dividends
Board authorizations
The Annual General Meeting held on 4 April 2024 authorized the Board
of Directors to resolve on the repurchase of a maximum of 4,535,453
shares in one or more instalments using the company’s unrestricted
equity, taking into account, however, the provisions of the Finnish
Companies Act on the maximum number of treasury shares held
by the company or its subsidiaries. The proposed number of shares
8Report of the Board of Directors
2024
corresponds to a maximum of approximately ten percent of the total
number of shares in the company. The Board of Directors was authorized
to resolve on all other terms and conditions of the repurchase of the
shares. The authorization is valid until the next Annual General Meeting,
which is planned to be held on 8 April 2025, but no longer than until 30
June 2025. The authorization revokes previous unused authorizations
for the repurchase of the company’s own shares.
The Annual General Meeting held on 4 April 2024 authorized the Board
of Directors to resolve on a share issue of a maximum of 4,535,453
shares by one or several decisions. The proposed number of shares
corresponds to a maximum of approximately ten percent of the total
number of shares in the company and the Board of Directors may resolve
to issue either new shares or transfer the treasury shares held by the
company. The Board of Directors was authorized to resolve on all other
terms and conditions of the share issue. The authorization is valid until
the next Annual General Meeting, which is planned to be held on 8 April
2025, but no longer than until 30 June 2025. The authorization revokes
previous unused share issue authorizations. The Board of Directors has
used its authorization to transfer a total of 46,613 of the company’s own
shares for the payment of Board remuneration.
In addition to the above, the Board of Directors has no other valid
repurchase or share issue authorizations.
Board of Directors
The AGM confirmed the amount of Board members to be seven. Robin
Bade, Henrik Pankakoski, Kati Riikonen, Samuli Seppälä and Arja Talma
(Chairperson) were re-elected. Additionally, Irmeli Rytkönen and Enel
Sintonen were elected as new members.
The compositions of the Board committees were decided to be
as follows: members of the Audit Committee are Enel Sintonen
(Chairperson), Arja Talma (Vice Chairperson), Kati Riikonen and Irmeli
Rytkönen. Members of the Remuneration Committee are Arja Talma
(Chairperson), Robin Bade and Henrik Pankakoski
Verkkokauppa.com’s stock exchange release published on 4 April
2024 on the decisions of the Annual General Meeting, is available on the
company’s investor website.
Annual general meeting 2024
The Annual General Meeting was held in Helsinki on 4 April 2024.
The Annual General Meeting approved the financial statements for
the financial year 2023 and granted discharge to the members of the
Board of Directors and the CEO for the financial year 2023, approved
the remuneration report of the company’s bodies and authorised the
Board of Directors to decide on the repurchase and share issue of the
company’s own shares. In addition, the AGM approved the proposals
of the Shareholders’ Nomination Board for the election of the Board of
Directors and the auditor and their remuneration.
PricewaterhouseCoopers Oy was appointed as the company’s
auditor, and Mikko Nieminen, Chartered Accountant, will act as the
principal auditor.
The Annual General Meeting decided on 4 April 2024 that the
company will deviate from its dividend policy in order to improve the
equity ratio and that no dividend will be paid for the financial year 2023.
Corporate governance statement
and remuneration reports
The Corporate Governance Statement will be published in connection
with the Company’s Financial Statements for 2024 and on the
company’s website https://investors.verkkokauppa.com/en/corporate_
governance
Most significant risks and uncertainties
The company’s business involves risks and uncertainties, such
as risks related to the implementation of business strategy and
investments, risks related to procurement and logistics, information
systems, compliance with laws, rules, and regulations, as well as other
operational factors of the company’s business. The aforementioned
risks and uncertainties may impact the company’s business, financial
position, or results, and may require the company to change its business
model.
The risks and uncertainties described below may have a negative or
positive impact on the company’s business, financial position or results.
The company’s Board of Directors has approved a risk management
operating model based on the ISO 31000 standard. Risks are managed
and controlled in accordance with the Company’s Risk Management
Policy.
Strategic risks
The choices made by the company regarding the business strategy
and selected focus areas may prove to be uncertain in terms of
implementation in the short or long term and involve a positive
opportunity or negative threat. Uncertainties related to strategic
targets are continuously monitored as part of the company’s strategic
planning and risk management. The online shift, customers’ need for
fast deliveries or new norms for owning may materialise slower than
estimated or only partially, which may slow down business development
and growth.
Market risks
Verkkokauppa.com is exposed to global trade conflicts, macroeconomic
and geopolitical risks that could impact its operations and financial
performance. Uncertainties related to intensified geopolitical conflicts
and macroeconomics, as well as Finland’s economic downturn and
high unemployment rate, have weakened household and corporate
consumption and reduced investment capacity. Consumers’ confidence
in their own and Finland’s economy has remained low. Lower interest
rates, slowing inflation, and slightly better global economic conditions
are expected to support Finland’s economic growth in 2025. However,
the growth is expected to be relatively slow.
The consumer electronics industry is highly competitive and
therefore the company’s operating results and profitability are exposed
to market and industry changes and uncertainties, including consumer
9Report of the Board of Directors
2024
behaviour and general economic development. The company’s
business is seasonal, and the company’s revenue and operating profit
depend largely on the sales in the fourth quarter.
Operational risks
The company’s business depends on the uninterrupted operation of its
website and IT systems. The development of the operations requires key
personnel to have competence and capabilities in change management.
The company is also affected by risks related to business strategy and
investment execution as well as corporate transactions. Risks related
to the operational factors of the company’s business also include
logistics and supply chain management as well as business continuity
in possible exceptional situations. The geographical concentration
of the manufacturing of procured products in specific individual
countries or parts thereof increases risks related to the supply chain
and availability of goods. Delays and disruptions in the supply chain,
logistics or information systems, as well as uncertainties related to
logistics partners, can hamper business operations. These operational
risks are managed by developing appropriate backup systems and
alternative operating methods and by investing in the uninterrupted
operation of information systems. Operational risks are also covered
by insurance. The company has identified AI-related risks, and they are
managed through an AI management model. According to the model, all
AI systems will be deployed through an impact assessment. This is how
we ensure compliance with future EU AI law.
Changing and increasingly complex legislation may require significant
changes in operations and lead to additional costs. Failure to comply
with the legislation may result in fines or damages. The company’s
reputation, recognition and trust among consumers is a competitive
advantage, and negative publicity related to, for example, regulation,
product safety of private label products or responsibility may have
adverse financial effects on the company. Verkkokauppa.com’s goal is to
convey and publish consistent, correct, relevant and reliable information
in a timely manner to the market, and there is a risk that the company
will fail in its reporting to the market. A possible prolonged disruption
related to business operations or prolonged poor profitability of business
operations may affect the company’s liquidity or financial position.
Financial risks
The identified risks regarding the continuity of the company’s business
are related to the efficient and economical use of capital. The purchase
prices and commercial terms of purchased products, inventory curation
and turnover, and commercial success in reselling products may pose
risks to profitability and cash flow. Verkkokauppa.com also provides
financial services at its own risk to consumer customers, which involves
a risk of possible credit losses. In addition, the company’s external
financing involves conditions whose possible non-fulfillment could
prematurely cause the loans to mature or the need to resettle with
changed terms. The risks and uncertainties described above may have
an impact on the Company’s business, financial position or results of
operations and may require the Company to change its business model.
Accident, Responsibility, and Security Risks
The company prioritizies occupational safety in all of its operations.
Monitoring near-miss incidents and other safety issues is a regular
practice, and the company continuously makes improvements to
enhance safety through risk management.
Regarding responsibility risks, the company assesses the negative
social, human rights, and/or environmental impacts of its operations,
both within our own activities and at various stages of the value chain.
Additionally, during the reporting year, the company conducted a double
materiality analysis to identify the company’s key sustainability topics
and their impacts on the environment, people, and society, as well as to
evaluate the related financial risks and opportunities for the company’s
business. The assessment of impacts, risks, and opportunities covered
not only the company’s own operations but also the entire identified
value chain. The double materiality assessment is discussed in more
detail in the company’s sustainability report, which is included as part of
the board’s report.
Information security and data protection are central to all of the
company’s activities. Verkkokauppa.com handles a large amount
of customer data, which is why the company invests heavily in
the processing of personal data and the protection of all company
information at various levels. The company continuously monitors
and develops its information security (ISO27001) and data protection
(ISO27701) management systems. The company is prepared at multiple
levels for various cyber-attacks to avoid business interruptions and data
breaches.
Events after the reporting period
After the reporting period, the company made the decision to commit
to the Science Based Targets (SBTi) climate initiative and reduce its
greenhouse gas emissions in line with the 1.5-degree warming target of
the Paris Agreement. For years, the company has systematically reduced
its emissions with the aim of reducing the emissions of its own operations
(scope 1 and 2) to zero by the end of 2025. With the SBTi commitment,
the company will set science-based climate targets to reduce indirect
emissions (scope 3) in the value chain. The commitment is also recorded
in the environmental policy drawn up during the reporting year, which is
publicly available on the company’s website.
On 28 January 2025, Verkkokauppa.com Oyj’s Shareholders’
Nomination Board proposed to the Annual General Meeting, planned
to be held on 8 April 2025, that the Board of Directors consists of seven
members and that Robin Bade, Henrik Pankakoski, Kati Riikonen, Irmeli
Rytkönen, Samuli Seppälä, Enel Sintonen and Arja Talma be re-elected
as Board members.
On 28 January 2025, the company announced preliminary results for
2024.
On 12 February 2025, the Board of Verkkokauppa.com Oyj resolved
on a new Performance Period under Performance Matching Share
Plan 2023-2027. The aim of the plan is to align the objectives of the
shareholders and the management to increase the value of the Company
in the long-term, to encourage the management to personally invest in
the Company’s shares, to retain the target group at the Company, and
to offer them a competitive incentive plan in which the participants may
earn shares as a reward for performance and their personal investment.
10Report of the Board of Directors
2024
On 24 February 2025, Helsinki Administrative Court has upheld
the administrative fine imposed on Verkkokauppa.com by the Data
Protection Ombudsman’s Sanctions Board. The company has
recognized a provision for the administrative fine in its first quarter 2024
results.
Board proposal for profit distribution
According to the company’s dividend policy, its target is to pay out
60-80 percent of annual net result in quarterly growing dividends.
The company’s 2024 net result was EUR -0.8 million. Thus, the Board
of Directors will propose to the Annual General Meeting 2025 that no
dividend be paid for the financial year 2024.
Market outlook for 2025
General market demand is expected to remain subdued in the first half
of the year due to low consumer confidence. In the second half of the
year, private consumption is expected to recover slowly as purchasing
power strengthens. The purchasing power will be supported by rising
income levels, slowing inflation and lower interest rates. Competition is
expected to remain tight.
Financial guidance for 2024
Verkkokauppa.com expects its revenue and comparable operating
profit for 2025 to increase. In 2024, the company’s revenue was EUR
467.8 million and comparable operating profit was EUR 1.8 million.
The guidance includes uncertainties related to changes in purchasing
power and consumer behavior. Verkkokauppa.com’s business is
seasonal, and the company’s revenue and operating profit depend
largely on the sales in the fourth quarter.
Alternative performance measurement
In this release, Verkkokauppa.com Oyj presents certain key figures
that are not accounting measures defined under IFRS and therefore are
considered as Alternative Performance Measures (APM). Verkkokauppa.
com Oyj applies in the reporting of alternative performance measures
the guidelines issued by the European Securities and Market Authority
(ESMA).
Verkkokauppa.com Oyj uses alternative performance measures
to reflect the underlying business performance and to enhance
comparability between financial periods. The company’s management
believes that these key figures provide supplementing information on
the income statement and financial position.
Alternative performance measures do not substitute the IFRS key
ratios.
Financial key figures
1–12/2024 1–12/2023 1–12/2022
Revenue, million euros 468 503
543
Gross profit, million euros 75.8 80.9 80.6
Gross margin-% 16.2% 16.1% 14.8%
EBITDA, million euros 7.5 11.1 7.8
EBITDA-% 1.6% 2.2% 1.4%
Operating result, million euros 0.6 4.7
2.3
Operating result-% 0.1% 0.9% 0.4%
Comparable operating result,
million euros
1.8 6.1
3.5
Comparable operating result- % 0.4% 1.2% 0.6%
Result for the period, million euros -0.8 2.1 0.3
Equity ratio, % 16.0% 16.2%
15.8%
Gearing, % 35.2% 21.5% 74.6%
Personnel at the end of the period 615 677 838
Share performance indicators
1–12/2024 1–12/2023 1–12/2022
Basic earnings per share, euros -0.02 0.05 0.01
Diluted earnings per share, euros -0.02 0.05 0.01
Number of issued shares 45,355
45,355
45,355
Number of treasury shares, thousands 86 146 271
Weighted average number of shares
outstandaing
45,244 45,209 45,083
Dilutes weighted average number of
shares outstandaing
45,287 45,277
45,342
Equity per share, € 0.62 0.63 0.59
Dividend per share, €* - - -
Payout ratio, % - - -
Effective dividend yield, % - - -
Price per earnings ratio (P/E ratio) - - -
Lowest share price 1.27 2.24 2.83
Highest share price 2.71 2.99 7.43
Average share price 2.11 2.64 4.59
Period end share price 1.34 2.60
2.84
Market value of the shares at
period end, MEUR
60.5 117.5 128.6
The number of traded shares 7,472 6,886 9,197
Traded shares of all shares, % 16.5% 15.2% 20.3%
* The Board of Directors will propose to the Annual General Meeting 2025 that
no dividend be paid for the financial year 2024
11Report of the Board of Directors
2024
Formulas for key ratios
Key ratio Definitions Basis of alternative performance measures adopted
Gross profit Revenue - materials and services
Gross profit shows the profitability of the sales
Gross margin, %
(Revenue - materials and services) /
Revenue
x 100
Gross margin measures the profitability of the sales of
Verkkokauppa.com
EBITDA Operating result + depreciation + amortization
EBITDA shows the operational profitability
EBITDA, %
(Operating result + depreciation + amortization) /
Revenue
x 100
EBITDA measures the operational profitability of
Verkkokauppa.com
Operating result
Result for the period before income taxes and net
finance income and costs
Operating result shows result generated by operating
activities
Operating margin, %
Operating result /
Revenue
x 100
Operating margin measures operational efficiency of
Verkkokauppa.com
Items affecting comparability
Material items that are not part of normal operating activities
such as expenses related to restructuring costs including
workforce redundancy and other restructuring costs, impairment
losses of fixed assets, gain or losses recognized from disposals
of fixed assets/businesses, transaction costs related to business
acquisition, compensations for damages and legal proceedings
Comparable operating result
Comparable operating result is result adjusted with
items affecting comparability
Comparable operating result allows comparison of
operating result in different periods without the impact
of extraordinary items not related to normal business
operations
Comparable operating result margin %
Comparable operating result /
revenue
x 100
Comparable operating margin measures comparable
operational efficiency of Verkkokauppa.com
Equity ratio, %
Total equity /
Balance sheet total – advance payments received
x 100
Equity ratio measures Verkkokauppa.com’s solvency,
ability to bear losses and ability to meet commitments
in the long run
Interest-bearing net debt
Interest-bearing debts (lease liabilities, loans from financial
institutions) - cash and cash equivalents
Interest-bearing net debt measures Verkkokauppa.com
Group’s indebtedness
Gearing, %
Interest-bearing debts (lease liabilities, loans from financial
institutions) - cash and cash equivalents /
Total equity
x 100
Gearing measures the relation of equity and interest-
bearing net debt of Verkkokauppa.com and shows the
indebtedness of the company
Investments
Increases in intangible assets, property, plant and
equipment during the financial period
Investments provide additional information regarding
operating cash flow demands
Net investments
Investments in intangible and tangible assets - proceeds from the
sale of fixed assets. Net investments do not include non-capitalized /
unfinished acquisitions
12Report of the Board of Directors
2024
Key ratio Definitions Basis of alternative performance measures adopted
Earnings per share, basic
Result for the period attributable to equity holders of the company /
Weighted average number of shares outstanding
Earnings per share measures the result for the
period attributable to equity holders of the Group
Earnings per share, diluted
Result for the period attributable to equity holders of the company /
Weighted average number of shares outstanding
+ dilutive potential shares
Equity per share Equity/ Number of shares at reporting day
Dividend per share Dividend / Number of shares at reporting day revised by share split
Dividend payout ratio, %
Dividend per share revised by share split /
Earnings by share revised by share split
x 100
Effective dividend yield % Dividend per share / Share price at reporting day x 100
Price per earnings ratio (P/E ratio)
Share price at reporting day /
Earnings per share
Traded shares of all shares, %
The number of changed share during the reporting period /
The average number of shares during the reporting period
x 100
Reconciliation of alternative key ratios
EUR million 1–12/2024 1–12/2023
Comparable operating result 1.8
6.1
Items affecting comparability
-1.2
-1.4
Operating result 0.6 4.7
Items affecting comparability
EUR million 1–12/2024 1–12/2023
Release of deferred purchase price 0.6
-0.2
The Office of the Data Protection Ombudsman
- An administrative fine and other legal fee
-1.0
-
Restructuring -0.8
-1.2
Items affecting comparability total
-1.2 -1.4
13Report of the Board of Directors
2024
GENERAL INFORMATION
Basis for preparation
General basis for preparation of sustainability statement
Verkkokauppa.com (hereafter the company) has prepared its
sustainability statement in accordance with the Finnish Accounting
Act and the requirements set by the European Sustainability Reporting
Standards (ESRS). The scope of the sustainability report aligns with
that of the financial statements and covers all the companies within the
Group. The parent company of the Group is Verkkokauppa.com Oyj, a
Finnish public limited company whose shares are traded on the Nasdaq
Helsinki stock exchange.
The entire upstream and downstream value chain has been considered
in the preparation of the sustainability statement. The value chain is
disclosed in the Strategy, business model and value chain section.
In the 2024 reporting, the company has not used the option to omit
information related to intellectual property, know-how, or the results of
innovation. The company has not used the exception that allows for the
omission of information about ongoing developments or matters under
negotiation in exceptional cases, in accordance with Article 19a (3) and
Article 29a (3) of Directive 2013/34/EU.
Disclosures in relation to specific circumstances
The company reports information related to its upstream and downstream
value chain as part of its sustainability reporting. The metrics related to
upstream and downstream value chain, their preparation principles, and
potential uncertainties are presented in section E1– Reporting principles.
The company acknowledges that the quality, availability, and evaluation
of information at the beginning and end of the value chain may cause
uncertainty in the reported Scope 3 emissions. The company regularly
assesses and develops the reporting accuracy of this data.
The metrics reported within the company’s Sustainability statement
have only been validated by the assurance provider.
The company has not included information in its sustainability
statement that is based on other legislation or other sustainability
reporting standards or frameworks.
The utilization of transitional provisions is presented in the Disclosure
requirements in ESRS covered by the undertaking’s sustainability
statement section.
Governance
The role of the administrative, management
and supervisory bodies
Verkkokauppa.com’s Board of Directors is the highest authority
responsible for the sustainability of the Group. The Board approves the
Group’s strategy, Code of Conduct, policies, and guidelines, to which
the targets and principles of responsible business are linked.
The CEO of Verkkokauppa.com is responsible for the implementation
and execution of the Code of Conduct, policies, and guidelines approved
by the Board, including sustainability targets and action plans within
the company. Members of the Management Team are responsible for
the implementation of the Code of Conduct and policies within their
respective areas of responsibility, as defined by the CEO. In 2024, the
Management Team consisted of eight members, all of whom, except
the CEO, were employees.
The company’s Board represents a diverse range of expertise and has
a broad professional background, ensuring that work and international
experiences, age, and gender complement and support each other to
enhance the company’s business and shareholder value. The Board and
the Management Team have relevant experience in terms of industries,
products, and geographical locations.
In the 2024, the company’s Board consisted of seven members: four
women and three men. Of the Board members, 71% (five persons) were
independent.
Composition of the Board of Directors:
Arja Talma, Chair
Robin Bade
Henrik Pankakoski
Kati Riikonen
Samuli Seppälä
Irmeli Rytkönen (as of 4 April 2024)
Enel Sintonen (as of 4 April 2024)
Johan Ryding (until 4 April 2024)
Kai Seikku (until 4 April 2024)
CEO and Management Team:
Panu Porkka, Chief Executive Officer
Jesper Blomster, CFO (as of May 7 2024)
Nina Anttila, Chief Supply Chain Officer
Tatu Kaleva, Chief Commercial Officer
Pekka Litmanen, Chief Experience Officer (CXO)
Jyrki Tulokas, Chief Strategy and Technology Officer
Suvituuli Tuukkanen, Chief Marketing, Communications and
Sustainability Officer
Satu Berlin, Chief HR Officer (as of 1 March 2024)
Mikko Forsell, CFO (until 6 May 2024)
SUSTAINABILITY STATEMENT
14Report of the Board of Directors
2024
Diversity of governing bodies by gender
2024 (%)
Situation at the end of year
Men Women
Board of Directors 43 57
Top management 62 38
The roles and responsibilities of the administrative,
management and supervisory bodies
The company’s Board of Directors outlines and approves the objectives
of the sustainability work, and the content related to their disclosure. The
Board also approves the company’s Code of Conduct, double materiality
assessment including the analysis of the company’s material impacts,
risks, and opportunities, including climate risks and opportunities,
ensuring they are integrated into the company’s strategic decision-
making. Additionally, the Board approves the sustainability program
based on the themes identified through the double materiality analysis.
The Board’s Audit Committee acts as a preparatory and monitoring
group that oversees the progress of the company’s sustainability work
according to the objectives set in the sustainability program, with
progress and monitoring reported to it at least twice a year, considering
both strategic and operational perspectives. During the reporting year,
sustainability issues were closely monitored due to preparations for
new reporting requirements, including the assessment of the linkage
between material impacts, risks, and opportunities and the company’s
strategy.
Sustainability issues are regularly addressed by the company’s
Management Team, which decides on actions and monitors their
implementation according to the normal annual cycle. The Management
Team is supported by two steering groups.
The Sustainability Steering Group acts as a preparatory and
monitoring body for sustainability work. The steering group includes
members of the Management Team covering the company’s material
sustainability issues, the head of sustainability, and other individuals in
expert roles as needed. The chair of the steering group is the company’s
Chief Marketing, Communications and Sustainability Officer, under
whose leadership the sustainability unit is responsible for coordinating
the implementation of the sustainability program together with the
members of the Sustainability Steering Group, with operational
responsibility distributed throughout the organization.
The CSRD Steering Group, which started its operations during the
reporting year, supports and oversees the preparation for sustainability
reporting in accordance with the Corporate Sustainability Reporting
Directive, ensures the resourcing of reporting, and is responsible for
ensuring that the company’s reporting meets the set requirements.
Additionally, the group holds preliminary discussions on ESG topics that
support reporting readiness and prepares the necessary materials for
the company’s Audit Committee and Board of Directors. The chair of
the steering group is the company’s CFO, under whose leadership the
finance department is responsible for the company’s external reporting,
including sustainability reporting, together with the sustainability unit.
The group consists of members of the Management Team and experts
who participate in the process either directly or indirectly.
Skills and expertise available for management and
supervisory bodies to oversee sustainability matters
The company develops and maintains expertise in monitoring
sustainability issues and regularly invests in staff training and
strengthens the skills of experts. The company has extensive expertise
related to sustainability, which supports supervisory bodies in ensuring
that the necessary information on sustainability issues, as well as
identified impacts, risks, and opportunities, is available.
The company’s CEO has extensive and long-standing expertise in
the retail industry, including material sustainability topics. In his role, he
ensures that the company has access to the necessary sustainability
expertise and knowledge. The company’s Management Team includes
the Chief Marketing, Communications and Sustainability Officer who
has appropriate expertise in sustainability themes relevant to the
company based on many years of experience. In their role, they ensure
that sustainability issues are a focus of the company’s Management
Team. Additionally, the company employs experts specializing in
sustainability issues within the sustainability unit and the finance
department, as well as experts specializing in individual relevant
sustainability topics across all departments.
The company’s Board of Directors, Audit Committee and
Management Team monitor the progress of sustainability reporting
and targets and regularly assess the need for expertise development.
Expertise is continuously developed through training and external
experts, ensuring that governance, management, and supervisory
bodies have up-to-date and diverse information about sustainability
issues. The company ensures that expertise and skills are closely
connected to the company’s relevant impacts, risks, and opportunities.
Decision-making is based on comprehensive and up-to-date
information, which supports the company’s strategic objectives. In
2024, the assessment of impacts, risks, and opportunities was based
on a comprehensive double materiality analysis, utilizing both internal
expertise and external expert support to ensure that impacts, risks, and
opportunities were assessed broadly and comprehensively.
Information provided to and sustainability matters
addressed by the company’s administrative,
management and supervisory bodies
As part of the double materiality analysis process, the company’s
Board of Directors, Audit Committee, and Management Team reviewed
identified impacts, risks, and opportunities related to sustainability
issues and provided feedback on their assessment and scoring.
Principles, actions, and targets related to sustainability issues and
reporting are reported to supervisory bodies whenever they are
updated and when new principles, targets, or actions are developed.
In 2024, the company updated its sustainability program, considering
the identified impacts, risks, and opportunities. At the same time, a
new environmental policy was developed, and the Personnel policy
was updated based on the identified impacts, risks, and opportunities.
Necessary changes were addressed in the required supervisory body
meetings. The targets and metrics of the sustainability program were
approved by the Board of Directors, and any updates to them, as well
as the introduction of new targets or metrics, are reported to the board.
15Report of the Board of Directors
2024
The approved targets and metrics are used to monitor the progress
of sustainability efforts. The integration of the identified material
sustainability matters with the company’s strategy is presented in the
Impacts of strategy on sustainability issues section and the process to
identify material impacts, risks and opportunities is presented in the
Impact, risk and opportunity management section.
During the 2024 financial year, the following sustainability-related
topics were discussed in the meetings of the company’s Board of
Directors, Audit Committee, and Remuneration Committee:
1) Board of Directors:
• CSRD reporting and status updates
• Review and approval of the double materiality analysis, linking key
impacts, risks, and opportunities to the company’s strategy
• Update of the sustainability program
• Science-based climate targets
• Risk management, including risks related to data protection,
cybersecurity, and ESG topics
2) Audit Committee:
• CSRD reporting and status updates
• Double materiality analysis, including the handling of all identified
impacts, risks, and opportunities
• Update of the sustainability program
• Sustainability targets and roadmap for 2024
• Results of internal audits related to sustainability issues
• Risk management, including risks related to data protection,
cybersecurity, and ESG topics
3) Remuneration Committee:
• Personnel matters and strategy broadly, such as well-being,
diversity, equity, and inclusion, as well as engagement
The following sustainability-related topics were discussed in the
Management Team meetings:
• CSRD reporting and status updates, including the handling of all
identified impacts, risks, and opportunities
• Double materiality analysis
• Update of the sustainability program, program metrics, and
monitoring model
• Environmental policy
• Employee satisfaction survey results, eNPS
• Cybersecurity, data protection, and information security
• Diversity, equity, and inclusion, as well as engagement
• Practices to ensure the responsibility of the supply chain
• Personnel matters and strategy broadly, such as well-being,
diversity, equity, and inclusion, as well as engagement
Integration of sustainability-related
performance in incentive schemes
The remuneration of the company’s governing bodies is based on the
company’s remuneration policy. The Remuneration Committee of
the company’s Board of Directors prepares the remuneration report
for the board’s review, and the board approves it for presentation to
the general meeting. Shareholders make an advisory decision on the
report at the annual general meeting. In accordance with the company’s
current remuneration policy, the remuneration applied in 2024 has
supported the company’s long-term financial success and the creation
of shareholder value.
In 2024, the performance of management remuneration is assessed in
relation to one sustainability-related target, which concerns minimizing
product returns regarding “change of minds”. The sustainability
target is to keep the return rate below 1% annually, which supports the
company’s principle of selling products based on need while reducing
customer returns and waste. The return rate is used to monitor the
company’s sustainability performance, and the metric is included in
the management incentive system with a 10% weighting. The scope
of the targets is different from the sustainability program target which
is defined in section E5 Targets related to resource use and circular
economy. The 2024 incentive system did not include targets directly
related to greenhouse gas emissions.
Statement on due diligence
Core elements of due diligence
Paragraphs in the
sustainability statement
Page numbers
a) Embedding due diligence
in governance, strategy
and business model
General information –
Governance
General information –
Strategy
1–4, 5–8
b) Engaging with affected
stakeholders in all key
steps of the due diligence
General information –
Strategy
General information
– Impact, risk and
opportunity management
5–8, 8–10, 17–19
c) Identifying and assessing
adverse impacts
General information –
Strategy
General information
– Impact, risk and
opportunity management
11–16, 17–19
d) Taking actions to address
those adverse impacts
E1, E2, E5, S1, S2, S4 –
Actions and resources
G1 –
Prevention and
detection of corruption and
bribery
32–33, 39, 41–42,
49–50, 57 and 59
61–62
e) Tracking the
effectiveness of
these efforts and
communicating
E1, E2, E5, S1, S2, S4 –
Targets (MDR-T, MDR-M)
33–37, 39, 42–45,
50–55, 58, 60
16Report of the Board of Directors
2024
Risk management and internal controls
over sustainability reporting
Risks related to sustainability reporting are identified, assessed,
evaluated, and managed as part of the company’s comprehensive risk
management work. The company’s Board of Directors has approved
the company’s risk management framework, which is based on the ISO
31000 standard. Risk management is an integral part of the company’s
management system and is managed according to an annual cycle. The
company assesses risks based on their occurrence, probability, and
impact, considering financial aspects as well as impacts on operations,
safety, and strategic objectives.
Sustainability reporting is part of the company’s external reporting,
overseen by the company’s CFO. The processes related to the
preparation of the sustainability report are the responsibility of the
finance department and the sustainability unit, including adhering
to reporting timelines and identifying risks related to sustainability
reporting. The risks related to sustainability reporting identified through
the company’s risk management process concern the adequacy
of the reporting content and ensuring the availability and accuracy
of background information. Appropriate measures are defined for
managing the identified risks in accordance with the risk management
process.
To ensure the comprehensiveness of the Sustainability report´s
content and background information, the reporting is carried out by
individuals familiar with the subject, who actively follow applicable
directive standards and legislative developments. Additionally,
roles have been defined to ensure the availability and accuracy of
background information, the responsibility for collecting and providing
the necessary information and implementing measures to supplement
any missing information. Sustainability reporting is also supported by
third-party assurance.
To develop the internal control processes of sustainability reporting,
the company introduced monitoring controls during the reporting year
and initiated the CSRD Steering Group work described in the The roles
and responsibilities of the administrative, management and supervisory
bodies section. The company continues to develop the internal control
of sustainability reporting as part of its control environment. Progress
in sustainability reporting, the availability of necessary information,
and other reporting-related observations were regularly reported to
the company’s Management Team, Audit Committee, and Board of
Directors as part of status reporting.
17Report of the Board of Directors
2024
Strategy
Strategy, business model and value chain
Business model
Verkkokauppa.com is a Finnish retail company specializing in consumer
electronics and home and leisure products, primarily operating in
Finland and Estonia. It serves both consumer and business customers
online and through four stores located in Helsinki, Pirkkala, Raisio, and
Oulu. The company’s pick-up warehouses are located in Helsinki and
Vantaa. Additionally, the company has consumer and wholesale sales in
the EU and EEA regions.
Verkkokauppa.com’s product range includes over 60,000 products,
with more than 2,800 products under its private label brands. The core
categories of the product range are computers and peripherals, TV and
video, mobile devices, and home appliances. The company’s service
range includes installation, maintenance, and recycling services,
trade-in services for used consumer electronics, visibility sales, and
financing services.
In 2024, the company’s revenue was 467.8 million euros (502.9) and
the net profit was negative 0.8 million euros (2.1). At the end of the year,
the company had 615 employees, of which 597 were in Finland, 15 in
China, and 3 in Hong Kong.
The company’s strategy guides its actions in gathering, developing,
and securing production inputs.
Significant production inputs and resources enabling operations:
• Own workforce
• Multichannel marketplace
• Business enablers such as the supply chain and supplier
relationships, local warehouses, delivery methods, and own ERP
system and e-commerce platform
• Intangible assets such as brand and recognition, service concept,
product expertise and assortment management, customer and
transaction data, product information and reviews
• Financial resources
• Owners
The added value and benefits produced by the company for stakeholders:
• Salaries and rewards, career paths and skill development,
community and engagement for employees
• A wide product range and affordable prices, easy transactions,
personalized customer experience, tailored services for businesses
of all sizes, customer satisfaction for customers
• Purchases and a modern distribution channel to reach consumer
and business customers for suppliers
• Profit for owners
• Taxes and tax-like payments for society
• Circular economy products and services to extend product
lifecycles for the environment
The company’s suppliers include well-known international electronics
brands and wholesalers in Finland and abroad, as well as smaller
suppliers. The company’s procurement is decentralized and does not
constitute a significant part of any supplier’s annual production.
Returns & repair
Value
chain
Production - upstream value chain
Consumer – down-stream
value chain
Raw material production
and sourcing
Retail and
service
End-useUseDistributionWarehousingFreight
Prodiction and
assembly
Verkkokauppa.com
own operations
Value chain
18Report of the Board of Directors
2024
Strategy
Verkkokauppa.com’s vision is to create a new norm of buying and owning
and to be a industry leader. The company leverages the optimization of
goods flows, automated internal logistics, and distribution networks to
achieve the fastest and most comprehensive deliveries in the market.
The company’s expanding fast delivery range is internationally leading.
The cornerstones of the strategy are the fastest deliveries, operational
excellence, curated selection, new business models, and a strong brand.
The company effectively utilizes sustainable new business models and
the growing customer interest in high-quality selection and smooth
customer experience, which are expected to support the strengthening
of the company’s market position.
Impacts of strategy on sustainability issues
A responsible approach is a central part of Verkkokauppa.com’s
strategy and vision of creating a new norm for buying and owning.
The company’s sustainability-related targets form the company’s
sustainability program, which was updated during the reporting year
and approved by the Board of Directors at the end of the year. The
updated sustainability program is presented in the Verkkokauppa.com’s
Sustainability Program table along with in connection to each relevant
sustainability topic.
The key topics of the updated program are sustainable consumption
based on a circular economy, ensuring sustainable operations and
supply chains, growth and well-being of the company’s own personnel,
and maintaining exemplary business practices. The program is set
for the company’s 2024–2028 strategy period and is aligned with the
company’s strategy and double materiality analysis. The program’s
targets apply to all customer segments and geographical areas. As is
common for the retail sector, the company’s most significant climate
and other environmental impacts occur at the beginning of the value
chain, in the various stages of manufacturing the products sold.
The company’s extensive supplier network and the product range’s
emphasis on consumer electronics require strong processes to ensure
the sustainability of supply chains, such as ensuring working conditions
and climate targets in the value chain and the continuous development
of processes. The environmental impacts related to the value chain
are detailed in the Detailed information about the processes to identify
and assess material impacts, risks, and opportunities related to the
environment section.
The company’s strategic target of increasing the share of private
label products in revenue highlights the importance of sustainability
issues related to imports, such as evolving eco-design regulations. In
turn, the development of the service business, increases the company’s
opportunities to promote circular economy and thereby reduce several
environmental impacts. The sale of used products and services that
promote a circular economy are the most significant products and
services related to the company’s sustainability targets, although their
share of the company’s revenue is currently small.
The company’s strategic focus on fast deliveries will increase the
company’s indirect greenhouse gas emissions from distribution in
the short and medium term. However, increasing the share of pick-up
and fast deliveries can reduce the need for packaging materials, as
well as the efficiency of operations and the broader use of packaging
automation. The company’s investment in the use of data and artificial
intelligence enhances material flow and thereby promotes energy
efficiency and reduces negative environmental impacts. Additionally,
these measures improve the company’s ability to collect, utilize, and
report sustainability information.
One of the key long-term sustainability challenges is reducing those
indirect value chain emissions with which the company has no direct
connection with, such as those arising from partnerships, as well as
transitioning to a circular economy in a financially sustainable way. The
company considers all markets and customer groups equally significant
in relation to its sustainability targets.
Through its updated sustainability program, the company has defined
targets, with monitoring set to begin in early 2025. Since performance-
based targets were not largely set at the beginning of the reporting year,
the company has not monitored targets or the impact of its actions or
principles in relation to significant sustainability-related impacts, risks,
and opportunities during the reporting year. An exception to this is the
performance-based target related to resource use and the circular
economy, specifically the product return rate, which the company
has been tracking for several years and reports in section E5 Targets
related to resource use and circular economy. Additionally, the company
reports on a strategic target regarding next-day deliveries in section
S4 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities.
19Report of the Board of Directors
2024
Verkkokauppa.Com’s sustainability program
The company’s own sustainability topics Target KPI ESRS topic
PASSIONATELY ON CUSTOMERS’
SIDE FOR CIRCULAR FUTURE
1.
Double-digit annual growth in the sales of circular products, services and solutions
Growth of total net sales from circular
products and services
E5
2.
Extending trade-in service every year to cover relevant part of our HERO-assortment by 2028*
Annual growth in the share of product
categories covered with trade-in-service
E5
3.
Keeping product return rate under 1%
Overall product return rate (%) including
“change of minds” as well as service returns
E5, S4
ENSURING RESPONSIBLE
OPERATIONS
AND SUPPLY CHAINS
4.
Reducing emissions according to science-based targets (SBTi):
• Scope 1 & 2: 0 tCO
2
by the end of 2025
• Scope 3: engage suppliers and partners to SBTi, 78% in terms of emissions by the end of 2030**
Greenhouse gas emissions (Scopes 1,2)
Percentage of suppliers and partners com-
mitted to SBTi, measured in terms of emis-
sions
E1
5.
Ensuring that 100% of our direct suppliers provide adequate working conditions
Percentage of direct suppliers showing proof
of adequate working conditions
S2
FOSTERING WELL-BEING AND
SUCCESS OF OWN PERSONNEL
6.
Improving employee engagement to exceed benchmark by 2028
Engagement score
S1
7.
Improving employee well-being by 0.1 points annually
Well-being score
S1
8.
Improving experience of diversity and inclusion by 0.1 points annually
DEIB score
S1
MAINTAINING EXEMPLARY
BUSINESS CONDUCT
Ensuring compliance by anticipating regulation and promoting a compliance culture throughout the organization
Performance is monitored as part of operational activities
G1
* The HERO product range refers to a well-circulating and online-suitable product selection of approximately 30,000 product codes defined in the company’s strategy.
This range supports the company’s customer value promise of fast deliveries and includes the company’s customers’ most desired products.
**The formulation of the target is preliminary. The final formulation requires validation by the SBTi organization to ensure that the target is sufficient from the perspective of the 1.5-degree climate scenario.
20Report of the Board of Directors
2024
Interests and views of stakeholders
The company’s key stakeholders are customers, personnel, suppliers
and other partners, as well as owners and the capital market. In addition,
the company has assessed the key interests, perspectives, and human
rights aspects of the value chain workers.
The company engages in active dialogue with its stakeholders to
strengthen the understanding of expectations directed at the company
and to consider them in the company’s strategy, business model, and
responsibility program. The key topics related to stakeholders are
described in the table Stakeholder Dialogue.
Feedback received from stakeholders is regularly reviewed by the
Management Team and the board and is an essential part of the strategy
process. During the 2023 strategy update, insights were collected from
employees through three strategy surveys. Feedback was collected
from customers regarding Verkkokauppa.com’s differentiating factors,
but it was not communicated that this information would be used in
setting the company’s strategic targets. Additionally, feedback was
collected from suppliers.
The company conducts regular surveys on sustainability topics to
map the expectations of consumers and end users. The sustainability
barometer surveys conducted in 2022 and 2024, which addressed
consumer electronics and the sustainability of online stores, each
gathered over ten thousand responses, and their results have been
utilized in updating the company’s strategy, double materiality analysis,
and setting the targets of the sustainability program as communicated
in the survey.
The company reports its strategy and progress transparently and
up to date, enabling interested stakeholders to monitor the company’s
operations.
21Report of the Board of Directors
2024
Stakeholder dialogue
Key stakehol-der groups Interaction channels and cooperation
Key stakeholder interests and views and human rights
aspect*
Meeting stakeholders’ expectations and their impact on the company’s operations,
business model and strategy**
CUSTOMERS
• Daily customer encounters
• Contact through customer service channels
• Social media interactions
• Surveys, customer panels, customer satisfaction surveys
• Communication, advertising, newsletter
• Sustainability barometer
• Reporting channel
Consumer customers and end-users:
• Order arrivals, delivery times and availability,
maintenance and warranty issues
• Product information
• Extending product lifespan
• Used products
• Product safety
• Data security and protection
• Accessibility
Business customers:
• Sustainability and compliance
Consumer customers and end-users:
Development work related to:
• Delivery speed, customer service, availability, displaying availability, maintenance and warranty
services, usability
• Development of product information
• Circular economy services and used products
• Other measures defined based on the sustainability barometer
• Taking care of product safety and data security
• Accessibility
Business customers:
• Sustainability and compliance
OWN WORKFORCE
• Daily interactions
• Personnel survey and other questionnaires and participation
• Goal and development discussions
• Weekly newsletters, personnel meetings
• Informative interactions
• Workplace communication and discussion channels
• Supervisor coaching
• Training and personnel briefings
• Idea box for personnel ideas
• Reporting channel
• Task force
• Strategy, strategic communication, and implementation
• Employment, change negotiations
• Community and team spirit
• Salary and rewards
• Skill development
• Diversity, equality, and inclusion
• Physical health and mental health
• Occupational safety
• Prohibition of harassment and discrimination
• Personnel policy, internal personnel development plan
• Diversity working group
• Role classification system
• Recruitment guidelines
• Tribe rules, Code of Ethics for Work Community Communications
• Inclusion and engagement channels
• Supporting adaptation to change
• Employee benefits, rapid reward systems
• Supporting growth and development
• Development of leadership and everyday leadership, goal and development discussions
• Flexible working arrangements
• Occupational health services and mental wellbeing support
• Intervention model on harassment and inappropriate treatment, principles for creating a safer space
SUPPLIERS AND
OTHER PARTNERS
• Partner meetings and regular interaction
• Trade fairs
• Supplier codes of conduct and audits
• Product safety monitoring
• Surveys
• Reporting channel
• Code of Conduct and contract terms
• Social responsibility audits
• Emission reductions and emission calculations
• Cooperation and dialogue
• Investments in developing sustainability
• Code of Conduct and contract terms
• Quality and safety of procurements
• Consideration of sustainability criteria in procurement decisions
• Development of sustainability in collaboration, investments, and material choices
OWNERS AND THE
CAPITAL MARKET
• Active dialogue with shareholders
• Annual General Meeting
• Annual reporting and interim reports
• Investor and analyst reports
• Investor pages, social media channels, releases
• Investor and analyst meetings and visits, presilent discussions
• Investor seminars and events, participation in events aimed
at private investors such as investor fairs and stock exchange
open house events
• Responding to surveys and assessments
• Reporting channel
• Profitable growth of the company’s operations
• Increasing the value of shares
• Dividend payment
• Applying principles of responsible investments
• Implementation of corporate responsibility
• Consistent, reliable, relevant, and up-to-date reporting on the operating environment, the
company’s financial performance, and sustainability issues
• Increasing the value of the company’s share and paying dividends
• Growing profitably
• Developing operations in accordance with the sustainability program and achieving sustainability
targets
Other considered stakeholders
WORKERS IN
VALUE CHAIN
Social responsibility audits including employee interviews Implementation of labor rights and human rights, such as safe
working conditions, adequate rest, a living wage, prohibitions
of harassment, discrimination, forced labor, and child labor
• Requirements set for suppliers
• Social responsibility audits and requiring suppliers to prepare and monitor development
plans based on audit results
*Human rights aspects are marked in italic
**Measures to correct or enable correcting human rights impacts are marked in italic
22Report of the Board of Directors
2024
Material impacts, risks and opportunities and their
interaction with strategy and business model
The company conducted its double materiality assessment at the
beginning of 2024. The assessment followed the principle of double
materiality, considering the requirements of the ESRS standards and
the sustainability themes previously identified by the company. The
double materiality analysis included mapping the company’s key
sustainability topics and their impacts on the environment, people, and
society, as well as assessing the related financial risks and opportunities
for the company’s business. The assessment of impacts, risks, and
opportunities covered not only the company’s own operations but also
the entire identified value chain.
As a result of the assessment, seven material topics were identified
for the company: Climate change, Pollution, Circular economy and
resource use, Own workforce, Workers in the value chain, Customers
and end-users, and Business conduct.
Responding to material impacts, risks, and opportunities and their
interaction with business and strategy
The sustainability program integrates sustainability aspects into the
company’s strategy and guides action within the business, reducing
negative impacts while enhancing positive ones. The company updated
its sustainability program in 2024. The impacts, risks, and opportunities
identified through the double materiality analysis, along with the
updated 2023 strategy, formed the foundation for this update. The
goal of the update was to ensure alignment between the program and
the company’s revised strategy. The updated sustainability program is
presented in the Verkkokauppa.com’s Sustainability Program table.
The company identified material negative impacts related to climate
change and pollution, with these impacts primarily concentrated at
the beginning of the value chain. Positive impacts were observed
throughout the value chain in promoting a circular economy, and in
relation to the company’s own workforce, workers in the value chain,
consumers, and end-users. The company seeks to mitigate negative
impacts through measures such as focusing on product quality,
compliance, and responsibility to ensure an effective and responsible
procurement process. At the same time, the company aims to increase
long-term benefits for both the environment and society, as reflected in
its circular economy-based vision of creating a new normal for buying
and owning.
The company also identified significant risks and opportunities
related to its own workforce, consumers, and business operations that
could affect its financial situation and cash flows. No significant risks
were identified in the recognized risks and opportunities that require
material adjustments to the carrying values of reported assets or
liabilities in the 2024 financial statements.
Based on the double materiality analysis, the company assesses that
the identified material risks and opportunities could impact its financial
position in the short and medium term. The double materiality analysis
utilized the risk classification defined in the company’s risk management
process to assess the significance of these risks and opportunities.
Material impacts, risks, and opportunities are outlined in the following
tables, and their management is presented in relation to each relevant
theme in sections E1, E2, E5, S1, S2 and G1. The effects of the company’s
strategy on sustainability issues are described in the Strategy, Business
Model, and Value Chain section. The time horizons for identified
impacts, risks, and opportunities are presented in the Identified Impacts,
Risks, and Opportunities and the scoring of material impacts, risks, and
opportunities table.
Identified material impacts, risks and opportunities
E1 – Climate change
Impacts Risks and opportunities Impact area
E1.2 Climate change mitigation
–
The procurement and
production processes of
raw materials are energy-
intensive and cause significant
greenhouse gas emissions
(negative actual impact)
None identified Upstream
value chain
through
business
relationships
–
The transport of products at
various stages of the value
chain causes greenhouse gas
emissions (negative actual
impact)
None identified Entire value
chain through
business
relationships
E1.3 Energy
–
The energy consumption of
electronic devices during
their use phase contributes to
climate change and increases
greenhouse gas emissions
(negative actual impact)
None identified Downstream
value chain
Resilience
The company continuously monitors sustainability-related changes in
its operating environment and responds appropriately by incorporating
them into its strategy and business model. The company believes that
through its sustainability program, it has the capability of addressing the
identified material impacts, risks, and opportunities.
The company also qualitatively assessed the resilience of its
operations in the context of the double materiality analysis, both at a
general level and more specifically regarding climate resilience.
To identify future trends, the company’s climate resilience was assessed
utilizing the expertise of internal specialists familiar with various
stages of the value chain, as well as external experts. The assessment
considered the identified material impacts at the beginning of the value
chain. The resilience evaluation considered short, medium, and long-
term perspectives used in the materiality analysis, and assessed how
23Report of the Board of Directors
2024
the transition to a low-carbon and climate-resilient economy might
affect the company.
Due to their location, the company’s facilities are not significantly
exposed to extreme weather events caused by climate change, so
physical risks related to climate change were deemed non-material for
the company’s operations. However, extreme weather events can pose
physical risks to the production and transportation of products sold at
the upstream end of the value chain. Transition risks identified include
suppliers’ challenges in adapting to emission reduction targets and
changing legislation. These risks were not considered material due to
the company’s broad product range and extensive supplier and partner
network spread across different geographical areas. Additionally, the
company’s risk management has prepared for supply chain disruptions
by ensuring alternative partners and transport routes in case of potential
disruptions.
Material financial risks related to climate change were not identified
and the company has not therefore conducted a detailed analysis of
its climate-related physical or transition risks. However, financial risks
identified through the resilience analysis are monitored and evaluated
as part of ongoing risk management. The company plans to deepen
and review its climate resilience and scenario analysis as part of the
double materiality analysis update in the 2025 fiscal year. At the end
of 2024, the company decided to commit to the SBTi initiative. This
commitment supports the company’s efforts to align its operations with
the 1.5-degree climate scenario.
E2 – Pollution
Impacts Risks and opportunities Impact area
E2.1–3 Pollution of air, water and soil
–
Hazardous chemicals and
heavy metals used during the
procurement and production of
raw materials can con-taminate
air, water, and soil (negative
actual impact)
None identified Upstream
value chain
through
business
relationships
–
Toxic substances in electrical
and electronic waste in the
downstream value chain
can increase the release of
hazardous materials into water
and soil (negative actual impact)
None identified Downstream
value chain
through
business
relationships
E5 – Resource use and circular economy
Impacts Risks and opportunities Impact area
E5.1 Resources inflows, including resource use
+
Minimizing resource use in
packaging and other material
uses, and favoring recycled
materials, can reduce the use
of primary resources (positive
actual impact)
None identified Entire
value chain
through own
operations
and business
relationships
E5.2 Resource outflows related to products and services
+
Extending product lifecycles
by offering circular economy
products, services, and solutions
can reduce the use of primary
resources (positive actual
impact)
None identified Own
operations
and upstream
value chain
+
Extending product lifecycles
through eco-design can reduce
the use of primary resources
(positive actual impact)
None identified Entire
value chain
through own
operations
and business
relationships
+
Minimizing packaging materials
and optimizing material
recyclability can reduce waste
(positive actual impact)
None identified Own
operations
and upstream
value chain
24Report of the Board of Directors
2024
S1 – Own workforce
Impacts Risks and opportunities Impact area
S1.1 Working conditions
Own operations
+
Paying wages and providing employee benefits that
exceed industry standards can enhance and maintain
employee satisfaction and well-being, and motivate staff
to work towards the company’s targets (positive actual
impact)
–
Work accidents and sick leaves can increase operational
costs (negative actual impact)
–
The lack or insufficiency of sustainable HR practices
can increase employee turnover, which may raise costs,
complicate recruitment, and damage the brand (negative
potential impact)
+
Providing opportunities for professional development
through skill enhancement can improve operational
efficiency and reduce costs (positive actual impact)
+
A motivated, skilled, and healthy workforce enables
efficient operations, thereby reducing costs, improving
customer satisfaction, increasing sales, and decreasing
the likelihood of disability pensions (positive actual
impact)
S1.2 Equal treatment and opportunities for all
Own operations
+
Opportunities for professional development can
increase commitment, the sense of meaningful work,
and well-being at work, for example, through perceived
competence (positive actual impact)
+
A motivated, skilled, and healthy workforce enables
efficient operations, thereby reducing costs, improving
customer satisfaction, increasing sales, and decreasing
the likelihood of disability pensions (positive actual
impact)
+
Prohibiting discrimination can reduce all forms of
harassment, bullying, and discrimination (positive actual
impact)
Material impacts, risks and opportunities related to own workforce
and their interaction with strategy and business model
The company employs individuals in sales, logistics, and office roles. In
its double materiality analysis, the company assessed impacts, risks,
and opportunities related to its workforce, including significant risks
of forced labor and child labor, affecting all employment relationships
and employee groups. The results apply to the entire workforce, and
no impacts, risks, or opportunities were identified for any specific
employee group. The company evaluates negative impacts on
employees, locations, and job roles by conducting regular statutory
workplace assessments, risk and hazard evaluations, and employee
surveys, the results of which are reviewed at both company-wide and
departmental levels.
All identified material impacts were positive and applied to the entire
own workforce. the company’s actions, which are expected to have
positive impacts, target the entire workforce and are detailed in section
S1 Material impacts, risks and opportunities related to own workforce
under the Management column in the table. The company assesses
potential negative impacts on its workforce from the climate change
transition plan during its development.
The company believes its workforce is crucial to achieving business
objectives. In line with values defined with employees, the company
fosters a bold, agile, and transparent organizational culture and invests
in a communal atmosphere, that strengthens positive impacts on the
workforce. Risks related to the workforce are tied to the company’s
dependence on employee well-being and contribution. It has been
identified that inadequate workforce-related practices could pose
significant financial risks. The company has not identified any material
impacts, risks, or opportunities related to forced labor or child labor.
Positive impacts related to the company’s workforce primarily
support achieving strategic objectives but are not directly tied to
the business model. The company has not identified significant risks
related to forced labor or child labor due to the nature of its business,
as operations are mainly based in Finland, with no significant activities
in high-risk countries or in-house production. Limited activities outside
Finland are office-based. The company respects human rights in all its
operations and does not tolerate human rights violations in any form.
Additionally, the company has a reporting channel for all stakeholders to
raise concerns.
The company has not identified impacts, risks or opportunities that
apply to non-employees.
25Report of the Board of Directors
2024
S2 – Workers in the value chain
Impacts Risks and opportunities Impact area
S2.1 Working conditions
S2.2 Equal treatment and opportunities for all
S2.3 Other work-related rights
+
The company’s supplier
requirements and monitoring
mechanisms can have a
positive impact on the working
conditions of employees in
the value chain (actual positive
impact)
None identified
Upstream value
chain through
business
relationships
Material impacts, risks and opportunities related to workers in the
value chain and their interaction with strategy and business model
The company has identified workers in the value chain as a material
sustainability topic through three sub-topics: S2.1 Working Conditions,
S2.2 Equal Treatment and Equal Opportunities for All; and S2.3 Other
Work-Related Rights.
Positive impacts were identified in relation to the development of
the company’s supplier Code of Conduct and procurement practices.
This particularly applies to employees working for direct suppliers, but
direct suppliers are also required to apply the same practices within
their own supply chains. The impacts relate to all workers in the value
chain. The materiality assessment includes uncertainties regarding
upstream workers in the value chain, over whom the company does
not have full visibility. The company has not identified dependencies on
value chain employees in its strategy or business model, nor impacts or
dependencies that would constitute material risks or opportunities.
The company’s assessment of the vulnerability of different employee
groups to negative impacts is based on the Amfori BSCI program, of
which the company is a member. The program’s principles specifically
define the protection of young workers due to their vulnerability and
provide details to safeguard the rights of migrant and seasonal workers.
Impacts on workers in the value chain arise from the company’s
business activities, as the production of products sold by the company,
particularly consumer electronics, is concentrated in countries with a
high risk of human rights and labor rights violations, including the risk
of child labor or forced labor, based on BSCI risk country classification
and World Bank indicators. The company has not separately assessed
the extent to which the risk of child labor or forced labor is significant
or whether negative impacts are widespread or systemic in the
contexts where the company operates, procures, or has other business
relationships.
S2 – Consumers and end-users
Impacts Risks and opportunities Impact area
S4.3 Social inclusion of consumers and/or end-users
+
Enabling equal access to
the company’s products
and services for all
consumer groups can
positively contribute to
social inclusion among
consumers (actual positive
impact)
+
Equal access to
products and services
for all consumer groups
can increase the
company’s sales (actual
positive impact)
Downstream
value chain
Material impacts, risks and opportunities related to consumers and
end- users in the value chain and their interaction with strategy and
business model
The company has identified consumers and end-users as a material
sustainability topic under the sub-topic of Social inclusion of consumers
and/or end-users within the sub-sub-topic of Access to products and
services. The company’s material impacts are related to the potential
to positively influence social inclusion among consumers. Additionally,
a positive economic opportunity has been identified in this area. The
identified issues do not target a specific group but are related to all
consumers and end-users.
G1 – Business Conduct
Impacts Risks and opportunities Impact area
G1.5 Management of relationships with suppliers including payment
practices
None identified
+
Fair business conduct, ethical
practices and rigorous risk and due
diligence practices throughout
the supply chain can improve
reputation amongst suppliers
and partners guaranteeing long
relationships, good commercial co-
operation (actual positive impact)
Own operations
and upstream
value chain
through business
relationships
26Report of the Board of Directors
2024
Impact, risk and opportunity
management
Description of the processes to identify and assess
material impacts, risks and opportunities
The company conducted a double materiality analysis in 2024. The
process utilized previously collected stakeholder insights, internal
expertise from various departments, and support from an external
expert. The analysis considered the key aspects of the company’s
operations, such as its location, sector and business structure. The
double materiality analysis progressed in four stages, starting with
mapping the value chain and moving on to identifying impacts, risks,
and opportunities. The process concluded with workshops that
first prioritized impacts and then focused on prioritizing risks and
opportunities.
In the double materiality analysis process, sustainability topics were
addressed thematically through sub-topics set by ESRS standards. A
scoring matrix was developed to support the identification process,
evaluating the significance and extent of impacts at different stages of
the value chain. Subsequently, identified materialities were discussed
in workshops involving experts from various company functions and an
external expert who particularly supported the identification of potential
future impacts. The workshops utilized facilitated group discussions
and impact assessment matrices, evaluating the severity, likelihood,
and duration of each topic from the perspectives of business and
stakeholders. All emerging views were documented. The materiality
analysis identified the company’s impacts, risks, and opportunities
across the value chain. To deepen the understanding of upstream
impacts, an external supplier representative was interviewed.
Impact assessment and prioritization
In assessing and prioritizing impacts, the company examined its actual
and potential impacts on the environment and people throughout
the value chain. The assessment considered impacts on various
stakeholders, covering all activities, business relationships, and
geographical areas. The review included both direct impacts of the
company and indirect impacts arising from business relationships,
such as product manufacturing at the upstream end of the value chain.
The process was also supported by essential stakeholder interviews,
particularly to deepen the understanding of the company’s impacts at
the upstream end of the value chain. The assessment was conducted
theme by theme, considering key sub-topics. Impacts were reviewed
over short-, medium-, and long-term periods to determine when
different sustainability factors would tangibly affect the business.
Identified impacts were prioritized based on their relative severity.
Severity was assessed according to ESRS guidelines, considering the
scale, scope, and remediability of the impacts. For potential impacts,
their likelihood was also evaluated.
Risk and opportunity assessment and prioritization
In assessing risks and opportunities, the company’s expert teams
conducted targeted evaluations of financial risks and opportunities
for each sustainability theme, considering the identified impacts. The
identification of risks and opportunities examined factors that affected
or were reasonably expected to affect the company’s financial position,
financial performance, cash flows, access to financing, or cost of
capital. For the quantitative assessment of risks and opportunities,
the company’s internal risk matrix was used. The matrix considered
the magnitude and likelihood of impacts, defined in the context of
the company’s business environment and financial objectives. The
magnitude of impacts was assessed on a scale based on the financial
impact on revenue and categorized into five levels according to the
company’s risk management process. The assessment covered short-,
medium- and long-term risk factors.
Scoring
The severity of impacts was measured on a scale of 1 to 5, with 5 being
the highest value. Similarly, the total score for risks and opportunities
was calculated on a scale of 1 to 5, with 5 representing the greatest
impact and highest likelihood. Impacts, risks, and opportunities scoring
above 3.75 were identified as material. The threshold was determined
in collaboration with the company’s experts and management to
ensure that the most significant and noteworthy impacts, risks, and
opportunities were considered.
Detailed information about the processes to identify and
assess material impacts, risks, and opportunities related to the
environment
Regarding climate change, the company assessed the climate
resilience of its operations and various stages of the value chain from
the perspective of risks posed by different climate scenarios. The
analysis did not identify any material financial climate risks. The climate
resilience analysis is detailed further in the Resilience section.
Impacts, risks, and opportunities related to pollution, water resources,
marine resources, resource use, and the circular economy were
identified by screening the company’s assets and operations across
the value chain. To deepen the understanding of upstream impacts,
the company conducted an interview with a supplier. The interview
aimed to provide a comprehensive view of environmental impacts and
potential social impacts related to production. Additionally, information
was gathered about circular economy perspectives, such as product
lifecycle management and opportunities for improving the value chain.
The company has not identified communities directly affected by its
operations and has therefore not conducted community consultations.
Impacts on water and marine resources were identified at the
upstream end of the value chain, where the production of consumer
electronics generates significant environmental impacts, particularly
through the mining of minerals required for manufacturing. The
company’s own operations were not found to have impacts, given that
it does not have its own production facilities, and its locations are not
in high water-risk areas. The company did not, however, identify any
material impacts, risks, or opportunities related to water resources or
marine resources.
The company assessed that its own locations had no direct impact
on biodiversity, as they were not in or near areas sensitive to biological
diversity. The biodiversity assessment process focused on the
upstream end of the value chain, specifically the production of products
27Report of the Board of Directors
2024
sold by the company, where negative impacts related to key direct
causes of biodiversity loss were identified. For example, the mining of
minerals used in consumer electronics manufacturing can have harmful
effects on local ecosystems. Additionally, transport at various stages
of the value chain can promote the spread of invasive species, leading
to the degradation of natural ecosystems’ biodiversity. The company
identified biodiversity-related transition and systemic risks, such as the
deterioration of the financial situation due to increased operational costs
associated with biodiversity crises in the supply chain. The company
did not identify any material impacts, risks, or opportunities related to
biodiversity.
Regarding circular economy impacts, the review covered the entire
value chain, with a particular focus on the impacts arising from the
company’s own operations. The review was conducted from a product
lifecycle perspective, helping understand the impacts at both the
upstream and downstream ends of the value chain.
Decision-making process and monitoring procedures for double
materiality analysis
The progress of the double materiality analysis process was regularly
reported to the company’s board. In the spring of 2024, the board
reviewed and validated all impacts, risks, and opportunities identified
and documented in the materiality workshops, approved the double
materiality analysis, and decided on the materiality threshold, thereby
determining the company’s key sustainability themes.
The identified material impacts, risks, and opportunities from the
materiality assessment served as the basis for updating the company’s
sustainability program and are integrated into the company’s strategy-
driven management process and vision of creating a new normal for
buying and owning. The identified impacts, risks, and opportunities will
be updated in the company’s overall risk profile in 2025. The risk profile
is managed as part of the company’s comprehensive risk management
work and management system.
The company continuously monitors changes in the operating
environment and assesses their impact on materiality. The double
materiality analysis is reviewed annually and updated as necessary.
Identified impacts, risks, and opportunities and the scoring of material impacts, risks, and opportunities
ESRS Topic Sub-topic
Identified
impacts
Identified risks
and opportunities
Time horizons*
E1:Climate change
1.1 Climate change adaptation
1.2 Climate change mitigation
4,3
Short-term
1.3 Energy
4,3
Short-term
E2: Pollution
2.1 Pollution of air
4,3
Short-term
2.2 Pollution of water
4,3
Short-term
2.3 Pollution of soil
4,3
Short-term
2.4 Pollution of living organisms and food resources
2.5 Substances of concern
2.6 Substances of very high concern
2.7 Microplastics
E3: Water and marine
resources
3.1 Water
3.2 Marine resources
E4: Biodiversity and
ecosystems
4.1 Direct impact drivers of biodiversity loss
4.2 Impacts on the state of species
4.3 Impacts on the extent and condition of ecosystems
4.4 Impacts and dependencies on ecosystem services
E5: Resource use and
circular economy
5.1 Resources inflows, including resource use
4,5
Short-term
5.2 Resource outflows related to products and services
4,5
Short-term
5.3 Waste
S1: Own workforce
1.1 Working conditions
4,0
4,5
Short- and medium-term
1.2 Equal treatment and opportunities for all
4,0
3,8
Short- and medium-term
1.3 Other work-related rights
S2: Workers in the
value chain
2.1 Working conditions
4,0
Short-term
2.2 Equal treatment and opportunities for all
4,0
Short-term
2.3 Other work-related rights
4,0
Short-term
S3: Affected
communities
3.1 Communities’ economic, social and cultural rights
3.2 Communities’ civil and political rights
3.3 Rights of indigenous peoples
S4: Consumers and
end- users
4.1 Information-related impacts for consumers and/or end-users
4.2 Personal safety of consumers and/or end-users
4.3 Social inclusion of consumers and/or end-users
4,0
4,0
Short-term
G1: Business conduct
1.1 Corporate culture
1.2 Protection of whistle-blowers
1.3 Animal welfare
1.4 Political engagement and lobbying activities
1.5 Management of relationships with suppliers including payment practices
Short-term
1.6 Corruption and bribery
Impacts, risks and opportunities are scored on a scale of 1-5, where 5 is the highest value. ESRS topics where impacts, risks or opportunities exceed the threshold of 3.75 points are identified as material.
= positive or negative impacts, risks or opportunities have been identified in the topic
X,X
= the score according to which the topic has been identified as material
Based on the materiality assessment, no impacts, risks or opportunities with a score exceeding the threshold were identified for ESRS topics E3, E4 and S3. Therefore, these topics have not been identified as material.
* The time horizons were assessed on a three-level scale: short- medium- and long-term. Actual impacts, risks and opportunities were defined as occurring in the short term (within 0-2 years). Potential impacts, risks
and opportunities were defined as occurring either in the medium term (within 2-5 years) or in the long term (more than five years).
28Report of the Board of Directors
2024
Disclosure requirements in ESRS covered by
the undertaking’s sustainability statement
ESRS 2 – General information
Disclosure requirement Description Page number
Additional information
BP-1 General basis for preparation of sustainability statements 14
BP-2
Disclosures in relation to specific circumstances
14
GOV-1 The role of the administrative, management and supervisory bodies 14–15
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
15–16
GOV-3
Integration of sustainability-related performance in incentive schemes
16
GOV-4 Statement on due diligence 16
GOV-5
Risk management and internal controls over sustainability reporting
17
SBM-1 Strategy, business model and value chain 18–20
SBM-2
Interests and views of stakeholders
21–22
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
23–26
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 27–28
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
29–32
E1 – Climate change
Disclosure requirement Description Page number
Additional information
ESRS 2, GOV-3 Integration of sustainability-related performance in incentive schemes 14
E1-1
Transition plan for climate change mitigation
42
ESRS 2, SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 23–26
ESRS 2, IRO-1
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities
27–28
E1-2
Policies related to climate change mitigation and adaptation
42
E1-3 Actions and resources in relation to climate change policies 43
E1-4
Targets related to climate change mitigation and adaptation
43
E1-5
Energy consumption and mix
44
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 44
E1-7
GHG removals and GHG mitigation projects financed through carbon credits
N/A
Not material
E1-8 Internal carbon pricing N/A Not material
E1-9
Anticipated financial effects from material physical and transition risks and potential
climate-related opportunities
N/A Phase-in applied
29Report of the Board of Directors
2024
E2 – Pollution
Disclosure requirement Description Page number
Additional information
ESRS 2, IRO-1
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities
27–28
E2-1 Policies related to pollution 47
E2-2
Actions and resources related to pollution
47
E2-3 Targets related to pollution 48
E2-4
Pollution of air, water and soil
N/A
Not material
E2-5 Substances of concern and substances of very high concern N/A Not material
E2-6
Anticipated financial effects from pollution-related impacts, risks and opportunities
N/A
Not material
E5 – Resource use and circular economy
Disclosure requirement Description Page number
Additional information
ESRS 2, IRO-1
Description of the processes to identify and assess material resource use and circular
economy-related impacts, risks and opportunities
27–28
E5-1 Policies related to resource use and circular economy 49
E5-2
Actions and resources related to resource use and circular economy
50
E5-3
Targets related to resource use and circular economy
51
E5-4 Resource inflows 51
E5-5
Resource outflows
52
E5-6
Anticipated financial effects from resource use and circular economy-related impacts,
risks and opportunities
N/A Phase-in applied
S1 – Own workforce
Disclosure requirement Description Page number
Additional information
ESRS 2, SBM-2 Interests and views of stakeholders 21–22
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
23–26
S1-1 Policies related to own workforce 54
S1-2
Processes for engaging with own workers and workers’ representatives about impacts
54
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 55
S1-4
Taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those actions
55
S1-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
56
S1-6 Characteristics of the undertaking’s employees 56
S1-7
Characteristics of non-employee workers in the undertaking’s own workforce
56
S1-8 Collective bargaining coverage and social dialogue 57
S1-9
Diversity metrics
57
30Report of the Board of Directors
2024
S1-10 Adequate wages 57
S1-11
Social protection
57
S1-12 Persons with disabilities N/A
Not material
S1-13
Training and skills development metrics
57
S1-14 Health and safety metrics 57
S1-15
Work-life balance metrics
58
S1-16 Compensation metrics (pay gap and total compensation) 58
S1-17
Incidents, complaints and severe human rights impacts
58
S2 – Workers in value chain
Disclosure requirement Description Page number
Additional information
ESRS 2, SBM-2 Interests and views of stakeholders 21–22
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
23–26
S2-1 Policies related to value chain workers 59
S2-2 Processes for engaging with value chain workers about impacts 59–60
S2-3
Processes to remediate negative impacts and channels for value chain workers to raise concerns
59–60
S2-4
Taking action on material impacts on value chain workers, and approaches to managing material
risks and pursuing material opportunities related to value chain workers, and effectiveness of
those action
60
S2-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
60
S4 – Consumers and end-users
Disclosure requirement Description Page number
Additional information
ESRS 2, SBM-2
Interests and views of stakeholders
21–22
ESRS 2, SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 23–26
S4-1
Policies related to consumers and end-users
61
S4-2 Processes for engaging with consumers and end-users about impacts 61
S4-3
Processes to remediate negative impacts and channels for consumers and end-users to raise
concerns
61
S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end- users, and
effectiveness of those actions
62
S4-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
62
31Report of the Board of Directors
2024
G1 – Business conduct
Disclosure requirement Description Page number
Additional information
ESRS, GOV-1 The role of the administrative, supervisory and management bodies 14–15
IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
27–28
G1-1 Corporate culture and business conduct policies and corporate culture 63
G1-2
Management of relationships with suppliers
63
G1-3 Prevention and detection of corruption and bribery 64
G1-4
Confirmed incidents of corruption or bribery
64
G1-5 Political influence and lobbying activities N/A Not material
G1-6
Payment practices
64
32Report of the Board of Directors
2024
List of datapoints in cross-cutting and topical
standards that derive from other EU legislation
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Materiality for
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Section and
page number
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(5), Annex II
2
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU) 2020/1816,
Annex II
2
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10 Table #3 of Annex 1 4
ESRS 2 SBM-1
Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4 Table #1 of Annex 1
Article 449a Regulation (EU) No
575/2013;Commission Implementing
Regulation (EU) 2022/2453(6)Table 1:
Qualitative information on Environmental
risk and Table 2: Qualitative information on
Social risk
Delegated Regulation (EU) 2020/1816,
Annex II
X
N/A
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,
Annex II
X
N/A
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(7),
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II
X
N/A
ESRS 2 SBM-1
Involvement in activities related to cultivation
and production of tobacco paragraph 40 (d) iv
Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II
X
N/A
ESRS E1-1
Transition plan to reach climate neutrality by
2050 paragraph 14
Regulation (EU)
2021/1119, Article 2(1)
31
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; 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 Article 12.2
31
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4 Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 6
33
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
n. 5 Table #2 of Annex 1
X
N/A
33Report of the Board of Directors
2024
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Materiality for
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page number
ESRS E1-5 Energy consumption and mix
paragraph 37
Indicator number 5 Table #1 of Annex 1 34
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
X
N/A
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
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,
Article 5(1), 6 and 8(1)
35
ESRS E1-6
Gross GHG emissions intensity paragraphs
53 to 55
Indicators number 3 Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book –
Climate change transition risk: alignment
metrics
Delegated Regulation (EU) 2020/1818,
Article 8(1)
35
ESRS E1-7
GHG removals and carbon credits
paragraph 56
Regulation (EU)
2021/1119, Article 2(1)
X
N/A
ESRS E1-9
Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
Delegated Regulation (EU) 2020/1818,
Annex II Delegated Regulation (EU)
2020/1816, Annex II
X
N/A
ESRS E1-9
Disaggregation of monetary amounts by
acute and chronic physical risk paragraph 66
(a)
ESRS E1-9
Location of significant assets at material
physical risk paragraph 66 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47; Template 5:
Banking book - Climate change physical risk:
Exposures subject to physical risk.
X
N/A
ESRS E1-9 Breakdown of the carrying value
of its real estate assets by energy-efficiency
classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34; Template 2:Banking
book -Climate change transition risk: Loans
collateralised by immovable property – Energy
efficiency of the collateral
X
N/A
ESRS E1-9
Degree of exposure of the portfolio to
climate- related opportunities paragraph 69
Delegated Regulation (EU) 2020/1818,
Annex II
X
N/A
ESRS E2-4
Amount of each pollutant listed in Annex II 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
X
N/A
34Report of the Board of Directors
2024
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Materiality for
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ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7 Table #2 of Annex 1
X
N/A
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex 1
X
N/A
ESRS E3-1
Sustainable oceans and seas paragraph 14
Indicator number 12 Table #2 of Annex 1
X
N/A
ESRS E3-4
Total water recycled and reused paragraph
28 (c)
Indicator number 6.2 Table #2 of Annex 1
X
N/A
ESRS E3-4
Total water consumption in m3 per net
revenue on own operations paragraph 29
Indicator number 6.1 Table #2 of Annex 1
X
N/A
ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1
17–18
ESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1
17–18
ESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1
17–18
ESRS E4-2
Sustainable land / agriculture practices or
policies paragraph 24 (b)
Indicator number 11 Table #2 of Annex 1
X
N/A
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1
X
N/A
ESRS E4-2
Policies to address deforestation paragraph
24 (d)
Indicator number 15 Table #2 of Annex 1
X
N/A
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of Annex 1
44
ESRS E5-5
Hazardous waste and radioactive waste
paragraph 39
Indicator number 9 Table #1 of Annex 1
X
N/A
ESRS 2- SBM3 - S1
Risk of incidents of forced labour paragraph
14 (f)
Indicator number 13 Table #3 of Annex I
14–15
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph
14 (g)
Indicator number 12 Table #3 of Annex I
14–15
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I
47
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,
Annex II
47
35Report of the Board of Directors
2024
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Materiality for
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ESRS S1-1
processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11 Table #3 of Annex I 47
ESRS S1-1
workplace accident prevention policy or
management system paragraph 23
Indicator number 1 Table #3 of Annex I 47
ESRS S1-3
grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 5 Table #3 of Annex I 61–62
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 Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
53
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I 53
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12 Table #1 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
54
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of Annex I
54
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
Indicator number 7 Table #3 of Annex I
54
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818 Art 12 (1)
55
ESRS 2- SBM3 – S2
Significant risk of child labour or forced labour
in the value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3
of Annex I
15
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
55–56
ESRS S2-1 Policies related to value chain
workers paragraph 18
Indicator number 11 and n. 4 Table #3 of
Annex 1
55–56
ESRS S2-1Non-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,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
55–56
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,
Annex II
55–56
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 57
36Report of the Board of Directors
2024
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Materiality for
Verkkokauppa.com
Section and
page number
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
X
N/A
ESRS S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD
guidelines paragraph 17
Indicator number 10 Table #1 Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
X
N/A
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14 Table #3 of Annex 1
X
N/A
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
58–59
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,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
58–59
ESRS S4-4
Human rights issues and incidents
paragraph 35
Indicator number 14 Table #3 of Annex 1 58–59
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1 61
ESRS G1-1
Protection of whistle- blowers paragraph
10 (d)
Indicator number 6 Table #3 of Annex 1 61
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,
Annex II)
63
ESRS G1-4
Standards of anti- corruption and anti- bribery
paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1
63
37Report of the Board of Directors
2024
Policies adopted to manage material sustainability
matters (MDR-P)
The views of key stakeholders have been taken into account in the
formulation of policies. The company’s Management Team monitors the
implementation of the policies. More detailed content and application of
the policies are presented in connection with each material topic.
Policy and sustainability topic* Contents Scope Responsibility Availability
Code of Conduct
E1, E2, E5, S1, S2, S4, G1
The company’s way of operating in relation to customer-oriented activities,
communication, marketing, disclosure, personnel and corporate culture,
cooperation with partners, prevention of corruption and bribery, human rights
and labor rights, data security and protection, environment, compliance with
laws, and the reporting channel.
Applies to own workforce and
management and compliance is also
required from the company’s suppliers
and partners globally
The CEO is responsible for implementation and delegates
responsibilities to the Management Team members if necessary
The legal unit assists the CEO in updates and changes to the Code
of Conduct
Approved by the Board
On the company’s
website in Finnish and
English
Supplier Code of Conduct
E1, E2, E5, S2
Respect for human rights, themes of social and environmental responsibility,
and risk materials
Entire value chain globally
The Chief Commercial Officer is responsible for implementation
and compliance
Approved by the Board
On the company’s
website in English
Environmental policy
E1, E2, E5
Reduction of greenhouse gas emissions, environmental protection and
pollution prevention, packaging and material choices, circular economy and
product lifespan extension, eco-design, waste minimization, and directing
waste for reuse.
Principles for identifying, preventing, and mitigating potential and actual
harmful environmental impacts.
Own operations and value chain
globally
The Chief Marketing, Communications and Sustainability Officer
is responsible for implementation and compliance
Approved by the Management Team
On the company’s
website in Finnish and
English**
Personnel policy
S1
The operating principles related to the own workforce concerning the
identification, prevention, and mitigation of potential and actual negative
impacts on personnel, compliance with human rights, and the principle of
avoiding causing or contributing to negative human rights impacts
Own operations
The Chief HR Officer is responsible for implementation and
compliance
Approved by the Management Team
On the company’s
website in Finnish and
English**
Anti-Bribery and Anti-
Corruption Policy
G1
Zero tolerance for bribery, corruption, and other unethical influence;
identification and prevention of corruption and bribery; regulations concerning
gifts, hospitality, product loans, discounts, participation in company trips and
sales competitions, as well as the approval process related to these.
Own operations and value chain
globally
The CEO is responsible for implementation and compliance
supported by the Management Team
Approved by the Board
The company’s internal
document
Whistleblowing policy
G1
The principles of the reporting channel available for all stakeholders Own operations and value chain
globally
The CFO is responsible for implementation and compliance
Approved by the Board
On the company’s
website in Finnish and
English
Risk management policy
G1
The company’s risk management framework for ensuring the achievement of
business objectives, operational continuity, disruption-free functioning, and
security, covering the company’s operating environment, processes, services,
projects, and procurement
Applies to own workforce and
management
The Chief Information Officer is responsible for reporting identified
risks to the Audit Committee and Board.
The CEO is responsible for compliance
Approved by the Board
On the company’s
website in Finnish and
English
Data security policy
G1
A comprehensive information security management system that ensures the
confidentiality, integrity and availability of information that creates a secure
environment for customers and employees
Applies to all employees and
management.
The Chief Information Officer is responsible for implementation
and compliance
Approved by the Management Team
On the company’s
website in Finnish and
English**
*The policy addresses impacts, risks and opportunities related to this/these ESRS sustainability topics
** The Environmental policy, Data security policy and updated Personnel policy were added to the company’s website after the reporting period in early 2025
38Report of the Board of Directors
2024
ENVIRONMENT
Information about the taxonomy of
sustainable finance
The company reports information about the EU’s sustainable finance
taxonomy in accordance with EU Regulation 2020/852 and the
requirements of the Finnish Accounting Act. The EU taxonomy is
a classification system designed to channel capital flows towards
sustainable investments and help achieve a climate-neutral European
Union by 2050. The classification system currently covers only
those economic activities that have the greatest need and potential
to significantly influence climate change mitigation and adaptation.
Economic activities specific to the distributive trades sector are
currently not explicitly mentioned in the taxonomy.
In 2024, the company’s business consisted of retail sales and sales
of its supporting services. The company has reviewed its operations to
identify activities in its business that would be eligible and aligned with
taxonomy.
In 2024, the company identified part of its revenue as taxonomy-
eligible, as presented in the taxonomy table concerning revenue.
One of the taxonomy’s goals is to promote the transition to a circular
economy. In this regard, the company has identified the sale of used
consumer electronics products as taxonomy-eligible. These products
were originally classified under NACE code 26, and the company has
classified the activity under section 5.4 of the taxonomy (Sale of used
goods).
Taxonomy-eligible revenue consists of the company’s sales of used
products, including the Trade-in Service, Buyback Service, sales of used
products, and sales of returned products through the outlet in condition
categories B, C, and D.
The company has assessed the sale of used products based on the
technical screening criteria of the taxonomy and has evaluated this
revenue as taxonomy-eligible but not aligned. The company’s targets is
to develop its operations to meet the taxonomy’s requirements.
Substantial contribution criteria DNSH criteria (’Does Not Significantly Harm’)
Economic activities
Code(s)
Absolute
turnover
MEUR
Proportion
of turnover
%
Climate
change
mitigation
%
Climate
change
adaptation
%
Water and
marine
resources
%
Circular
economy
%
Pollution
%
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
Taxonomy-aligned
proportion of turnover,
year 2023
%
Category
(enabling
activity)
E
Category
(transitional
activity)'
T
A. TAXONOMY-ELIGIBLE ACTIVITES %
EL; N/EL
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
A.1. Environmentally sustainable activities (Taxonomy aligned)
Turnover of environmentally sustainable activities (Taxonomy
Aligned (A.1)
Of which Enabling
Of which Transitional
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Sale of second-hand goods CE 5.4 10.7 2% N/EL
N/EL N/EL EL N/EL N/EL N/A
Turnover of taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)(A.2)
10.7 2%
N/A
Total (A.1 + A.2) 10.7 2%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 457.1 98%
Total (A + B) 467.8 100%
Proportion of turnover from products or services
associated with Taxonomy-aligned economic activities
The total revenue is based on the figures reported by the group.
N/EL – Not eligible, Taxonomy non-eligible activity for the relevant environmental objective
EL - Taxonomy-eligible activity for the relevant objective
39Report of the Board of Directors
2024
Substantial contribution criteria DNSH criteria (’Does Not Significantly Harm’)
Economic activities
Code(s)
Absolute
CapEx
MEUR
Proportion
of CapEx
%
Climate
change
mitigation
%
Climate
change
adaptation
%
Water and
marine
resources
%
Circular
economy
%
Pollution
%
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
Taxonomy-aligned
proportion of CapEx,
year 2023
%
Category
(enabling
activity)
E
Category
(transitional
activity)'
T
A. TAXONOMY-ELIGIBLE ACTIVITES %
A.1. Environmentally sustainable activities (Taxonomy aligned)
CapEx of environmentally sustainable activities
(Taxonomy Aligned (A.1)
Of which Enabling
Of which Transitional
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
CapEx of taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)(A.2)
N/A
Total (A.1 + A.2) 0 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) 2.1 100%
Total (A + B) 2.1 100%
Substantial contribution criteria DNSH criteria (’Does Not Significantly Harm’)
Economic activities
Code(s)
Absolute
OpEx
MEUR
Proportion
of OpEx
%
Climate
change
mitigation
%
Climate
change
adaptation
%
Water and
marine
resources
%
Circular
economy
%
Pollution
%
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
Taxonomy-aligned
proportion of OpEx,
year 2023
%
Category
(enabling
activity)
E
Category
(transitional
activity)'
T
A. TAXONOMY-ELIGIBLE ACTIVITES %
A.1. Environmentally sustainable activities (Taxonomy aligned)
OpEx of environmentally sustainable activities (Taxonomy Aligned
(A.1)
Of which Enabling
Of which Transitional
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
OpEx of taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)(A.2)
N/A
Total (A.1 + A.2) 0 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) 6.7 100%
Total (A + B) 6.7 100%
Capital expenditures include additions to tangible assets, intangible assets, and rights of use during the financial year
Total operating expenses include direct costs not capitalized that are related to the company’s business and operations.
Proportion of CapEx from products or services associated
with Taxonomy-aligned economic activities
Proportion of OpEx from products or services associated
with Taxonomy-aligned economic activities
40Report of the Board of Directors
2024
EU taxonomy Form 1: Nuclear energy
and fossil gas related activities
Row Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to the 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 exposures 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 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 exposures 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 exposures 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 exposures to the construction,
refurbishment and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
NO
41Report of the Board of Directors
2024
E1 – Climate change
Material impacts, risks and opportunities related to
climate mitigation and energy
E1 – Climate change
Impacts
Opportunities
and risks Management
E1.2 Climate change mitigation
–
The procurement
and production
processes of raw
materials are energy-
intensive and cause
significant greenhouse
gas emissions
None
identified
- Environmental practice
requirements for suppliers,
including requirements to
reduce energy consumption
and greenhouse gas emissions,
favor renewable energy, provide
emissions data, and consider
environmental aspects in the
supply chain
- Developing emission calculation
practices
- Solutions and business models
aimed at extending product
lifecycles
–
The transport of
products at various
stages of the value
chain causes
greenhouse gas
emissions
None
identified
- Collaboration with freight and
distribution partners to reduce
logistics emissions
- Automation and route
optimization
- Minimizing air freight
- Transitioning to renewable
fuels in freight transport where
possible
E1.3 Energy
–
The energy
consumption of
electronic devices
during their use phase
contributes to climate
change and increases
greenhouse gas
emissions (negative
actual impact)
None
identified
- Offering energy-efficient
products
- Guiding customers in selecting
and using energy
Transition plan for climate change mitigation
The company’s principles related to climate change mitigation were
recorded in the company’s Environmental policy during the reporting
year, and the process of setting targets and plans has begun. The
company has yet develop a climate change mitigation transition
plan. At the end of 2024, the company decided to commit to the
Science Based Targets (SBTi) initiative and to reduce its greenhouse
gas emissions in line with the Paris Agreement’s 1.5-degree warming
target. The commitment was fulfilled after the reporting year in early
2025. With this commitment, the company will set short-term science-
based climate targets for the entire value chain. The company plans to
develop a climate change mitigation transition plan by the end of 2026,
after receiving validation from the SBTi organization, which will confirm
that the targets are in line with the Paris Agreement. According to the
company’s assessment, the validation is expected to be completed by
the end of 2026.
The company’s operational emissions are minimal, due to the nature
of its business and the planned reduction of operational emissions in
accordance with the target set in 2021 to reduce operational emissions
(Scope 1 and 2) to zero (0 tCO
2
) by the end of 2025.
Policies related to climate change
mitigation and adaptation
The company’s principles related to climate change mitigation, energy
efficiency, and the adoption of renewable energy are recorded in the
company’s Environmental policy. The policy does not address climate
change adaptation, as this sub-topic has not been identified as material.
The key content of the Environmental policy regarding climate
change includes a commitment to the goals of the international climate
conference to limit global warming to 1.5°C and to reduce emissions in
accordance with short-term science-based climate targets, as well as
the development of a climate change mitigation transition plan for the
entire value chain. The company conducts a comprehensive carbon
footprint calculation for the entire value chain annually and develops its
emission calculations to achieve readiness for setting absolute emission
reduction targets.
Additionally, as stated in its Environmental policy the company is
committed to reducing its operational emissions by investing in energy
efficiency, purchasing only electricity produced from renewable energy,
and renewable heating and cooling energy when possible, and by
challenging its landlords to increase the supply of renewable energy
and solutions in properties where the company is a tenant.
In accordance with its Environmental policy, the company collaborates
with its suppliers and partners to reduce indirect emissions in the value
chain and encourages its suppliers to set their own emission reduction
targets and improve the availability of emission data. Additionally, the
company is committed to reducing logistics emissions in collaboration
with freight and distribution partners, minimizing air freight shipments,
and transitioning to the use of renewable fuels in freight transport where
possible.
Environmental requirements for suppliers are also expressed in the
company’s supplier Code of Conduct.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Actions and resources in relation to climate change policies
Actions Time horizon Scope Expected outcome
Reductions
in indirect
greenhouse
gases (Scope 3)
2024–2028
Suppliers in upstream
value chain and
partners globally
Reduce the entire
value chain's emissions
in accordance with
science-based climate
targets (SBTi)
Reductions in
emissions in own
operation (Scope
1 and 2)
2021–2025
Own operations
globally
Reduce the company’s
own operational
emissions (Scope 1
and 2) to 0 tCO
2
by
the end of 2025
42Report of the Board of Directors
2024
Actions to reduce indirect emissions
in the reporting year, the company developed an Environmental policy
that complements the Code of conduct, especially regarding the
identified significant indirect climate impacts. The Environmental policy
includes guidelines on climate actions and energy use. Additionally,
the company surveyed the climate commitments of its suppliers and
partners. As a result of the survey, the company decided to commit to
science-based climate targets (SBTi), which the company believes
will accelerate its ability to engage suppliers and partners in reducing
emissions. The actual commitment occurred after the reporting period.
Additionally, the company prepared to build data capabilities for
collecting information about suppliers and partners. The company has
identified the need to develop the collection of emission data to improve
emission calculations and to set, monitor, and demonstrate absolute
emission targets.
The company did not monitor reductions in indirect greenhouse gas
emissions during the reporting year or prior, as the calculations are
currently largely based on estimates.
Actions to reduce emissions from own operations
In accordance with its Environmental policy, the company is committed
to reducing its operational emissions. Emission reductions are achieved
by selecting renewable energy sources in its own contracts, challenging
landlords to increase renewable energy in properties where the
company is a tenant and investing in energy efficiency.
All electricity used in the company’s operations is produced from
renewable energy, except for the company’s office in Shenzhen,
China, where the electricity used was non-renewable. The electricity
purchased by the company for its Helsinki operations was EPD-
certified renewable energy. The company has stores in Oulu and Raisio
in shopping centers where part of the electricity is produced by solar
power plants installed on the roofs, which the company utilizes when
possible. The company is committed to purchasing solar power in
locations where it is implemented.
The company’s Helsinki operations have used emission-free
renewable district heating since 2021. Emission-free cooling is also
produced with district cooling. The stores in Oulu and Raisio switched to
emission-free renewable district heating in April 2024. The property of
the Pirkkala store has utilized geothermal heating as part of its heating
since 2019. Otherwise, non-renewable district heating is used for
heating the Pirkkala location, and opportunities for acquiring renewable
heat energy are actively being explored.
The company continuously seeks ways to improve energy efficiency.
The switch to energy-efficient LED technology has been implemented
at the Helsinki, Pirkkala, and Raisio locations. In 2023, the company
implemented an energy management software in its Helsinki
operations to optimize heating and cooling, which has reduced energy
consumption. During the reporting year, two of the company’s locations
switched to emission-free renewable district heating. The company’s
operational emissions were low in 2024, at 38 tCO
2
. The company
anticipates that the developments achieved during the reporting year
will further decrease its operational emissions in 2025.
Resources for climate change mitigation
Work to prevent and mitigate the negative environmental impacts of
the value chain is carried out as part of procurement, logistics planning
and facility services, with time allocated to these functions within the
purchasing, logistics and sustainability organizations. The company
has allocated resources for acquiring renewable energy and improving
energy efficiency, as well as for emission calculations. In the short
and medium terms, the company is prepared to implement a project
to set science-based climate targets (SBTi) and to develop emission
calculations as part of the company’s data capabilities development.
The company yet to identify the need to allocate significant human
or financial resources specifically for climate change mitigation. It
is planned to specify medium-term resources in conjunction with
the preparation of the climate change mitigation transition plan, as
described in the Transition plan for climate change mitigation section.
The company does not have significant greenhouse gas or energy-
intensive assets that would cause greenhouse gas emissions lock-in
and transition risk for achieving emissions reduction targets.
Targets related to climate change
mitigation and adaptation
Target
Reduce the company’s own operational emissions (Scope 1 and 2) to 0 tCO
2
by
the end of 2025
Reduce the entire value chain's emissions in accordance with science-based
climate targets (SBTi): 78% of suppliers and partners, measured by emissions,
are committed to SBTi climate targets*
*The formulation of the target is preliminary. The final formulation requires validation by the SBTi
organization to ensure that the target is sufficient from the perspective of the 1.5-degree climate
scenario.
Additionally, the company believes that its circular economy targets
help manage the negative impacts related to climate change, as
extending product lifecycles reduces the need for manufacturing
new products, thereby reducing greenhouse gas emissions from raw
material procurement and production processes. The circular economy
targets and progress in them are described in section E5 – Resource
Use and Circular Economy.
At the end of 2024, the company decided to commit to the Science
Based Targets initiative (SBTi) and is thus committed to setting science-
based climate targets for its entire value chain by December 2026 at
the latest. The company is primarily exploring setting SBTi engagement
targets, entailing a commitment to requiring that a certain portion of
suppliers and partners, measured by emission volumes, set their own
science-based climate targets.
The schedule for reporting on targets of the sustainability program is
described in the Impacts of strategy on sustainability issues section.
43Report of the Board of Directors
2024
Energy consumption and mix
Energy consumption and mix 2024
Consumption of purchased or acquired electricity, heat, steam,
and cooling from fossil sources (MWh)
305
Total fossil energy consumption (MWh) 305
Share of fossil sources of total energy consumption (%) 5%
Consumption from nuclear sources (MWh)
765
Share of consumption from nuclear sources of total energy
consumption (%)
12%
Fuel consumption for renewable sources, including biomass
(also comprising industrial and municipal waste of biological
origin, biogas, renewable hydrogen, etc.) (MWh)
0
Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources (MWh)
5,138
The consumption of self-generated non-fuel renewable energy
(MWh)
0
Total renewable energy consumption (MWh) 5,138
Share of renewable sources of total energy consumption (%) 83%
Total energy consumption (MWh) 6,208
The principles for calculating energy consumption are disclosed in E1 – Reporting principles for
metrics.
Energy intensity per net revenue 2024
Total energy consumption from activities in high climate impact
sectors (MWh)
6,208
Energy intensity
0.013
Net revenue used to calculate energy intensity (thousand euros)
467,829
Total net revenue (in financial statements)
467,829
Gross Scopes 1, 2, 3 and Total GHG emissions
Retrosepective Milestones and target years**
2024 Comparative*
2024
Year-
on-year
change (%)*
2025
2030
2050
Annual %
target /Base
year**
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
eq) 1 N/A
1
N/A
0
0
0
N/A
Percentage of Scope 1 GHG emissions from regulated emission trading
schemes (%)
0 N/A
0
N/A
0
0
0
N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 176 N/A
176
N/A
0
0
0
N/A
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 38 N/A
38
N/A
0
0
0
N/A
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO
2
eq)
194,885
N/A
194,885
N/A
N/A
N/A
N/A
N/A
1 Purchased goods and services
145,283 N/A
145,283
N/A
N/A
N/A
N/A
N/A
2 Capital goods
0 N/A
0
N/A
N/A
N/A
N/A
N/A
3 Fuel and energy-related Activities (not included in Scope1 or Scope 2)
215 N/A
215
N/A
N/A
N/A
N/A
N/A
4 Upstream transportation and distribution
1 114 N/A
1 114
N/A
N/A
N/A
N/A
N/A
5 Waste generated in operations
33 N/A
33
N/A
N/A
N/A
N/A
N/A
6 Business travel
125 N/A
125
N/A
N/A
N/A
N/A
N/A
7 Employee commuting
240 N/A
240
N/A
N/A
N/A
N/A
N/A
9 Downstream transportation
2,047 N/A
2,047
N/A
N/A
N/A
N/A
N/A
11 Use of sold products
45,257 N/A
45,257
N/A
N/A
N/A
N/A
N/A
12 End-of-life treatment of sold products
571 N/A
571
N/A
N/A
N/A
N/A
N/A
Total GHG emissions
Total GHG emissions (location- based) (tCO
2
eq) 195,061 N/A
195,061
N/A
N/A
N/A
N/A
N/A
Total GHG emissions (market- based) (tCO
2
eq) 194,923 N/A
194,923
N/A
N/A
N/A
N/A
N/A
* Reporting starts in 2025.
**The reporting schedule and monitoring of emission targets are presented in the Targets related to climate change mitigation and adaptation section.
GHG intensity per net revenue 2024
Total GHG emissions (location-based) per net revenue (tCO
2
eq/thousand euros)
0.42
Total GHG emissions (market-based) per net revenue (tCO
2
eq/ thousand euros)
0.42
Net revenue used to calculate GHG intensity (thousand euros)
467,829
Total net revenue (in financial statements)
467,829
44Report of the Board of Directors
2024
E1 – Reporting principles for metrics
Energy consumption
The company’s operations falls under industry classification G,
Wholesale and Retail Trade.
The company reports purchased electricity, heating and cooling for all
its locations, excluding the Hong Kong office, which has three employees
and is considered immaterial. The company does not itself produce
electricity, heat, or cooling. Data on purchased electricity, heating, and
cooling is collected from meters at the company’s locations, and details
as well as energy sources, are obtained directly from the electricity
suppliers’ web portals or property managers’ reports, and for operations
in China, from invoices. The company does not have a reporting system
for calculating energy consumption. The underlying assumption is that
the data collected from portals and suppliers is comprehensive and
realistically represents the company’s energy consumption.
The share of renewable energy is calculated by dividing the amount of
energy from renewable sources by the total energy consumption.
Estimations in energy consumption data and possible limitations
of calculation principles
In locations where energy consumption data pertains to the entire
property or shopping center, and the company only rents a part of the
property, the company’s share of energy consumption is calculated
based on the rented square meters. The data for rented square meters
is provided by the property managers. If data for a specific month is
unavailable from the supplier or online portals, consumption is estimated
based on the data available from the previous or following month.
The share of renewable electricity is based on guarantee of origin
certificates. If the electricity’s origin is not specified in the guarantee
of origin certificates, or if its origin cannot otherwise be verified, it is
assumed that no renewable electricity is used.
The underlying assumption for the electricity consumption metrics is that
the data collected from portals and suppliers is comprehensive,realistically
representing the company’s energy consumption and origin. However, the
company acknowledges that there may be uncertainties in the data.
Emission calculation
The company’s greenhouse gas emissions are calculated in accordance
with the Greenhouse Gas (GHG) Protocol. The reporting scope is based
on operational control and includes all the Group’s locations, except for
the Hong Kong office, which has three employees and is considered
insignificant. Reporting covers direct greenhouse gas emissions (Scope
1), indirect emissions from the purchase of electricity, heating, and
cooling (Scope 2), and indirect emissions that occur in the value chain
(Scope 3).
The company reports emissions in carbon dioxide equivalents (CO
2
e).
A carbon dioxide equivalent is a common unit that refers to the different
greenhouse gases included in the GHG Protocol (CO
2
e, CH
4
, N
2
O, HFCs,
PFCs, SF6, and NF3).
The company does not have a separate reporting system for
calculating Scope 1, 2, or 3 emissions.
Direct greenhouse gas emissions (Scope 1)
Scope 1 emissions cover all the company’s direct greenhouse gas
emissions. Direct carbon dioxide emissions occur only at the Helsinki
location, which has a backup generator and sprinkler system that
require fuel replenishment approximately every other year (stationary
combustion). Emissions are calculated by multiplying the amount of
fuel purchased during the year in liters by the emission factor specific to
the type of fuel. The emission factor is based on the emission factor for
light fuel oil according to the fuel classification of Statistics Finland. The
company does not have biogenic Scope 1 carbon dioxide emissions.
Carbon dioxide and other greenhouse gas emissions from emissions
trading systems are not included in Scope 1 emission calculations, as
the company does not have such operations.
Indirect greenhouse gas emissions (Scope 2)
Scope 2 emissions include indirect greenhouse gas emissions from the
production of purchased electricity, heating, and cooling. The company
does not produce electricity, heat, or cooling itself. Scope 2 emissions
are calculated using the amount of purchased electricity (in megawatt-
hours) and regional emission factors. The regional emissions of
purchased electricity are calculated using the average emission factor
for electricity produced in Finland (Fingrid) and the emission factor
for electricity produced in Guangdong province for the China office.
Purchased electricity is produced 100% from renewable energy at all
locations in Finland. Purchased heat energy is district heating produced
from renewable energy at the Helsinki, Raisio, and Oulu locations. Only
the Pirkkala location has part of its heat production from conventional
district heating. For heating and cooling calculations, regional emission
factors provided by energy companies or municipalities are used as
needed, corresponding to the heating method used at the location. The
company does not have biogenic Scope 2 carbon dioxide emissions.
Indirect greenhouse gas emissions (Scope 3)
Scope 3 emissions are reported based on the GHG Protocol and are
divided into 15 subcategories, which the company reports as follows:
Category 1: Emission calculations are based on the Average-data
method defined by the GHG Protocol, where the quantity or mass of
products at the combined category level is multiplied by the product-
specific emission factor. The quantities and masses of sold products are
based on data from the Group’s internal systems. Additionally, emissions
from packaging materials are considered in this category. Emissions
from packaging materials are calculated by multiplying the kilograms of
materials bymaterial-specific emission factors. Packaging material data
from the largest suppliers is obtained from supplier reports. Emissions
from smaller suppliers are estimated based on costs using a general
plastic emission factor.
Category 2: This category includes greenhouse gas emissions from
the procurement of materials for physical capital investments during
the reporting year. In2022–2024, the company did not make significant
investments, so emissions in this category have been insignificant.
The materiality of this category is reviewed annually, taking significant
investments made during the year into account.
45Report of the Board of Directors
2024
Category 3: Calculations are based on fuel and energy-related
activities, including the extraction, production and transport of energy
sources used by the organization. Emissions are calculated using actual
fuel consumption and heating consumption (collected for Scope 1 and 2
emissions). The company uses the electricity emission factor from the
International Energy Agency (IEA) database, directly utilizing kg CO
2
e/
kWh for transmission losses.
Category 4: Calculations are based on the delivery date, and reported
emissions are primarily based on emission reports provided by the
largest suppliers. Emission calculations consider all transport carried
out under the company’s own transport contracts. Emissions from
supplier-responsible transport are estimated based on transport costs.
Calculations do not cover supplier-responsible transport in cases where
the share of transport is not itemized in the invoice. The 2024 emissions
are largely calculated using emission factors that follow the well-to-
wheel (WtW) principles.
Category 5: Emissions from the company’s waste are primarily based
on data from portals maintained by external operators and reports
from property managers. The underlying assumption is that the data
collected from portals and suppliers is comprehensive and realistically
represents the company’s waste data. If emission data is unavailable
from a location, it is calculated by multiplying the generated waste
amounts (in metric tons) by waste category-specific emission factors.
Category 6: Emissions are calculated based on flights, train and
taxi trips, mileage reimbursements and hotel stays recorded in the
company’s travel expense system. Emissions are determined by
multiplying the distances traveled and the number of hotel stays by the
emission factors from Defra (the UK Department for Environment, Food
& Rural Affairs).
Category 7: Calculations are based on estimates of the distance
traveled and the mode of travel (e.g., car, bus, or metro). Data is collected
through an annual survey of all employees, and the data is extrapolated
to cover all employees, taking the proportion of the workforce that has
the opportunity to work remotely into account. In 2024, emissions from
car trips were calculated using Defra’s emission factors, which follow
the well-to-wheel (WtW) principles.
Category 9: Primarily based on emission reports from the largest
suppliers. The 2024 emissions are largely calculated using emission
factors that follow the well-to-wheel (WtW) principles.
Category 11: Calculations are based on estimates of the annual
electricity consumption and lifecycle (3–10 years) of sold consumer
electronics products. Emissions are calculated using the emission factor
for electricity produced in Finland (Fingrid). This category includes only
electronic devices with significant electricity consumption.
Category 12: Calculations are based on the estimated disposal and
recycling of sold products (in kilograms) during the reporting year.
Various emission factors are used for different waste categories:
energy; WEEE (Waste Electrical and Electronic Equipment); paper;
cardboard; and plastic.
Based on the materiality assessment of Scope 3 emissions conducted
in 2022, subcategories 8, 10 and 13–15 are not material to the company.
The company does not have owned or leased assets that are not
included in Scope 1 and Scope 2 calculations. The company’sproducts
are ready for use without additional processing or refining. The company
does not have franchising operations. The company does not own
investments that should be included in the scope of category 15.
Estimations in emission data and possible limitations of
calculation principles
Due to the nature of greenhouse gas emission calculations and long
supply chains, estimates based on the company’s internal estimation
methods are used when primary data is unavailable. The company
acknowledges that this results in uncertainties, particularly in the
calculation of Scope 3 emissions. The company’s goal is to primarily
use first-hand data from suppliers, such as emission reports, and
secondarily internal reporting systems.
46Report of the Board of Directors
2024
E2 – Pollution
Material impacts, risks and opportunities
related to pollution
E2 – Pollution
Impacts
Risks and
opportunities Management
E2.1–3 Pollution of air, water and soil
–
Hazardous chemicals and
heavy metals used during
the procurement and
production of raw materials
can con-taminate air, water,
and soil
None
identified
- Environmental practice
requirements for suppliers,
including the requirement
to consider environmental
aspects in the supply chain
- Environmental aspects
considered as part of audits
for private label suppliers
–
Toxic substances in
electrical and electronic
waste in the downstream
value chain can increase
the release of hazardous
materials into water and
soil
None
identified
- Guiding and encouraging
customers to recycle
properly
- Accepting waste electrical
and electronic equipment
(WEEE), batteries, and
accumulators beyond
producer responsibility
requirements
- Implementing due diligence
in selecting recycling
partners
- Solutions and business
models aimed at extending
product lifecycles
Policies related to pollution
The company’s principles related to environmental pollution are
recorded in its Environmental policy and Supplier Code of Conduct.
In accordance with its Environmental policy, the company is
committed to environmental protection and preventing air, water,
and soil pollution in the upstream and downstream value chain. The
company’s pollution-related impacts concern the upstream and
downstream value chain, not the company’s own operations.
The supplier Code of Conduct defines the requirements for
suppliers regarding chemicals and hazardous substances, emissions
and wastewater, the requirement to commit to the environmental
requirements of the amfori BSCI Code of Conduct, and to consider
environmental aspects in the supply chain as well.
The company’s pollution-related principles generally consider
mitigating, preventing and limiting the negative impacts of air, water and
soil pollution in the upstream and downstream value chain, including the
substitution and minimization of substances of concern in accordance
with EU chemical legislation. The principles do not specifically mention
the elimination of substances of very high concern or the avoidance
of incidents and emergencies, but managing and limiting impacts on
people and the environment regarding environmental impacts is part
of the principles. The company’s principles related to pollution do not
include information about impurities or substances.
Suppliers are a key stakeholder in these pollution-related principles.
Their interests are considered by the fact that amfori BSCI has involved
stakeholders in developing the amfori BSCI Code of Conduct, which is
included in the supplier Code of Conduct and on which the company’s
pollution-related principles are based.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Actions and resources related to pollution
Actions Time horizon Scope Expected outcome
Preparing an
Environmental
policy
2024–2028
Own operations and
value chain globally
Management of
negative impacts
related to pollution
Management
actions in the
upstream and
downstream
value chain
2024–2028
Value chain globally
Management of
negative impacts
related to pollution
In the reporting year, the company identified air, water, and soil pollution
occurring in the value chain as a new material sustainability issue
and developed an Environmental policy that includes guidelines for
preventing pollution.
The company recognizes that negative environmental impacts, such
as pollution, occur at the upstream end of its value chains. They need to
be addressed by raising awareness and finding ways to influence them.
The company has not developed an action plan and does not currently
plan actions to prevent pollution. Instead, the company focuses its
resources on advancing other environmental targets.
Procedures to prevent and mitigate the value chain’s negative
environmental impacts is carried out as part of procurement and
logistics planning, with time allocated to these functions within the
purchasing, logistics and sustainability organizations. The company
yet to allocate significant human or financial resources specifically to
pollution control.
The company monitors the implementation of environmental
requirements set for suppliers through audits of its private label
suppliers that are essentially social responsibility audits but which
include an overview of environmental practices, such as procedures for
identifying environmental impacts, compliance with local environmental
legislation, environmental permits and licenses, water use, and waste
management in a way that does not cause environmental pollution.
The impacts related to the downstream value chain, i.e. the disposal
of electronic devices, are managed by guiding and encouraging
47Report of the Board of Directors
2024
customers to properly recycle electrical and electronic equipment,
batteries, and hazardous substances, and by receiving electronic
waste (WEEE), batteries, and accumulators in accordance with and
beyond producer responsibility, offering the possibility to recycle large
household appliances without a purchase obligation. The company
exercises due diligence in selecting recycling partners to ensure that
recycling is carried out in compliance with requirements. Additionally,
the company offers services supporting the transition to a circular
economy with the aim of extending the lifecycles of functioning
electronic devices and preventing the premature disposal of products.
To support pollution prevention in the downstream value chain, the
company ensures the safe handling, storage, and disposal of chemicals
and hazardous substances and waste in its own operations.
Targets related to pollution
The company has not set targets related to preventing air, water, and soil
pollution. The company does not currently monitor the effectiveness of
its Code of Conduct in relation to material sustainability impacts, risks
and opportunities concerning pollution. The company does not plan
to set targets for the 2024-2028 strategy period due to the difficulty
of measuring impacts, which occur in the upstream and downstream
value chain. The company believes that advancing targets related to
climate change mitigation and the circular economy may enhance
understanding of downstream impacts and thus support the setting of
pollution-related targets in the future.
48Report of the Board of Directors
2024
E5 –Resource use and circular economy
Material impacts, risks and opportunities related
to resource use and circular economy
E5 – Resource use and circular economy
Impacts
Risks and
opportunities Management
E5.1 Resources inflows, including resource use
+
Minimizing resource use
in packaging and other
material uses, and favoring
recycled materials, can
reduce the use of primary
resources
None
identified
- Packaging practices
- Guidelines for packaging
and material choices
E5.2 Resource outflows related to products and services
+
Extending product
lifecycles by offering
circular economy products,
services, and solutions can
reduce the use of primary
resources
None
identified
- Offering used and
refurbished consumer
electronics as an alternative
to purchasing new products,
trade-in and buyback
services, selling returned
devices through outlets,
repair services, spare
parts supply, extended
warranties, developing new
circular economy services
and moving circular
economy services online
+
Extending product
lifecycles through eco-
design can reduce the use
of primary resources
None
identified
- Developing product
durability, repairability,
energy efficiency, resource
use, recycled material
content, and recyclability
+
Minimizing packaging
materials and optimizing
material recyclability can
reduce waste
None
identified
- Minimizing the use of
packaging materials
- Using recyclable packaging
materials
Policies related to resource use and circular economy
The company’s principles for resource use and the circular economy are
recorded in its Environmental policy and supplier Code of Conduct. The
Environmental policy was approved at the end of 2024 to manage the
company’s material sustainability issues, which in this context include
resource inflows, including resource use, and resource outflows related
to products and services. The key content of the Environmental policy
regarding resource use and the circular economy includes packaging
and material choices, the transitioning to a circular economy and
extending product lifecycles, eco-design, and minimizing and directing
waste for reuse.
The detailed content of the policy is presented thematically below.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Packaging and material choices
in accordance with its Environmental policy, the company considers
environmental impacts in its packaging solutions, which include
packaging for online and in-store purchases and packaging materials
for internal transportation. The use of packaging materials is minimized,
and over-packaging is avoided while ensuring that the packaging
protects the product to minimize product waste. The company prefers
renewable materials to plastic and recycled materials to virgin materials.
The company favors responsibly certified paper and cardboard. The
company is committed to reducing plastic shopping bags and does
not use PVC plastic. The company ensures that the materials it uses
are recyclable and develops its sorting instructions. Additionally, the
company sets environmental requirements for its suppliers regarding
product packaging, which are recorded in the supplier Code of Conduct.
Circular economy and extending product lifecycles
in accordance with its Environmental policy, offering products and
services that promote the circular economy is an important part of the
company’s vision of creating a new normal for buying and owning. The
lifecycles of consumer electronics products are extended by offering,
maintenance, repair, and buyback services, for example, as well as
spare parts and refurbished products as an alternative to buying new
products, replacing the use of primary resources with secondary
resources. As an online retailer, the company’s goal is to move the
circular economy online, lowering the threshold for engaging in circular
economy activities.
Eco-design
In accordance with its Environmental policy, the company’s goal is to
consider eco-design principles in its selection, including developing
product durability, reparability, energy efficiency, resource use, the
proportion of recycled materials, and recyclability. Additionally, the
company sets requirements for its suppliers regarding eco-design and
lifecycle thinking in the supplier principles.
Waste minimization and steering towards reuse
In accordance with its Environmental policy, the company optimizes
its waste management according to the waste hierarchy and helps its
customers properly recycle devices that have reached the end of their
life to reuse valuable materials and safely handle hazardous waste.
49Report of the Board of Directors
2024
Actions and resources related to resource
use and circular economy
In the reporting year, the company developed an environmental policy
that includes guidelines on the circular economy and extending product
lifecycles, packaging and material choices, and minimizing and directing
waste for reuse.
Actions Time horizon Scope Expected outcome
Development of
packaging and material
choices, as well as data
collection
2024–2028
Entire value chain
globally
Reducing the use of
virgin materials
Development of
circular economy
product and service
offerings
2024–2028
Entire value chain
globally
Double-digit annual
growth in the sales
of circular products,
services and
solutions
Selling products that
customers actually
need, ensuring product
quality and developing
product information
2021–2028
Own operations
Keeping the product
return rate under 1%
Packaging and material choices – actions in 2024
The company continued actions in line with the packaging and material
choice guidelines recorded in the Environmental policy. During the
reporting year, the proportion of recycled material in packaging materials
was increased by introducing shrink wrap with a 30 % recycled material
content. This change applies to the company’s internal transportation and
wholesale customers and reduces the use of primary resources.
The company’s strategy of focusing on fast deliveries means
increasing the use of automated warehousing, packaging machines, and
express deliveries, which is expected to reduce the use of packaging
materials in the short-, medium-, and long terms. Shipments stored in
the automated warehouse and packaged by the packaging machine
are packed in boxes made of 100% recycled material, which the
machine cuts to the correct size, eliminating the need for packing filler
and avoiding the transport of empty space. Fast deliveries are packed
more lightly than traditional distribution deliveries, and as a new delivery
method, their packaging is continuously developed to actively minimize
the use of packaging materials. For pickup orders, the product’s own
packaging is primarily used. Approximately a quarter of pickup orders
were packed in shopping bags. These practices apply to all customers
and reduce the use of primary resources.
The company is developing data collection related to packaging
materials to improve the reliability of information about the proportion of
recycled material.
The company continued planned actions to reduce the use of paper
for the advertising leaflet, such as reducing the regular circulation and
distribution weeks, as well as thinning the paper thickness and reducing
the leaflet’s size. During the reporting year, the number of distribution
weeks for the leaflet was further reduced by 25%, and at the end of
the year, a decision was made to discontinue the regularly published
advertising leaflet starting from the beginning of 2025, which will
significantly reduce the company’s future use of primary resources and
reduce its indirect climate emissions.
Circular economy and extending product
lifecycles – actions in 2024
The company expanded the range and availability of used and refurbished
devices. At the end of 2024, 170 used devices items were available in
categories such as laptops, desktop computers, peripherals, tablets,
phones, and audio. The company continued to sell returned devices.
The company continued to expand the “Vaihtokauppa” trade-in
service, launched in April 2023 to promote the circular economy, allowing
customers to resell their working used electronic devices for credit. At
the end of 2024, the service covered phones, laptops, smartwatches,
and tablets for selected brands. The service can be used entirely online,
which the company expects to lower the threshold for getting functioning
used devices into circulation and to promote opportunities to extend the
lifecycles of electronic devices. A trade-in service for decommissioned IT
equipment is also offered to corporate customers.
Maintenance services offered for the company’s private label brands
products were expanded to cover new product groups: the maintenance
process was launched for washing machines, dishwashers, and tumble
dryers in the Helsinki, Turku and Tampere areas. Additionally, TV
maintenance was started in the form of spare part replacements and
software updates. The availability and speed of obtaining spare parts for
the maintenance of the products were significantly improved through
the initiation of cooperation with a spare parts wholesaler. The range of
spare parts offered in the online store was also expanded. Furthermore,
previously launched maintenance services for bicycles, electric bikes,
electric scooters, phones, and snow blowers were developed. These
actions support the circular economy and reduce the use of primary
resources in the value chain in the short-, medium-, and long term.
Keeping the product return rate low – actions in 2024
The company’s principle is to sell products that customers actually
need while minimizing returns and waste. This principle was maintained
through internal communication and as part of operational training.
During the reporting year, restructuring was implemented, which
allows for centralized product quality control, thus supporting the
assurance of the quality of the products sold. The development of
product information was also centralized, with responsibility transferred
to the Chief Experience Officer, aiming to enhance its use in customer
experience. The development of product information progressed during
the reporting year, including initiatives to improve product searchability
and comparison, as well as in relation to product recommendations.
Resources related to the circular economy
One person-year was allocated in the reporting year to the continuous
development and integration of the “Vaihtokauppa” trade-in service into
a broader circular economy strategy. The service was launched in 2023,
during which over 3,500 person-hours were used for development
work, such as consulting and system development.
In other respects, work related to resource use and the circular
economy to leverage the value chain’s positive environmental impacts is
carried out as part of procurement, indirect procurement, sales, logistics
planning, marketing and facility services, with time allocated to the task.
50Report of the Board of Directors
2024
Targets related to resource use and circular economy
Target Aspects related to the target Desired impact
Double-digit annual
growth in the sales
of circular products,
services and solutions
The target is related to
the increase in product
design based on the
circular economy and the
minimization of primary
raw materials in the
upstream value chain
- By extending the
lifecycle of products, the
need for manufacturing
new products is reduced
- Building a functional
secondary market
encourages product
design based on the
circular economy
Extending trade-in
service every year to
cover the relevant part
of the company’s HERO-
assortment by 2028*
see above
see above
Keeping product return
rate under 1%
The target is related to
resource use and circular
economy aspects in
the downstream and
upstream of the value
chain, as well as the
prevention layer of the
waste hierarchy
- The company’s principle
of selling products
customers actually
need reduces customer
returns and waste
related to ”change of
minds”
- The company’s
principles regarding the
quality of products sold
reduce quality-related
customer returns and
waste, and encourage
sustainable product
design
* The HERO product range refers to a well-circulating and online-suitable product selection of
approximately 30,000 product codes defined in the company’s strategy. This range supports
the company’s customer value promise of fast deliveries and includes the company’s custo-
mers’ most desired products.
The targets are voluntary, not required by legislation. The company has
not yet set ESRS-compliant targets for increasing the use of recycled
materials or the sustainable sourcing and use of renewable resources.
Progress in target
The company’s sustainability target to keep the product return rate
below 1 % annually supports the company’s principle of selling products
that customers actually need, while reducing customer returns and
waste. The target is set for 2021–2028 and progress is tracked annually,
meaning that a separate base year has not been set. The target was
included in the company’s original sustainability program for 2021–2025
and is included in the updated program for 2024–2028. The target has
been set considering the views of key stakeholders. The target is self-
imposed by the company and is not based on scientific evidence.
As part of the sustainability program, the metric examined is the
Group’s overall product return rate, which includes “change of mind”
returns, meaning situations where the customer returns a product
unused or within a maximum 32-day trial period, and service returns,
meaning situations where the customer returns a product due to a
verified or perceived defect. In 2024, the company’s overall return rate
was 1.0%, with the share of so-called change of mind purchases being
0.7% and service returns 0.2%.
The schedule for reporting on targets of the sustainability program is
described in the Impacts of strategy on sustainability issues section.
Resource inflows
Description of the company’s material resource inflows
The company’s reported resource inflows are minor. The company’s
core business is retail, and it does not have its own manufacturing
operations, so the company does not report resource inflows related
to the production of the products it sells. The company’s material
resource inflows are only packaging materials, which are primarily
used for packaging online purchases, and paper, which is used for
the company’s advertising leaflet, which has a large distribution. The
company’s material resource inflows do not include biological materials.
The company’s resource use is described in more detail in the Actions
and resources related to resource use and circular economy section.
Resources inflows (packaging materials and advertising leaflet)
The overall total weight, metric tons 2024
Cardboard 194
Plastic
27
Paper 36
Paper (advertising leaflet)
343
Total
599
The proportion of certified packaging material (FSC certification) was
3%. The company received information about the proportion of certified
material from only one supplier.
Use of recycled components
2024 Weight, metric tons
Percentage of total
resource inflows (%)
Recycled packaging materials 159 27
The proportion of recyclable raw materials in packaging materials is 100%.
The calculation principles for resource inflows are presented in
section E5 – Reporting principles for metrics.
Resource outflows
Waste streams relevant to the company’s industry or operations include
wood waste, cardboard, and electronic waste. Wood waste consists of
pallets used in transport, which are directed for reuse but appear as a
significant waste stream due to their weight.
The company’s core business is retail, and it does not have its own
manufacturing operations, therefore the company does not consider
sold products as resource outflows and does not report the expected
durability of the products it places on the market relative to the industry
average, the reparability of the products, or the proportion of recyclable
materials in the products.
The company has the possibility to indirectly influence the lifecycle
extension and reparability of the products it places on the market. The
use of resources and actions to extend product lifecycles and promote
51Report of the Board of Directors
2024
reparability are described in more detail in the Actions and resources
related to resource use and circular economy section.
Waste generated, in metric tons
Waste generated Waste diverted from disposal Waste directed to disposal
1,582 1,582 0
All waste generated at the company’s premises is recycled, reused or
directed to energy recovery. No waste is sent to landfill.
Waste diverted from disposal by recovery operation, in metric tons
Hazardous waste
Preparation for reuse
0
Recycling 0
Other recovery options
10
Total 10
Non-hazardous waste
Preparation for reuse 747
Recycling
715
Other recovery options
110
Total 1,572
Summary
Total amount of waste in metric tons
1,582
Total amount of hazardous waste in metric tons
10
Total amount of non-recycled waste in metric tons 110
Percentage of non-recycled waste
7%
E5 – Reporting principles for metrics
Resource inflows – packaging materials
The company does not have its own production. The company’s material
inflows include packaging materials and the company’s advertising
leaflet. The calculation methods are the same for all the company’s
packaging materials.
The data on packaging materials (in metric tons) is collected from
the company’s largest suppliers, covering an estimated 99% of all
packaging materials used. The data includes the amounts of materials
reported by the suppliers and the proportions of recycled materials.
The consumption of recycled materials in metric tons is calculated
based on the percentages reported by the suppliers from the total
material consumption for each material. If the supplier has not provided
information about the proportion of recycled materials, it is assumed
that the material does not contain recycled material.
The proportion of materials certified through packaging material
certification systems is based on information provided by the suppliers.
Potential limitations in packaging material calculation principles
The underlying assumption in the calculations is that the information
provided by the largest suppliers is comprehensive and realistically
represents the company’s use of packaging materials. In cases where
third-party data is unavailable, the missing information is primarily
estimated based on the data from the preceding or following month
to ensure comprehensive data. The company continuously strives to
improve the coverage and accuracy of data collection.
Resource outflows - non-hazardous and hazardous waste
The company’s Waste management policy follows the waste hierarchy,
where the primary goal is to prevent waste generation, followed
by promoting the reuse and recycling of materials. The company’s
main waste streams consist of ordinary waste generated at the
premises, such as cardboard and packaging materials, pallets used for
transportation, and electronic waste (WEEE) and batteries collected
from all premises, consumers, and maintenance operations, which are
classified as hazardous waste.
All waste generated at the company’s premises is recycled, reused or
directed to energy recovery. No waste is sent to landfill.
The company does not produce or handle radioactive waste.
Potential limitations in waste accounting
Waste data is collected from portals maintained by external operators
and based on supplier reports. The weights of property waste,
hazardous waste, and WEEE (Waste Electrical and Electronic Equipment)
are based on actual weight measurements. Pallets are reported in
units, with their weight estimated in metric tons according to different
pallet types. In cases where third-party data is unavailable, missing
information is primarily estimated based on the data from the preceding
or following month to ensure comprehensive waste data reporting.
Hazardous waste is overseen in accordance with applicable laws and
environmental regulations.
The company’s total amount of non-recycled waste includes ordinary
waste directed to incineration for energy recovery. The company’s
recycling rate includes all other waste categories, including pallets.
Wooden pallets used in transport can be reused multiple times, and
as heavy material, they have a significant impact on the company’s
recycling rate.
The underlying assumption in the company’s waste calculation is that
the data collected from portals and suppliers regarding property waste,
pallets, hazardous waste, and WEEE is comprehensive and realistically
represents the company’s waste accumulation. However, the company
acknowledges that there may be uncertainties associated with the data.
52Report of the Board of Directors
2024
SOCIAL RESPONSIBILTY
S1 – Own workforce
Material impacts, risks and opportunities
related to own workforce
S1 – Own workforce
Impacts Risks and opportunities Impact area
S1.1 Working conditions
+
Paying wages and providing employee
benefits that exceed industry standards
can enhance and maintain employee
satisfaction and well-being, and motivate
staff to work towards the company’s targets
–
Work accidents and sick leaves can increase
operational costs
- Coaching leadership
- Paying wages above the retail sector’s collective agreement rates, including
the company’s own 6.67% bonus, paying the capital city wage level throughout
Finland, and practices favorable to employees regarding annual raises and training
- Comprehensive employee benefits
- Monitoring sick leave, regularly assessing safety risks and hazards with the
occupational safety representative
–
The lack or insufficiency of sustainable HR practices
can increase employee turnover, which may raise
costs, complicate recruitment, and damage the
brand
- Training supervisors in safety management
- Consistent and robust HR practices defined in the Personnel policy
- Supporting the company’s values defined together with employees and fostering a
responsible organizational culture
- Emphasizing equality
+
Providing opportunities for professional development
through skill enhancement can improve operational
efficiency and reduce costs
+
A motivated, skilled, and healthy workforce enables
efficient operations, thereby reducing costs,
improving customer satisfaction, increasing sales,
and decreasing the likelihood of disability pensions
- Employee training
- Mentorship program
- Regular goal and development discussions
- Internal career paths
- Coaching leadership
S1.2 Equal treatment and opportunities for all
+
Opportunities for professional development
can increase commitment, the sense of
meaningful work, and well-being at work, for
example, through perceived competence
+
A motivated, skilled, and healthy workforce enables
efficient operations, thereby reducing costs,
improving customer satisfaction, increasing sales,
and decreasing the likelihood of disability pensions
- Employee training
- Mentoring program
- Regular goal and development discussions
- Internal career paths
- Coaching leadership
+
Prohibiting discrimination can reduce
all forms of harassment, bullying, and
discrimination (positive actual impact)
- Prohibition of discrimination in Code of Conduct and Personnel policy
- Internal personnel development plan to promote and maintain equality and equity
- Role classification system based on job demands
- Anti-discrimination recruitment practices and supervisor orientation
- Diversity working group activities
53Report of the Board of Directors
2024
Policies related to own workforce
The company’s principles for managing material sustainability issues
related to its own workforce are documented in the company’s Code of
Conduct and further detailed in the Personnel policy. Additionally, the
company’s operations are guided by applicable legislation.
In accordance with its Code of Conduct, the company respects and
promotes internationally recognized human rights. This also relates to
its own workforce. As outlined in more detail in the Personnel policy,
the company avoids causing or contributing to adverse human rights
impacts and addresses any potential impacts. The company does not
tolerate human trafficking or the use of child labor or forced labor. The
company upholds the right to fair working conditions, a healthy and
safe working environment, reasonable working hours, and adequate
compensation for work. The company respects employees’ freedom of
association and the right to collective bargaining.
In line with its Personnel policy, the company does not tolerate any
form of discrimination, harassment, or unequal treatment based on race
or ethnic origin, skin color, gender, sexual orientation, gender identity,
gender expression, disability, age, religion or belief, political opinions,
trade union activity, national or social origin, educational background,
nationality, language, economic status, health, appearance, family
relationships, family responsibilities, or any other personal reason. A
model for addressing harassment and inappropriate behavior is in place,
and employees are instructed to raise any issues. Cases are promptly
addressed on discovery, and all reports are handled fairly, impartially,
and confidentially. The company has principles for creating a safer
space to ensure that everyone can feel mentally and physically safe
without fear of discrimination, harassment or bullying. The experience
of diversity and equality is monitored as part of employee surveys.
In accordance with its Code of Conduct, the company’s
operations are guided by international declarations, agreements, and
recommendations, such as the UN Universal Declaration of Human
Rights and the Convention on the Rights of the Child, the ILO Convention
on Fundamental Principles and Rights at Work, the OECD Guidelines for
Multinational Enterprises, and the UN Guiding Principles on Business
and Human Rights. The company’s Code of Conduct related to its own
workforce are derived from internationally recognized standards and
the UN Guiding Principles on Business and Human Rights and, in the
company’s interpretation, are in line with them.
The company has an occupational safety program, with the main
target of preventing workplace accidents and developing occupational
safety work, including an annual assessment of risks and hazards
in all operations. These plans and programs are developed in
collaboration with employee representatives and are a significant part
of communication with the company’s own workforce.
Knowledge and respect for human rights and labor rights are ensured
through annual Code of Conduct training, which is required for all
employees. Additionally, training is available to employees to promote
diversity and inclusion, and various models are in place to address
potential issues.
Measures to address and/or enable the correction of human rights
impacts related to own workforce are detailed in the Stakeholder
Dialogue table.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Processes for engaging with own workforce and
workers’ representatives about impacts
In addition to daily interactions, the company’s general processes for
communication with employees and their representatives include
the employee survey conducted 3-4 times a year, the internal
personnel development plan, the equality and non-discrimination
plan, the occupational safety program, the activities of the diversity
group, various training sessions and coaching, a transparent process
for employee ideas, the reporting channel, employee information
sessions, and readiness group activities. The company’s operating
model involves engaging employees in the planning and development
of operations both directly and through employee representatives and
considering employees’ perspectives in decisions and actions related
to the workforce and operational development. The company has shop
stewards and occupational safety representatives at each location.
Senior employees are represented by a trust representative. Informative
cooperation negotiations are widely and purposefully utilized. The
company maintains continuous and transparent dialogue between the
employer and employee representatives through regular discussions.
• Quarterly discussions are held between the CEO, the Chief HR Officer,
selected Management Team members, and employee representatives
about the company’s development prospects, financial situation,
workplace rules, practices and principles, workforce utilization,
employee structure, skill development, maintaining and promoting
well-being, and other current issues from the last quarter.
• The HR manager conducts a status review with shop stewards 2-4
times a month on current issues.
• If necessary, changes are negotiated with employee representatives
before implementation.
The Chief HR Officer has operational responsibility for communication
and incorporating the results into the company’s practices.
The company applies the collective agreement between the retail
employers’ association and the service sector union to the extent
applicable to the workforce, and the dialogue model of the collective
agreement to the entire staff. The effectiveness of communication is
demonstrated by various agreements and results that have arisen from
employee initiatives. Recent examples are related to the pay grades and
working hours of logistics employees and the use of temporary workers
in after-sales tasks.
The perspectives of the company’s workforce on diversity and
inclusion are measured as part of the employee survey, which allows free-
form anonymous feedback. Statutory workplace surveys also address
inclusion and diversity. Additionally, both the company’s own and external
workforce can use the company’s reporting channel. The diversity group’s
activities support increasing awareness of diversity, equity, and inclusion.
In addition to regular dialogue, the company plans to conduct a survey on
the experiences of minority groups regarding vulnerability and develop
practices to improve the treatment of minority groups if necessary.
54Report of the Board of Directors
2024
Channels for own workforce to raise concerns
The company encourages its employees to voice concerns and seek
advice in unclear situations. The primary contact for employees is their
immediate supervisor. Alternatively, suspected misconduct or concerns
can be reported to the HR department or company Management Team.
Additionally, employees have the option of making anonymous reports
through the reporting channel. There are separate reporting channels
for concerns related to information security and facility security, which
the company has established independently.
The company supports the use of reporting channels in the
workplace by providing training and informing employees about the
existence and use of these channels, ensuring that everyone has
sufficient knowledge of these options. The company’s Whistleblowing
team regularly monitors and reviews reported and handled issues and
assesses the effectiveness of the channel. Additionally, the company
has policies in place to protect individuals who use reporting channels
or complaint mechanisms from retaliation. The reporting channel is
described in more detail in the Mechanisms for identifying, reporting
and investigating concerns section.
Taking action on material impacts on own workforce,
and approaches to mitigating material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions
Actions Time horizon Scope Expected outcome
Promoting
working
conditions and
safety
2024–2028
Own
operations
globally
- Improving employee well-
being by 0.1 points annually
Promoting equal
opportunities
for all and skill
development
2024–2028
Own
operations
globally
- Improving employee
engagement to exceed
benchmark by 2028
- Improving employee well-
being by 0.1 points annually
- Improving experience of
diversity and inclusion by
0.1 points annually
Working conditions and safety – 2024 actions and resourcing
The company focuses on long-term activities that promote health
and safety. Sick leave is monitored. Occupational safety risks and
hazards are regularly assessed in cooperation with occupational safety
representatives. Data is utilized in data-driven management. The focus
of occupational health services is on prevention.
Coaching leadership, supporting mental well-being, early intervention
discussions, zero tolerance of harassment and inappropriate behavior,
communicating about occupational safety and preventing work-related
retirement risks are tangible measures to ensure and strengthen well-
being.
The company invests in comprehensive mental health support
to reduce mental health-related sick leave, aiming for less than
two workdays per person per year. Measures included increasing
supervisors’ skills, targeted training, and communication about the
importance of mental healthcare and the available mental health
support options. For employees with identified reduced work capacity,
a personal advancement plan is created.
Resources for developing well-being and occupational safety are
primarily allocated to supervisory work, training and the time used for
daily management. The well-being and occupational safety specialist
in the HR department covers both operational and strategic tasks,
including close cooperation with various stakeholders, collaboration
with occupational safety representatives and interdepartmental
cooperation.
Equal treatment, equal opportunities for all and skill development –
2024 actions and resourcing
Skill development actions in 2024 included extending the regular goal
and development discussions to the entire own workforce, various
employee training sessions, an internal mentoring program and career
path development. In 2024, goal and development discussions were
offered to all employees with an employment contract.
In 2024, the specific focus areas for skill development were
coaching leadership, work efficiency, communication skills, product
knowledge, and offering formal education (apprenticeship degrees in
the retail sector). In online learning, special focus areas were customer
experience, safety, and diversity. Blended learning, which combines
online learning, self-study and classroom training, was preferred for
skill development. Approximately thirty people participated in the
company’s internal mentoring program in the reporting year.
Equality and non-discrimination were promoted in the reporting
year by developing equal and anti-discrimination practices and by
communicating and training staff through classroom training and online
courses. Additionally, the company’s diversity group aimed to raise
awareness of diversity and equality through communication.
The role classification system introduced in 2023 helps promote
pay equality and equal career advancement. In 2024, the company
continued training supervisors on the classification system.
The responsibilities of the learning culture manager in the HR
department include promoting the company’s skill development and
diversity work. The manager’s responsibilities cover both operational
and strategic tasks, such as planning and implementing training,
developing equality programs, and strengthening the learning culture
within the organization. Additionally, the company’s diversity group
advances and promotes diversity work alongside their regular duties.
An annual internal personnel development plan, covering the entire
staff, is prepared each year, defining the annual targets and actions
for developing and maintaining staff skills and well-being. Employee
representatives participate in the preparation of the development plan
to ensure that it considers the views of relevant stakeholders. Through
the development plan, the company aims to ensure that actions
and practices do not cause significant negative impacts on its own
workforce. Additionally, the annual equality and non-discrimination
plan describes the actions and goals for promoting equality and non-
discrimination.
55Report of the Board of Directors
2024
Targets related to advancing material positive impacts,
and managing material risks and opportunities
Target
Improving employee engagement to exceed benchmark* by 2028
Improving employee well-being by 0.1 points annually
Improving experience of diversity and inclusion by 0.1 points annually
* The target is to exceed the 2028 benchmark for consumer companies by the end of 2028
In addition to the targets of the sustainability program, the company
actively monitors the personnel-related metrics reported in this section.
The targets presented above were defined in collaboration with
employee representatives, setting targets that support the company’s
vision to promote the well-being and growth of its own workforce. The
reporting schedule related to the targets of the sustainability program
is described in the Impacts of strategy on sustainability issues section.
The measures implemented during the reporting year to advance the
targets are described in section S1 Processes for engaging with own
workers and workers’ representatives about impacts, and S1 Taking
action on material impacts and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches.
Characteristics of the undertaking’s employees (S1-6)
Gender Number of employees (head count)
Men 452
Women
163
Country Number of employees (head count)
Finland 597
China
18
2024 Women Men Total
Number of employees (head count)
163
452 615
Number of permanent employees (head count)
144
421 565
Number of temporary employees (head count)
19
31 50
Number of non-guaranteed hours employees
(head count)
0
0
0
Number of full-time employees (head count)
108
358 466
Number of part-time employees (head count)
55
94 149
The main reasons for fixed-term employment are seasonality (28%) and
substitution (58%). On average, fixed-term employees accounted for
about 9% of the company’s workforce, which is significantly below the
national level (21%). Source: Statistics Finland’s Labour Force Survey
2009–2023.
In 2024, the number of employees who left the company was 162, and
the turnover rate was 25.5%. All figures provided match the financial
statement figures.
Characteristics of non-employee workers in
the undertaking’s own workforce (S1-7)
As of 31 December 2024, there was a total of 156 non-employees, which
included seven independent contractors and 146 workers primarily from
companies engaged in employment activities. Additionally, there were
three interns.
S1-6 Reporting principles for metrics
The figures presented in the table are exact numbers. The figures
come from the company’s continuously maintained HR system, and the
numbers presented in the table are reported as the number of personnel
at the end of the reporting period.
S1-7 Reporting principles for metrics
The figures come from the company’s continuously maintained HR
system and the numbers presented are reported as the number of
personnel at the end of the reporting period. The number of non-
employees does not change significantly during the period. A significant
number of non-employee workers are provided by employment
agencies and are utilized as required, particularly to manage unexpected
workload increases.
56Report of the Board of Directors
2024
Collective bargaining coverage and social dialogue (S1-8)
Collective Bargaining Coverage Social dialogue
Coverage
Rate
Employees – EEA
(for countries
with >50 empl.
representing >10%
total empl.)
Employees – Non-
EEA (estimate for
regions with >50
empl. representing
>10% total empl)
Workplace
representation (EEA
only) (for countries
with >50 empl.
representing >10%
total empl)
0–19%
20–39%
40–59%
60–79% Finland
80–100% Finland
The company has not established agreements with a European Works
Council (EWC), a Societas Europaea (SE) Works Council, or a Societas
Cooperativa Europaea (SCE) Works Council.
Diversity metrics (S1-9)
Top management Head count Percentage
Women 3 37.5
Men 5 62.5
Personnel by age group Head count Percentage
Under 30 years 136 22.1
30–50 years 460 74.8
Over 50 years 19 3.1
Adequate wages
All employees are paid wages that meet or exceed the terms of the
collective agreement.
Social protection (S1-11)
All the company’s employees are covered by social protection against
income loss due to major life events, either through public programs
or benefits provided by the company. These life events include: illness,
unemployment, work-related injury and disability, parental leave, and
retirement.
Training and skills development metrics (S1-13)
Share of employees participating in regular performance and career
development reviews (percentage)
Women 88
Men 94
Average number of training hours per employee
Women 5.6
Men 5.6
Health and safety metrics (S1-14)
Occupational Health and Safety Indicators Metric Additional information
Share of employees with employment
contracts covered by occupational
health services (%)
100%
Number of fatalities due to work-
related injuries and occupational
health issues
0
Occupational accidents 17
Accident frequency 10.3 The figure is calculated
by dividing the number
of workplace accidents
leading to sick leave by the
number of hours worked
and multiplying the result
by one million.
Number of occupational health issues
(occupational disease)
0
Number of workdays lost due to work-
related accidents
30
S1-8 Reporting principles for metrics
The figures presented in the table are exact numbers. The figures
come from the company’s continuously maintained HR system, and the
numbers presented in the table are reported as the number of personnel
at the end of the reporting period.
S1-9 Reporting principles for metrics
The definition of top management is one level below the administrative
and supervisory bodies (the Group Management Team).
The figures presented in the table are exact numbers. The figures
come from the company’s continuously maintained HR system, and the
numbers presented in the table are reported as the number of personnel
at the end of the reporting period.
S1-13 Reporting principles for metrics
The number of training hours is partly based on an estimate, assuming
that the number of hours is the same for both genders. Where exact data
was available, the gender distribution was balanced.
S1-14 Reporting principles for metrics
The figures come from the company’s continuously maintained
HR system, the occupational health system, and the work accident
insurance provider’s system. The company complies with Finnish law,
which mandates that occupational health services are provided to all
employees. For other figures, the number of work-related accidents and
occupational health issues are obtained from the occupational health
services and the work accident insurance provider. The number of
working hours required
57Report of the Board of Directors
2024
Work-life balance metrics (S1-15)
Family-related leave Percentage
Share of employees entitled to take family-related leave (%) 100
Share of employees entitled to take family-related leave who
took parental leave (%)
17.4
Share of employees entitled to take familiy-related leave who took
parental leave
Percentage
Men 70
Women 30
Remuneration metrics (pay gap and
total compensation) (S1-16)
Pay gap and total remuneration Percentage/ratio
Gender pay gap* 1.7
Ratio of the highest paid individual to the median annual
remuneration for all employees
12.1
* The gender pay gap figure contains uncertainty for 2024 because the calculation method was
refined from Q3 onwards to be more accurate and in line with ESRS guidelines.
The gender pay gap is mainly explained by certain high-paying roles.
Incidents, complaints and severe
human rights impacts (S1-17)
Incidents, complaints and severe human rights impacts 2024
Total number of incidents of discrimination, including
harassment, reported in the reporting period
0
Number of complaints filed through channels for people in
the undertaking’s own workforce to raise concerns
0
Total amount of fines, penalties, and compensation for
damages as a result of the incidents and complaints
disclosed above
0
No concerns were reported through the company’s reporting channel
in 2024. The company has not identified any serious human rights
cases during the reporting period and no related fines, penalties, or
compensations were paid.
S1-15 Reporting principles for metrics
The figures presented in the table are exact numbers. The figures
come from the company’s continuously maintained HR system, and
the numbers presented in the first table are reported as the number of
personnel at the end of the reporting period. The number of employees
with employment contracts who took parental leave is presented for the
entire reporting period.
S1-16 Reporting principles for metrics
The figures presented in the table are exact numbers. The figures
come from the company’s continuously maintained HR system, and the
numbers presented in the table have been calculated using the total
wages for the reporting period.
S1-17 Reporting principles for metrics
The figures include reports received through the reporting channel.
All forms of harassment, bullying, or discrimination are prohibited, as
defined in the Code of Conduct and Personnel policy. Employees are
instructed to raise any potential cases by contacting their supervisor, a
shop steward, the HR department, or management, for example. Cases
are addressed immediately on being raised, and confidential hearings
are arranged to resolve the situation. Cases are primarily resolved
by supervisors, and only some cases come to the attention of the HR
department, so there is no precise tracking of the number of cases.
During the reporting year, some harassment cases were handled in
accordance with the company’s processes.
58Report of the Board of Directors
2024
S2 – Workers in value chain
Material impacts, risks and opportunities
related to workers in the value chain
S2 – Workers in value chain
Impacts
Risks and
opportunities Management
S2.1 Working conditions
S2.2 Equal treatment and opportunities for all
S2.3 Other work-related rights
+
The company’s
requirements and control
mechanisms can have
a positive impact on the
working conditions of value
chain workers.
None
identified
- Due diligence in the
selection of suppliers
- Supplier requirements
- Membership in the amfori
BSCI program promoting
sustainable trade
- Social responsibility audits
and the development plans
based on audit results, and
their follow-up
Policies related to value chain workers
The company’s principles regarding workers in the value chain is
documented in the supplier Code of Conduct, which broadly covers
human rights, social and environmental responsibility, and risk
materials, for example. In terms of social responsibility, the covered
topics include governance practices and supply chain management,
employee engagement and protection, the right to organize and
negotiate, prohibition of discrimination, violence, and harassment,
fair remuneration, reasonable working hours, occupational health and
safety, prohibition of child labor, special protection for young workers,
prohibition of precarious employment, prohibition of forced labor,
human trafficking and smuggling, environmental protection, and ethical
business practices, in accordance with the principles of amfori BSCI.
The company respects and promotes internationally recognized
human rights. This includes workers in the value chain. Respect for
human rights is documented in the company’s Code of Conduct and
specified in the supplier Code of Conduct, considering cooperation
with partners in countries where human rights and labor rights are not
sufficiently protected by law. Furthermore, the supplier Code of Conduct
states that the company’s operations are guided by international
declarations, agreements, and recommendations such as the UN
Universal Declaration of Human Rights and the Convention on the Rights
of the Child, the ILO Convention on Fundamental Principles and Rights
at Work, the OECD Guidelines for Multinational Enterprises, and the UN
Guiding Principles on Business and Human Rights, according to which
the company is committed to identifying, preventing and mitigating
potential adverse human rights impacts related to business operations.
Measures to address and/or enable the correction of human rights
impacts related to workers in value chain are detailed in the Stakeholder
Dialogue table.
The company exercises due diligence in selecting its suppliers and
aims for long-term partnerships. The company has been a member
of the amfori BSCI program since 2021, which promotes sustainable
trade, and is committed to the BSCI principles and the continuous
improvement model. The company requires all its suppliers to comply
with the company’s Code of Conduct and to commit to the supplier
Code of Conduct, which includes the amfori BSCI principles and is
part of the contract terms. The supplier Code of Conduct covers all the
company’s suppliers, regardless of geographical location. The company
does not have its own production facilities. The company complies
with all applicable trade sanctions and customs import and export
regulations.
Suppliers and value chain employees globally are a key stakeholder
group in the Code of Conduct. Their interests have been taken into
account, considering that amfori BSCI has involved stakeholders in
drafting the amfori BSCI Code of Conduct, which is part of the company’s
supplier Code of Conduct. The BSCI Code of Conduct is available to value
chain workers in all manufacturing factories subject to BSCI audits.
During the reporting year, the company did not become aware
of any adverse decisions regarding cases related to workers in the
value chain at the beginning and end of the value chain, where the UN
Guiding Principles on Business and Human Rights, the ILO Declaration
on Fundamental Principles and Rights at Work, or the OECD Guidelines
for Multinational Enterprises were not followed. The company plans to
update its procurement practices and supplier Code of Conduct during
2025 to support data collection and reporting on sustainability targets
related to value chain emissions and employee working conditions. At
the same time, other clarifications will be made in the update to ensure
that the Code of Conduct fully correspond to the impacts, risks, and
opportunities identified through the double materiality assessment
across the entire value chain.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Processes for engaging with value chain
workers about impacts and channels for
value chain workers to raise concerns
Engagement with workers in the value chain is continuous and
occurs indirectly through supplier representatives, and for suppliers
manufacturing the company’s private label products, also through
third-party social responsibility audits. The company leverages its
membership of the amfori BSCI program, a leading industry initiative
promoting sustainable trade, for communication. The company’s
Chief Commercial Officer, who is part of the Management Team, is
responsible for ensuring that communication takes place and that the
results are considered in the company’s practices. The operational
responsibility for hearing value chain employees through audit data
lies with the quality assurance employees within the purchasing
organization. The company ensures that they have up-to-date expertise
to properly fulfill their roles.
Most of the company’s private label products are manufactured
in countries with a considerable risk of human rights and labor rights
violations, based on amfori BSCI risk country classifications and
World Bank indicators. The company requires suppliers of its private
label products operating in high-risk countries to provide evidence or
consent to an amfori BSCI audit or another reliable third-party social
59Report of the Board of Directors
2024
responsibility audit before placing an order. The audit result must be
approved and valid. Suppliers must prepare a corrective action plan for
all significant findings in the audits, and in the case of a failed audit, new
orders can only be placed once the critical deficiencies leading to the
failure have been corrected.
The BSCI program includes a zero-tolerance model for cases where
the auditor finds evidence of issues such as child labor, forced labor,
inhumane treatment, occupational health or safety violations that pose
an immediate danger to life, health, or safety, or unethical behavior
such as bribery or concealment by the auditor. In such situations, a
rapid alert program is initiated, where companies associated with the
manufacturing facility in question are immediately informed of the
suspected violations, and a process to rectify the situation is initiated.
During the reporting year, the company was not made aware of any
zero-tolerance cases, nor was it involved in any related investigation or
remediation programs that would have offered or supported corrective
actions for those harmed by the impacts.
Through the observations made by the auditor and the employee
interviews conducted as part of the audit, the company obtains
information about the situation of value chain employees. According
to the BSCI program’s principles, employee rights and various
occupational safety information, must be clearly visible to employees
in a language they understand. Additionally, the supplier must provide
its employees with a grievance mechanism and communicate about
it. The compliance of the grievance mechanism is verified in the audit.
The company considers the measures to remedy the negative impacts
of processes to be sufficiently effective. The company monitors the
effectiveness of actions and initiatives in delivering results for value
chain workers through its amfori BSCI membership.
The company’s own reporting channel for raising concerns is
available to anyone if required, including value chain workers or their
legal representatives. Information about the reporting channel can
be found in the company’s Code of Conduct, which is available on
the company’s website in Finnish and English. The company has
whistleblower protection principles in place, which are expressed in the
company’s Whistleblowing policy.
Taking action on material impacts on value chain
workers, and approaches to managing material risks
and pursuing material opportunities related to value
chain workers, and effectiveness of those actions
Actions Time horizon Scope Expected outcome
Monitoring
supplier
compliance
2024–2028
Upstream
value chain
globally
Ensuring that 100% of direct
suppliers provide adequate
working conditions
The company manages significant impacts on workers in value chain
by exercising due diligence in supplier selection, setting requirements
for its suppliers, and being a member of the amfori BSCI program, as
described in section S2 Policies related to value chain workers.
Monitoring supplier compliance – 2024 actions and resourcing
The company’s actions to monitor the effectiveness of the requirements
set for suppliers in 2024 focus particularly on the value chains of its
private label products and other own imports, where it has relatively
better influence than international brands. Sustainability issues are part
of contract negotiations.
At the end of the reporting year, the company expanded its target
of ensuring adequate working conditions for workers in value chain
to cover all direct suppliers in its updated sustainability program. The
company plans to update its procurement practices and supplier Code
of Conduct during 2025 to support this target.
In the reporting year, the company continued active supplier selection
and evaluation work. The number of suppliers was reduced, which
in part enhances the company’s ability to communicate and monitor
sustainability targets related to value chain employees. Additionally,
the company centralized its oversight on product quality, compliance,
and sustainability to ensure an efficient and responsible procurement
process.
Work to prevent and mitigate negative impacts on the value chain and
leverage positive impacts is carried out as part of procurement, logistics
planning and facility services, with time allocated from the procurement,
logistics and sustainability organizations. The implementation of
planned development measures did not require significant operating
expenses (OpEx) and/or capital expenditures (CapEx).
Targets related to advancing and
managing material positive impacts
Target
Ensuring that 100% of direct suppliers provide adequate working conditions
In defining the target, insights collected from stakeholders regarding
the impacts on the value chain were utilized, and key interests and views
of value chain employees, as well as the human rights perspective,
were considered, as described in the Stakeholder dialogue table.
Engagement with workers in the value chain, which also concerns
target setting, is described in the section Processes for engaging
with value chain workers about impacts and channels for value chain
workers to raise concerns. The reporting schedule related to the
sustainability program’s targets is described in the Impacts of strategy
on sustainability issues section.
60Report of the Board of Directors
2024
S4 – Consumers and end-users
Material impacts, risks and opportunities
related to consumers and end-users
S4 –Consumers and end-users
Impacts
Risks and
opportunities Management
S4.3 Social inclusion of consumers and/or end-users
+
Enabling equal
access to the
company’s products
and services for all
consumer groups can
positively contribute
to social inclusion
among consumers
+
Equal access to
products and
services for all
consumer groups
can increase the
company’s sales
company’s products
and services for all
consumer groups,
can positively
contribute to social
inclusion among
consumers
- The company’s
products and services
are equally accessible
to all consumer groups
online, including
essential products
such as mobile phones,
customer service,
and circular economy
services
- Home deliveries
- Fast deliveries
- Ensuring accessibility of
the online store
Policies related to consumers and end-users
The company’s operating principles related to consumers and end-
users are documented in the company’s Code of Conduct and,
regarding privacy, specified in the Information security policy and
privacy statement, covering all customers and end-users.
In accordance with its Code of Conduct, Verkkokauppa.com treats
and serves all customers equally, ensures the safety of its customers’
transactions in stores and online, and ensures the safety and compliance
of the products sold. In line with its Code of Conduct, the company
respects and promotes internationally recognized human rights. This
also applies to customers, and the company does not tolerate any
discrimination against or harassment of customers. Customer data
and other personal information are kept confidential. Measures to
address and/or enable the correction of human rights impacts related
to consumers and end-users are detailed in the Stakeholder Dialogue
table.
According to its data privacy statement, Verkkokauppa.com is
committed to protecting its customers’ privacy and offers them the
opportunity to influence the processing of their personal data. The
company’s Code of Conduct related to consumers and end-users is
guided by internationally recognized norms concerning consumers and/
or end-users and the UN Guiding Principles on Business and Human
Rights, and in the company’s interpretation, is in accordance with them.
The scope, responsibilities, and availability of the company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
In the reporting year, the company was unaware of any adverse
decisions regarding cases related to consumers and/or end-users at the
end of the value chain, where the UN Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental Principles and Rights
at Work, and the OECD Guidelines for Multinational Enterprises were
not followed. In the reporting year, the company appealed the decision
of the Data Protection Ombudsman regarding the interpretation of the
Data Protection Ombudsman, according to which the company would
have failed to specify the retention period for the online store´ s customer
data in compliance with EU
´
s General Data Protection Regulation. The
decision is not final, and the matter remains under review
Processes for engaging with consumers and end-users
The company interacts continuously and directly with consumers
and end-users in various ways and the views of consumers and end-
users are considered in the company’s strategy and the setting of
sustainability targets, as described in the Stakeholder Interests and
Views section.
The company’s Chief Experience Officer has the highest operational
responsibility to ensure that communication with customers occurs and
that the results are taken into account in the company’s practices.
Channels for consumers and end-users to raise concerns
If a consumer or end-user notices activities or issues that are not in line
with the company’s Code of Conduct or other guidelines, or suspects
financial misconduct, they can contact the company’s management
or, either anonymously or using their name, through the company’s
reporting channel. The procedures and processes related to the
whistleblowing procedure and reporting channel are described in the
company’s whistleblowing guidelines and policy, as well as in section G1
Mechanisms for identifying, reporting, and investigating concerns.
In addition to the reporting channel, customers have numerous low-
threshold ways to contact the company and express their views. The
company believes that, if necessary, a customer or end-user can be
guided to use the official channel after initially contacting customer
service, social media, or a company employee, for example. The
company plans to enhance the awareness of customers and end-users
about the structures and processes through which concerns or needs
can be raised. The company has whistleblower protection principles in
place, which are expressed in the company’s Whistleblowing policy.
61Report of the Board of Directors
2024
Taking action on material impacts on consumers
and end- users, and approaches in pursuing material
opportunities related to consumers and end- users,
and the effectiveness of those actions
Actions Time horizon Scope Expected outcome
Ensuring equal
access to the
company’s
products and
services for all
consumer groups
2024–2028
Own operations
and downstream
value chain in
Finland
90 % of households in
mainland Finland will be
reached with next-day
deliveries by the end of
2028.
The company enables equal access to its products and services
for all consumer groups, which is expected to positively contribute
to social inclusion among consumers and increase the company’s
sales. The company’s products and services are equally available to
all consumer groups in brick-and-mortar stores and online, including
essential products such as mobile phones, customer service, and
circular economy services. The company has developed and continues
to improve delivery speed and the availability of fast deliveries, as well
as the accessibility of the online store, making products and services
accessible to everyone.
The company dedicates a significant portion of its strategic
development resources and commercial and operational development
efforts to achieving this target. Developing and continuously improving
fast and easy multichannel transactions are strategic priorities that
extend to all company operations. As a result, an increasing share
of customer interactions and purchasing processes occurs through
fast delivery and transaction methods, enabling an efficient service
experience for all customer groups.
Resourcing related to consumers and end-users
Work to leverage significant opportunities related to consumers and
end-users is carried out particularly as part of sales and marketing
efforts, logistics planning and system development, with time, operating
expenses, and capital expenditures allocated to these functions.
Targets related to advancing material positive
impacts and managing opportunities
Target
90 % of households in mainland Finland will be reached with next-day
deliveries by the end of 2028.
The target is to promote positive impacts on consumers and/or end-
users and manage opportunities. In defining the target, insights directly
collected from customers were utilized, and the key interests and views
of customers and end-users were considered, as described in the
Stakeholder Dialogue table. The target is strategic and the progress
is not measured against a specific base year. The consideration of
stakeholder perspectives in setting strategic targets is described in the
Stakeholder Interests and Views section. Engagement with customers
in general is described in more detail in the Processes for engaging
with consumers and end-users about impact section. The reporting
schedule related to the sustainability program’s targets is described in
the Impacts of strategy on sustainability issues section.
Progress in target
Delivery processes were advanced using internal experts and external
partners to ensure postal code area coverage and customer experience,
for example. In the reporting year, very fast delivery options were
launched: one-hour delivery and selected hour delivery. The one-hour
delivery service was expanded to Pirkkala, Oulu, and Raisio, increasing
the service coverage to one million people. Additionally, “selected
hour deliveries” were launched in the Helsinki metropolitan area. Fast
deliveries were also enabled for medium-sized goods in all stores. The
company evaluates the effectiveness of actions towards the target by
monitoring the share of fast deliveries. The delivery target progressed
according to the targets set for the 2024 reporting year. In 2024, the
share of fast deliveries of all orders made through the online store was
16%, and the share of next-day deliveries of all orders was 65%.
Additionally, consumer access to products and services was
improved by enhancing the accessibility of the company’s online store
and support sites based on an accessibility assessment conducted with
a third party.
62Report of the Board of Directors
2024
GOVERNANCE
G1 –Business conduct
Material impacts, risks and opportunities
related to business conduct
G1 –Business conduct
Impacts Risks and opportunities Management
G1.5 Management of relationships with suppliers including payment
practices
+
None
identified
+
Fair business conduct,
ethical practices and
proven rigorous risk
management practices
throughout the supply
chain can improve
reputation with suppliers
and partners improving
the chances for long
relationships and good
commercial co-operation
- The company’s policies,
such as the Code of
Conduct, Risk management
policy, Whistleblowing
policy, Anti-corruption and
anti-bribery policy, Related
party policy, and related
practices and their training
Corporate culture and business conduct
policies and corporate culture
The company’s Code of Conduct and values define its way of operating
and apply to its entire own workforce and management. The Code of
Conduct has been approved by the company’s Board, and it covers
the company’s principles and practices regarding customer-oriented
operations, communication, marketing, information disclosure,
personnel and corporate culture, cooperation with partners, the
prevention of corruption and bribery, human rights and labor rights,
information security and privacy, the environment, compliance with
laws, and the reporting channel. The Code of Conduct is complemented
and specified by the company’s policies, whose key content, scope,
responsibilities, and availability are presented in the Policies adopted to
manage material sustainability matters section. The company complies
with applicable sanctions legislation and has established internal
special guidelines to ensure proper wholesale and traveler sales. The
company’s Anti-corruption and anti-bribery policy covers the key
requirements of the UN Convention and, in the company’s view, is in
accordance with the convention.
In line with the values defined with the personnel, the company fosters
a bold, agile and transparent organizational culture and invests in a
communal atmosphere. The goal of the company’s HR team is to enable
the creation of a good employee experience and corporate culture that
is visible even to the customer.
One of the themes of the company’s sustainability program is to
strengthen a responsible and inclusive work culture and community,
through continuous learning, diversity, quality leadership, and ensuring
physical and mental well-being. Targets and metrics have been defined
for the themes of the sustainability program, and their implementation is
monitored. The theme includes targets related to organizational culture,
which are measured by the metrics of regularly conducted employee
surveys. These targets and metrics are presented in section S1 Targets
related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities.
Mechanisms for identifying, reporting, and investigating concerns
The company has a reporting channel that allows employees, customers,
and other stakeholders to report concerns that may violate the company’s
Code of Conduct or other guidelines. The channel is established by the
company itself. The company’s CFO is responsible for the operation of
the channel. For example, reports can concern suspicions of corruption
or bribery cases or violations of financial market or anti-money laundering
laws. The company’s Whistleblowing policy describes how concerns can
be reported and how the process proceeds after a concern is reported. All
reported concerns are taken seriously and handled promptly. A reported
case may be rejected if the alleged misconduct does not fall within the
scope of the guidelines, the report is malicious or not made in good faith,
further investigation is impossible due to insufficient information, or
the matter has already been resolved. If the reported case is accepted,
appropriate measures are taken to initiate the investigation process.
Stakeholders can make reports to the reporting channel anonymously.
The channel and contact information are described in the company’s
Code of Conduct and the supplier Code of Conduct. The channel is
available in both Finnish and English. Individuals involved in handling
reports have separate instructions to ensure that those related to the
report do not participate in its handling.
The principles of whistleblower protection are expressed in
the company’s Whistleblowing Policy. The company protects
whistleblowers by ensuring that retaliation against employees who
report potential violations in good faith is strictly prohibited. All
employees and managers are responsible for adhering to this practice.
Information about reports is overseen confidentially. The company’s
mandatory Code of Conduct training also covers the whistleblowing
channel to ensure that employees are aware of it.
The company encourages stakeholders to report concerns and
plans to further develop the reporting channel and its accessibility. The
Whistleblowing team monitors reported concerns and the effectiveness
of the channel.
Management of relationships with suppliers
The company’s supplier collaboration practices are described in
section S2 Workers in the value chain. Environmental criteria were not
direct criteria for supplier selection in the reporting year. The company
recognizes the importance of environmental criteria and plans to
develop processes to better consider them in the medium term.
Principles to prevent payment delays, especially for smes
The company treats all its suppliers equally and does not categorize
them in distinct groups. The accounts payable unit of the finance
department’s accounting team actively monitors open invoices and
promotes the payment of invoices from the oldest due date to prevent
payment delays. All invoices received in accounting are paid according
to the payment days defined by the company.
63Report of the Board of Directors
2024
Prevention and detection of corruption and bribery
The company’s operating principles for the prevention of corruption and
bribery are stated in the company’s Code of Conduct and specified in
the company’s Anti-corruption and anti-bribery policy, which has been
approved by the company’s Board. The company does not tolerate any
form of bribery, corruption, or other unethical influence in its business.
The policy is designed to help identify and prevent situations where
there is a risk of unethical influence. The policy provides guidelines on
how the company’s employees and management are allowed to accept
or give gifts, hospitality, product loans, or discounts, participate in trips
or sales competitions, and defines the company’s approval process
for them. Additionally, the policy outlines practices to avoid conflicts of
interest, interactions with the authorities, sponsorship, and charitable
donations.
The company aims to develop the ability to identify potential cases
of corruption or bribery through training and risk management. The
company’s principles for combating corruption and bribery are covered
in the annual mandatory online training on the Code of Conduct, which
targets the entire workforce, including the company’s Management
Team and CEO. Training was not provided to board members by the
company. The training covers all sections of the Code of Conduct,
including topics related to the Anti-corruption and anti-bribery policy, as
well as the whistleblowing procedure in situations where an employee
suspects misconduct. The company has identified procurement and
corporate sales as the functions most susceptible to corruption and
bribery. The training program covers 100% of the functions assessed
as susceptible to corruption. The sustainability and legal units are
responsible for keeping the training content up to date. The goal of the
training is for the entire workforce to understand and recognize the
risks of corruption and bribery related to their work and to commit to the
company’s Code of Conduct. Additionally, corruption-related risks are
assessed annually by each department as part of risk management.
The company’s legal unit regularly reports potential violations of
principles to the Audit Committee and the Board of Directors, as well
as to the Audit Committee regarding corrective actions and ongoing
investigations.
In accordance with the principles of The company’s reporting
channel, the whistleblowing team is responsible for all processes related
to handling and investigating reports. The team’s operations are based
on guidelines that ensure investigators operate independently and
are separate from the related chain of command. The whistleblowing
team regularly reports on received reports and ongoing investigation
processes to the Board’s Audit Committee.
The scope, responsibilities, and availability of The company’s policies
are presented in the Policies adopted to manage material sustainability
matters section.
Confirmed incidents of corruption or bribery
In 2024, the company was unaware of any cases, legal actions or
investigations related to corruption involving the company. In 2024,
there were no lawsuits or judgments related to violations of competition
law regulations, cartels, or abuse of a dominant market position.
Payment practices
The average time it takes the company to pay an invoice from the
date the contractual or statutory payment term begins is 55 days. The
average is calculated based on the number of days from the document
date of all invoices for the year to the actual payment date. The standard
payment term in the company’s general purchasing terms is 60 days
net, but this is assessed on a case-by-case basis for example, for
smaller suppliers. The company has no ongoing legal proceedings
related to payment delays.
64Report of the Board of Directors
2024
1 CONSOLIDATED STATEMENT OF INCOME 2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR thousand 2024 2023
Result for the financial year -803 2,070
Other comprehensive income items
Conversion differences 62 27
Comprehensive income for the financial year -741 2,097
Comprehensive income for the financial year attributable to
Equity holders of the company -741 2,097
EUR thousand Note 2024 2023
Revenue
7.2
Other operating income
7.3
Materials and services
7.4
-392,057
-422,001
Employee benefit expenses
7.5
-35,918
-36,690
Depreciation
7.7
-6,919
-6,365
Other operating expenses
7.8
-32,923
-33,500
Operating result 611 4,716
Finance income
7.9
Finance costs
7.9
-2,431
-2,273
Result before income taxes -1,426 2,774
Income taxes
7.10, 7.16
-704
Result for the financial year -803 2,070
Result for the financial year attributable to
Equity holders of the company -803
Earnings per share calculated from the profit attributable to equity holders
Earnings per share, basic (EUR)
7.11
-0.02
Earnings per share, diluted (EUR)
7.11
-0.02
The notes are an integral part of these financial statements.
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) 2024
65Consolidated Financial Statements
2024
3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR thousand Note 31 Dec 2024 31 Dec 2023
Non-current assets
Intangible assets
7.13
Goodwill
7.13
Tangible assets
7.14
Right-of-use assets
7.15
Deferred tax assets
7.16
Trade receivables
7.17
Other non-current receivables
7.17
Non-current assets, total 45,573 36,349
Current assets
Inventories
7.18
Trade receivables
7.17
Other receivables
7.17
Income tax receivables
7.17
Accrued income
7.17
Cash and cash equivalents
7.19
Current assets, total 132,529 142,932
Total assets 178,102 179,281
EUR thousand Note 31 Dec 2024 31 Dec 2023
Equity
Share capital
Treasury shares
-470
-786
Invested unrestricted equity fund
Translation differences
Retained earnings
-526
Result for the period
-803
Total equity
7.20
Non-current liabilities
Lease liabilities
7.15
Deferred tax liabilities
Financial institution loans, long-term
7.22.2
Provisions
7.24
Non-current liabilities, total 39,931 31,560
Current liabilities
Lease liabilities
7.15
Liabilities to credit institutions
7.22.2
Advance payments received
7.23
Trade payables
Other current liabilities
7.23
Accrued liabilities
7.23
Income tax liabilities
7.16
Current liabilities, total 110,266 119,242
Total liabilities 150,197 150,803
Total equity and liabilities 178,102 179,281
The notes are an integral part of these financial statements.
66Consolidated Financial Statements
2024
4 CONSOLIDATED CASH FLOW STATEMENT
EUR thousand Note 2024 2023
Cash flow from operating activities
Result before income taxes
-1,426
Depreciation and impairment
7.7
Finance income and costs
7.9
Other adjustments
-516
Cash flow before change in working capital
Change in working capital
Increase (-)/decrease (+) in non-current non-interest-bearing
trade receivables
-2,209
Increase (-)/decrease (+) in trade and other receivables
-7,116
Increase (-)/decrease (+) in inventories
Increase (+)/decrease (-) in current liabilities
-7,075
Cash flow before financial items and taxes
Interest paid
-1,861
-1,159
Interest received
Interest of lease liabilities
-745
-912
Income tax paid
-46
Cash flow from operating activities
Cash flow from investing activities
Acquisition of subsidiaries
Purchases of property, plant and equipment
-775
-335
Purchases of intangible assets
-992
-2,041
Cash flow from investing activities -1,766 -1,949
EUR thousand Note 2024 2023
Cash flow from financing activities
Lease liabilities payments
-5,149 -4,810
Proceeds from long-term loans
Payments of long-term loans
-17,500
Proceeds from short-term loans
Payments of short-term loans
-10,808
-2,836
Cash flow from financing activities -7,458 -7,646
Increase (+) / decrease (-) in cash and cash equivalents 3,678 10,702
Cash and cash equivalents at beginning of the financial year
Translation differences
Cash and cash equivalents at end of the financial year
7.19
The notes are an integral part of these financial statements.
67Consolidated Financial Statements
2024
A
Share capital
B
Treasury shares
C
Invested unrestricted equity fund
D
Fair value reserve
E
Retained earnings
F
Total equity
EUR thousand A B C D E F
Equity 1 Jan 2024 100 -786 27,599 0 1,565 28,479
Result for the financial year
Transaction differences
Comprehensive income for the financial year, total - - - - -741 -741
Transfers between items
Disposal of treasury shares -Board fees
Share-based incentives
Transactions with owners, total - 316 -704 0 555 167
Equity 31 Dec 2024 100 -470 26,896 0 1,379 27,905
Equity 1 Jan 2023 100 -1,410 27,472 0 308 26,470
Result for the period
Transaction differences
Comprehensive income for the period, total
Disposal of treasury shares -Board fees
-237
Share-based incentives
-602
-215
Transactions with owners, total - 624 127 0 -839 -88
Equity 31 Dec 2023 100 -786 27,599 0 1,565 28,479
5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
68Consolidated Financial Statements
2024
69Consolidated Financial Statements
2024
70Consolidated Financial Statements
2024
71Consolidated Financial Statements
2024
72Consolidated Financial Statements
2024
73Consolidated Financial Statements
2024
74Consolidated Financial Statements
2024
75Consolidated Financial Statements
2024
76Consolidated Financial Statements
2024
77Consolidated Financial Statements
2024
78Consolidated Financial Statements
2024
79Consolidated Financial Statements
2024
80Consolidated Financial Statements
2024
81Consolidated Financial Statements
2024
82Consolidated Financial Statements
2024
83Consolidated Financial Statements
2024
84Consolidated Financial Statements
2024
85Consolidated Financial Statements
2024
86Consolidated Financial Statements
2024
87Consolidated Financial Statements
2024
88Consolidated Financial Statements
2024
89Consolidated Financial Statements
2024
90Consolidated Financial Statements
2024
91Consolidated Financial Statements
2024
92Consolidated Financial Statements
2024
93Consolidated Financial Statements
2024
8 FINANCIAL STATEMENTS OF PARENT COMPANY (FAS) 2024
INCOME STATEMENT
EUR thousand Note 2024 2023
Revenue
8.2
466,485 500,830
Other operating income
8.3
636 458
Materials and services
Materials and services
Purchases during the year -376,957
-406,916
Stock change -11,490
-11,267
External services -2,600
-2,054
Materials and services total -391,047 -420,237
Employee benefit expenses
Salaries and fees
8.4, 8.5
-28,067
-28,296
Personnel incidentals
Pension expenses
8.4, 8.5
-5,022
-5,395
Other personnel side costs
8.4, 8.5
-681
-945
Employee benefit expenses total -33,770 -34,637
Depreciation and amortization
Planned depreciation
8.6
-2,392
-1,983
Depreciation and amortization total -2,392 -1,983
Other operating expenses
8.7
-40,548 -40,189
Operating result -635 4 242
EUR thousand Note 2024 2023
Financial income and expenses
Other interest and financing income
From companies of the same group
8.8
27 29
From others
8.8
394 331
Interest expenses and other financial expenses
For others
8.8
-1,675 -1,337
Financial income and expenses total -1,254 -978
Result before appropriations and taxes -1,889 3,264
Financial statement transfers
Change in depreciation differences
8.20
-183 -793
Financial statement transfers total -183 -793
Income taxes
Taxes for the financial year
8.9
- -537
Taxes of previous fiscal years
8.9
-3 -2
Result for the financial year -2,076 1,933
94Financial Statements (FAS)
2024
EQUIVALENT
EUR thousand Note 2024 2023
NON-CURRENT ASSETS
Intangible assets
Development costs
8.10
506
766
Immaterial rights
8.10
1
4
Other intangible assets
8.10
3,000
3,466
Prepaid expenses
8.10
782
343
Total intangible assets 4,289 4,579
Tangible assets
Land and water areas
8.11
2
2
Machines and hardware
8.11
4,328
4,764
Other tangible assets
8.11
317
314
Advance payments and unfinished purchases
8.11
817
720
Total tangible assets 5,464 5,800
Investments
Shares in companies of the same group
8.12
6,049
6,249
Other shares and participations 0
0
Total investments 6,049 6,249
NON-CURRENT ASSETS TOTAL 15,803 16,628
CURRENT ASSETS
Inventories
8.16
51,328 62,818
Long-term receivables
Accounts receivable
8.13
6,618
7,824
Receivables from companies of the same group
8.14
1,830
1,830
Other receivables
8.13
492
372
Total long-term receivables 8,940 10,025
Short-term receivables
Accounts receivable
8.13
30,475
36,978
Receivables from companies of the same group
8.14
725
1,072
Other receivables
8.15
4,413
4,872
Accruals
8.15
10,058
7,891
Total short-term receivables 45,671 50,814
Cash and cash equivalents
8.17
34,439 28,600
CURRENT ASSETS TOTAL 140,378 152,257
ASSETS TOTAL 156,181 168,886
RESPONSIBLE
EUR thousand Note 2024 2023
EQUITY
Share capital 100 100
Invested unrestricted equity fund
27,493
28,196
Retained earnings
6,131
3,495
Result for the financial year
-2,076
1,933
Total equity
8.18
31,648
33,724
Appropriations
Depreciation difference
8.20
1,376 1,193
Appropriations total 1,376 1,193
Provisions
Other provisions
8.24
302 1,008
Provisions total 302 1,008
Long-term liabilities
Long-term debt
Loans from financial institutions
8.23
17,000 18,750
Total long-term liabilities 17,000 18,750
Short-term debt
Loans from financial institutions 2,000 2,500
Received prepayments
5,110
4,692
Trade payables
68,591
78,831
Liabilities to companies of the same group
8.22
-
438
Other short-term liabilities
8.21
10,702
10,365
Accrued liabilities
8.21
19,451
17,34 8
Income tax liabilities
8.21
-
37
Total short-term liabilities 105,855 114,211
LIABILITIES TOTAL 122,855 132,961
EQUITY AND LIABILITIES TOTAL 156,181 168,886
BALANCE
95Financial Statements (FAS)
2024
EUR thousand 2024 2023
Cash flow from operating activities
Result before income taxes -2,072
2,471
Adjustments
Depreciations and amortizations 2,392
1,983
Finance income and expense 1,254
978
Other adjustments -522
1,385
Cash flow before change in working capital 1,052 6,817
Change in working capital
Increase (-)/decrease (+) in non-current n-i-b trade receivables 1,086
-2,209
Increase (-)/decrease (+) in trade and other receivables 5,143
-8,132
Increase (-) /decrease (+) in inventories 11,490
11,267
Increase (+) /decrease (-) in accounts payable and other current liabilities -6,245 7, 581
Cash flow before financial items and taxes 12,525 15,324
Interest paid -1,513
-1,041
Other finance expenses paid -337
-224
Interest received 421
360
Income tax paid -41
390
Cash flow from operating activities 11,056 14,809
STATEMENT OF FUNDS
EUR thousand 2024 2023
Cash flow from investing activities
Acquisition of subsidiary companies - 427
Investments in reverse for invested non-restricted equity capital -1,200 -350
Purchase of property, pland and equipment -775 -283
Purchases of intangible assets -992 -2,041
Cash flow from investing activities -2,966 -2,247
Cash flow from financing activities
Withdrawals of long-term loans
18,000
-
Repayments of long-term loans -17,500 -
Withdrawals of short-term loans 8,000 -
Repayments of short-term loans -10,750
-2,500
Cash flow from financing activities -2,250 -2,500
Increase (+) / decrease (-) in cash and cash equivalents 5,840 10,062
Cash and cash equivalents at beginning of financial year 28,600 20,667
Cash and cash equivalents at end of reporting period 34,439 30,729
96Financial Statements (FAS)
2024
8.1 Notes on the preparation of the financial
statements
Verkkokauppa.com Oyj is the parent company of the group, which is
headquartered in Helsinki, Finland.
Verkkokauppa.com Oyj’s financial statements have been prepared
in accordance with local requirements and those generally accepted in
Finland in accordance with accounting principles (Finnish Accounting
Standards, FAS). The financial statements are presented in euros.
When preparing the financial statements, the company’s
management is subject to valid regulations and good accounting
practices accordingly to make estimates and assumptions that affect
the valuation of financial statement items and for periodization. Realized
figures may differ from the estimates made.
Net sales
Net sales is calculated by deducting direct taxes and other sales related
adjustments from gross sales. Impaired receivables are accounted as
credit losses by applying good accounting principles. Credit losses are
reported in other operational expenses.
In the accounting period, the presentation of the income statement has
been changed with regard to barter revenue.
As far as barter revenue is concerned, the company acts as an agent
and records only the commission it receives in its revenue.
As a result, 106 thousand euros have been transferred from the
purchases group in the income statement to the revenue group in the
comparison period 2023.
The company sells various visibility in brick-and-mortar stores,
the web and other media to its suppliers. Some of the suppliers pay
marketing support based on jointly agreed marketing activities. The
company posts the above mentioned marketing sales to revenue and
the corresponding costs are posted in raw materials purchases.
The revenue include income from customer financing service.
Revenue recognition
Revenue is recognized at the time of product delivery.
Items in foreign currencies
Transactions in currencies other than EUR are translated using the
transaction date exchange rate.
At year-end, the outstanding foreign currency receivables and liabilities
are translated to EUR using the closing date average exchange rates.
Receivable exchange rate differences are entered in the income
statement as sales adjustments and when translating account payables,
foreign exchange rate differences are booked as adjustments to
purchases. Exchange rate differences deriving from other posts are
booked as financial exchange rate differences.
Other operating income
Other income continuously includes income from subletting space and
the sale of fixed assets.
Intangible and tangible assets
Intangible and tangible assets are measured at their historical cost, less
depreciation according to plan. Planned depreciation is recorded on a
straight-line basis over the useful life of an asset.
IT-applications produced for the company’s own use have been
capitalized in other intangible assets and include the direct personnel
costs of the development work. These related staff expenses have been
reclassified from the profit and loss statement into other intangible
assets. The book value of the fixed assets does not contain any
appreciations. Maintenance and repair expenses are booked as running
costs with the exception of substantial upgrades to rented premises,
which are activated in fixed assets.
The carrying value of land and water areas as well as the carrying
value of other tangible assets are based on historical costs.
No write-downs have been done on land and water areas.
The periods for planned depreciations are as follows:
Intangible rights 5 years
Research and Development 3–5 years
Machinery and Equipment 3–10 years
Upgrades to premises 5–10 years
Accounts receivables
The expected credit losses are deducted from the value of the trade
receivables.
The expected credit losses are recognised based on the ageing and
the origin of the trade receivable.
All over 90 days past-due trade receivables are recognised entirely as
credit lossess.
Other receivables
During the accounting period, the way the balance sheet is presented
has been changed with regard to payment card receivables. From
the beginning of the 2024 financial year, payment card receivables
are presented in the balance sheet group other receivables. In the
2023 financial statements, the payment card receivables were 2,129
thousand euros and they are presented in the balance sheet group other
receivables in this financial statement. Until the reference year 2023,
payment card receivables are presented in the balance sheet group cash
and bank receivables.
Income taxes
The income taxes include taxes based on the Verkkokauppa.com Oyj’s
taxable result.
Deferred taxes
Deferred taxes are not booked in the financial statements.
Provisions
The company recognises a provision for product warranty obligations.
NOTES TO THE FINANCIAL STATEMENTS 31.12.2024
97Financial Statements (FAS)
2024
The provision is estimated based on realised warranty costs and on
assumptions on failure rates of sold products.
Inventory valuation
Inventories are stated in the balance sheet at their acquisition cost or at
the lower acquisition price or probable selling price.
8.2 Revenue
Revenue by external customer location
EUR thousand 2024 2023
Finland 439,987 467,5 41
EU 25,286
28,125
Rest of the world
1,212
5,163
Revenue by external customer location
466,485 500,830
8.3 Other operating income
EUR thousand 2024 2023
Lease income from subleasing right-of-use
assets
132
266
Other income
504
191
Other operating income, total
636 458
8.4 Employee benefits
EUR thousand 2024 2023
Salaries and fees
28,846
29,179
Pension costs - contribution-based arrangements 5,165
5,400
Other personnel-related expenses
701
1,126
Total personnel costs before activation 34,712 35,705
Capitalized employee benefits for
the financial year
Wages and salaries -779
-883
Pension expenses -defined contribution plans
-143
-156
Other personal expenses
-20
-30
Capitalized employee benefits for
the financial year
-942
-1,068
Total personnel costs 33,770 34,637
The capitalized personnel costs are mainly related to the development of
the company’s enterprise resource planning system, which is explained
more in note Intangible assets 8.10, and the logistics automation of the
Jätkäsaari warehouse.
2024 2023
Average number of personnel
in the financial year
631
656
The number of personnel includes both full-time and part-time
employees. The amount does not include hired labor.
Information on the management’s employment benefits is presented
in the notes Management remuneration 8.5.
8.5 Management remuneration
EUR Thousand CEO
Manage-
ment team
2024,
total CEO
Manage-
ment team
2023,
total
Short-term
employee
benefits
Fixed basic
salaries and
fringe benefits
434 1,448 1,882
394
1,342
1,736
Incentive bonus 55 90 146
124
174
298
Statutory
pension
86 239 325
74
251
325
Share-based
payments
Share-based
payments
30 27 56
6
19
25
Total 605 1,804 2,409 597 1,787 2,384
Shareholding,
pcs
119,000
44,352
163,352
119,000
103,552
222,552
% of shares
0.26%
0.10%
0.36%
0.26%
0.23%
0.49%
The table above shows the remuneration of the president and CEO and
the Executive Committee, as well as the shareholdings and holdings
as a percentage of the total share capital. The amounts presented are
performance-based. The share-based payments are based on an
estimate of their realization at the end of the year. The performance
share-based payment includes the cost effect on the financial year,
regardless of the time of the share transfer.
Board fees
EUR thousand 2024 2023
Board members 31 Dec 2024
Arja Talma
, Chair of the Board,
Chair of the Remuneration Committee
88 89
Samuli Seppälä
35 35
Robin Bade
39 30
Kati Riikonen
41 32
Henrik Pankakoski
39 32
Enel Sintonen
, Member of the Audit Committee
38
-
Irmeli Rytkönen
32 -
Former Board members
Johan Ryding
(until 4 April 2024)
9 39
Kai Seikku
(until 4 April 2024)
9 51
Mikko Kärkkäinen
(until 30 Mar 2023)
-
9
Frida Ridderstolpe
(until 30 Mar 2023)
- 9
Christoffer Häggblom (until 30 Mar 2023)
- 14
Remuneration of Board of Directors, total 330 341
During the financial year 2024, the company transferred 59,374 (50,218)
treasury shares for the payment of the fees.
98Financial Statements (FAS)
2024
Board members’ shareholdings on 31.12.
Shareholding, pcs 2024 2023
Board members 31 Dec 2024
Arja Talma
, Chair of the Board,
Chair of the Remuneration Committee
54,817 37,8 53
Samuli Seppälä
13,347,000
15,527,000
Robin Bade
13,829
5,347
Kati Riikonen
13,829
5,347
Henrik Pankakoski
13,829
5,347
Enel Sintonen
, Member of the Audit Committee
6,659
-
Irmeli Rytkönen
6,659
-
Former Board members
Johan Ryding
(until 4 April 2024)
-
12,849
Kai Seikku (until 4 April 2024)
- 157,8 45
Number of shares, total 13,456,622 15,751,588
% of shares 2024 2023
Board members 31 Dec 2024
Arja Talma
, Chair of the Board,
Chair of the Remuneration Committee
0.12%
0.08%
Samuli Seppälä
29.43%
34.23%
Robin Bade
0.03%
0.01%
Kati Riikonen
0.03%
0.01%
Henrik Pankakoski
0.03%
0.01%
Enel Sintonen
, Member of the Audit Committee
0.01%
-
Irmeli Rytkönen
0.01%
-
Former Board members
Johan Ryding
(until 4 April 2024)
-
0.03%
Kai Seikku (until 4 April 2024)
-
0.35%
% of shares, total 29.66% 34.72%
The tables above show board member’s shareholdings and % of shares.
8.6 Depreciation and amortization
EUR thousand 2024 2023
Intangible assets
Development costs 456 413
Other intangible assets 825 349
Amortization of intangible assets, total 1,281 762
Tangible assets
Machinery and equipment 999 1,098
Other tangible assets 112 123
Depreciation of tangible assets, total 1,111 1,221
Depreciation and amortization, total 2,392 1,983
8.7 Other operating expenses
EUR thousand 2024 2023
Premises maintenance and operation expenses 12,383 12,264
Financial transactions expenses 1,553 1,637
Marketing 6,900 7,130
Administrative services 10,250 10,821
Other expenses 9,462 8,337
Other operating expenses, total 40,548 40,189
Auditor fees
EUR thousand 2024 2023
Statutory audit 170 204
Assignments referred to in § 1.1,2 of the Audit Act 10 -
Other services 13 29
Auditor fees, total 193 233
The auditing firm chosen by the general meeting is Pricewaterhouse-
Coopers Oy. The non-auditing services performed by Pricewaterhouse-
Coopers Oy totaled 27 thousand euros.
8.8 Finance income and costs
Finance income
EUR thousand 2024 2023
Interest income 394 331
Interest income from companies of
the same group
27
29
Total
421 360
Finance costs
EUR thousand 2024 2023
Other interest costs 174 9
Other finance costs 311 161
Exchange rate differences on cash and cash
equivalents
26
63
Monetary institution Loans interest expenses
1,165
1,104
Total
1,675 1,337
In addition to financial income and costs, exchange rate differences
have been recognized as adjustments to purchases for the financial
year.
8.9 Income taxes
EUR thousand 2024 2023
Current taxes - 537
Taxes for previous accounting periods 3 2
Income taxes, total 3 539
99Financial Statements (FAS)
2024
8.10 Intangible assets
EUR thousand
Development
costs
Other intangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2024 4,165 5,252 343 9,759
Increases 195 147 649 992
Transfers between items 209 -209 -
Cost 31 Dec 2024 4,360 5,608 782 10,751
Accumulated amortization and impairment 1 Jan 2024
-3,398 -1,782 - -5,181
Amortization for the financial year -456 -825 - -1,281
Accumulated amortization and impairment 31 Dec 2024 -3,855 -2,607 - -6,462
Carrying amount 1 Jan 2024 766 3,470 343 4,579
Carrying amount 31 Dec 2024 506 3,000 782 4,289
EUR thousand
Development
costs
Other intangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2023
3,383
1,806
2,530
7,719
Increases
782
- 1,259 2,041
Transfers between items
-
3,446 -3,446 -
Cost 31 Dec 2023
4,165
5,252
343
9,759
Accumulated amortization and impairment 1 Jan 2023
-2,986
-1,433 - -4,419
Amortization for the financial year
-413
-349 - -762
Accumulated amortization and impairment 31 Dec 2023
-3,398
-1,782 - -5,181
Carrying amount 1 Jan 2023 397 373 2,530 3,300
Carrying amount 31 Dec 2023 766 3,470 343 4,579
8.11 Property, plant and equipment
EUR thousand Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2024
2 13,421 3,054 720 17,196
Increases
- 562 38 175 775
Transfers between items
- - 78 -78 -
Cost 31 Dec 2024
2 13,982 3,169 817 17,971
Accumulated depreciation 1 Jan 2024
- -8,656 -2,740 - -11,396
Depreciation for the financial year
- -999 -112 - -1,111
Accumulated depreciation 31 Dec 2024
- -9,655 -2,852 - -12,507
Carrying amount 1 Jan 2024 2 4,764 314 720 5,800
Carrying amount 31 Dec 2024 2 4,328 317 817 5,464
EUR thousand Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress
Total
Cost 1 Jan 2023
2 13,050 3,050 812 16,913
Increases
- 279 4 52 335
Disposals
- - - -52 -52
Transfers between items
- 92 - -92 -
Cost 31 Dec 2023
2 13,421 3,054 720 17,196
Accumulated depreciation 1 Jan 2023
- -7,5 58 -2,617 - -10,176
Depreciation for the financial year
- -1,098 -123 - -1,221
Accumulated depreciation 31 Dec 2023
- -8,656 -2,740 - -11,396
Carrying amount 1 Jan 2023 2 5,491 433 812 6,738
Carrying amount 31 Dec 2023 2 4,764 314 720 5,800
100Financial Statements (FAS)
2024
8.12 Investments
EUR thousand 31.12.2024 31.12.2023
Holdings in group companies
Aqcuisition costs 1.1. 6,249
6,138
Increases 800
650
Decreases -1,000
-539
Carrying amount 31 Dec 6,049 6,249
Ownership of shares% Country
Arc Distribution Oy Finland 100%
100%
e-ville.com Distribution Oy Finland 100%
100%
Digi Electronics Ltd Hong Kong 100%
100%
Digital Trading (shenzhen) Co. Ltd China 100%
100%
8.13 Trade receivables and other receivables
EUR thousand 2024 2023
Non-current
Trade receivables 6,618 7,824
Other non-current receivables 492
372
Non-current receivables, total 7,110 8,195
Current
Trade receivables 30,475
36,978
Other accrued income 10,058 7,89 1
Other receivables 4,413
4,872
Current receivables, total 44,946 49,742
Non-current and current receivables, total 52,056 57,937
8.14 Receivables from companies of the same group
EUR thousand 2024 2023
Group loan receivables, long-term 1,830 1,830
Group accounts receivable 639 1,017
Group accruals 7
5
Group interest receivables 78 51
Receivables from companies of the same
group total
2,555 2,902
8.15 Other short-term receivables and accruals
EUR thousand 2024 2023
Prepayments 3 152 2 743
Support for purchases 7 676 5 924
Other transfer receivables 2 383 1 967
Other short-term receivables and accruals 13 211 10 634
8.16 Inventory
EUR thousand 2024 2023
Goods 51,328 62,818
Total 51,328 62,818
8.17 Cash and cash equivalents
EUR thousand 2024 2023
Cash in hand and at banks 34,439 28,600
Total 34,439 28,600
8.18 Equity
EUR thousand 2024 2023
Equity 1.1. 100 100
Equity 31.12. 100 100
Invested unrestricted equity fund at the
beginning of the period
28,196 28,069
Invested unrestricted equity fund additions - 127
Transfer to retained earnings -704 -
Invested unrestricted equity fund at
the end of the period 31.12.
27,493 28,196
Profit/Loss of the accounting period 1.1. 5,428 3,495
Transfer to retained earnings 704 -
The result of the financial year -2,076 1,933
Profit/Loss of the accounting period 31.12.
4,056 5,428
Equity total 31,648 33,724
Restricted equity at the end of the period 100 100
Unrestricted equity at the end of the period 31,548 33,624
Unrestricted and restricted equity total 31,648 33,724
8.19 Calculation of distributable funds
EUR thousand 2024 2023
Invested unrestricted equity fund 27,493 28,196
Result from Previous years 6,131 3,495
- Capitalization of development costs -1,155 -2,025
Result of the accounting period -2,076 1,933
Distributable funds total 30,393 31,599
8.20 Financial statement transfers
EUR thousand 2024 2023
Financial statement transfers1 Jan 1,193
400
Increases in financial statement transfers 183 793
Financial statement transfers 31 Dec 1,376 1,193
101Financial Statements (FAS)
2024
8.21 Other current liabilities and accrued liabilities
EUR thousand 2024 2023
Accrued personnel expenses 6,749
6,694
Other accrued liabilities 12,775
10,722
Withholding tax liability 708
708
VAT liability
9,922
9,588
Other current liabilities and accrued liabilities
30,153 27,713
8.22 Liabilities to companies of the same group
EUR thousand 2024 2023
Group accounts payable -
38
Group accrued liabilities -
400
Liabilities from companies of the same group - 438
8.23 Long-term debt capital
EUR thousand 2024 2023
Loans financial loans 17,000
18,750
Long-term debt capital 17,000 18,750
8.24 Provisions
EUR thousand 2024 2023
Provisions 1 Jan 1,008
745
Increases in provisions -
263
Decreases in provisions -705
-
Provisions 31 Dec 302 1,008
8.25 Guarantees and commitments
EUR thousand 2024 2023
Collateral given for own commitments
Mortgages 27,001 27,001
Guarantees 1,345 2,027
Other commitments and contingent liabilities
Credit limit in use 1,630 2,020
Leasing liabilities 25 22
Rent liabilities 39,340 18,101
Guarantees and commitments 69,342 49,171
The total amount of the granted credit limit is EUR 31 million, of which
the amount shown above has been used in the financial period.
102Financial Statements (FAS)
2024
SIGNATURES FOR THE FINANCIAL STATEMENTS AND THE BOARD OF DIRECTORS’ REPORT
Arja Talma
Chair of the Board
Robin Bade
Board member
Henrik Pankakoski
Board member
Irmeli Rytkönen
Board member
Panu Porkka
CEO
Samuli Seppälä
Board member
Enel Sintonen
Board member
Kati Riikonen
Board member
The financial statement prepared in compliance with the applicable
financial statement regulations gives a correct and sufficient image
of both the company and the whole of the companies included in its
consolidated financial statement assets, liabilities, financial position and
profit or loss.
The report of the board of directors contains an account that gives
a true picture of the company on the one hand and on the other the
business development of the entire group of companies included in its
consolidated financial statements and the result, as well as a description
of the most significant risks and uncertainties and more of the state of
the company.
The sustainability report included in the report of the board of
directors has been prepared in compliance with the provisions in
chapter 7 reporting standards and Article 8 of the taxonomy regulation.
Helsinki 11th March 2025
103Signatures for the financial statements and the Board of Directors’ report
2024
AUDITOR’S REPORT
To the Annual General Meeting of Verkkokauppa.com Oyj
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
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 to the Audit
Committee.
What we have audited
We have audited the financial statements of Verkkokauppa.com Oyj
(business identity code 1456344-5) 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, which include material
accounting policy information and other explanatory information
• the parent company’s balance sheet, income statement, cash
flow statement and notes.
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 believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
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.
To the best of our knowledge and belief, the non-audit services that
we have provided to the parent company and group companies are in
accordance with the applicable law and regulations in Finland and we
have not provided non-audit services that are prohibited under Article
5(1) of Regulation (EU) No 537/2014. The non-audit services that we have
provided are disclosed in note 7.8 to the Financial Statements.
Our Audit Approach
Overview
• Overall group materiality: € 4 670 000,
which represents 1 % of group´s revenue
• Audit scope: The audit scope includes
Verkkokauppa.com Oyj
• Valuation of inventories
As part of designing our audit, we determined materiality and assessed
the risks of material misstatement in the financial statements. In
particular, we considered where management made subjective
judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that
are inherently uncertain.
Materiality
Audit Scope
Key Audit
Matters
(Translation of the Finnish Original)
104Auditor’s Report
2024
Materiality
The scope of our audit was influenced by our application of materiality.
An audit is designed to obtain reasonable assurance whether
the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They 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.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as set out in the
table below. These, together with qualitative considerations, helped us
to determine the scope of our audit and the nature, timing and extent of
our audit procedures and to evaluate the effect of misstatements on the
financial statements as a whole.
Overall group materiality
€ 4 670 000 (previous year € 5 020 000)
How we determined it
1% of the group´s revenue
Rationale for
the materiality
benchmark applied
We chose revenue as the benchmark because,
in our view, it is the benchmark against which the
performance of the company is most commonly
measured by users. We chose 1 % which is within
the range of acceptable quantitative materiality
thresholds in auditing standards.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of
the group, the accounting processes and controls, and the industry in
which the group operates.
Our audit scope includes Verkkokauppa.com Oyj. Verkkokauppa.
com Oyj has four subsidiaries which are not material to consolidated
financial statements and we have performed analytical procedures on
their balances.
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.
As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters
consideration of whether there was evidence of bias that represented a
risk of material misstatement due to fraud.
Key audit matter in the audit How our audit addressed the key audit matter
Valuation of inventories
Refer to note 7.18 of the consolidated financial statements and to
note 8.1 and 8.16 of the parent company´ s financial statements
Inventories form a significant part of the Group’s assets, amounting
to € 51 million, and Parent company´ s assets, amounting to € 51 million,
as of 31 December 2024.
Inventories are measured at the lower of cost and net realizable
value. The cost of inventory is assigned by using the FIFO (first-in, first-
out) method. The cost contains direct costs of purchase less rebates.
The goods inventory turnover and possible reduction in the net
realizable value below cost is assessed regularly and a write-down of
inventories is recognized when necessary. In addition, the Company
recognizes a write-down of aged products, based on days in stock.
Inventories are a significant item in the consolidated financial
statements and parent company´ s financial statements. Management
exercises judgement and applies assumptions when estimating the
need for an obsolescence provision. Given these factors, we have
considered valuation of inventories to be a key audit matter.
Our audit procedures included test of controls related to timing of
revenue recognition and test of details procedures.
Our test of details included e.g. the following procedures:
• We assessed the adequacy of the obsolescence provision and
checked adherence to the Company’s accounting policy.
• We compared, on a sample basis, the value of inventory items against
purchase invoices and sales invoices to ensure that inventory items
are measured at the lower of cost and net realizable value.
For a sample of warehouses, we attended the physical stock-take
counting or reconciled third party confirmations with the accounting
records.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated
financial statements or the parent company financial statements.
105Auditor’s Report
2024
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 a 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 to 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 about 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 the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of these 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 to 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.
106Auditor’s Report
2024
OTHER REPORTING REQUIREMENTS
Appointment
We were first appointed as auditors by the annual general meeting on 15
March 2016. Our appointment represents a total period of uninterrupted
engagement of 9 years.
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.
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 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 the 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, we conclude that there is
a material misstatement of the other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki 11 March 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Mikko Nieminen
Authorised Public Accountant (KHT)
107Auditor’s Report
2024
INDEPENDENT AUDITOR’S REASONABLE ASSURANCE REPORT
ON VERKKOKAUPPA.COM OYJ’S ESEF FINANCIAL STATEMENTS
(Translation of the Finnish Original)
We have been engaged by the Management of Verkkokauppa.com Oyj
(business identity code 1456344-5) (hereinafter also “the Company”)
to perform a reasonable assurance engagement on the Company’s
consolidated IFRS financial statements for the financial year 1 January-31
December 2024 in European Single Electronic Format (“ESEF financial
statements”).
Management’s Responsibility for the ESEF Financial
Statements
The Management of Verkkokauppa.com Oyj is responsible for preparing
the ESEF financial statements so that they comply with the requirements
as specified in the Commission Delegated Regulation (EU) 2019/815 of
17 December 2018 (“ESEF requirements”). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation of ESEF financial statements that are free from
material noncompliance with the ESEF requirements, whether due to
fraud or error.
Our Independence and Quality Management
We have complied with the independence and other ethical
requirements of the International Code of Ethics for Professional
Accountants (including International Independence Standards)
issued by the International Ethics Standards Board for Accountants
(IESBA Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm applies International Standard on Quality Management 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.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial
statements based on the procedures we have performed and the
evidence we have obtained.
We conducted our reasonable assurance engagement in accordance
with the International Standard on Assurance Engagements (ISAE) 3000
(Revised) Assurance Engagements Other than Audits or Reviews
of Historical Financial Information. That standard requires that we
plan and perform this engagement to obtain reasonable assurance
about whether the ESEF financial statements are free from material
noncompliance with the ESEF requirements.
A reasonable assurance engagement in accordance with ISAE 3000
(Revised) involves performing procedures to obtain evidence about the
ESEF financial statements compliance with the ESEF requirements. The
procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material noncompliance of the ESEF financial
statements with the ESEF requirements, whether due to fraud or error. In
making those risk assessments, we considered internal control relevant
to the Company’s preparation of the ESEF financial statements.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
In our opinion, Verkkokauppa.com Oyj’s ESEF financial statements
for the financial year ended 31 December 2024 comply, in all material
respects, with the minimum requirements as set out in the ESEF
requirements.
Our reasonable assurance report has been prepared in accordance
with the terms of our engagement. We do not accept, or assume
responsibility to anyone else, except for Verkkokauppa.com Oyj for our
work, for this report, or for the opinion that we have formed.
Helsinki 11 March 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Mikko Nieminen
Authorised Public Accountant (KHT)
To the Management of Verkkokauppa.com Oyj
108Assurance Report on ESEF Financial Statements
2024
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT
(Translation of the Finnish Original)
We have performed a limited assurance engagement on the group
sustainability report of Verkkokauppa.com Oyj (business identity code
(1456344-5) 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 reporting
period 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 Verkkokauppa.com
Oyj has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability
report in accordance with Chapter 7, Section 22, of the Accounting Act,
because sustainability reporting companies have not had the possibility
to comply with that requirement in the absence of the ESEF regulation
or other European Union legislation.
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 Authorised Group 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.
Authorised 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.
Our 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.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director of Verkkokauppa.
com 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
• 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.
Inherent Limitations in the Preparation of a Sustainability
Report
In reporting forward-looking information in accordance with ESRS,
management of the Company is required to prepare the forward-looking
information on the basis of assumptions that have been disclosed in
the sustainability report about events that may occur in the future and
To the Annual General Meeting of Verkkokauppa.com Oyj
109Assurance Report on the Sustainability Report
2024
possible future actions by the Group. Actual outcomes are likely to be
different since anticipated events frequently do not occur as expected.
Responsibilities of the Authorised 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 example the following:
• We interviewed the company’s management and the individuals
responsible for collecting and reporting the information contained
in the group sustainability report at the group level to gain an
understanding of the sustainability reporting process and the
related internal controls and information systems.
• We familiarised ourselves with the background documentation and
records prepared by the company where applicable, and assessed
whether they support the information contained in the group
sustainability report.
• We assessed the company’s double materiality assessment
process in relation to the requirements of the ESRS standards, as
well as whether the information provided about the assessment
process complies with the ESRS standards.
• We assessed whether the sustainability information contained in
the group sustainability report complies with the ESRS standards.
• Regarding the EU taxonomy information, we gained an
understanding of the process by which the company has identified
the group’s taxonomy-eligible and taxonomy-aligned economic
activities, and we assessed the compliance of the information
provided with the regulations.
Helsinki 11 March 2025
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Mikko Nieminen
Authorised Sustainability Auditor
110Assurance Report on the Sustainability Report
2024
Verkkokauppa.com is an e-commerce pioneer that stands passionately on the customer’s side.
Verkkokauppa.com accelerates the transition of commerce to online with Finland’s fastest
deliveries and ultimate convenience. The company leads the way by offering one-hour deliveries
to more than 1.7 million customers, a winning assortment and probably always cheaper prices.
Everyday, the company strives to find more streamlined ways to surpass its customer’s
expectations and to create a new norm for buying and owning.
Verkkokauppa.com was founded in 1992 and has been online since day one.
The company’s revenue in 2024 was EUR 468 million and it employs around 600 people.
Verkkokauppa.com is listed on the Nasdaq Helsinki stock exchange.
linkedin.com/company/verkkokauppa.com twitter.com/verkkokauppacom facebook.com/verkkokauppacom/