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Finnairin matka kohti integroitua raportointiaKati Ihamäki, Vice President Sustainable Development
Mari Reponen, Director, IR and Financial Communications
Finnair today
20.5.2014 | © Finnair | ProComin Vuosikertomuspäivä2
• Focused on Asia-Europe traffic• More than 9 million passengers and 2.4
billion EUR in revenue in 2013• Modern, fuel efficient and streamlined fleet • Operationally one of the best airlines in
the world• Selected as Best Airline, Northern Europe
by World Airline Awards 2010, 2011, 2012, 2013
• Member of oneworld• Goal: Asian revenue to double between
2010 and 2020
Finnair’s strategy supports sustainability
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• “Ecosmart” - Choice of quality and environmentally conscious air travellers
• Via Helsinki concept means– the shortest route– a smooth and uncongested transit
and – cutting travel to comfortable sections
generating fewer emissions• Energy and material efficiency• Open communication and constant
dialogue
A business can only manage what it measures
• Six years in worldwide Carbon Disclosure Project (CDP)– Finnair is the leading airline – First airline to reach leadership index– 2013 result 96/100
• One of the first airlines to publish GRI (Global Reporting Initiative) corporate responsibility report – Environmental reporting for over 15 years – Sustainability reporting since 2008 - social, ecological and financial dimensions– Internationally recognised GRI reporting – Targets to improve the transparency of corporate activity
Towards Integrated reporting 20.5.2014 | © Finnair | ProComin Vuosikertomuspäivä4
Integrated reporting<IR>
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What is Integrated Reporting (<IR>)?
• It is creating, capturing and communicating value– Ties together the multiple dimensions of performance that create value– Shows how a company takes into account other value than financial value– Shows how a company minimizes and controls risks– Enhances the quality of information given to investors and other stakeholders
“<IR> is a process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related
communications regarding aspects of value creation. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value
in the short, medium and long term.”
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Source: www.theiirc.com
Source: www.theiirc.org7 20.5.2014 | © Finnair | ProComin Vuosikertomuspäivä
Guiding principles and Content elements
Fundamental conceptsHow the organization creates and sustains value
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Finnair’sapproach to IntegratedReporting
2005
Finnair’s reporting history
1990 2000 2010 2012
1996–2007: Separate environmental report
Annual Report since late 1950s
2008: Sustainability
report in line with GRI
2005–2012: SeparateFinancial Review
2005–2010: Separate Annual
Review
Annual Review and Sustainability Report combined
2005
2011
2013
20081996
2013: TowardsIntegratedReporting
2014
Annual Report divided to Business and Financial Reviews
CDP reportingsince 2007
2007
1996
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Finnair targets and priorities for the 2013 report• Better Finnair story discussing our
– Business model, value creation, targets and performance – External and internal growth drivers and opportunities and risks– Finnair’s role in the society– Combining GRI with other reporting
• Materiality– In the spirit of GRI4
• Internal targets– Smooth process– Cost and time efficient reporting– Relevant, future oriented information
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Shift in focus: more forward looking, more content on value creationTypical reporting mismatch* Case Finnair
• Due to our GRI reporting history, we wanted to include also GRI 3 data to the report – Integration of two reports instead of
developing one annual report
• More data on industry growth drivers (megatrends) and Finnair’svalue creation (internal processes)
• These combined with impacts to the society at large
• “Finnair in the world”
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*Source:IIRC
Key milestones
• June 2013: Decision to move toward Integrated Reporting• September 2013: Internal workshops
– The objective of the workshop was to understand: • What external factors in the external environment affect Finnair, and how.• How the organization tailors its business model and strategy to respond to the opportunities and risks
that arise from the external environment. What are Finnair’s strategic strengths and weaknesses in relation to these risks and opportunities?
• Identify and provide insight into the capitals Finnair uses and affects through its business models. – Some 30 participants from different businesses and support functions. One Executive Board member.
• October 2013: Materiality analysis – Conducted among 6 stakeholder groups and Finnair Executive Board– Questions classified to four categories: Environmental, Social, Economic, Product
• November 2013: final decision on report structure
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Project calendar
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Internal brainstormingCR+IR
Meetings with. Big4 sustainability-professionals,
among others
RFP to four agencies
Preparation of RFP, including Finnair’s proposal on the
strcuture of its first Integrated Report
Meeting agencies, partner selection
Workshops
Preparation and implementation of materiality analysis, and modifying
content plan according to workshop outcomes
Preparation of workshop report, commenting rounds, and modifying content plan
according to workshop outcomes
Text production / Customers, Operations,
Employees, Socity, Governance
Text production/ Strategy, Finance
Layout plan incl. New financial statements structure
Report published 5 March 2014
Executive Board’s
comments to infographs
Key phases- Learning about <IR>, identifying what it means for
Finnair?- Workshops- Materiality analysis13 20.5.2014 | © Finnair | ProComin Vuosikertomuspäivä
Open dialogue with stakeholders
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Employees
Authorities
NGOs
Media
Investors
Customers
Employees
The most material issues for stakeholdersand management
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Safety
Network growth and securing the connections
Future competitivenessFuel efficiency
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Finnair team and responsibilities
• Project lead:– Mari Reponen, Director, IR and Financial Communications. Strategy, Finance, Governance content. SLOT I– Elina Ämmälä, Manager Media Relations. Customers, Operations, Employees, Society, (Other.) SLOT II
• Content owners:– Elina Ämmälä, Kati Ihamäki, VP Sustainable Development. SLOT II– Mari Reponen, SLOT I
• Others involved :– Joseph Knowles, Communications Specialist. SLOT II– Outi Merilä, Inflight Supervisor, SLOT II – Kati Kaksonen, IRO. SLOT I – Elina Stråhlman, VP Group Accounting, SLOT I
• Pictures, visuals:– Manti Väätäinen-Pereira, Communications Specialist.
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Key take aways
• Integrated reporting requires integrated thinking• Management support is a key• Planning phase extremely important!
– There are no ready models how to do an integrated report– Integrated Report is more company specific than typical
annual reports material issues very from company to company even in the same industry
• Integrated Reporting forces a company to evaluate its business and communications from a new angle – It will improve the company’s story– It may also help to develop the business and give holistic
picture of operations in changing business environment
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Finnair 2013 report
Next steps
• Defining the gaps and benchmarking• Set the goals and team for 2014 report• Executive Board workshop/personnel workshops Aug-Sept preferably• Actual content planning based on these results• Develop existing material further
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Thank you• Kati Ihamäki
VP, Sustainable Developmenttel. +358 9 818 4101
Mari ReponenDirector, IR and Financial Communicationstel. +358 9 818 4054