Sustainability management

For a long time now, including in previous strategies, the main theme of our growth strategy has been “Sustainability is our trump card”. Indeed, Hansel will celebrate the 18^th anniversary of its sustainability work in 2024, as the work can be considered to have started in 2006 when environmental matters were first taken into account in joint procurement. We now take a broad view of sustainability, and it is an integral part of tendering, the work done during the contract period and reporting. Hansel’s Board of Directors receives a sustainability update at each of its meetings as part of the Managing Director’s review.

The core of the sustainability efforts is an eight-person sustainability team chaired by the Chief Financial Officer. The CFO is responsible for sustainability in the Executive Committee. The tasks of the sustainability team are to improve sustainability-related processes, monitor related legislation, offer training to the employees and share information about sustainability. In 2023, the sustainability team met every other week and held two afternoon development sessions.

The sustainability team works actively with stakeholders, both nationally and internationally. In the autumn of 2023, Hansel’s Chief Financial Officer Kirsi Koivusaari was elected to the Board of FIBS, the largest sustainability network in the Nordic countries.

Information about the sustainability requirements for joint procurement added to the system

The sustainability analysis process that was introduced in Hansel in 2019 was migrated from Excel to a system-based process in 2023. In the process, the tendering team systematically goes through all aspects of sustainability and considers what criteria Hansel can require to reduce the negative impact of environmental aspects and increase the positive impact, for example. Based on this analysis, two members of the team award sustainability labels for the joint procurement if the criteria are met.

“The tendering team systematically goes through all aspects of sustainability and considers what criteria Hansel can require.”

In 2023, the old sustainability analysis data was transferred to the system in a separate project, allowing better reporting to customers, who in turn report the data to their own organisations.

Joint procurement monitoring procedure during the contract period

The monitoring of sustainability requirements is an important part of contract monitoring. The preliminary report for joint procurement, which was reformed in 2023, includes a risk analysis, segmentation and a sustainability analysis, as well as a classification of the procurement’s preparedness, information security and data protection. During the contract period, the focus is on monitoring compliance with the contractual terms. The level of risk and the requirements for the procurement vary, which is why the chosen monitoring mechanism also changes depending on the procurement object. At its lightest, it means dialogue and possibly a self-assessment by the contractual supplier and a documentation review, while at its strongest, it may involve an independent third-party sustainability audit.

The monitoring during the contract period is mainly carried out by Hansel’s category managers as part of the supplier cooperation (follow-ups), but certain parts of the ongoing monitoring are carried out centrally by the financial unit, which also utilises external service providers’ automated services. The sustainability team supports the category management as necessary, especially when it is felt that a sustainability audit is required. The support from the financial unit is often related to clarifications of contractual suppliers’ finances or unclear reporting by a contractual supplier. Sanctions against Russia are monitored in Hansel once or twice per year.

Third-party audits of compliance with contractual requirements other than those related to sustainability are also conducted occasionally. For these, we use our own dynamic purchasing system for internal audits.

CSRD changes reporting from 2024 onwards

The Corporate Sustainability Reporting Directive (CSRD) will also change sustainability reporting in Hansel. The plan is to peruse the CSRD in 2024 and prepare the reports for 2024 in 2025 in accordance with the new European Sustainability Reporting Standards (ESRS) instead of the former GRI. Due to its size, Hansel will not be bound by the new legislation per se, but we still wish to be at the forefront when the change takes place in Finland. Many of Hansel’s contractual suppliers will be obliged to switch to ESRS reporting from 2024 onwards.

Sustainability labels by category

Category	Joint procurement 2023, EUR million	Ecolabel, EUR million	Social responsibility label, EUR million	Economic responsibility label, EUR million	Ecolabel, %	Social responsibility label, %	Economic responsibility label, %
Energy	206.7	167.4	6.4	206.7	81	3	100
Expert services	198.4	0.4	0.0	198.0	0	0	100
Software	187.5	2.2	0.0	187.5	1	0	100
IT hardware	146.7	138.8	136.1	146.6	95	93	100
Personnel and healthcare services	145.2	0.1	0.6	145.2	0	0	100
Furniture and office services	108.9	103.1	32.1	108.3	95	29	99
Food and restaurant services	107.6	107.6	101.1	107.6	100	94	100
Vehicle and logistics services	104.9	92.9	46.7	104.9	89	45	100
Financial services	102.3	78.1	0.0	102.3	76	0	100
Travel and meeting services	78.6	51.7	65.6	78.6	66	84	100
Cleaning services and supplies	65.8	65.8	17.3	65.8	100	26	100
Data communications	59.2	1.1	2.1	59.2	2	4	100
Data centre services and hardware	44.2	1.9	0.0	44.2	4	0	100
Security technology and related services	36.8	32.1	0.0	36.8	87	0	100
Total	1,592.7	843.3	407.9	1,591.7	53	26	100

Hansel’s sustainability reporting

The results of our sustainability efforts are presented in the Sustainability Report, which is published annually in Finnish, Swedish, and English, integrated into the Annual Report. With regard to sustainability, the Annual Report presents key information for 2023 and provides information about related interesting events and achievements. The Sustainability Report relating to events in 2022 was published on 17 April 2023. Reports are prepared in accordance with the principles set forth in the GRI Standards. The standards complied with are from 2021.

The report includes a table presenting the content of the report sorted by materiality themes, the GRI Standards used, as well as instructions on where the information can be found in the report. If a piece of information is not available, it is mentioned in the table alongside an explanation for the omission. Some pieces of information are included in the financial statements.

The report has been put together by Hansel’s communications department together with advertising agency SST. The entire sustainability team participates in the preparation of the report, and it is approved by the Executive Committee. The Sustainability Report is also submitted to the Board of Directors for information.

Photos: Mika Pakarinen, Lasse Lecklin, Akifoto, Tina Lindroos and Hansel communications. Photos in the Annual Report feature Hansel’s specialists and customers interviewed for the articles.

For further information, please contact:
Johanna Kaalikoski
Communications Manager
johanna.kaalikoski@hansel.fi
Tel. +358 29 444 4289

Hansel’s sustainability report is available at vuosikertomus2023.hansel.fi (in Swedish at arsberattelse2023.hansel.fi and in English at annualreport2023.hansel.fi). The Sustainability Report is being published exclusively online for the eleventh time. The report was verified by KPMG Oy Ab, Authorised Public Accountants.

Active international cooperation on sustainability

Nordic sustainability cooperation of contracting entities is back on track after a brief dip due to the COVID-19 pandemic.

Piloting carbon handprint calculation

The carbon handprint describes the reduction in the carbon footprint of a product or service that can be achieved by the user.

Emissions from joint procurement calculated

In 2023, around EUR 1.6 billion worth of goods and services were procured through Hansel’s joint procurement.

Contents of the Annual Report