In 2022, we conducted a thorough analysis of our company's operations in relation to the United Nations Sustainable Development Goals (UN SDGs). Based on this analysis, we identified which specific UN SDGs and their sub-targets our activities genuinely support. Below are the goals and sub-targets we support.
We believe in a balanced growth approach that minimizes environmental impact while enhancing positive contributions across our value chain. Our strategy integrates Environmental, Social, and Governance (ESG) principles into every aspect of our operations, striving to create sustainable solutions for our customers and partners. We are committed to aligning our actions with the UN Guiding Principles on the Environment.
We are committed to minimizing our environmental footprint by reducing carbon emissions, improving resource efficiency, and advancing waste management practices. Our efforts focus on achieving measurable results that align with global sustainability goals.
Lowering our carbon intensity
As a company operating across diverse industries, we recognize the importance of reducing carbon emissions to combat climate change. Our ambitious target is to join the Science Based Targets initiative (SBTi) by the end of 2024 and to significantly reduce greenhouse gas (GHG) emissions across our value chain. In August 2024, we completed our first Greenhouse Gas inventory, establishing a baseline for this work.
The largest environmental impact of our business stems from Scope 3 emissions across our value chain rather than from our direct operations. Addressing these emissions involves optimizing logistics flows, utilizing low-emission transport, and offering low-emission solutions and products to our customers. A core objective is to lower the carbon intensity of our operations and supply chain, particularly in transportation, most of which we outsource to external service providers. To achieve this, we’ve developed a comprehensive roadmap to measure and reduce CO2 emissions for both inbound and outbound transport and are following it diligently.
Although our Scope 1 and 2 emissions are significantly lower than our Scope 3 emissions, we also focus on minimizing them. In many of our facilities, we partially use green energy, our company car policy mandates low-emission vehicles, and our subsidiary, Optimol, has installed rooftop solar panels for office and warehouse energy needs. Swed Handling, another subsidiary involved in goods transportation, optimizes transport schedules to achieve environmentally friendly, high-occupancy deliveries.
Improving recycling and waste management
We are committed to improving recycling and minimizing waste. Although our operations generate relatively low volumes of waste, we continuously seek ways to minimize and repurpose product waste. All raw material waste is considered hazardous and is sent to authorized waste treatment facilities.
Our purchasing processes are designed to avoid overproduction. For products that do not meet their original specifications, we identify alternative applications to keep them out of the waste stream. In certain cases, material producers may extend the expiry dates based on testing. Our new subsidiary, Swed Handling, employs leakage testing and container inspections to prevent chemical leaks and ensure safe handling. In 2023, nine of our thirteen operational countries did not need to send any raw material waste for disposal.
For packaging, we use recycled materials wherever possible. In several countries, we utilize refurbished IBC containers and drums, and Swed Handling operates a return system for IBC containers and plastic cans. As a member of local packaging producer communities, we report packaging usage and pay recycling fees to support sustainability.
In our Finnish bulk terminal, we prevent potential leaks through multiple safeguards: all unloading, loading, and packaging activities occur over a containment basin, storage tanks are located within pools, drains are sealed, and absorbents are readily available for minor spills. Our operators conduct daily inspections, and overfill alarms are in place for tanks. Since we handle organic solvents, some VOC emissions occur, though they remain below environmental authority limits. Additionally, our packaging line has a gas scrubber to control odor emissions. Water use is limited to product dilution and tank cleaning, with wash water collected in a tank and sent to a waste treatment facility.
Our offices generate minimal nonhazardous waste, which is sorted and recycled according to local regulations. At Swed Handling, all paper, cardboard, plastic, and metal waste from warehouses and production is carefully sorted and recycled.
While reducing our footprint, we also aim to maximize our positive impact—or “handprint”—by driving sustainable innovations and providing environmentally friendly options across industries.
We believe that by collaborating with our suppliers and customers, we can create a positive impact. We have launched numerous projects within sales to promote sustainable solutions that help reduce CO2 footprints and enhance environmental benefits across the value chain. Examples include biodegradable and bio-based materials, products that reduce hazardous substances, lower process temperatures, and extend the lifecycle of machinery. You can read more about these initiatives in our blogs, news, and past sustainability reports.
In 2019, we became the first Finnish distributor to receive the International Sustainability and Carbon Certification (ISCC Plus), which we have renewed annually. This certification, awarded for bio-based plastics, allows us to supply customers with renewable-source plastic raw materials in accordance with mass balance principles.
Our commitment to sustainability, productivity, and operational quality is at the core of our efforts to develop innovative, sustainable alternatives to traditional solutions. Many current applications can already benefit from these improved materials.
We are well-positioned to support the transition to a more sustainable future by promoting products that help lower carbon emissions in our customers' operations. For instance, our growing range of bio-based and recycled plastics is critical in reducing plastic waste and the carbon intensity of manufacturing processes.
In 2024, we initiated a master’s thesis project focused on developing bio-based materials for filament applications, further underscoring our commitment to sustainable product innovation. This collaboration brings together our expertise with that of suppliers and customers to co-create solutions that benefit both the environment and business performance.
We also offer training on sustainable solutions. In 2024, our plastics segment organized a webinar, “Sustainability in Plastics: Transitioning from Challenges to Opportunities,” and Optimol hosted a seminar on sustainable production optimization from a lubrication perspective.
Through partnerships and innovation, we strive to drive meaningful change across our value chain, helping our customers meet their sustainability goals and fostering long-term, responsible growth.
We focus on creating a safe, engaging, and inclusive high-performance culture by encouraging our employees to act according to all our values – Success by People, Responsibility, Partnership, and Continuous Development. Our core value is Success by People, and we genuinely believe in our employees. We apply this value to all human resources activities.
As part of our values, we respect and support human rights, local laws, and guidelines in every country where we operate, we are not involved in or support any human rights violations. Our approach is to act in line with the UN Global Compact principles on Human Rights (principles 1 and 2) and Labour (principles 3–6). At Telko we have no tolerance for forced labour or child labour. We respect our employees’ right to engage in collective bargaining and are committed to eliminating discrimination within our company.
Safety
Taking responsibility for our people is a part of Telko’s values. It means we are aware of how our actions affect our employees and the people around us. We have made a firm commitment to ensure a physically and emotionally safe working environment for our employees, as well as people visiting our premises. We believe that safety is a right for everyone working at Telko and a culture of zero harm is our shared responsibility.
We are working actively to build up a stronger safety culture in our company. As part of this work, we include safety topics in our personnel and supervisor meetings and make regular safety walks at our own premises and in our subcontracted warehouses. We continuously encourage all employees to report incidents and safety observations to enhance the environment of sharing safety matters. All the reported cases are investigated and analysed to identify opportunities to develop a healthy and safe workplace. With corrective and preventive action plans we share our learnings and prevent deviations from recurring.
We have instructed our personnel to start every visitor meeting with emergency instruction and to remind them regularly about this rule. Up-to-date emergency instructions for each office are readily available on our intranet. The needed personal protective equipment and required safety training are defined separately for each employee according to their role.
Warehouse safety
Our warehouse personnel receive regular training in safe working practices, first aid, and emergency situations. We also conduct additional safety assessments and training sessions whenever new products or working methods are introduced. To ensure safety, new terminal workers undergo a several-month-long introductory period, during which they work alongside an experienced colleague before being permitted to work independently.
We regularly update the comprehensive risk assessment for our warehouse and terminal operations, covering human, environmental, and material risks. If a risk is identified as unacceptable or unmanageable with the current measures, we promptly enhance our mitigative actions.
Our chemical terminal in Finland is in a designated domino effect area, where several companies handle dangerous goods. We collaborate closely with these companies on safety matters, organizing joint annual emergency drills with local rescue services and sharing information on our operations and hazards with the local community.
To ensure safety in our subcontracted warehouses, we conduct regular safety inspections, known as safety walks, and require corrective actions for any risks or deficiencies identified.
Product safety
Product safety is a top priority for us, as we act as a vital link between industrial customers and international raw material manufacturers. We adhere to all relevant regulations, verify material compliance before placing products on the market, and ensure that all authority requirements are met to guarantee safety. If a product poses severe hazards, we communicate these risks carefully with stakeholders and, whenever possible, assist our customers in replacing the product with a safer alternative.
We provide safety data sheets (SDS) to our customers in accordance with regulations. All our EU safety data sheets comply with REACH and CLP regulations, with appropriate product labelling. In other geographic regions, we follow the local requirements for SDSs and product labelling. To ensure timely delivery of SDSs, we use an automated system that sends updated safety data sheets to customers following daily sales and document updates.
We have a team of trained and licensed ADR safety advisors who ensure that all goods are labelled, stored, and transported according to regulations, with the necessary hazard information included in the transport documents. These safety advisors also provide training to colleagues on these matters.
Where applicable, we instruct our customers on the correct and safe use of products and supply additional relevant documentation, such as information on SVHC, RoHS, and other specific substance group contents, to ensure the effective flow of information downstream.
Wellbeing
At Telko, wellbeing at work is regarded as a whole, including the work community, leadership, the company, and the individuals themselves. Thus, wellbeing consists of good leadership, a motivating work community, a balanced workload, meaningful work, and a safe working environment.
We are committed to providing secure and stable employment that fosters development and growth opportunities. We ensure that every employee receives a clear and well-defined employment contract. Our employment contracts clearly define working hours and annual holidays. We prioritize ensuring that every employee takes their allotted holidays, and we have designated and documented an emergency replacement for each position. At Telko, we compensate for atypical working hours by offering the option to accrue additional time off.
We support wellbeing and energy at work by promoting sports activities (e.g., sports vouchers) and recovery, providing occupational healthcare, and taking proactive measures to prevent potential issues. We are committed to ensuring a good work-life balance for our employees. Therefore, we offer the possibility for employees to work remotely. Our Hybrid Work guidelines apply to all company units.
Occupational health care is organized in accordance with local legislative requirements across our operating countries. In many countries, these standards exceed basic requirements, necessitating an occupational health examination at the start of employment and often including age and annual check-ups. These check-ups are conducted in 9 out of 17 countries. We internally check our workplaces regarding occupational exposure and ergonomics, and actions are taken to ensure that everyone has the right to work in a healthy and safe environment without the risk of injury or illness.
During spring of 2024 we announced collaboration with a mental health support service that offers individual support and coaching. Previously, the service was piloted with supervisors in the spring of 2022 and later with targeted teams in 2023. To promote the employees’ wellbeing, we additionally host quarterly webinars on topics such as resilience and recovery skills in everyday life. Our intranet also shares content related to mental well-being and provides easy access to the mental health support service.
Our parent company’s, Aspo’s, Diversity, Equity, and Inclusion (DEI) Policy was launched in autumn 2023. As part of Aspo Group, Telko is committed to fostering a diverse, equitable, and inclusive workplace where employees are valued for their differences and where everyone is treated fairly with dignity and respect, no matter their background or identity. We provide training to our employees to ensure diversity, equity, and inclusion in practice. During autumn 2024, Telko supervisors participated in a DEI training designed specifically for leadership. Our next step is to provide DEI training for all employees throughout 2024, available in their preferred languages to ensure accessibility and understanding across the company.
Telko commits to non-discrimination and sets pay levels independent of gender, age, ethnic origin, religion, or other profession of faith. We have integrated a centralized salary review process into our current practices. This includes conducting additional salary reviews to mitigate retention risks associated with base pay levels that may be below market rates and to ensure internal equity.
At Telko we are transitioning towards anonymous recruitment and aim to handle all our own recruitment processes anonymously. We started piloting anonymous recruitment in 2024 and hope to make it permanent as soon as possible. Our aim is also to implement other strategies and actions to prevent discrimination and bias during the recruitment process, ensuring a fair and equitable selection of candidates.
The key to our future success is our ability to build the competencies and capabilities of our employees and people leaders so that they can thrive in their roles today and in the future.
We conduct employee satisfaction surveys annually with themes around commitment, leadership, and performance, among other significant topics such as inclusion. The survey results are shared widely, and actions are taken at the team level. The aim of the survey is to identify the organization’s strengths and areas for development in relation to its own work, the work community, and the entire organization and to contribute to the development of a more inclusive work culture.
At Telko we have paid special attention to social responsibility in our employee satisfaction surveys. We want to ensure that our employees feel they are an important part of the work community, no one is discriminated against, and diversity of employees is seen positively.
Taking actions after the yearly survey is essential, as the survey alone does not create positive change. The actions taken on both the company and the team level based on the survey results are taking us in the right direction in building greater engagement and sense of belonging.
Our performance management process
Telko’s leadership process is based on our annual Leading performance and development process. We need to ensure that all our employees move in the same direction with a clear understanding of what is expected of us and what we should focus on, by following our common principles and values.
The performance management process provides a common framework in which to link our goals to the company’s strategic priorities and foster employees’ professional development, as well as track and reward performance and value-based behaviour each year.
Regular assessment of individual performance
Our aim is that all Telko employees have their Leading Performance and Development discussion at the beginning of the year and later Mid-Year Review discussion. These discussions giveus an opportunity to check if we are on the right track and if our goals and direction are still valid and how we can improve the competencies. We believe giving and receiving feedback is a way to grow together. Our performance evaluation processes are designed to help us thrive in our everyday work, rather than simply assigning scores or ratings.
Our learning philosophy
It is essential that we create a working environment where our people feel heard, find a greater sense of meaning in what they do, see a strong connection between their strengths and their role, and simply perform better. By investing in the continuous development of our people, we nurture a high-performance culture and aim to provide a unique employee experience.
Telko’s learning philosophy is based on the 70-20-10 principle, which categorizes learning into three main areas. Learning from Experience (70%) involves on-the-job activities, assignments, and projects. Learning from Exposure (20%) includes coaching, mentoring, and reading. Learning from Education (10%) encompasses workshops, seminars, and online courses.
Learning starts with everyone’s everyday work. To respond to evolving demands andnew challenges, we must continuously seek ways to perform our jobs better. We believe learning can involve taking small steps out of one’s comfort zone through a new project or task or questioning the status quo and improving ways of working by adopting a new perspective.
At Telko, we believe that skills and competences learned by interacting with other people are richer than information gained from books. We encourage everyone to learn from each other daily.
Telko Campus
Telko Campus is our innovation for developing our employee’s expertise. Telko Campus provides many courses and training solutions for specific skills such as English language and our IT tools. It also offers continuous development of professional competencies tailored to our needs, as well as leadership and change management capabilities. For example, TelkoConnect is a mentoring program that brings together our employees as mentors and mentees who have the will to learn new skills and gain new perspectives together. Leader@Telko empowers leaders to understand the dynamics of change, communicate effectively with their teams, and implement strategies for smooth transitions. Participants learn essential skills such as managing resistance, fostering resilience, and inspiring commitment during times of change.
Remuneration at Telko is a combination of several elements, such as base salary, incentives, and benefits, as well as non-monetary benefits like opportunities for learning, development, and career advancement. We aim to provide a competitive base salary based on geographic location, level of responsibility, experience, and performance. According to the pay-for-performance principle, exceptional performance should provide higher rewards than average performance.
We are constantly monitoring the business environment and labour market to be able to make fact-based decisions regarding our compensation structure. We participate in salary surveys and use the data to adjust our base pay frames annually.
Rewards under the incentive schemes are paid based on the achievement of set performance targets related to the employee’s own work and shared financial goals. Telko’s total compensation frame also includes additional recognition and spot rewards, which our supervisors can use for rewarding employees for a significant contribution, project work, or for stretching beyond their normal duties. Further benefits like paid paternal leave, lunch coupons, and sports vouchers are offered to employees according to local market practices.
We nurture a culture that values and promotes sustainable and ethical operations. At Telko, we can be proud of our ethical foundation, upon which our business operations are built.
‘Driving sound governance practices at all levels requires commitment to our Code of Conduct and Compliance as well as ensuring continuous development of our sustainability program.’
Aspo’s Code of Conduct and Telko’s management principles guide our operations as a responsible employer. All Telko employees are obligated to work in an ethical manner according to the code and the related e-learning training needs to be completed annually. To measure our sustainability development, we use the EcoVadis sustainability assessment as an objective metric.
The shareholder meeting has the highest authority in Telko. The shareholder meeting appoints annually the Board of Directors, which is responsible for strategy and strategic decision-making. The board consists of external members that support Telko’s operative business management.
The Chairman of the Board is the CEO of the Aspo Group, Rolf Jansson. Other members are Taru Uotila and Erkka Repo.
Telko’s Management Team consists of the Chief Executive Officer, the Chief Financial Officer, and the Vice Presidents of Plastics, Chemicals, Lubricants segments, and Vice Presidents of People and Culture. Telko’s CEO acts as the Chairman of the Board in most of Telko’s subsidiaries in other countries, and the other management team members as the members of the board.
Telko’s management model is a matrix which supports our strategic goal. Authorization rights are described in detail to create clarity around roles and responsibilities within the organization.
The objectives of Telko’s compliance program are
Process for compliance
Compliance work is a continuous process. The tools and the manuals are reviewed and updated regularly, and required actions are monitored actively to secure our compliance. For this, we have clear plans, processes, and responsibilities.
The compliance program’s development plans are updated annually based on business specific requirements and risk analyses. The goal is to develop and implement business processes, internal guidelines, and risk management as integral parts of management system and day-to-day business processes.
All employees in every country where we operate must complete the Code of Conduct and Compliance training annually. The training is available in the languages of all Telko countries, ensuring it is comprehensible for every Telko employee.
Whistleblowing
Our anonymous whistleblowing process is actively communicated to all our personnel, ensuring that everyone understands how to report any suspected violations of the compliance policy. Our anonymous whistleblowing channel is available also to our stakeholders on our web pages.
Prevention of corruption and bribery
As an international company, Telko also operates in countries where corruption is common. Aspo’s Code of Conduct absolutely prohibits corruption and bribery in all their forms. The Code of Conduct training includes anti-corruption issues and provides guidance for identifying any suspicious situations and practices considered unethical. Telko monitors sector-specific regulations and employs detailed guidelines for bribery, which comply with The United Nations Convention against Corruption (UNCAC) and FECC’s Code of Conduct. A key element in preventing corruption and bribery is responsible management, which is committed to our Code of Conduct policies. To ensure proper operating methods, Telko has implemented a Supplier Code of Conduct, with which compliance is monitored across all businesses. Preventive corruption and bribery practices are reviewed as part of compliance self-assessments or internal audits. Aspo’s Internal Audit and Legal Affairs conduct audits within all businesses in accordance with annual plans.
Anti-competitive Practices
Telko is commitment to building business based on legal compliance, transparency, and trust. Compliance with competition law is therefore of vital importance.
We compete openly and fairly:
Telko has implemented internal rules and control mechanism that allow us to adhere to our anti-competitive practices. As a part of systematic risk assessment, we also evaluate compliance risks related to anti-competitive. Our Legal and Compliance team is available to support with any questions or concerns related to competition compliance issues.
Counterparty risk assessment and sanction compliance
Telko is fully committed to sustainability and meeting compliance requirements across our entire value chain. We see this as license to operate with our long-term partners.
We conduct KYC (Know Your Customer) and counterparty risk assessments for all our partners, including sanction checks. The specific content of these assessments varies across different market areas, depending on local legal requirements.
Sanction checks are always carried out before any cooperation with a new counterparty begins, using a third-party database. All counterparties are continuously monitored for sanctions. If a counterparty is later added to a sanctions list, we receive an alert, and all transactions with that counterparty are immediately blocked.
Telko’s Supplier Code of Conduct applies to all our counterparties. We have a dedicated sanctions compliance specialist who manages the sanction-checking process and supports our employees throughout the compliance journey.
We also have processes and technical solutions in place to prevent the delivery of sanctioned or dual-use products.
Product compliance
Product compliance is essential for us as we act as a link between industrial customers and international raw material manufacturers. We strictly adhere to all relevant regulations, ensuring materials are compliant before they enter the market and taking care of the necessary requirements from authorities to guarantee their safety.
As a REACH importer, we ensure that materials are properly registered within the supply chain before they are placed on the EU market. Where applicable we also check, control, and meet the requirements of other product-specific regulations and obligations concerning our products, such as precursors, conflict minerals, palm oil, SCIP, CBAM or deforestation regulations.
We provide Safety Data Sheets (SDS) to our customers according to the sales and ensure that updates are sent in accordance with regulatory requirements. In the EU, all our safety data sheets comply with REACH regulations, and affected products are classified and labelled according to CLP regulations. In other regions, we follow the local requirements for SDSs and product labelling. To guarantee timely delivery, we use an automated system to send SDSs to our customers based on daily sales and document updates.
We have several trained and licensed ADR safety advisors within the company who ensure that all our goods are properly labelled, stored, and transported in compliance with regulations, and that transport documents contain the required hazard information. These safety advisors also provide training to colleagues on these topics.
For products with severe hazards, we communicate these risks carefully with stakeholders and, whenever possible, assist customers in replacing them with less hazardous alternatives. When needed, we also guide our customers on the safe and proper use of products, as well as provide additional relevant documentation, such as information on SVHC, RoHS, food contact, and other specific substance group contents, to ensure effective information flow throughout the supply chain.
The objective of risk management is to ensure the success and implementation of Telko’s strategy.
Telko’s systematic risk management process is an integral part of the strategy implementation, management system and day-to-day business. It includes both strategic and operational risk management. The aim is to ensure that appropriate risk identification, assessment, and mitigation plans are in place.
As a part of the systematic risk assessment, we also evaluate compliance risks, e.g., corruption, anti-competition, sanctions, data security and privacy. Separate compliance audits are conducted if elevated risk is identified in the risk assessment.
Risk management and risk awareness have improved because of the development and documentation of practices and controls. We have also initiated process development as part of our management model change. The new management model will also affect the responsibilities of risk management and help foster understanding and management of broader risk areas.
Like other Aspo companies Telko aims to become a sustainability forerunner in our own industry. This is one of our strategic development areas. enabling us to provide added value to our partners in the changing world. As one of the improvement actions Telko will commit to Science Based Targets (SBTi) by the end of 2024.
We use the EcoVadis sustainability assessment as an objective metric for our sustainability development. This helps us to both see our sustainability progress compared to other companies and identify the relevant development areas for future improvement.
As part of Aspo Plc, our sustainability development and data will be reported according to CSRD requirements in the future. The first CSRD report will be published for the year 2024. Preparation for this report began already in mid-2023 with a gap analysis and a new materiality assessment. These preparations have taught us a great deal about sustainability in our business and have provided an opportunity to explore many areas of it in greater depth. For example, we have been preparing a complete Greenhouse Gas (GHG) inventory of our operations. This work will be completed during autumn 2024.
Supplier sustainability risk assessment
As a distributor, a significant portion of our value chain’s sustainability depends on our suppliers. Many of our partners are large international companies with whom we have long-term relationships and who have established robust processes for responsible supply chain management. In addition to these key partners, we also source products and services from a diverse range of other suppliers. It is essential for us to identify potential sustainability risks in our value chain and mitigate them effectively.
We have been actively seeking effective tools for supplier sustainability risk assessment. In 2024, we piloted an AI-based tool, assessing the sustainability risks of our 100 largest product suppliers. The assessment revealed a low risk level among our suppliers. Moving forward, we will continue to conduct risk assessments, carry out deeper analyses, and implement any necessary mitigation actions. In the future, we also plan to extend this process to include our service providers.
Picture: Sustainability risk level of our suppliers according to AI analysis
Materiality assessments
In 2023, we conducted a comprehensive double materiality analysis in accordance with the European Sustainability Reporting Standards (ESRS). This process was carried out across all Aspo companies to prepare for the upcoming Corporate Sustainability Reporting Directive (CSRD) requirements. The materiality assessment questionnaire was distributed widely to over 1,000 recipients, including product suppliers, customers, logistics partners, employees, and owners.
The results of the questionnaire were thoroughly analyzed in workshops involving company management and sustainability professionals. The findings closely aligned with our previous materiality analysis conducted in 2021.
This analysis identified the following key material topics for us, reinforcing our confidence that we are focusing on the right areas of sustainability:
Starting in 2025, our sustainability performance will be reported as part of Aspo Plc’s CSRD report. However, when summarizing the materiality assessments across all Aspo companies, the corporate-level material topics to be reported resulted in a shorter list than those identified at the individual subsidiary level.
