Sustainability Report 2016

Sustainability Report2016 1

CONTENT 3500 Turnover 8 People Finland Our leading thought is to 100 000 61% create value for customers in everything we do. Customers 24 European and Asian Countries subsidiaries 323 39% Turnover, M€ 66 January ””WWee’vheahvaedhadgraegartesattasrt awritthintthhee New vision period, imimpplelemmeennttaattioionnoofftthheenneewwssttrraatteeggyy”,”, Vision 2020 started. JJuuhhaaLLaauurrioio..April Mat Service July Hungarian Construction work aquisition. for workwear production factory February launch in in Latvia started. Hygiene Service Turkey. launch in Lithuania. 10 ”We want to be a truly responsible partner”, Anna-Kaisa Huttunen. Lindström Group Sustainability Report 2016 4 Lindström in 2016 30 Profitable growth 45 Code of Conduct 6 President & CEO review 8 Four cornerstones of 34 Ethical principles 46 Lindström Group companies sustainability 36 Management and contact information 10 Excellent customer experience 16 Operational excellence 38 Sustainability in numbers 47 Lindström services 26 Engaged employees 43 GRI 44 Quality, environmental, health and safety policy2

CONTENT16”Being in a hurry does not giveus the right to cut corners”, HarriPuputti. 25 ”The glue that makes us commit is a sense of being trusted, valued and truly cared of”, Minna Gentz. 30 ”Solid company can invest in growth”, Petri Vapola 3

Lindström in 2016 3500 Turnover People Finland 100 000 61% Customers European and Asian 24 subsidiaries Countries 39% 323 Turnover, M€ January April New vision period, Mat Service Vision 2020 started. launch in Turkey. Hungarian aquisition. February Hygiene Service launch in Lithuania.4

July September OctoberConstruction work New service Acquisition of Enviro Wipes, industrialfor workwear center in wipes company in UK.production factory Pietarsaari,in Latvia started. Finland. The certi cation of Group management system was updated according to new ISO 9001:2015 and 14001:2015. 5

” We have had a great start in the implementation of the new strategy.” Turnover Finland 61% European and Asian subsidiaries 39%ia. April July Mat Service Construction work 6 launch in for workwear Turkey. production factory in Latvia started.

CEO´s ReviewA successful company has no other way than to operateresponsibly. We have to take care of the promises we’vemade to our customers, as well as the well-being of thepeople who work for our success.We do our best to use natural improve the experience. You will see ”We needresources as less as possible to the result of this work in everydayminimize the burden we place on the encounters, and certainly in the competence andplanet. This report tells you how we customer satisfaction results. The courage to makemanaged these tasks in 2016. road towards being the best service quick decisions.” company is already a lot smoother Year 2016 was a year of growth for than a year ago.Lindström. We increased our cus-tomer volume across the Group. To We have encouraged all our peoplemake growth possible, we made lot to react fast to customer needsof investments and purchased large and within possibilities, solve themamount of textiles, which causes a immediately. We´ve encouraged ourslightly decreasing profitability. managers rather act as mentors than assign tasks. I strongly believe that Lindström is currently very solid people are motivated to do their bestand our equity ratio is high. Therefore, when they have the expertise to makewe are able to invest in the growth the necessary decisions and theand guarantee to our customers a courage to confront the failures.reliable service. We have boostedgrowth through acquisitions, with During the year 2016 we also re-which we have gained valuable exper- newed our brand, that is the way howtise in the local market. we communicate and look. The new brand reflects the attitude, ”We Care”. We have had a great start in the We are truly close to our customersimplementation of the new strategy. and we want to make their everydayWe want to be the best service com- lives easier. “We Care” also has apany in 2020. This challenge we have strong presence inside Lindström. Weembarked boldly by asking questions are encouraged to give and receiveabout our customers’ daily lives and feedback, as well as do our best forthe challenges they see in the future. the customer in every situation.These discussions generate new ide-as and bold visions, on which we can If 2016 was a year of growth, I´d likebuild future success stories. to see this one as a year of coopera- tion. I hope to see great achievements We are already running a number and smiling faces. May year 2017of projects, in which we, together with bring success to all of us.our customers, test our ideas. Thispath we want to pursue. We have also Juha Laurioasked how our customers perceive President & CEO, Lindström Groupour service today and how we could 7

Four cornerstones of sustainability HARRI PUPUTTI ”We wanted to tell readers, in clearer and this is what we expect of all our Senior Vice President, Quality terms, how responsibility is linked to suppliers. our daily activity, and, for this reason, we have described this responsibility I hope you’ll enjoy reading this with the help of the four strategic report!” cornerstones in this report. ” Our leading Our leading thought is to create value for customers in everything we thought is to create do. This means that we have to un- value for customers derstand the needs of our customers in everything we and focus only on such activities that do.” brings value to them. The way in which we add value to our customers must always be a responsible one, and our ethical codes of conduct are independent of our current strategy. As our President & CEO says, we at Lindström have no other option but to act responsibly,8

Excellent customer experience comes from listening to the customer, from reacting fast to their needs, and from foreseeing their changing needs. We’ll develop our services, our skills, and our ways of conduct to meet these needs. An excellent customer experience makes for higher customer satisfaction, and that brings high customer retention.Operational excellencemeans, most of all, efficient ways of doingthings and controlling our activities. We’ll saveboth time and natural resources by improvingour actions and by eliminating all idle actions.Operational excellence will create less waste,secure the quality of our products, and furtherwork safety and well-being throughout own op-eration and our whole supply chain. Engaged employees are the key persons in meeting the set goals for growth and excellent customer experience. By focusing on the skills of our managers we can make an impact on the motivational levels of our employees and on their job satisfaction, and, in that way, on their engagement. Engaged employees lead to better results and have a clear impact on the customer experience.Growthis born organically and through the acquisitionof companies. Our goal is to grow and we’ll needmore sales skills together with goal-orientedcourses of action for company acquisitions. Bygrowing, we’ll add to our turnover and bringmore value to our business partners. 9

Excellent CustomerExperienceWe want to be the best service ” We want to be acompany. Not district champion orleader in our own sector – but the truly responsibleWorld’s Best. This means that we partner.”should operate close to our custom-ers, understand their various andchanging needs: and, above all else,always create added value for them ineverything we do. ? Anna-Kaisa, Linström’s goal is to be close to the customer. What does this really mean? It means that we genuinely want to be a supportive partner of our customers’ business operations. Our customer retention indicators, which have already been on a high level for a long time, speak for the satisfaction in our services, and we are indeed proud of our globally extensive clientele and long partnership relations. Cooperation can be long-term only when it generates clear benefit for both sides. Being genuinely present everyday is important in the maintenance of customer relations and in the development of our services. Mutual daily routines and experiences raise our understanding of what our customers require and how we’re able to react to these requirements. We have strongly emphasised the development of new solutions by which we are capable of offering higher quality service as well as new ideas to our cus- tomers. Our Customer Service will also be switching more to the channels our customers wish to use. ANNA-KAISA HUTTUNEN Vice President, Business Concept Development10

EXCELLENT CUSTOMER EXPERIENCEVision goals and resultsWe always offer an excellent customer experienceby which our customer relations are sustained forlong periods.We measure our customer satisfaction by means of an 96 %annual customer survey. In 2016, almost 70 per cent ofresponses to the survey showed satisfaction with our ser- customer retentionvices, and almost half would recommend us to others. We sent a questionnaire to all our customers, and thetotal result on a scale of 1–5 was 3.98. Our target in usingthis measurement method is a total score of four (4). We monitor the quality of the customer experience alsoby means of a survey following our meetings with them.The measurement method was introduced in 2016, andit also gives our personnel valuable information on thesuccess and development targets of our own work. Moreover, we monitor the duration of our customerrelations and customer retention annually. In 2016, ourcustomer retention was on a very high level in all our oper-ations – in average 96 per cent.Customer Experience Survey 2016 50Around % + 70Over % would are satisfied with recommend us our services 11

EXCELLENT CUSTOMER EXPERIENCE Customers’ needs as our starting point These days flexibility is expected from services as well as more choice-related possibilities. Companies’ own wishes, the re- quirements of sectors, and the cultural diversity of our opera- tional area all bring interesting challenges to the development of our services. Services must also bring added value to their users. The best way to understand our cus- of users and conceptualised how with particular. We have embarked on tomers’ needs is share close everyday small improvements or, for instance, improving workwear identification by relations, outline and conceptual- new technology, we have the capac- various user groups and accessibility ise small matters as well together ity to improve the workwear or user to the right sort of clothing by im- – things by which we improve the experience. For sale situations, we proving remote-sensing solutions. To service experience by improving their have developed the Live Design tablet maintain the tidiness of the lavatory condition. application, by which the seller and facilities of shopping centres and oth- customers can plan the appropriate er large user streams, we developed a In cooperation with our customers design mats for customer space in mobile data transfer solution. in 2016, we have examined the need Only the Clothing moves – and we follow right clothing is Workwear provides protection for the employee or the safe process. Due to the hygiene requirements in the food industry, separate workwear may be worn in various production facilities or tasks. In certain pharmaceutical industry processes, clothes must be changed after re- turning from a break to new ones so particles endanger- ing the quality of the product are not introduced with the clothing. In many jobs, on the other hand, it is important from the perspective of work safety that the employee is wearing certain protective equipment. Via automatic remote sensing (UHF-RFID technology), we can identify where the clothing moves in real-time and, for example, set off alarms if a person enters the facilities who has not dressed correctly. RFID also enables the reading of large amounts of clothing at one time, which facilitates the management of storage areas and considerably increases the trans- parency of workwear recycling both for us and our customers. The technology is highly appropriate for textile rental, because the identifiers located in clothing withstand washing as well as challenging conditions such as heat fluctuations. In utilising remote sensing, the practices and regula- tions associated particularly with the privacy of the indi- vidual – such as the EU data protection regulation and RFID Privacy Impact Assessment – must be taken into consideration. Automatic remote sensing is advancing, and we are actively looking for ways to utilise it together with our customers.12

EXCELLENT CUSTOMER EXPERIENCEClothing for A clean towel for clean handsthe work shiftfrom a smart When we use the lavatory facilities, we want to dry ourstorage hands on a clean, dry towel. At large properties – par-facility ticularly if the degree of space utilisation is high – the time and efforts of cleaners go into ensuring that towelsThe right size of shirt for sure! are not depleted and the premises stay neat and tidy.In 2016, Lindström and HOK-Elanto tested a workwear The new roll towel device we have developed gathersstorage facility for mobile labour. customer feedback from users and reports as required to the cleaner by phone when towels are running out or A total of 50 HOK-Elanto employees who work at two customers are unhappy with the tidiness of the facili-individual market chains took part in this smart storage ties. Afterwards, the information collected by the devicepilot programme. Employees, who work in stores of both can also be followed-up as to how the changes in clean-chains, do not have their own workwear, so they have ing procedures have affected customer satisfaction.used what is available and have not always found suita-ble clothing. In this pilot study, they picked up workwear This ‘Smart Washroom’ service was developed andfrom the smart warehouse located in a central location tested together with the CGI IT services company andand were always able to start the day in suitably sized ISS Palvelut. Lindström’s roll towel devices at CGI’sclothes with correct brand. The RFID method makes operational centres delivered an automatic servicethis a ‘smart’ storage solution which also makes logging request to the mobile devices of ISS cleaners when tow-in and out for the clothing easy and reliable. els neared depletion. “These solutions not only increase the effectiveness of our employees’ operations but also Most of the employees were satisfied with the smart improve our service capabilities. We are capable ofwarehouse experiment, and it was regarded as simple to generating services proactively before our customersuse. It was pleasant to arrive for the shift knowing it was even encounter deficiencies. This has big significancecertain that one could find the correct size and colour of especially in the case of large customer-flow environ-clothing. ments, such as airports, shopping centres and restau- rants,” explains ISS Palvelut’s managing director,Jukka Antero Levänen, HR Director for HOK-Elanto, is satis- Jäämaa.fied with the results of the test: “We wanted to take re-sponsibility for people and treat them equally. Workwear Neatthat is easily available and which builds our employer premises,image has a pivotal role in this. I value Lindström’s ea- satisfiedgerness to test new solutions for the needs of a mobile usersworkforce,” Mr Levänen says enthusiastically. 13

EXCELLENT CUSTOMER EXPERIENCE Customer satisfaction Happy employees, happy affect the customer experience (read customers more about employee satisfaction on page 27). Our target is a satisfied customer and a long-term customer relationship. It According to the study carried out has been important for us to ascer- in spring 2016, customers are satis- tain the connection between custom- fied with us, as almost 70 per cent of er satisfaction and that of personnel the respondents gave us a positive generating services, as an excellent score and almost half would also rec- customer experience is created only ommend us to others. On the other by means of satisfied employees. The hand, there were also substantial dif- service culture study we implemented ferences from one unit to another, and brought the views of customers and in the future we intend to support the personnel together and expanded our units that fared most weakly, as well understanding of how good work by as the continuation of best practices managers and employee satisfaction between the various units. Customer satisfaction survey 2016 Customer experience (NPS) Average NPS 3,98 +31 Satis ed 71 % Detractors 17 % Not satis ed or unsatis ed Passive36 % 17 % Promoters 48 % Unsatis ed 10 % No answer 2 % Customer experience indicator NPS is based on question: ”Would you recommend Lindström to others” (scale 1-10). Values 1-6 are Detractors, 7-8 Passive and 9-10 Promoters.14

EXCELLENT CUSTOMER EXPERIENCESafe partnerOne significant global change in working life is the high- Without trustlighted responsibility the employer has for the well-being we have noand safety of employees, and many of our customers also businessregard looking after their personnel as a matter that hasbecome more important. with regard to legal demands and general conditions. Nevertheless, weFor example, expertise related to Transparent also in a grey area always act with responsibility also inoccupational safety is required more those countries where the require-frequently than before, and custom- Customers expect responsible and ments are not as high.ers expect to get support from us as transparent operations from us – andwell. this is not the hope of only our largest The expectation of transparency customers, but a growing trend in all does not, however, refer only to dis- It is particularly important for us to markets. As a result of the social me- tant matters linked with the procure-function as expert partners for our dia, the irregularities in companies’ ment chain but also to our routinecustomers and help them to look after own operations or, e.g. in the working activities, agreed workwear deliver-the well-being and safety of their em- conditions of subcontractors rise ies and reliable invoicing. Withoutployees. Our customers can trust the quickly to general knowledge. transparency in all our operations, wefact that we have carefully considered do not deserve our customers’ trust –the protection of their employees. We operate in Europe and Asia, and without trust we will not have anyBy means of correctly selected and and also purchase products from business in the future.appropriate products, the well-being African nations, so there can be con-of personnel is also improved. siderable differences in our countries 15

OperationalExcellenceSustainable decisions daily! are made at Lindström laundries a ” We’ll only focus million times daily.We at Lindström don’t handle respon- on such activitiessibility in a separate department but We make similar decisions all that bring value toevery Lindströmer makes responsible the time that have an effect on the the customer anddecisions daily. For instance, at the amount of textile waste and the qual- that the customerlaundry, each textile care worker ity of our products together with the is willing to paymakes decisions about the quality well-being of our staff and suppliers. for.”of the service to be delivered, ener- Responsibility isn’t just an emptygy and water consumption, and the word for us, it is one of the values thateffectiveness of our service when guides our decision-making and getschoosing the washing program for the us through the rough patches.textiles. These important decisions ? Harri, how does operational excellence relate to sustainability? Operational Excellency means for us, first and fore- most, the effective means of operations and man- agement that saves both time and resources. We’ll only focus on such activities that bring value to the customer and that the customer is willing to pay for. In other words, cut to the chase and ignore the rest. Effectiveness is also necessary because we are under constant pressure for faster delivery. Despite pressure and hurry, we have to act responsibly, always, and follow our values. This also entails the choosing of right business partners. Being in a hurry doesn’t give us the right to cut corners when it comes to responsibility. HARRI Puputti Senior Vice President, Quality16

OPERATIONAL EXCELLENCEVision goals and resultsWe’ll act responsibly and eliminate all unnecessarybusiness. This gives us control over our actions andtheir effect on people and the environment.8 7,07 6,7 6,7 6,76 2015 2016 2020 ” Being in a hurry5 does not give us the right to cut corners.”432 Water consumption1 l/kg0 20141,2 1,1 10 9,3 1,00,8 1,0 0,97 0,95 8 6,8 6,8 less0,6 2015 2016 2020 6 than 5 0,40,2 40,0 Energy consumption 2 Rate injury 2014 kWh/kg 0 injuries/million working hours 2014 2015 2016 2020100 90 10,6 10,6 10 9,8 80 72 71 73 8 less than 7 60 640 420 Recovery rate of textile 2 Sick days0 waste 0 person/year % 2014 2015 2016 2020 2014 2015 2016 2020We monitor the responsibility of the supply chain with uniform reporting and in accordance with purchasing strategy. We’ll assess our suppliers and enterthe results of those evaluations into our supply database. Further, we’ll audit our suppliers within the realm of our regular supplier auditing program. Theoutcome of audits will be documented in the AMT (Audit Management Tool) system. 17

OPERATIONAL EXCELLENCE The effective use of textiles throughout their lifecycle Renting textiles is a waste-free solution for our customers, since the responsibility for purchasing, maintenance, stor- ing and disposal is ours at Lindström. We have immersed ourselves in this solution regarding sustainability. We task because we purchase over two constantly seek new recycling targets million kilogrammes of textiles per for disposed textiles both in Europe year. We’re searching for and carrying and Asia. out solutions constantly to prolong the lifespan of a textile and to reduce the amount of textile waste. The re- duction of waste is the starting point for textile purchasing, we order only on demand and design textiles to be easy to repair. The profitable re-use of textile waste - easier said than done We withdraw about a million kilo- The method that could revolutionize textile grammes of textiles per year, when waste handling rental textiles, such as workwear, ho- tel linens, and restaurant table cloths Textile waste is a problem for us and globally calls for a solution. reach the end of their cycle. We’re taking part in the Relooping Fashion project organized by VTT (Technical Research Centre of Finland Ltd.), the aim of which is to find Our aim is to increase the utilization a solution to handling textile waste. With a mechanism for dissolving of textiles to 90% by 2020. Our chal- cellulose fiber developed by VTT, used cotton clothing is dissolved in lenge is to find utilization targets and this project and the residue fiber is then processed to new fiber for suitable partners locally. the textile industry. Please read more on the project web pages: www.reloopingfashion.org. For example, the biggest problems in the utilization of workwear are press-studs and zippers that have to be removed. To add to that, mixed materials and especially the dirt in industrial workwear can make re-use difficult. At the moment, the prevailing practise is to burn disposed work- wear for energy, but it is not the best18

OPERATIONAL EXCELLENCEWe use our textiles until they are unusable beforewe order new ones. 19

OPERATIONAL EXCELLENCE Effective laundry, clean laundry Washing and repairing textiles has a significant local effect to the environment. We use energy, water and detergents, as well as fuel when delivering garments to customers. Short disctances Sorting Energy savings We locate our laundry facilities close The clothes are sorted by dirtiness Most of the energy used in the laun- to industrial areas to reduce textile and colour to ensure the right wash- dry is used to heat up the wash water transportation. We optimise distri- ing program. In the industrial washing and to finish off. Collecting heat from bution routes all the time and keep process clothes are disinfected and the wash water and the tumble drier the distribution trucks’ used capacity therefore suitable also for the food air improves energy effectiveness. high. industry. Also the heat from the wash water can be used to heat the next batch of water.20

OPERATIONAL EXCELLENCEWe wash and repair 175 millionkilos of textiles every year. When the textiles are in the end of their lifespan, we take them out of use. 73% of textile waste is used as energy source or recycled products.Water savings Controlling the wash result DeliveryWe recycle water in different washing We control the cleanliness of the The same truck transports the freshcycles. The used rinse water can be washed products very closely. The textiles back to the client and at there-used as the wash water for the next biggest risk that textiles are dirtied is same time picks up new dirty laundry.batch. We always use clean water for in the final phase, in the transportation Clean and dirty textiles are alwaysrinsing, and we monitor the end result back to the customer from the laundry. kept separate.and the quality of the wash water. The For the washed clothes to be main-cleanest water comes from laundering tained clean and hygienic until theyhotel textiles and the dirtiest comes reach the customer, we cover themfrom mats and industrial towels. during return transportation. 21

OPERATIONAL EXCELLENCE Responsible products and purchasing Responsible products and purchasing means that we must always know what we are buying and be responsible for the products offered to our customers. As a global company, we buy goods from near and far. The products needed in abundance Mutual understanding We started a are manufactured mainly in Asia and minimizes risks workwear factory Africa. We have also local manufac- turers for small-scale needs in Europe We follow our suppliers’ working As a respond to our customers need for and Asia. conditions, and compliance with faster deliveries we decided to start our environmental and ethical principles own workwear manufacturing. First work- We favour long-term customer with regular audits and visits. We wear factory is opened in the beginning relationships and buy the bulk of our don’t perceive the audits as mere of 2017 in Tukums, Latvia. This makes it products from companies we know pop-up quizzes or inspections but easier for us to deliver work gear faster in very well. To ensure the responsibility as a possibility to deepen our mutual the Northern Europe region. in our actions through and through, understanding of responsible courses we partner only with companies that of action in different cultures as well. act responsibly and are committed That is why the audits are performed to the ethical principles of Lindström mainly by our own staff, and we visit (page 34). our suppliers also in between audits. While visiting, we take note how22

OPERATIONAL EXCELLENCEAssessing country risksWe assess the following risks involved inour operations:• salary and energy expenses• political change• culture• crime and piracy• government officials’ behaviour and corruption• legislature• the climate and infrastructure• health and safetWe assess the probability of risks in oursupplier countries and the effects of thoseto our business, and we also plan how tosafeguard ourselves from those risks. If weevaluate the risk level to be too high, wewon’t purchase supplies from the countryin question.agreed topics are moved forward and Our supplier classification ishow ethical principles are followed to based on risk analysis andensure that potential problems are importance of goods.resolved rapidly. tant suppliers. These make up about We classify our suppliers by the 15 per cent of all our suppliers. Werisks involved in suppliers and suppli- develop the monitoring and reportinger countries and also by the impor- of our supplier chain constantly intance of goods. We made a country order to keep up to date with what’srisk analysis last year to evaluate, for happening globally and whetherinstance, the state of official inspec- agreed issues are followed up on.tion, human rights issues, use of childlabour, and corruption by the suppliercountry. In addition, we’ve made an individu-al risk analysis for all our most impor- 23

OPERATIONAL EXCELLENCE Dependable quality Lindström dresses approximately a the EAC approved personal protection million workers daily. Besides work- equipment for Russia. wear, we offer mats, hygiene products, textiles for hotels and restaurants, All our products are designed for industrial wipers, and personal pro- the intended use and manufactured tection equipment. We are responsi- or quality –approved according to ble for the quality and safety of our the Lindström requirements. For our products and for the suitability of their suppliers to be familiar with all our use. instructions and demands, we’ve pub- lished an all-encompassing Quality We help our customers choose the Assurance Manual on our web pages: best products for them and, in that www.lindstromgroup.com/suppliers. way, increase safety and hygiene, The manual covers the whole supply and ensure that the end-users feel chain; from quality control to planning comfortable and well. We are also and delivery. familiar with the labels and certifi- cates needed for different products in different fields and countries, for example, the CE label for the EU and24

OPERATIONAL EXCELLENCESafety at workWe are responsible for our employ- Safetyees’ health and safety. The most observationseffective way to increase safety is to are an effectiveprevent accidents and monitor risks, way to preventwhich is what we focus on. accidents. The most common accident accident figures among subsidiaries.situations for Lindströmers are Moreover, the cost effects of sickwhile commuting to and from work leaves and absences are notable butand while moving a trolley or a mat not yet recognised by all our manag-grid at a laundry The most notable ers. We’d like to increase the knowl-occupational hazards are linked to edge of managers about the costergonomics, noise, vibration, and of days off work, and we have goneexposure to chemicals. An important through this issue in managementmeans to prevent such accidents and training.occupational hazards is to monitorsafety risks. We encourage our staffto always report on their findings. Weorganise monthly safety walks at ourservice centers to monitor the safetyand risks of the premises together. Our challenges are the differentways of registering accidents in dif-ferent countries and cultures, whichresults in an inability to compare the 25

EngagedEmployeesWe are growing internationally at Our international growth will be ” Take mattersa good rate, and we are currently made with the help of capable,almost 3,500 Lindströmers working engaged, and enthusiastic Lind- proactively furtherin 24 countries. We must adapt to a strömers. Therefore, we have started and don’t be shynew way of doing business to suc- an internal business culture change about makingcessfully operate and grow in different with the aim of putting more empha- decisions!”countries and cultures; in other words sis on the well-being, development,we’ll be making less decisions at and encouragement of Lindströmers.the head office, and we’ll encourage The development and expansion ofLindströmers to take responsibility our own skills will enable us also toand make more decisions locally, near please and serve our customers evenour customers. better than before. ? Minna, what can be done to help people engage to Lindström? We managers have to be able to imagine the future and to convey this vision and its possibilities, to our people. With the help of the vision, it is easy to set common goals, to start developing the right kinds of skills, and to motivate people to work towards their goals. We must also support and encourage each other. Creating a sense of being trusted, valued and truly cared for is the best kind of “glue” to bind people to the company. Moving decision making to the people that are close to the customer is also a clear signal of trust. We’ll help our managers further their own skills so that they’ll be able to support, develop, and encour- age Lindströmers to advance to more challenging jobs. We’ve published career paths as well with which people can recognize their own potential to develop to more responsible positions at Lindströms. We’ll follow employee engagement and satisfaction regularly. It is good to see Lindströmers engaging so strongly. MINNA GENTZ Senior Vice President, Human Resources26

ENGAGED EMPLOYEESVision goals and resultsGoal: Our employee satisfaction is in the top twenty percent of the international comparison value. Lindström Vision goal 3,88*0% 4.03 100 % *Taking into account all the questions in Margin for best 20% in 2016 out personnel satisfaction survey, our result was 3.99.In addition, some more accurate goals to measure our success rate:3-5 strong candidates for 90 of potential line 75 of open managerial each open position % managers stay at % positions are filled Lindström in-housePeople in numbers 2016Total number of people** People by country2016 3489 61 % Women Finland 15442015 3248 39 % Men Russia2014 3039 Hungary 357 India 227People by position Lithuania 185 Czech 142 Production 56 % Estonia 135 Sales and customer service 32 % Others 122 Experts 10 % Management 2 % 777 **on the last day of reporting year 27

ENGAGED EMPLOYEES Good news travel fast We measure employee and custom- ternal service culture that we convey er satisfaction annually. In the most all the way to our customers. There is recent study, in spring 2016, more a clear connection between customer than 70% of our people were satisfied and personnel satisfaction, and, thus, with Lindström. These results show we aim to develop our culture and that the engagement of Lindströmers encourage our people. is high, and 77% feel engaged to both their job and their employer. We aim Manager as a coach – for more to develop further, especially in feed- able and courageous people back and internal communications. We’ve taken a first giant step towards We measure up internationally changing our internal culture in which when compared to other service in- we’ll encourage Lindströmers to take dustry companies. Our results vary by responsibility and to make more deci- country and unit, however, and we’ll sions locally, close to our customers. be spreading and making better use Via this cultural change, we’ll be able of good practises from the best units, to fulfil our customer promise of “We and, in that way, we’ll strengthen our care”. overall result. In this new operating culture, We believe that good management the role of the manager is more of and loyal people will strengthen the in- a coach, and, thus, we started a program in 2016 for our managers Job satisfaction survey 2016 to give them the skills they need for coaching. We expect out managers to Average have a new, supportive role to make sure our people are encouraged to be 3,99 more independent and proactive in their way of working. In the 2016 operating countries and units, we have made plans to push forward this new culture and have provided guidelines on how to show the “We care” attitude in everyday behaviour and actions. Satis ed 71 % There is a clear connection between Not satis ed or unsatis ed customer and personnel satisfaction. 17 % Unsatis ed 11 % No answer 2 %28

ENGAGED EMPLOYEESCompetion We carebetween bestsales people ”Our people have informed us of clear changes that haveis fierce happened since we started to pay attention in being supportive and encouraging. For instance, the mandateDon’t lose good sales people! to make decisions has encouraged our employees to make decisions themselves at all levels. For this, they areA fifth of our people work in sales, and our challenge is, given recognition for a job well done. Openness in givingespecially in the Baltic region and China, to ckeep our feedback also helps us to learn from mistakes. Further,sales people. The young in the Baltic area often head doing things together has made things better, and weabroad, and the competition is fierce for staff with are taking the time to discuss things together.”language skills in China. Kalpana Sachdeva, HR Manager, India To keep our good sales people, we decided toreinforce their engagement to the company, as well We areas reinforcing the active stand of the managers in the takinginduction training, in committing to the company and time toin motivation when training new sales agents. We took discussnew measures into action at the end of 2016 in induc-tion in China, Lithuania, and Latvia. In those countries,the manager follows the new sales representativeclosely for the first 3-5 days, providing support forthem, and each new sales representative is given anupdated and thorough induction package about Lind-ström and our policies. In addition, they are assigneda buddy. Further, each new sales representative´sperformance will be monitored actively; they’ll receiveregular feedback about their work, and support inmeeting sales targets.“It’s hard to explain, but it’s in the air. We’ll see morehappy faces and hear more and more new ideas. Nowwe’ll analyse and develop not only sales as a functionbut each sales person as an individual. There is also anew approach to new sales people, they feel like ourown children that we need to raise.”Ovidijus Gudaitis, Sales Coordinator, Textile Wiper Services, LithuaniaEgidijus Cibulskas, Senior Sales Manager, Mat Services, Lithuania 29

ProfitableGrowthAlthough we are growing fast, we we are ensuring that this growth is ” We learn fromdo not forget our values profitable, and we are operating only in those nations where we are able to our mistakes.”Our goal is to grow and achieve turno- act in accordance with our values. Wever totalling EUR 500 million by 2020, launch business operations in a new manner and in compliance with clearand we are indeed increasing quickly country only after we find local per- principles. Our operations are thusboth organically and via corporate sonnel and partners whose actions not steered exclusively by reaching foracquisitions. We have expanded our match our values and ethical princi- growth but rather the desire to obtainoperations into new countries during ples. In addition, we always initiate a economically profitable and ethicallythe last twenty years, and at the mo- process linked with corporate acqui- sustainable solutions.ment our largest growth expectations sitions from the detection of the salesare directed towards Russia and Asia. object right up to the integration of the object purchased – in a controlled Within the midst of rapid growth, ? Petri, Lindström operates in 24 countries: How is it ensured that operations are responsible in all of these countries? We have precise ethical action guidelines that we conform with. We have also brought about a big change in the organisation and reports are made on all operational nations directly to the financial director. Previously, it could be difficult to report problems or possible management violations up the ladder,but now it’s easier to bring problems up, and we have also harmonised our operational methods. In addition, we’ve further detailed the processes connected with corporate acquisitions, for instance, so we don’t just act or react according to the circum- stances but in a precisely specified manner. We’re especially diligent when it comes to observ- ing local laws and regulations, and we take action on problems detected immediately. We also carefully go through the problem cases with the management and Board – and above all we learn from them! PETRI VAPOLA CFO30

PROFITABLE GROWTHVision goals and results in 2016We provide economic welfare through responsiblebusiness practices.Turnover M€ and annual growth rate340 288 303 301 302 323 Solid company can320 invest in growth.300 +9,8 +5,3 -0,6 +0,2 +7,0280 2012 2013 2014 2015 2016260240220200Net profit M€ Quick ratio35 30,2 4,0 2,9 3,3 3,1 2013 3,5 2013 2014 201530 23,3 3,0 2,6 2,7 2014 2,5 1,225 19,3 19,1 14,8 2,020 2015 2016 1,5 2016 1,015 0,510 0 201250 2012Equity ratio % Return on investment %100 77,4 79,9 81,5 80 78,8 30 24,3 80 2013 2014 2015 20 2013 10 19,760 60 % 16,7 2014 15,9 20 % 0 2012 2015 11,940 201620 0 2016 2012 31

PROFITABLE GROWTH Year of growth 2016 Growth this financial year, development was the Group’s profitability during the supported with business purchases financial year, mainly due to a rise in In 2016 Group’s turnover grew by and acquisitions in Great Britain and material and personnel costs. In the 7.0 percent since the previous year Turkey. In addition, a new company parent company profitability im- and was EUR 323 million (EUR 302 was established in Hungary. proved, mainly because the turnover million in 2015). The turnover of the grew relatively more than acquisi- parent company was EUR 173 million Profitability tions. (EUR 165 million). In 2016, European and Asian subsidiaries’ share of the The Group’s profit before taxes was Investments Group’s turnover was EUR 127.0 mil- EUR 22.4 million (EUR 27.2). The lion or 39.3 percent (EUR 114 million parent company’s earnings before The Group’s net investments in the or 37.7%). extraordinary items, appropriations financial year were EUR 34.2 million and taxes was EUR 32.3 million (EUR (EUR 22.1 million). The parent com- Group’s business grew on almost 30.3 million). There was a decline in pany’s total investments amounted to all markets measured in euros. During Direct economic value generated and distributed 2016 (t€)32

PROFITABLE GROWTHWe employ a great number of suppliers,for example, all our delivery service is outsourced.EUR 10.7 million (EUR 10.4 million). The ation risks. Because of the current Taxesmost notable investments made by the situation in eastern Ukraine the oper- Taxes 2016 by typeparent company during the financial ations of the local laundry were alsoyear were into IT systems and exten- reorganised. On the Group level, the Personnel related 47 %sion of laundries at Vantaa, Finland. company’s operating conditions have VAT 42 %The project is due to be completed in remained the same and in 2017 the Income tax 10 %2017. Other parent company laundry turnover of both the parent company Other taxes 1%machinery and service centre im- and the whole Lindström Group is Taxes 2016 by areaprovement investments were made in estimated to rise.Pietarsaari, Hämeenlinna, Espoo andPieksämäki. The subsidiaries founded The Group grows mainly organicallynew service centres in Sweden and but its goal is to increasingly growEngland. Extension and modernisa- through acquisitions. The profitabil-tion work was performed in Bulgaria, ity of the company can be assuredIndia, Lithuania, Turkey and Russia. A through active customer cooperationsignificant investment into a product and by continuously making process-manufacturing facility in Latvia was es more efficient. Thus, profitabilitystarted in 2016 and continues in 2017. is estimated to remain at the current level.Funding and liquidity The investments in 2017 are esti-During the financial year the parent mated to be larger than investmentscompany made share capital invest- in 2016. In Finland, significant laundryments worth EUR 5.5 million (EUR machinery improvement investments6.4 million) into Indian, Ukrainian and are made in Nurmo. The parent com-South Korean subsidiaries. pany is also making significant invest- ments into IT systems. In the subsid- The Group’s liquidity remained iaries the most notable investmentsgood for the financial year. In the fi- into new service centres are made innancial statements, the Group’s bank Latvia, Lithuania, Great Britain, Russia,loans are credits targetedly negoti- China and Estonia.ated for the subsidiaries through theparent company. We meet our obligations as a taxpayerDevelopment operations We do not practice aggressive tax Finland 68 % planning; our companies are eachThe company’s development opera- registered to a local business register, European and Asiantions were primarily focused on the and they pay their taxes in the country. subsidiaries 32 %modelling and development of the ser- We comply with international transfervice concept and processes. Develop- pricing regulations and local tax lawsment work was also made in the fields and regulations.of product design and acquisitions.Investments related to development We paid a total of EUR 7.5 millionare entered as operating expenses. income taxes in the 2016 period. Besides income tax, we paid for theEstimate on future development production, services, peronnel, and real estate-related taxes, a total of EUR 64.4 million in 2016.The company operates in countrieswith elevated exchange rate fluctu- 33

Principles of our operations Values show direction. Our operations are guided by our values: Profitable Long term Responsibility Enthusiasm and growth customer the joy of learning relationships Code of conduct Our commitment to initiatives The Lindström Code of Conduct consists of the ethical • The ICC Business Charter for sustainable development principles that determine how both we and all our suppli- • The principles of the UN Universal Human Rights Dec- ers conduct our business, and how we take responsibility for people and for the environment. laration • The ILO Declaration of Fundamental Rights and Princi- We purchase supplies only from those suppliers that are committed to our regulations, and follow the compliance ples with those regulations with audits and visits by newspaper • The guidelines of the OECD for multinational enterpris- editors. es What we observe • The principles of Global Compact (We issue reports via • Our management policy is certified the European Textile Service Association) according to the ISO 9001- and ISO 14001 • Sedex (Supplier Ethical Data Exchange), the network standards. We conducted a re-certification in accordance with the new ISO 9001:2015 that promotes social and ethical responsibility and ISO 14001:2015 standards in 2016. Our membership in organisations • The self-inspection system for the hygiene require- ments of all laundries has been built in accordance with • Family Firms Association (Finland) standard EN-SFS 14065 (Textiles – Textiles serviced in a • Confederation of Finnish General Industry laundry – Microbiological purity management). • Confederation of Finnish Industries • European Textile Service Association (ETSA) • We also follow the OHSAS 18001 standard for health and safety management in the workplace. • Our President & CEO, Juha Laurio, acts as the ETSA chair for the 2014-2017 period All the cotton roll towel textiles provided by us and 90% of our workwear and hotel textiles are Öko-tex 100-certified. Our specialists act on various national and international teams promoting our field of business, standards, and The Finnish roll towel service and the Swed- legislation. ish hotel textiles service centre both carry the Nordic Ecolabel label. 100 % of suppliers are commited to Lindström 4075 0055 Code of Conduct.34

PRINCIPLES OF OUR OPERATIONSLindström builds a better future forchildrenWe are very proud to state that we’ve been one of themain contributors to the WASH project, organisedby UNICEF in India, for nine years now. The objectiveof the WASH project is to improve the sanitary andhygiene conditions in the poorest regions of India.This is an ongoing project to improve the lives of themost unfortunate tribes in the most populated regionof India, Rajasthan. Fresh water, proper sanitation and plumbing arethe basic rights of every child. Since 2014, Rajasthan’s WASH project has reachedover 76,000 children in 574 schools. Info about thefollowing has been distributed at schools: hygieneas well as how to build and maintain hand-washbasins, lavatories and water distribution points. Localcommunities have received expert advice thanks tothe project. Read stories about the children, schools and villag-es of Rajasthan at www.lindstromgroup.com/unicef.Images ©UNICEF/India 2015/Haru 35

PRINCIPLES OF OUR OPERATIONS Management We are a family company established in 1848, and the influence of the owner family is seen in our values and management style. Our head office is located in Helsinki, Finland. A strategy implemented in Monitoring of operations and Risk management everyday life related compensation Our risk assessment and manage- Our vision and the methods based on In order to follow our operations, we ment are systematic and under the it are determined at five-year peri- have formulated a Group-, subsidi- control of the Board. By means of risk ods. The vision currently in effect is ary-, unit- and personal level-based management, we endeavour to en- targeted to 2020 and is founded on a measurement tool which is bound sure the continuity of our operations. strategy participated in by about 300 to strategic targets. In building this Risk management is concentrated on Lindström employees from various measurement tool, we gave attention business risks and the anticipation parts of the organisation. The strate- to ensuring that it would not lead to of contractual and credit risks in our gic choices steer the everyday work only partial optimisation. The tool also operational environment and the via development projects, the goals of functions as the basis for our system related requirements of our busi- the teams, and the work tasks of the of compensation. ness operations, as well as the risks units concerned. associated with occupational and Role of the local chemical safety and the security and Our business operations are led unit is strong in protection of data. through global and regional functions. decision-making. According to our strategy, we make decisions close to the customer, so Global functions Regional functions the role of the region and local unit is strong in decision-making. Among other things, we lead the profitability of services, responsibility, quality and development as well as matters connected with human resources centrally on the Group level. Finland, Baltics, Belarus, Comforta Asia & Eastern Europe Central & Western Europe Russia Procurement Sales and Finance and Human Quality Services Markets Business Resources & Product Control Concepts President & CEO36

PRINCIPLES OF OUR OPERATIONSBoardJukka Roiha, Harri-Pekka Naresh Gupta Ahmet Esen Anne KorkiakoskiChairman of Board KaukonenKarolina Roiha Sari Kousa Independent mem- bers – i.e. members who do not have work- or owner- ship-based relation- ships with Lindström – are Anne Korki- akoski, Naresh Gupta, Ahmet Esen and Har- ri-Pekka Kaukonen.Management TeamJuha Laurio, 44 Mika Hartikainen, 50 Theo Slegt, 56 Harri Puputti, 50 Petri Vapola, 45President & CEO Senior Vice President, Senior Vice President, Senior Vice President, CFO Asia and Eastern Europe Operations QualityMinna Gentz, 46 Mika Kujala, 39 Santtu Jokinen, 43 Jari Vihervuori, 46Senior Vice President, Senior Vice President, Senior Vice President, Senior Vice President,Human Resources Russia and Group Business Western & Central Finland, Baltic States, Development Europe Poland and Belarus Managing Director, Comforta Oy   37

PERSONNELSustainability in numbersPeople by country 1544 Sick days and personnel turnover 2014 2015 2016 357 4,12 4,36 4,48 Finland 227 Sick days, % 9,75 10,58 10,63 Russia 185 Sick days / person / year 18 % 17 % 18 % Hungary 142 Turnover of personnel, permanent* India 135 * Previously reported turnover of full-time personnel Lithuania 122 Czech 99 Estonia 87 Latvia 76 China 74 Slovak Republic 68 Ukraine Sweden 63 Great Britain 57 Poland 53 Slovenia 48 Bulgaria 41 Romania 25 Croatia 21 Turkey 20 Serbia 16 Germany 15 Belarus 8 Kazakhstan 6 South Korea 3489 Total Type of employment 2016People by age 2016 Under 30 yrs 25 % Permanent 86 % Full-time 85 % 30-50 yrs 58 % Fixed-term 14 % Part-time 15 % Over 50 yrs 17 %38

ENVIRONMENTEcological balance sheet We have reduced the use of oil In New textiles 2014 2015 2016 ton Washed textiles 2  446 2 634 2 883 ton Total energy 159  334 163 679 175 483 MWh 175  113 165 985 171 046 MWh Oil 13  213 5 202 MWh Natural gas 75  468 72 317 512 MWh Propane 32  264 33 498 77 397 MWh Purchased steam 9  462 10 811 34 638 MWh Electricity 35  098 36 275 12 146 MWh Bio gas 1  189 1 230 38 078 MWh District heating 8  418 6 652 Water 1 119 780 1 638 m3 Detergents 1  759 1 088 862 6 637 ton 1 737 Out 2014 1 184 092 Disposed textiles 1  142 1 772 CO2 emissions 58 726 Effluent 2015 2016 ton BOD7 579 1 204 1 301 ton COD 1  567 60 462 60 363 Phosphorus ton Suspended solids 13 427 469 ton Heavy metals 486 1 162 665 ton Grease and oil ton Total waste 4 17 7 ton 107 442 370 ton 6 021 2,7 3,5 ton 122 117 6 143 6 118Consumption and emission in relation to washed kilos 2015 We’ve been able to step up our 163 679 operations, while the washed kilos Washed kilos, tonns have increased. Energy 165 985 2014 1,01 2016 ton Total consumption, MWh 159 334 175 483 Per kilos washes 1 088 862 Water 175 133 6,7 171 046 MWh Total consumption 1,1 0,97 kWh/kg Per kilos washed 1 737 Detergents 1 119 780 10,6 1 184 092 m3 Total consumption 7 6,7 l/kg Per kilos washed 60 462 Greenhouse gas emissions 1 759 370 1 772 ton Total 11 10,1 g/kg Per kilos washed 58 726 60 363 tCO2e 370 344 gCO2e/kg 39

ENVIRONMENT Textile waste Energy 2016 2016Waste 2016 Sand and sludge 42 % To energy 54 % Natural gas 45 % Textile waste 21 % To land ll 27 % Electricity 23 % Hazardous waste 16 % To reuse 19 % Propane 20 % Energy waste 8 % Steam 7 % Mixed waste to land ll 7 % District heat, bio gas and oil 5 % Others* 6 % The only largest waste fraction is*cardboard and paper, metals, plastic and biowaste sand and sludge from mats.Waste kg 42 % 2 541 282 16 % Sand and sludge Hazardous waste 959 514 Textile waste to energy Energy waste 706 442 12 % Mixed waste to landfill 513 254 8% Textile waste to landfill 446 122 7% Textile wste for recycling 347 535 6% Cardboard and paper 247 226 4% Metals Plastic 176 960 3% Bio waste 134 920 2% Total waste, kg 25 326 0,4 % 0,3 % 19 846 6 118 427 Hazardous waste comes from industrial wiper wash and wastewater treatment plants. Textile waste 2014 2015 2016 660 881 673 654 776 273 Textile waste, kg 481 021 530 145 524 930 Finland 1 141 902 1 203 799 1 301 203 Europe and Asia Total 2014 2015 2016 100 % 100 % 100 % Textile waste recovery rate, % Finland 38 % 34 % 31 % Europe and Asia 74 % 71 % 73 % Total40

ENVIRONMENT / SAFETYGreenhouse gas emissions, tCO2e 2014 2015 2016 Direct greenhouse gas emissions (scope 1) 15 245 14 608 15 670 Energy 7 324 7 604 7 863 3 528 1 389 natural gas 373 propane 12 308 15 177 oil 1 911 2 184 15 011 Indirect greenhouse gas emissions (scope 2) 2 399 1 350 2 459 electricity 1 350 steam 3 551 4 782 district heating 12 460 13 368 4 358 Other indirect greenhouse gas emissions (scope 3) 58 726 60 462 13 279 business travel 60 363 transportation of textiles TotalTransport kilometers (km/kg)Year 1000 km Delivery Trunk transportation Total km/kg2012 27611 0,17 0,0114 0,18152013 28667 0,1686 0,0109 0,17952014 30691 0,1813 0,0113 0,19262015 32698 0,1885 0,0113 0,19982016 35421 0,1913 0,0105 0,2018Delivery and trunk transportation emissions per kilo of textiles* Year CO2 g/kg CO g/kg HC g/kg NOX g/kg Particles g/kg 2012 79,5 0,16 0,13 0,46 0,01 2013 78,4 0,15 0,13 0,45 0,01 2014 78,2 0,2 0,18 0,41 0,01 2015 80,9 0,21 0,19 0,42 0,01 2016 75,7 0,11 0,19 0,23 0,01 *Using emission coefficients of three-year-old vehicles. The coefficients take into account that only half of the maximum capacity is used because of theempty space above the roll container. Transport emissions have been calculated according to the unit emissions of VTT’s system for traffic emissions.Safety observations We want to add the amount of safety observations. Amount of observations, numbers Observations per person 2014 2015 2016 Vision 2020 783 745 1133 3,5 0,26 0,23 0,32 New target set in 2016. 41

FINANCES Turnover, M euro 2012 2013 2014 2015 2016 Growth, % 288,0 303,2 301,3 302,0 323,2 Net profit, M euro Net profit,% 9,8 5,3 -0,6 0,2 7,0 Return on investment, % 19,3 30,2 23,3 19,1 14,8 Equity ratio, % 6,7 10,0 6,3 4,6 Quick ratio 16,7 24,3 7,7 15,9 11,9 77,4 79,9 19,7 80,0 78,8 2,6 81,5 3,1 2,7 2,9 3,3 We aim to keep equity ratio over 60%. Direct economic value generated and distributed, t€ 2014 2015 2016 301 290 301 959 323 170 Turnover from customers Financial income 750 867 2 751 Grants and subsidies received 0 0 0 Other income Income received 308 1 862 587 302 348 304 688 326 508 Raw material and product purchases Energy -61 538 -65 333 -76 139 Subcontracting services -13 484 -12 070 -12 784 Other purchases from suppliers -43 979 -44 086 -46 314 Direct economical value after supplier compensation -45 419 -46 441 -53 973 137 928 136 758 137 298 Salaries and compensation to personnel Taxes and social fees to authorities -68 779 -71 584 -77 946 Direct economical value for financiers -24 994 -25 647 -27 247 44 155 39 527 32 105 Interest to financial institutions Dividends to shareholders -829 -639 -583 Direct economical value for investments -9 890 -13 201 -10 191 and development efforts 33 436 25 687 21 331 Purchases 2016, t€ 80 75 46 54 Products 23% 70 34 Subcontractor services 14% 60 Energy 4% 50 13 Other goods and services 11% 40 Investments 11% 30 20 10 042

GRI GRI1 Statement from the CEO PageOrganizational profile 73-9 Lindström: size, business and ownership10 Employees 27; 3812 Lindström’s supply chain 22-23 3415 - 16 External principles and initiatives and membership of associations 8-9Identified Material Aspects and Boundary 12-15; 3517 - 23 Defining report content; material aspectsStakeholder Engagement 4324 - 27 Lindström’s stakeholders and engagement 37Report Profile 3428 - 33 About this report and contact informationGovernance Lindström Group governance structure 8-9; 3634 30Ethics and Integrity 32; 42 1856 Values and codes of ethicsSustainability Management 16 39DMA Sustainability management 39Economic Responsibility 39 20-21DMA Management approach 39EC1 Direct economic value generated and distributed 20-21 40EC8 Indirect economic impacts 39Environment 39DMA Management approach 40EN1 Materials used 18-21EN3 Energy consumption within the organization 26EN5 Energy intensity 38 25; 38EN6 Reduction of energy consumption 28-29EN8 Water consumption 27; 37-38 22-23EN10 Water recycling and reuseEN15-17 Greenhouse gas emissions (scopes 1-3) 22-23EN18 Greenhouse gas emissions intensity 22-23EN22 Water dischargeEN23 Waste by type and disposal method 15; 24 24EN27 Mitigation of environmental impacts of products and services 14Labour Practices and Decent Work Management approachDMALA1 Employee turnoverLA6 Injuries, occupational diseases and lost days absenteeismLA10 Programs for skills management and lifelong learningLA12 Composition of governance bodies and breakdown of employees per employee categoryLA14 Suppliers screened using labor practices criteriaSocietySO9 Suppliers screened using criteria for impacts on societyHuman RightsHR10 Suppliers screened using human rights criteriaProduct responsibility PR1 Product and service categories for which health and safety impacts are assessedPR3 Required product and service information and labelingPR5 Surveys measuring customer satisfaction 43

Lindström Group´s quality, environmental, health and safety policy Sustainability is one of Lindström’s values. Carrying responsibility for finances, the environment, personnel and purchasing makes Lindström a reliable, stable partner for customers. Dialogue with customers and continuous development of operations ensure that services meet customer needs and are produced responsibly. The Group’s quality, environmental, • We create and sustain occupational health and safety policy outlines safety culture for our personnel the principles that are applied to to work safe and stay healthy on all management and Lindström’s leisure time. Our goal is zero acci- operations. Lindström’s values steer dents and occupational diseases. decision-making in daily operations: Profitable growth, Long-term cus- • Our facilities serve as an example of tomer relationships, Responsibility, our services, safe and efficient work Enthusiasm and joy of learning. environment and facility manage- ment. Our commitments: Lindström Group employees and service representatives are obliged to • In all our operations we promote act upon this Quality, Environmental, economical, ecological and social Health and Safety Policy. development and respect the human rights of people who are affected by our activities. • We comply with relevant laws and regulations in all areas of our operations. • Our preventive risk management ensures continuity of service, improvement of environmental protection and working conditions that promote health and safety. • We continuously improve our op- erations and empower all our em- ployees to suggest and implement improvements. Process of contin- uous improvement is documented and available to all employees. • We ensure induction and continu- ous competence development of our employees • We train our personnel to under- stand quality, environmental, health and safety impacts of their tasks and act in responsible way. • We have open interaction with our business partners in quality, environmental, health and safety issues. We require our suppliers to act according to Lindström Code of Conduct.44

Code of Conduct for Lindström Group andits suppliersThis Code of Conduct defines the • to prohibit behaviour including management system according tobasic requirements set on Lindström gestures, language and physical ISO 14001 or equivalentGroup (Lindström Oy and its subsidi- contact, that is sexual, coercive,aries) later Lindström and its suppli- threatening, abusive or exploitative Supply chainers of goods and services concerning • to use the best efforts to promotetheir responsibilities towards their • to provide fair remuneration and tostakeholders and the environment. guarantee the applicable national among its suppliers complianceLindström reserves the right to make statutory minimum wage with this Code of Conductreasonable changes to the require- • to comply with the principles of nonments of this Code of Conduct in case • to comply with the maximum num- discrimination with regard to suppli-Lindström own compliance policy is ber of working hours laid down in er selection and treatmentrevised. Lindström expects in such a the applicable lawscase the supplier to accept the madereasonable changes. • to recognize, as far as legally pos- sible, the right of free associationLindström personnel and suppliers of employees and to neither favouragrees herewith: nor discriminate against members of employee organizations or trade unions.Legal compliance Prohibition of child labour • to employ no workers under the age• to comply with the laws of the applicable legal system(s) of resp. of 15 or, in those countries subject country to the developing country exception of the ILO Convention 138, to em-Prohibition of corruption and ploy no workers under the age of 14.bribery Health and safety of employees• to tolerate no form of and not to • to take responsibility for the health engage in any form of corruption or bribery, including payment or other and safety of its employees form of benefit conferred on any government official for the purpose • to control hazards and take the best of influencing decision making in reasonably possible precautionary violation of law. • measures against accidents andRespect for the basic human occupational diseasesrights of employees • to provide training and ensure that• to promote equal opportunities employees are educated in health for and treatment of its employees and safety issues irrespective of skin colour, race, nationality, social back ground, dis- • to set up or to use an occupational abilities, sexual orientation, political health and safety management or religious conviction, sex or age. system according to OHSAS 18001 or equivalent• to respect the personal dignity, privacy and rights of each individual Environmental protection • to act in accordance with the appli-• to refuse to employ or to make anyone to work against his will cable statutory and international standards regarding environmental• to refuse to tolerate any unaccept- protection able treatment of employees, such as mental cruelty, sexual harass- • to minimize environmental pollution ment or discrimination and make continuous improve- ments in environmental protection • to set up or use environmental 45

Contact Parent Company and Head Office Comforta Group Lindström Oy POB 29 (Hermannin Rantatie 8) 00581 Helsinki Tel. 020 111 600 www.lindstromgroup.com [email protected] Subsidiaries ZAO Lindström, Russia Lindström (Suzhou) co. Ltd, China Head Office Lindström Oü, Estonia EOOD Lindström, Bulgaria Comforta Oy Lindström SIA, Latvia Lindström Services India Private POB 47 Lindström Kft, Hungary Limited, India (Hermannin rantatie 8) Lindström s.r.o., Czech Republic Lindström Tekstil Hizmetleri Ticaret 00580 Helsinki Lindström s.r.o., Slovakia Limited Şirketi, Turkey t. 020 111 605 Lindström UAB, Lithuania FLLC Lindström, Belarus Lindström d.o.o., Slovenia Lindström d.o.o., Croatia Comforta AB, Sweden Lindström OOO, Russia Lindström, Kazakstan Lindström Ltd, UK Lindström, Serbia Quickly Tvättcentral Ab, Finland Lindström GmbH, Germany Lindstöm, Korea Lindström Services AB, Sweden Prodem SIA, Latvia Comforta OU, Estonia Lindström Sp.z.o.o., Poland Talp Alj, Hungary Lindström S.R.L., Romania Enviro Wipes UK Limited, UK Comforta also operates in Russia TOV Lindström, Ukraine under the name ZAO Lindström. Corporate responsibility reporting project group Harri Puputti, Senior Vice President, Quality Minna Gentz, Senior Vice President, Human Resources Minttu Marila, HR Coordinator Petri Vapola, CFO Sini Rajala, Area Manager, Technology Risto Pyhältö, Director, Strategic Sourcing Anna-Kaisa Huttunen, Vice President, Business Concept Development Sirpa Laine, Director, Communications and Demand Generation Tarja Hämäläinen, Manager, Corporate Communications Inka Saxholm, Manager, Brand & Marketing Communications Production: Merja Jaskara, Kaisa Kurittu, Alina Sukhomlina Report orders: [email protected] 46

Lindström services Workwear Mats Hotel textiles Restaurant Personal Industrial wipers Hygiene products textiles protectiveBelarus equipmentBulgariaChinaCroatiaCzech RepublicEstoniaFinlandGermanyHungaryIndiaKazakhstanLatviaLithuaniaPolandRomaniaRussiaSerbiaSlovak RepublicSloveniaSouth KoreaSwedenTurkeyUKUkraine 47

Lindström Group We at Lindström take care of people at their work. Our easy and smoothly adaptable rental services enhance safety, hygiene and customer experience. We are a responsible corporate citizen and an engaging employer of over 3000 people in Europe and Asia. Our vision is to be a solid, half a billion euro company achieving excellent customer experiences with engaged employees. www.lindstromgroup.com LINDSTRÖM OY Hermannin rantatie 8 / POB 29 00581 Helsinki tel. +35820 111 600 [email protected] www.lindstromgroup.com48