1 KONE Annual Review 2025
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Annual Review 2025
2 KONE Annual Review 2025
Contents
KONE in brief
3
Board of Directors’ Report 9
Shares and shareholders 18
Key figures and financial development
30
Sustainability Statement 33
Consolidated financial statements 89
Consolidated statement of income
89
Consolidated statement of comprehensive income 89
Consolidated statement of financial position 90
Consolidated statement of changes in equity
91
Consolidated statement of cash flows 92
Notes to the consolidated financial statements 93
1.
Basis of preparation
93
2. Financial performance 96
3. Net working capital 106
4.
Acquisitions and capital expenditure
113
5. Capital structure 113
6. Other notes 135
Parent company financial statements 141
Board of Directors’ dividend proposal and
signatures
159
Auditor’s reports 160
Corporate Governance Statement
170
Investor information 181
KONE as a company | KONE in brief
3 KONE Annual Review 2025
KONE in brief
We are a global leader in the elevator and escalator industry, making
people’s journeys safe, convenient, and reliable with smart and
sustainable People Flow®.
Founded in Finland in
1910
, we have
been in business for more than a
century
Sales approximately
EUR 11.2 billion in 2025
We move 2 billion
people every day
~154,000 new elevators and
escalators ordered in 2025
~1,800,000 equipment in KONE’s
service base
>60,000 employees representing
158 different nationalities
~600,000 customers
Operations in close to 70 countries,
and authorized distributors and agents
in close to 60 countries
10 manufacturing units and 7 R&D
units in seven countries
We work with >40,000 suppliers
KONE as a company | Key figures
4 KONE Annual Review 2025
Key figures
Sales by Area
Sales by business
25 %
(25 %)
40 %
(38 %)
15 %
(14 %)
19 %
(23 %)
Americas Europe APMEA Greater China
1-12/2025 (1-12/2024)
1–12/2025
1–12/2024
Change
Change at
comparable
exchange rates
Orders received MEUR
9,087.4
8,758.9
3.8%
6.8%
Order book MEUR
8,804.3
9,058.6
-2.8%
4.5%
Sales MEUR
11,245.2
11,098.4
1.3%
4.0%
Operating income MEUR
1,336.2
1,249.0
7.0%
Operating income margin %
11.9
11.3
Adjusted EBIT ¹ MEUR
1,369.3
1,303.0
5.1%
Adjusted EBIT margin ¹ %
12.2
11.7
Income before tax MEUR
1,326.8
1,254.1
5.8%
Net income MEUR
991.9
961.0
3.2%
Basic earnings per share EUR
1.89
1.84
3.0%
Cash flow from operations (before financing items and
taxes) MEUR
1,761.3
1,589.3
Interest-bearing net debt MEUR
-699.8
-831.2
Equity ratio %
39.9
39.8
Return on equity %
34.7
33.8
Net working capital (including financing items and taxes) MEUR
-797.6
-827.2
Gearing %
-24.8
-28.7
1
KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In 2025,
items affecting comparability amounted to EUR 33 million consisting of costs related to the separation of KONE Door Business under its own legal and operative
structure and restructuring costs. In the comparison period, items affecting comparability amounted to EUR 54 million including EUR 36 million restructuring
costs and EUR 18 million expensed development costs as a result of redirecting development activities in alignment with KONE's new strategy.
36 %
(41 %)
42 %
(41%)
21 %
(19 %)
New Building Solutions Service Modernization
1-12/2025 (1-12/2024)
KONE as a company | Key figures
5 KONE Annual Review 2025
Orders received
1
(MEUR) Sales (MEUR) Adjusted EBIT (MEUR, %)
1
Orders received do not include
Service contracts
Cash flow
2
(MEUR) Earnings per share (EUR) Dividend per class B share
(EUR)
2
Cash flow from operations before
financing items and taxes
3
Board’s proposal
8,578
8,759
9,087
2023 2024 2025
10,952
11,098
11,245
2023 2024 2025
1,248
1,303
1,369
11.4%
11.7%
12.2%
2023 2024 2025
1,485
1,589
1,761
2023 2024 2025
1.79
1.84
1.89
2023 2024 2025
1.75
1.80 1.80
2023 2024 2025 ³
Adjusted EBIT
Adjusted EBIT margi
n
KONE as a company | KONE’s strategy
6 KONE Annual Review 2025
KONE’s strategy and
business model
In a world where cities are constantly evolving and more
and more people choose to live in them, we at KONE
stand with one clear aim: to shape the future of cities. We
make urban life more vibrant and livable. And we do it by
enabling safe, sustainable, and effortless people flow for
all. We help cities leave a positive mark on the planet - for
the next century and beyond. We shape the future of
cities.
KONE’s business model
KONE provides value for customers during the whole life
cycle of the building.
In New Building Solutions, KONE offers innovative,
intelligent and sustainable elevators, escalators,
automatic building doors and integrated access control
solutions to deliver the best people flow experience. In
Service, we ensure the safety and availability of the
equipment in operation. In Modernization we offer
solutions for aging equipment ranging from the
replacement of components to full replacements.
The key growth drivers of New Building Solutions are
urbanization and changing demographics. New Building
Solutions deliveries are the main growth driver of Service
business as the majority of units delivered will end up in
KONE’s service base. Digitalization also contributes to
Service by increasing customer stickiness. In addition,
KONE also maintains other manufacturers’ equipment.
The main growth drivers for Modernization are the
aging installed base and increased requirements for
efficient people flow, safety, energy efficiency and
sustainability. Having a strong service base is crucial for
the growth in Modernization, and modernizing equipment
outside the service base also contributes to the growth in
Service.
KONE’s business model is capital light in nature. Our
working capital is negative and we operate with advance
payments in all of our businesses and across all areas. We
work extensively with component suppliers to
complement our own manufacturing capacity. Service
business is very stable due to high requirements for
safety and reliability. Customer relationships are also
typically long and stable (~90% annual retention rate).
New Building Solutions follows construction cycles, while
Modernization needs are stable by nature but decision-
making can be influenced by sentiment.
KONE’s strategy for 2025–2030: ‘Rise’
KONE’s ambition is to lead the industry. This means we
want to be the #1 choice for our employees and
customers, lead in innovation and sustainability, and lead
in growth and profitability. To reach this ambition, KONE
will focus on four strategic shifts:
Accelerate Digital
We will fundamentally transform how we do service. With
this, we will provide our customers the best experience
with real-time information, immediate responses, and full
transparency leading to less call-outs, less entrapments
and better uptime.
Achievements in 2025: We reached over 40% connectivity
in our service base and accelerated the deployment of
digital tools in field service operations, marking important
progress to transform the way we do service.
Drive Modernization
With close to 10 million aging elevators and escalators
globally, we will drive modernization to help customers
update and upgrade their equipment for better
sustainability, user experience, safety and accessibility.
Achievements in 2025: We delivered double-digit growth
in Modernization, making especially good progress in
end-to-end process industrialization and driving partial
modernization forward.
Win Residential
We will win in residential, the industry’s largest segment,
by developing an affordable, fit-for-purpose offering with
the right service capability to meet the specific needs of
residential customers, and by selling and delivering
efficiently.
Achievements in 2025: We advanced in our strategy by
enhancing offering development and improving its cost
competitiveness, resulting in expanding the addressed
markets and driving market share gains.
Cut Carbon
We reduce carbon emissions across the full lifecycle of
our solutions by improving material efficiency and
enhancing energy performance. These measures enable
our customers to lower both embodied and operational
carbon in their projects.
KONE as a company | KONE’s strategy
7 KONE Annual Review 2025
Achievements in 2025: Nearly two thirds of our deliveries
were equipped with regenerative drive technology,
resulting in measurable reductions in energy consumption
during use and supporting customers in progressing
toward their climate targets.
Strengthening our core
In addition to these four strategic shifts, we are
strengthening our core, where our people have a crucial
role in how we work together with our customers. With
improved processes and courage, speed, and simplicity,
we want to be the easiest company to work for and work
with.
Achievements in 2025: We strengthened customer focus,
leadership enablement and business performance at the
company’s regional levels through full‑potential plans,
weekly performance routines, analytics‑driven process
simplification and best practice sharing.
Financial targets
KONE has set the following mid-term financial targets to
be achieved by the end of 2027:
Growth: Mid-single-digit annual sales growth
Profitability: Adjusted EBIT margin of 13–14%
In 2025, KONE’s sales grew by 4.0% at comparable
exchange rates. The adjusted EBIT margin was 12.2%,
reflecting an improvement of 45 basis points from 2024.
KONE’s long-term financial targets are:
Growth: Faster than the market
Profitability: To reach an EBIT margin of 16%
Cash flow: Improved working capital rotation
KONE as a company | KONE’s strategy
8 KONE Annual Review 2025
Board of Directors’ Report | Operating environment
9 KONE Annual Review 2025
Board of Directors’ Report
KONE’s operating environment
Regional differences in demand trends were visible in the
global New Building Solutions market during 2025. In
North America, trade policy impacts were visible early in
the year, but activity rebounded towards the summer and
continued on a healthy level throughout the rest of the
year. In Europe, the market grew slightly. Weak activity in
the Nordics was offset by growth elsewhere, particularly
in Southern Europe. In Asia-Pacific, Middle East and
Africa, activity grew clearly, supported by strong growth
in India and in the Middle East. In China, activity declined
significantly due to the property market downturn.
The Service market developed positively with growth
across all regions. Modernization growth was strong
globally, supported by the aging of equipment and the
demand for improved energy efficiency.
Intense competition impacted the New Building
Solutions pricing environment in China, while elsewhere
pricing was more stable. In the Service and Modernization
markets, the pricing environment was more favorable.
New Building Solutions
market in units
1–12/2025
Service market
in units
1–12/2025
Modernization market
in monetary value
1–12/2025
Total Market -- + +++
North America + + ++
Europe + + ++
Asia-Pacific, Middle East and Africa ++ ++ +++
Greater China --- + +++
The table represents the development of the operating environment compared to the corresponding period last year.
--- Significant decline (>10%), -- Clear decline (5–10%), - Slight decline (<5%), Stable,
+ Slight growth (<5%), ++ Clear growth (5–10%), +++ Significant growth (>10%)
Board of Directors’ Report | Financial development
10 KONE Annual Review 2025
Orders received and order book
Orders received grew by 3.8% as compared to January–
December 2024 and totaled EUR 9,087.4 million. At
comparable exchange rates, KONE’s orders received grew
by 6.8%.
At comparable rates, orders received in New Building
Solutions grew slightly with stable development in the
volume business and significant growth in major projects.
In Modernization, orders received grew significantly.
Orders grew significantly in the volume business and
grew significantly in major projects.
In the first quarter, the margin of orders received was
slightly down driven by China, with more stable
development elsewhere. From the second quarter
onwards, the order margin was stable year-on-year.
KONE’s orders received in New Building Solutions in
elevator and escalator units amounted to approximately
154,000 units (2024: approximately 159,000).
Orders received in the Americas Area grew
significantly at comparable rates as compared to
January–December 2024. New Building Solutions orders
grew significantly and Modernization orders grew clearly
in the Area.
Orders received in the Europe Area grew clearly at
comparable exchange rates as compared to January–
December 2024. New Building Solutions orders grew
slightly and Modernization orders grew clearly in the Area.
Orders received in the Asia-Pacific, Middle East and
Africa (APMEA) Area grew significantly at comparable
rates as compared to January–December 2024. New
Building Solutions orders grew significantly and
Modernization orders grew significantly in the Area.
Orders received in Greater China Area declined
significantly at comparable rates as compared to
January–December 2024. New Building Solutions orders
declined clearly in units and declined significantly in
monetary value. Modernization orders grew significantly
in the Area.
The order book declined by 2.8% compared to the end
of December 2024 and stood at a strong level of EUR
8,804.3 million at the end of the reporting period. At
comparable rates, the order book grew by 4.5%.
The order book margin continued to be at a healthy
level. Customer cancellations were at a very low level.
MEUR 1–12/2025
1–12/2024
Change
Change at
comparable
exchange rates
Orders received 9,087.4
8,758.9
3.8%
6.8%
Order book
8,804.3
9,058.6
-
2.8%
4.5%
– – – Significant decline (>10%), – – Clear decline (5–10%), – Slight decline (<5%), Stable,
+ Slight growth (<5%) , ++ Clear growth (5–10%), +++ Significant growth (>10%)
New Building Solutions
orders
Modernization orders
Total orders
Americas
+++ ++
+++
Europe
+ ++
++
Asia-Pacific, Middle East and Africa
+++ +++
+++
Greater China
--- +++
---
In monetary value at comparable exchange rates
Orders received consist predominantly of New Building Solutions and Modernization orders. Service contracts are not included in orders received, but
the figure includes orders related to the Service business, such as repairs.
Board of Directors’ Report | Financial development
11 KONE Annual Review 2025
Sales
KONE’s sales grew by 1.3% as compared to January–
December 2024, and totaled EUR 11,245.2 million. At
comparable exchange rates, KONE’s sales grew by 4.0%.
Growth (at comparable exchange rates) in Service and
Modernization more than compensated for the decline in
New Building Solutions.
New Building Solutions sales declined by 5.9% at
comparable exchange rates. Service sales grew by 7.6%
at comparable exchange rates, thanks to service base
growth (including some inorganic growth), growth in
service repairs, improved pricing and continued
momentum in value-added services. Modernization sales
grew by 17.4% at comparable exchange rates, with
double-digit growth in all areas.
KONE’s elevator and escalator service base continued
to grow and consisted of approximately 1.8 million units at
the end of 2025 (well over 1.7 million units at the end of
2024).
The growth of the service base was driven, in
particular, by a continued good level of conversions of
new equipment deliveries to the service base. Bolt-on
acquisitions contributed positively to the growth. In 2025,
the balance of service contracts that were won from or
lost to competition was slightly negative outside China. In
China, competition balance was adversely affected by
actions taken to drive Service business performance.
The largest individual countries in terms of sales were
the United States (21%), China (18%), Germany (8%) and
France (6%).
In the Americas Area, sales grew by 3.1% and totaled
EUR 2,812.1 million. At comparable exchange rates, sales
grew by 7.5%. New Building Solutions sales declined
slightly, Service sales grew significantly and
Modernization sales grew significantly in the Area.
Sales in the Europe Area grew by 6.9% and totaled
EUR 4,524.4 million. At comparable exchange rates, sales
grew by 6.6%. New Building Solutions sales were stable,
Service sales grew clearly and Modernization sales grew
significantly in the Area.
In the Asia-Pacific, Middle East and Africa (APMEA)
Area, sales grew by 8.3% and totaled EUR 1,742.7 million.
At comparable exchange rates, sales grew by 15.0%. New
Building Solutions sales grew significantly. Service sales
grew significantly and Modernization sales grew
significantly in the Area.
Sales in the Greater China Area declined by 14.3% and
totaled EUR 2,166.0 million. At comparable exchange
rates, sales declined by 11.1%. New Building Solutions
sales declined significantly, Service sales were stable and
Modernization sales grew significantly in the Area.
Sales by business,
MEUR 1–12/2025
1–12/2024
Change
Change at
comparable
exchange rates
New Building Solutions 4,097.7
4,506.9
-9.1%
-5.9 %
Service 4,753.6
4,503.6
5.6%
7.6 %
Modernization 2,394.0
2,088.0
14.7%
17.4 %
Total 11,245.2
11,098.4
1.3 %
4.0 %
– – – Significant decline (>10%), – – Clear decline (5–10%), – Slight decline (<5%), Stable,
+ Slight growth (<5%), ++ Clear growth (5–10%), +++ Significant growth (>10%)
New Building Solutions sales Service sales
Modernization sales
Americas
- +++
+++
Europe
stable
++
+++
Asia-Pacific, Middle
East and Africa
+++ +++
+++
Greater China
---
stable
+++
In monetary value at comparable exchange rates.
Sales by Area,
MEUR 1–12/2025
1–12/2024
Change
Change at
comparable
exchange rates
Americas 2,812.1
2,727.1
3.1%
7.5%
Europe 4,524.4
4,233.8
6.9%
6.6%
APMEA 1,742.7
1,609.3
8.3%
15.0 %
Greater China 2,166.0
2,528.2
-14.3%
-11.1 %
Total 11,245.2
11,098.4
1.3 %
4.0 %
Board of Directors’ Report | Financial development
12 KONE Annual Review 2025
Financial result
KONE’s operating income (EBIT) was EUR 1,336.2 million
or 11.9% of sales. Adjusted EBIT was EUR 1,369.3 million
or 12.2% of sales. Profitability improved thanks to a
favorable business mix. This offset the continued margin
pressure in the Chinese new equipment market and
increased investments into R&D and strategic growth
areas.
In January–December 2025, items affecting
comparability amounted to EUR 33 million consisting of
costs related to the separation of KONE Door Business
under its own legal and operative structure and
restructuring costs.
In the comparison period, items affecting
comparability amounted to EUR 54 million including EUR
36 million restructuring costs and EUR 18 million
expensed development costs as a result of redirecting
development activities in alignment with KONE's new
strategy.
With comparable exchange rates, the translation
impact on operating income for the comparison period
was EUR -23.0 million.
KONE’s income before taxes was EUR 1,326.8 million.
Taxes totaled EUR 334.8 (293.1) million. This represents
an effective tax rate of 25.2% for the full financial year.
The effective tax rate from the operations for the financial
year 2025 was 23.4% excluding one-off items related to
legal entity restructurings. Net income for the period was
EUR 991.9 million.
Basic earnings per share was EUR 1.89.
Cash flow and financial position
KONE’s financial position was strong at the end of
December 2025.
In January–December 2025 cash flow from operations
(before financing items and taxes) increased to EUR
1,761.3 million.
Net working capital (including financing items and
taxes) was EUR -797.6 million at the end of December
2025. Net working capital increased moderately
compared to the beginning of the year. Foreign exchange
rates had an approximately EUR 60 million negative
impact on the net working capital. At comparable
exchange rates, net working capital improved moderately.
Interest-bearing net debt was EUR -699.8 million at
the end of December 2025. KONE’s cash and cash
equivalents together with current deposits and loan
receivables were EUR 1,708.9 (Dec 31, 2024: 1,799.0)
million at the end of the reporting period. Interest-bearing
liabilities were EUR 1,028.3 (Dec 31, 2024: 987.1) million,
including a pension liability of EUR 158.7 (Dec 31, 2024:
141.4) million and lease liabilities of EUR 455.5 (Dec 31,
2024: 432.6) million. Additionally, KONE had an asset on
employee benefits amounting to EUR 13.9 (Dec 31, 2024:
15.0) million. Gearing was -24.8% and the equity ratio was
39.9% at the end of December 2025.
Equity per share was EUR 5.40
1–12/2025
1–12/2024
Operating income MEUR
1,336.2
1,249.0
Operating income margin %
11.9
11.3
Adjusted EBIT MEUR
1,369.3
1,303.0
Adjusted EBIT margin %
12.2
11.7
Income before taxes MEUR
1,326.8
1,254.1
Net income MEUR
991.9
961.0
Basic earnings per share EUR
1.89
1.84
1
–
12/2025
1
–
12/2024
Cash flow from operations (before financing
items and taxes) MEUR
1,761.3
1,589.3
Net working capital (including financing items
and taxes) MEUR
-797.6
-827.2
Interest-bearing net debt MEUR
-699.8
-831.2
Gearing
%
-
24.8
-
28.7
Equity ratio %
39.9
39.8
Equity per share EUR
5.40
5.54
Board of Directors’ Report | Financial development
13 KONE Annual Review 2025
Capital expenditure and
acquisitions
KONE’s capital expenditure and acquisitions totaled EUR
495.8 million in January–December 2025. Capital
expenditure excluding acquisitions is mainly related to
manufacturing and R&D facilities, IT licenses, connectivity
devices, as well as tools and equipment in R&D. Capital
expenditure on leases consists mainly of maintenance
vehicles and office facilities.
Acquisitions totaled EUR 117.7 million in January–
December 2025. KONE completed several service-related
acquisitions predominantly in Europe.
Research and development
KONE’s R&D activities focus on developing smart and
sustainable solutions that respond to future needs. KONE
supports its customers in achieving their sustainability
goals throughout the building lifecycle and develops a
variety of partnerships to further enhance its customer-
focused solutions. Research and development
expenditure totaled EUR 233.9 million, representing 2.1%
of sales in January–December 2025. R&D expenditure
includes the development of new products and service
concepts as well as further development of existing
solutions and services.
During 2025, KONE launched the next-generation
elevator MonoSpace 4, which features fewer and lighter
components. KONE also continued the roll-out of
KONE MonoSpace 100 DX, a cost-competitive solution for
the low-rise market. At the end of December, the share of
connected elevators in KONE’s service base amounted to
40%. The company also continued the rapid roll out of
Dynamic Maintenance Planning to increase field
productivity, with almost 30 countries onboarded during
2025.
KONE supports sustainable and green buildings
through an energy-efficient and innovative offering, the
use of functional and sustainable materials, as well as a
transparent documentation of the environmental impact
of its products. KONE has a wide range of best-in-class
energy performance references for its products in various
building types, market areas, and product specifications.
Currently, KONE has a total of 41 best-in-class energy
efficiency references for elevator and escalator platforms
according to the international ISO 25745 standard for the
energy performance of lifts, escalators and moving walks.
During 2025, KONE published five externally verified
Environmental Product Declarations (EPDs) (2024: six),
bringing the total to 24 (2024: 27). KONE also released
three Health Product Declarations (HPDs), increasing the
total to eight (2024: six), and had a total of four Product
Environmental Passports (PEPs) (2024: six). Further
information on KONEs certification can be found on
kone.com.
KONE has, during 2025, been recognized with the
design awards presented in the table.
MEUR 1–12/2025
1–12/2024
On fixed assets 153.9
164.3
On lease agreements 224.1
232.7
On acquisitions 117.7
125.6
Total 495.8
522.5
1–12/2025
1–12/2024
R&D expenditure MEUR
233.9
203.6
As percentage of sales %
2.1
1.8
Board of Directors’ Report | Financial development
14 KONE Annual Review 2025
Award KONE’s solution
Red Dot Award winner for Brands
and Communication Design 2025
KONE Flow
Design System,
Ecosystem of
interactions
A unique, multi-platform framework that unifies the
brand experience across physical and digital
touchpoints into one cohesive journey, considering
every step as people navigate urban landscapes
Red Dot Award winner for Brands
and Communication Design 2025
The Beat of
KONE
A dashboard showcasing real-time data from KONE-
connected equipment in a dynamic and engaging
format tailored for lobbies, showrooms, and keynote
presentations
ICONIC Award Winner and
Red Dot winner for Interior Design
Elements Category
KONE Entrance Programmable guiding light for elevator doorways,
using animated colors to support intuitive
wayfinding and smooth people flow in tall buildings
Red Dot winner for Sustainable
Design
KONE Interact
30
Destination operating panel that produces
significantly less CO2 emissions compared
to comparative models
American Architecture
Award 2025, Best Tall Building
Americas CTBUH Award of
Excellence 2025 and 2025 Green
Good Design Award-Chicago
Athenaeum
KONE Lane KONE supported the award-winning 1900 Lawrence
building in Denver with its KONE Lane entrance
system, which uses 90% less material than
conventional solutions, significantly reducing
environmental impact
Board of Directors’ Report | Financial development
15 KONE Annual Review 2025
Sustainability recognitions
One of KONE’s key strategic ambitions is to lead the
industry in sustainability. To reach this ambition, KONE
has defined Cut Carbon as one of its four strategic shifts
to drive customer value and differentiation.
KONE has received external recognition for its efforts
to conduct business in a sustainable way.
Sustainability recognitions in 2025 KONE’s score Industry performance
Corporate Knights’ 2026 Global 100 Most
Sustainable Companies list
54
th
place
Recognition of KONE’s strong global leadership in
sustainability and its portfolio of high-performing
solutions and products
CDP 2025 Climate change list A
13
th
consecutive year
, KONE is among the few
companies that have achieved an ‘A’ out of nearly
25,000 companies scored
EcoVadis 2025 Gold Top 2% of all assessed companies
World Business Council for Sustainable
Development (WBCSD)
Updated
membership
criteria
Featured as best practice example in WBCSD’s
Reporting Matters 2025 for clear CSRD and DMA
disclosure alignment
Sustainalytics ESG Risk Rating Report 20.1
Improved medium risk rating (23.9 in previous full
update in 2024)
China Green Spot Award Award
Recognition of KONE innovations and technology
pioneering of Regenerative Drive Technology
UN Global Compact Communication on
Progress (CoP)
Updated
membership
criteria
KONE continues to support the UN’s Sustainable
Development Goals (SDGs) through the update
CoP
CDP Supplier Engagement Assessment
2024
A
Among the leading companies in Supply Chain
engagement on climate issues
Clean200 list (by Corporate Knights and
California-based shareholder advocates
As You Sow)
80th place Only elevator and escalator company on the list
MSCI AA
KONE is a leader in the industrial machinery
industry
ISS B- Prime status in the industry
Financial Times’ Europe’s best employers
2025’ list
426th place
Highest ranking of all elevator and escalator
companies on the list
Fortune China ESG Impact List On list Only elevator and escalator company on the list
Financial Times' and Statista's Europe's
Climate Leaders list
70.6 points Highest scoring elevator and escalator company
TIME & Statista World’s Most Sustainable
Companies 2025
180
th
place Highest scoring elevator and escalator company
Board of Directors’ Report | Personnel
16 KONE Annual Review 2025
Personnel
Personnel total turnover rate was 12.2% (11,5%) during
2025. Employee costs for the reporting period totaled
EUR 4,091 (3,907) million. The geographical distribution of
KONE employees was 12% (12%) in the Americas, 34%
(33%) in Europe, 20% (19%) in Asia-Pacific, Middle East
and Africa, and 33% (36%) in Greater China. The number
of employees is presented as full-time equivalents.
1–12/2025
1–12/2024
Average number of employees 64,294
64,072
Number of employees at the end of period 64,978
64,663
Americas 8,021
7,970
Europe 22,119
21,346
APMEA 13,138
12,383
Greater China 21,701
22,964
Board of Directors’ Report | Changes in the Executive Board
17 KONE Annual Review 2025
Changes in the Executive Board
On February 5, 2025, KONE announced two appointments
to the Executive Board.
Nicolas Alchal was appointed Executive Vice
President, Commercial & Operations as of April 1, 2025.
He continues to be part of the KONE Executive Board,
reporting to Philippe Delorme, President and CEO. Nicolas
succeeds Axel Berkling who decided to step down from
his position as Executive Vice President. Axel continued to
serve the company as an Executive Advisor until the end
of August 2025.
Kaori Uehigashi was appointed Executive Vice
President, Strategy & Transformation as of early May
2025. She continues to be a member of the Executive
Board, reporting to Philippe Delorme, having served as the
interim leader for the Strategy & Transformation
organization since January 2024.
On June 3, 2025, KONE announced the appointment of
Michelle Wen as Executive Vice President, Purchasing and
member of the Executive Board as of August 1, 2025.
Other events
In 2007, a decision was issued by the European
Commission concerning alleged local anticompetitive
practices before early 2004 in Germany, Luxembourg,
Belgium and the Netherlands by leading elevator and
escalator companies, including KONE’s local subsidiaries.
As previously announced by KONE, a number of civil
damage claims by certain companies and public entities
relating to the 2007 decision are pending in related
countries. The claims have been made against various
companies concerned by the decision, including certain
KONE companies. All claims are independent and are
progressing procedurally at different stages. The total
capital amount claimed jointly and severally from all of the
defendants together was EUR 30.5 million at the end of
December 2025 (December 31,2024: EUR 55 million).
KONE’s position is that the claims are without merit. No
provision has been made.
As part of the strategic review announced in 2024, the
separation of its Door Business into its own legal and
operative structure has been largely completed during
2025. The strategic review is ongoing, and any related
actions are subject to local legal requirements and
consultation of employee representatives. In 2025, the
KONE Door Business accounted for approximately 2% of
KONE’s revenue.
Board of Directors’ Report | Shares and shareholders
18 KONE Annual Review 2025
Shares and share capital
Share capital and market capitalization Dec 31, 2025
Dec 31, 2024
Number of class B shares 453,187,148
453,187,148
Number of class A shares 76,208,712
76,208,712
Total shares 529,395,860
529,395,860
Treasury shares 11,537,238
11,867,752
Share capital, EUR 66,174,483
66,174,483
Market capitalization, MEUR ¹ 31,362
24,324
1
Market capitalization is calculated on the basis of both the listed B shares and the unlisted A shares excluding treasury shares. Class A shares are
valued at the closing price of the class B shares at the end of the reporting period.
KONE has two classes of shares: A and B. Only B-
class shares are listed on the Nasdaq Helsinki Ltd.
Trading of the KONE class B shares started on
January 2, 1967.
Each KONE class A share is assigned one vote, as is
each block of 10 class B shares, with the provision
that each shareholder is entitled to at least one
vote.
At the end of December 2025, the Group had
11,537,238 class B treasury shares. The treasury
shares represent 2.5 % of the total number of class
B shares. This corresponds to 0.9 % of the total
voting rights.
In addition to the Nasdaq Helsinki Ltd., KONE’s class
B share is traded also on various alternative trading
platforms.
The trading code of KONE class B share on Nasdaq
Helsinki Ltd. is KNEBV and the ISIN code is
FI0009013403.
Treasury shares 1–12/2025
Treasury shares at the beginning of the period 11,867,752
Changes in treasury shares during the period -330,514
Treasury shares at the end of the period 11,537,238
Shares traded on Nasdaq Helsinki
1
–
12/2025
1
–
12/2024
Shares traded on the Nasdaq Helsinki Ltd.,
millions
128.6
128.6
139.4
Average daily trading volume
514,342
514,342
555,351
Volume-weighted average share price EUR
54.36
54.36
47.16
Highest share notation EUR
60.82
60.82
54.78
Lowest share notation EUR
45.42
45.42
41.33
Share notation at the end of the period EUR
60.56
60.56
47.00
Board of Directors’ Report | Shares and shareholders
19 KONE Annual Review 2025
KONE class B share OMX Helsinki Cap Index
Dividend policy
KONE has not adopted a specific dividend policy. In
the case of a dividend distribution, the dividend paid
on the class B share is higher than that on the class A
share.
The difference between the dividends is at minimum
one (1) percent and at maximum two-and-a-half (2.5)
percent, calculated from the accounting par value of
the share. The accounting par value of the share is
EUR 0.125.
KONE class B share price development, EUR
0
10
20
30
40
50
60
70
80
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
KONE class B dividend per share, EUR
Dividend Extraordinary dividend *
Board’s proposal for the 2025 dividend
0.00
0.50
1.00
1.50
2.00
2.50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025*
Board of Directors’ report | Shares and shareholders
20 KONE Annual Review 2025
Shareholders
Class A shares, %
Class B shares, %
92.6% Companies
7.4% Non-profit organizations
53.3% Foreign / nominee registered shareholders
13.6% Companies
12.0% Financial institutions and insurance companies
11.7% Individuals
4.2% Public institutions
5.1% Non-profit organizations
Number of shares
Number of
owners
Percentage of
owners
Number of
shares
Percentage of
shares
1–10 24,150
23.0 %
127,902
0.0 %
11–100 46,370
44.2 %
2,063,589
0.4 %
101–1,000 27,744
26.5 %
9,364,698
1.8 %
1,001–10,000 5,913
5.6 %
15,714,501
3.0 %
10,001–100,000 602
0.6 %
15,184,455
2.9 %
100,001– 87
0.1 %
486,898,451
92.0 %
Total 104,866
100.0 %
529,353,596
100.0 %
Shares which have not been transferred to the paperless
book entry system
42,264
0.0 %
Total 529,395,860
100.0 %
The number of registered shareholders was 106,659
at the beginning of the review period and 104,866 at
its end. The number of private households holding
shares totaled 100,306 at the end of the period, which
corresponds to approximately 11.7% of the listed B
shares. At the end of December 2025, a total of 53.3%
of the B shares were owned by nominee-registered
and non-Finnish investors.
Board of Directors’ report | Shares and shareholders
21 KONE Annual Review 2025
Major shareholders on December 31,
2025
More information on the shareholdings of
KONE’s Board of Directors and Executive Board
on December 31, 2025 and changes in
shareholding during January 1–December 31,
2025 are available in the Corporate
Governance Statement.
A-series
B-series
Total
% of shares
% of votes
1
Herlin Antti 70,561,608
53,063,850
123,625,458
23.4 %
62.4 %
Holding Manutas Oy
1
54,284,592
42,805,254
97,089,846
18.3 %
48.2 %
Security Trading Oy
2
16,277,016
8,560,303
24,837,319
4.7 %
14.1 %
Herlin Antti 0
1,698,293
1,698,293
0.3 %
0.1 %
2
Polttina Oy 0
17,271,928
17,271,928
3.3 %
1.4 %
3
KONE Foundation 5,647,104
9,859,632
15,506,736
2.9 %
5.5 %
4
Wipunen Varainhallinta Oy 0
14,000,000
14,000,000
2.6 %
1.2 %
5
Torpanmaa Oy 0
10,000,000
10,000,000
1.9 %
0.8 %
6
Ilmarinen Mutual Pension Insurance Company 0
6,905,091
6,905,091
1.3 %
0.6 %
7
Varma Mutual Pension Insurance Company 0
6,605,394
6,605,394
1.2 %
0.5 %
8
Blåberg Olli Edvard 0
5,520,000
5,520,000
1.0 %
0.5 %
9
Riikantorppa Oy 0
4,900,000
4,900,000
0.9 %
0.4 %
10
Elo Mutual Pension Insurance Company 0
3,200,000
3,200,000
0.6 %
0.3 %
10 largest shareholders total 76,208,712
131,325,895
207,534,607
39.2 %
73.5 %
Foreign / nominee registered shareholders
3
0
241,718,312
241,718,312
45.7 %
19.9 %
Repurchased own shares 0
11,537,238
11,537,238
2.2 %
0.9 %
Others 0
68,605,703
68,605,703
13.0 %
5.6 %
Total 76,208,712
453,187,148
529,395,860
100.0 %
100.0 %
The list of ten major shareholders includes the major shareholders with a Finnish book-entry account.
1 Antti Herlin’s ownership of Holding Manutas Oy represents 1.1% of the shares and 12.8% of the voting rights. Together with the ownership of Security Trading Oy in
which he exercises controlling power, his ownership represents 51.0% of the shares and 62.7% of the voting rights.
2 Antti Herlin’s ownership of Security Trading Oy represents 56.4% of the shares and 57.5% of the voting rights. Together with the ownership of his children, Antti Herlin’s
ownership in Security Trading Oy represents 99.9% of the shares and 99.8% of the voting rights.
3 Foreign ownership including foreign-owned shares registered by Finnish nominees.
Board of Directors’ report | Shares and shareholders
22 KONE Annual Review 2025
Share-related key figures 2025
2024
2023
2022
2021
Basic earnings per share EUR
1.89
1.84
1.79
1.50
1.96
Diluted earnings per share EUR
1.89
1.84
1.79
1.49
1.96
Equity per share EUR
5.40
5.54
5.32
5.49
6.13
Dividend per class B share ¹ EUR
1.80
1.80
1.75
1.75
2.10
Dividend per class A share ¹ EUR
1.7975
1.7975
1.7475
1.7475
2.0950
Dividend per earnings, class B share ¹ %
95.1
97.9
97.8
117.0
107.3
Dividend per earnings, class A share ¹ %
95.0
97.8
97.6
116.8
107.0
Effective dividend yield, class B share ¹ %
2.97
3.8
3.9
3.6
3.3
Price per earnings, class B share EUR
32.00
25.57
25.23
32.29
32.20
Market value of class B share, average EUR
54.34
47.16
45.79
46.56
65.44
Market value of class B share at end of period EUR
60.56
47.00
45.16
48.30
63.04
Market capitalization at the end of period ² MEUR
31,362
24,324
23,358
24,975
32,652
Number of class A shares at the end of period, (1,000s) 76,209
76,209
76,209
76,209
76,209
Weighted average number of class A shares, (1,000s) 76,209
76,209
76,209
76,209
76,209
Number of class B shares at the end of period, (1,000s) ² 441,650
441,319
441,028
440,881
441,754
Weighted average number of class B shares, (1,000s) ³ 441,601
441,292
441,008
441,632
441,847
Weighted average number of shares, (1,000s) ³ 519,087
518,014
517,595
517,841
518,055
¹ Board's proposal of dividends.
² Reduced by the number of repurchased own shares. Class A shares are valued at the closing price of the class B shares.
³ Adjusted for share issue and share option and share-based incentive plan dilution, and reduced by the number of repurchased own shares
Key figures per share
Board of Directors’ report | Shares and shareholders
23 KONE Annual Review 2025
Flagging notifications
During January–December 2025, BlackRock, Inc.
announced nine notices in accordance with the Finnish
Securities Market Act Chapter 9, Section 5. The notices
have been released as stock exchange releases and are
available on KONE Corporation’s internet pages at
www.kone.com. According to the latest notification, the
total number of KONE Corporation shares owned by
BlackRock, Inc. and its funds amounted to 5.57% of the
total number of shares of KONE Corporation on July 1,
2025.
Transaction date Shareholder Threshold
January 29, 2025 BlackRock, Inc. Below 5%
January 30, 2025 BlackRock, Inc. Above 5%
January 31, 2025 BlackRock, Inc. Below 5%
February 24, 2025 BlackRock, Inc. Above 5%
February 27, 2025 BlackRock, Inc. Above 5%
February 28, 2025 BlackRock, Inc. Below 5%
March 10, 2025 BlackRock, Inc. Above 5%
March 12, 2025 BlackRock, Inc. Above 5%
July 1, 2025 BlackRock, Inc. Above 5%
Board of Directors’ Report | Share-based incentive plans
24 KONE Annual Review 2025
Share-based incentive plans
KONE has two separate share-based incentive structures,
a performance-based long-term incentive plan structure
and a restricted share plan structure.
The performance-based long-term incentive plan
structure emphasizes profitable growth and sustainability.
It consists of annually commencing individual share plans,
each with a three-year rolling performance period. The
plans vest and are delivered in one portion after the three
years, based on accumulated outcomes of each
performance year. If the participant's employment or
service relationship with KONE Group terminates before
the end of the performance period, the participant, as a
rule, forfeits the share award without compensation.
The target group and targets for each annually
commencing long-term incentive plan as well as the
rewards are decided upon annually by the Board. As a
part of the long-term incentive plan for the top
management, a long-term target for their ownership has
been set. For the Executive Board members, the long-
term ownership target is that the members have an
ownership of KONE shares corresponding to at least five
years’ annual base salary. For other selected top
management positions, the ownership target is at least
two years’ base salary.
For the performance period 2025-2027, the plan
includes approximately 600 top leaders and selected key
employees, including the President and CEO and
members of the Executive Board. The performance
criteria applied to the year 2025 are based on adjusted
EBIT margin, sales growth (jointly 80%) and a
sustainability index (20%), which measures progress in
diversity, carbon emission reduction, safety performance
and cybersecurity.
The restricted share plan structure serves as a
complementary incentive structure used as a commitment
instrument for retention and recruitment purposes for top
management (excluding the President and CEO) and other
selected key employees. The restricted share plan
structure does not have a performance condition. Each
annually commencing plan has a commitment period of up
to three years, after which the potential share awards will
be paid to the participant, provided that their employment
or service relationship with KONE Group is in force at the
time of payment.
Pursuant to the share-based incentive plan rules, the
potential rewards are settled as a combination of KONE
class B shares and/or cash when the criteria set in the
terms and conditions for the plan are met. The number of
shares earned by participants under the share-based
incentive plans are determined on a gross basis with a
deduction for taxes made when applicable before the
delivery of the shares to the participants. Share-based
incentive plans are classified as equity settled
transactions.
Board of Directors’ Report | Decisions of the Annual General Meeting
25 KONE Annual Review 2025
Decisions of the Annual General Meeting
KONE Corporation's Annual General Meeting was held in
Helsinki on March 5, 2025.
The meeting approved the financial statements and
the Remuneration Report and discharged the Members of
the Board and the President and CEO from liability for the
financial period January 1-December 31, 2024.
The number of Members of the Board of Directors was
confirmed as nine. Matti Alahuhta, Susan Duinhoven,
Marika Fredriksson, Antti Herlin, Iiris Herlin, Jussi Herlin,
Timo Ihamuotila and Krishna Mikkilineni were re-elected
as Members of the Board. Banmali Agrawala was elected
as a new Member of the Board.
At its meeting held after the Annual General Meeting,
on March 5, 2025, the Board of Directors of KONE
Corporation elected from among its members Antti Herlin
as its Chairman and Jussi Herlin as Vice Chair.
Marika Fredriksson was elected as Chair of the Audit
Committee and Susan Duinhoven, Jussi Herlin and Timo
Ihamuotila as members of the Audit Committee. Marika
Fredriksson, Susan Duinhoven and Timo Ihamuotila are
independent of both the company and of significant
shareholders.
Jussi Herlin was elected as Chair of the Nomination
and Compensation Committee and Matti Alahuhta, Susan
Duinhoven and Antti Herlin as members of the Nomination
and Compensation Committee. Matti Alahuhta and Susan
Duinhoven are independent of both the company and of
significant shareholders.
The General Meeting confirmed an annual
compensation of EUR 220,000 for the Chairman of the
Board, EUR 125,000 for the Vice Chairman and EUR
110,000 for Board Members. Of the annual compensation
40 percent will be paid in class B shares of KONE
Corporation and the rest in cash. In addition, the General
Meeting confirmed a separate annual compensation to the
members of the board committees: Chairman of the Audit
Committee: EUR 20,000 and members of the Audit
Committee: EUR 10,000, and Chairman of the Nomination
and Compensation Committee: EUR 20,000 and members
of the Nomination and Compensation Committee: EUR
10,000. The annual compensation of the members of the
board committees is paid in cash. In addition, it was
resolved that annual compensation is not paid to a Board
Member who is employed by the company.
The General Meeting approved the authorization of
the Board of Directors to repurchase KONE's own shares.
Altogether no more than 52,930,000 shares may be
repurchased, of which no more than 7,620,000 may be
class A shares and 45,310,000 class B shares. The
authorization will be valid until the conclusion of the
following Annual General Meeting, however, at the latest
until 30 June 2026.
Furthermore, the General Meeting authorized the
Board of Directors to decide on the issuance of shares as
well as the issuance of options and other special rights
entitling to shares referred to in Chapter 10, Section 1 of
the Limited Liability Companies Act. The number of shares
to be issued based on this authorization shall not exceed
7,620,000 class A shares and 45,310,000 class B shares.
The Board of Directors was authorized to decide on all the
conditions of the issuance of shares and of special rights
entitling to shares. The authorization concerns both the
issuance of new shares as well as the transfer of treasury
shares either for consideration or without consideration.
The issuance of shares and of special rights entitling to
shares may be carried out in deviation from the
shareholders' pre-emptive rights (directed issue), if there
is a weighty financial reason for the company, such as
using shares as consideration in potential corporate
acquisitions or other arrangements related to the
company's business, financing investments, developing
the company's capital structure, or implementing the
company's incentive schemes. The authorization will be
valid until the conclusion of the following Annual General
Meeting, however, at the latest until 30 June 2026.
Audit firm Ernst & Young Oy was re-elected as the
auditor for the term 2025. Ernst & Young Oy was also
elected as the company's sustainability reporting assurer
for the term 2025.
Board of Directors’ Report | Most significant risks
26 KONE Annual Review 2025
Most significant risks
KONE is exposed to risks that may arise from its
operations or changes in the operating environment. The
most significant risk factors described below can
potentially have an adverse effect on KONE’s business
operations and financial position and, as a result, on the
value of the company. Other risks, which are currently
either unknown or considered immaterial to KONE may,
however, become material in the future. Further
information on KONE’s risk management is available in
KONE’s Annual Review.
Strategic risks
The demand for KONE’s products and services and the
competitive environment are impacted by the general
economic cycles and especially the level of activity within
the construction industry. The uncertain economic
outlook, and its impacts on construction markets,
represents a risk to KONE’s business and profitability. This
applies especially to China, where market activity remains
subdued. In 2025, KONE’s New Building Solutions sales in
China continued to decline.
Geopolitical risks and tensions, export restrictions and
tariffs, business environment unpredictability and
disruptions in global supply chains may impact KONE’s
main markets and expose KONE to business disruptions
and profitability risks. In addition to the level of market
demand, the competitiveness of KONE’s offering is a key
driver for growth and profitability. A failure to anticipate or
address changes in customer requirements and in
competitors’ offerings, ecosystems and business models
or in the regulatory environment could result in a
deterioration of the competitiveness of KONE’s offering.
Furthermore, structural changes in the competitive
landscape of the elevator and escalator industry, such as
increased competition and customer consolidation, could
affect market dynamics and KONE’s market share.
Operational risks
With business models and ways of working changing in
the elevator and escalator industry, KONE needs new
organizational capabilities, as well as new competencies
and talent on the individual employee level in different
fields, such as in digitalization. At the same time, labor
scarcity and competition over talent, such as skilled field
workforce, is increasing. Securing the needed resources
and their competence management is critical. A failure to
develop, retain and attract the required capabilities could
have an adverse impact on KONE’s growth and
profitability.
The majority of components used in KONE’s supply
chain are sourced from external suppliers, a significant
number of which are located in China. KONE also
subcontracts a significant amount of installation activity,
outsources certain business support processes and works
with partners in e.g. digital services and logistics. This
may expose KONE to supply chain and logistics
constraints, risks related to component and
subcontracted labor availability and cost as well as to
continuity risk in partnerships. During 2025, tariffs and
export restrictions imposed on specific materials and
components had some negative impacts on KONE’s
operations and financial result. A failure to secure the
needed materials, components or resources, or quality
issues within these, could cause business disruptions,
rescheduling of orders and cost increases. Labor
availability constraints may also impact progress at
construction sites and performance of maintenance and
repair services.
As one of the leading companies in the industry, KONE
has a strong brand and reputation. Issues that impact the
company’s reputation or brand could affect KONE’s
business and financial performance. Such reputational
risks could materialize in the case of e.g. safety,
cybersecurity or ethical and regulatory non-compliance
incidents, major delivery issues or product or service
quality issues.
Hazard, security and incidental risks
The operations of KONE, its suppliers and customers,
utilize information technology extensively and KONE’s
business is dependent on the quality, integrity, availability
and confidentiality of information. Thus, KONE is exposed
to IT disruption and cybersecurity risks, as operational
information systems and products may be vulnerable to
interruption, loss or manipulation of data, or malfunctions
which can result in disruptions in processes and
equipment availability. Continued geopolitical tensions
and escalations may lead to cyber, hybrid and even
conventional attacks causing local and global
disturbances that may impact KONE, our customers and
our suppliers. A breach of sensitive employee or customer
data may result in significant penalties as well as
reputational damage. Such incidents could be caused by,
including but not limited to, cyber-crime, cyber-attacks,
ransomware, information theft, fraud, or inadvertent
actions from our employees and vendors. Physical
damage caused by fire, extreme weather conditions,
natural catastrophes or terrorism, among other things,
could also cause business interruption for KONE or its
suppliers. KONE places very strong emphasis on
employee safety. Certain worker groups, especially those
working on construction or maintenance sites, face
elevated exposure to occupational hazards due to the
nature of their work.
Financial risks
The majority of KONE’s sales and financial results are
denominated in currencies other than the euro, which
exposes KONE to risks arising from foreign exchange rate
fluctuations. KONE is also exposed to counterparty risks
related to financial institutions, through the significant
amounts of liquid funds deposited with financial
Board of Directors’ Report | Most significant risks
27 KONE Annual Review 2025
institutions, in the form of financial investments and in
derivatives. Additionally, KONE is exposed to risks related
to liquidity and payment discipline of its customers, which
may impact cash flow or lead to credit losses, especially
in China. Significant changes in local financial or taxation
regulation could also have an impact on KONE’s financial
performance, liquidity, and cash flow. For further
information on financial risks, please refer to the notes to
the consolidated financial statements.
Board of Directors’ Report | Most significant risks
28 KONE Annual Review 2025
Risks
Mitigation actions
Weakening of the global economic environment
KONE strives to continuously develop its competitiveness in all regions and businesses, maintaining its resilient business model. KONE
has a wide geographic presence, global manufacturing capabilities and supply network, as well as a balanced business mix with a high
share of Service and Modernization business.
Escalation of geopolitical conflicts and trade disruptions
impacting the competitiveness of KONE’s supply chain,
leading to increased costs or causing potential disruptions
KONE is continuously working on mitigating any potential delays of its products and critical components. KONE actively monitors the
development of the applicable and relevant regulations, policies and trade rules, prepares for alternative scenarios and evaluates the
competitiveness and viability of KONE’s supply chain and sourcing channels. KONE is taking actions to mitigate the impact of tariffs, for
example by applying for tariff exemptions when applicable and reflecting tariff impacts into pricing. KONE also applies increased
scrutiny over business operations that may be affected by international trade restrictions or other geopolitical actions.
Changes in the competitive landscape, customer
requirements or competitors’ offerings impacting KONE’s
competitiveness
KONE aims to be the industry leader with its competitive offering by investing in research and development and by taking an open
innovation approach. KONE also closely follows emerging industry and market trends and actively monitors opportunities for industry
consolidation.
Non-compliance concerns related to KONE´s business
conduct
KONE's Code of Conduct forms an integral part of KONE’s company culture and is the foundation of its ethical business practices.
Development of comprehensive anti-bribery and corruption measures, compliance risk assessments and localized programs,
compliance trainings and extended compliance screening capabilities are examples of KONE´s preventative measures related to
compliance risks.
A failure to secure and develop the needed organizational
capabilities and competencies
KONE continuously evaluates the skills and competences required for the execution of the selected strategy and develops and/or
acquires these from internal talent pools or externally. KONE also has extensive training programs in place to develop and retain critical
talents.
Risks related to component and subcontracted labor
availability
KONE’s purchasing processes aim to identify critical suppliers and supply categories and implement alternative sources, long-term
agreements, last-buy options and other measures to ensure availability of the supply.
Component and rare-earth element markets are closely monitored, and the situations managed with detailed planning of delivery
execution and active involvement of supply chain partners, among other actions. KONE has also developed multinational subcontractor
pools to ensure subcontractor capacity on a regional level. Subcontractors’ competences and capabilities are monitored and developed
continuously.
Product integrity, safety or quality issues as well as issues
with reputation
To mitigate product risks, KONE has strict quality control processes for product design, supply, manufacturing, installation and
maintenance. In addition, KONE aims for transparent and reliable communication, to prevent reputational risks and to manage potential
incidents. KONE also has stringent corporate governance principles in place.
Interruptions to KONE’s or its suppliers’ operations
KONE actively develops business continuity management capabilities to reduce the impact and likelihood of disruptions within its
supply chain. Furthermore, KONE monitors the operations, business continuity management capabilities, financial strength and
cybersecurity of its key suppliers. In addition, KONE aims to secure the availability of alternative sourcing channels for critical
components and services. KONE also has a global property damage and business interruption insurance program in place.
KONE’s global supply chain helps mitigate the risk of interruptions. KONE has ten manufacturing facilities in seven countries, multiple
distribution centers and a large supplier network across the globe, which helps to mitigate the impacts from potential disruptions in
individual locations or countries.
IT disruptions and cybersecurity risks
KONE’s security policies define controls to safeguard premises, information and information systems which are both in develop
ment
and in operation. KONE works with third-party security service providers and trusted, well-known technology partners to manage the
risks through the control framework.
KONE has implemented a range of mitigation measures, such as resilient architectures, advanced
security monitoring and incident response, supplier risk management and a global cybersecurity awareness program. KONE holds ISO
27001 and IEC 62443 certifications and also has a global cyber insurance program in place.
Financial risks
KONE applies centralized risk management in accordance with the KONE Treasury Policy. More information on financial risk
management can be found in notes 2.4, 3.2 and 5.3 of KONE’s financial statements 2025
Risk management
Board of Directors’ Report | Outlook 2026
29 KONE Annual Review 2025
Market outlook 2026
Activity in the New Building Solutions market is expected
to vary regionally in 2026. The market is expected to
grow slightly in North America and in Europe. In Asia-
Pacific, Middle East and Africa, activity is expected to
grow clearly. In China, the market is expected to decline
clearly.
Modernization markets are expected to grow in all
regions supported by an aging equipment base as well as
the focus on sustainability and adaptability of buildings.
Service markets are expected to grow clearly in Asia-
Pacific, Middle East and Africa and grow slightly in other
regions.
Business outlook 2026
KONE expects its sales to grow 2-6% at comparable
exchange rates in 2026 and its adjusted EBIT margin to
be in the range of 12.3-13.0%.
The negative impact of foreign exchange rates on the
adjusted EBIT margin is expected to be approximately 10
basis points, assuming rates remain at the January 2026
level.
Key drivers for sales growth are the positive outlook
for Service and Modernization and the solid order book.
The declining New Building Solutions market in China is a
headwind.
The key drivers of EBIT margin expansion are sales
growth in Service and Modernization, an increased
contribution from performance initiatives and good
progress in product cost reductions. The challenging New
Building Solutions market in China and continued
inflationary pressure on wages are expected to impact
profitability negatively.
The Board’s proposal for the distribution of
profit
The parent company’s distributable profit on December
31, 2025 is EUR 3,655,182,389.87 of which the net
income for the financial year is EUR 1,376,397,495.16.
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 1.7975 be paid on the
outstanding 76,208,712 class A shares and EUR 1.80 on
the outstanding 441,649,910 class B shares, resulting in a
total amount of proposed dividend of EUR
931,954,997.82. The Board of Directors further proposes
that the distributable profits, EUR 2,723,227,392.05, be
retained and carried forward.
The Board proposes that the dividends be payable
from March 16, 2026. All the shares existing on the
dividend record date are entitled to dividend for the year
2025 except for the treasury shares held by the parent
company.
Annual General Meeting 2026
KONE Corporation’s Annual General Meeting will be held
on Thursday March 5, 2026, at 11.00 a.m. at Finlandia
Hall, Mannerheimintie 13 E, in Helsinki, Finland.
Helsinki, February 5, 2026
KONE Corporation’s Board of Directors
Market outlook 2026
North
America
Europe
Asia
-
Pacific, Middle
East and Africa
China
New Building Solutions
in units
+
+
++
--
Service
in units
+
+
++
+
Modernization
in monetary value
+++
++
+++
+++
--- Significant decline (>10%), -- Clear decline (5–10%), - Slight decline (<5%), Stable,
+ Slight growth (<5%), ++ Clear growth (5–10%), +++ Significant growth (>10%)
Board of Directors’ Report | Key figures and financial development
30 KONE Annual Review 2025
Alternative performance measure
KONE reports an alternative performance measure,
adjusted EBIT, to enhance the comparability of business
performance between reporting periods. Adjusted EBIT is
calculated by excluding from EBIT items affecting
comparability such as significant restructuring costs and
income and expenses incurred outside the ordinary
course of business of KONE.
In 2025, items affecting comparability amounted to
EUR 33 million consisting of costs related to the
separation of KONE Door Business under its own legal and
operative structure and restructuring costs.
In 2024, items affecting comparability amounted to
EUR 54 million including EUR 36 million restructuring
costs and EUR 18 million expensed development costs as
a result of redirecting development activities in alignment
with KONE's new strategy.
In 2023, items affecting comparability included
restructuring costs and a positive effect recognized on
completion of the sale of operations in Russia.
In 2022, the comparison period, items affecting
comparability included a charge for the impairment of
assets and recognition of provisions for commitments in
Russia and Ukraine as well as restructuring costs.
In 2021 items affecting comparability related to
restructuring measures.
Key figures and financial development
Consolidated statement of income 2025
2024
2023
2022
2021
Sales MEUR
11,245
11,098
10,952
10,907
10,514
Sales outside Finland MEUR
11,024
10,889
10,736
10,698
10,342
Operating income MEUR
1,336
1,249
1,200
1,031
1,295
As percentage of sales %
11.9
11.3
11.0
9.5
12.3
Adjusted EBIT ¹ MEUR
1,369
1,303
1,248
1,077
1,310
As percentage of sales ¹ %
12.2
11.7
11.4
9.9
12.5
Income before taxes MEUR
1,327
1,254
1,206
1,028
1,321
As percentage of sales %
11.8
11.3
11.0
9.4
12.6
Net income MEUR
992
961
932
784
1,023
¹ Items included are presented on section Definitions and calculation of key figures.
Alternative performance measure 2025
2024
2023
2022
2021
Operating income (EBIT) MEUR
1,336
1,249
1,200
1,031
1,295
Operating income margin (EBIT margin) %
11.9
11.3
11.0
9.5
12.3
Items impacting comparability MEUR
33
54
48
45
15
Adjusted EBIT MEUR
1,369
1,303
1,248
1,077
1,310
Adjusted EBIT margin %
12.2
11.7
11.4
9.9
12.5
Board of Directors’ Report | Key figures and financial development
31 KONE Annual Review 2025
Consolidated statement of financial position, MEUR Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Non-current assets 3,371
3,321
2,967
2,781
2,798
Current assets 5,681
5,963
5,764
6,309
6,922
Total equity 2,827
2,893
2,786
2,867
3,199
Non-current liabilities 776
929
658
643
717
Provisions 176
186
197
177
152
Current liabilities 5,273
5,276
5,090
5,404
5,652
Total assets 9,052
9,284
8,731
9,090
9,720
Interest-bearing net debt -700
-831
-1,013
-1,309
-2,164
Assets employed 2,127
2,062
1,773
1,557
1,035
Net working capital -798
-827
-861
-904
-1,468
Other information 2025
2024
2023
2022
2021
Orders received MEUR
9,087
8,759
8,578
9,131
8,853
Order book MEUR
8,804
9,059
8,716
9,026
8,564
Cash flow from operations before financing items
and taxes MEUR
1,761
1,589
1,485
755
1,829
Capital expenditure excl. acquisitions MEUR
378
397
322
209
217
As percentage of sales %
3.4
3.6
2.9
1.9
2.1
Expenditure on research and development MEUR
234
204
185
188
189
As percentage of sales %
2.1
1.8
1.7
1.7
1.8
Average number of employees 64,294
64,072
63,164
63,186
61,698
Number of employees at end of reporting period 64,978
64,663
63,536
63,277
62,720
Employee costs MEUR
4,091
3,907
3,656
3,533
3,222
Key ratios, % 2025
2024
2023
2022
2021
Return on equity 34.7
33.8
33.0
25.9
32.0
Return on capital employed 26.9
27.2
27.8
22.4
26.8
Equity ratio 39.9
39.8
40.9
40.3
41.2
Gearing -24.8
-28.7
-36.4
-45.7
-67.6
Board of Directors’ report | Definitions and calculation of key figures
32 KONE Annual Review 2025
Definitions and calculation of key figures
Basic earnings/share
=
Net income attributable to the shareholders of the
parent company
Share issue and conversion-adjusted weighted
average number of outstanding shares
Equity/share
=
T
otal shareholders’ equity
Number of outstanding shares (issue adjusted)
Dividend/share
=
Dividend payable for the reporting period
Share issue and conversion-adjusted weighted
average number of outstanding shares
Dividend/earnings (%)
=
100 x
D
ividend/share
Earnings/share
Effective dividend yield
(%)
=
100 x
Dividend/share
Price of class B shares at end of reporting period
Price/earnings
=
Price of class B shares at end of reporting period
Earnings/share
Average price
=
Total EUR value of all class B shares traded
Average number of class B shares traded during
the reporting period
Market value of all
outstanding shares
=
The number of outstanding shares (A + B)
¹ at end
of reporting period x the price of class B share at
end of reporting period
¹ Class A shares are valued at the closing price of the class B shares.
Shares traded
=
Number of class B shares traded during the
reporting period
Shares traded (%)
=
100 x
Number of class B shares traded
Weighted average number of class B shares
Average number of
employees
=
The average employee count at the end of
each calendar month during the reporting
period
Return on equity (%)
=
100 x
Net income
Total equity (average during the reporting
period)
Return on capital
employed (%)
=
100 x
Net income + financing expenses
Equity + interest-bearing-debt (average during
the reporting period)
Equity ratio (%)
=
100 x
Total equity
Total assets – advances received and deferred
revenue
Gearing (%)
=
100 x
I
nterest
-
bearing net debt
Total equity
Assets employed
=
Net working capital + goodwill + intangible
assets + tangible assets + investments in
associated companies + shares and other non-
current financial assets
Board of Director’s Report | Sustainability Statement
33 KONE Annual Review 2025
Sustainability Statement
1. General information
1.2 Sustainability reporting
principles
1.2.1 Basis of preparation
This Sustainability Statement is the cornerstone of
KONE’s annual sustainability reporting. It has been
prepared in accordance with the Corporate Sustainability
Reporting Directive (CSRD) and structured around the
European Sustainability Reporting Standards (ESRS), with
the aim of providing transparent and harmonized
information on sustainability topics material to KONE.
The reporting scope is aligned with KONE’s
consolidated financial statements unless otherwise
specified in connection with the disclosed information. In
addition to this Sustainability Statement, KONE publishes
a separate Sustainability Supplement that provides
additional information on specific sustainability matters,
beyond the scope of KONE’s material topics covered by
ESRS, but still relevant to stakeholders.
The sustainability information presented in this
Statement is based on KONE’s double materiality
assessment (DMA), conducted in alignment with ESRS.
Through this assessment, KONE has identified material
sustainability-related impacts, risks, and opportunities
most relevant to its business and stakeholders. KONE’s
value chain encompasses upstream activities from raw
material extraction to component production, its own
operations, and downstream activities related to the use,
disposal, and recycling of its products. As this is KONE’s
second year of reporting in accordance with the CSRD,
certain sustainability information from the comparison
period may not yet be fully comprehensive. Where
comparative information is presented, the same reporting
and calculation methodology have been consistently
applied. Certain material restatements have been made to
previously disclosed sustainability information concerning
climate emissions (E1), reported number of days lost to
work-related injuries (S1) and reported share of KONE
employees working in an ISO certified unit (S1). For
comprehensive information on the scope and impact of
these restatements, see sections 2.2.8 (E1), footnote 7 of
table 35, and section 3.1.2. For detailed information on
emission data, see section 2.2.7.
KONE has mapped its activities against the
Sustainability Accounting Standards Board (SASB)
framework for Electrical and Electronic Equipment,
identifying relevant industry-specific sustainability
metrics. Further details on KONE’s SASB disclosures, as
well as details on climate-related risks and opportunities
in line with the Task Force on Climate-related Financial
Disclosures (TCFD), are available at kone.com.
1.2.2 Sustainability data, management
judgment and uncertainty
KONE’s internal data systems serve as the primary source
for the sustainability data presented in this Statement.
Sustainability data is collected from KONE’s subsidiaries
and operative units, with internal controls in place to
ensure completeness and accuracy. In the absence of
accurate data, the reporting relies on assumptions,
estimates, projections, and management judgment, which
all inherently involve uncertainty. Additional details
regarding uncertainties are provided alongside the
disclosed information.
All financial data is sourced from KONE’s enterprise
resource planning and financial reporting systems, and,
unless otherwise stated is based on the company’s
consolidated and audited financial statements. KONE
follows the time horizons defined by ESRS 1.
1.3 Sustainability governance
1.3.1 Sustainability governance structure
and roles
KONE’s sustainability governance model is structured to
ensure that environmental, social, and ethical business
conduct considerations are embedded into decision-
making, accountability and performance management at
all organizational levels, from strategic oversight to daily
operations. The key governance bodies for sustainability
at KONE include the Board of Directors, the Audit
Committee, the President and CEO and the Executive
Board, as well as the Sustainability Disclosure Board, and
the Safety, Quality and Sustainability Board. Cross-
functional forums further support alignment by bringing
together representatives from business lines and global
functions to share best practices, address challenges,
and coordinate global sustainability priorities.
The Board of Directors holds the overall responsibility
for overseeing the company’s sustainability strategy and
are regularly reviewing sustainability performance,
progress towards targets, regulatory compliance and the
management of sustainability impacts, risks, and
opportunities. The Board members' strong conviction in
the strategic importance of sustainability, together with
the Board’s robust annual review cycle, ensures that
sustainability continues to be prioritized and integrated
into KONE’s business. The Board is well-informed and has
long experience of managing key sustainability matters
relevant to the industry, including climate change
mitigation, health and safety. Furthermore, the Board also
has access to subject matter experts who provide
performance reviews and briefings, including experts
within the Audit Committee and Sustainability Disclosure
Board.
The Board of Directors consists of nine non-executive
members with a gender ratio of 67% male and 33%
female. The Vice Chair of the Board, Jussi Herlin, has a
Board of Director’s Report | Sustainability Statement
34 KONE Annual Review 2025
separate employment contract for his role as Executive
Vice Chair of the Board at KONE. There are no other
separate employment contracts for the members of the
Board of Directors. Of the Board members, 78% are
independent of the Corporation and 67% are independent
from significant shareholders.
The President and CEO is responsible for integrating
the sustainability strategy into the company’s daily
operations. The Executive Board drives the
implementation of the sustainability strategy across all
business units, with each member accountable for
embedding sustainability within their area and ensuring
alignment with company-wide objectives.
KONE’s Global Compliance Committee, comprising of
four Executive Board members, the Corporate Controller
and VP of Global Compliance, supports the Executive
Board in maintaining an effective compliance and ethical
business conduct program, through regular reports and
briefings to the Executive Board, and the Audit
Committee. The Audit Committee monitors compliance
matters, which are reviewed by the Board of Directors at
least annually.
1.3.2 Risk management and internal
controls
KONE’s sustainability reporting is anchored in group-level
principles of risk management and internal control. The
primary objective of risk management is to systematically
identify and evaluate risks and opportunities that may
affect the achievement of sustainability objectives. This
includes assessing the likelihood and potential impact of
these risks and opportunities and determining appropriate
actions to effectively manage them. Internal controls are
designed to ensure the reliability of sustainability
reporting, and controls activities are primarily embedded
within the processes that generate sustainability
information.
KONE acknowledges that manual data collection and
estimations introduce inherent uncertainty into its
sustainability reporting. To mitigate these risks, KONE
applies standardized reporting procedures, supported by
internal controls, detailed guidelines, training, and
validation processes to ensure the completeness and
accuracy of reported information.
KONE’s Global Risk Management function oversees
that comprehensive risk assessments are conducted
throughout the organization, maintaining the integrity and
effectiveness of risk identification, evaluation, and
mitigation processes. These assessments also include the
double materiality assessment (DMA), and are conducted
in collaboration with relevant functions to ensure
systematic identification, prioritization, and treatment of
sustainability-related impacts, risks, and opportunities
(IROs). Prioritization of IROs follows the guidelines set out
in KONE’s Risk Management Policy.
The internal control framework for sustainability
reporting is facilitated by KONE’s Internal Control function.
The internal control framework is rooted in KONE’s values,
the Code of Conduct, and a culture of integrity and high
ethical standards. It is reinforced by committed
leadership, targeted training programs, a positive and
diligent working environment, and the recruitment and
development of competent personnel. Global and local
policies and principles form an integral part of this
framework.
The internal control framework covers relevant
controls including reviews, reconciliations and system
controls. It is embedded into operational processes,
employee responsibilities, and systems. These controls
manage risks associated with the accuracy,
completeness, and timeliness of sustainability reporting.
The framework is continuously updated to reflect changes
in business operations and information systems. Identified
risks, opportunities and control needs are addressed
through KONE’s governance models for sustainability, risk
management, and internal control.
The Executive Board reviews risk assessment
outcomes at least twice a year and agrees on actions and
priorities for risk management. The Executive Board
members are responsible for specific areas and global
functions, owning the key risks and opportunities relevant
to their domains. They are accountable for ensuring
effective risk management, allocating resources, and
delegating responsibilities as needed. Oversight of
sustainability impacts, risks, and opportunities is the
ultimate responsibility of the Board of Directors, with the
President and CEO accountable for implementation and
day-to-day management. This responsibility is further
delegated to specialized committees focused on safety,
quality, sustainability, and global compliance. Updates on
material IROs and other relevant assessments are
presented bi-annually to the Executive Board and the
President and CEO.
The Board of Directors monitors and evaluates the
effectiveness of KONE’s risk management systems as
defined in the Risk Management Policy. The Board
reviews annual updates on material IROs received from
the General Counsel. The Audit Committee oversees the
effectiveness of the internal control environment and
reviews annual updates on internal control findings and
developments.
1.3.3 Sustainability-related performance in
incentive plans
Sustainability performance is embedded in KONE’s long-
term incentive structures. The company’s long-term
incentive plan, annually approved by the Board of
Directors, combines sustainability performance criteria
with profitable growth to reinforce KONE’s sustainability
commitment. Sustainability accounts for 20% of the total
weighting in the plan, with 10% linked to targets for
reducing Scope 1, 2, and 3 carbon emissions, and 10%
linked to diversity and inclusion, safety improvement and
cybersecurity.
1.3.4 Sustainability due diligence
KONE integrates sustainability due diligence into its
governance and strategic framework by aligning to the
Finnish Corporate Governance Code and embedding
sustainability principles across its operations. This
integration is supported by the KONE Global Management
System and group-wide policies, including the
Environmental Policy Statement, Health and Safety Policy
Statement, Human Rights Policy, Code of Conduct, and
the Supplier and Distributor Codes of Conduct. These
policies are detailed under the material sustainability
topics, see sections 2.2.3, 2.3.2, 3.1.2, 3.2.2, 3.3.2, 4.1.2,
and tables 13 and 31.
Board of Director’s Report | Sustainability Statement
35 KONE Annual Review 2025
Stakeholder engagement is a cornerstone of KONE’s
approach, encompassing employees, suppliers, and local
communities. For further details on stakeholder
engagement, see section 1.4.3.
KONE’s sustainability due diligence, is embedded into
the company’s business processes and policies, and
reinforced by continuous assessment and identification of
impacts, risks, and opportunities. These assessments are
reflected throughout this Sustainability Statement in
sections on Material impacts, risks and opportunities,
Policies, Engaging with the affected stakeholders,
Remediating negative impacts, Actions, and Metrics.
Beyond compliance with applicable laws and
regulations, KONE has established internal standards to
uphold high environmental and social performance across
its global operations and value chain. For comprehensive
insights into KONE’s human rights and supplier due
diligence processes, see section 3.2.3.
1.4 Sustainability in operations
1.4.1 Strategy
In 2024, KONE launched its new strategy Rise for 2025–
2030, with sustainability as a core strategic ambition and
a key driver of profitable growth and differentiation. KONE
is strongly committed to delivering the most sustainable
and safe solutions, which enable decarbonization across
building life-cycles and enhance overall sustainability
performance.
Progress toward KONE’s sustainability-related
strategic ambitions is tracked through an internal
Sustainability Index, which includes key performance
indicators relating to climate emission reductions,
diversity and inclusion, safety improvement and
cybersecurity-related performance.
Cut Carbon, one of KONE’s four strategic shifts,
focuses on accelerating emissions reduction across KONE
operations and value chain, while supporting customers in
achieving their climate goals. Through clear strategic
objectives, KONE drives measurable environmental
impact, fosters innovation, and empowers stakeholders.
KONE aims to radically cut emissions by developing
energy-efficient technologies, adopting new low-carbon
materials, co-innovating with suppliers and partners, and
advancing circularity through strategic initiatives.
Digitalization plays a key role in enabling decarbonization
by e.g. reducing unnecessary callouts, introducing remote
services, and enhancing strategic planning of service
operations. Accelerating data automation across
operations and customer interfaces enables timely access
to reliable sustainability data and transparent impact
reporting. The progress of the Cut Carbon strategic shift
is monitored with metrics including value chain emission
reductions, revenue generated from sustainable solutions
and the win rate of sustainable business opportunities.
Other key strategic objectives include:
Optimizing material and resource use, and
enabling circularity in KONE’s solutions and
operations
Extending product lifetime through service,
modernization, digital and connected solutions
Prioritizing safety in all operations
Providing accessible, safe, and convenient
solutions for all end-users
These objectives underpin KONE’s commitment to
sustainable value creation and position KONE to lead in a
dynamic regulatory and market environment.
1.4.2 Business model and value chain
KONE operates a life-cycle business model, delivering
elevators, escalators, building doors, and related smart
solutions and services for buildings and urban
environments throughout their entire lifespan. KONE
creates value by designing, manufacturing, installing,
maintaining, and modernizing equipment to ensure
longevity, safety and efficient operations, thereby
reducing environmental impact, improving people flow
and supporting sustainable urban development. The
offering includes energy-efficient and low-carbon
solutions with high level of digitalization. Digital and
connected solutions, such as KONE 24/7 Connected
Services, enable extended product life-cycles and
improve user experience, safety and uptime. See the
notes to the financial statements for a description of
KONE’s key products and most significant markets.
During 2025, no materials, products or services have
been banned.
KONE’s sustainability efforts are embedded into the
value chain, from responsible sourcing of raw material to
end-of-life. To ensure responsible operations, KONE
requires its supply chain partners to meet strict
sustainability criteria, including ethical sourcing and
negative environmental impact reduction. Collaboration
with customers, partners, and suppliers is central to
KONE’s value creation. Key customer groups include
construction companies, building owners, developers,
facility management companies, and housing
associations, with architects, authorities, and consultants
having a key influence on decision-making.
KONE strategic inputs that are crucial in creating value
for customers, shareholders and society include:
Competent and engaged people and strong
leadership
Innovative, sustainable offering
Global processes and systems
Strategic partnerships and efficient
manufacturing and delivery chain
A strong life-cycle business model with a robust
maintenance base
A solid financial position
Environmentally and socially sustainable
operations
High safety standards and record, and strong
brand reputation
KONE secures these inputs e.g. through strategic
investments and sourcing, supplier management, and risk
mitigation while fostering a culture of innovation and
inclusion to retain and develop talent.
KONE creates value for shareholders through its
capital-light, sustainable business model, which creates
strong and stable cash flow supported by efficient
operations and a solid financial position. Internally, KONE
invests in and strives to ensure employee health and
safety through high standards and practices, a supportive
and innovative culture, diversity and inclusion, and
continuous learning, ensuring access to key talent and
fostering a resilient workforce. For metrics relating to
KONE’s headcount of employees per geographical area,
see section 3.1.
Board of Director’s Report | Sustainability Statement
36 KONE Annual Review 2025
1.4.3 Interests and views of stakeholders
KONE actively engages with key stakeholders including,
but not limited to, customers, shareholders, employees,
suppliers and equipment users, to understand their needs
and expectations, including those related to human rights.
KONE’s key stakeholders, their interests, and KONE’s
engagement with them are summarized in table 02.
The purpose of the engagement and dialogue is to
create a predictable and sustainable business
environment for everyone.
Applicable administrative, management and
supervisory bodies are informed about the insights and
outcomes from stakeholder interactions by the
responsible topic owners and subject matter experts.
Appropriate actions are taken to address material
impacts, including improvements of planning and
management systems. Stakeholder interests are also
taken into account in KONE’s strategy setting process.
Employees and their representatives are involved
through e.g., local safety forums and councils where
health and safety matters are addressed. KONE actively
involves employees in shaping the company, with the
annual Pulse Employee Engagement Survey serving as a
key tool for gathering insights and driving development.
KONE also gathers input from employees, value chain
workers and equipment users through its management
system, which standardizes safety practices across the
company and sets minimum requirements to protect the
health and safety of all individuals interacting with KONE
equipment and operations.
The interests and rights of value chain workers are
considered in strategy and business model primarily
through structured management level discussions.
1.5 Sustainability-related
impacts, risks, and opportunities
1.5.1 Identification and assessment
KONE’s double materiality assessment (DMA) follows a
structured four-phase process: value chain mapping,
impact assessment, financial assessment, and materiality
determination. This process identifies material
sustainability topics and supports strategic decision-
making.
The results are reviewed by the Sustainability
Disclosure Board, consisting of KONE Executive Board
members and other senior leaders. Outcomes are
reported to the Audit Committee of the KONE Board of
Directors. Internal control is ensured through a systematic
assessment methodology and regular reviews by
responsible topic owners and subject matter experts.
KONE completed its first DMA in 2024. In the initial
phase, the company mapped its value chain and identified
key business activities across upstream, own operations,
downstream, and cross-cutting activities. This was done
through interviews with key internal stakeholders.
Geographic locations and external stakeholders affected
by these activities were also identified with special
attention to high-risk regions and functions.
In 2025, KONE conducted a comprehensive review of
its previous double materiality assessment. This included
updates to the impact assessment, financial assessment,
and materiality determination, reflecting strategic
developments and stakeholder feedback. The process
was supported by KONE’s risk management tool, enabling
a systematic and integrated evaluation of sustainability
impacts, risk, and opportunities (IRO) alongside other
business IROs.
KONE’s sustainability IROs were identified and
assessed by a cross-functional group of subject matter
experts. External perspectives were gathered through a
stakeholder materiality survey distributed to customers,
suppliers, investors, analysts, distributors and media.
IROs were assessed using a scale from 1 to 5. Impact
Assessment considered scale, scope, likelihood, and
irremediability (for negative impacts). For potential human
rights impacts, severity was prioritized over likelihood.
Financial Assessment included evaluation of magnitude,
likelihood, and timeframe. See table 01. highlighting the
used scale and rating.
The connections between impacts, dependencies,
risks, and opportunities, were considered during the
identification of IROs, primarily at the subtopic level and in
relation to geographical locations. However, a systematic
cross-referencing of all connections and dependencies
was not conducted. Each prioritized IRO has been
assigned to a risk owner, who delegates responsibility to
relevant individuals. These individuals implement
appropriate actions and report progress back to the risk
owner.
KONE’s DMA provided a comprehensive overview of
the company’s IROs across sustainability topics and value
chain. Topics exceeding defined thresholds were
confirmed as material and prioritized to support KONE’s
strategic sustainability objectives and align with
stakeholder expectations. All mandatory disclosures have
been made in accordance with ESRS. No material entity-
specific IROs were identified.
1.5.2 Material ESRS topics
KONE's material impacts, risks and opportunities are
illustrated in table 03 and illustration 02 and summarized
in a table at the beginning of each material topic
disclosure section. Each summary includes relevant
information on time-horizons, value chain information and
the management actions taken to address the IRO.
Table 01. Used scale and rating
Likelihood of occurrence
Magnitude of
Financial Impact Timeframe
1. Highly unlikely (>0–1%)
1. Nominal
2. Unlikely (>1–10%) 2. Moderate Short (<1 yr)
3. Possible (>10–30%) 3. High Medium (1–5 yrs
4. Likely (>30–60%) 4. Significant Long (>5 yrs)
5. Highly likely (>60–
100%)
5. Critical
Board of Director’s Report | Sustainability Statement
37 KONE Annual Review 2025
and
Illustration 01.
Board of Director’s Report | Sustainability Statement
38 KONE Annual Review 2025
KONE’s material IROs do not currently have significant
impact on its financial position, performance, or cash
flows. Furthermore, there are no identified material risks
or opportunities that would result in a material adjustment
to the carrying amounts of assets or liabilities within the
next annual reporting period.
In 2025, KONE’s strategy and business models
demonstrated resilience in addressing material risks and
impacts, while also capturing the material opportunities
outlined in this report. This resilience was supported by a
well-balanced geographic and business line mix, as well
as a robust supply chain. The conclusion is based on a
qualitative assessment and further validated by KONE’s
achievement of its financial and strategic targets during
the reporting period.
The Board of Directors, which holds overall
responsibility for KONE’s sustainability strategy, also
oversees the management of sustainability impacts, risks
and opportunities. For more information on how
opportunity management is integrated into KONE´s
strategy and management process, see sections 1.4.1 and
1.4.2. KONE’s climate change resilience is further
described in section 2.2.2.
In 2025, material IRO’s were thoroughly considered
throughout strategy implementation by the relevant
operational teams and overseen by the Executive Board
and Board of Directors.
Assessment of Climate Change (E1)
KONE has conducted a comprehensive assessment of its
key greenhouse gas (GHG) emission sources across its
own operations, product portfolio, and value chain,
covering all relevant business activities. The findings
confirm that the majority of emissions originate from the
value chain, primarily due to the long operational lifetime
of KONE’s products. This trend is expected to remain
consistent over time.
To deepen the understanding of climate-related
physical and transition risks and opportunities, KONE’s
climate scenario assessment has drawn on multiple
authoritative sources, including the Intergovernmental
Panel on Climate Change (IPCC) Sixth Assessment Report
– Working Group I, Swiss Re CatNet, and integrated SSP-
RCP scenarios (Shared Socioeconomic Pathways
informed by Representative Concentration Pathways).
This forward-looking analysis supports strategic planning
and risk management by evaluating potential climate
futures and their implications for KONE’s business. Further
details on the scenario analysis, see section 2.2.2.
KONE has assessed climate-related physical hazards
under three different scenarios, using geospatial mapping
of its own and key suppliers’ manufacturing sites and
logistics hubs. Hazards were evaluated based on
likelihood, magnitude, and duration. Risks and
opportunities were analyzed across short (<1 year),
medium (2–5 years), and long-term (>5 years) horizons.
The short-term horizon is aligned with KONE’s annual
target setting and budgeting, whereas the medium-term
links to mid-term financial planning, and the long-term
horizon to the strategic planning period and beyond.
The assessment shows that severe weather events
may pose physical risks to operations and supply chains
and consequently cause business interruptions. While
short-term impacts are low and non-material, risks
increase over time, especially under high-emission
scenarios.
Transition risks and opportunities were identified
through interviews with KONE’s subject matter experts,
considering various climate scenarios, including a Paris-
aligned 1.5°C scenario.
KONE supports its customers in emission reduction by
offering them sustainable solutions that extend equipment
life, are energy efficient, durable, and easy to disassemble
and recycle. Demand is driven by regulation, technology,
and climate goals as well as by technological
advancements in renewable energy, energy efficiency
and materials. KONE’s reputation as a sustainability leader
depends on its ability to offer customers solutions that
meet their needs to mitigate climate change.
Assessment of Resource Use and Circular
Economy (E5)
The identification of IROs related to resource use and
circular economy has been carried out through internal
assessments, supplier audits, and automated tracking of
material flows and waste at a component level. A
significant part of KONE’s business contributes to
resource use and circular economy. Based on the 2025
DMA, this topic has emerged as a new material
opportunity driven by increased use of recycled materials,
modular product design, and extended product life-cycle
through KONE’s modernization offerings. These efforts
support both environmental performance and long-term
business resilience.
Although KONE’s manufacturing units support
resource efficiency and circularity through energy saving
measures, material efficiency, regular waste monitoring,
and reduced landfill waste via recycling and incineration,
they have not been assessed as contributing materially to
this opportunity.
While separate consultations with affected
communities have not been conducted, KONE engages
with relevant stakeholders, such as local authorities, as
part of environmental risk assessments. For further details
on resource use and circular economy, see section 2.3
and KONE’s Supplement Report, which includes
sustainability disclosures beyond the scope of ESRS.
Illustration 02. Identified material topics
Board of Director’s Report | Sustainability Statement
39 KONE Annual Review 2025
Table 02. Stakeholder engagement
Stakeholder
Interest
Channels of dialogue
Assessment method
Customers,
consumers and
end-users
Reliable and safe solutions,
as well as service and
modernization
Competitive pricing, value
Meetings, events, seminars and conferences
Dialogue through solution support
Information shared through company reports, marketing materials, website, and social
media channels
Continuous dialogue through daily interactions, digital solutions, user feedback, social
media channels
Net promoter score
Customer surveys
KONE Compliance Line and Safety Solution
Monitoring feedback
Own workforce
(Employees and
non-employees)
Safe working environment
Well-being
Career development
Fair compensation
Daily interactions
Regular employee performance discussions
Internal channels and forums for company-wide discussions
Training opportunities and innovation tools
Employee engagement survey
Employee performance discussions
Idea management system, innovation tool
KONE Compliance Line and Safety Solution
Investors and
analysts
Sustainable financial
performance and growth
Transparency
Financial and other company reports, stock exchange releases, company website
Events, such as annual general meetings and capital markets days
Investor and analyst meetings
Direct feedback from financial market
representatives
Feedback from the financial community also
through surveys
Suppliers and
subcontractors
(Workers in the
value chain)
Long-term partnerships
Fair business practices
Safe working environment
Continuous one-to-one dialogue with suppliers
Trade fairs, steering group meetings, supplier workshops and an annual supplier day for
selected strategic suppliers
Supplier assessments including audit and an annual supplier excellence certification
program
Annual supplier survey
Supplier quality audit and performance
assessment with the Supplier Maturity
Certification Program
Monitoring of high-risk suppliers
KONE Compliance Line and Safety Solution
Distributors and
agents
(Workers in the
value chain)
Market reach
Efficiency
Logistical expertise
Risk mitigation
Daily interactions, account planning, regular country visits and distributors’ meetings
KONE tools
Reward programs and business development initiatives
Monitoring of sales-related activities and
direct feedback from distributors
KONE Compliance Line and Safety Solution
Partners
Collaboration
Resource sharing
Innovation
Continuous one-to-one dialogue
Developer portal for application programming and interface building
Engaging in co-innovation programs
Industry and innovation events and competitions, such as hackathons
Bi-annual partner information review
Annual partner feedback survey
Feedback from 1-to-1 partner discussions
Media
Content
Engagement
Transparency
Press releases and events, interviews, background briefings and visits
Publications, as well as the company website and social media channels
Monitoring and analyzing media coverage about KONE
Surveys and media analysis
Educational and
research
institutions
Research opportunities
Internships
Knowledge sharing
Partnerships
KONE’s apprentice programs and summer traineeships
KONE is a member of the CEMS global alliance of academic and corporate institutions
Collaborations to provide information about KONE in schools, universities, and other
relevant institutions
Thesis opportunities, recruitment fairs, projects, guest lectures, and research programs
Most attractive workplace surveys, online
tracking
School collaboration and social media
visibility in order to enhance KONE's brand as
an employer and to attract talent
Countries KONE
operates in
Environmental impact
Contribution to local
development
Company website and social media channels
Sustainability surveys and reputation studies
Volunteer work through the KONE Centennial Foundation
Sustainability surveys and reputation studies
KONE Compliance Line and Safety Solution
Board of Director’s Report | Sustainability Statement
40 KONE Annual Review 2025
Assessment of Business Conduct (G1)
KONE identified IROs related to corporate culture and
governance through a comprehensive set of processes,
including third-party due diligence, supplier screenings
and audits, internal assessments and surveys, and local
compliance risk assessments. In addition, reports
received via the Compliance Line contribute to identifying
potential concerns.
Specific functions within the operations as well as
regions, such as Asia-Pacific, the Middle East and Africa,
and Greater China, have been considered in global anti-
bribery and corruption risk assessments due to elevated
risk profiles. These assessments help ensure that
governance-related risks are proactively managed and
that opportunities to strengthen ethical business
practices are identified and acted upon.
For further details on business conduct prevention,
see section 4.1.
1.5.3 Monitoring of non-material
environmental topics
Based on KONE’s DMA, certain sustainability IROs fall
outside the scope of materiality and are therefore not
covered in this sustainability statement.
However, this reporting scope does not limit KONE’s
sustainability ambitions or responsibilities. KONE
continuously monitors and manages relevant IROs to
ensure that emerging issues are identified and addressed
as part of its ongoing commitment to sustainability.
KONE monitors and manages also non-material
environmental impacts through its ISO 14001-certified
environmental management system, as described in
section 2.2.2.
In addition to managing risks within its own operations,
KONE actively monitors environmental risks across its
supply and value chain. These risks are tracked in real
time using automated systems enhanced with geolocation
data, improving visibility and responsiveness.
While KONE has not conducted separate consultations
with affected communities on these topics, it regularly
collaborates with relevant stakeholders, such as local
authorities and NGOs, as part of its environmental risk
Table 03. Results of the Double Materiality Assessment
ESRS Topics Sub-topic Material
IRO
Stage in
Value Chain
E-Environment
E1 Climate change
E1 Climate change adaption Yes R ■■■
E1 Climate change mitigation Yes IR ■□■
E1 Energy Yes I □□■
E2 Pollution
E2 Pollution of air No
E2 Pollution of water No
E2 Pollution of soil No
E2 Pollution of living organisms and food resources No
E2 Substances of concern No
E2 Substances of very high concern No
E2 Microplastics No
E3 Water and
marine resources
E3 Water No
E3 Marine resources No
E4 Biodiversity and
eco-systems
E4 Direct impact drivers of biodiversity loss No
E4 Impacts on the state of species No
E4 Impacts on the extent and condition of ecosystems No
E4 Impacts and dependencies on eco-system services No
E5 Resource use
and circular
economy
E5 Resources inflows, including resource use No
E5 Resource outflows related to products and services Yes O □■□
E5 Waste No
S-Social
S1 Own workforce
S1 Working conditions Yes I □■□
S1 Equal treatment and opportunities for all No
S1 Other work-related rights No
S2 Workers in the
value chain
S2 Working conditions Yes I □■■
S2 Equal treatment and opportunities for all No
S2 Other work-related rights No
S3 Affected
communities
S3 Communities’ economic, social and cultural rights No
S3 Communities’ civil and political rights No
S3 Rights of indigenous peoples No
S4 Consumers and
end-users
S4 Information-related impacts for consumers and/or
end-users
No
S4 Personal safety of consumers and/or end-users Yes IR □□■
S4 Social inclusion of consumers and/or end-users No
G-Governance
G1 Business
conduct
G1 Corporate culture Yes I □■□
G1 Protection of whistleblowers Yes I □■□
G1 Animal welfare No
G1 Political engagement and lobbying activities No
G1 Management of relationships with suppliers
including payment practices
No
G1 Corruption and bribery Yes I □■□
Board of Director’s Report | Sustainability Statement
41 KONE Annual Review 2025
assessments to identify any material IROs. See table 02,
for more on stakeholder engagement.
Assessment of Pollution (E2)
KONE’s highly automated manufacturing systems and
assembly lines do not produce material pollutants into
water or soil. Emissions of nitrogen oxides (NOx), sulfur
oxides (SOx), and volatile organic compounds (VOCs) is
minimal and have not been identified as material within
KONE’s own operations. Similarly, the Service and
Modernization businesses focus on extending equipment
life and reducing embodied carbon through circular
practices and do not generate pollution at material levels.
Pollutants are continuously monitored in accordance with
local environmental permits and regulations.
KONE acknowledges its indirect impact on pollution
through the value chain. While the topic was not deemed
material in the DMA, KONE continues to monitor related
risks, impacts, and opportunities to ensure emerging
developments and stakeholder expectations are
appropriately addressed.
For further details on pollution prevention, see section
2.1.4. and KONE’s Supplement Report, which includes
sustainability disclosures beyond the scope of ESRS.
Assessment of Water and Marine Resources (E3)
Impacts, risks, and opportunities related to water and
marine resources have not been assessed as material for
KONE. Based on water risk assessments, four out of ten
KONE manufacturing units are in regions identified as
having high water stress. However, the impact at these
sites is considered minor, as KONE’s manufacturing
processes require minimal water usage.
KONE acknowledges its indirect impact on water and
marine resources through the value chain and continues
to monitor related risks, impacts, and opportunities to
ensure emerging developments and stakeholder
expectations are appropriately addressed.
For further details, see section 2.1.4 and KONE’s
Supplement Report, which includes sustainability
disclosures beyond the scope of ESRS
Assessment of Biodiversity and Ecosystems (E4)
IROs relating to biodiversity and ecosystems have not
been deemed material for KONE. The company’s own
operations have minimal direct impact, with
manufacturing units located away from biodiversity-
sensitive areas such as UNESCO World Heritage Sites,
Natura 2000 areas or conservation parks.
KONE acknowledges its indirect impact through the
value chain and continues to monitor related risks,
impacts, and opportunities to ensure emerging
developments and stakeholder expectations are
appropriately addressed.
For further details, see section 2.1.4 and KONE’s
Supplement Report, which includes sustainability
disclosures beyond the scope of ESRS.
Board of Director’s Report | Sustainability Statement
42 KONE Annual Review 2025
1.6 Appendices
Table 04. Data points that derive from other EU legislation
ESRS 2 GOV-1 21 (d) Board's gender diversity x x 1.3.1
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent x 1.3.1
ESRS 2 GOV-4 30 Statement on due diligence x 1.3.4
ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities x x x Not material
ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production x x Not material
ESRS 2 SBM
-
1
40 (d) iii
Involvement in activities related to controversial weapons
x
x
Not material
ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of
tobacco
x Not material
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 x 2.2.4 Emission reduction
roadmap
ESRS E1
-
1
16 (g)
Undertakings excluded from Paris
-
aligned Benchmarks
x
x
2.2.8 EU Paris
-
aligned
Benchmark
ESRS E1-4 34 GHG emission reduction targets x x x 2.2.4
ESRS E1-5 37 Energy consumption and mix x 2.2.7
ESRS E1-5 38 Energy consumption from fossil sources disaggregated by
sources (only high climate impact sectors)
x 2.2.7
ESRS E1-5 40-43 Energy intensity associated with activities in high climate
impact sectors
x 2.2.7
ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions x x x 2.2.7
ESRS E1-6 53-55 Gross GHG emissions intensity x x x 2.2.7
ESRS E1-7 56 GHG removals and carbon credits x 2.2.5
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical
risks
x Phase-in used
ESRS E1-9 66 (a); 66 (c) Disaggregation of monetary amounts by acute and chronic
physical risk; Location of significant assets at material physical
risk
x Phase-in used
ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate assets by
energy-efficiency classes
x Phase-in used
ESRS E1
-
9
69
Degree of exposure of the portfolio to climate
-
related
opportunities
x
Phase
-
in used
ESRS E2-4 28 Amount of each pollutant listed in Annex II of the E-PRTR
Regulation emitted to air, water and soil
x Not material
ESRS E3
-
1
9
Water and marine resources
x
Not material
ESRS E3
-
1
13
Dedicated policy
x
Not material
ESRS E3-1 14 Sustainable oceans and seas x Not material
ESRS E3-4 28 (c) Total water recycled and reused x Not material
ESRS E3-4 29 Total water consumption in m
3
per net revenue on own
operations
x Not material
Disclosure
requirement Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
Regulation reference
EU Climate
Law
reference Section in the Statement
Board of Director’s Report | Sustainability Statement
43 KONE Annual Review 2025
ESRS 2- SBM 3 -
E4
16 (a) i Activities negatively affecting biodiversity sensitive areas x Not material
ESRS 2- SBM 3 -
E4
16 (b) Material negative impacts with regards to land degradation,
desertification or soil sealing
x Not material
ESRS 2- SBM 3 -
E4
16 (c) Operations that affect threatened species x Not material
ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies x Not material
ESRS E4
-
2
24 (c)
Sustainable oceans / seas practices or policies
x
Not material
ESRS E4
-
2
24 (d)
Policies to address deforestation
x
Not material
ESRS E5-5 37 (d) Non-recycled waste x Not material
ESRS E5-5 39 Hazardous waste and radioactive waste x Not material
ESRS 2- SBM3 - S1 14 (f) Risk of incidents of forced labour x Not material
ESRS 2- SBM3 - S1 14 (g) Risk of incidents of child labour x Not material
ESRS S1-1 20 Human rights policy commitments x 3.1.2
ESRS S1
-
1
21
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8
x
3.2.3 KONE Human rights due
diligence process
ESRS S1-1 22 Processes and measures for preventing trafficking in human
beings
x 3.1.3, 3.1.4, 3.2.2
ESRS S1
-
1
23
Workplace accident prevention policy or management system
x
3.1.2
ESRS S1
-
3
32 (c)
Grievance/complaints handling mechanisms
x
3.1.3
ESRS S1-14 88 (b) and (c) Number of fatalities and number and rate of work-related
accidents
x x 3.1.4
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness x Phase-in used
ESRS S1-16 97 (a) Unadjusted gender pay gap x x Not material
ESRS S1
-
16
97 (b)
Excessive CEO pay ratio
x
Not material
ESRS S1
-
17
103 (a)
Incidents of discrimination
x
3.1.4
ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and
OECD
x x 3.1.4
ESRS 2- SBM3 – S2
11 (b) Significant risk of child labour or forced labour in the value
chain
x 3.2.1
ESRS S2-1 17 Human rights policy commitments x 3.2.2
ESRS S2-1 18 Policies related to value chain workers x 3.2.2
ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights
principles and OECD guidelines
x x 3.2.3
ESRS S2
-
1
19
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8
x
3.2.3
ESRS S2-4 36 Human rights issues and incidents connected to its upstream
and downstream value chain
x 3.2.4
ESRS S3
-
1
16
Human rights policy commitments
x
Not material
ESRS S3
-
1
17
Non
-
respect of UNGPs on Business and Human Rights, ILO
principles or and OECD guidelines
x
x
Not material
ESRS S3-4 36 Human rights issues and incidents x Not material
ESRS S4-1 16 Policies related to consumers and end-users x 3.3.2
Disclosure
requirement Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
Regulation reference
EU Climate
Law
reference Section in the Statement
Board of Director’s Report | Sustainability Statement
44 KONE Annual Review 2025
ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights and
OECD guidelines
x x 3.3.2
ESRS S4-4 35 Human rights issues and incidents x 3.3.2
ESRS G1-1 10 (b) United Nations Convention against Corruption x 4.1.2, 4.1.3
ESRS G1-1 10 (d) Protection of whistle-blowers x Not material
ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws x x Not material
ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery x Not material
Table 05. Disclosure requirements incorporated by reference
Table 06. Content index
Disclosure
requirement Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
Regulation reference
EU Climate
Law
reference Section in the Statement
Disclosure requirement Description Reference
DP 40 a ii Information on KONE’s significant markets and customer groups Annual Review: Financial Statements: 2.1 Sales
DP 40 f Information on the significant products and services Annual Review: Financial Statements: 2.1 Sales
DP 29 c i Information on KONE’s total research and development costs Annual Review: Financial Statements: 2.2 Costs and Expenses
ESRS 2 General disclosures Section
BP-1 General basis for preparation of sustainability statements 1.2.1
BP-2 Disclosures in relation to specific circumstances 1.2.1, 1.2.2, 2.2.8, Table 32 fn. 1, Table 35 fn. 7
GOV-1 The role of the administrative, management and supervisory bodies 1.3.1
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
1.3.1
GOV-3 Integration of sustainability-related performance in incentive schemes 1.3.3
GOV-4 Statement on due diligence 1.3.4
GOV-5 Risk management and internal controls over sustainability reporting 1.3.2
SBM-1 Strategy, business model and value chain 1.4.1, 1.4.2, illustration 01
SBM-2 Interests and views of stakeholders 1.4.3, table 02
SBM
-
3
Material impacts, risks and opportunities and their interaction with strategy and business model
1.5
IRO
-
1
Description of the processes to identify and assess material impacts, risks and opportunities
1.5.1
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 1.5, 1.6
E1 Climate change Section
E1-1 Transition plan for climate change mitigation 2.2.4
E1-2 Policies related to climate change mitigation and adaptation 2.2.3, table 13
E1-3 Actions and resources in relation to climate change policies 2.2.4
E1-4 Targets related to climate change mitigation and adaptation 2.2.4
E1
-
5
Energy consumption and mix
2.2.7
E1-6 Gross Scope 1, 2, 3 and Total GHG emissions 2.2.7
E1-7 GHG removals and GHG mitigation projects financed through carbon credits 2.2.5
E1-8 Internal carbon pricing 2.2.6
GOV-3 Integration of sustainability-related performance in incentive schemes 1.3.3
IRO
-
1
Description of the processes to identify and address material IROs
1.5.1, 2.2.1, 2.2.2
SBM
-
3
Material IRO and their interaction with strategy and business model(s)
1.4.1, 2.2.1, 2.2.2
Board of Director’s Report | Sustainability Statement
45 KONE Annual Review 2025
E5 Resource use and Circularity
Section
E5
-
1
Policies related to resource use and circular economy
2.3.2,
table 13
E5-2 Actions and resources related to resource use and circular economy 2.3.3
E5-3 Targets related to resource use and circular economy 2.3.4
E5-5 Resource outflows 2.3
E5-6 Anticipated financial effects from resource use and circular economy-related impacts, risks and
opportunities
2.3.4
IRO
-
1
Description of the processes to identify and assess material resource use and circular economy-
related impacts, risks and opportunities
1.5.1, 2.3.1
S1 Own Workforce Section
S1-1 Policies related to own workforce 3.1.2. table 31
S1-2 Processes for engaging with own workers and workers’ representatives about impacts 3.1.3
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 3.1.3
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions
3.1.3
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
3.1.4
S1-6 Characteristics of the undertaking’s employees 3.1.1, tables 26-30
S1
-
14
Health and safety metrics
3.1.3, tables 34
-
35, 3.1.4
S1
-
17
Incidents, complaints and severe human rights impacts
3.1.4, tables 35
-
36
SBM-2 Interests and views of stakeholders 1.4.3, table 02, 3.1.3
SBM-3 Material impacts, risks and opportunities and their interaction of with strategy and business model 1.5.1, 3.1.3
S2 Workers in the value chain Section
S2-1 Policies related to value chain workers 3.2.2, table 31
S2-2 Processes for engaging with value chain workers about impacts 1.4.3, table 02, 3.2.3
S2
-
3
Processes to remediate negative impacts and channels for value chain workers to raise concerns
3.2.3
S2
-
4
Taking action on material impacts on value chain workers, and approaches to managing material risks
and pursuing material opportunities related to value chain workers, and effectiveness of those action
3.2.3
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
3.2.4
SBM
-
2
Interests and views of stakeholders
1.4.3, table 02, 3.2.3
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 1.5.1, 3.2.1
S4 Consumers and end-users Section
S4-1 Policies related to consumers and end-users 3.3.2, table 31
S4-2 Processes for engaging with consumers and end-users about impacts 1.4.3, table 02, 3.3.3
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
3.3.3
S4
-
4
Taking action on material impacts on consumers and end
-
users, and approaches to managing material
risks and pursuing material opportunities related to consumers and end- users, and effectiveness of
those actions
3.3.3
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
3.3.4
SBM-2 Interests and views of stakeholders 1.4.3, table 02, 3.3.3
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 1.5.1, 3.3.1
Board of Director’s Report | Sustainability Statement
46 KONE Annual Review 2025
G1 Business conduct
Section
G1
-
1
Business conduct policies and corporate culture
table 31,
4.1.2
G1-3 Prevention and detection of corruption and bribery 4.1.3
GOV-1 The role of the administrative, supervisory and management bodies 1.3.1
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 1.5.1, 4.1.1
Board of Director’s Report | Sustainability Statement
47 KONE Annual Review 2025
2. Environmental information
2.1 EU Taxonomy disclosure
The EU Taxonomy is a classification system designed to
translate the EU’s climate and environmental objectives
into criteria for environmentally sustainable economic
activities. It identifies activities that make a substantial
contribution to at least one environmental objective, does
no significant harm to others, and meet minimum social
safeguards. Its purpose is to guide investors toward
sustainable investments and support the transition to a
climate-neutral economy aligned with the Paris
Agreement.
Although the elevator and escalator industry is not
currently within the direct scope of the Taxonomy due to
its relatively low emissions profile, KONE has identified
certain Taxonomy-eligible and aligned activities within its
operations. As the Taxonomy framework continues to
evolve and is subject to interpretation, KONE regularly
reassesses its activities to evaluate their contribution to
the EU’s environmental objectives.
2.1.1 Assessment of Taxonomy-eligible
activities
An eligible activity under the EU Taxonomy is an
economic activity defined in Annex I of the Climate
Delegated Act, with specific technical screening criteria
for assessing its environmental sustainability. In 2025,
KONE identified Taxonomy-eligible activities contributing
to climate change mitigation and circular economy.
Activity 5.2 Sale of spare parts relates to products
and spare parts that are used in products manufactured
by economic activities classified under the NACE code
C28.22 Manufacture of lifting and handling equipment and
is therefore applicable to KONE’s business. As part of
KONE’s Service business, spare parts are sold to
maintenance companies that are maintaining products
manufactured by KONE. This activity fits into the
description of activity 5.2.
KONE’s DX Class elevators are manufactured with
built-in 24/7 Connected Services connectivity, and
maintenance of these elevators fits into the description of
the activity 4.1 Provision of IT/OT data-driven solutions.
In addition to elevators and escalators, KONE’s
offering includes automatic building doors. The
description of the economic activity 3.5 Manufacture of
energy efficiency equipment for buildings includes NACE
code C25.12, comprising manufacture of metal doors,
windows and their frames, shutters and gates as well as
metal room partitions for floor attachment. KONE’s
revenue related to manufacture of different types of
doors and gates falls within this scope. The installation,
service, and repair of these door and gate solutions is also
considered Taxonomy-eligible based on the description of
activity 7.3 Installation, maintenance and repair of energy
efficiency equipment.
KONE’s vehicle fleet consists of about 19,000 vehicles.
Based on the description of activity 6.5 Transport by
motorbikes, passenger cars and commercial vehicles,
KONE has concluded that the capital expenditure on
leasing costs of KONE’s entire vehicle fleet are
Taxonomy-eligible as related to category C Purchase of
output from other companies’ Taxonomy-eligible
economic activities. KONE did not identify any capital
expenditure related to categories A or B.
Taxonomy-alignment has not been pursued at this
stage for the above-mentioned activities.
2.1.2 Assessment of Taxonomy-aligned
activities
An activity is considered Taxonomy-aligned if it makes a
substantial contribution to at least one of the six
environmental objectives, does not significantly harm any
of the other objectives, and meets minimum human rights
and labor standards. In 2025, KONE identified Taxonomy-
aligned activities under climate change mitigation and
circular economy, and is reporting alignment for the
following activities:
3.6 Manufacture of other low carbon technologies:
One of KONE’s pioneering eco-efficient solutions is the
regenerative drive. When descending with a heavily
loaded car or ascending with a lightly loaded car,
elevators equipped with a regenerative drive can recover
energy by converting the stored mechanical energy into
electrical energy in the motor, which acts as a generator.
This regenerated energy is then fed back into the
building’s electrical system, where it can be reused by
other systems such as lighting or HVAC. The
manufacturing of elevators with a regenerative drive fits
under the EU Taxonomy economic activity 3.6
Manufacture of other low carbon technologies.
4.1 Provision of IT/OT data-driven solutions: KONE
24/7 Connected Services offers intelligent predictive
maintenance through cloud connectivity. By continuously
collecting data from connected equipment, the system
enables real-time analysis and proactive decision-making
to address potential problems before they cause
disruptions. Advanced analytics assess the urgency of
each issue, determining whether immediate action is
needed or if it can be resolved during the next scheduled
maintenance visit, resulting in more efficient and reliable
service. Any elevator or escalator can be connected to
24/7 Connected Services by installing a connectivity
device, while KONE’s DX Class elevators come with built-
in connectivity as standard. These connectivity-related
activities fit into the EU Taxonomy economic activity 4.1
Provision of IT/OT data-driven solutions.
Activity 4.1 includes revenue from manufacturing DX
Class elevators without a regenerative drive; other
elevators and DX Class elevators equipped with a
regenerative drive are included in activity 3.6.
5.1 Repair, refurbishment and remanufacturing:
Elevators and escalators typically have long lifespans,
which can be further extended through regular
maintenance and modernization. KONE’s Modernization
solutions support the extension of product life-cycles by
upgrading equipment in key areas such as energy
efficiency, safety, and aesthetics. These upgrades not
only enhance performance and user experience but also
contribute to more sustainable building operations by
reducing the need for full replacements. The description
of the economic activity 5.1 Repair, refurbishment and
remanufacturing entails repair and refurbishment of
goods that have been used for their intended purpose
before by a customer, and KONE’s partial modernization
business for elevators and escalators fits into the activity
description. Activity 5.1 relates to products that are
manufactured by economic activities classified under the
Board of Director’s Report | Sustainability Statement
48 KONE Annual Review 2025
NACE code C28.22 Manufacture of lifting and handling
equipment and is thus applicable to KONE’s business.
2.1.3 Substantial contribution criteria
KONE has reviewed the substantial contribution criteria
for economic activities 3.6, 4.1 and 5.1 and assessed its
activities to be aligned.
Per the substantial contribution criteria set out in
Annex I to regulation 2020/852 for activity 3.6, elevators
equipped with regenerative drive demonstrate substantial
life-cycle GHG emission savings compared to the best
performing alternative solutions available on the market,
such as a modern elevator drive technology without the
ability to feed electricity back to the building network. The
amount of energy regenerated by the regenerative drive
depends on the building type and elevator configuration,
enabling potential energy savings of approximately 30–
65%. Elevators equipped with regenerative drives make a
significant contribution to climate change mitigation by
improving energy efficiency.
In terms of circular economy, KONE 24/7 Connected
Services meets the criteria of activity 4.1. The service
identifies maintenance need and potential issues before
they cause problems, enhancing safety, accessibility and
extending equipment lifetime through data-driven
recommendations.
Under activity 5.1, KONE’s partial modernization
solutions contribute to circularity by repairing and
refurbishing existing equipment, thereby extending
product life and reducing material use.
2.1.4 Do No Significant Harm assessment
A Do No Significant Harm (DNSH) assessment was
conducted for the activities for which KONE meets the
substantial contribution criteria, as listed above. KONE
has a total of seven global R&D units and ten
manufacturing units in the US, Mexico, EU, China, and
India, with 200 most strategic material suppliers located
near KONE's supply units. Elevators with regenerative
drives, DX Class elevators, the connectivity devices for
24/7 Connected Services as well as partial modernization
components are manufactured or assembled at KONE’s
factories, thus the same manufacturing operations-
related DNSH assessments apply for all the Taxonomy-
aligned activities.
Climate change adaptation
KONE has performed physical climate risk and
vulnerability assessment as part of KONE’s annual risk
assessment process. KONE’s risk and opportunity
assessment includes a Climate Change Scenario Analysis
based on International Panel for Climate Change RCP
scenarios to help ensure that KONE’s strategy is resilient
to climate change in a range of possible future states. The
risk assessment focused on the qualitative implications of
climate-related risks and opportunities in key strategic
performance areas of KONE’s operations: direct material
purchases, manufacturing operations, logistics and
product and service design.
Based on the assessment, physical climate risks are
not considered material. KONE has taken mitigating
actions to ensure continued operations globally and
actively develops business continuity management
capabilities to reduce the impact and likelihood of
disruptions within its supply chain.
Sustainable use and protection of water resources
Across KONE’s global manufacturing operations, water is
mainly used for sanitary purposes. The company sources
water mainly from municipal water supplies, and
wastewater is discharged into municipal wastewater
treatment systems that comply with local regulations.
Three of KONE’s manufacturing units use minor quantities
of water in their industrial processes, for example, in
painting and coating processes with closed loop water
circulation, and for cooling purposes. These
manufacturing units monitor their water consumption and
wastewater discharge parameters, perform the necessary
sampling, and report to the local authorities according to
the local regulation. Two out of KONE’s ten manufacturing
units have their own wastewater treatment systems, with
regular third-party monitoring and permits in place.
Based on water risk assessment, four of KONE’s
manufacturing units are located in areas recognized with
high levels of water stress. However, the impact at these
sites is considered minor, as KONE’s manufacturing
processes require minimal water usage.
Environmental impact assessments as part of ISO
14001 certification including water impact assessment
have been performed for all of KONE’s manufacturing
units.
Pollution prevention and control
KONE has assessed its aligned activities against the
DNSH criteria for pollution prevention and control and
confirms that it meets the criteria. These criteria prohibit
the manufacture, marketing, or use of substances listed in
several EU regulations governing chemical safety.
KONE applies systematic practices and a Supplier
Code of Conduct and a Code of Conduct for own
operations, with an environmental annex, requiring that
substances, materials, components, and products,
whether used in manufacturing or included in final
products, comply with applicable EU legislation. The
company continuously works to minimize the use of
restricted substances and prioritizes materials that are
environmentally, technically, and economically
sustainable.
Some components in KONE’s products contain
substances addressed in the DNSH criteria, with lead
being the most significant. KONE’s product design and
R&D sustainability experts have conducted a feasibility
assessment to identify potential alternatives. Based on
current market availability, no technically and/or
economically feasible substitutes for lead have been
identified.
Transition to a circular economy
KONE’s main contribution to the circular economy focuses
on the growth opportunity within the Modernization
business. KONE’s Modernization business offers modular,
durable and energy efficient life-cycle solutions, that
significantly reduce the use of primary raw material and
improve equipment energy efficiency by up to 70%.
Elevators typically have a lifespan of around 25 years and
escalators around 15 years. With KONE’s maintenance and
modernization solutions, their lifetime can be extended
significantly, reducing the need for premature
replacements and supporting more sustainable building
Board of Director’s Report | Sustainability Statement
49 KONE Annual Review 2025
operations. Modernization solutions enhance repairability
and enable component-level upgrades, which can be
recycled or reused. This approach significantly reduces
life-cycle emissions. KONE is developing circularity
further by reducing the use of materials, energy, and
other resources across its solutions and operations. This
includes optimizing material use through robotics,
automation, and product design, as well as recycling
waste and reusing packaging wherever possible.
KONE aims to maximize positive environmental
impacts and minimize adverse ones throughout the entire
product life-cycle, from raw material sourcing to end-of-
life treatment. Up to 90% of the materials in KONE’s
solutions can be recovered, and products are designed
for disassembly, reuse, and recycling. Modernization
solutions also support circularity by enabling the
renovation and repurposing of buildings.
While the current share of recycled content in KONE’s
products is relatively low, the company actively
collaborates with suppliers to increase recycled metal
content without compromising safety or quality.
Protection and restoration of biodiversity
All KONE’s manufacturing units have undergone
environmental impact assessments as part of their ISO
14001 certification. Mitigation and compensation
measures are implemented in accordance with local
regulations and integrated into KONE’s environmental
management and auditing processes.
In 2025, KONE confirmed that none of its
manufacturing units are located in or near biodiversity-
sensitive areas. KONE has both annual and long-term
biodiversity targets (2030), which require that its
manufacturing sites are not situated within or adjacent to
UNESCO World Heritage sites, Natura 2000 areas, or
other protected or ecologically sensitive zones.
2.1.5 Minimum social safeguards
Based on the assessment of the Minimum Safeguards
criteria on human rights, bribery and corruption, taxation
and fair competition, which are laid out by the EU Platform
on Sustainable Finance, KONE has found its activities to
be aligned.
KONE’s Code of Conduct, Human Rights Policy, Anti-
Bribery and Corruption Policy, Competition Compliance
Policy and other related policies set out the principles and
standards expected from KONE employees, KONE
companies, suppliers, distributors and other business
partners. KONE is committed to respecting and endorsing
internationally recognized labor and human rights
standards in its operations and across the value chain.
KONE has a human rights due diligence process,
consisting of impact assessments, third party due
diligence, supplier screenings and internal assessments
and surveys. To prevent bribery and corruption, KONE has
developed a comprehensive anti-bribery and corruption
program which includes thorough risk assessments, clear
policies, mandatory training, and proactive measures.
2.1.6 Nuclear and fossil gas related
activities
KONE does not engage in nuclear or fossil fuel gas
related activities. For more details, see table 07.
2.1.7 OpEx
For operational expenditure (OpEx), KONE has defined its
total OpEx (denominator) as EUR 310 million, based on the
methodology specified in the Taxonomy Regulation. This
figure includes research and development expenses, as
well as costs related to the maintenance and repair of
facilities and buildings, as well as short-term lease
payments.
KONE did not identify any turnover-related or
standalone Taxonomy-eligible or aligned operational
expenditure.
2.1.8 Changes in KONE’s Taxonomy
reporting since 2024
Since 2024, there have been no adjustments to the scope
of KONE’s EU Taxonomy reporting. No new activities have
been added, nor have any eligible or aligned activities
been removed.
Table 07. Nuclear and fossil gas related activities
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or
process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels.
NO
Board of Director’s Report | Sustainability Statement
50 KONE Annual Review 2025
Table 08. Proportion of turnover from products or services associated with Taxonomy-aligned economic activities
2025 Substantial contribution criteria DNSH criteria
Economic activities
Code
Turnover
Proportion of turnover, year N
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of taxonomy aligned (A.1)
or eligible (A.2) turnover, year N
-1
Category enabling activity
Category transitional activity
MEUR % Y; N; N/EL
Y; N; N/EL Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of other low carbon technologies
3.6 2,372 21.1 % Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 16.7 % E
Provision of IT/OT data-driven solutions
4.1 1,990 17.7 % N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 17.8 % E
Repair, refurbishment and remanufacturing
5.1 1,265 11.2 % N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 9.9 %
Turnover of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
5,627 50.0 % 42.2 % 0.0 % 0.0 % 0.0 % 57.8 % 0.0 % Y Y Y Y Y Y Y 44.4 %
Of which Enabling
4,362 38.8 % 21.1 % 0.0 % 0.0 % 0.0 % 17.7 % 0.0 % Y Y Y Y Y Y Y 34.5 % E
Of which Transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of energy efficiency equipment for buildings
3.5 17 0.1 % EL N/EL N/EL N/EL N/EL N/EL
0.1 %
Provision of IT/OT data-driven solutions
4.1 53 0.5 % N/EL N/EL N/EL N/EL EL N/EL
0.5 %
Sale of spare parts
5.2 9 0.1 % N/EL N/EL N/EL N/EL EL N/EL
0.1 %
Installation, maintenance and repair of energy efficiency equipment
7.3 90 0.8 % EL N/EL N/EL N/EL N/EL N/EL
0.7 %
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
169 1.5 % 63.2 % 0.0 % 0.0 % 0.0 % 36.8 % 0.0 % 1.4 %
A. Turnover of Taxonomy eligible activities (A.1 + A.2) 5,796 51.5 % 42.8 % 0.0 % 0.0 % 0.0 % 57.2 % 0.0 % 45.8 %
B. TAXONOMY-NON ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 5,449 48.5 %
TOTAL 11,245 100.0 %
EL = Eligible; N/EL = Non-eligible
Total turnover as per KONE group reported figures. KONE’s principles for defining turnover and capital expenditure can be found in notes 2.1. and 4 in the financial statements.
Board of Director’s Report | Sustainability Statement
51 KONE Annual Review 2025
Table 09. Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities
2025 Substantial contribution criteria DNSH criteria
Economic activities
Code
CapEx
Proportion of CapEx, year N
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) CapEx, year N
-1
Category enabling activity
Category transitional activity
MEU
R
% Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned)
(A.1)
Of which Enabling
Of which Transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Transport by motorbikes, passenger cars and commercial vehicles
6.5 153 30.8 % EL N/EL N/EL N/EL N/EL N/EL 30.6 %
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
153 30.8 % 100.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 30.6 %
A. CapEx of Taxonomy eligible activities (A.1 + A.2) 153 30.8 % 100.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 30.6 %
B. TAXONOMY-NON ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 343 69.2 %
TOTAL 496 100.0 %
EL = Eligible; N/EL = Non
-
eligible
Total CapEx as per KONE group reported figures. KONE’s principles for defining turnover and capital expenditure can be found
in sections 2.1., 4.3 and 4.4. in the financial statements.
Board of Director’s Report | Sustainability Statement
52 KONE Annual Review 2025
Table 10. Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities
2025 Substantial contribution criteria DNSH
Economic activities
Code
OpEx
Proportion of OpEx, year N
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy aligned (A.1) or
eligible (A.2) OpEx, year N
-1
Category enabling activity
Category transitional activity
MEU
R
% Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned)
(A.1)
Of which Enabling
Of which Transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
0
0.0 %
A. OpEx of Taxonomy eligible activities (A.1+ A.2) 0
0.0 %
B. TAXONOMY-NON ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 310
100.0 %
TOTAL 310
100.0 %
EL = Eligible; N/EL = Non-eligible
Board of Director’s Report | Sustainability Statement
53 KONE Annual Review 2025
2.2 Climate Change (E1)
2.2.1 Material impacts, risks, and
opportunities
Climate-related IROs are a strategic priority for KONE.
These were identified through KONE’s DMA, which builds
on prior climate assessments and a deep understanding
of the company’s key climate impacts. Climate change
adaptation and mitigation, along with energy, were
confirmed as material topics for KONE.
Table 11 summarizes material climate-related IROs
including information on time-horizons, value chain and
management actions. For the process used to identify and
assess material IROs, see section 1.5.
2.2.2 Scenario analysis
KONE completed its first climate change scenario
analysis in 2023. As part of this analysis a resilience
assessment was conducted to evaluate the organization’s
ability to maintain critical operations in the face of
climate-related risks. This analysis is now embedded in
KONE’s broader risk assessment framework and is
reviewed annually, with updates made on a regular basis.
For details on the time horizons applied, see section 1.5.2.
Key assumptions, inputs, and scenario drivers, including
those related to the transition toward a low-carbon
economy, are summarized in table 12.
In the initial phase, KONE focused on the qualitative
impacts of climate-related risks and opportunities across
strategic performance areas. These assessments
considered both inherent and residual risks after existing
mitigation measures. KONE is enhancing its capabilities
for quantifying the financial impacts of material physical
and transition climate risks, with the understanding that
such efforts are subject to methodological and data
limitations.
The scenario analysis covered all identified climate-
related risks and opportunities in strategic performance
areas of KONE’s own operations such as:
Direct material purchases (upstream value chain)
Logistics (cross-cutting value chain activity)
All manufacturing operations (own operations)
Product and service design (own operations)
Although the downstream value chain was not directly
included, product and service design are closely linked to
downstream impacts. The analysis also explored how
KONE can support the downstream value chain
(customers) in mitigating damage during extreme weather
events, such as hurricanes and floods, when their
facilities and KONE equipment are at risk.
KONE also uses the ISO 14001 environmental
assessment to enhance environmental performance by
identifying, assessing, prioritizing and communicating
potential risks and opportunities. This system sets
common requirements for all KONE units to assess and
mitigate material environmental risks related to their
activities, products, and services, including life-cycle
impacts. Risk identification and mitigation are further
supported by regular internal and external audits. These
activities cover corporate units, including all R&D and
manufacturing units, as well as 33 major country
organizations.
Climate scenarios
KONE’s climate scenario assessment has drawn on
multiple authoritative sources, including the
Intergovernmental Panel on Climate Change (IPCC) Sixth
Assessment Report – Working Group I, Swiss Re CatNet,
Table 11.
Material
impacts, risks
,
and opportunities related to climate change
Material topic
(time horizon) Material impacts, risks and opportunities
1
Management response
Climate change
adaptation in own
operations and
up- and
downstream value
chain (long-term)
↓ Physical risk
Severe weather events may interrupt operations and
increase the cost of doing business in KONE’s
factories or in the upstream supply chain or
downstream delivery chain, including logistics
routes.
KONE develops business continuity management
capabilities and harmonizes its products to increase
resilience in case of disruptive events
KONE develops services helping customers with
prior weather event loss prevention, stand-by
maintenance during events and post-event status
check and repairs
Climate change
mitigation in up-
and downstream
value chain (long-
term/
continuous)
↑ Positive impact
KONE's solutions are designed for life cycle use with
a long lifetime aiming for circularity, with professional
maintenance and modernization, enabling lower
lifetime energy consumption and GHG emissions.
↓ Negative impact
Product-related emissions – lifetime energy
consumption and materials – account for the majority
of KONE’s emissions
↓ Transition risk
Reputational damage if KONE fails to meet its
promised sustainability/climate-related targets in
time
KONE continues to develop low carbon offering to
meet customer expectations and support them to
meet their climate targets
KONE actively engages with its suppliers on climate
topics
Energy in
downstream value
chain
(long-term/
continuous)
↓ Negative impact
KONE solutions are designed to last long (25 years
for the elevators and 15 years for escalators). During
their lifetime KONE solutions consume electricity.
KONE continues to develop its energy efficient low
carbon offering
1
The table includes impacts, risks and opportunities with the further division of climate-related risks into physical or transition.
Board of Director’s Report | Sustainability Statement
54 KONE Annual Review 2025
and integrated SSP-RCP scenarios (Shared
Socioeconomic Pathways, SSPs, informed by
Representative Concentration Pathways). It is
acknowledged that real-world political and societal
developments may diverge from the assumptions
embedded in SSP-RCP scenarios, particularly regarding
the degree of global cooperation, which could influence
the feasibility of mitigation and adaptation strategies.
Additional uncertainties relate to assumptions about
natural resource availability, the pace and practicality of
technological advancements, and the effectiveness and
implementation of policy measures.
The selected scenarios were considered
representative of KONE’s risk landscape, as they
encompass a range of plausible warming pathways and
socio-economic developments. These factors may shape
global megatrends that align with KONE’s strategic
direction and directly affect its operational environment.
KONE’s resilience under the scenarios
KONE evaluates both current and future risks associated
with acute and chronic physical climate change impacts
when deciding on new manufacturing or distribution
center locations, as well as when expanding existing
facilities. However, KONE has limited influence over
suppliers or customers in the selection of their operating
locations. Due to KONE's global footprint, the company
can diversify its supply and delivery chain, reducing
dependency on particularly exposed locations at any
given time. Furthermore, KONE employs specialized,
location-based software tools to continuously monitor its
supply chain locations, including supplier manufacturing
sites and physical risks related to climate change. This
enhances KONE's ability to swiftly transition to predefined
alternative supply chains when necessary.
KONE’s strategy, Rise, emphasizes actions to cut
carbon emissions in alignment with the Paris Agreement
and the '1.5°C low carbon’ scenario. Sustainability is
integrated into the strategy as a key driver for profitable
growth and differentiation. For more on the strategy, see
section 1.4.1.
When conducting the scenario assessment, KONE has
not identified any assets or business activities that are
incompatible with or need significant efforts to be
compatible with a transition to a climate-neutral economy.
Table 12. Scenario comparison and KONE’s resilience under the scenarios
SSP1 SSP2 SSP4
Reference
temperature
scenario
from IPCC
“Low carbon” scenario
1.5°C warming pathway
“Middle of the road” scenario
2.7°C warming pathway
“High carbon” scenario
4°C warming pathway
Key inputs Tightening regulation, severe
weather events
Tightening regulation, supply chain
interruptions, extreme weather
events
Projected temperature and precipitation
changes, expected severity of climate
related weather events
Key drivers
Policies/regulations, technological
change
Policies/regulations, technological
change, resource use, extreme
weather events
Extreme weather events, demographic
changes, social and economic
development, resource use
Scenario
description
(risks (-) and
opportunities
(+))
+
Ambitious, globally consistent
regulations aiming at low-carbon
economy
+ Moderate but less material- and
energy-intensive economic
growth
+ Increased demand for
sustainable and climate resilient
solutions already in short-term
creating opportunities for KONE
+ Full transformation to renewable
energy and electrification and
focus on energy efficiency in
medium and long term
+ High rates of technological
progress in renewable energy,
energy efficiency, digitalization
and smart infrastructure
+ GHG emissions significantly
reduced by 2050
+ Limited business interruptions
and material losses due to KONE
efforts to enhance ability to
anticipate, prepare for, respond
to, and adapt to business
disruptions
- Physical changes cause
occasional disruptions to KONE
factories and supply chain.
-
Current socio
-
economic
development patterns continue.
Economic growth is moderate but
uneven between regions.
- Energy intensity declines, but
fossil fuels retain a substantial share
of the energy mix
-/+ Technological progress is steady
but not transformative
-/+ Tighter policies promote
demand for KONE’s energy efficient
product offering in markets
committed to the Paris Agreement
-/+ Resilience challenge in short to
medium term: less policy incentive
to innovate leads to slower
advancement in material efficiency,
recycling infrastructure and new
materials. May accelerate in the
long term, when regulators
recognize the need to take actions.
- Disruptions in the availability of
raw materials and increased price
volatility in the long term
- Global supply chains and logistic
routes may face notable changes,
affecting KONE’s business
- GHG emissions moderately
increase until stabilizing around
2035 and turning to decrease
around 2050
-
Disorganized transition to low
-
carbon
economy. Economic growth in wealthy
regions only.
Overconsumption of resources
continues over the medium to long term.
-/+ Growing energy demand in wealthy
regions, met by renewables. Poorer regions
rely on fossil fuels
-/+ Advanced low-carbon technologies are
concentrated in high-income regions
- Non-integrated carbon markets, and
increased carbon leakage due to
differences in carbon regulations between
countries
-/+ Severe resilience risks to strategy: the
demand for sustainable and climate
resilient solutions grows in advanced
economies, whereas in developing markets
customers are not willing to pay for such
solutions
- Disruptions in supply chains and logistic
routes due to extreme weather can lead to
significant logistic cost increase for KONE
- In the medium term, changes may be
required in KONE’s product design for the
equipment to bear extreme heat and
humidity to operate under such conditions
- GHG emissions continue to rise but at a
slightly reduced rate
Board of Director’s Report | Sustainability Statement
55 KONE Annual Review 2025
Furthermore, there are no critical climate-related
assumptions in KONE’s financial statements.
2.2.3 Policies
Climate change adaptation
Key policies related to climate change adaptation are
presented in table 13. These policies outline KONE’s
strategic approach to managing climate-related risks and
opportunities.
KONE’s Business Continuity Management Standard
defines company-wide minimum requirements for crisis
preparedness, disruption response, and business
recovery, which are the core elements that underpin the
company’s resilience and ability to adapt to climate
change. The standard provides structured guidance for
identifying critical activities, evaluating potential impacts
and risks, and establishing mitigation measures to prevent
disruptions or enable timely recovery within defined
timeframes.
Business continuity plans document high-impact
disruption scenarios, including those related to physical
climate risks. These plans specify roles and
responsibilities for prevention, preparedness, emergency
response, crisis management, and recovery for each
scenario. The adequacy and effectiveness of these plans
and associated mitigation measures are reviewed at least
annually, typically in connection with crisis management
exercises and audits.
Climate change mitigation and energy
KONE’s commitment to the ten principles of the United
Nations (UN) Global Compact initiative are embedded in
its strategy, policies, and procedures, including KONE’s
Environmental Policy Statement which emphasizes
KONE’s pledge to reduce GHG emissions and minimize the
environmental impacts of its solutions by promoting
longevity, repairability, upgradability, digital connectivity,
and energy-efficient offerings. Progress against the
environmental targets is reviewed quarterly by KONE’s
Executive Board and annually by the Board of Directors.
KONE’s business processes are aligned with
internationally recognized ISO standards. Among these,
ISO 14001 (Environmental Management System) and ISO
50001 (Energy Management System) are particularly
relevant to enhancing KONE’s sustainability performance.
These standards support climate change mitigation
efforts across KONE’s own operations and those of its
partners, fostering a culture of environmental
responsibility in line with the UN Sustainable Development
Agenda, the Paris Pledge for Action, and KONE’s science-
based targets.
While KONE’s material topics primarily address the impact
of greenhouse gas (GHG) emissions and energy use
across the value chain, the company is also committed to
reducing emissions and energy consumption within its
own operations. The Global Vehicle Policy ensures the
vehicle fleet is run and operated in line with KONE’s
environmental ambitions and objectives. The KONE Global
Facilities Policy reflects this commitment by setting a
target to transition all facilities worldwide to 100%
renewable electricity by 2030. Progress toward this goal
is tracked through quarterly reporting by all KONE units.
For further details on data collection and monitoring, see
section 2.2.7 and 2.2.8.
KONE’s daily operations are governed by the KONE
Code of Conduct and other internal policies and
guidelines. The Code of Conduct mandates compliance
with applicable laws and regulations and promotes high
environmental standards across KONE’s operations,
suppliers, and customer interactions. The KONE Supplier
and Distributor Codes of Conduct require business
partners to comply with relevant environmental
legislation, obtain necessary permits, and manage
materials, energy, and emissions responsibly. For more
information on these policies and their implementation,
see sections 2.2.3, 2.3.2, 3.1.2, 3.2.2, 3.3.2, 4.1.2, and
tables 13 and 31. All policies are accessible via KONE’s
internal systems, such as the intranet, and many are also
publicly available.
2.2.4 Actions and targets
Climate change adaptation
To enhance resilience against the physical impacts of
climate change, KONE is increasing the compatibility and
interchangeability of components and assemblies in its
existing and future products. This approach supports
business continuity by enabling rapid adaptation when
disruptions occur in the delivery chain or logistics routes
Table 13. Key policies related to climate change
Management system
Material topics
addressed Scope Management bodies Last updated
Business Continuity
Management Standard
E1 Climate change
adaptation
All KONE units
Supply Chain leadership team
2025
Business continuity plans E1 Climate change
adaptation
All KONE units Head of unit/function 2025
Environmental Policy
Statement
E1, E5 Climate change
mitigation, energy
efficiency, circularity &
resource use
All KONE units and
global operations
President and CEO
2024
ISO 14001 integrated in
KONE Management
System
E1
Climate change
mitigation, energy
efficiency
All KONE units and
key suppliers
EVP Supply Chain
2025
ISO 50001 Energy
Management System
E1 Climate change
mitigation, energy
efficiency
Four local units Local leadership teams and
assigned function
location
dependent
Global Facilities Policy E1 Renewable energy All KONE units Executive Board, CFO 2021
Global Vehicle Policy E1 Renewable Energy All KONE units Executive Board, EVP People&
Communications
2024
Board of Director’s Report | Sustainability Statement
56 KONE Annual Review 2025
such as the need to replace material or component
suppliers, KONE factories, distribution centers, or
shipment pathways with viable alternatives.
In 2024, KONE launched the first phase of its product
harmonization initiative. This was followed in 2025 by
targeted harmonization of selected components across
operations in Europe and the Americas.
KONE conducts simulated crisis and business
continuity management exercises at its manufacturing
facilities to strengthen organizational preparedness and
reduce the likelihood and impact of disruptions across its
full delivery chain. These exercises form part of KONE’s
broader resilience strategy, which includes ten
manufacturing facilities across seven countries, multiple
distribution centers, and a globally distributed supplier
network. This diversified footprint helps mitigate the
effects of localized disruptions.
To further safeguard supply availability, KONE employs a
range of proactive measures including alternative
sourcing channels, long-term supplier agreements, and
last-buy options for critical components and services.
Additionally, KONE maintains a global property damage
and business interruption insurance program to support
recovery in the event of significant disruptions.
In terms of downstream adaptation, KONE
continuously develops services, which help its customers
with weather event loss prevention, stand-by
maintenance during events and post-event status check
and repairs.
Climate change mitigation and energy
The majority of KONE’s GHG emissions originate from the
lifetime energy consumption of its products (62%) and the
materials used in production (35%) (scope 3, cat 11 and 1).
In contrast, emissions from logistics (scope 3, cat 4) and
internal operations (scope 1), such as the vehicle fleet and
facilities, are minimal, each accounting for just 1%.
Target setting principles
KONE’s science-based targets for Scope 1 and 2 as well
as Scope 3 were set in 2020, validated by the Executive
Board and approved by the Board of Directors, with the
aim of aligning KONE’s emission reduction activities with
the overall business strategy and financial planning. In line
with the SBTi’s requirement for companies to review and
update their targets at least every five years, KONE is
currently undertaking a comprehensive review of its
existing science-based targets. This process aims to
ensure continued alignment with the latest SBTi criteria
and standards.
The science-based targets cover 100% of KONE’s
Scope 1 and market-based Scope 2 emissions and almost
99% of KONE’s Scope 3 emissions (category 1: purchased
goods and services and category 11: use of sold
products).
The science-based targets coupled with annual
renewable electricity and carbon neutral operation targets
form the basis for KONE’s emission reduction plan and its
global Climate Pledge to drive the needed emission
reduction activities in KONE’s own operations and related
to its products and value chain. KONE’s strategy and
business model are compatible with the transition to a
sustainable economy, and with the limiting of global
warming to 1.5 °C in line with the Paris Agreement.
The science-based targets were set in collaboration
with relevant internal stakeholders and global business
units including the R&D, Innovation and Purchasing
functions. In addition, Science Based Target initiative
(SBTi) standards and criteria were followed in line with a
cross-sector emission pathway compatible with limiting
global warming to 1.5°C accounting for business growth in
different geographical areas and business lines. The 2018
baseline was chosen in line with SBTi guidelines and
criteria for a representative year which covered the most
recent period for which the data was available at the time.
SBTi has assessed and approved the targets, and the
progress against the targets is externally assured
annually. The emission reduction roadmap and business
growth estimations are also reviewed annually to align
with KONE’s overall business outlook.
In order to reach the 2030 SBTi targets, KONE has set
annual targets for scope 1 and 2. KONE also follows the
progress of scope 3 regenerative drive penetration in
deliveries.
Emission reduction roadmap
As a strategic framework, KONE’s emission reduction
roadmap outlines the company’s approach to mitigating
GHG emissions across its operations and value chain.
Built on science-based targets, the roadmap serves as a
long-term plan to guide decarbonization efforts. It defines
key levers, near-term (2030) actions, and long-term
(2050) vision across Scope 1, 2, and 3 emissions. The
roadmap also supports transparency and sustainable
growth throughout the organization and aligns with the
strategic priorities of KONE’s Rise strategy.
KONE's climate transition plan is planned to be
published during 2026 and will be built upon KONE's
existing emission reduction roadmap and will align with
the ESRS requirements and latest SBTi framework. The
climate transition plan will outline a comprehensive
strategy for lowering greenhouse gas emissions and set a
clear pathway toward achieving KONE’s long-term 2050
climate goals.
Emission Reduction Targets by 2030
KONE has committed to reducing its Scope 1 and 2
emissions from its own operations by 50% by 2030, using
2018 as the baseline. This target is in line with limiting
global warming to 1.5°C, which is currently the most
ambitious criteria for setting science-based targets.
Additionally, KONE targets a 40% reduction in the
emissions related to its products’ materials and lifetime
energy use (Scope 3 emissions) over the same period,
relative to orders received. KONE’s emission reduction
targets (Scope 1, 2 and 3), renewable energy target, and
action plans are in line with its global environmental
policies and standards. As part of KONE’s annual
budgeting process, all emission reduction targets are
reviewed by the global sustainability team and validated
Table 14. Breakdown of KONE’s main GHG Emissions by Source
Source % of GHG emissions
Scope 3 Use of sold products
(lifetime energy consumption of
products) 62%
Scope 3 Purchased goods and
services (Materials used in products) 35%
Scope 1
Direct emissions from fuel
combustion and stationary sources
(Vehicle fleet and facilities) 1%
Scope 3 Upstream Transportation and
Distribution (logistics) 1%
Board of Director’s Report | Sustainability Statement
57 KONE Annual Review 2025
by Executive Board members. Through this process KONE
ensures both annual progress and that near-term 2030
goals are met.
KONE is dedicated to reducing electricity consumption
within its own operations and has established a goal to
raise the proportion of renewable electricity to 100% by
2030. By 2025, KONE attained a 99.6% share of
renewable electricity.
KONE’s Rise strategy places significant focus on
emission reduction. For additional information on KONE’s
updated strategic approach see section 1.4.1. To support
the strategy implementation, KONE has updated its
Climate and Environmental Program at the end of 2025.
Additionally, KONE provides targeted sustainability
training for different employee groups. Starting in 2025,
all employees are invited to participate in the “How to Talk
Carbon” training, focusing on carbon reduction and
KONE’s climate goals. Leadership teams attend
Sustainability Leadership Trainings on key sustainability
topics. Personnel involved in sustainability efforts join info
calls covering updates on Cut Carbon progress.
Additionally, KONE actively supports climate and
environmental initiatives internally, such as sustainability-
themed days. Through these efforts, KONE enhances the
level of internal sustainability knowledge while responding
to increasing customer demand for sustainable products
and services.
In 2025, KONE effectively advanced its emission
reduction efforts by investing in the energy efficiency of
its solutions and collaborating with suppliers to enhance
material efficiency. These initiatives will continue into
2026 and beyond to support KONE’s commitment to its
2030 targets. All emission reduction measures
implemented in 2025 align with the company’s climate
change scenario analysis, ensuring long-term alignment
with the Paris Agreement’s 1.5°C goal. For more details,
see section 2.2.2. KONE remains dedicated to achieving
actual emission reductions across its operations,
Table 15. Main components of the Emission Reduction Roadmap
Scope
Strategic
Focus
Key Levers Near-Term Targets (by 2030) Actions (by 2030) Long-Term Vision (by 2050)
Scope 1 & 2
Decarbonize
own operations
Transition to a low-emission vehicle
fleet or no fleet (scope 1)
Increase share of renewable energy
sources (scope 1)
Increase the share of renewable
electricity and heat (scope 2)
Improve energy efficiency (scope 1&2)
50% Scope 1&2 GHG reduction
from 2018
100% renewable electricity in
facilities
Further electrification of vehicle
fleet and energy efficiency
upgrades
Carbon neutral manufacturing
units
Transition to low-emission vehicle fleet
or no fleet
Optimize maintenance routes and
activities
Utilize predictive maintenance to avoid
unplanned visits
Upgrade facilities for energy efficiency
Switch to renewable electricity
suppliers
Industry leadership in sustainability
and decarbonization
KONE is actively evaluating the
scope and implications of a
future Net Zero commitment
Establish global leadership in
sustainability and
decarbonization across
operations and value chain and
accelerate decarbonization
throughout the value chain via
partnerships and innovation
Scale circular business models to
reduce environmental impact and
maximize resource efficiency
Advance KONE’s Climate &
Environmental Program and
deepen sustainability expertise
across the organization
Scope 3 Decarbonize
value chain &
products
Improve the energy efficiency of
products
Increase the use of low-carbon
materials and components
Advance low carbon solutions
Enhance supplier collaboration,
product innovation and strategic
partnerships to enable low-carbon
transformation
40% reduction in emissions per
product ordered
Expand predictive maintenance with
24/7 Connected Services
Increase use of energy-efficient
electrification, smart technologies
systems and regenerative drives
Improve material efficiency and
circularity
Engage supply chain partners and in
joint decarbonization efforts
ESG
integration
Governance,
circularity, and
innovation
Promote circularity via a clear strategy
and multiple pilot projects
Innovate and adopt lower-carbon
materials, such as low-carbon steel
and other sustainable alternatives
Accelerate data automation, accuracy
and visibility across own operations
and customer interfaces
Executive Incentives tied to
sustainability KPIs (20%)
Meeting KONE’s science-based
targets
Growth of revenue from
sustainable solutions
Increased ability to capture
sustainable opportunities
Sustainability trainings across
key employee groups
Build on circular business opportunities
Increase offerings that meet KONE’s
sustainability criteria and support
climate change mitigation under the
Cut Carbon shift
Board of Director’s Report | Sustainability Statement
58 KONE Annual Review 2025
products, and value chain. Nonetheless, to achieve
carbon-neutral operations by 2030, KONE plans to offset
any remaining emissions.
KONE has identified key decarbonization levers to
support its science-based targets by 2030 across Scope
1, 2, and 3 emissions. These include transitioning the fleet
to electric vehicles, increasing the use of renewable
energy and electricity, enhancing energy and material
efficiency, and driving innovation through supplier
engagement and product development. For a detailed
overview, see table 16 and 17.
Scope 1 and 2 emissions
The environmental data includes both net and gross
emissions for Scope 1 data. In addition to the mandatory
gross emissions, KONE reports the net emissions
achieved through verified renewable natural gas
certificate offsets. Gross emissions are detailed in table
22, and net emissions can be found in the table’s
footnote.
KONE’s scope 1&2 decarbonization path focuses on
two key levers:
Vehicle fleet decarbonization: KONE focuses on
decreasing Scope 1 emissions mainly by shifting towards
a zero or low-emission vehicle fleet, or by eliminating the
fleet altogether. KONE’s vehicle fleet accounts for
approximately 96% (2024: 92%) of its Scope 1 and 2 GHG
emissions. The total carbon footprint of KONE’s vehicle
fleet decreased by 2% compared to 2024 and decreased
by 5% compared to its 2018 emissions (109,000 tCO2e).
In 2024, KONE launched a strategy to reduce vehicle
emissions in collaboration with its partners. The strategy
included identifying technicians who could switch to
electric vehicles (EVs), integrating EVs into subsidiary car
policies, encouraging employees to choose low-emission
vehicles, and installing EV charging stations. At the end of
Q3 2025, 16% of KONE’s global vehicle fleet was
electrified. Accelerating the shift to electric vehicles is
crucial for KONE to meet its 2030 emission reduction
goals.
Facilities decarbonization: KONE is also focusing on
reducing emissions through renewable energy and energy
efficiency efforts at its manufacturing facilities. By the
end of 2025, KONE’s ten global manufacturing facilities
achieved an 86% (2024: 82%) reduction in net Scope 1
and 2 emissions compared to the 2018 baseline. Solar
panels were used at six of the ten sites, and two facilities
continued to utilize green district heating in 2025. Since
early 2023, all units have sourced 100% renewable
electricity.
Additionally, in 2025 KONE reinforced its commitment
to low-emission operations, e.g. through the transition
from diesel and LPG forklifts to e-forklifts, and continued
to optimize energy consumption in heating, ventilation, air
conditioning, and lighting systems across its
manufacturing operations. Investments in robotics and
automation have further enhanced material and energy
efficiency within the production process.
Furthermore, KONE has actively reduced market-
based Scope 2 emissions by systematically improving
energy efficiency and increasing renewable electricity
usage throughout its operations. Total energy
consumption in 2025 decreased by 4% compared to
2024, and increased by 4% compared to 2018 (507,900
MWh).
Scope 3 emissions
KONE has identified relevant scope 3 emissions in the
following categories: 1. Purchased goods and services, 4.
Upstream transportation and distribution, 5. Waste
generated in operations, 6. Business traveling, and 11. Use
of sold products.
KONE has conducted a screening of its major emission
sources and recognized potential locked-in GHG
emissions associated with the use of sold products
(scope 3, category 11) when operated with non-
renewable electricity by customers. KONE has not
identified any locked-in GHG emissions that pose a risk of
Table 16. Levers to reach Scope 1 & 2 emission reduction target by 2030
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Baseline 2018 Fleet transformation Renewable electricity Renewable energy Target year 2030
tCO2e
Board of Director’s Report | Sustainability Statement
59 KONE Annual Review 2025
achieving its emissions reduction targets. The calculation
methodology is described in section 2.2.8.
KONE’s scope 3 decarbonization path focuses on
three key levers:
Energy-efficient solutions: KONE continuously
advances its commitment to sustainability by designing
and offering energy-efficient solutions across its product
portfolio. This includes regenerative drives that recover
energy during elevator operation, LED lighting to reduce
power consumption, standby modes that minimize power
demand when equipment not in active use, and group
control systems that optimize traffic flow. During 2025,
the improved energy-efficiency was achieved through an
increased share of energy-efficient systems and
regenerative drives in sold elevators. KONE has reached
an important milestone in this journey in 2025, with over
60% of deliveries equipped with regenerative drives. In
the future, KONE aims to increase the number of elevators
with regenerative drive-in line with the company's
ambitious emission reduction targets, thus also increasing
the Taxonomy-aligned share of revenue. More on
Taxonomy, see section 2.1.
Decarbonization of the energy market plays a vital role
in reducing global GHG emissions. The increasing use of
renewable energy and low-carbon grids helps lower the
carbon footprint of energy consumed. This market shift
also supports decarbonization across KONE’s value chain.
Material efficienct in solutions: KONE continuously
designs its solutions to maximize material efficiency.
During 2025, KONE MonoSpace 4 DX was launched with
optimized material efficiency. It leverages high-friction,
high-tensile ropes that are approximately 70% lighter than
traditional ones, significantly reducing material usage
while extending rope longevity. The space-efficient
machinery, including a smaller counterweight,
compresses the system footprint by up to 50%, optimizing
building space and lowering structural material demand.
Steel accounts for the majority of Scope 3 emissions
associated with purchased goods and services in KONE’s
value chain. The global steel industry is currently entering
a transition toward decarbonization, driven by regional
regulations and innovation in low-carbon steelmaking
technologies (such as hydrogen-based direct reduction).
These market developments are expected to offer more
options for decarbonizing Scope 3 emissions related to
purchased goods.
Innovation and partnerships: KONE’s R&D expenditure
in 2025 continued to support the development of both
new sustainable innovations and the enhancement of
existing solutions and services. During the year,
sustainability-linked R&D investments totaled EUR 45,5
million (2024: EUR 43.1 million), with key initiatives
including the advancement of KONE’s next-generation
regenerative drive technologies. In parallel, KONE
maintained ongoing investments in digital systems and
operational tools aimed at improving resource efficiency,
manufacturing sustainability, and overall value chain
performance.
In 2025, KONE continued to engage closely with its
key suppliers responsible for the majority of the
company’s Scope 3 emissions related to purchased
goods. Building on the foundation laid in previous years,
KONE actively collaborates with these suppliers through
ongoing dialogue, supplier sustainability training
programs, the development of emissions reporting,
setting clear emission reduction targets and close follow-
up on reduction actions and progress. During 2025, KONE
updated the supplier sustainability scorecard focusing on
reducing carbon, environmental data submission &
compliance and human rights due diligence. This
strengthens transparency and accountability throughout
the value chain. KONE actively looks for new partners and
ways of working to find alternative materials with lower
embodied carbon emissions and to develop processes to
reuse and recycle materials more effectively.
Table 17. Levers to reach Scope 3 emission reduction target by 2030
0
10
20
30
40
50
60
70
80
Baseline 2018 Energy efficiency Material efficiency Innovations and Target year 2030
tCO2e/OR
Board of Director’s Report | Sustainability Statement
60 KONE Annual Review 2025
KONE’s Veturi program called The Flow of Urban Life,
co-funded by Business Finland, fostered collaboration
across a broad ecosystem, involving over 200 partners
including companies, universities, and research
institutions. While the program officially concluded in
2024, its outcomes materialized in 2025 through a range
of innovative solutions. It established a corporate
foresight network to strengthen Finland’s competitiveness
and concentrated expertise in smart urban development.
The program also enabled agile experimentation and
piloting opportunities for small and medium-sized
enterprises.
In the area of smart construction, KONE developed
SiteFlow, a digital solution that streamlined elevator
logistics on construction sites. This innovation allowed
elevators to be used during construction, significantly
improving efficiency and reducing delays. Pilots
demonstrated substantial time and cost savings.
For smart buildings, the initiative advanced digital twin
technologies to simulate and optimize people flow in
urban environments. In field services, KONE introduced
remote elevator maintenance and 24/7 service
capabilities through cloud-connected equipment. Artificial
intelligence and data analytics were used to predict faults
and optimize service visits, resulting in lower emissions
and improved technician experiences.
Sustainability was a core focus, with tools developed
to predict energy consumption and carbon emissions
across product life-cycles. The initiative promoted
sustainable construction logistics and smart maintenance
practices.
Performance against SBTi targets
KONE’s progress on science-based targets for scope 1, 2
and 3 are summarized table 18.
KONE’s annual and near-term (2030) emission
reduction targets and base year information are detailed
in table 22. Greenhouse Gas Emissions intensity. The
metrics for KONE’s energy consumption and mix are
presented in tables 19 and 20 and the energy intensity of
KONE’s own operations in table 21. KONE’s GHG intensity
per net revenue is introduced in table 23.
Table 18. KONE’s progress on science-based targets
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
2018 2023 2024 2025
tCO2e
Greenhouse gas emissions from own operations (Scope 1 and 2)*
Vehicle fleet Heating fuels Cooling gases Electricity consumption District heat consumption
0
10
20
30
40
50
60
70
80
0
2
4
6
8
10
12
14
2018 2023 2024 2025
MtCO2
Product-related greenhouse gas emissions (Scope 3)**
Lifetime energy consumption of products, tCO2e Materials used for products and packaging, tCO2e
Emissions relative to ordered products, tCO2e/order
* KONE’s environmental reporting covers over 90% of our Scope 1 and 2 emissions. The remaining emissions are extrapolated to cover 100% of KONE’s
operations.
** The product-related Scope 3 calculations are based on latest life cycle assessment data and products ordered from KONE during the reporting year.
Board of Director’s Report | Sustainability Statement
61 KONE Annual Review 2025
2.2.5 Carbon credits
KONE continues to commit to delivering actual emission
reductions throughout its operations, product offerings,
and entire value chain and has not included compensation
in its science-based GHG emission reduction targets.
Compensation is used only as a final measure to assist
customers in achieving carbon neutrality. KONE
compensates for both direct and indirect CO2 emissions
associated with service activities under KONE Care DX
service contracts. Additionally, KONE provided customers
with the option to compensate embodied CO2 emissions
up to the handover of selected KONE DX elevators.
Following proactive emission reduction efforts across
KONE’s manufacturing facilities, the remaining emissions
are compensated to maintain carbon-neutral
manufacturing operations worldwide.
KONE partners with a third-party organization to offset
emissions through carbon credits, selecting projects
across various continents that deliver diverse climate
benefits, including reforestation in Colombia, solar and
biogas energy in Thailand, hydropower in China and Laos,
wind and hydropower in Vietnam, and clean cookstove
initiatives in Mali that prevent deforestation. All projects
are conducted outside the EU and hold Gold Standard®
certification. Beyond their positive climate impact, these
initiatives also contribute to multiple United Nations
Sustainable Development Goals (UNSDG), delivering
social and environmental advantages to local
communities.
A total of 32,500 tCO2e (2024: 28,900 tCO2e)
equivalent outside of KONE’s value chain was cancelled in
the reporting period covering emissions in 2024 and
2025.
2.2.6 Internal carbon pricing
In 2025, KONE continued its pilot program for an internal
carbon cost (initially launched in 2021) to drive the
change and motivate all units to reduce their carbon
emissions. The internal carbon cost functions as a
shadow expense within KONE’s operational profit and loss
statement, meaning it is utilized solely for internal
reporting purposes and does not result in actual cash
transactions either within or outside the company.
The internal carbon cost covers KONE’s total Scope 1
emissions (107,300 tCO2e in 2025) and market-based
Scope 2 emissions (1,100 tCO2e in 2025), representing
approximately 1% and 0.01% of KONE’s overall GHG
emissions. The price applied is EUR 100 per metric ton of
CO2e, reviewed annually. This figure is based on the cost
of emissions allowances (EUA) traded under the EU
Emissions Trading Scheme (ETS), commonly used in the
industry as a shadow price. KONE’s carbon pricing
framework is not aligned with the EU Taxonomy’s
screening criteria
Board of Director’s Report | Sustainability Statement
62 KONE Annual Review 2025
2.2.7 Metrics
Table 19. Energy consumption
MWh 2025
2024
2023
Fuel from coal and coal products
0
0
0
Fuel from crude oil and petroleum products (of which 99% from vehicle fuels)
1
415,000
424,500
421,700
Fuel from natural gas 10,900
15,900
28,700
Fuel from other fossil sources 0
0
0
Purchased or acquired electricity, heat, steam, and cooling from fossil sources 8,800
11,500
14,700
Total fossil energy consumption 434,700
451,900
465,100
Consumption from nuclear sources
0
0
0
Fuel consumption from renewable sources, including biomass
900
500
700
Renewable natural gas
2
14,300
15,800
0
Purchased or acquired electricity, heat, steam, and cooling from renewable sources 67,800
69,700
65,100
The consumption of self-generated non-fuel renewable energy 9,200
8,600
6,200
Total renewable energy consumption 92,200
94,600
72,000
Total energy consumption 526,900
546,500
537,100
1
Majority
of crude oil and petroleum products comprise of vehicle fuels (410,900 MWh)
2
Natural gas RECs/GOs
Table 20. Energy consumption by energy sources
% 2025
2024
2023
Fossil 83%
83%
87%
Nuclear 0%
0%
0%
Renewable 17%
17%
13%
Table 21. Energy intensity
Energy intensity
1
2025
2024
2023
Energy intensity in KONE’s own operations (MWh/MEUR) 47
49
49
1
Energy intensity in own operations is not an operational target for KONE, but an ESRS reporting requirement. However, KONE constantly improves the energy efficiency of its products. Pursuant to EU regulation (EC) No 1893/2006, all
KONE’s revenue stems from operations in high climate impact sector including the manufacture of elevators, escalators and doors (NACE code C28.22 ‘Manufacture of lifting and handling equipment’). However, a substantial share (64%)
of the total revenue in 2025 can be attributed to the non-high climate impact sectors, such as our Service and Modernization business. The energy intensity is calculated based on total energy consumption per the net sales from the
consolidated activities. Refer to Section 2.1 in the Notes of the consolidated financial statement for information on the net sales.
Board of Director’s Report | Sustainability Statement
63 KONE Annual Review 2025
Table 22. Greenhouse gas emissions
Retrospective
2
Milestones and targets
3,4,5
Base year
2018
2023
2024
2025
% change
between 2024
and 2025
2030, %
Annual % target/base year
Scope 1 GHG emissions
Gross
Scope 1 GHG emissions (tCO2eq)
119,600
114,000
113,800
6
110,200
-
3%
-
50%
-
8
%
Percentage of Scope 1 GHG emissions from regulated
emission trading schemes (%)
1
0
0
0
0
0
0
0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2eq) 36,900
32,000
31,500
29,800
-5%
Gross market-based Scope 2 GHG emissions (tCO2eq)
8
35,100
4,900
4,400
1,100
-75%
-50%
-97%
Significant Scope 3 emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2eq)
12,530,600
11,837,500
10,
181,000
1. Purchased goods and services 4,285,300
4,288,100
4,026,700
3,614,600
-40% (per product order)
4. Upstream transportation and distribution
7
108,600
107,400
149,300
5. Waste generated in operations
2,600
2,200
1,800
-18%
6. Business traveling
18,000
20,500
21,400
4%
11. Use of sold products
Lifetime (included in total Scope 3)
8,308,800
8,113,300
7,680,700
6,393,900
-
40% (per product order)
Annual (excluded from total Scope 3) 387,600
364,000
352,200
292,500
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)
12,676,600
11,982,800
10,321,000
Total GHG emissions (market-based) (tCO2eq)
12,649,500
11,955,700
10,292,300
1
KONE is not regulated under emission trading schemes.
2
Biogenic emissions, not accounted for in the table, totaled 2,700 tons of CO2e.
3
KONE has a combined target for Scope 1 and 2 emissions and an intensity target for the Scope 3 categories (1 & 11).
4
KONE’s Scope 3 intensity target (set in 2020) results in absolute emission reductions by 2030 based on Science-Based Target initiative’s guidelines.
5
KONE has reduced its net Scope 1 emissions by 30% compared to the 2018 baseline.
6
Net Scope 1 emissions 107,300 tCO2 includes natural gas RECs/GOs certificates, gross emissions without certificates 110,200 tCO2. Total gross GHG emissions (location-based) were 10,304,800 tCO2e and total gross GHG emissions
(market-based) were 10,276,100 tCO2e.
7
The 2025 logistics calculation method has been updated, and therefore logistics figures from 2023 and 2024 are not comparable with 2025
8
KONE’s Scope 2 market-based emissions for 2023 and 2024 have been restated due to the adoption of more accurate emission factors in 2025
Table 23. Greenhouse gas emissions intensity
GHG intensity per net revenue
1
2025
2024
2023
Total GHG emissions (location-based) per net sales (tCO2eq/MEUR) 916.6
1,079.7
1,168.6
Total GHG emissions (market-based) per net sales (tCO2eq/MEUR) 914.1
1,077.2
1,165.9
1
The GHG emission intensity is calculated based on gross total location-based or market-based GHG emissions divided by the net sales from the consolidated activities. For more on net sales, see section 2.1 in the Notes to the
consolidated financial statements.
Board of Director’s Report | Sustainability Statement
64 KONE Annual Review 2025
2.2.8 Reporting principles
KONE employs an operational control methodology to
consolidate energy consumption and GHG emission data.
Initially, data is gathered at the subsidiary or
manufacturing facility level and inserted into the
environmental performance system, before being
aggregated on a global scale. Manual data collection,
estimations, and emission factors introduce some
uncertainty into the environmental metrics. To mitigate
this, KONE has implemented standardized emission
reporting procedures over time, including detailed
reporting guidelines, comprehensive training, and internal
reviews and validations.
KONE follows the three standards provided by the
Greenhouse Gas Protocol of the World Resource Institute
and the World Business Council for Sustainable
Development in its GHG accounting: the GHG Corporate
Accounting and Reporting Standard, the GHG Protocol
Scope 2 Guidance, and the Corporate Value Chain (Scope
3) Accounting and Reporting Standard.
The energy data collection accounts for 99% of
KONE’s Scope 1 and 2 emissions. Reporting principles and
scope cover countries globally, including all KONE
manufacturing sites.
Calculation principles for Scope 1 and 2 emissions
Energy consumption covers both direct and indirect
Energy consumption covers both direct and indirect use
of renewable and non-renewable electricity, liquefied
petroleum gas (LPG), natural gas, district heating and
self-generated electricity (such as solar power). Data is
obtained from invoices and reports provided by third-
party service providers. Activity data is gathered quarterly
from the manufacturing facilities.
Scope 1 emissions have been calculated based on
energy consumption data and national emission factors
from the UK Department for Environment, Food and Rural
Affairs (DEFRA) along with certain supplier-specific
factors, such as biofuels used in Finland. Scope 1 net
emissions presented in this statement include renewable
natural gas RECs/GOs whereas the gross emissions (as
shown in the GHG emissions table 22, footnote 6) are
calculated excluding these. This approach aligns with the
evolving reporting guidelines, concerning the purchase of
biomethane certificates, which currently cannot be
calculated into gross Scope 1 emissions. KONE acquires
renewable natural gas in Canada through biomethane
RECs and in France through Biomethane Guarantees of
Origin.
Scope 2 emissions have been calculated using both
market- and location-based methods. Renewable energy
guarantees of origin subject to European Energy
Certificate System (EECS) and Energy Attribute
certificates (e.g., Renewable Energy Certificates (RECs),
International Renewable Energy Certificates (I-RECs),
Tradable Instruments for Global Renewables (TiGRs),
have been acquired for the purchased renewable
electricity. In 2025, KONE’s purchased renewable
electricity consumption consisted of close to 100% of
contractual instruments, of which approximately 23%
were used for the sale and purchase of energy bundled
with attributes about energy generation and about 77%
for the sale and purchase of unbundled energy attribute
claims. Over 99% of KONE's Scope 2 energy use
constitutes renewable electricity. In 2025, market-based
Scope 2 emissions were 1,100 tCO2, with half from non-
renewable electricity and half from district heating.
In the market-based approach, supplier-specific
emission factors are applied for Finland and the Czech
Republic, alongside data from the Association of Issuing
Bodies (AIB) European Residual Mix Report and Reporting
principles, as well as International Energy Agency (IEA)
emission factors for untracked purchased electricity.
KONE’s Scope 2 market-based emissions for 2023 and
2024 have been restated due to the adoption of more
accurate emission factors. This update resulted in an
increase in reported emissions for 2023 and 2024;
however, the figures are now aligned and comparable
with the 2025 data. For the location-based method,
emission factors from both AIB and IEA are utilized.
The direct biogenic carbon emissions are calculated
by multiplying the energy in TJ (2025: 49TJ) of used
biofuels with emission factors from Statistics Finland.
Calculation principles for Scope 3 emissions
KONE has reported all significant and relevant Scope 3
categories based on GHG Protocol Scope 3 Inventory
guidelines. Annually, KONE assesses the relevance and
magnitude of all Scope 3 categories and updates the
inventory when needed. Emissions from Scope 3 category
1 purchased goods and services are calculated for KONE’s
two main product types, elevators and escalators, for new
construction, and for those modernization projects where
new elevator units are delivered to the customer. The
total emissions are based on the most sold products in
each region multiplied by the number of all products
ordered during the reporting year and the life-cycle
assessments for representative products in each region,
which are lined with KONE’s third-party verified
Environmental Product Declarations (EPDs). Scope 3
emissions, which include product and value chain
emissions, stem from activities outside KONE’s direct
control. The pace of decarbonization in related industries
may influence KONE’s ability to reduce these emissions.
To address this, KONE actively collaborates with key
suppliers and customers to reduce emissions associated
with materials and to explore innovative energy solutions
in the countries where its products are deployed.
The emission factors are from the Ecoinvent V3.4
database or EPDs from the material manufacturers.
Scope 3 category 4 Upstream Transportation and
Distribution (logistics) data covers the transportation of
products from KONE’s manufacturing units to distribution
centers. Transportation to local warehouses or installation
sites is included for cases where KONE’s manufacturing
units are responsible for transportation. Spare part
deliveries are also within the reporting scope. Due to data
availability constraints, limited inbound logistics of
materials to KONE’s manufacturing sites are included.
Product and spare parts logistics data has been
calculated using an in-house logistics emission calculation
tool and emission factors from DEFRA.
Scope 3 category 5 Emissions for waste in own
operations are calculated by multiplying the collected
waste data with the emission factors retrieved from
DEFRA for each waste type and treatment method. The
calculation does not cover waste from KONE’s installation
sites, which is normally treated according to KONE
customers' waste management processes and applicable
laws and requirements.
Scope 3 category 6 Business air travel data has been
collected from KONE’s biggest travel agency and some
local travel agencies. The emission calculations are
aligned with DEFRA’s methodology.
Board of Director’s Report | Sustainability Statement
65 KONE Annual Review 2025
The Scope 3 category 11 operational carbon emissions
of sold equipment are calculated based on lifetime energy
consumptions and emission factors from the latest
publication of the IEA. The average annual energy
consumption is calculated from KONE’s delivered
products according to the ISO 25745 standards for the
most sold configurations and expected usage profiles in
each geographical region. The average annual energy use
of products is multiplied by the expected lifetimes of 25
years for elevators and 15 years for escalators. These
lifetimes reflect typical industry standards as defined in
the Product Category Rules (PCR) for Lift Products and
the complementary PCR for escalators and moving walks.
The emission factors represent the order quantity-
weighted average emission factor for each region. The
total global operational carbon emissions are calculated
by multiplying the average operational carbon emissions
of each region with the region-specific order quantities
and then aggregating the results. KONE is constantly
improving data quality by working with suppliers and
partners for more transparent and efficient data.
Data estimation methods and outcome uncertainty
As energy consumption and waste data are not
consistently available in real time or immediately after the
close of each reporting quarter, KONE has estimated its
fourth quarter (Q4) figures. To improve data quality and
accuracy energy and waste consumption, as well as
Scope 1, Scope 2, and Scope 3 (category 6) emissions for
Q4, have been calculated based on the average of actual
data from Q1–Q3/2025. For consistency, Scope 3
(categories 4 and 5) are extrapolated in a similar manner.
Similarly, KONE estimates the yearly order quantities
required for Scope 3 category 1 and 11 calculations for Q4
based on previously known data.
These estimation techniques introduce an inherent
level of outcome uncertainty, as actual Q4 values may
deviate from averages or estimates applied.
Changes in 2025
In 2025, KONE’s Scope 3 category 1 purchased goods and
services figures have been calculated to ensure
geographic consistency with the baseline year and
improve comparability. As a result of this update, Scope 3
category 1 figures for 2023 and 2024 have been restated,
resulting in a 3% decrease for 2023 and a 2% decrease
for 2024.
KONE’s Scope 3 cat 4 greenhouse gas emissions
related to logistics (transportation and distribution)
amounted to 149,300 tCO₂e, representing a 39% increase
from 2024 (107,400 tCO₂e). This deviation is primarily
attributable to a methodological refinement: emission
factors for freight transport were updated to reflect more
accurate values. As a result, the reported emissions more
accurately reflect the environmental impact of logistics
operations, even though the underlying transport volumes
remained relatively stable year-on-year. In addition, the
2024 Scope 1, Scope 2, and Scope 3 (categories 5 and 11)
emissions have been restated following the receipt of the
actual values for Q4 2024.
EU Paris-aligned Benchmarks
Considering the exclusion criteria stated in the Article 12
of the Commission Delegated Regulation (EU) 2020/1818,
KONE is not excluded from the EU Paris-aligned
Benchmarks.
Board of Director’s Report | Sustainability Statement
66 KONE Annual Review 2025
2.3 E5 Resource use and
circularity
2.3.1 Material impacts, risks, and
opportunities
KONE has identified resource use and circularity as a
material financial opportunity, with its Modernization
business positioned as a key growth driver, supported by
a global market of over 10 million units ready to be
modernized. Modernization and Service business lines
represent over 60% of KONE’s sales, signaling the shift
towards a circular business approach. As part of the Rise
Strategy, the Cut Carbon and Drive Modernization shifts
both accelerate sustainable and circular growth, through
innovative, energy efficient solutions and material
resource optimization.
The material opportunity is described in table 24,
which includes relevant information on time-horizon,
value chain information and the management actions
taken to address the IRO. For the process used to identify
and assess material IROs, see section 1.5.
KONE’s solutions are designed to help customers
extend the lifetime of their buildings by safely prolonging
the lifespan of elevators and escalators, while
simultaneously reducing the carbon footprint of both the
equipment and buildings. Elevators and escalators
typically have a lifespan of around 25 years for elevators
and 15 years for escalators. With KONE’s maintenance
and modernization solutions, the lifetime can be extended
even further for both escalators and elevators,
significantly reducing the need for premature
replacements and supporting more sustainable building
operations. By integrating connectivity into equipment
modernization, KONE enables intelligent maintenance
capabilities and enhance KONE’s ability to proactively
identify future modernization needs. Furthermore, by
growing KONE’s service base and addressing
opportunities outside it, the company can capture
additional modernization opportunities.
2.3.2 Policies
KONE’s Environmental Policy Statement outlines the
company’s purpose of shaping the future of cities to be
more sustainable and circular by improving the life-cycle
impacts of its solutions through circular design. This
policy also supports the prevention of waste generation
by extending the lifetime of products and equipment and
waste minimization through circular approaches. See the
table 13 for key policies related to resource use and
circularity.
Beyond policy commitments, KONE’s solutions are
developed based on core design principles of durability
and modularity, ensuring long-lasting and sustainable
performance. For example, the Design for Disassembly
guidelines enable easy deconstruction of products,
encouraging modernization, resource efficiency and
material recovery throughout the life-cycle. KONE Design
for Reliability guidelines ensure that product designs are
tested to for performance in diverse environments,
ensuring long life-cycles across varying climates.
Together, these design frameworks support the
implementation of KONE’s circularity ambitions outlined in
the Environmental Policy Statement.
2.3.3 Actions
KONE’s Modernization business offers modular, durable
and energy efficient life-cycle solutions, that significantly
reduce the use of primary raw material and improve
equipment energy efficiency by up to 70%. Modernization
solutions enhance repairability and enable component-
level upgrades, which can be recycled or reused. This
approach significantly reduces life-cycle emissions, as
verified by KONE’s Life-cycle Assessments (LCAs),
conducted in accordance with internationally recognized
ISO 14040 and ISO 14044 standards.
Depending on the stage of the equipment life-cycle
and the needs of the building, there are different types of
KONE modernization packages available for customers,
with options for both KONE equipment and non-KONE
equipment. With KONE Replace, a new solution is installed
to replace an old one, through which the life-cycle of the
building is improved with new technology. KONE AddNew
modernizes and extends the life of old buildings and
improves future accessibility by retrofitting a new solution
into existing buildings. KONE Upgrade offers circular
benefits for customers, by strategically upgrading and
improving specific components of the solution within the
building. KONE Upgrade aligns with activity 5.1 Repair,
refurbishment and remanufacturing in the EU Taxonomy,
representing 11,2% of KONE’s Taxonomy aligned revenue
in 2025. The KONE 24/7 Connected Services predictive
maintenance supports all modernization efforts by
enabling condition-based upgrades to extend the life
span of the equipment while reducing unnecessary
maintenance calls and downtime.
KONE is actively developing its Circularity Strategy to
further support the strategic targets of the Rise Strategy,
aiming to create long-term customer value and enhance
KONE’s global circularity offering through various pilots,
projects and partnerships.
During 2025, KONE launched the KONE Renaissance
Program, a five-year global research, development, and
innovation initiative co-funded by Business Finland. The
initiative brings together key industry stakeholders to
drive new sustainable innovations and business models.
The focus lies on transforming existing buildings to low
emission living and working by 2030. The program
supports KONE in meeting customer needs globally and
Table 24. Material impacts, risks, and opportunities related to resource use and circularity
Material topic
(time horizon) Material impacts, risks and opportunities
1
Management response
Resource use and
circularity in own
operations (long-
term)
↑ Opportunity
Modernization business minimizes primary raw
material use, improves energy efficiency, and
contributes to lower life cycle emissions.
KONE develops the modernization offering with
principles of durability, modularity, upgradability,
digital connectivity and disassembly to build long
term capabilities in line with a life cycle business
model
Board of Director’s Report | Sustainability Statement
67 KONE Annual Review 2025
supports the company’s ambition to transform urban
renewal through digital and sustainable modernization.
2.3.4 Targets
KONE has defined a voluntary target related to resource
use and circular economy opportunities within KONE’s
modernization business as a part of the Rise Strategy.
KONE has a mid-term target of double-digit growth for its
global Modernization business. In 2025, KONE achieved
close to 15% growth in Modernization business compared
to 2024.
The target was set in alignment with key stakeholders
of the strategy development process. The target aligns
with KONE’s long-term circularity objectives established in
the Environmental Policy Statement that outlines KONE’s
commitment to the circular and sustainable
transformation of cities.
The data used for the target has been assured in the
financial assurance process and progress against the
targets will be reported annually. See the Annual Review
for detailed financial information. KONE’s circularity
initiatives and targets will continue to be developed in
2026.
Board of Director’s Report | Sustainability Statement
68 KONE Annual Review 2025
3. Social information
3.1 Own Workforce (S1)
3.1.1 Material topics, risks, and
opportunities
Working conditions in own operations, relating to health
and safety, are identified as a material topic for KONE. For
details on the process used to identify and assess
material IROs, see section 1.5. Material IROs related to
own workforce are described in table 25, which includes
relevant information on time-horizon, value chain
information and the management actions taken to
address the IRO.
Given KONE’s global footprint in new building,
modernization and service activities, the company has
recognized various potential health and safety impacts for
its own workforce. Inadequate safety measures can result
in increased incident rates, serious injuries or even
fatalities.
All people in KONE’s own workforce who could be
materially impacted by KONE are included in the scope of
this disclosure. Certain worker groups, especially those
working on construction or maintenance sites face
elevated exposure to occupational hazards due to the
nature of their work. Data from KONE Safety Solution
(KSS), KONE’s global web-based safety reporting
platform, show that some worker group, especially those
involved in installation and maintenance activities are
exposed to the highest safety risks. KONE has identified
contact with moving objects and falls from height as the
primary scenarios leading to serious injuries. The most
common types of work-related injuries include cuts,
strains, bruises, and contusions.
KONE recognizes that it operates in countries where
there is a higher risk of human rights violations, including
risks of child and forced labor. Within its own operations,
elevated risks of forced labor have been identified in
outsourced facility services such as cleaning, catering,
and security. In South-East Asia, the risk of child labor is
notably higher. KONE’s highest risks, however, are found
in its supply and delivery chains, particularly in Africa,
Asia, and China. Although human rights are not
considered material for KONE based on the DMA, KONE
continuously monitors risks and impacts relating to human
rights. More on human rights policy and management, see
sections 3.1.2, 3.1.3 and 3.1.4.
By embedding KONE’s core principles of safety, quality
and sustainability into KONE’s operations and strategy,
KONE ensures that it addresses material impacts on its
workforce effectively. This commitment is supported by
KONE’s integrated management system, described in
section 3.1.2., and the establishment of specialized
boards and committees that provide strategic oversight
and drive continuous improvement in management
practices.
KONE’s workforce characteristics and numbers
KONE’s own workforce is composed of three main groups:
KONE employees, agency workers, and self-employed
contractors, of which KONE employees represent the
majority. KONE employees include permanent employees,
fixed-term employees and trainees. The workforce
operates across 68 countries globally, working in KONE
offices and manufacturing facilities, as well as at
customer sites.
Employee numbers are reported as headcount, with
demographic data sourced from KONE’s Human
Resources system at the end of each reporting period.
Some recently acquired KONE units are excluded if
detailed personnel data is not yet available. In other
sections of the Board of Directors’ Report, employee
figures are presented as full-time equivalents (FTEs),
which include staff from recent acquisitions. As a result,
employee total figures may vary slightly across sections
of the Annual review. These variances are not considered
significant. For detailed information on employee FTE
headcount, see tables 26-30.
Table 25.
Material
impacts, risks
,
and opportunities related to own workforce
Material topic
(time horizon) Material impacts, risks and opportunities Management response
Health and
safety in own
operations
(medium-long-
term)
↓ Negative impact
KONE operates in an industry that poses multiple safety
risks. With installation and service operations conducted
worldwide, we have identified several potential health
and safety impacts on our workforce, particularly those
involved in tasks on the mentioned sectors. A failure in
safety measures can result in increased incident rates,
and individual serious injuries, or even fatalities.
Integrated management system, including
health and safety, as well as risk management
framework, applicable to the full scope of own
workforce
Inclusive approach to health and safety
practices, involving non-employees into
company safety initiatives such as safety
campaigns, and setting requirements for their
competency, methods and tools
Table 26. Employee headcount in top 10 countries
Country
Number of employees
2025 (headcount)
Number of employees
2024 (headcount)
China
1
20,441
21,783
India 6,149
5,731
United States
of America 5,698
5,721
France 3,397
3,287
Germany 2,965
2,922
Finland 2,809
2,643
Italy 2,184
2,097
United
Kingdom 1,837
1,800
Australia 1,208
1,169
Mexico 1,175
1,147
1
China is the only country that falls under the ESRS disclosure requirement,
all other countries are voluntarily disclosed.
Board of Director’s Report | Sustainability Statement
69 KONE Annual Review 2025
Table 30. Number
of employees who have left KONE during
the reporting period
2025
2024
Employees
that have left
KONE 7,632
7,793
Total rolling
12-month
turnover rate
1
12.2%
11,5%
1
Total turnover 2025 (12.2%) = Permanent employee + Expatriate
leavers (7,632) divided by average headcount in last 12 months
(62,665). Fixed term and Trainee employees (530) are not counted in
the turnover.
Table 27. Employee headcount by contract type and region
Headcount Americas
APMEA
Europe
Greater China
Total
Number of employees 8,036 (7,961)
13,160 (12,407)
21,874 (21,070)
21,701 (22,964)
64,771 (64,402)
Number of permanent employees 8,030 (7,955)
12,856 (12,146)
20,965 (20,266)
21,363 (22,821)
63,214 (63,188)
Number of temporary employees
1
6 (6)
304 (261)
909 (804)
338 (143)
1,557 (1,214)
Number of non-guaranteed hours
employees
2
3 (n/a)
8 (n/a)
15 (n/a)
18 (n/a)
44 (n/a)
Number of full-time employees
3
8,034 (7,959)
13,143 (12,376)
21,087 (20,311)
21,700 (22,964)
63,964 (63,610)
Number of part-time employees
3
2 (2)
17 (31)
787 (759)
1 (0)
807 (792)
Figures in brackets are values for year 2024
1
Includes students and trainees
2
In 2024 non-guaranteed hours for employees could not be reported because the data was not collected in HR systems.
3
Voluntary disclosure
Table 29. Employee headcount by contract type and gender
Headcount Female
Male
Other
1
Not reported
Total
Number of employees 7,879 (7,631)
56,363 (56,269)
12 (13)
517 (489)
64,771 (64,402)
Number of permanent employees 7,642 (7,435)
55,137 (55,353)
11 (12)
424 (388)
63,214 (63,188)
Number of temporary employees
2
237 (196)
1226 (916)
1 (1)
93 (101)
1,557 (1,214)
Number of non-guaranteed hours
employees
3
5 (n/a)
39 (n/a)
0 (n/a)
0 (n/a)
44 (n/a)
Number of full-time employees
4
7,494 (7,263)
55,946 (55,855)
12 (13)
512 (479)
63,964 (63,610)
Number of part-time employees
4
385 (368)
417 (414)
0 (0)
5 (10)
807 (792)
Figures in brackets are values for year 2024
1
Gender as specified by the employees themselves
2
Includes students and trainees
3
In 2024 non-guaranteed hours for employees could not be reported because the data was not collected in HR systems.
4
Voluntary disclosures
Table 2
8
. Employee
headcount
by gender
Gender
Number of employees
2025 (headcount)
Number of employees
2024 (headcount)
Male 55,363
56,269
Female 7,879
7,631
Other
1
12
13
Not reported
2
517
489
Total
employees 64,771
64,402
1
In some countries it is possible for persons to legally register themselves as
having a third, often neutral, gender, which is categorized as ‘other’ in the
table above.
2
Employees migrated from other system without recorded gender or recent
hires who have not yet recorded their gender data in KONE HR system.
Board of Director’s Report | Sustainability Statement
70 KONE Annual Review 2025
3.1.2. Policies
Health and safety commitment policies
Recognizing that health and safety management is a
cross-functional responsibility, KONE has implemented
several policies addressing health and safety impacts on
its own workforce. These policies are summarized in table
31.
Adherence to KONE policies, rules, and established
working methods is assessed through the KONE
management system audit scheme, which covers 100% of
the company’s business units. The results from the audit
scheme are systematically used to improve safety
performance by developing corrective plans and following
up on implementation. Potential conflicts between efforts
to prevent or mitigate negative health and safety impacts
and competing business demands are managed by
utilizing a cross-functional safety governance model. For
details on KONE’s governing bodies for health and safety,
responsible for aligning policies with strategic objectives,
se section 3.1.3. For information on KONE’s cross-
functional sustainability governance, including safety, see
section 1.3.1.
Human rights policy commitment
Health and safety is one of KONE’s salient human rights,
and one of KONE’s non-negotiable core principles,
forming an integral part of the company’s broader
commitment to respecting human rights. KONE is
committed to respecting and endorsing human rights
including those set out in:
The International Bill of Human Rights
The United Nations Guiding Principles on Business and
Human Rights
The basic labor rights as defined by the International
Labour Organization (ILO) including the ILO
Declaration on Fundamental Principles and Rights at
Work
The Organisation for Economic Co-operation and
Development (OECD) Guidelines for Multinational
Enterprises
KONE’s publicly available Human Rights Policy details
KONE’s role, objectives, and responsibilities in fulfilling its
commitment. The policy is reviewed annually as part of
KONE’s policy review process. In line with ILO standards,
KONE strictly prohibits all forms of child labor. The policy
states that KONE does not employ workers under the age
of 15 or below local mandatory schooling age, whichever
is higher, and has set the minimum age for hazardous
work at 18. The Human Rights policy also prohibits all
forms of modern slavery, including forced labor across
KONE’s operations and value chains. KONE ensures timely
compensation for employees, including contractors,
temporary workers, and part-time staff, with no unlawful
deductions or withdrawals or practices that may indicate
forced or exploitative labor.
KONE adheres to all applicable local laws, relevant ILO
conventions and industry standards regarding working
hours, wages, benefits, and overtime.
In cases where local legislation conflicts with ILO or
other relevant standards, such issues are escalated to the
Sustainability Disclosure Board, which is accountable for
human rights governance at KONE. As a committed
participant in the UN Global Compact, KONE has
integrated its principles, including those related to human
rights, into the company’s policies and procedures.
Global Management Systems
KONE Global Management System integrates quality,
environmental, health and safety management to support
strategic initiatives, and drive consistent, high-standard
practices across all operations. It encompasses all global
activities, offerings, and services, aiming to deliver
customer value, while ensuring safe and sustainable
business performance. The system provides, for example,
directives for workplace accident prevention and
occupational health and safety management in addition to
local laws.
The integrated management system adheres to
Quality management (ISO 9001), Environmental
management (ISO 14001) and Occupational Health and
Safety management (ISO 45001) standards, covering
100% of its own workforce, including contractors.
To drive continuous improvement, business units are
certified to reinforce KONE’s commitment to safety,
quality, and environment. In addition to KONE’s global
management system, many KONE units are covered under
the KONE group-wide certification OneISO’, while others
maintain individual certificates, issued by local accredited
bodies. Some units have additional local or international
certificates including Information Security management
(ISO 27001), Energy Efficiency Management (ISO 50001)
and/or the Lifts Directive 2014/33/EU, that all further
enhance the health and safety of both workers as well as
consumers and end-users.
KONE is actively working to expand the scope of its
group certificates and gradually integrate local
certifications into the unified OneISO framework. The
onboarding of additional KONE units under the group
certificates supports the harmonization of global
management practices and ensures compliance with both
international standards and KONE operating model (KONE
Way).
The table 32 shows the proportion of employees
covered by ISO certifications, either local or OneISO
certificates, relative to KONE’s global headcount.
3.1.3 Actions
Engaging with own workforce
KONE is committed to being a great place to work for,
empowering employees and actively involving them in
shaping their workplace experience. The company’s
annual global engagement survey, Pulse, plays a central
Table 32. Share of KONE employees working in an ISO certified
unit
ISO standard
Share of employees
2025
Share of employees
2024
1
ISO 9001 87%
87%
ISO 14001 77%
78%
ISO 45001 67%
58%
1
The 2024 figures were restated following the identification of a calculation
error
Board of Director’s Report | Sustainability Statement
71 KONE Annual Review 2025
Table 31. Key
policies related to health and safety management, human rights and business conduct
Policy Topics Scope Short description of content Management bodies Published/Updated
Global Management
System
S1, S2, S4 All KONE entities and units, own
workforce, contractors and partners
Global management system designed to ensure high and consistent
health and safety standards across all operations worldwide.
Executive Board 02/2025
Health and Safety
Policy Statement
S1, S2, S4 Own workforce, partners and users of
KONE equipment
KONE’s commitment to the applicable safety requirements. Provides
a framework for safety objectives and responsibilities.
President and CEO 12/2024
Risk Management
Policy
S1 All KONE entities All KONE processes, procedures, facilities and premises shall be safe
without compromising the health of employees and are designed and
maintained in accordance with established safety standards.
Executive Board 10/2023
Global Facilities
Policy
S1, S2 All KONE units, offices and warehouse
spaces for KONE operations
Harmonized selection and management of KONE facilities, with the
objective of providing safe and secure workplace for every user of
the facility.
EVP Supply Chain, Global
Category Manager
Facilities, Local Owners
01/2022
Premises Security
Policy
S1, S2 All new or significantly renovated KONE
facilities
Outlines physical security measures for KONE-operated premises,
whether owned or leased. Facilities must have documented,
executed, and tested emergency procedures and, annual evacuation
and rescue drills.
Executive Board 10/2023
Installation Policy S1, S2 All KONE entities and units; own
workforce, installation subcontractors
Requirements on KONE’s installation works ensuring correct and safe
installation, including the usage of KONE approved installation
methods and tools or risk assessment requirements.
Head of Delivery
Operations Development
01/2022
Travel Policy S1 Own workforce Guidance for work-related travel, including risk assessments and
security advice as well as guidance on employee well-being during
travel.
Executive Board 06/2022. Available
in >30 languages
at kone.com
Human Rights Policy
S1, S2
All KONE entities; own workforce and
value chain workers
KONE’s role, objectives, and responsibilities with respect to its human
rights commitment.
Executive Board
11/2022. Available
in >10 languages.
KONE Code of
Conduct
S1, S2, S4,
G1
Own workforce and all KONE companies The responsible and ethical conduct expected of KONE employees
and companies.
Executive Board 08/2025 Available
in 7 languages
Supplier Code of
Conduct
S2
All suppliers, including suppliers’ own
workforce, suppliers, and third parties
The ethical business practice requirements expected from suppliers,
covering health and safety, bribery and corruption, labor and human
rights, and environmental issues.
VP Global Compliance
01/2020
Distributor
Code of Conduct
S2 All distributors, including distributors’ own
workforce, customers, suppliers, and
third parties
The ethical business practice requirements expected from
distributors, covering health and safety, bribery and corruption, labor
and human rights, and environmental issues.
VP Global Compliance 09/2021
Third party due
diligence policy
S1, S2, G1 All KONE entities and employees and
extends across the value chain to
suppliers, subcontractors, distributors,
agents, joint venture partners, acquisition
targets, and other third parties
KONE’s zero tolerance for bribery, corruption, and other illicit
activities, and defines how business partners are identified,
assessed, and monitored from a compliance perspective.
Executive Board 2025
Codes and
Standards Policy
S4 All KONE units KONE’s expectations for its business units and employees to adhere
to all relevant codes, standards, and regulations in the provision of
KONE solutions and services.
Executive Board 10/2023. Available
in >30 languages
at kone.com
Customer Solutions
Engineering Policy
S4 All KONE units Key principles for delivering safe, high-quality engineering work that
meets all relevant laws, codes, and standards.
Executive Board 02/2019
Anti-Bribery and
Corruption (ABC)
Policy
G1 Own workforce KONE’s zero tolerance for bribery and corruption, covering risk-based
prevention approach, and compliance and reporting guidance for
employees
Executive Board 09/2023
Global Delegation of
Authority Policy
G1 Own workforce Defines when matters need to be escalated to Executive Board
Members,
CEO or Board of Directors.
Executive Board 08/2025
Board of Director’s Report | Sustainability Statement
72 KONE Annual Review 2025
role in fostering transparency and gaining insights into the
employee experience at KONE.
Survey results are made available each year to people
leaders and people partners in each business unit through
an online dashboard. Leaders develop action plans,
communicate results to their teams, and focus on turning
survey findings into concrete improvements that enhance
their work environment.
The 2025 Pulse Survey results show continued
strength in the Engagement Index, reflecting a stable and
positive trend. The survey also highlights growing
momentum in employees’ sense of inclusivity and well-
being. With a 92% participation rate, the results reflect
strong engagement and trust in the process, reinforcing
the belief that employee voices are heard and acted upon.
KONE’s dedication to fostering an inclusive and
supportive workplace is reflected in the way it considers
the perspectives of employees who may be particularly
vulnerable. KONE has established three Employee
Resource Groups (ERGs), which are independently led by
volunteer employees. Each ERG is sponsored by a
member of the Executive Board. These ERGs receive
organizational support and dedicated budgets, serving as
important channels for engaging vulnerable employees
and encouraging open dialogue.
KONE’s people leaders maintain ongoing
communication with their teams, including regular
performance discussions. All individuals, including non-
employees with internal communication platform access,
are invited to participate in company-wide events, such
as the quarterly live CEO Q&A session.
To foster employee involvement and ensure
meaningful input on health and safety matters, KONE
organizes local safety forums enabling participation of
employees and their representatives. These forums are
supported by active involvement from local management
teams, with agendas, decisions and actions managed at a
local level to reflect site-specific needs. KONE also works
closely with Workers' Councils, adapting their structure to
meet legal and cultural requirements of each operating
country.
Another example of efforts to engage with KONE's
workforce, the annual European Employee Forum gathers
KONE employee representatives and senior management
to address topics such as safety, business growth, and
strategy. This forum plays a vital role in promoting open
dialogue between council members and KONE leadership,
supporting the company’s ambition to be a great
workplace.
Methods for workers to express concerns
KONE provides multiple forums and internal reporting
channels for employees to raise work-related concerns.
These include options to report issues directly to a
supervisor, Human Resources, Legal, Safety, or
Compliance functions. For detailed information about
KONE’s confidential reporting channel, KONE Compliance
Line, see section 4.1.3.
KONE has a global web-based platform for health and
safety specific issues, KONE Safety Solution (KSS), which
enables the reporting and management of near-misses
and incidents involving KONE’s own workforce,
subcontractors, third parties, consumers and end-users.
Access to KSS is provided to all KONE employees and
non-employees within KONE’s own workforce, with few
exceptions. Independent contractors and agency workers
without a KONE account are required to report to KONE
supervisors, who then enter the information into KSS. To
ensure access to KSS, the application is deployed on all
KONE mobile phones globally, except in regions where
local legislation restricts direct access. In such cases,
KONE provides alternative local reporting channels.
KONE actively promotes the reporting of near-misses
and incidents through global campaigns, internal
publications, and safety network meetings. The company
also provides Incident and Near Miss Reporting training,
translated into most local languages. To monitor
awareness and usage of KSS, KONE tracks the number of
reports submitted, completion rates of safety reporting
eLearning, and local safety passport trainings.
KONE assesses awareness, trust, and development
needs in its reporting through multiple methods including
the Pulse Employee Survey. More information on
assessment methods, see section 4.1.3.
As outlined in KONE’s Management System, the
company recognizes that mistakes and errors causing
near-misses or incidents may occur unintentionally. In
such cases, individuals are not blamed, however,
deliberate violations are not tolerated. KONE’s Supplier
and Distributor Codes of Conduct, which complement the
KONE Code of Conduct, reinforce the company’s non-
retaliation policy for concerns reported in good faith. For
more on the Codes, see sections 3.2.2 and 4.1.2.
Mitigating negative health and safety impacts
KONE is dedicated to addressing situations where its
actions might negatively impact its workforce by refining
KONE's processes, services, and products, and driving
safety awareness. KONE policies and work methods, as
well as every workplace, are evaluated for business and
workplace risks, including health and safety. Risk
management processes are covered in section 1.3.2, and
key health and safety policies in section 3.1.2.
KONE’s global, cross-functional safety and quality
leadership team plays a vital role in ensuring alignment
between policies, safety initiatives and strategic
objectives. It fosters open dialogue across functions and
stakeholders to build support for, evaluate, and maintain
the effectiveness of safety measures. The team conducts
monthly reviews of safety performance, achievements,
and upcoming plans, focusing on identifying risks and
opportunities, assessing internal support needs, and
agreeing on short- and long-term actions.
To further strengthen health and safety performance
and drive strategic safety initiatives, KONE’s Global Safety
Development Team, operating under the Global Safety
and Quality Development Function, provides guidance
Table 33. Engagement channels – Own workforce
Employee engagement
channel Management bodies/ Responsible
Pulse engagement
survey
Talent and Culture Center of
Expertise, which reports to the
Senior Vice President, Talent and
Culture
European Employee
Forum
Executive Vice President,
People and Communications
Safety Forums Depending on local practices
Workers’ Councils Depending on local practices
CEO Q&A sessions Communications Center of
Expertise, which reports to the
Senior Vice President,
Communications
Employee Resource
Groups (ERGs)
Employee led with
EXB sponsor for each ERG
Board of Director’s Report | Sustainability Statement
73 KONE Annual Review 2025
and support across KONE’s operations encompassing the
company’s own workforce, value chain workers,
consumers, and users of KONE equipment.
Based on ambitions, safety performance and lessons
learned, KONE establishes a detailed health and safety
priority action plan for each year with global objectives,
while allowing some flexibility for areas and business units
to specify their specific needs. KONE’s 2025 Safety
Budget Instructions for units addressed the following
high-level objectives:
Driving and establishing practices for proactive safety
management
Major improvement in subcontractor safety
performance
Enabling safety management based on data
Effective and efficient safety communication
Safety is also embedded in the product development
process, where potential hazards affecting the full
product life-cycle are systematically identified. While
some hazards cannot be completely eliminated, they are
minimized to acceptable levels or addressed through
maintenance requirements to replace parts before they
become safety risks, ensuring product safety before
market introduction. Existing products are continuously
developed to further improve their safety and
functionality for all relevant parties.
Determining the actions involves a collaborative,
cross-functional effort, following KONE’s health and
safety governance model which is described in section
1.3.1 and 3.1.2. KONE’s Global safety development team
coordinates company level actions to address actual and
potential impacts, described further in section 3.1.2.
A summary of key company level actions to mitigate
negative health and safety impacts on KONE’s own
workforce is presented in the table 34. See section 3.1.4
for information on how KONE evaluates its health and
safety related initiatives by setting targets and monitoring
the progress against them.
Remediating negative health and safety impacts
Despite KONE’s efforts, its workforce still occasionally
faces negative work-related health and safety impacts. If
an accident occurs, KONE offers health services to its
own workforce to facilitate speedy and complete
recovery. KONE’s priority is to offer immediate crisis
support and ensure the safety of everyone involved,
followed by an internal investigation to determine root
causes and implement remedial actions.
KONE’s safety incident management process and
implementation of remedial actions for health and safety
impacts to own workforce, as well as to any impacted
party such as an end-user, subcontractor or distributor,
follows a standard workflow. Incidents and actions are
recorded into KSS except for some end-user related
cases in the US described under section 3.3.3. For every
accident, root causes are identified and resolved with
corrective actions. High or moderate risk near misses and
incidents are investigated and analyzed by local safety
personnel with support from global functions. The process
includes an evaluation of current risk assessments and
implements targeted corrective actions for negative
health and safety impacts. Remedial actions address root
causes with plans specifying timeframes and
responsibilities. Actions can encompass, for instance, tool
redesign or implementation of a training program.
The success of corrective measures is regularly
evaluated within the context of safety performance
review processes and routine meetings, where safety
managers address issues and share best practices. To
enhance KONE's commitment to being a learning
organization, a collaborative entity, the Incident Review
Board (IRB), was established in the reporting year. The
IRB consists of business and safety leaders from the
business units involved in recent incidents. Should any
corrective action prove ineffective, it will undergo
reassessment for additional measures until the risk level is
acceptable. Lessons learned are shared globally within
KONE and with relevant partners, and incidents are
reported monthly to global functions. The safety
governance model and safety meeting cadence is
described in section 3.1.2 and 3.1.4. KONE’s internal audit
program also serves as a structured evaluation framework
designed to identify and evaluate the effectiveness of
preventive and remedial actions with a robust follow-up
process in case of any non-conformity.
Supporting well-being
KONE has a global benefits and well-being strategy that
provides overall direction for developing local initiatives,
services, and benefits. The well-being framework, Elevate
Your Health and related global resources, are available to
all employees and to non-employees with intranet access.
Leaders are supported with e-learning modules, toolkits,
and concise guides to help them foster well-being within
their teams.
To further embed well-being into the company culture,
KONE has a Well-being Champions program. This initiative
engages volunteer employees from across countries to
raise awareness and promote participation in well-being
activities and services. KONE also has a global mental
health Employee Resource Group called Thrive, led by
employees who actively work to create a culture where
everyone can thrive, stay healthy, and feel comfortable to
seek and receive support for mental health.
KONE wants to ensure certain benefits for all
employees to re-enforce the care for employees’ well-
being. To support financial well-being and to help protect
employees and their family from potential financial loss,
KONE provides access to life insurance to all employees.
KONE also wants all employees to have access to
Employee Assistance Program (EAP) or similar service, to
ensure employees always have low threshold support
available when they are struggling or have worries
regardless of the local health care services. Currently EAP
is in place in forty-seven KONE countries.
Healthcare services are managed locally in
accordance with local practices and regulations. KONE
has a global occupational health principle within its
management system, establishing minimum requirements
for occupational health across all units. Medical insurance
data is reviewed annually to enable preventive actions.
KONE supports flexible working and offers a range of
arrangements available to employees. These include
remote and hybrid work, flexible working time, job
sharing, compressed workweeks, and part-time work. To
further support work-life balance, many local units offer
family-related benefits, including childcare, eldercare, and
family leave.
Board of Director’s Report | Sustainability Statement
74 KONE Annual Review 2025
Managing Human Rights impacts
KONE has a Human Rights Working Group, consisting of
members from all areas of KONE, that monitors national
and international policy developments to ensure
compliance with regulatory requirements and The United
Nations Guiding Principles on Business and Human Rights
(UNGPs) standards. The group covers health, safety and
human rights issues.
KONE conducts regular human rights impact
assessments that consider a wide range of stakeholders,
including the company’s own workforce. In 2025, KONE
continued to follow up on the outcomes of the 2023
human rights impact assessment, implementing actions to
mitigate the risks identified. KONE identifies, assesses,
and prioritizes human rights impacts throughout its
business, aiming to prevent and mitigate these impacts
continuously. For own employees, these assessments are
complemented by regular internal surveys to help ensure
compliance and uphold standards within operations.
Anonymous surveys are also used to identify issues of
discrimination, bullying, and harassment within KONE
units. For more information on KONE’s human rights due
diligence process, see section 3.2.3.
In cases where a compliance incident investigation
establishes that a Code of Conduct violation has
occurred, relevant functions and stakeholders agree on
remedial steps based on the facts of the case and local
law, following a standardized process.
3.1.4. Targets
Driving continual improvement in safety
KONE monitors and analyzes various leading and lagging
indicators to evaluate material occupational safety IROs
for its own workforce, workers in the value chain,
customers, consumers and end users, as well as the
effectiveness of its health and safety measures. Continual
improvement of safety performance is pursued through
target setting. Targets related to own workforce are
presented in table 35.
Industrial Injury Frequency Rate (IIFR) has been used
for target setting at KONE for years, while Total
Recordable Incident Rate (TRIR) has been monitored since
2023. Since IIFR is KONE’s main health and safety
management indicator, a specific short or long term TRIR
target has not yet been set. KONE’s objective is to
eliminate all work-related fatalities and severe injuries.
Each year’s targets are set by the Safety, Quality and
Sustainability Board (SQS) at the beginning of the year,
reflecting the progress from the previous year.
Establishing health and safety targets is a collaborative
process that relies on various factors, including safety
performance, external requirements, identified
opportunities, and the strategic direction of KONE as a
company. KONE collects feedback from its own workforce
through global safety and quality networks and
communities encompassing all KONE operations.
Additionally, results from the Pulse survey, Subcontractor
Human Rights Impact Assessment, Compliance Line, and
KONE Supply Chain’s safety maturity assessment provide
valuable input both from the internal and external
workforce. KONE also uses insights from industry forums
such as the European Lift Association (ELA) and other
public data sources to ensure targets are relevant also in
a broader context.
Table 34. KONE’s
global Health and Safety actions, outcomes and contributions
Summary of global actions
in 2025 to improve H&S Expected global outcomes
Contribution to the achievement of
policy objectives and targets
Subcontractor safety
development program
2024–
Improved subcontractor safety performance in the
13 countries currently participating
Global standardized approach on subcontractor
management
Improvement in partner safety
performance – objective 1
Incident investigation
development program
2024–2026
Improved incident investigation methods to better
understand root causes and how incidents can be
prevented, aimed at all employees involved in
incident investigations
Investigation competency development program
Improvement in employee and partner
safety performance – objective 1
Two global safety
awareness campaigns –
Safety Week and Year-end
safety campaign
Enhanced safety awareness and competencies –
own workforce and workers in the value chain,
customers and partners
Local and global activities covering all KONE
businesses and areas
Continually improve our health and
safety performance – objective 2
Global general safety
training implementation in
local languages
Raised employee risk awareness, safety reporting
competency and electrical safety method
awareness e-learnings
Continually improve our health and
safety performance – objective 2
Data and innovation
development
KSS improvements and piloting AI to enhance data
analysis internally
Safety reporting app pushed to all KONE mobiles
Be the benchmark for health and
safety in our industry – objective 3
Reforming global Health
and Safety management
practices
Alignment with the new strategy
To pursue identified opportunities emerging from
the ESRS requirements, work to continue in 2026
Be the benchmark for health and
safety in our industry – objective 3
Global KONE Installation
Safety and Method
Passport update 2024-
Improved installer competency in applying KONE
methods and safety requirements, own workforce
(S1) and installer workers in the value chain (S2)
The development continued based on 2024 pilot
phase: to be followed by a gradual global expansion
Be the benchmark for health and
safety in our industry – objective 3
Look-Across 2023 -
Prevention of similar type of incidents across supply
chain proactively by evaluating exposure to similar
risk scenarios in all units following a near miss or
incident in one.
Be the benchmark for health and
safety in our industry – objective 3
Board of Director’s Report | Sustainability Statement
75 KONE Annual Review 2025
Tracking the progress of health and safety
performance and ensuring the effectiveness of
preventative and remedial actions takes place in several
ways and forums. KONE carries out, e.g., monthly cross-
functional safety performance follow-ups in each area, in
monthly global safety meetings, and within the Executive
Board. The Safety Core Team, comprising of leadership
representatives from each area, major business lines and
global functions, evaluates performance monthly.
Progress is also reviewed in quarterly meetings, together
with all safety professionals, as well as in collaborative
discussions in global Safety and Quality Network
meetings.
Global Safety Development function monitors safety
performance and the status of corrective actions
continuously, ensuring that relevant data is available to all
stakeholders.
Workers are engaged to identify any lessons or
improvements as a result of KONE’s safety performance in
various ways, see section 3.1.3.
KONE’s progress towards the health and safety
targets
The progress of KONE’s health and safety performance
has been positive over the years. Nonetheless, KONE
understands that the implementation of innovative
strategies is essential to achieve further reductions in the
already relatively low lagging indicator figures. Key safety
metrics are presented in table 35. Due to the current
configuration of KSS, only own employees are included in
these figures. KONE was not subject to any material fines,
penalties or compensation associated with the 4 work-
related fatalities within KONE's own employees.
As described in section 3.1.3, the management of
occupational health within KONE is structured at the unit
level in adherence with national regulations. There are
often legal restrictions on the collection of data, which
sets challenges to consolidate meaningful data on a group
level. Therefore, the figures exclude cases of work-
related ill health.
Compliance reports and incidents related to human
rights
Reports on compliance concerns and human rights
incidents are presented in table 36.
KONE follows internationally recognized human rights
standards, the UN Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, and the OECD Guidelines
Table 35. Global
key performance indicators for health and safety
–
Own workforce
Key Performance Indicator - H&S Target 2025
2024
2023
The coverage of KONE’s integrated health and
safety management system
1
2025 target: 100%
2026 target: 100%
2030 target: 100%
100%
100%
100%
The number of employee fatalities as a result of
work-related injuries
2
2025 target: 0
2026 target: 0
2030 target: 0
4
2
0
The number of employee recordable work-
related accidents
3
325
351
-
Total Recordable Incident Rate
(TRIR),
employees
4
2025 target: -11% from 2024
2026 target: -7%
2030 target: n/a
2,7
3.0
2.8
Industrial Injury Frequency Rate (IIFR),
employees
5,6
(KONE’s main H&S KPI)
2025 target: -11% from 2024
2026 target: -7%
2030 target: 0.6
0,8
6
1.3
1.1
The number of days lost to work-related
injuries, employees
7
3,305
4,135
-
1
The percentage of people in own workforce covered by KONE’s integrated health and safety management system, based on legal requirements
and ISO 45001 Occupational Health and Safety Management standard. The system is audited both internally and by an external party.
2
Does not include fatalities resulting from work-related ill health.
3
The number of work-related accidents (injuries) that result in any of the following: death, days away from work, restricted work or job transfer to
another job, medical treatment beyond first aid, loss of consciousness; or significant injury diagnosed by a physician or other licensed healthcare
professional. Does not include cases of work-related ill health due to restrictions on collecting the data. KONE has not seen it meaningful to set
targets based on the number of accidents but instead, for the injury rates such as IIFR and TRIR.
4
Total number of recordable work-related employee accidents (injuries) divided by the number of total employee theoretical hours worked,
multiplied by 1,000,000.
5
Voluntary KPI: Number of severe and moderate work-related employee incidents divided by the number of total employee theoretical hours
worked, multiplied by 1 000 000.
6
KONE credits its notable improvement to moving from reactive safety approach to proactive measures.
7
Lost days are counted as total calendar days lost from work due to a work-related injury, including injuries that occurred in the previous year but
contributed lost days in the reporting year, counted up to maximum of 180 days per injury. Does not include cases of work-related ill health due to
restrictions on collecting the data. The total number of days lost in 2025 due to work-related injuries is determined by incident status updates
recorded in KSS as of Thursday, January 15, 2026. The 2024 number of days lost to work-related injuries for employees in 2024 has been updated
due to incident status changes after the 2024 Sustainability Statement was published, resulting in a 5.8% increase from the previously reported
figure.
Board of Director’s Report | Sustainability Statement
76 KONE Annual Review 2025
for Multinational Enterprises, and defines severe human
rights incidents to include child and forced labor and
human trafficking. For child and forced labor and human
trafficking, KONE has set a target of zero incidents. In
2025, no such cases were reported through its
Compliance Line or other compliance reporting channels.
The company’s target is to maintain zero incidents going
forward.
During 2025 KONE was not subject to any material
fines, penalties or compensation for damages resulting
from discrimination and harassment incidents.
Table 36. C
ompliance reports and incidents related to human rights
–
Own workforce
2023
2024
2025
Total number of compliance reports
1
190
261
386
Reports via Compliance Line (%)
2
29%
33%
30%
Harassment/Discrimination reports
3
58
84
118
Fraud/Corruption reports
4
52
63
82
Conflicts of Interest reports
5
29
31
60
Reports under other categories
6
51
83
126
Cases Closed
7
195
239
336
Substantiated/Partially Substantiated Cases 70
98
155
Dismissed/Resigned Employees
8
35
92
117
Human Rights Related Reports
9
0
1
0
Child/Forced Labor/Human Trafficking Incidents
1
0
0
0
0
Incidents Resulting in Court/Fines
11
0
0
0
1
The number considers total number of compliance reports received during the year.
2
The percentage of all reports that were submitted through the KONE Compliance Line, KONE’s confidential 24/7 reporting channel available
worldwide to employees, suppliers, distributors, and the public.
3
The number of compliance reports of discrimination and harassment out of the total number of reports received.
4
The number of compliance reports of fraud and corruption out of the total number of reports received.
5
The number of compliance reports related to conflicts of interest out of the total number of reports received.
6
The number of compliance reports that fell under various other categories out of the total reports received.
7
The number of closed cases during the reporting year. Some of these closed cases might have been reported in previous years.
8
The number of employees that were dismissed or resigned as a result of the investigations. Overall, The disciplinary actions in relation to
substantiated/partially substantiated cases ranged from coaching discussions to termination of employment.
9
The number of compliance reports that were human rights related out of the total reports received.
10
The number of child and forced labor and human trafficking incidents connected to KONE’s workforce reported through its compliance reporting
channels.
11
The number of incidents that resulted in court proceedings or fines or concerned the use of child or forced labor or human trafficking incidents.
Board of Director’s Report | Sustainability Statement
77 KONE Annual Review 2025
3.2 Workers in the Value Chain
(S2)
3.2.1 Material impacts, risks, and
opportunities
Working conditions of workers in the value chain,
specifically relating to health and safety, is identified as a
material topic. For details on the process used to identify
and assess material IROs, see section 1.5. Material
impacts are described in table 37, which includes relevant
information on time-horizon, value chain information and
management actions taken to address the IRO.
Value chain workers likely to be materially impacted,
and therefore within the scope of this statement, can be
grouped into four categories:
Upstream manufacturing workers: Individuals
employed by KONE’s first-tier component suppliers
who are engaged in manufacturing activities
Downstream subcontractor workers: Individuals
working for a subcontractor involved in dismantling,
installation or maintenance activities (e.g.,
subcontractors installing KONE elevators)
On-site service provider workers: Individuals
employed by service providers performing tasks at
KONE sites, such as consulting, IT services, facility
management, and cleaning services.
Distributor installation workers: Individuals working
for KONE’s distributors engaged in installation
activities for KONE products
KONE directly contracts downstream subcontractors
for installation and modernization work. It also
collaborates with distributors who sell and install KONE
products. These distributor workers operate
independently, outside KONE’s supervision and sites.
While KONE promotes safe and ethical practices through
monitoring and engagement, compliance with
occupational health and safety requirements, labor laws,
and ethical standards remain the responsibility of the
distributors.
Certain categories of value chain workers face elevated
risks when performing KONE-related tasks. Health and
safety data indicate that subcontractors involved in New
Building Solutions and Modernization projects are at
highest risk for injuries. A significant portion of these
downstream suppliers are located in China. Negative
impacts on subcontractor workers include individual
incidents related to hazardous working environment
during equipment installation or dismantling. The most
severe injuries among subcontractors are related to falls
from heights, fall of material or object, and handling tools.
To mitigate potential negative health and safety
impacts, and support subcontractors and distributors in
maintaining safe working conditions and obtaining the
required skills, KONE sets minimum standards for health
and safety. More on the methods KONE uses to establish
and monitor these standards and address negative
impacts on value chain workers, see section 3.2.3 and
3.2.4.
Locations with the highest risk of child and forced
labor are outlined under sections 3.1.1. The management
of supplier risks is described under section 3.2.3.
3.2.2 Policies
Health and safety policies related to workers in the
value chain
KONE requires all its suppliers and distributors to sign the
Codes of Conduct and monitors the policy acceptance
systematically. Contracts may be terminated in cases of
Code violations. The Codes are reviewed annually and are
publicly available at kone.com. Key policies related to
workers in the value chain are described in section 3.1.2
and table 31.
Managing health and safety of value chain workers
KONE’s safety management framework, which is aligned
with ISO 45001 for occupational health and safety, applies
to value chain workers. Integrated into KONE’s Global
Management System, it supports ongoing improvement in
safety practices. For additional information about the
management system, please see section 3.1.2., which
contains details on ISO certifications.
Human rights policy commitment
KONE is a committed participant of the UN Global
Compact and continuously strengthens its understanding
of human rights impacts, taking proactive steps to
Table 37. Material
impacts, risks
,
and opportunities related to workers in the value chain
Material topic
(time horizon) Material impacts, risks and opportunities Management response
Health and
safety in own
operations and
downstream
value chain
(short- and
long-term)
↓ Negative impact
KONE is performing installation and service
operations globally. There are risks related to value
chain workers’ health and safety especially in the
installation and maintenance operations. Safety
hazards related to installation operations might
cause accidents leading to short-term absences due
to injuries, long-term permanent disabilities or even
fatalities, if neglecting appropriate health and safety
measures.
↓ Negative impact
Distributors’ employees and outsourced labor may
not work in a safe or clean environment and/or may
not respect KONE’s quality and safety requirements
or equivalent. Serious injuries or deaths may occur.
Inclusive approach to health and safety practices
such as involving value chain workers into
company safety initiatives, setting requirements
for their competency, and applying methods and
tools
Identifying gaps, development areas and best
practices, for example through the Subcontractor
Safety Development Program, to further develop
KONE processes and collaboration with its value
chain workers for improved health & safety in the
work environment
Conducting Supplier Human Rights Assessments
Board of Director’s Report | Sustainability Statement
78 KONE Annual Review 2025
prevent and remediate impacts when identified. The
Supplier and Distributor Codes of Conduct set KONE’s
expectations for its business partners to uphold the same
internationally recognized human rights standards that
KONE is committed to respecting. The codes include
clauses in line with the ILO Core Conventions.
These Codes explicitly prohibit use of forced labor,
child labor and modern slavery under any circumstances,
including trafficked, indentured, or bonded labor, human
trafficking and involuntary servitude, as well as
engagement with subcontractors or suppliers involved in
child labor, coercion, forced labor, slavery or human
trafficking. The Supplier Code of Conduct was updated in
2025.
To monitor adherence, KONE conducts annual
distributor due diligence questionnaire and supplier online
human rights assessments, both which include questions
on how the ethical principles in the Codes are
communicated to employees. Furthermore, the Codes
require that suppliers provide a safe and healthy working
environment in compliance with all applicable laws and
regulations. Suppliers must ensure their employees
receive proper health and safety training, information, and
personal protective equipment (PPE).
3.2.3. Actions
Engaging with value chain workers
KONE offers multiple channels for value chain workers to
collaborate and raise concerns about ethics or health and
safety. These include local meetings, safety initiatives,
and daily interactions with KONE representatives across
purchasing, sales, operations, and local entities. These
interactions provide guidance for KONE’s program and
process design and implementation decisions. See
section 3.1.3, for more information on KONE’s health and
safety initiatives.
KONE management and supervisors regularly
collaborate and share safety information with
subcontractors. Subcontractor workers are encouraged to
participate in health and safety discussions through
‘toolbox talk’ briefings, regular meetings, and KONE
events, with engagement monitored via safety KPIs,
audits, and ongoing dialogue.
In alignment with KONE's continual improvement
principles, all employees and subcontractors are
responsible for suggesting and identifying ways to
improve workplace safety. Subcontractors are required to
report all KONE related near misses and incidents to
KONE. Downstream subcontractor workers do not have
direct access to KSS, instead, they report incidents to
their supervisors, who then process these reports into
KSS. Issues may also be communicated through local
channels. Similarly, safety representatives from
distributors compile and provide reports that are reviewed
monthly with KONE. All workers working in KONE
premises have either direct access to KSS or report to
their KONE contact. For more information on KONE
incident management process, see section 3.1.3.
The KONE Compliance Line is available to the public,
including value chain workers, for reporting concerns and
human rights grievances. See section 4.1.3 for more on
reporting mechanisms.
KONE’s non-retaliation policy, highlighted in KONE’s
Supplier and Distributor Codes of Conduct, requires
suppliers and distributors to provide accessible channels
for raising concerns. Any person making such a report in
good faith is be protected from retaliation. KONE’s
supplier human rights assessment questionnaire asks
whether suppliers have effective grievance mechanisms
and are aware of the KONE Compliance Line. Similar
questions are included in the annual distributor due
diligence questionnaire to assess the accessibility and
trustworthiness of reporting channels.
Engaging with distributors
KONE engages with distributors through regular forums to
improve working methods, operational collaboration, and
safety performance. While KONE is not directly
responsible for distributor installation workers’ health and
safety, it monitors and works together with distributors to
promote safe and ethical practices. KONE also supports
distributors’ business growth by providing commercial,
technical, and training support, fostering partnership and
synergy.
Monthly meetings with distributors at various tiers
facilitate ongoing engagement and collaboration.
Distributors communicate KONE's guidance and
requirements to their employees and subcontractors and
share best practices related to health, safety, and quality.
Annual distributor meetings with top management focus
on safety, quality, operations, and business alignment,
facilitating shared decision-making related to the design
and implementation of programs or processes, and driving
continual improvement. To evaluate each distributor’s
performance, maturity, and growth opportunities, KONE
conducts Field Operations assessments periodically in
different countries.
Addressing negative health and safety impacts on
value chain workers
KONE proactively addresses negative impacts on value
chain workers by integrating robust risk management,
pre-planning, and competency development into
management systems. KONE also aims to deliver positive
impacts, inviting value chain partners to participate in
health and safety initiatives and campaigns.
Based on comprehensive risk assessments, KONE
provides detailed installation and maintenance
instructions for its products to mitigate health and safety
risks. To further develop KONE products and installation
methods, KONE seeks feedback from its value chain
workers and companies.
In addition to KONE’s Supplier and Distributor Codes of
Conduct, KONE sets operation-specific minimum
requirements for subcontractor training, tools, and
personal protective equipment (PPE) mainly for projects in
New Building Solutions and Modernization. Mandatory
health and safety training requirements are related to the
safe working methods for installing and maintaining KONE
products. Depending on the local practices and
legislation, KONE provides e-learning, hands-on and
project or product specific training for subcontractors.
Close collaboration with subcontractors and
distributors enables effective mitigating actions.
Along with own employees, local KONE line
organizations are accountable for health and safety of
workers in the value chain working under KONE
supervision at KONE sites. The local line organization
possesses the resources and competencies to support
value chain workers in adhering to safe working methods.
Local KONE entities and areas also have health and safety
experts to support this goal. KONE’s Global safety
development team leads and partially resources global
Board of Director’s Report | Sustainability Statement
79 KONE Annual Review 2025
health and safety initiatives, programs, tools, and
campaigns, which also support value chain workers. The
team and KONE’s safety governance model is described
in section 1.3.1. and 3.1.2.
Since 2024, KONE has driven a targeted program to
address potential negative health and safety impacts on
workers throughout its value chain. The Global
Subcontractor Safety Development Program aims also to
foster positive health and safety outcomes by
establishing a structured framework for effective
collaboration with subcontractors and standardizing their
safety management practices. This initiative prioritizes
worker groups and operational areas most susceptible to
adverse impacts from KONE's activities. Mitigation
strategies, such as increasing risk awareness and
enhancing site supervision, are identified based on
consolidated safety data, including incidents, near misses,
and root cause analyses to avoid work injuries among
value chain workers. In 2025, the program continued to
systematically evaluate subcontractor management
practices in selected regions and business units to
determine necessary actions for collaborative safety
performance improvement. The effectiveness of these
initiatives is continually monitored to ensure optimal
results. In the coming year, the program will be extended
to all KONE operating countries, with program
management shifting from a global to a local focus
through an updated facilitation plan.
In addition to the mentioned actions, KONE
participates actively in global industry forums, such as the
Global Elevator Safety Forum, to influence improvement
of health and safety in the elevator and escalator industry
throughout the value chain.
See section 3.2.4. for details on how the impact of the
actions is monitored and their planning guided through
health and safety reporting, trend monitoring and target
setting.
Remediating actual health and safety impacts on
workers in the value chain
KONE's incident management process and integrated
safety management system also cover value chain
workers. If a value chain worker experiences a health or
safety incident, KONE promptly assists partners in
arranging immediate medical and crisis support and
supports or conducts investigations to determine root
causes and implement corrective actions. Incident data is
used to identify improvement areas in KONE’s products
and processes and help value chain partners enhance
their safety performance. See section 3.1.3, for more
information about KONE’s incident management process
and the establishment of remedial actions.
KONE shares relevant near misses and incidents with
subcontractors and distributors as lessons learned to help
prevent recurrence. The effectiveness of remedial actions
is verified through systematic data monitoring, further
described in section 3.2.4.
KONE Human rights due diligence process
KONE’s human rights due diligence program is based on
international standards such as the UN Guiding Principles
on Business and Human Rights and the OECD Guidelines
for Multinational Enterprises. KONE continuously develops
and monitors its human rights due diligence program to
identify and address potential risks in KONE’s own
operations and value chain, ensuring that the program
aligns with international human rights standards. The
processes within the program are discussed in KONE’s
Human Rights Working Group regularly. KONE identifies
human rights risks within the program through human
rights impact assessments, internal assessments and
surveys, third-party due diligence and screening, and
supplier due diligence process.
KONE carries out regular company-wide human rights
impact assessments to identify risks within its
organization and across its value chain. The latest global
human rights impact assessment, conducted in 2023,
found that KONE’s salient human rights issues remain
consistent with those identified in 2019, namely the
respect for labor rights and, health and safety of
employees and workers in the value chain
The scope of these assessments considers risks in
the value chain, both in upstream and downstream, also
covering end-users, customers and local communities.
Prioritization of potential human rights impacts is based
on the severity of the impact on potentially affected
individuals and groups, the associated risks to the
business and the likelihood of such impacts occurring.
Findings from human rights and annual risk assessments
are taken into account in relevant business processes,
with responsibilities defined for carrying out preventive
and corrective actions and for preparing measures to
address identified risks. These actions are regularly
reported back to the Sustainability Disclosure Board.
KONE uses internal surveys to assess human rights
compliance in its own operations, as well as anonymous
surveys to identify discrimination, bullying and/or
harassment issues within a unit. Additionally, KONE
carries out periodic on-site assessments of KONE-
provided accommodation to identify and address any
impacts on human rights and on employee safety. During
2025, KONE assessed its factory in India for human rights
risks.
To manage risks related to business partners, KONE
uses a compliance tool that screens and monitors
suppliers, customers, distributors and other third parties
against international adverse media, sanctions, and watch
lists. The tool supports risk-based checks and flags red
indicators for further review. Enhanced scrutiny is applied
to high-risk partners, and practical onboarding guidance
is available for KONE’s highest risk partners. Employees
are encouraged to escalate concerns, ensuring risks are
addressed promptly and responsibly. Adverse findings on
human rights are flagged to the relevant KONE contract
owner or category manager for follow-up.
KONE is committed to taking appropriate action to
remediate situations where its activities have caused or
contributed to an adverse human rights impact. Any
human rights issues can be escalated to the Human
Rights Working Group, reporting to the Sustainability
disclosure board. Employees, suppliers, and external
stakeholders may also raise concerns through the KONE
Compliance Line. If Code of Conduct violations are
uncovered through compliance investigations, the
relevant functions and stakeholders, such as
management, Compliance, Legal, and Human Resources,
collaborate to agree on corrective measures based on the
facts of the case and applicable local laws. When
necessary, specific individuals are designated to oversee
the implementation of the corrective actions to ensure
these are carried out.
Supplier due diligence
Given that KONE’s highest human rights risks are found
within its value chain, a dedicated Supplier Sustainability
Board of Director’s Report | Sustainability Statement
80 KONE Annual Review 2025
Team is responsible for continuously developing and
implementing KONE’s supplier human rights due diligence
program. This program is aligned with international
standards and aims to prevent, mitigate, and remedy
adverse impacts across the supply chain.
Suppliers with potential high risks are identified based
on factors such as geographic location, category of goods
or services provided, and the use of materials linked to
high-risk supply chains. Prioritization of supplier human
rights risk considers, after severity and likelihood of risks,
KONE’s leverage and other relevant factors to ensure
focus on the most salient risks.
Suppliers with potential high human rights risks
undergo online or third-party on-site human rights
assessments to identify potential and actual impacts. The
assessments cover all salient human rights risks, including
health and safety, conditions of employment,
discrimination, harassment, freedom of association and
collective bargaining, child labor, forced labor, and the
right to a safe environment. Based on the findings, KONE
collaborates with suppliers and relevant stakeholders to
develop corrective action plans with measurable targets
and timelines.
Implementation is monitored through a structured
tracking and follow-up process with designated resources
to ensure the effectiveness of mitigation efforts. Where
adverse impacts occur, KONE seeks to provide for or
cooperate in remediation. KONE also has a
disengagement process in place for suppliers that are
unresponsive or refuse to address human rights concerns,
which includes termination of contract and notification to
local authorities.
In 2025, KONE strengthened supplier engagement in
high-risk regions, particularly in India, by organizing a
face-to-face human rights workshop for its largest
material suppliers. KONE also strengthened collaboration
with external partners, including partnering up with
UNIDO (United Nations Industrial Development
Organization) and conducting tailored trainings for KONE’s
supplier companies.
3.2.4 Targets and metrics
Key compliance metrics for workers in the value
chain
KONE expects its business partners to uphold the same
standards as KONE regarding health and safety, zero
tolerance for bribery and corruption, internationally
recognized labor and human rights, and environmental
responsibility. To support this, KONE has set targets for
signatories of the Distributor and Supplier Codes of
Conduct, using 2020 and 2021 as base years,
respectively. These targets are established through a
strategic and systematic process. While stakeholders are
not directly involved in target setting, KONE considers
how the stakeholders may be affected.
All distributors are required to sign the Distributor
Code of Conduct. Similarly, according to KONE
purchasing policy, all suppliers must agree to and sign the
Supplier Code of Conduct and demonstrate compliance
with KONE’s requirements. Exceptions can be made if
supplier’s own Code of Conduct is verified to align with
KONE’s standards, subject to approval by KONE’s legal
department. Requiring all suppliers to sign the Supplier
Code of Conduct, that includes the Environmental Annex,
ensures suppliers adhere to KONE's environmental, labor
and human rights requirements. Supplier Code of Conduct
compliance targets are reviewed annually based on
supplier performance and adherence.
KONE screens suppliers and business partners and
regularly monitors both the process and the share of
suppliers and other business partners included in the
screening solution. Although there is no specific target set
for the coverage of business partners in the tool, KONE
continuously works towards expanding the scope of
entities in the tool. The tool manages third parties through
five key stages: onboarding, risk assessment, due
diligence, risk mitigation and monitoring.
Global metrics for compliance can be found in table
38.
KONE has also set human rights related compliance
targets that are described in section 3.1.4. In 2025, KONE
received no reports on severe human rights issues or
incidents connected to workers within the material scope
of its upstream or downstream value chain through the
Compliance Line or other compliance reporting channels.
KONE has not become aware of any cases reported
through the compliance reporting channels involving non-
respect of the UN Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, or the OECD Guidelines for
Multinational Enterprises within its upstream or
downstream value chain.
KONE recognizes that human rights risks are present
in global supply chains, and that the absence of reported
cases does not mean the absence of risks. KONE is
committed to proactively uncovering and addressing
human rights risks across the value chain.
Table 38. Global
metrics for compliance
–
Workers in the value chain
Key performance indicator Target 2025
2024
2023
The coverage of KONE’s Distributor Code of
Conduct
1
100% by 2025
100% by 2026
100% by 2030
100%
97%
92%
The coverage of KONE’s Supplier Code of
Conduct
2
87% by 2025
89% by 2026
90% by 2030
89%
87%
86%
Compliance screening coverage by spend
3
95%
78%
78%
1
KONE’s distributors who have signed KONE’s Distributor Code of Conduct.
2
KONE’s total spend with regular trade suppliers and installation subcontractors with parties who have signed KONE’s Supplier Code of Conduct or
equivalent.
3
Percentage of total supplier spend covered by KONE’s compliance screening solution.
Board of Director’s Report | Sustainability Statement
81 KONE Annual Review 2025
Health and Safety metrics and performance
monitoring for workers in the value chain
KONE tracks health and safety trends among value chain
workers and monitors channels for reporting issues to
monitor the effectiveness of its actions. Value chain
worker related health and safety data in KSS, internal and
external management system audit findings, Human
Rights Impact Assessment results, and concerns arising
from KONE’s close collaboration with value chain
companies, help KONE to identify and prioritize actions
needed to mitigate potential negative impacts in its value
chain. Regular meetings and forums are held to assess
mitigation efforts, and processes are adjusted as needed
for continual improvement. The certified Health and
Safety Management System ensures external evaluation
of risk mitigation processes.
KONE has prioritized health and safety monitoring of
downstream subcontractors involved in installation and
dismantling, upstream first-tier component suppliers in
manufacturing, and service providers working at KONE
sites. KONE actively enhances its processes to monitor
safety of all its value chain worker groups, including
distributor installation personnel.
Subcontractor safety performance is monitored daily
via KSS, in line with local laws and contract terms. Reports
on near misses, injuries, and fatalities are included in
monthly global reporting to the Executive Board and
reviewed regularly at both global and local health and
safety meetings. For more information on KSS, see
section 3.1.3.
KONE aims to decrease both the number and severity
of injuries among subcontractors involved in dismantling
and installation activities for New Building Solutions and
Modernization projects by 2030. While a specific
quantitative target has not yet been set due to challenges
in collecting and verifying data, such as limited access to
working hours and other confidential information, KONE
closely monitors injury numbers and trends to improve
safety across its value chain.
Target setting for occupational health and safety is a
collaborative process and the process is described in
section 3.1.4.
Based on findings from the human rights impact
assessment, DMA, Subcontractor Safety Development
Program, and KSS reports, KONE has identified a need to
further support partners in improving health and safety
management and fostering a proactive safety culture.
KONE is confident that enhancing Code of Conduct
compliance monitoring and continuing the Subcontractor
Safety Development Program will effectively reduce
material negative health and safety impacts and promote
positive outcomes for value chain workers.
Board of Director’s Report | Sustainability Statement
82 KONE Annual Review 2025
3.3 Consumers and End-Users
(S4)
3.3.1 Material impacts, risks, and
opportunities
Personal health and safety of consumers and end-users is
identified as a material topic for KONE. For details on the
process used to identify and assess material IROs, see
section 1.5. The material impact and risk are described in
table 39, which includes relevant information on the time-
horizon, value chain information and the management
actions taken to address the IRO.
Recognized as a fundamental human right, safety is a
core principle and top priority in KONE’s Rise strategy.
With billions of people using KONE elevators, escalators,
and automatic doors every day, end-user safety is central
to our business approach and embedded in everything we
do.
KONE’s products are designed to meet the needs of
varied range of users, including the elderly, people with
disabilities, children, and those transporting heavy or
bulky items. KONE’s solutions are widely used in high-
traffic environments such as hospitals, shopping centers,
and public transport hubs, where safety and reliability are
critical.
Based on incident data in KSS, most consumer and
end-user safety incidents are linked to misuse or
inappropriate behavior around equipment, with children
and young adults being particularly at risk. Additionally,
incidents involving KONE products are often influenced by
factors beyond KONE’s control, such as property
maintenance, building conditions and supervision.
All consumers and end-users who are likely to be
materially impacted by KONE operations, value chain,
products, and services, are included within the scope of
KONE’s disclosures.
3.3.2 Policies
Key policies related to consumers and end-users
Codes, standards and regulations set technical and
operational requirements for KONE’s solutions and
services throughout their entire life-cycle from design,
manufacturing and installation to service, modernization,
and dismantling.
In addition to meeting local codes and regulatory
requirements, KONE has established a series of health
and safety management related policies, many of which
also apply to end-users. For example, risk management is
an integral part of KONE’s business processes associated
with the safety of solutions and services throughout their
life-cycle, addressed with the Risk Management Policy.
For details on the policies, please see section 3.1.2. Key
policies that are particularly relevant to consumers and
end-users are presented in table 31.
KONE’s Quality, Health and Safety Policy Statements
set the ambition and objectives applicable to all KONE
units. See further information in section 3.1.2.
Policy for and KONE approach to consumer and
end-user human rights
The KONE Human Rights Policy outlines the company’s
role, objectives, and responsibilities regarding its human
rights commitments, and recognizes that safety is a
shared responsibility involving all stakeholders, including
end-users. KONE’s human rights impact assessment
considers end-users and customers from a health and
safety perspective to identify any related risks. No
specific groups of end-users or customers were identified
as having high risk for human rights impacts in the
assessment. In addition, KONE has not become aware of
severe human rights incidents connected to its
consumers or end-users during the reporting period. For
more information on KONE’s Human Rights Policy, due
diligence process, alignment with internationally
recognized standards and details about remediation
processes, see section 3.1.2., 3.1.3., 3.2.3. and 4.1.
Management systems for policy implementation
and monitoring
KONE’s integrated management system supports
consumer and end-user safety by embedding safety into
all stages of operations, from product design and
installation to maintenance and continuous improvement.
By combining quality, safety, environmental, and
compliance management into a single framework, KONE
ensures consistent risk assessments, clear accountability,
and standardized processes across our business. This
approach enables identifying and addressing potential
hazards early, meeting regulatory and customer
requirements, and driving corrective and preventive
actions. In doing so, KONE provides consumers and end-
users with safe, reliable products and services that are
continuously monitored and improved. For more
Table 39.
Material impacts, risks
,
and opportunities related to consumers and end
-
users
Material topic
(time horizon) Material impacts, risks and opportunities Management response
Health and
safety in
downstream
value chain
(medium-term)
↓ Negative impact
Misuse of KONE equipment, neglecting
maintenance instructions or other unforeseen
events may lead to equipment failures and cause
severe incidents or fatalities to end-users.
↓ Risk
Equipment malfunctions related injuries due to
error in design or maintenance. Inadequate
maintenance level, including by subcontractors.
Postponement of modernization by the building
owner.
Safety is embedded in the product development process
Retrofit of identified safety hazards in KONE products.
Modular Based Maintenance (MBM) using preventive
maintenance methods
Regular training of KONE’s maintenance technicians
Safety promotion campaigns for customers and end-
users
Develop modernization solutions for upgrading or
replacing existing equipment with new solutions that
meet or exceed the latest safety standard
Board of Director’s Report | Sustainability Statement
83 KONE Annual Review 2025
information on KONE’s Global Management Systems, see
section 3.1.2.
3.3.3 Actions
Engaging with consumers and end-users
At KONE, consumer and end-user perspectives are
integrated into decision-making through structured
feedback mechanisms, including surveys, incident
management, and direct customer engagement. Insights
inform product design, service development and safety
improvements. The Global Safety and Quality Function
oversees these efforts, with the Senior Vice President of
Safety and Quality responsible for the communication to
the Executive Board and shaping organizational strategy.
KONE gathers additional insights through its annual
customer loyalty survey, which includes over 13,000
interviews each year. Local teams review these results
and incorporate actions into their plans.
Furthermore, KONE has launched an updated
Customer Transaction Survey (CTS) enabling regional
teams to act faster on feedback and implement service
improvements more efficiently. Customers benefit directly
from a more responsive organization, making service
quality more reliable no matter where the customer is
located. The CTS ensures consistent tracking and
improvement of customer experience. By simplifying
feedback processes and using digital tools, KONE makes
it easier for customers to share their opinions and see
tangible results. The program, initially implemented in
specific regions, was extended to more than forty-five
countries in 2025.
For any compliance-related concerns, the KONE
Compliance Line reporting channel is publicly available at
kone.com, to all KONE stakeholders, including customers,
consumers, and end-users. See more under section 4.1.3.
KONE highlights the Compliance Line in customer
contract templates, ensuring an easily accessible and
confidential channel for reporting concerns or potential
misconduct.
KONE actively participates in trade associations,
standardization forums, and organizations dedicated to
shaping industry standards and best practices.
KONE is a member of the European Lift Association
(ELA), which collects and analyzes incident data from
various original equipment manufacturers (OEMs) and
industry associations to support safety improvements. In
the Americas, KONE also supports the Elevator and
Escalator Safety Foundation through its involvement in
industry trade associations.
Safety communications
Safety is a shared responsibility that also involves the
owners and users of elevators, escalators, and automatic
building doors. KONE collaborates closely with its
customers to help them operate KONE equipment safely,
identify potential safety hazards, and address situations
that may pose safety risks.
KONE equipment are safe by design when instructions
for operation, daily inspections, and maintenance
programs are followed. At the completion of installation,
KONE provides product owner documentation, hazard
warning signs and instructions for correct product use. To
further support safety, KONE offers training and
educational materials to help customers prevent or
mitigate risks, including product safety training for their
employees. Building owners and maintenance service
providers are responsible for the equipment being
professionally maintained and kept in good condition.
Owners are expected to promptly inform maintenance
service providers of any identified hazards, such as
unusual noises or debris on or around the equipment.
KONE also organizes safety awareness campaigns in
cooperation with customers, to encourage safe behavior
among equipment users. Through active communication,
training, and public engagement, KONE helps ensure safe
use of its equipment. Special attention is given to
children, recognized as one of the most vulnerable user
groups. KONE’s safety mascots, Bob and Max, have
visited shopping centers, daycare centers, lower schools
and customer sites globally to promote safety in a fun and
engaging way. Educational materials for both children and
adults, such as safety videos and a downloadable safety
playbook, are available on kone.com.
Mitigating negative impacts on consumers and
end-users
KONE is committed to effectively managing the
material negative impacts to consumers and end-users
associated with its operations, products, services, and
value chain. To ensure the safety, reliability, and
sustainability of its elevators, escalators, and building
doors, KONE has allocated resources across various
functions within the organization and is closely monitoring
safety occurrences related to KONE products. KONE
identifies actions to address potential negative impacts
on consumers and end-users by conducting risk
assessments, gathering stakeholder feedback, and
analyzing incident data from KSS and other sources.
KONE tracks and monitors the effectiveness of its actions
in mitigating material risks and impacts through ongoing
safety performance tracking, discussed in 3.1.4 and
further in 3.3.4. All KONE’s methods for installation,
service and modernization are defined and risk assessed
with user and third-party risks considered. Furthermore,
end-user safety is carefully considered in the product
development process. For more information about the
process, see section 3.1.3.
Through continuous engagement with customers over
the whole life-cycle of their building, KONE can address
potential safety risks and actual material impacts and
provide solutions that may exceed the locally required
safety standards.
To address issues proactively, various product
development and continual improvement initiatives
applying Lean Six Sigma or similar methodology are
initiated to improve KONE processes, services and
products. Inputs for continual improvement are e.g.,
collected from KONE front lines using the Quality Issue
Management (QIM) system or in some areas, equivalent
local process.
KONE provides several digital and connected solutions
that enhance safety and reliability for end-users and
consumers.
KONE 24/7 Connected Services enhances KONE’s
service and modernization business by enabling
predictive maintenance and data-driven equipment
upgrades, as well as reducing equipment downtime and
extending their life-cycle. For consumers and end-users,
Board of Director’s Report | Sustainability Statement
84 KONE Annual Review 2025
this translates into safer, more reliable, and uninterrupted
equipment use, with issues often prevented before they
occur. Aligned with KONE’s Rise strategy and focus on
digital transition, the share of connected equipment in the
maintenance base increased notably to over 40% at the
end of 2025.
In line with its strategy, KONE focuses on improving
user safety by modernizing existing equipment with
solutions that meet or exceed the latest safety standards,
ensuring safer, more reliable equipment performance.
At KONE, Dynamic Maintenance Planning (DMP) is
being progressively deployed across multiple regions as
part of the company’s digital transformation efforts. DMP
uses real-time equipment data to optimize route planning,
maintenance visits and tasks performed at site. DMP
contributes to sustainability by improving equipment
reliability, safety and operational efficiency
through timely, targeted interventions.
KONE has also piloted a new API-based solution in the
UK, integrating customer portals with KONE systems to
provide real-time updates on issue resolution and service
visits. By giving facility managers and building owners
instant access to equipment status, technician notes, and
service progress directly in their own platforms, potential
issues can be identified and addressed faster. This
reduces downtime, lowers the risk of equipment being
used while faulty, and ensures maintenance is carried out
on time. To expand the benefits, KONE’s global Service
and Digital Offering team is collaborating with multiple
frontlines to enable similar integrations, with the aim of
scaling the solution globally and enhancing service
transparency across markets.
Following the escalator video monitoring system pilot
in 2024, KONE has piloted similar system for elevators to
automatically detect unsafe passenger behavior or other
pre-defined scenarios that could potentially lead to user
incidents. In case of a recognized incident, the
passengers can be guided towards safer behavior by
audio-visual responses. The system records each
observation and provides insights, enabling a targeted
approach to further improve the safety of end-users.
Remediating negative impacts on consumers and
end-users
In the rare event of a safety incident involving a user of
KONE equipment, KONE's global incident management
process is implemented consistently across all KONE
units, except for incidents involving consumers or end-
users in the United States, which, due to legal
requirements, are not documented in KONE’s global
database (KSS). These incidents are still thoroughly
investigated locally to identify and implement corrective
and preventive actions with the same level of diligence.
For comprehensive information regarding KONE’s
established safety reporting workflow, see section 3.1.3.
KONE maintains a retrofit process to address identified
or potential safety risks. Information sources include, but
are not limited to, actual user incidents, near misses,
quality or warranty claims, QIM tickets, audits, third party
inspections and technical callouts. When necessary,
KONE proactively notifies customers, and/or respective
authorities, as well as construction, elevator, and
escalator industries of known defects that would require
product recalls and repairs. KONE works closely with local
authorities to mitigate potential negative impact for users
of its equipment or in remediating actual negative impact.
To ensure the effectiveness and consistency of its
incident management and reporting processes, KONE
conducts regular internal and external audits of its
management system. For more details on KONE’s auditing
practices, see section 3.1.2.
3.3.4 Targets
Health and safety targets, related to consumers and
end-users, are set through a collaborative, data-driven
process that incorporates safety performance metrics,
regulatory requirements, improvement opportunities, and
KONE’s strategic objectives and policies. Feedback from
customers, collected via loyalty surveys and KONE’s
global safety and quality networks, shape these targets,
ensuring they meet the safety need of consumers and
end-users throughout all KONE operations.
KONE monitors incidents involving consumers and
end-users to identify common causes, assess which end-
users may be at increased health and safety risk, and
evaluate both the effectiveness of actions taken and
overall performance. Incident data is recorded in KSS.
Although no specific quantitative injury reduction target
has been set due to data collection challenges, KONE
tracks and analyses near misses, allowing potential
hazards to be identified and mitigated before incidents
occur.
Maintaining equipment in optimal technical condition is
a key factor in ensuring consumer and end-user safety.
KONE has established 'Field operational enablers' with
progressively ambitious targets for all frontlines since
2020 to uphold high standards in equipment maintenance.
These targets include, among other things, maintenance
visit completion rates and the frequency of supervisor
audits.
To strengthen consumer and end-user safety at every
level, KONE has set a global target of one safety
promotion event or meeting per 2,000 units in service.
These actions are designed to raise awareness and
reinforce compliance, supporting KONE’s commitment to a
zero-injury goal. Progress toward these targets is closely
monitored in unit-level management meetings to ensure
alignment with KONE’s broader safety objectives and
policies.
Annual budget plans for each business unit align
financial and non-financial targets with stakeholder
needs, risks, and opportunities, including impacts on
consumers and end-users. For more on KONE’s approach
to establishing health and safety targets and performance
tracking, see section 3.1.4. For more on how targeted
actions are defined based on annual global safety budget
instructions, see section 3.1.3.
Board of Director’s Report | Sustainability Statement
85 KONE Annual Review 2025
4 Governance information
4.1 Business Conduct (G1)
4.1.1 Material impacts, risks, and
opportunities
Corporate culture, the protection of whistleblowers and
the prevention and detection of bribery and corruption,
are identified as material topics for KONE. For details on
the process used to identify and assess material IROs, see
section 1.5. The material impacts are summarized in table
40, which includes relevant information on time-horizon,
value chain information and the management actions
taken to address the IRO.
At KONE, business conduct means acting with
integrity, ensuring transparent and ethical practices, and
complying with laws and regulations to foster trust among
stakeholders. A strong corporate culture promotes
fairness, accountability, and responsible decision-making;
protecting whistleblowers strengthens transparency,
consumer trust, and societal perceptions; and effective
anti-bribery and anti-corruption measures enhance public
confidence and support sustainable business practices.
While the complete elimination of negative impacts may
not be fully achievable, preventive measures are in place
to mitigate risks and strengthen accountability across
operations.
4.1.2 Policies
The KONE Code of Conduct is a key element of the
company’s culture and business practices. It sets out the
responsible and ethical conduct expected of KONE
employees and companies. The Code addresses a range
of topics such as conflicts of interest, corruption,
competition compliance, third-party due diligence, human
rights, fraud and theft, and how to report violations of the
Code. The Code also emphasizes KONE’s non-retaliation
policy: KONE does not tolerate any form of retaliation
against anyone who has made a compliance report in
good faith. As a committed participant of the United
Nations Global Compact, KONE upholds its ten principles
on human rights, labor, environment, and anti-corruption.
The Code is available in over thirty languages on
kone.com. KONE’s general Code of Conduct is
complemented by KONE Supplier and Distributor Codes of
Conduct. For more on the Codes, see section 3.2.2 and
table 31.
As a part of ongoing efforts to prevent bribery and
corruption, KONE has a standalone Anti-Bribery and
Corruption (ABC) Policy. The ABC Policy builds on the
Code of Conduct to provide guidance to employees on
how to deal with risky situations. The Policy is internally
and externally available in more than thirty languages and
aligned with the United Nations Convention against
corruption, reinforcing KONE’s dedication to ethical
standards. The policy states KONE's zero tolerance
towards bribery and corruption, explains prohibited
arrangements (including direct and indirect bribery,
facilitation payments, excessive gifts and hospitality, and
inappropriate donations and sponsorships), outlines third-
party risks, describes KONE’s risk-based approach
towards the prevention of bribery and corruption, gives
examples of practical risk situations that employees
should look out for, and provides guidance on how to
report any suspected violations.
In 2025, KONE launched a global Third-Party Due
Diligence Policy that sets out the company’s zero
tolerance for bribery, corruption, and other illicit activities,
and defines how business partners are identified,
assessed, and monitored from a compliance perspective.
The policy applies to all KONE entities and employees and
extends across the value chain to suppliers,
subcontractors, distributors, agents, joint venture
partners, acquisition targets, and other third parties. It is
based on a risk-based approach to due diligence, with
enhanced procedures for higher-risk categories such as
agents and distributors. The policy complements other
compliance policies and forms part of the company’s
broader compliance framework. Policies are summarized
in table 31.
Table 4
0
.
Material
impacts, risks
,
and opportunities related to business conduct
Material topic
(time horizon) Material impacts, risks and opportunities Management response
Corporate
culture in own
operations
(medium-term)
↑ Positive impact
A positive corporate culture promotes ethical,
sustainable practices and supports responsible
decision-making, creating benefits for society.
KONE’s culture, built on the core principles and values,
is the foundation of everything at KONE
Corporate culture related KPI’s are included in KONE’s
Sustainability program monitoring, such as values,
ethics, and compliance
In 2025, KONE assigned an annual, mandatory Code of
Conduct e-learning for all employees
Protection of
whistle-blowers
in own
operations
(medium-term)
↑ Positive impact
Whistleblower protection empowers people to
speak up, promoting transparency, accountability,
and trust in society.
The KONE Compliance Line is available for employees,
suppliers, distributors, and the public at all times
KONE’s Code of conduct emphasizes KONE’s non-
retaliation policy: no form of retaliation is tolerated
against anyone who has made a compliance report in
good faith
Corruption and
bribery in own
operations
(medium-term)
↑ Positive impact
Preventing and detecting corruption ensures fair
business practices, builds public trust, and supports
sustainable societal cooperation.
Global Compliance works closely with KONE’s
Assurance, Internal Controls and Risk Management
teams to identify ABC risks and track the effectiveness
of KONE’s ABC program
Anti-Bribery and Corruption training was reassigned to
staff and supervisors in 2025
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86 KONE Annual Review 2025
4.1.3 Actions and targets
KONE culture
KONE’s culture is grounded in its core principles of safety,
quality and sustainability, which are never compromised,
as well as in its core values of courage, customer, care
and collaboration. These principles and values shape how
KONE employees work together, both internally and
externally, and bring the company's culture to life every
day.
Culture is about how people connect, interact and
work together. The way KONE culture is embedded into
people and management processes supports the global
consistency in the organization as well as aligning all
employees with KONE values.
Annual people processes are essential tools for
cultivating and strengthening KONE’s culture, where
regular feedback sessions play a vital role. The annual
employee engagement survey, Pulse, is a key process
that helps shape and develop KONE’s culture by gathering
feedback from all employees. KONE aims to build an even
stronger feedback culture going forward.
All people leads are encouraged to carry out
meaningful conversations and activities including
recognizing and celebrating success at every level of the
organization. Employee Resource Groups (ERGs), promote
and bring KONE values to life through actions and
collaboration across the organization. In addition, KONE’s
structured leadership approach serves as a framework
creating consistency and alignment across all Areas.
KONE’s Rise strategy encourages employees to focus
on elements of the company culture that support
successful strategy implementation. KONE leaders are
expected to lead with courage, speed and simplicity, and
to collaborate effectively across the organization. KONE’s
strategic ambition is to be the number one choice for
employees and customers, and KONE’s culture continues
to be a crucial part of the journey and experience.
Inclusivity is embedded in KONE’s culture and values.
The development of inclusive teams, communities, and
networks is seen as essential to KONE’s long-term
success. KONE’s values are also reflected in annual
performance evaluations, which are indirectly linked to
the global short-term incentive program.
Mechanisms for identifying, reporting and
investigating concerns
All KONE employees are expected to understand and
comply with the Code of Conduct and to report any
violations through the available channels. Internal
channels include reporting to management, Human
Resources, Legal, or Compliance functions. In addition,
the KONE Compliance Line offers a confidential 24/7
reporting channel for employees, suppliers, distributors,
and the public (including consumers and end-users)
globally. The Compliance Line is highlighted in e.g.,
employee trainings, awareness materials, and in the
Supplier and Distributor Codes of Conduct and intranet.
More information and clear reporting instructions are
available at kone.com. KONE conducts periodic surveys
and assessments to test the awareness level of its
reporting channels and the willingness of employees to
report such concerns. For more details on incidents and
complaints, see section 3.1.3 and 3.1.4.
The Compliance Line is operated by an independent
third party and is accessible via phone and/or web in over
30 languages. Reports can be made in the reporter’s
native language and can be anonymous where permitted
under data protection laws. Reports can be submitted on
a range of topics related to the Code of Conduct
violations and other topics relevant to the Code, such as
fraud, theft, corruption, harassment, conflicts of interest,
human rights, environment, and safety.
KONE has implemented the requirements set forth by
the local implementations of the EU Whistleblowers
Directive (EU 2019/1937) in KONE’s operating locations.
Where required by local whistleblower laws, KONE
subsidiaries have local reporting lines and processes
allowing for the local reporting of compliance concerns.
The local staff have been given virtual training on how to
handle reports coming through the local reporting lines
covering the background requirement of the reporting
line, how the process works, what to do if they receive a
report, and the basics of compliance investigations.
KONE investigates reported concerns independently,
objectively and in a timely and professional manner by a
dedicated, impartial KONE Compliance Team, free from
any conflicts of interest. Corrective actions are taken
when necessary, including disciplinary action (including
termination of employment or business relationships),
process improvements, and further training. In cases
where a compliance investigation establishes that a Code
of Conduct violation has occurred, relevant functions and
stakeholders, e.g. Compliance, Management, Legal and
Human Resource functions, agree on remedial steps
based on the facts of the case and local law. When
appropriate, individuals are assigned to follow up on
specific remedial actions to ensure that they have taken
place. KONE’s case management system integrates the
web, phone, and other reporting channels to allow for a
secure and confidential system for managing reports and
follow-up. KONE consistently monitors such reports by
area, type, country, and other criteria, looking for any
trends or other meaningful information.
Key compliance cases and statistics on all compliance
cases are reported to the Global Compliance Committee
on a quarterly basis. Individual compliance cases are also
discussed as necessary with the Committee, KONE’s
President and CEO and/or the Executive Board. A
summary of key compliance cases and statistics is
provided to the Audit Committee and external auditors
annually.
KONE clearly communicates in its Code of Conduct,
the Supplier and Distributor Codes of Conduct and other
policies, training materials and Compliance Line Speak up
Guidelines, that it prohibits retaliation against any
individual who reports a Code of Conduct violation in
good faith. A report is made in good faith when the
reporting person has reasonable grounds to believe that
the information provided was true at the time of reporting.
In addition, to the extent allowed by local law, KONE
maintains the confidentiality of reporters’ identities to
further reduce the risk of retaliation. In countries where
anonymous reporting is not allowed, all other reporting
channels are available. All the reports are kept
confidential on a strict need to know basis, while
maintaining KONE’s prohibition against retaliation. Access
to the reporting system is limited to dedicated trained
individuals tasked with handling compliance reports
At risk functions for bribery and corruption
KONE’s operations are divided into eight global functions:
Commercial and Operations, Technology and Innovation,
Supply Chain, Purchasing, Strategy and Transformation,
Board of Director’s Report | Sustainability Statement
87 KONE Annual Review 2025
People and Communications, Finance and Legal and four
geographical areas: Americas, Europe, Greater China, and
Asia-Pacific, Middle East and Africa. To enhance its
efforts in preventing and detecting bribery and corruption,
KONE conducted a comprehensive global anti-bribery and
corruption risk assessment in 2021. In the assessment
KONE identified purchasing, sales, and marketing to have
an elevated risk for bribery and corruption. These high-
risk functions are categorized under Purchasing, Supply
Chain and Commercial and Operations. In addition, some
geographical areas pose a greater risk for bribery and
corruption namely Asia-Pacific, Middle East and Africa
and Greater China. These risks are evaluated internally on
a continuous basis. KONE reports metrics at a global
function level to ensure consistent coverage of all
relevant roles with elevated risk for corruption and
bribery. This approach accounts for variations in role
names and descriptions, which may not always capture all
at-risk positions. In addition, when KONE reports training
completions of these functions, only active KONE
employees are included. Those on leave are assigned the
course upon return to work.
Code of conduct, anti-bribery and corruption
training
Compliance training is a core element of KONE’s ethics
and compliance program. Key e-learnings, including the
Code of Conduct, Competition Compliance, and Anti-
Bribery and Corruption, are refreshed and assigned
regularly, with at least one mandatory training rolled out
each year for all employees, including Executive Board
members.
In 2025, the Code of Conduct e-learning was updated
and re-issued globally to all employees, including the
Board of Directors. The course provides an overview of
the Code and includes real-life scenarios employees may
encounter in their daily work. Topics covered by the e-
learning include corruption and bribery, related KONE
policies, procedures for handling suspicion and detection
as well as fraud, conflicts of interest, modern slavery, gifts
and hospitality, how to apply the Code, and how to report
actual or potential misconducts. The training includes
clear confirmation from employees that they agree to
comply with the Code of Conduct. All new joiners at KONE
are required to complete the most recent Code of
Conduct e-learning, and the Competition Compliance e-
learning (updated in 2022) is also mandatory for all new
staff and supervisors.
In addition to the Code of Conduct training, KONE
reinforced its commitment to ethical business practices
through targeted anti-bribery and corruption (ABC)
training. The ABC Policy, introduced in 2023, was
accompanied by a mandatory e-learning course for all
employees, including Executive Management. The same
course was re-issued in 2025 to all office-based staff and
supervisors. It covers the definition of corruption and
bribery, KONE’s zero-tolerance policy, and provides
guidance on preventing, detecting, and responding to
corrupt business practices. Additionally, employees are
instructed on how to report misconduct. The training
includes clear confirmation from employees that they
agree to comply with the ABC Policy. Respectively 98% of
all active KONE employees in the target group (24,527)
had completed the training by year end 2025. 98% of
employees in functions with higher risk for bribery and
corruption had completed the training. The ABC e-
learning is part of onboarding and assigned to all new
employees. For more information on business conduct
policies and Code of Conduct training see section 4.1.2.
Preventive measures and actions
To prevent bribery and corruption, KONE has developed
comprehensive anti-bribery and corruption measures.
KONE continues to implement frontline compliance risk
assessments and localized programs with a strong focus
on addressing bribery and corruption. In 2025, KONE
expanded its organization by adding new resources in key
areas, including those identified as higher risk from a
compliance perspective. The additional personnel
strengthen KONE’s ability to monitor, prevent, and
address compliance risks across regions and functions,
ensuring that expertise is available closer to the business.
KONE also initiated local risk assessments in new 10
countries with a strong focus on anti-bribery and
corruption among other compliance topics. Separate
targeted compliance training to frontlines and corporate
functions on topics including anti-bribery and corruption
as well as gifts and corporate hospitality continued during
2025. See table 41 for the training completion rates.
KONE actively seeks reliable and fair relations with
suppliers, distributors, and other partners for mutual
benefit. To ensure transparency and compliance, KONE
has a third-party due diligence process in place for
distributors and centralized information on global
distributor management. For details on the process, see
section 3.2.3. Additionally, KONE conducts annual
distributor training sessions in selected geographical
areas, covering essential topics such as sanctions,
bribery, corruption, and human rights. These trainings
were conducted also during 2025. KONE ensures that the
latest version of the distributor Code of Conduct has been
signed by active KONE distributors. An annual distributor
due diligence questionnaire is sent to all distributors and
includes detailed questions on bribery and corruption, as
well as on working conditions. KONE holds its suppliers to
the same high standards regarding anti-bribery and
corruption. KONE Supplier Code of Conduct includes an
extensive chapter dedicated to these critical issues,
emphasizing KONE’s shared commitment to ethical
business practices. For more information on KONE
Distributor and Supplier Codes of Conduct, see section
3.2.2 and table 31.
KONE has incorporated anti-bribery and corruption
clauses in global contract templates to better align
business relationships with customers with KONE’s
stringent anti-corruption policies. In addition, Global
Ethics and Compliance systematically screens target
entities during mergers and acquisitions as part of KONE’s
risk management strategy. The compliance screening of
customers was extended and automated during 2025.
The screening process helps KONE maintain its
commitment to ethical conduct and compliance with anti-
bribery regulations.
Board of Director’s Report | Sustainability Statement
88 KONE Annual Review 2025
KONE launched a new conflict of interest declaration
tool integrated into KONE’s Human Resources system in
2024. During 2025, KONE continued implementing the
tool across all operations. Employees can disclose any
potential conflicts of interest to their manager through the
tool, in which all relevant information is documented
including any necessary resolutions. The tool also
provides the capability for requiring employees to “self-
affirm” that they do not have any conflicts. The tool
serves as a risk mitigation mechanism to detect and
prevent situations where employees’ personal interests
may conflict with those of the company. In addition, all
employees are encouraged to speak up if they suspect or
become aware of a violation of the Code of Conduct,
including those related to corruption and bribery.
Table 41. Completion rate of Code of conduct trainings
1
Target group
2025
Target
group
Completed
(Target)
2024
Target
group
Completed
(Target)
2023
Target
group
Completed
(Target)
Own employees 66,494
97% (97%)
65,673
95% (95%)
54,000
85% (92%)
Employees in at-risk functions 38,394
98%
37,464
98%
36,622
86%
The Board of Directors and Executive
management 22
100%
21
100%
9
2
100%
1
All mandatory compliance training courses are monitored through KONE’s learning management system, which records completion rates for each training
module. In China, operatives are trained on a separate China Learning Management system (China LMS). The Greater China Compliance team monitors and
tracks completions through the China LMS and reports these to Global Compliance function periodically.
2
In 2023 the Code of Conduct training was not assigned to the Borad of Directors. The number includes only Executive management.
Consolidated financial statements | Consolidated statement of income
89 KONE Annual Review 2025
Consolidated statement of income
Jan 1– Dec | Jan 1– Dec | ||||
MEUR | Note | 31, 2025 | % | 31, 2024 | % |
Sales | 2.1 | ||||
Costs, expenses and depreciation | 2.2, 2.3 | - | - | ||
Operating income | 11.9 | 11.3 | |||
Financing income | 2.5 | ||||
Financing expenses | 2.5 | - | - | ||
Share of result of associated companies | 5.4 | - | |||
Income before taxes | 11.8 | 11.3 | |||
Taxes | 2.6 | - | - | ||
Net income | 8.8 | 8.7 | |||
| Net income attributable to: | |||||
Shareholders of the parent company | |||||
Non-controlling interests | |||||
Total | |||||
Earnings per share for profit attributable to the shareholders of the parent company, EUR | 2.7 | ||||
Basic earnings per share, EUR | |||||
Diluted earnings per share, EUR |
Consolidated statement of comprehensive income
Jan 1– Dec | Jan 1– Dec | ||
MEUR | Note | 31, 2025 | 31, 2024 |
Net income | |||
Other comprehensive income, net of tax: | 2.8 | ||
Translation differences | - | ||
Hedging of foreign subsidiaries | - | ||
Cash flow hedges | - | ||
Items that may be subsequently reclassified to statement of income | - | ||
Changes in fair value | - | - | |
Remeasurements of employee benefits | - | ||
Items that will not be reclassified to statement of income | - | - | |
Total other comprehensive income, net of tax | - | ||
Total comprehensive income | |||
| Total comprehensive income | |||
| attributable to: | |||
Shareholders of the parent company | |||
Non-controlling interests | |||
Total |
Consolidated financial statements
Consolidated financial statements | Consolidated statement of financial position
90 KONE Annual Review 2025
Consolidated statement of financial position
Assets,
| Equity and liabilities, | |||||||||
| MEUR | Note | Dec 31, 2025 | Dec 31, 2024 | MEUR | Note | Dec 31, 2025 | Dec 31, 2024 | ||
| Non-current assets | Equity attributable to the equity holders | ||||||||
Goodwill | 4.2 | of the parent | |||||||
Other intangible assets | 4.3 | Share capital | 5.2 | ||||||
Tangible assets | 4.4 | Share premium account | |||||||
Employee benefit assets | I | 5.6 | Paid-up unrestricted equity reserve | ||||||
Deferred tax assets | II | 3.6 | Fair value and hedge reserves | - | - | ||||
Shares and other non-current assets | I/II | 5.4 | Translation differences | - | |||||
Total non-current assets | Remeasurements of employee benefits | - | - | ||||||
Retained earnings | |||||||||
| Current assets | Total shareholders' equity | ||||||||
Inventories | II | 3.1 | |||||||
Accounts receivable | II | 3.2, 5.3 | Non-controlling interests | ||||||
Deferred assets | II | 3.3, 5.3 | Total equity | ||||||
Income tax receivables | II | ||||||||
Deposits and other current assets | I | 5.4 | Non-current liabilities | ||||||
Cash and cash equivalents | I | 5.3 | Loans and other interest-bearing liabilities | I | 5.3 | ||||
Total current assets | Employee benefit liabilities | I | 5.6 | ||||||
Total assets | Deferred tax liabilities | II | 3.6 | ||||||
Total non-current liabilities | |||||||||
| Provisions | II | 3.5 | |||||||
| Current liabilities | |||||||||
Loans and other interest-bearing liabilities | I | 5.3 | |||||||
Advances received and deferred revenue | II | 3.2 | |||||||
Accounts payable | II | 5.3 | |||||||
Accruals | II | 3.4, 5.3 | |||||||
Income tax payables | II | ||||||||
Total current liabilities | |||||||||
Total equity and liabilities |
Items designated " I " comprise interest-bearing net debt.
Items designated " II " comprise net working capital.
Consolidated financial statements | Consolidated statement of changes in equity
91 KONE Annual Review 2025
Consolidated statement of changes in equity
Attributable to the equity holders of the parent
Share | Paid- up | |||||||||
Share | premium | unrestricted | Fair value and | Translation | Remeasurements of | Retained Non- controlling | ||||
MEUR | Note | capital | account | equity reserve | other reserves | differences | employee benefits | earnings | interests | Total equity |
Jan 1, 2025 | - | - | ||||||||
Net income for the period | ||||||||||
Other comprehensive income: | 2.8 | |||||||||
Translation differences | - | - | ||||||||
Hedging of foreign subsidiaries | ||||||||||
Cash flow hedges | ||||||||||
Changes in fair value | - | - | ||||||||
Remeasurements of employee benefits | ||||||||||
Transactions with shareholders and non - controlling interests: | 5.2 | |||||||||
Profit distribution | - | - | ||||||||
Change in non-controlling interests | - | - | - | |||||||
Share-based compensation | ||||||||||
Dec 31, 2025 | - | - | - | |||||||
Jan 1, 2024 | - | - | ||||||||
Net income for the period | ||||||||||
Other comprehensive income: | 2.8 | |||||||||
Translation differences | ||||||||||
Hedging of foreign subsidiaries | - | - | ||||||||
Cash flow hedges | - | - | ||||||||
Changes in fair value | - | - | ||||||||
Remeasurements of employee benefits | - | - | ||||||||
Transactions with shareholders and non-controlling interests: | 5.2 | |||||||||
Profit distribution | - | - | ||||||||
Change in non-controlling interests | - | - | - | |||||||
Share-based compensation | ||||||||||
Dec 31, 2024 | - | - | ||||||||
C
onsolidated
financial
statements
| C
onsolidated statement of cash flows
92 KONE Annual Review 2025
| Consolidated statement of cash flows | ||
MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Cash receipts from customers | ||
Cash paid to suppliers and employees | - | - |
Cash flow from operations before financing items and taxes | ||
Interest received | ||
Interest paid | - | - |
Dividends received and capital repayments | ||
Other financing items | - | - |
Income taxes paid | - | - |
Cash flow from operating activities | ||
Capital expenditure | - | - |
Proceeds from sales of fixed assets | ||
Acquisitions, net of cash | - | - |
Cash flow from investing activities | - | - |
Cash flow after investing activities | ||
Profit distribution | - | - |
Change in deposits and loan receivables, net | - | |
Change of current creditors | - | - |
Change in non-current liabilities | ||
Change in non-controlling interests | - | - |
Cash flow from financing activities | - | - |
Change in cash and cash equivalents | - | |
Cash and cash equivalents at beginning of period | ||
Translation difference | - | |
Cash and cash equivalents at end of period | ||
The impact of changes in exchange rates has been eliminated in the statement of cash flows by translating the opening balance sheet with the closing rates of the period. |
Reconciliation of operating income to cash flow from
operations before financing items and taxes,
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
| Operating income | ||
| Change in working capital before financing items | ||
| and taxes | ||
| Depreciation and amortization | ||
Cash flow from operations before financing items and taxes |
Consolidated financial statements | Notes to the consolidated financial statements | Basis of preparation
93 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Basis of preparation
Notes to the consolidated
financial statements
1
Consolidated financial statements | Notes to the consolidated financial statements | Basis of preparation
94 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Basis of preparation
95 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
96 KONE Annual Review 2025
Financial Performance
Consolidated financial statements | Notes to the consolidated financial statements | Basis of preparation
In this section
This section comprises the following notes
providing insights into KONE’s financial
performance:
2.1 Sales
2.2 Costs and expenses
2.3 Depreciation and amortization
2.4 Foreign exchange sensitivity
2.5 Financing income and expenses
2.6 Income taxes
2.7 Earnings per share
2.8 Other comprehensive income
2
Sales
11,245 MEUR
EBIT
1,336 MEUR
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
97 KONE Annual Review 2025
Accounting principles
| Sales by business, | Jan 1– Dec 31, | Jan 1– Dec 31, | ||
| MEUR | 2025 | % | 2024 | % |
| New Building | ||||
Solutions | 4,097.7 | 36 | 4,506.9 | 41 |
Service | 4,753.6 | 42 | 4,503.6 | 41 |
Modernization | 2,394.0 | 21 | 2,088.0 | 19 |
Total | 11,245.2 | 11,098.4 |
| Sales by Area, | Jan 1– Dec 31, | Jan 1– Dec 31, | ||
| MEUR | 2025 | % | 2024 | % |
Americas | 2,812.1 | 25 | 2,727.1 | 25 |
Europe | 4,524.4 | 40 | 4,233.8 | 38 |
APMEA | 1,742.7 | 15 | 1,609.3 | 14 |
Greater China | 2,166.0 | 19 | 2,528.2 | 23 |
Total | 11,245.2 | 11,098.4 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
98 KONE Annual Review 2025
| Cost and expenses, | |||
| MEUR | Note | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Direct materials, supplies and subcontracting | 3,877.9 | 3,947.5 | |
| Wages, salaries, and other employment expenses including pensions | 5.6 | 4,090.7 | 3,907.0 |
Other production costs | 879.2 | 882.4 | |
Selling, administrative and other expenses | 782.8 | 860.0 | |
Depreciation and amortization | 2.3 | 319.9 | 292.2 |
Costs, expenses, depreciation and amortization | 9,950.5 | 9,889.1 | |
Other income | 41.4 | 39.6 | |
Total costs, expenses, depreciation and amortization | 9,909.1 | 9,849.5 |
| Research and development costs, | |||
| MEUR or as indicated | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
R&D costs included in total costs | 233.9 | 203.6 | |
As percentage of sales | % | 2.1 | 1.8 |
| Auditors' fee, | ||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Audit (to member firms of Ernst & Young network) | 4.3 | 4.0 |
Sustainability assurance | 0.3 | 0.3 |
| Auditors' statements | - | 0.0 |
Tax services | 0.1 | 0.4 |
Other services | 0.2 | 1.7 |
Total | 4.9 | 6.3 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
99 KONE Annual Review 2025
Accounting principles
| Depreciation and amortization, | ||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
| Intangible assets: | ||
Customer-related intangibles | 53.2 | 46.7 |
Other Tangible assets: | 10.7 | 11.5 |
Buildings | 83.4 | 81.6 |
Machinery and equipment | 172.6 | 152.4 |
Total | 319.9 | 292.2 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
100 KONE Annual Review 2025
| F | |||||||||||||
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
101 KONE Annual Review 2025
Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | ||||
Key exchange rates | Average rate | End rate | Average rate | End rate | |
Chinese yuan | EUR/CNY | 8.0693 | 8.2262 | 7.7793 | 7.5833 |
US dollar | EUR/USD | 1.1243 | 1.1750 | 1.0826 | 1.0389 |
British pound | EUR/GBP | 0.8546 | 0.8726 | 0.8469 | 0.8292 |
Indian rupee | EUR/INR | 98.0741 | 105.5965 | 90.6243 | 88.9335 |
Australian dollar | EUR/AUD | 1.7484 | 1.7581 | 1.6424 | 1.6772 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
102 KONE Annual Review 2025
| Financing income and expenses, | ||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Dividend income ¹ | 3.2 | 0.0 |
| Interest income: | ||
Change in fair value of interest ² | 19.0 | 26.2 |
Interest income on foreign exchange rate derivatives | 1.9 | 0.0 |
Interest income on loan receivables and financial assets | 15.1 | 15.2 |
Other financing income | 0.3 | 1.6 |
Exchange rate gains ³ | 2.0 | 5.2 |
Financing income | 41.5 | 48.3 |
| Interest expenses: | ||
Change in fair value of interest | -0.3 | -2.2 |
Interest expenses on lease liabilities | -27.5 | -23.4 |
Interest expense on foreign exchange rate derivatives | -0.2 | -2.9 |
Interest expenses on other financial liabilities | -12.4 | -6.8 |
Other financing expenses ⁴ | -5.8 | -5.2 |
Exchange rate losses ³ | -3.5 | -2.5 |
Financing expenses | -49.7 | -43.1 |
Total | -8.2 | 5.2 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
103 KONE Annual Review 2025
2.6 Income taxes
Pillar 2 legislation entered into force in Finland on January
1, 2024. The Group has applied the mandatory exception
to recognizing and disclosing information about deferred
tax assets and liabilities arising from Pillar 2 income taxes.
KONE is in scope of this legislation and has performed an
assessment of its potential Exposure of Pillar 2 income
taxes taking into consideration the OECD “Transitional
Safe Harbour and Penalty Relief” for Pillar 2 purposes.
Based on the assessment, most of the jurisdictions in
which the Group operates fall under the Safe Harbour
rules. The main jurisdictions in which the potential
exposure to top-up-tax exist are in the Middle East. The
assessment indicates the impact in terms of top-up tax to
be at the level of EUR 1.4 million (2024: 2.2 million).
| Taxes in the statement of income, | ||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Tax expense for current year | 364.5 | 332.0 |
Change in deferred tax assets and liabilities | -22.1 | -47.1 |
Tax expense for previous years | -7.6 | 8.2 |
Total | 334.8 | 293.1 |
| Reconciliation of income before taxes with total income taxes in the statement of | |||
| income, | |||
MEUR or as indicated | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Income before taxes | 1,326.8 | 1,254.1 | |
Tax calculated at the domestic corporation tax rate (20%) | 265.4 | 250.8 | |
Effect of different tax rates in foreign subsidiaries | 27.7 | 17.0 | |
Permanent differences | 5.4 | -3.7 | |
Taxes from previous years and reassessment of deferred tax assets | -1.0 | 11.7 | |
Deferred tax liability on undistributed earnings | 7.0 | 13.6 | |
Other | 30.3 | 3.7 | |
Total | 334.8 | 293.1 | |
Effective tax rate ¹ | % | 25.2 | 23.4 |
Tax rate of parent company | % | 20.0 | 20.0 |
1
The effective tax rate from the operations for the financial year 2025 was 23.4% excluding one-off items (reported in Other in
reconciliation) related to legal entity restructurings.
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
104 KONE Annual Review 2025
2.7 Earnings per share
| Earnings per share | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Net income attributable to the shareholders of the parent | |||
company | MEUR | 980.1 | 951.3 |
Weighted average number of shares | 1,000 shares | 517,810 | 517,501 |
Basic earnings per share | EUR | 1.89 | 1.84 |
Dilution effect of share-based incentive plans | 1,000 shares | 1,277 | 514 |
Weighted average number of shares, dilution adjusted | 1,000 shares | 519,087 | 518,014 |
Diluted earnings per share | EUR | 1.89 | 1.84 |
Consolidated financial statements | Notes to the consolidated financial statements | Financial performance
105 KONE Annual Review 2025
2.8 Other comprehensive income
| Components of other comprehensive income, | ||
| MEUR | ||
| Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Translation differences | -184.3 | 78.4 |
Hedging of foreign subsidiaries | 28.8 | -12.8 |
Changes in fair value | -14.8 | -1.6 |
Remeasurements of employee benefits | 15.7 | -10.7 |
| Cash flow hedges: | ||
Gains/losses incurred during the year | 19.1 | 8.0 |
Reclassifications included in profit or loss | -9.6 | -11.7 |
Cash flow hedges, net | 9.6 | -3.8 |
Income tax relating to components of other comprehensive income | -2.2 | 2.1 |
Total other comprehensive income, net of tax | -147.3 | 51.6 |
Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |||||
| Tax effects relating to components of other | Tax | Tax | ||||
| comprehensive income, | Gross | expense/ | Net of tax | Gross | expense/ | Net of tax |
| MEUR | amount | benefit | amount | amount | benefit | amount |
Translation differences | -184.3 | - | -184.3 | 78.4 | - | 78.4 |
Hedging of foreign subsidiaries | 28.8 | - | 28.8 | -12.8 | - | -12.8 |
Cash flow hedges | 9.6 | -0.5 | 9.1 | -3.8 | 0.1 | -3.7 |
Items that may be subsequently reclassified | ||||||
to statement of income | -146.0 | -0.5 | -146.5 | 61.8 | 0.1 | 61.9 |
Changes in fair value | -14.8 | - | -14.8 | -1.6 | - | -1.6 |
Remeasurements of employee benefits | 15.7 | -1.7 | 14.0 | -10.7 | 2.0 | -8.7 |
Items that will not be reclassified to statement of income | 0.9 | -1.7 | -0.8 | -12.3 | 2.0 | -10.3 |
| Total other comprehensive income, net of tax | -145.1 | -2.2 | -147.3 | 49.5 | 2.1 | 51.6 |
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
106 KONE Annual Review 2025
| Net working capital, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Inventories | 843.1 | 856.7 |
| Advances received and deferred | ||
revenue | -1,965.2 | -2,016.9 |
Accounts receivable | 2,350.7 | 2,494.8 |
| Deferred assets and income tax | ||
receivables | 778.7 | 812.5 |
| Accruals and income tax payables | -1,985.3 | -2,131.0 |
Provisions | -176.4 | -185.9 |
Accounts payable | -967.6 | -982.9 |
Other non-current assets | 60.9 | 47.0 |
Net deferred tax assets/liabilities | 263.4 | 278.4 |
Total | -797.6 | -827.2 |
1
Cash flow from operations before financing items and taxes
In this section
This section comprises the following notes, describing
components of KONE’s net working capital:
3.1 Inventories
3.2 Accounts receivable and contract assets and
liabilities
3.3 Deferred assets
3.4 Accruals
3.5 Provisions
3.6 Deferred tax assets and liabilities
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
Net working
capital
-798 MEUR
3
Net working capital
Cash flow
1
1,761 MEUR
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
107 KONE Annual Review 2025
3.1 Inventories
| Inventories, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Raw materials, supplies and finished goods | 371.9 | 364.2 |
Work in progress | 454.8 | 476.7 |
Advance payments | 16.4 | 15.9 |
Total | 843.1 | 856.7 |
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
108 KONE Annual Review 2025
Accounting principles
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
109 KONE Annual Review 2025
| Assets and liabilities related to contracts with customer, | |||
| MEUR | |||
| Note | Dec 31, 2025 | Dec 31, 2024 | |
Accounts receivable | 2,350.7 | 2,494.8 | |
Accrued income on maintenance contracts | 3.3 | 51.3 | 45.5 |
Unbilled contract revenue | 3.3 | 360.2 | 346.3 |
Other contract assets | 3.3 | 7.0 | 3.5 |
Assets related to contracts with customers | 2,769.1 | 2,890.1 | |
Deferred income on maintenance contracts | 3.4 | 372.5 | 418.1 |
Advances received and deferred revenue | 1,965.2 | 2,016.9 | |
Liabilities related to contracts with customers | 2,337.8 | 2,435.0 |
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
110 KONE Annual Review 2025
3.3 Deferred assets
| Deferred assets, | |||
| MEUR | Note | Dec 31, 2025 | Dec 31, 2024 |
Deferred interests | 1.7 | 1.9 | |
Accrued income on maintenance contracts | 3.2 | 51.3 | 45.5 |
Unbilled contract revenue | 3.2 | 360.2 | 346.3 |
Derivative assets | 5.3 | 18.3 | 44.4 |
Value added tax assets | 76.0 | 78.3 | |
Prepaid expenses and other receivables | 161.3 | 173.7 | |
Other contract assets | 3.2 | 7.0 | 3.5 |
Total | 675.8 | 693.6 |
3.4 Accruals
| Accruals, | |||
| MEUR | Note | Dec 31, 2025 | Dec 31, 2024 |
Accrued interests | 2.7 | 2.6 | |
Deferred income on maintenance contracts | 3.2 | 372.5 | 418.1 |
Late cost accruals ¹ | 182.2 | 212.0 | |
Accrued salaries, wages and employment costs | 637.3 | 625.8 | |
Derivative liabilities | 5.3 | 18.8 | 44.5 |
Value added tax liabilities | 80.7 | 75.1 | |
Accruals on acquisitions | 21.1 | 26.7 | |
Other accruals | 531.2 | 581.8 | |
Total | 1,846.5 | 1,986.6 |
¹
Includes accrual for invoices still pending to be received on completed New Building Solutions and Modernization contracts.
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
111 KONE Annual Review 2025
3.5 Provisions
| Jan 1–Dec 31, 2025 | ||||||
Provision for | Provision | |||||
| Changes in provisions, | Provision | Provision | business | for loss | Other | |
| MEUR | for warranty | for claims | restructuring | contracts | provisions | Total |
Total provisions at beginning of period | 63.6 | 5.5 | 31.4 | 44.5 | 40.9 | 185.9 |
Translation differences | -2.5 | 0.0 | -1.1 | -2.7 | -3.1 | -9.4 |
Increase | 13.8 | 4.8 | 6.9 | 51.1 | 31.8 | 108.4 |
Provisions used | -8.9 | -2.0 | -24.3 | -32.5 | -4.9 | -72.6 |
Reversal of provisions | -3.7 | -1.4 | -5.0 | -10.0 | -17.3 | -37.4 |
Companies acquired | 0.1 | 0.3 | - | 0.1 | 0.9 | 1.4 |
Total provisions at end of period | 62.4 | 7.2 | 7.9 | 50.6 | 48.2 | 176.4 |
of which non-current | 34.9 | |||||
of which current | 141.5 |
| Jan 1–Dec 31, 2024 | ||||||
Provision for | Provision | |||||
| Changes in provisions, | Provision | Provision | business | for loss | Other | |
| MEUR | for warranty | for claims | restructuring | contracts | provisions | Total |
Total provisions at beginning of period | 74.0 | 8.2 | 26.4 | 48.3 | 40.0 | 196.9 |
Translation differences | 1.1 | 0.0 | 0.5 | 1.2 | 0.6 | 3.3 |
Increase | 16.9 | 2.9 | 26.9 | 50.5 | 20.4 | 117.6 |
Provisions used | -14.3 | -2.0 | -16.4 | -46.1 | -8.9 | -87.7 |
Reversal of provisions | -14.0 | -3.7 | -6.2 | -9.3 | -12.2 | -45.5 |
Companies acquired | 0.0 | 0.2 | 0.3 | 0.0 | 0.9 | 1.4 |
Total provisions at end of period | 63.6 | 5.5 | 31.4 | 44.5 | 40.9 | 185.9 |
of which non-current | 42.0 | |||||
of which current | 143.9 |
Consolidated financial statements | Notes to the consolidated financial statements | Net working capital
112 KONE Annual Review 2025
| Deferred tax assets by category, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Tax losses carried forward | 0.4 | 2.5 |
Provisions and accruals | 297.5 | 311.6 |
Post-retirement obligations | 11.2 | 15.8 |
Inventory | 35.8 | 32.5 |
Property, plant and equipment | 23.5 | 14.0 |
Other temporary differences | 107.3 | 103.3 |
Offset against deferred tax liabilities | -110.0 | -114.0 |
Total | 365.7 | 365.7 |
| Changes in deferred tax assets during the period, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Total at beginning of period | 365.7 | 320.2 |
Translation differences | -4.1 | 7.3 |
Change in statement of income | 6.2 | 31.7 |
Charged or credited to equity | -2.2 | 2.1 |
Acquisitions, divestments and other | - | 4.5 |
Total at end of period | 365.7 | 365.7 |
| Deferred tax liabilities by category, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Property, plant and equipment | 30.7 | 12.5 |
Goodwill and intangible assets | 90.1 | 87.1 |
Other temporary differences | 91.6 | 101.7 |
Offset against deferred tax assets | -110.0 | -114.0 |
Total | 102.4 | 87.3 |
| Changes in deferred tax liabilities during the period, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Total at beginning of period | 87.3 | 86.3 |
Translation difference | 19.0 | 4.8 |
Change in statement of income | -15.9 | -15.4 |
Acquisitions, divestments and other | 12.0 | 11.6 |
Total at end of period | 102.4 | 87.3 |
Net deferred tax assets and liabilities | 263.3 | 278.4 |
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
113 KONE Annual Review 2025
In this section
This section comprises the following notes, which
describe acquisitions and capital expenditure at
KONE:
4.1 Acquisitions and divestments
4.2 Goodwill
4.3 Other intangible assets
4.4 Tangible assets
Acquisitions and capital
expenditure
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
Acquisitions and
capex
496 MEUR
4
Number of
acquisitions 33
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
114 KONE Annual Review 2025
4.1 Acquisitions and divestments
Acquisitions
KONE completed 33 (29) acquisitions during 2025 for a
total consideration of EUR 117.7 (125.6) million. The
acquired businesses are specialized in the elevator and
escalator businesses and are predominantly located in
Europe. The acquisitions completed during the financial
period were not material individually or as a whole to
KONE’s 2025 financial statements. The sales consolidated
from the companies acquired during 2025 did not have a
material impact on KONE’s sales for the financial period.
Of the total consideration, based on provisional
assessments, EUR 72.0 million was allocated to customer-
related intangibles in other intangible assets. Acquired
customer-related intangibles are typically amortized over
ten years. Note 4.3 provides more detail on other
intangible assets.
The fair values of the acquired net assets, based on a
provisional assessment, as well as the acquisition costs,
are summarized in the following table. The considerations
were paid for in cash, except for certain deferred
considerations, expected to be paid later. For most of the
completed acquisitions, the acquisition cost includes a
contingent consideration, which is typically determined by
the financial performance of the acquired business after
the date of the acquisition. Changes in the fair value of
the contingent consideration after the acquisition date are
recognized in the profit or loss. However, contingent
considerations are typically realized in the amount initially
recognized. KONE acquired a 100% interest in all
businesses acquired in 2025, with the exception of two
acquisitions.
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
115 KONE Annual Review 2025
| Assets and liabilities of the acquired businesses, | ||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 |
Customer-related intangibles | 72.0 | 67.8 |
Other intangible assets | 0.1 | 0.1 |
Tangible assets | 1.5 | 3.4 |
Deferred tax assets | 0.0 | 1.0 |
Inventories | 1.6 | 5.0 |
Accounts receivables and other assets | 8.8 | 18.3 |
Cash and cash equivalents | 8.1 | 4.4 |
Total assets | 92.0 | 100.0 |
Employee benefit liabilities | 0.3 | 0.7 |
Interest-bearing loans | 0.1 | 0.5 |
Provisions | 1.1 | 1.4 |
Deferred tax liabilities | 12.0 | 11.6 |
Other liabilities | 13.5 | 15.1 |
Total liabilities | 27.0 | 29.3 |
Net assets | 64.7 | 70.2 |
Non-controlling interest | 0.2 | 0.5 |
Acquisition cost paid in cash | 104.8 | 106.7 |
Contingent and deferred consideration | 12.9 | 18.8 |
Acquisition cost at date of acquisitions | 117.7 | 125.6 |
Goodwill | 52.9 | 55.4 |
Changes in the acquisition cost occurring after the acquisition date and recognized in the statement of income totaled EUR 1.7 (-0.2) million.
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
116 KONE Annual Review 2025
| Goodwill by Area, | ||||||
| MEUR | Discount rates used | Discount rates used | ||||
| Dec 31, 2025 | % | (pre-tax), % | Dec 31, 2024 | % | (pre-tax), % | |
Americas | 343.1 | 22 | 11.03 | 383.4 | 25 | 11.23 |
Europe | 977.0 | 63 | 9.59 | 924.1 | 59 | 8.90 |
APMEA | 61.0 | 4 | 11.65 | 64.6 | 4 | 10.77 |
Greater China | 171.8 | 11 | 9.14 | 186.2 | 12 | 8.60 |
Total | 1,552.9 | 1,558.4 |
| Changes in goodwill, | |||
| MEUR | Note | Dec 31, 2025 | Dec 31, 2024 |
Opening net book value | 1,558.4 | 1,469.0 | |
Translation differences | -60.8 | 34.0 | |
Increase | 3.1 | - | |
Decrease | -0.7 | - | |
Companies acquired | 4.1 | 52.9 | 55.4 |
Closing net book value | 1,552.9 | 1,558.4 |
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
117 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
118 KONE Annual Review 2025
4.3 Other intangible assets
KONE often acquires elevator, escalator, and door service
companies, where the excess of consideration transferred
over the net assets of the acquiree as at closing is
allocated to the acquired customer-related intangibles,
and consequently majority of intangible assets carried
consist of these customer contract assets. Intangible
assets also include expenditure on acquired patents,
trademarks and licenses, development expenditure
related to certain software as well as acquired software
licenses.
Accounting principles
| Other intangible assets, | Customer- related | Jan 1–Dec 31, 2025 | ||
| MEUR | Note | intangibles | Other | Total |
Opening gross acquisition cost | 682.8 | 308.4 | 991.2 | |
Opening accumulated amortization and impairment | -419.0 | -238.9 | -657.9 | |
Opening net book value | 263.8 | 69.5 | 333.3 | |
| Changes during the period | ||||
Translation differences | -4.0 | -1.1 | -5.1 | |
Increase | 0.3 | 11.3 | 11.7 | |
Decrease | -0.1 | -1.6 | -1.7 | |
Reclassifications | - | -9.7 | -9.7 | |
Companies acquired | 4.1 | 72.0 | 0.1 | 72.0 |
Amortization | -53.2 | -10.7 | -63.9 | |
Closing net book value | 278.9 | 57.8 | 336.7 | |
Closing gross acquisition cost | 751.1 | 301.4 | 1,052.4 | |
Closing accumulated amortization and impairment | -472.2 | -243.5 | -715.7 | |
Closing net book value | 278.9 | 57.8 | 336.7 |
| Other intangible assets, | Customer- related | Jan 1–Dec 31, 2024 | ||
| MEUR | Note | intangibles | Other | Total |
Opening gross acquisition cost | 612.9 | 279.1 | 892.0 | |
Opening accumulated amortization and impairment | -372.3 | -232.5 | -604.8 | |
Opening net book value | 240.6 | 46.6 | 287.2 | |
| Changes during the period | ||||
Translation differences | 2.1 | 0.4 | 2.5 | |
Increase | 3.0 | 36.8 | 39.8 | |
Decrease | -3.0 | -2.8 | -5.7 | |
Reclassifications | - | -0.2 | -0.2 | |
Companies acquired | 4.1 | 67.8 | 0.1 | 67.9 |
Amortization | -46.7 | -11.5 | -58.2 | |
Closing net book value | 263.8 | 69.5 | 333.3 | |
Closing gross acquisition cost | 682.8 | 308.4 | 991.2 | |
Closing accumulated amortization and impairment | -419.0 | -238.9 | -657.9 | |
Closing net book value | 263.8 | 69.5 | 333.3 |
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
119 KONE Annual Review 2025
4.4 Tangible assets
| Jan 1–Dec 31, 2025 | |||||||||
Machinery | Leased | Fixed assets | |||||||
| Tangible assets, | Leased | & | machinery & | under | Advance | ||||
MEUR | Note | Land | Buildings | buildings | equipment | equipment | construction | payments | Total |
Opening gross acquisition cost | 5.9 | 402.4 | 486.1 | 806.4 | 376.4 | 46.1 | 2.1 | 2,125.4 | |
| Opening accumulated depreciation | - | -192.3 | -290.8 | -587.7 | -156.1 | - | - | -1,226.9 | |
Opening net book value | 5.9 | 210.1 | 195.3 | 218.7 | 220.4 | 46.1 | 2.1 | 898.5 | |
| Changes during the period | |||||||||
Translation differences | 0.0 | -11.2 | -11.1 | -12.6 | -11.7 | -0.6 | -0.2 | -47.5 | |
Increase | - | 14.3 | 71.4 | 97.1 | 152.8 | 29.4 | 1.8 | 366.8 | |
Decrease | -0.1 | -0.5 | -3.6 | -6.3 | -17.9 | -1.3 | - | -29.7 | |
Reclassifications | - | 24.7 | 0.0 | 39.4 | 0.0 | -52.9 | -1.5 | 9.6 | |
Companies acquired | 4.1 | 0.0 | 0.1 | 0.5 | 0.5 | 0.3 | - | - | 1.5 |
Depreciation | - | -19.1 | -64.4 | -77.3 | -95.9 | 0.0 | - | -256.7 | |
Closing net book value | 5.8 | 218.4 | 188.2 | 259.5 | 247.9 | 20.7 | 2.1 | 942.5 | |
Closing gross acquisition cost | 5.8 | 423.6 | 470.6 | 866.5 | 418.0 | 20.7 | 2.1 | 2,207.3 | |
Closing accumulated depreciation | - | -205.2 | -282.4 | -607.0 | -170.1 | - | - | -1,264.7 | |
Closing net book value | 5.8 | 218.4 | 188.2 | 259.5 | 247.9 | 20.7 | 2.1 | 942.5 |
Consolidated financial statements | Notes to the consolidated financial statements | Acquisitions and capital expenditure
120 KONE Annual Review 2025
| Jan 1–Dec 31, 2024 | |||||||||
Machinery | Leased | Fixed assets | |||||||
| Tangible assets, | Leased | & | machinery & | under | Advance | ||||
MEUR | Note | Land | Buildings | buildings | equipment | equipment | construction | payments | Total |
Opening gross acquisition cost | 5.9 | 350.9 | 435.6 | 750.8 | 280.4 | 50.5 | 3.6 | 1,877.8 | |
| Opening accumulated depreciation | - | -173.1 | -243.3 | -547.3 | -134.3 | - | - | -1,098.1 | |
Opening net book value | 5.9 | 177.8 | 192.3 | 203.5 | 146.0 | 50.5 | 3.6 | 779.7 | |
| Changes during the period | |||||||||
Translation differences | 0.0 | 3.3 | 4.1 | 4.1 | 4.0 | -0.6 | 0.0 | 14.9 | |
Increase | - | 15.3 | 72.3 | 62.2 | 159.9 | 48.9 | 1.7 | 360.2 | |
Decrease | 0.0 | -0.4 | -9.8 | -2.9 | -6.5 | -5.8 | -0.4 | -25.9 | |
Reclassifications | - | 30.7 | 0.5 | 18.7 | 0.0 | -46.9 | -2.8 | 0.2 | |
Companies acquired | 4.1 | - | 0.2 | 0.7 | 2.4 | 0.1 | - | 0.0 | 3.4 |
Depreciation | - | -16.7 | -64.9 | -69.3 | -83.1 | - | - | -234.0 | |
Closing net book value | 5.9 | 210.1 | 195.3 | 218.7 | 220.4 | 46.1 | 2.1 | 898.5 | |
Closing gross acquisition cost | 5.9 | 402.4 | 486.1 | 806.4 | 376.4 | 46.1 | 2.1 | 2,125.4 | |
Closing accumulated depreciation | 0.0 | -192.3 | -290.8 | -587.7 | -156.1 | - | - | -1,226.9 | |
Closing net book value | 5.9 | 210.1 | 195.3 | 218.7 | 220.4 | 46.1 | 2.1 | 898.5 |
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
121 KONE Annual Review 2025
Capital structure
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
Interest
-
bearing
net debt
-700 MEUR
5
Equity per
share
5.40 EUR
In this section
This section comprises the following notes, which
describe the capital structure of KONE:
5.1 Capital management
5.2 Shareholders’ equity
5.3 Financial risks and instruments
5.4 Shares, deposits and other assets
5.5 Commitments
5.6 Employee benefits
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
122 KONE Annual Review 2025
5.1 Capital Management
KONE aims to manage its capital in a way that supports
the profitable growth of operations by securing an
adequate liquidity and capitalization of the Group at all
times. The target is to maintain a capital structure that
contributes to the creation of shareholder value.
The assets employed in KONE’s business consist
principally of net working capital, fixed assets, and
financial investments which are funded by equity and net
debt, as shown in the adjacent table. Due to the business
model and the business processes of KONE, the level of
total assets employed is relatively low. KONE aims to
maintain a negative net working capital to ensure a
healthy cash flow even when the business is growing and
to maintain a high return on assets employed.
Cash flow from operations is the principal source of
KONE’s financing. External funding, as well as cash and
financial investments, are managed centrally by KONE
Treasury according to the KONE Treasury Policy. Financial
investments are made only with counterparties with high
creditworthiness and mainly in short term instruments to
ensure continuous liquidity.
KONE has not defined a specific target for its capital
structure, but the aim is to ensure strong credit quality to
provide for ample access to external funding sources and
to support the growth ambitions of the business. KONE
considers its current capital structure to be a strength, as
it allows for capturing potential value creating business
opportunities, should such opportunities arise. If deemed
necessary, KONE could also utilize its borrowing capacity,
which could result in a higher level of debt and financial
gearing for a period of time. At the end of 2025, the
funding of KONE was secured through existing committed
credit facilities, loan arrangements, cash, and financial
investments.
To ensure an efficient internal allocation and utilization
of its capital resources, KONE measures internally the
financial results of its business activities after a capital
allocation charge. The capital allocation charge is based
on the assets employed in the business activity and the
weighted average cost of capital (WACC).
The WACC is also used as a hurdle rate when
evaluating the shareholder value creation potential of new
acquisitions, major capital expenditure and other
investments. The valuation methods used are payback
time, discounted cash flow as well as earnings and cash
flow multipliers.
| Non-current assets by country, | Dec 31, | Dec 31, |
| MEUR | 2025 | 2024 |
USA | 575.0 | 602.1 |
Germany | 418.8 | 377.8 |
China | 411.9 | 457.9 |
Spain | 280.2 | 276.2 |
France | 264.2 | 221.9 |
Italy | 239.9 | 215.5 |
Finland | 213.7 | 219.2 |
Other | 967.0 | 950.7 |
Total | 3,370.6 | 3,321.2 |
| Capital management, | |||||
| MEUR | |||||
| 2025 | 2024 | 2023 | 2022 | 2021 | |
| Assets employed | |||||
Goodwill and shares | 1,645.4 | 1,657.3 | 1,566.9 | 1,536.4 | 1,549.7 |
Tangible and other intangible assets | 1,279.3 | 1,231.8 | 1,066.9 | 924.9 | 953.6 |
Net working capital | -797.6 | -827.2 | -861.2 | -903.9 | -1,468.2 |
Total assets employed | 2,127.0 | 2,061.9 | 1,772.6 | 1,557.5 | 1,035.0 |
| Capital employed | |||||
Equity | 2,826.8 | 2,893.1 | 2,786.0 | 2,866.5 | 3,199.2 |
Interest-bearing net debt | -699.8 | -831.2 | -1,013.4 | -1,309.0 | -2,164.1 |
Total capital employed | 2,127.0 | 2,061.9 | 1,772.6 | 1,557.5 | 1,035.1 |
Gearing | -24.8% | -28.7% | -36.4% | -45.7% | -67.6% |
Equity ratio | 39.9% | 39.8% | 40.9% | 40.3% | 41.2% |
| Change in interest-bearing net debt, | ||
| MEUR | ||
| Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Interest-bearing net debt at beginning of period | -831.2 | -1,013.4 |
Interest-bearing net debt at end of period | -699.8 | -831.2 |
Change in interest-bearing net debt | 131.4 | 182.2 |
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
123 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
124 KONE Annual Review 2025
Treasury shares | Number of shares | Purchase cost, MEUR |
Jan 1, 2025 | 11,867,752 | 217.5 |
Distributed to the share-based incentive plan, January | -50,484 | -2.3 |
Distributed to the share-based incentive plan, February | -253,248 | -11.8 |
Distributed as the annual compensation of the Board, May | -7,605 | -0.4 |
Distributed to the share-based incentive plan, August | -19,177 | -0.9 |
Dec 31, 2025 | 11,537,238 | 202.1 |
Jan 1, 2024 | 12,159,159 | 230.2 |
Distributed to the share-based incentive plan, January | -280,902 | -12.3 |
Distributed as the annual compensation of the Board, April | -9,027 | -0.4 |
Distributed to the share-based incentive plan, June | -1,478 | -0.1 |
Dec 31, 2024 | 11,867,752 | 217.5 |
Reconciliation of own shares | Quantity | Purchase cost, MEUR | Average price, EUR |
December 31, 2024 | 11,867,752 | 217.5 | 18.32 |
January 31, 2025 | -50,484 | -2.3 | 45.19 |
February 13, 2025 | -253,248 | -11.8 | 46.44 |
May 2, 2025 | -7,605 | -0.4 | 49.13 |
August 28, 2025 | -19,177 | -0.9 | 49.13 |
December 31, 2025 | 11,537,238 | 202.1 | 17.52 |
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
125 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
126 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
127 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
128 KONE Annual Review 2025
| Maturity analysis of financial liabilities | Dec 31, 2025 | Dec 31, 2024 | ||||||
| and interest payment, | ||||||||
| MEUR | < 1 year | 1-5 years | > 5 years | Total | < 1 year | 1-5 years | > 5 years | Total |
| Interest-bearing debt | ||||||||
Loans | -200.3 | -0.2 | -200.0 | -400.4 | - | -200.7 | -200.0 | -400.7 |
Lease liabilities | -141.1 | -269.3 | -45.2 | -455.5 | -132.8 | -265.1 | -34.7 | -432.6 |
Current loans and other liabilities | 0.0 | - | - | 0.0 | -2.2 | - | - | -2.2 |
Used bank overdraft limits | -1.9 | - | - | -1.9 | -0.9 | - | - | -0.9 |
Option liabilities from acquisitions | - | -10.0 | -1.8 | -11.8 | - | -9.2 | - | -9.2 |
| Non-interest-bearing debt | ||||||||
Accounts payable | -967.6 | - | - | -967.6 | -982.9 | - | - | -982.9 |
| Derivatives | ||||||||
Capital inflow | 2,567.3 | 160.5 | - | 2,727.8 | 3,241.7 | 153.5 | - | 3,395.2 |
Capital outflow | -2,569.9 | -163.1 | - | -2,733.0 | -3,245.2 | -152.7 | - | -3,397.9 |
Interest payments | -23.8 | -48.0 | -11.0 | -82.7 | -24.3 | -50.3 | -16.7 | -91.3 |
Net outflow | -1,337.1 | -330.0 | -257.9 | -1,925.1 | -1,146.5 | -524.6 | -392.9 | -2,064.0 |
| Dec 31, 2025 | Dec 31, 2024 | |||
| Fair values of derivative financial instruments, | Derivative | |||
MEUR | Derivative assets | liabilities | Fair value, net | Fair value, net |
| Foreign exchange derivatives | ||||
In cash flow hedge accounting | 12.9 | -16.7 | -3.8 | -13.5 |
In net investment hedge accounting | 1.0 | - | 1.0 | -13.3 |
Other foreign exchange hedges | 4.5 | -2.1 | 2.3 | 26.7 |
Total | 18.3 | -18.8 | -0.5 | -0.1 |
| Nominal values of derivative financial instruments, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
| Foreign exchange derivatives | ||
In cash flow hedge accounting | 1,334.7 | 1,313.5 |
In net investment hedge accounting | 122.6 | 315.9 |
Other foreign exchange hedges | 1,270.5 | 1,765.8 |
Total | 2,727.8 | 3,395.2 |
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
129 KONE Annual Review 2025
| Dec 31, 2025 | ||||||
Measured at | ||||||
Measured at | fair value | |||||
| Values of financial assets and liabilities by | fair value | Measured at | through other | |||
| category, | through | amortized comprehensive | Total book | |||
MEUR | Note | profit or loss | cost | income | value | |
| Non-current assets | ||||||
| Shares and other non-current financial assets¹ | 5.4 | - | - | 86.7 | 86.7 | |
Non-current loans receivable | I | 5.4 | - | 5.4 | - | 5.4 |
| Current assets | ||||||
Accounts receivable | - | 2,350.7 | - | 2,350.7 | ||
Derivative assets | 4.5 | - | 13.9 | 18.3 | ||
Current deposits and loans receivable | I | 5.4 | 935.9 | 332.5 | - | 1,268.4 |
Cash and cash equivalents | I | - | 440.5 | - | 440.5 | |
Total financial assets | 940.4 | 3,129.1 | 100.5 | 4,170.0 | ||
| Non-current liabilities ² | ||||||
Loans | I | - | 200.2 | - | 200.2 | |
| Current liabilities | ||||||
Loans | I | - | 200.3 | - | 200.3 | |
Other interest-bearing liabilities ³ | I | - | 1.9 | - | 1.9 | |
Option liabilities from acquisitions | I | 11.8 | - | - | 11.8 | |
Accounts payable | - | 967.6 | - | 967.6 | ||
Derivative liabilities | 2.1 | - | 16.7 | 18.8 | ||
Total financial liabilities | 13.9 | 1,369.9 | 16.7 | 1,400.5 | ||
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
130 KONE Annual Review 2025
| Dec 31, 2024 | ||||||
Measured at | ||||||
Measured at | fair value | |||||
| Values of financial assets and liabilities by | fair value | Measured at | through other | |||
| category, | through | amortized comprehensive | Total book | |||
MEUR | Note | profit or loss | cost | income | value | |
| Non-current assets | ||||||
| Shares and other non-current financial assets | 5.4 | - | - | 98.9 | 98.9 | |
Non-current loans receivable | I | 5.4 | - | 4.4 | - | 4.4 |
| Current assets | ||||||
Accounts receivable | - | 2,494.8 | - | 2,494.8 | ||
Derivative assets | 31.2 | - | 13.3 | 44.4 | ||
Current deposits and loans receivable | I | 5.4 | 909.1 | 313.9 | - | 1,223.0 |
Cash and cash equivalents | I | - | 576.0 | - | 576.0 | |
Total financial assets | 940.3 | 3,389.1 | 112.2 | 4,441.5 | ||
| Non-current liabilities ¹ | ||||||
Loans | I | - | 400.7 | - | 400.7 | |
| Current liabilities | ||||||
Other interest-bearing liabilities ² | I | - | 3.1 | - | 3.1 | |
Option liabilities from acquisitions | I | 9.2 | - | - | 9.2 | |
Accounts payable | - | 982.9 | - | 982.9 | ||
Derivative liabilities | 4.5 | - | 40.0 | 44.5 | ||
Total financial liabilities | 13.7 | 1,386.7 | 40.0 | 1,440.5 | ||
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
131 KONE Annual Review 2025
| Shares, deposits and other assets, | |||
| MEUR | Dec 31, 2025 | Dec 31, 2024 | |
| Shares and other non-current assets | |||
Shares | 89.8 | 96.2 | |
Other financial assets | 2.7 | 2.7 | |
Non-current loans receivable | I | 5.4 | 4.4 |
Investment properties | II | - | 0.4 |
Other non-current receivables | II | 60.9 | 46.6 |
Total | 158.9 | 150.3 | |
| Deposits and other current assets | |||
Current deposits | I | 1,258.4 | 1,221.9 |
Current loans receivable | I | 10.0 | 1.1 |
Total | 1,268.4 | 1,223.0 |
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
132 KONE Annual Review 2025
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
133 KONE Annual Review 2025
Other post-employment | ||||||||
| Changes in benefit plan assets and liabilities by | Defined benefit plan liability | benefit liability | Fair value of plan assets | Net defined benefit balance | ||||
category, MEUR | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
Balance at beginning of period ¹ | 568.5 | 535.1 | 8.1 | 7.5 | 435.5 | 418.7 | 141.2 | 123.9 |
Current service costs | 11.2 | 18.0 | 0.2 | 0.2 | - | - | 11.4 | 18.2 |
Interest expense | 24.1 | 23.5 | 0.3 | 0.3 | - | - | 24.4 | 23.8 |
Interest income | - | - | - | - | 19.9 | 18.8 | -19.9 | -18.8 |
Other | 7.4 | -3.9 | - | - | -3.8 | -3.2 | 11.2 | -0.7 |
| Components of defined benefit costs recognized | 42.6 | 37.7 | 0.5 | 0.5 | 16.1 | 15.6 | 27.1 | 22.6 |
| in the consolidated statements of income | ||||||||
| Return on plan assets, excluding interest income | - | - | - | - | -2.9 | -18.9 | 2.9 | 18.9 |
Remeasurements | -14.0 | -11.7 | -0.5 | 0.3 | - | - | -14.5 | -11.5 |
| Remeasurements recognized in the consolidated | -14.0 | -11.7 | -0.5 | 0.3 | -2.9 | -18.9 | -11.5 | 7.4 |
| statements of comprehensive income | ||||||||
Employer contributions | - | - | - | - | 7.6 | 20.6 | -7.6 | -20.6 |
Plan participants’ contributions | 2.0 | 2.2 | 0.2 | 0.2 | 2.2 | 2.4 | - | - |
Benefits paid | -32.2 | -27.2 | -1.0 | -0.8 | -25.9 | -21.3 | -7.3 | -6.7 |
Settlement payments | -3.8 | -0.1 | - | - | -3.8 | -0.1 | - | - |
Business combinations, disposals and other | 0.3 | 0.7 | - | - | 1.2 | - | -0.9 | 0.7 |
Foreign currency translation effects | -24.1 | 17.3 | -0.9 | 0.5 | -28.9 | 18.5 | 3.9 | -0.7 |
Other reconciling items | -57.8 | -7.2 | -1.7 | -0.1 | -47.6 | 20.1 | -11.9 | -27.4 |
Balance at end of period | 539.4 | 553.8 | 6.5 | 8.1 | 401.1 | 435.5 | 144.8 | 126.5 |
Present value of unfunded obligations | 137.0 | 97.9 | 6.5 | 8.1 | - | - | 143.5 | 106.1 |
Present value of funded obligations | 402.4 | 455.9 | - | - | - | - | 402.4 | 455.9 |
Fair value of benefit plans' assets | - | - | - | - | 401.1 | 435.5 | -401.1 | -435.5 |
Total | 539.4 | 553.8 | 6.5 | 8.1 | 401.1 | 435.5 | 144.8 | 126.5 |
¹ Includes a reclassification of EUR 14.7 million from other liabilities to defined benefit plan liability. |
As of December 31, 2025 employee benefit liabilities were EUR 545.8 (561.9) million. Employee benefit liabilities comprise EUR 526.4 (537.4) million with weighted average duration of over 5 years and EUR 19.5 (24.6) million
with weighted average duration of 1–5 years.
The expected contributions to defined benefit type arrangements in 2025 are EUR 7.7 million.
The actual return on defined benefit plans’ assets was EUR 16.9 (0.0) million.
Consolidated financial statements | Notes to the consolidated financial statements | Capital structure
134 KONE Annual Review 2025
| Fair values of major classes of plan assets, | ||
| MEUR | Dec 31, 2025 | Dec 31, 2024 |
Fair value of plan assets with a quoted market price | 373.1 | 402.6 |
Other | 27.9 | 32.9 |
Total | 401.1 | 435.5 |
| Amounts recognized in the statement of income, | |||
| MEUR | Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Defined contribution pension plans | 348.8 | 341.9 | |
Defined benefit pension plans | 26.6 | 22.1 | |
Other post-employment benefits | 0.5 | 0.5 | |
Total | 375.9 | . | 364.5 |
| Defined benefit plans: assumptions used in calculating | Dec 31, 2025 | Dec 31, 2024 | ||
| benefit obligations | Europe | USA | Europe | USA |
Discount rate | 4.2% | 5.3% | 4.1% | 5.5% |
Future salary increase | 2.3% | - | 1.6% | - |
Future pension increase | 1.3% | - | 4.6% | - |
| Sensitivity of the defined benefit | |||
| obligation to changes in actuarial | Change in | Impact on defined benefit obligation | |
| assumptions | assumptions | Dec 31, 2025 | Dec 31, 2024 |
Discount rate | +0.25p.p. | -2.3% | -1.9% |
Discount rate | -0.25p.p. | 2.5% | 3.0% |
Future pension increase | +0.25p.p. | 1.0% | 1.1% |
Future pension increase | -0.25p.p. | -1.0% | -1.0% |
Sensitivities are calculated by changing one assumption at a time while keeping other variables constant.
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
135 KONE Annual Review 2025
Other notes
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
6
In this section
This section comprises the following notes
concerning rewards and related parties to KONE:
6.1 Management remuneration
6.2 Share-based payments
6.3 Related party transactions
6.4 Events after the reporting period
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
136 KONE Annual Review 2025
| Compensation paid to the Board of Directors, ¹ ² | ||
| EUR, thousand | ||
| Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |
Herlin Antti, Chairman of the Board | 230.0 | 230.0 |
Herlin Jussi, Vice Chair of the Board ³ | 229.4 | 241.3 |
Agrawala Banmali ⁴ | 110.0 | - |
Alahuhta Matti | 120.0 | 120.0 |
Duinhoven Susan | 130.0 | 130.0 |
Fredriksson Marika | 130.0 | 130.0 |
Herlin Iiris | 110.0 | 110.0 |
Ihamuotila Timo | 120.0 | 120.0 |
Mikkilineni Krishna | 110.0 | 110.0 |
Kant Ravi ⁵ | - | 110.0 |
Total | 1,289.4 | 1,301.3 |
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
137 KONE Annual Review 2025
| Jan 1–Dec 31, 2025 | Jan 1–Dec 31, 2024 | |||
The President & CEO | Members of the | The President & CEO | Members of the | |
| Philippe Delorme | Executive Board | Philippe Delorme | Executive Board | |
Base salary | 844.1 | 4,261.0 | 819.4 | 3,880.2 |
Benefits | 87.8 | 695.2 | 131.7 | 999.0 |
Annual short-term incentive | 1,017.0 | 1,983.6 | - | 2,502.1 |
Long-term incentive plan | - | 9,574.0 | - | 3,854.7 |
Pensions | 80.0 | 21.0 | 80.0 | 18.3 |
Total compensation | 2,028.9 | 16,534.8 | 1,031.2 | 11,254.3 |
| President and CEO - | The President and | Executive Board - | Executive Board - | |||
Number of shares, | CEO - Number of | Number of shares, | Number of | |||
Performance | maximum earning | transferred shares | maximum earning | transferred shares | ||
| Plan ² | Period | Vesting Year | opportunity ³ | for vested plans | opportunity ³ | for vested plans |
| LTI 2022 | Jan 2022 - Dec | 2025 | - | - | 250,445 | 72,870 |
| 2024 | ||||||
| LTI 2023 | Jan 2023 - Dec | 2026 | - | - | 296,081 | 11,200 |
| 2025 | ||||||
| LTI 2024 | Jan 2024 - Dec | 2027 | 85,247 | - | 332,465 | 7,977 |
| 2026 |
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
138 KONE Annual Review 2025
Executive Board
The compensation for the members of the Executive
Board (excl. the President and CEO) comprises an annual
base salary, short-term incentive plan, long-term
incentive plan and fringe benefits. The short-term
incentive is based on KONE’s financial targets and
strategic performance, as well as individual performance.
The achievement for the pre-set targets for 2025 is
determined by the Nomination and Compensation
Committee and may not exceed 100 percent of the annual
base salary. The members of the Executive Board are
included in the performance based long-term incentive
plans for the top management. Additional information
concerning share-based incentives of the Executive
Board is disclosed in note 6.2 Share-based payments. No
separate agreement regarding early retirement has been
made for the members of the Executive Board. The
compensation for the termination of the employment
contract prior to retirement is a maximum of 15 months’
salary, which includes the salary for a six-month term of
notice.
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
139 KONE Annual Review 2025
6.2 Share-based payments
KONE has two share-based incentive plan structures, a
performance-based long-term incentive plan structure
(LTI) and a restricted share plan structure (RSP).
Share-based payments recognized as an expense in
the statements of income amounted to EUR 39.5 (38.0)
million in 2025.
Performance based long-term incentive plan
structure
The performance based long-term incentive plan
structure (LTI) emphasizes profitable growth and
sustainability. It consists of annually commencing
individual share plans, each with a three-year rolling
performance period. The performance criteria for each
commencing performance year is determined on an
annual basis. The plans vest and are delivered in one
portion after the three-year performance period, based on
accumulated outcomes of each performance year. If the
participant's employment or service relationship with
KONE Group terminates before the end of the
performance period, the participant, as a rule, forfeits the
share award without compensation.
The target group and targets for each annually
commencing long-term incentive plan as well as possible
rewards are decided upon annually by the Board. As part
of the plan for the top management, a long-term share
ownership target has been set. For the Executive Board
members, the ownership target of KONE shares
corresponds to a minimum of five years’ annual base
salary. For other selected top management positions, the
ownership target corresponds a minimum of two years’
base salary.
The performance based long-term incentive plan is
targeted to approximately 600 top leaders annually,
including the President and CEO, members of the
Executive Board and selected key employees of KONE
Group. The performance criteria applied to the 2022,
2023, 2024 and 2025 performance years are based on
annual growth in sales, adjusted EBIT margin (jointly 80%)
and improvements in sustainability performance. In 2025,
sustainability performance is assessed through a
Sustainability Index, which measures progress in carbon
Performance based long-term incentive plans as of December 31, 2025
Plan | LTI 2022 | LTI 2023 | LTI 2024 | LTI 2025 | |
| Jan 2022 - | Jan 2023 - | Jan 2024 - | Jan 2025 - | ||
| Performance Period | Dec 2024 | Dec 2025 | Dec 2026 | Dec 2027 | |
Vesting year 2025 | 2026 | 2027 | 2028 | ||
| Performance criteria | Adjusted EBIT Margin % and Sales Growth: 80% | ||||
| Sustainability: 20% | |||||
Maximum number of shares ¹ | 788,768 | 1,025,056 | 1,216,229 | 1,091,947 | |
Number of shares outstanding as of Dec 31, 2025 ¹ | - | 570,884 | 861,080 | 856,810 | |
Share price at initial grant date, EUR | 56.80 | 52.48 | 44.73 | 48.41 | |
Performance outcome for vested plans, % | 78.0% | - | - | - | |
Number of transferred shares for vested plans | 253,248 | 11,200 | 7,977 | - |
¹ Gross before deduction for applicable taxes
Consolidated financial statements | Notes to the consolidated financial statements | Other notes
140 KONE Annual Review 2025
emission reduction, diversity, safety performance and
cybersecurity.
Restricted share plan structure
The restricted share plan structure (RSP) serves as a
complementary incentive structure used as a commitment
instrument for retention and recruitment purposes for top
management (excluding the President and CEO) and other
selected key employees. The restricted share plan
structure does not have a performance condition. Each
annually commencing plan has a commitment period up to
three years, after which the potentially granted share
awards will be paid to the participant, provided that their
employment or service relationship with KONE Group is in
force at the time of payment.
6.3 Related party transactions
KONE’s related parties comprise its subsidiaries,
associated companies, as well as the Board of Directors,
the President & CEO, and the Executive Board including
any companies controlled or significantly influenced by
them. The Corporate Controlling function evaluates and
monitors transactions between the Group and its related
parties to ensure that any conflicts of interest are taken
into account appropriately in KONE’s decision making
process.
Except for management remuneration there have not
been any material transactions between KONE and its
members of the Board of Directors, the President & CEO
and the Executive Board including any companies
controlled or significantly influenced by them. Information
concerning management remuneration is disclosed in
note 6.1 and shares held by the members of the Board of
Directors, the President & CEO, the Executive Board is
disclosed in the Corporate Governance Statement.
KONE’s subsidiaries are disclosed in the Subsidiaries
section of the Annual Review.
6.4 Events after the reporting period
There were no significant events after the reporting
period.
Restricted share plans as of December 31, 2025
Plan | RSP 2022 | RSP 2023 | RSP 2024 | RSP 2025 |
| Jan 2022 - | Jan 2023 - | Jan 2024 - | Jan 2025 - | |
| Plan Period | Dec 2024 | Dec 2025 | Dec 2026 | Dec 2027 |
| Maximum number of shares ¹ | 55,650 | 163,429 | 80,000 | 81,250 |
| Number of shares outstanding as of Dec 31, 2025 ¹ | - | 80,091 | 67,442 | 55,950 |
Weighted average share price for outstanding shares, EUR | - | 40.37 | 45.79 | 50.45 |
| Number of transferred shares as of Dec 31, 2025 | 33,426 | 18,286 | 2,266 | - |
¹ Gross before deduction for applicable taxes
Consolidated financial statements | Parent company financial statements | Parent company statement of income
141 KONE Annual Review 2025
Parent company statement of income
EUR Note
Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Sales 1
928,887,970.16
794,523,245.93
Other operating income 2
231,282,601.23
33,694,001.11
Materials and services -10,596,625.97
-5,135,986.94
Personnel expenses 3
-165,756,929.89
-152,081,083.45
Depreciation and amortization 4
-16,879,917.07
-15,605,945.04
Other operating expenses 5
-413,941,758.11
-426,162,175.92
Operating income 552,995,340.35
229,232,055.69
Financing income and expenses
6
855,812,138.84
919,570,764.94
Income before appropriations and taxes 1,408,807,479.19
1,148,802,820.63
Appropriations 7
78,478,603.55
1,112,864.03
Income taxes -110,707,548.98
-31,404,547.07
Deferred taxes -181,038.60
-6,728,537.55
Net income 1,376,397,495.16
1,111,782,600.04
Consolidated financial statements | Parent company financial statements | Parent company statement of financial position
142 KONE Annual Review 2025
Parent company statement of financial position
Assets,
EUR Note
Dec 31, 2025
Dec 31, 2024
Non-current assets
Intangible assets 8
44,748,906.84
56,602,979.68
Tangible assets 9
56,138,872.99
42,771,760.94
Investments
Subsidiary shares 10
3,977,300,740.19
3,897,726,022.62
Other shares 11
2,001,098.85
2,001,098.85
3,979,301,839.04
3,899,727,121.47
Total non-current assets 4,080,189,618.87
3,999,101,862.09
Current assets
Non-current receivables 12
Loans receivable 285,688,092.06
322,413,317.64
285,688,092.06
322,413,317.64
Current receivables 13
Accounts receivable 186,781,557.00
93,731,442.23
Loans receivable 168,440,385.25
284,819,544.13
Deferred tax assets 857,768.05
1,038,806.65
Other receivables 5,888,253.39
8,236,355.19
Deferred assets 326,518,871.41
286,870,688.56
688,486,835.10
674,696,836.76
Financial investments 1,053,300,027.73
999,417,433.67
Cash and cash equivalents 141,997,452.75
146,313,867.04
Total current assets 2,169,472,407.64
2,142,841,455.11
Total assets 6,249,662,026.51
6,141,943,317.20
Equity and liabilities,
EUR Note Dec 31, 2025
Dec 31, 2024
Equity
Share capital 66,174,482.53
66,174,482.53
Share premium account 100,328,064.58
100,328,064.58
Other reserves
Paid-up unrestricted equity reserve 220,089,095.16
220,089,095.16
Retained earnings 2,073,511,220.38
1,893,221,113.77
Net income 1,376,397,495.16
1,111,782,600.04
Total equity 14
3,836,500,357.81
3,391,595,356.08
Cumulative accelerated depreciation 7,576,595.08
7,055,198.63
Appropriations 7,576,595.08
7,055,198.63
Provisions 1,368,358.98
1,119,317.40
Liabilities
Non-current liabilities
15
Loans 249,130,075.08
462,529,183.24
249,130,075.08
462,529,183.24
Current liabilities
16
Accounts payable 76,544,284.52
127,505,984.61
Loans 1,900,910,107.52
1,996,085,646.76
Other liabilities 3,885,048.18
3,343,225.47
Accruals 173,747,199.34
152,709,405.01
2,155,086,639.56
2,279,644,261.85
Total liabilities 2,404,216,714.64
2,742,173,445.09
Total equity and liabilities 6,249,662,026.51
6,141,943,317.20
Consolidated financial statements | Parent company financial statements | Parent company cash flow statement
143 KONE Annual Review 2025
Parent company cash flow statement
EUR Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Cash receipts from customers 821,976,894.44
689,928,274.56
Cash receipts from other operative income 35,652,889.49
33,694,001.11
Cash paid to suppliers and employees -635,321,104.54
-547,475,408.53
Financing items 729,814,113.26
939,048,863.65
Taxes paid -49,891,834.90
-41,617,561.96
Other financing items 46,461,070.32
-36,819,846.54
Cash flow from operating activities 948,692,028.07
1,036,758,322.29
Capital expenditure -18,668,722.89
-40,640,041.79
Proceeds from sales of fixed assets 44,000.00
-
Subsidiary investments -660,000.00
-147,858,717.92
Proceeds from sales and decreases of subsidiary shares
207,413,994.17
-
Cash flow from investing activities 188,129,271.28
-188,498,759.71
Net change in short-term debt -95,149,278.19
-201,920,690.65
Net change in long-term debt -213,399,108.16
218,412,531.25
Profit distribution -931,906,790.22
-905,465,283.47
Other financing items 99,317,462.93
73,844,178.52
Cash flow from financing activities -1,141,137,713.64
-815,129,264.35
Change in cash and cash equivalents -4,316,414.29
33,130,298.23
Cash and cash equivalents, Jan 1 146,313,867.04
113,183,568.81
Cash and cash equivalents, Dec 31 141,997,452.75
146,313,867.04
Change in cash and cash equivalents -4,316,414.29
33,130,298.23
Reconciliation of net income to the cash flow from
operating activities, EUR Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Net income 1,376,397,495.16
1,111,782,600.04
Depreciation and amortization 16,879,917.07
15,605,945.04
Other adjustments -364,160,342.68
-709,817.03
Income before change in working capital 1,029,117,069.55
1,126,678,728.05
Change in receivables -51,169,817.02
-132,349,668.75
Change in liabilities -29,255,224.46
42,429,262.99
Cash flow from operating activities 948,692,028.07
1,036,758,322.29
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
144 KONE Annual Review 2025
Accounting principles
The parent company financial statements have been
prepared according to the Finnish Accounting Standards.
Financial statements have been prepared for the period of
12 months between January 1 and December 31, 2025.
Foreign currency transactions and
translation
Transactions in foreign currencies are recorded at the
rate of exchange prevailing on the date of the individual
transaction. Foreign currency denominated receivables
and liabilities are translated using the period end
exchange rates.
Foreign exchange gains and losses associated with
loans, deposits and other statement of financial position
items are included under financing income and expenses.
Loan receivables and financial investments
Loan receivables are initially recognized at nominal values
and subsequently measured at amortized cost.
Management estimates that the fair values of the loan
receivables do not materially differ from the carrying
values at the statement of financial position dates.
Financial investments in commercial papers, short-
term bank deposits, interest rate funds and other money
market instruments are initially recognized at fair value
and thereafter at amortized cost using the effective
interest rate method except for interest rate funds which
are classified and measured as investments at fair value
through profit or loss.
Derivative instruments
Derivative financial instruments are used to hedge
currency and the interest rate risks. Derivatives are
measured at fair value in accordance with Accounting Act
5:2a §. The fair values of foreign exchange forward
contracts are estimated by discounting the future cash
flows of the contracts with the relevant market interest
rate yield curves on the valuation date and by calculating
the difference between the discounted values as at the
forward contract date and balance sheet date in euros.
Currency options are valued as of each reporting date by
using the Garman & Kohlhagen option valuation model.
The fair values of derivative financial instruments are
presented in note 18.
Changes in the fair values of foreign exchange
derivatives are recognized in financing income and
expenses if the hedged item is a loan receivable, deposit
or a financial asset or liability denominated in a foreign
currency.
Revenue recognition
Royalty revenue from the licensing of intellectual property
rights is recognized over the contract period. The sales of
services are recognized when the services have been
rendered or when the work has been completed.
Research and development cost
Research and development costs are typically expensed
as they incur, because the future economic benefits of
new products and development of existing products and
services can only be proven after their successful
introduction to the market.
Pensions
An external pension insurance company manages the
parent company statutory pension plan. Contributions to
the pension plan are charged directly to the statement of
income in the year to which these contributions relate.
Leases
Leasing payments are charged to the statement of
income on a straight-line basis over the leasing term.
Remaining future leasing liabilities from existing contracts
are presented in note 17.
Taxes
Tax expense includes taxes based on taxable income for
the period, together with tax adjustments for previous
periods and changes in deferred taxes. Deferred taxes
are provided for temporary differences arising between
the tax basis of assets and liabilities and their book values
in financial reporting and measured with enacted tax
rates.
Deferred tax liabilities arising from temporary
differences are fully recognized with prudency, whereas
the deferred tax assets are recognized only to the extent
of the probable future tax benefit.
Notes to the parent company financial statements
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
145 KONE Annual Review 2025
Non-current assets
Intangible assets and property, plant and equipment are
stated at the cost less accumulated depreciation and
amortization. Depreciation and amortization are recorded
on a straight-line basis over the economic useful lives of
the assets as follows:
Buildings 5–40 years
Machinery and equipment 4–15 years
Other long-term expenditure 4–10 years
Land Infinite
Investments in subsidiaries and other companies are
measured at cost, or fair value in case the fair value is less
than cost.
Provisions
Future outflows of cash, which the parent company has
committed to that are not expected to contribute future
revenues and unavoidable losses, which are probable, are
recognized in provisions. Parent company provisions
consist of warranty and restructuring provisions.
Financial risk management
Parent company business activities are exposed to
financial risks such as foreign exchange risks, interest
rate risks, liquidity risks and credit risks. These financial
risks are managed in accordance with the KONE Treasury
Policy. Parent company financials risks are not
significantly different from the Group’s financials risks,
see notes 2.4 and 5.3 to the consolidated financial
statements.
Cash and cash equivalents
Cash and cash equivalents include cash-in-hand and
bank account balances. Used bank overdrafts are
included in other current liabilities.
Share-based payments
Share-based incentive plans of KONE consist of a
performance based long-term incentive plan structure
(LTI) and a restricted share plan structure (RSP). The
performance based long-term incentive plan structure is
targeted to the President and CEO, members of the
Executive Board and selected key employees of KONE
Group. The restricted share plan structure serves as a
complementary incentive plan used as a commitment
instrument for retention and recruitment purposes for top
management (excluding the President and CEO) and other
selected key employees. Pursuant to the plan rules, the
potential rewards are settled as a combination of KONE
class B shares and/or cash when the criteria set in the
terms and conditions for the plan are met. The number of
shares earned by participants under the share-based
incentive plans are determined on gross basis with
deduction for taxes made when applicable before delivery
of the shares to the participants. The shares to be
transferred as part of the plans are obtained in public
trading. The acquisition of shares is recognized as an
increase of treasury shares, reducing equity, and transfer
of shares as decrease in treasury shares and retained
earnings within equity.
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
146 KONE Annual Review 2025
Notes to the statement of
income
1. Sales
2. Other operating income
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Subsidies received 4,038.2
3,800.5
Recharged energy 1,141.4
1,050.7
Service charges 606.9
716.2
Sales of subsidiary shares 195,629.7
-
Others 29,866.4
28,126.6
Total 231,282.6
33,694.0
3. Personnel expenses
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Wages and salaries 138,661.3
128,583.6
Pension costs 23,911.5
21,333.0
Other employment expenses 3,184.1
2,164.5
Total 165,756.9
152,081.1
Sales EUR 928,888.0 (794,523.2) thousand primarily consists of royalty income from the licensing of intellectual property rights to the subsidiaries of KONE Oyj.
The salaries and fees paid to the President & CEO and to the Board of Directors are presented in the note 6 of the consolidated financial statements. Average
number of staff employed by the parent company was 1,336 during the financial year (1,254).
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
147 KONE Annual Review 2025
4. Depreciation and amortization
5. Auditors’ fees
6. Financing income and expenses
7. Appropriations
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Audit 1,128.7
1,047.1
Sustainability assurance 302.0
280.0
Auditors´ statements -
3.9
Tax services 20.6
25.1
Other services 243.1
1,068.9
Total 1,694.4
2,425.0
The breakdown of auditors' fees has been restated for the comparison period by adding information on the share of sustainability reporting assurance.
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Dividend income from subsidiaries 846,561.3
975,711.8
Other dividends received 149.1
0.4
Interest income from subsidiaries 18,207.4
33,412.5
Interest income from others 25,176.3
31,374.6
Interest expenses to subsidiaries -63,593.3
-96,869.0
Interest expenses to others -6,337.9
-5,530.4
Other financing income and expenses 35,649.3
-18,529.1
Total 855,812.1
919,570.8
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Intangible rights 351.6
397.4
Other long-term expenditure 6,448.3
7,044.1
Buildings 1,550.4
1,510.2
Machinery and equipment 8,529.6
6,654.2
Total 16,879.9
15,605.9
EUR 1,000 Jan 1–Dec 31, 2025
Jan 1–Dec 31, 2024
Cumulative accelerated depreciation charge -521.4
1,112.9
Group contributions received
79,000.0
-
Total 78,478.6
1,112.9
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
148 KONE Annual Review 2025
8. Intangible assets
Jan 1–Dec 31, 2025,
EUR 1, 000 Intangible rights
Other long-
term
expenditure
Advance payments
Total
Opening gross acquisition cost 6,391.7
134,760.4
39,136.4
180,288.5
Opening accumulated depreciation and impairment -5,433.3
-118,040.1
-212.1
-123,685.5
Opening net book value 958.4
16,720.4
38,924.2
56,603.0
Opening net book value 958.4
16,720.4
38,924.2
56,603.0
Increase 363.3
4,591.3
-
4,954.6
Decrease -
-
-231.4
-231.4
Reclassifications -
-3,380.1
-6,397.3
-9,777.4
Amortization -351.6
-6,448.3
-
-6,799.9
Closing net book value 970.1
11,483.2
32,295.6
44,748.9
Closing gross acquisition cost 6,755.0
135,971.6
32,507.7
175,234.3
Closing accumulated amortization and impairment -5,784.9
-124,488.4
-212.1
-130,485.4
Closing net book value 970.1
11,483.2
32,295.6
44,748.9
Jan 1–Dec 31, 2024,
EUR 1, 000 Intangible rights
Other long-
term
expenditure
Advance payments
Total
Opening gross acquisition cost 6,017.8
129,017.6
14,579.1
149,614.4
Opening accumulated depreciation and impairment -5,035.9
-110,995.9
-212.1
-116,243.9
Opening net book value 981.9
18,021.7
14,366.9
33,370.5
Opening net book value 981.9
18,021.7
14,366.9
33,370.5
Increase 373.9
5,742.8
24,557.3
30,674.0
Decrease -
-
-
-
Reclassifications -
-
-
-
Amortization -397.4
-7,044.1
-
-7,441.6
Closing net book value 958.4
16,720.4
38,924.2
56,603.0
Closing gross acquisition cost 6,391.7
134,760.4
39,136.4
180,288.5
Closing accumulated amortization and impairment -5,433.3
-118,040.1
-212.1
-123,685.5
Closing net book value 958.4
16,720.4
38,924.2
56,603.0
Notes to the statement of financial position
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
149 KONE Annual Review 2025
9. Tangible assets
Jan 1–Dec 31, 2024,
EUR 1, 000 Land
Buildings
Machinery &
equipment
Fixed assets
under
construction
Total
Opening gross acquisition cost 182.3
32,664.3
64,687.4
7,731.7
105,265.7
Opening accumulated amortization and impairment -
-15,090.3
-48,545.3
-656.4
-64,292.0
Opening net book value 182.3
17,574.0
16,142.0
7,075.3
40,973.6
Opening net book value 182.3
17,574.0
16,142.0
7,075.3
40,973.6
Increase -
814.7
3,666.9
6,305.5
10,787.0
Decrease -
-
-2.4
-821.0
-823.4
Reclassifications -
36.7
3,613.0
-3,649.7
-
Depreciation -
-1,510.2
-6,654.2
-
-8,164.4
Closing net book value 182.3
16,915.2
16,765.3
8,910.1
42,771.8
Closing gross acquisition cost 182.3
33,515.7
71,381.3
9,566.4
114,645.7
Closing accumulated amortization and impairment -
-16,600.5
-54,616.1
-656.4
-71,872.9
Closing net book value 182.3
16,915.2
16,765.3
8,910.1
42,771.8
Jan 1–Dec 31, 2025,
EUR 1, 000 Land
Buildings
Machinery &
equipment
Fixed assets
under
construction
Total
Opening gross acquisition cost 182.3
33,515.7
71,381.3
9,566.4
114,645.7
Opening accumulated amortization and impairment -
-16,600.5
-54,616.1
-656.4
-71,872.9
Opening net book value 182.3
16,915.2
16,765.3
8,910.1
42,771.8
Opening net book value 182.3
16,915.2
16,765.3
8,910.1
42,771.8
Increase -
193.2
9,200.9
4,320.0
13,714.1
Decrease -
-
-44.4
-
-44.4
Reclassifications -
462.5
16,685.1
-7,370.1
9,777.4
Depreciation -
-1,550.4
-8,529.6
-
-10,080.0
Closing net book value 182.3
16,020.4
34,077.2
5,859.9
56,138.9
Closing gross acquisition cost 182.3
34,171.4
97,222.9
6,516.3
138,092.9
Closing accumulated amortization and impairment -
-18,150.9
-63,145.7
-656.4
-81,952.9
Closing net book value 182.3
16,020.4
34,077.2
5,859.9
56,138.9
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
150 KONE Annual Review 2025
10. Subsidiary shares
11. Other shares
12. Non-current receivables
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Acquisition cost, Jan 1 3,897,726.0
3,749,867.3
Increase 92,559.0
147,858.7
Decrease -12,984.3
-
Net book value, Dec 31 3,977,300.7
3,897,726.0
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Acquisition cost, Jan 1 2,001.1
2,001.8
Decrease -
-0.7
Net book value, Dec 31 2,001.1
2,001.1
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Loans receivable from subsidiaries 283,621.7
320,247.9
Loans receivable from externals 2,066.4
2,165.5
Non-current receivables 285,688.1
322,413.3
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
151 KONE Annual Review 2025
13. Current receivables
Receivables from subsidiaries,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Accounts receivables 186,268.6
93,300.4
Loans receivable 168,440.4
284,819.5
Deferred assets 268,985.1
177,687.2
Total 623,694.1
555,807.2
Receivables from externals,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Accounts receivables 513.0
431.0
Others 5,888.3
8,236.4
Deferred assets 57,533.7
109,183.5
Total 63,935.0
117,850.9
Deferred tax assets 857.8
1,038.8
Total short-term receivables 688,486.8
674,696.8
Deferred assets,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Derivative assets 29,541.9
63,714.8
Deferred income taxes 1,318.4
25,804.7
Unbilled revenue 173,603.5
155,002.6
Group contributions 79,000.0
-
Others 43,055.1
42,348.6
Total 326,518.9
286,870.7
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
152 KONE Annual Review 2025
14. Equity and changes in equity
EUR 1,000
Share
capital
Share
premium
account
Paid-
up
unrestricted
equity
reserve
Retained
earnings
Net income
for
the period
Total
Book value Jan 1, 2025 66,174.5
100,328.1
220,089.1
3,005,003.7
3,391,595.4
Profit distribution -931,906.8
-931,906.8
Purchase of own shares -
Share-based compensation 414.3
414.3
Net income for the period 1,376,397.5
1,376,397.5
Net book value Dec 31, 2025 66,174.5
100,328.1
220,089.1
2,073,511.2
1,376,397.5
3,836,500.4
Non-restricted equity includes the paid-up unrestricted equity reserve, retained earnings deducted by own shares and the profit for the financial year. The non-
restricted equity was EUR 3,669,997,810.70 (3,225,092,808.97) at the end of the period. Distributable profit deducted by capitalized development costs was EUR
3,655,182,389.87 (3,215,181,251.13).
EUR 1,000
Share
capital
Share
premium
account
Paid-
up
unrestricted
equity
reserve
Retained
earnings ¹
Net income
for
the period
Total
Book value Jan 1, 2024 66,174.5
100,328.1
220,089.1
2,798,288.5
3,184,880.2
Profit distribution -905,465.3
-905,465.3
Purchase of own shares
Share-based compensation 397.9
397.9
Net income for the period 1,111,782.6
1,111,782.6
Net book value Dec 31, 2024 66,174.5
100,328.1
220,089.1
1,893,221.1
1,111,782.6
3,391,595.4
1
As at 1 January, 2024, the effect arising from recognition of share-based payment rewards has been reclassified from paid-up unrestricted equity to retained
earnings to improve presentation.
From 2024 onwards, share-based compensation paid to board is shown in retained earnings.
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
153 KONE Annual Review 2025
15. Non-current liabilities
Liabilities to subsidiaries,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Liabilities falling due in 1–5 years 49,130.1
62,529.2
Total 49,130.1
62,529.2
Liabilities to externals,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Liabilities falling due in 1–5 years 200,000.0
Liabilities falling due in over 5 years 200,000.0
200,000.0
Total 200,000.0
400,000.0
Total non-current liabilities 249,130.1
462,529.2
The breakdown of Liabilities to externals within non-current liabilities has been restated for the comparison period. In the comparison period, an amount of
EUR 400,000,000 previously presented as liabilities falling due in 1–5 years has been reclassified in the 2025 financial statements into liabilities falling due in
over 5 years amounting to EUR 200,000,000 and liabilities falling due in 1–5 years amounting to EUR 200,000,000.
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
154 KONE Annual Review 2025
16. Current liabilities
Liabilities to subsidiaries,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Accounts payable 28,290.3
51,441.0
Loans 1,699,821.6
1,996,085.6
Accruals 51,426.5
50,347.3
Total 1,779,538.4
2,097,873.9
Liabilities to externals,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Accounts payable 48,254.0
76,065.0
Loans 201,088.5
-
Other liabilities 3,885.0
3,343.2
Accruals 122,320.7
102,362.1
Total 375,548.3
181,770.4
Total current liabilities 2,155,086.6
2,279,644.3
Accruals,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Accrued wages, salaries and employment costs 46,562.5
37,289.1
Derivative liabilities 26,312.7
49,673.9
Others 100,871.9
65,746.5
Total 173,747.2
152,709.4
Consolidated financial statements | Parent company financial statements | Notes to the parent company financial statements
155 KONE Annual Review 2025
17. Commitments
18. Derivatives
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Guarantees
For subsidiaries 3,892,414.4
3,946,166.8
Leasing commitments
Due next year 9,087.0
8,189.8
Due over a year 10,953.4
13,724.8
Other commitments 1,270.7
818.4
Total 3,913,725.4
3,968,899.9
Fair values of derivative instruments,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Foreign exchange forward contracts with external
parties 676.7
6,112.0
Foreign exchange forward contracts with subsidiaries 2,551.3
7,929.0
Total 3,228.0
14,041.0
Nominal values of derivative instruments,
EUR 1,000 Dec 31, 2025
Dec 31, 2024
Foreign exchange forward contracts with external
parties 2,522,291.5
3,124,729.9
Foreign exchange forward contracts with subsidiaries 1,158,864.5
1,067,642.2
Total 3,681,156.0
4,192,372.1
Derivative contracts are entered for hedging purposes in line with KONE Treasury policy and are recognized at fair value. Derivatives are classified as financial
assets at fair value through profit or loss. The majority of the foreign exchange derivatives mature within a year. The fair values of the foreign exchange derivatives
are measured based on the price information derived from the active markets and commonly used valuation methods.
More information about financial risks management is described in the notes 2.4 and 5.3 to the consolidated financial statements.
Consolidated financial statements | Parent company financial statements | Subsidiaries
156 KONE Annual Review 2025
Subsidiaries
The following list includes companies where the parent company KONE Oyj has control as of December 31, 2025. Additional information is included in note 1 of the consolidated
financial statements.
Shareholding %
Country/Region Company Group
Parent
company
Andorra Kone Ascensors i Escales, S.A. 100
-
Australia KDB Australia Pty Ltd 100
-
KONE Elevators Employee Benefits Pty Limited 100
-
KONE Elevators Pty Ltd 100
-
KONE Holdings (Australia) Limited 100
-
Orbitz Elevators Services Pty Ltd 100
-
Austria KONE AG 100
100
Bahrain KONE Bahrain W.L.L. 0
-
KONE Elevators W.L.L. 49
-
Belgium KDB Belgium SRL 100
100
KONE Belgium S.A. 100
100
Liften Min 100
-
Bosnia and
Herzegovina
KONE d.o.o. Sarajevo 100
-
Bulgaria KONE EOOD 100
100
Canada Cantech Elevators Inc. 100
-
KONE Inc. 100
49
China mainland
Giant Kone Elevator Co., Ltd. 100
-
KONE Elevator (Shanghai) Co., Ltd. 100
-
KONE Elevators Co., Ltd. 100
-
KONE Smart Supply Chain (Shenzhen) Co., Ltd 100
-
Kunshan KONE Industrial Machinery Co., Ltd. 100
100
Croatia KONE d.o.o. 100
100
Cyprus KONE Elevators Cyprus Limited 100
100
Czech Republic
KONE Industrial - koncern s.r.o. 100
100
KONE, a.s. 100
100
Denmark KDB Denmark ApS 100
-
KONE A/S 100
100
Egypt KONE LLC 100
-
Estonia AS KONE 100
100
Finland Finescal Oy 100
100
KDB Finland Oy 100
100
KONE Digital Services Oy 100
100
KONE Hissit Oy 100
100
Shareholding %
Country/Region Company Group
Parent
company
KONE Industrial Oy 100
100
France 2STP S.A.S. 100
-
ALÉO Ascenseurs 100
-
Ascenseurs Portes Automatiques Arnaud S.A.S. 100
-
Ascenseurs Soulier S.N.C. 100
-
ATPE S.A.S. 100
100
ATS S.A.S. 100
-
Automatismes du Mont Blanc S.A.S. 100
-
Delta Ascenseurs S.A.S. 100
-
KDB France S.A.S. 100
100
KONE ATS S.A.S 100
-
KONE Développement S.N.C. 100
-
KONE Holding France S.A.S. 100
100
KONE S.A. 99.99
-
LIFTMAN S.A.S. 100
-
MARS Maintenance Ascenseurs Region Sud 100
-
MP2 Gestion Participation 100
-
PACA Ascenseurs Services 100
-
Prokodis S.A.S. 100
-
R.M.D. S.A.S. 100
-
RS Ascenseurs 100
-
Technique & Mecanique Des Elevateurs S.A.S. 100
-
Germany Alois Kasper GmbH 100
-
ATB Aufzugtechnik Berlin GmbH 100
-
ATH Aufzüge GmbH 100
-
Aufzugstechnik Rhein Ruhr GmbH 100
-
DANY Aufzüge GmbH 100
-
KDB Automatiktüren GmbH 100
-
KONE Escalator Supply Service Center Europe
GmbH
100
100
KONE Garant Aufzug GmbH 100
-
KONE GmbH 100
100
KONE Servicezentrale GmbH 100
-
Matthias Schernikau GmbH 100
-
Consolidated financial statements | Parent company financial statements | Subsidiaries
157 KONE Annual Review 2025
Shareholding %
Country/Region Company Group
Parent
company
Trierer Aufzugbau Baasch & Didong GmbH 100
-
Weymann Aufzüge GmbH & Co. KG 100
-
Weymann Aufzüge Verwaltungs GmbH 100
-
Greece KONE S.A. 100
-
Hong Kong SAR
KONE Elevator (HK) Limited 100
0
Shan On Engineering Company Limited 100
-
Hungary KONE Felvonó Kft. 100
100
Iceland KONE ehf 100
100
India KONE Elevator India Private Limited 100
99.99
Indonesia PT KONE Indo Elevator 100
1.04
PT KONE Indo Mitra 0
-
Ireland Ennis Lifts Limited 100
-
KONE (Ireland) Limited 100
-
Israel KONE LTD 100
100
Italy ACMA S.r.l. 60
-
Ascensori & Ascensori S.r.l. 64
-
ATA Ascensori S.r.l. 100
-
Cerqueti Servizi S.r.l. 100
-
CGM Elevators S.r.l. 100
-
Cofam S.r.l. 100
-
CRON.UP S.r.l. 80
-
D.R. System S.r.l. 80
-
De Mattia ascensori S.r.l. 100
-
Elevant Servizi S.r.l. 70
-
Elevatori Bari S.r.l. 89
-
Elevators S.r.l. 60
-
Eurolift Ascensori S.r.l. 70
-
Euroservice Merano S.r.l. 90
-
Ferrara Ascensori S.r.l. 66
-
Gianfranceschi Ascensori S.r.l. 97
-
GSB Ascensori S.r.l. 80
-
KDB Italy S.r.l. 100
-
KONE Industrial S.p.A. 100
100
KONE S.p.A. 100
26.86
L.A.M. Lombarda Ascensori Montacarichi S.r.l. 70
-
MA.RI.VA. Due S.r.l. 100
-
MARIBO-SIMA ascensori S.r.l. 70
-
Nettuno S.r.l. 75
-
Neulift S.p.A. 100
-
Shareholding %
Country/Region Company Group
Parent
company
Neulift Service Molise S.r.l. 51
-
Neulift Service Triveneto S.r.l. 100
-
Rimma S.r.l. 60
-
Slimpa S.p.A. 100
-
Tecnocram S.r.l. 91.5
-
Tosca Ascensori S.r.l. 66.67
-
Unilift S.r.l. 89.97
-
Kazakhstan KONE Kazakhstan LLP 100
-
Kenya KONE Kenya Limited 49
-
Kuwait
Al-Sabriyah Elevators and Escalators Company,
W.L.L.
49
-
Latvia SIA KONE Lifti Latvija 100
0.5
Lithuania UAB KONE 100
100
Luxembourg KONE Luxembourg Sàrl 100
-
Macau SAR KONE Elevator (Macau) Limited 100
-
Macedonia KONE Makedonija Dooel Skopje 100
-
Malaysia KONE Elevator (M) Sdn. Bhd. 29.88
29.88
Mexico KONE Industrial, S.A. de C.V. 100
-
KONE Mexico, S.A. De C.V. 100
0.1
Monaco S.A.M. KONE 99.87
-
Montenegro KONE d.o.o. Podgorica 100
-
Morocco KONE Elevators and Escalators Sàrl AU 100
100
Netherlands Hissi B.V. 100
-
KDB Holding B.V. 100
-
KDB Netherlands B.V. 100
-
KONE B.V. 100
-
KONE Deursystemen B.V. 100
-
Kone Finance Holding B.V. 100
-
KONE Holland B.V. 100
100
KONE Nederland Holding B.V. 100
-
New Zealand KONE Elevators (NZ) Limited 100
-
Norway KDB Door AS 100
-
KDB Norway AS 100
-
KONE Aksjeselskap 100
100
Oman KONE Assarain LLC 70
-
Philippines Elevators Philippines Construction, Inc. 39.8
-
KPI Elevators, Inc. 99.99
-
Poland KONE Sp.z o.o. 100
100
Portugal Kone Portugal - Elevadores, Lda. 100
1
Consolidated financial statements | Parent company financial statements | Subsidiaries
158 KONE Annual Review 2025
Shareholding %
Country/Region Company Group
Parent
company
Qatar KONE Elevators W.L.L. 49
49
Romania KONE Ascensorul S.A. 100
99.99
Saudi Arabia KONE Areeco Limited 50
10
KONE Regional Headquarters LLC 100
-
Serbia KONE d.o.o. Beograd-Novi Beograd 100
-
Singapore KONE Pte Ltd. 100
-
Slovak Republic
KONE Business Services, s.r.o. 100
100
KONE s.r.o. 100
100
Slovenia KONE d.o.o. 100
100
South Africa Addo Private Equity Fund 2 (Pty) Ltd. 100
-
KONE Elevators South Africa (Pty) Ltd 100
-
Spain Ascensores Johima S.L. 65
-
Ascensores Muguerza, S.A.U. 100
-
Ascensores Satel, S.L. 100
-
KDB Door Business Spain SL 100
-
Kone Elevadores, S.A. 100
99.99
Neulift, S.L. 100
-
Serki Instalaciones Y Servicios S.l. 98
-
Técnicas Autocontrol, S.L.U. 100
-
Sweden KDB Sweden AB 100
-
KONE AB 100
-
Switzerland Kone (Schweiz) AG 100
100
Shareholding %
Country/Region Company Group
Parent
company
Taiwan, China
Kang-En Taiwan Elevator Technology Service Co.,
Ltd
100
-
KONE Elevators Taiwan Co. Ltd 100
-
Thailand KONE Public Company Limited 84.08
-
Thai Elevators and Escalators Company Limited 74
-
Thai Elevators Holding Company Limited 49
-
Tunisia KONE Elevators & Escalators Sarl 100
-
KONE Elevators and Escalators Assembly 100
-
Türkiye KONE Asansör Sanayi ve Ticaret A.Ş. 100
-
Uganda KONE Uganda Limited 100
-
Ukraine KONE Lifts LLC 100
-
United Arab
Emirates
KONE (Middle East) LLC 100
49
United Kingdom
KDB Door Business UK Ltd 100
-
KONE (NI) Limited 100
-
KONE Pension Trustees Ltd. 100
-
KONE Plc 100
100
USA ENOK Electrical Company, LLC 100
-
KONE Holdings, Inc. 100
-
KONE Inc. 100
-
Marine Elevators LLC 100
-
Vietnam Kone Vietnam Limited Liability Company 100
-
Dividend proposal, signatures for the Board of Directors’ report and financial statements and auditor’s note
159 KONE Annual Review 2025
Board of Directors’ dividend proposal and signatures
Board of Directors’ dividend proposal
The parent company’s distributable profits on December 31,
2025 is EUR 3,655,182,389.87 of which the net income for the
financial year is EUR 1,376,397,495.16.
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 1.7975 be paid on the
outstanding 76,208,712 class A shares and EUR 1.80 on the
outstanding 441,649,910 class B shares, resulting in a total
amount of proposed dividend of EUR 931,954,997.82. The
Board of Directors further proposes that the remaining
distributable profits, EUR. 2,723,227,392.05 be retained and
carried forward.
The Board proposes that the dividend payment date is
March 16, 2026.
Signatures to the Board of Directors’ report and financial statements
The financial statements, prepared in accordance with
applicable accounting regulations, give a true and fair view of
the assets, liabilities, financial position, and profit or loss of
both the company and the group of companies included in its
consolidated financial statements.
The management report contains a fair review of the
development and performance of the business operations of
both the company and the group of companies included in its
consolidated financial statements, as well as a description of
the most significant risks and uncertainties and other aspects
of the company's condition.
The sustainability report included in the management
report has been prepared in accordance with the reporting
standards referred to in Chapter 7 and Article 8 of the
Taxonomy Regulation.
Helsinki, February 5, 2026
Antti Herlin
Jussi Herlin
Matti Alahuhta
Susan Duinhoven
Marika Fredriksson
Iiris Herlin
Timo Ihamuotila
Banmali Agrawala
Krishna Mikkilineni
Philippe Delorme,
President & CEO
The Auditor’s Note
Our auditor’s report has been issued today.
Helsinki, February 5, 2026
Ernst & Young Oy
Authorized Public Accountants
Heikki Ilkka
Authorized Public Accountant
Auditor’s report
160 KONE Annual Review 2025
Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of KONE Corporation
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of KONE Corporation (business identity code
1927400-1) for the year ended 31 December, 2025. The financial statements comprise
the consolidated balance sheet, income statement, statement of comprehensive
income, statement of changes in equity, statement of cash flows and notes, including
material accounting policy information, as well as the parent company’s balance sheet,
income statement, statement of cash flows and notes.
In our opinion
the consolidated financial statements give a true and fair view of the group’s
financial position, financial performance and cash flows in accordance with
IFRS Accounting Standards as adopted by the EU.
the financial statements give a true and fair view of the parent company’s
financial performance and financial position in accordance with the laws and
regulations governing the preparation of financial statements in Finland and
comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance
with the ethical requirements that are applicable in Finland and are relevant to our audit,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit services that we have
provided to the parent company and group companies are in compliance with laws and
regulations applicable in Finland regarding these services, and we have not provided
any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014.
The non-audit services that we have provided have been disclosed in note 2.2 to the
consolidated financial statements and note 5 to the parent company financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Auditor’s report
161 KONE Annual Review 2025
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial
statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying
financial statements.
We have also addressed the risk of management override of internal controls. This
includes consideration of whether there was evidence of management bias that
represented a risk of material misstatement due to fraud.
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition of new equipment and modernization sales and related accruals
The accounting principles and disclosures about revenue recognition of new equipment
and modernization sales and related accruals are included in consolidated financial
statement notes 1 and 2.1.
In accordance with its accounting principles KONE applies the percentage of completion
(PoC) method for recognizing revenue over time from new equipment and modernization
contracts. The percentage of completion is based on the cost-to-cost method. In year
2025, approximately 57 % percent of the KONE´s sales of 11,2 billion euros were
recognized under the PoC method.
The recognition of revenue by applying PoC method and the estimation of the outcome
of projects require significant management judgement in estimating the cost-to-
complete. We assessed the risk to mainly relate to the stage of completion of projects,
which were incomplete at 31 December 2025.
The Group makes several types of accruals related to risks associated with revenue
recognition by applying PoC method. These accruals require high level of management
judgment.
Based on above, revenue recognition based on PoC method, including related accruals,
was a key audit matter. Revenue recognition based on PoC method was also a significant
risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of
Article 10(2).
Our audit procedures to address the risk of material misstatement in respect of the
revenue recognition from new equipment and modernization projects included, among
others:
Assessment of the Group’s accounting policies over revenue recognition over
time and recognition of project related accruals.
Gaining an understanding of the revenue recognition process including related
accruals.
Inspecting on a sample basis the project documentation such as contracts and
other written communication.
Testing on a sample basis the percentage of completion and accrual calculations
and the inputs of estimates in the calculations, as well as comparing the
estimates to actuals.
Analytical procedures.
Evaluation of financial development and current status by
o analyzing the changes in assumptions relating to estimated revenues,
costs, and related accruals and receipts of project payments, and
o discussions with different levels of the organization including project
level and financial organization.
Performing inquiries with management with regards to any significant events or
legal matters that could affect the project estimates and provisions.
Assessing the Group’s disclosures in respect of revenue recognition and related
accruals
Valuation of accounts receivable
Auditor’s report
162 KONE Annual Review 2025
The accounting principles and disclosures relating to accounts receivable are included in
notes 1 and 3.2.
Valuation of accounts receivable was a key audit matter due to the significance of the
account balance and because valuation requires management to make significant
judgments especially due to uncertainties related to Chinese real estate market.
Valuation of accounts receivable requires management to evaluate the probability of the
recoverability of receivables and to record an impairment loss for doubtful accounts over
the portion for which payment is unlikely.
As of balance sheet date 31 December 2025, the carrying value of accounts receivable
amounted to 2350,7 million euros.
The carrying value of account receivable shown in the balance sheet as of 31 December
2025 is a result of gross receivables deducted by reserve of expected credit losses
which is based on management’s judgment and amounting to 444,3 million euros as of 31
December 2025.
We performed, among others, the following audit procedures:
We evaluated the valuation methods applied on valuation of accounts receivable
as well as performed quarterly analyses of overdue and undue gross receivable
balance development and corresponding movement in expected credit loss
reserve during the year.
We sent receivable balance confirmation requests to counterparties and
compared trade receivable balances to subsequent cash receipts.
We analysed management’s estimates of expected credit losses of the most
significant aged and overdue receivables considering historical payment
patterns as well as recent communications with the counterparties and dunning
procedures.
We considered the appropriateness of the Group’s disclosures in respect of
trade receivables.
Auditor’s report
163 KONE Annual Review 2025
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a
true and fair view in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements.
The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director
are responsible for assessing the parent company’s and the group’s ability to continue
as going concern, disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements are prepared using the
going concern basis of accounting unless there is an intention to liquidate the parent
company or the group or cease operations, or there is no realistic alternative but to do
so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with good
auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of the Board of Directors’ and the Managing
Director’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or the group to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events so that the financial
statements give a true and fair view.
Plan and perform the group audit to obtain sufficient appropriate audit
evidence regarding the financial information of the entities or business units
within the group as a basis for forming an opinion on the group financial
statements. We are responsible for the direction, supervision and review of the
audit work performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and communicate
with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements of
the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such
communication.
Auditor’s report
164 KONE Annual Review 2025
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting with effect from 2
March 2021, and our appointment represents a total period of uninterrupted
engagement of 5 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other
information. The other information comprises the report of the Board of Directors and
the information included in the Annual Report, but does not include the financial
statements and our auditor’s report thereon. We have obtained the report of the Board
of Directors prior to the date of this auditor’s report, and the Annual Report is expected
to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. With respect to
report of the Board of Directors, our responsibility also includes considering whether
the report of the Board of Directors has been prepared in compliance with the
applicable provisions, excluding the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting
standards.
In our opinion, the information in the report of the Board of Directors is consistent with
the information in the financial statements and the report of the Board of Directors has
been prepared in compliance with the applicable provisions. Our opinion does not cover
the sustainability report information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we obtained
prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Other statements based on law
Our responsibility is to, based on our audit, express an opinion on the registration and
publication of the income tax report required in Chapter 7 b of the Accounting Act.
The Board of Directors and the Managing Director are responsible for the registration
and the publication of the income tax report.
In our opinion, the company has not been obliged to register and publish an income tax
report referred to in Chapter 7 b of the Accounting Act for the financial year
immediately preceding the financial year.
Helsinki, 5.2.2026
Ernst & Young Oy
Authorized Public Accountant Firm
Heikki Ilkka
Authorized Public Accountant
Auditor’s ESEF assurance report
165 KONE Annual Review 2025
Independent Auditor’s Report on the ESEF Consolidated Financial Statements of KONE Oyj
(Translation of the Finnish original)
To the Board of Directors of KONE Corporation
We have performed a reasonable assurance engagement on the financial statements
2138001CNF45JP5XZK38-2025-12-31-fi.zip of KONE Corporation
(y-identifier: 1927400-1) that have been prepared in accordance with the Commission’s
regulatory technical standard for the financial year ended 31.12.2025.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of
the company’s report of Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the requirements of the Commission’s
regulatory technical standard. This responsibility includes:
preparing the ESEF financial statements in XHTML format in accordance with
Article 3 of the Commission’s regulatory technical standard
tagging the primary financial statements, notes and company’s identification
data in the consolidated financial statements that are included in the ESEF
financial statements with iXBRL tags in accordance with Article 4 of the
Commission’s regulatory technical standard and
ensuring the consistency between the ESEF financial statements and the
audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of ESEF financial
statements in accordance the requirements of the Commission’s regulatory technical
standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements that
are applicable in Finland and are relevant to the engagement we have performed, and
we have fulfilled our other ethical responsibilities in accordance with these
requirements.
The firm applies International Standard on Quality Management (ISQM) 1, which
requires the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities
Markets Act, provide assurance on the financial statements that have been prepared in
accordance with the Commission’s technical regulatory standard. We express an
opinion on whether the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been
provided. We conducted a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
whether the primary financial statements in the consolidated financial
statements that are included in the ESEF financial statements have been
Auditor’s ESEF assurance report
166 KONE Annual Review 2025
tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard
and
whether the notes and company's identification data in the consolidated
financial statements that are included in the ESEF financial statements have
been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard
and
whether there is consistency between the ESEF financial statements and the
audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s
judgement. This includes an assessment of the risk of material deviations due to fraud
or error from the requirements of the Commission’s technical regulatory standard.
We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the
primary financial statements, notes and company's identification data in the
consolidated financial statements that are included in the ESEF financial statements of
KONE Corporation 2138001CNF45JP5XZK38-2025-12-31-fi.zip for the financial year
ended 31.12.2025 have been tagged, in all material respects, in accordance with the
requirements of the Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of KONE Corporation
for the financial year ended 31.12.2025 has been expressed in our auditor's report
dated 5.2.2026. With this report we do not express an opinion on the audit of the
consolidated financial statements nor express another assurance conclusion.
Helsinki 5.2.2026
Ernst & Young Oy
Authorized Public Accountant Firm
Heikki Ilkka
Authorized Public Accountant
Auditor’s assurance report on the sustainability statement
167 KONE Annual Review 2025
Assurance report on the sustainability statement
(Translation of the Finnish original)
To the Annual General Meeting of Kone Oyj
We have performed a limited assurance engagement on the group sustainability
statement of KONE Oyj (business identity code 1927400-1) that is referred to in
Chapter 7 of the Accounting Act and that is included in the report of the Board of
Directors for the reporting period 1.1.–31.12.2025.
Opinion
Based on the procedures we have performed and the evidence we have obtained,
nothing has come to our attention that causes us to believe that the group sustainability
statement does not comply, in all material respects, with
1. the requirements laid down in Chapter 7 of the Accounting Act and the
sustainability reporting standards (ESRS), and
2. the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the
European Parliament and of the Council on the establishment of a framework to
facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU
Taxonomy).
Point 1 above also contains the process in which KONE Oyj has identified the
information for reporting in accordance with the sustainability reporting standards
(double materiality assessment).
Our opinion does not cover the tagging of the group sustainability statement with
digital XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection
1(2), of the Accounting Act, because sustainability reporting companies have not had
the possibility to comply with that requirement in the absence of requirements for the
tagging of sustainability information in the ESEF regulation or other European Union
legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited
assurance engagement in compliance with good assurance practice in Finland and with
the International Standard on Assurance Engagements (ISAE) 3000 (Revised)
Assurance Engagements Other than Audits or Reviews of Historical Financial
Information.
Our responsibilities under this standard are further described in the Responsibilities of
the Authorized Group Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability statement of KONE Oyj that
is referred to in Chapter 7 of the Accounting Act has been prepared and assurance has
been provided for it for the first time for the financial year January 1–December 31,
2024. Our opinion covers the comparative information that has been presented in the
group sustainability statement for January 1–December 31, 2024, but not any other
comparative information. Our opinion is not modified in respect of this matter.
Auditor’s assurance report on the sustainability statement
168 KONE Annual Review 2025
Authorized Group Sustainability Auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance
with the ethical requirements that are applicable in Finland and are relevant to our
engagement, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
The Authorized Group Sustainability Auditor applies International Standard on Quality
Management ISQM 1, which requires the Authorized Sustainability Audit Firm to design,
implement and operate a system of quality management including policies or
procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Kone Oyj are responsible for:
the group sustainability statement and for its preparation and presentation in
accordance with the provisions of Chapter 7 of the Accounting Act, including
the process that has been defined in the sustainability reporting standards and
in which the information for reporting in accordance with the sustainability
reporting standards has been identified,
the compliance of the group sustainability statement with the requirements laid
down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament
and of the Council on the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088, and for
such internal control as the Board of Directors and the Managing Director
determine is necessary to enable the preparation of a group sustainability
statement that is free from material misstatement, whether due to fraud or
error.
Inherent Limitations in the Preparation of a Sustainability Statement
The preparation of the group sustainability statement requires a materiality assessment
from the company in order to identify relevant disclosures. This significantly involves
management judgment and choices. Group Sustainability reporting is also characterized
by the fact that reporting of this type of information involves estimates and
assumptions, as well as measurement and assessment uncertainty.
The determination of greenhouse gases is subject to inherent uncertainty due to the
incomplete scientific data used to determine the emission factors and the numerical
values needed to combine emissions of different gases.
When reporting future-related information in accordance with the ESRS standards, the
company’s management must present assumptions regarding possible future events
and disclose the company's potential future actions related to these events, as well as
prepare future-related information based on these assumptions. The actual outcome is
likely to differ, as predicted events often do not occur as expected.
Auditor’s assurance report on the sustainability statement
169 KONE Annual Review 2025
Responsibilities of the Authorized Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance
about whether the group sustainability statement is free from material misstatement,
whether due to fraud or error, and to issue a limited assurance report that includes our
opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
decisions of users taken on the basis of the group sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000
(Revised) requires that we exercise professional judgment and maintain professional
skepticism throughout the engagement. We also:
Identify and assess the risks of material misstatement of the group
sustainability statement, whether due to fraud or error, and obtain an
understanding of internal control relevant to the engagement in order to design
assurance procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
Design and perform assurance procedures responsive to those risks to obtain
evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing
from, and are less in extent than for, a reasonable assurance engagement. The nature,
timing and extent of assurance procedures selected depend on professional judgment,
including the assessment of risks of material misstatement, whether due to fraud or
error. Consequently, the level of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Our procedures included for ex. the following:
We have interviewed the management of group as well as key personnel
responsible for collecting and reporting of the information included in the group
sustainability statement.
Through interviews, we gained an understanding of the group’s control
environment related to the group sustainability reporting process.
We evaluated the implementation of the company's double materiality
assessment process in relation to the requirements of the ESRS standards, as
well as whether the information provided from the double materiality
assessment is in material respects in accordance with the ESRS standards.
We assessed whether the group sustainability statement in material respects
meets the requirements of the ESRS standards regarding material sustainability
topics:
o We have tested the accuracy of the information presented in the group
sustainability statement by comparing the information on a sample
basis to the documentation and records prepared by the company and
assessed whether they support the information included in the group
sustainability statement.
o We have on a sample basis performed analytical assurance procedures
and related inquiries, recalculations and inspected documentation, as
well as tested data aggregation to assess the accuracy of the group
sustainability statement.
We conducted site visits at selected locations.
Regarding EU Taxonomy data, we gained an understanding of the process by
which a company has defined taxonomy-eligible and taxonomy-aligned
economic activities, and we assessed the compliance of the information
provided.
Helsinki 5.2.2026
Ernst & Young Oy
Authorized Sustainability Audit Firm
Heikki Ilkka
Authorized Sustainability Auditor
Corporate Governance Statement
170 KONE Annual Review 2025
Corporate Governance
Statement
KONE’s Corporate Governance Statement for the financial
year 2025 has been prepared in accordance with the
requirements of the Finnish Corporate Governance Code
2025. KONE Corporation complies with the Finnish
Corporate Governance Code 2025 issued by the
Securities Market Association, with the exception of
recommendations 17 (Independence of the company of
the members of the remuneration committee) and 18
(Independence of the company of the members of the
nomination committee). These exceptions are due to the
company’s ownership structure. The company’s largest
shareholder, Antti Herlin, controls 62 percent of the
company’s voting rights and 23 percent of its shares. The
significant entrepreneurial risk associated with ownership
is considered to justify the main shareholder serving as
the Chairman of the Board of Directors and a member of
the Board’s Nomination and Compensation Committee
and, in this capacity, overseeing shareholders’ interests.
The Corporate Governance Code in its entirety is
available at the Securities Market Association website
www.cgfinland.fi. This statement is available on the
company’s website at www.kone.com and it has been
issued separately of the Board of Directors’ Report.
Regulatory Framework
KONE follows, among others, the Finnish Limited Liability
Companies Act, the Securities Markets Act and other laws
and regulations applicable to publicly listed companies in
Finland, its Articles of Association, the Rules of the
Helsinki Stock Exchange, as well as the regulations and
guidelines issued by the Finnish Financial Supervisory
Authority.
Governing Bodies
KONE’s governance bodies and officers with the greatest
decision-making power are the General Meeting of
Shareholders, the Board of Directors of KONE
Corporation, the Chairman of the Board and the President
and CEO. The Board of Directors is responsible for the
administration of the company and the appropriate
organization of its operations. The President and CEO,
supported by the Executive Board, is responsible for
operative management of the company.
Annual General Meeting
At the Annual General Meeting, the shareholders of the
company exercise their decision-making power. The
Annual General Meeting of Shareholders decides on the
matters stipulated in the Finnish Companies Act and the
Articles of Association, including the shareholders
approve the consolidated financial statements, decide on
the distribution of profits, elect the members of the Board
of Directors and the auditors and determine their
compensation.
KONE Corporation’s Annual General Meeting is
convened by the Board of Directors. According to the
Articles of Association, the Annual General Meeting of
Shareholders shall be held within three months of the
closing of the financial year on a date decided by the
Board of Directors.
Board of Directors
Duties and responsibilities
The Board of Directors’ duties and responsibilities are
defined primarily by the Articles of Association and the
Finnish Limited Liability Companies’ Act. The Board’s
duties include:
ensuring appropriate arrangement of the control of
the company accounts and finances
approving the financial statements, the Board of
Director’s Report including the Sustainability
Statement, the Corporate Governance Statement as
well as the interim reports
monitoring and evaluating the financial and
sustainability reporting processes, the efficiency of
the company’s internal control, internal audit and risk
management systems
preparing issues to be presented to the shareholders’
meeting
appointing the President and CEO, and determining
his/her remuneration
approving the remuneration policy and remuneration
report
approving and confirming strategic guidelines and the
principles of risk management
approving annual budgets and plans
decisions on the company’s corporate structure
decisions on major acquisitions and investments
decisions on other matters falling under the Board’s
responsibility by law.
The Board has created rules of procedure stipulating the
duties of the Board, its Chairman and its Committees. The
Board of Directors holds seven regular meetings a year
and additional meetings as required. The Board of
Directors reviews its own performance and procedures
once a year.
Members of the Board
The Annual General Meeting elects five to ten members
and no more than three deputy members to the Board of
Directors in accordance with KONE Corporation’s Articles
of Association. The term of the Board of Directors shall
expire at the end of the next Annual General Meeting. The
Board of Directors elects a Chairman and Vice Chair
among its members. The proposals for Board members
Corporate Governance Statement
171 KONE Annual Review 2025
are prepared by the Nomination and Compensation
Committee under the steering of the Chairman of the
Board.
The Board has defined a Board diversity policy which
gives guidance to the nomination of the Board of
Directors. The objective is to have a Board composition
that is diverse and balanced, fostering a dynamic and
inclusive environment where members’ backgrounds
complement each other and create synergies that benefit
KONE, its stakeholders and operations.
Board members are nominated and selected based on
their merits, qualifications, competencies, skills, and
integrity as well as their ability to dedicate time and
contribute to the Board’s overall effectiveness and the
strategic direction of the company.
During the preparation and in the proposal to the
General Meeting of Shareholders, attention is paid to the
board candidates’ broad and mutually complementary
background, professional experience, expertise, cultural
background, nationality, age, gender and views of both
KONE’s business and other industries. The Board
members should have combined experience in different
markets and geographies and in strategically important
focus areas for KONE. The objective is to have balanced
gender representation on the Board. The independence of
the members of the Board is assessed in line with the
independence criteria of the Finnish Corporate
Governance Code.
Committees
The Board of Directors has appointed two committees
consisting of its members: the Audit Committee and the
Nomination and Compensation Committee. The Board has
confirmed rules of procedure for both Committees. The
Secretary to the Board acts as the Secretary of both
Committees.
The Audit Committee monitors the Group’s financial
situation and monitors and evaluates reporting processes
related to the financial statements and interim reports as
well as the sustainability statement. The Audit Committee
monitors and evaluates the adequacy and
appropriateness of KONE’s internal control and risk
management, as well as the compliance with rules and
regulations. It also deals with the Corporation’s internal
audit plans and reports. The Head of Assurance reports
the internal audit results to the Committee. The Audit
Committee also monitors and evaluates how agreements
and other transactions between the company and its
related parties meet the requirements relating to ordinary
business operations and general market terms and
monitors and oversees the financial statement and
financial reporting process. In addition, the Audit
Committee processes the description of the main features
of the internal control and risk management systems
pertaining to the financial reporting process included in
the company’s corporate governance statement.
The Audit Committee evaluates the auditing of the
Group’s companies and the appropriateness of the related
arrangements and auditing services and reviews the
auditors’ reports. Furthermore, the Committee monitors
and evaluates the independence of the external auditors,
including particularly the provision of non-audit services
to the company, and approves the principles of accepting
fees for non-audit services. The Audit Committee
prepares a proposal for the Annual General Meeting
regarding the auditors to be elected for the Corporation.
The Audit Committee also monitors the assurance of the
sustainability reporting and prepares a proposal for the
election of assurance service provider for sustainability
reporting.
The Nomination and Compensation Committee
prepares proposals to be made to the Annual General
Meeting regarding the nomination of Board members and
their compensation, makes decisions regarding senior
management appointments and compensation and
oversees the succession planning of senior management,
including the President and CEO. The Committee also
decides on the compensation systems to be used and
prepares the remuneration policy and remuneration report
for the company’s governing bodies.
Management
Chairman of the Board, Executive Vice Chair of the
Board and the President and CEO
KONE Corporation’s Board of Directors appoints the
Chairman of the Board, the possible executive Vice Chair
of the Board and the President and CEO. The Board
determines the terms and conditions of employment of
the executive Vice Chair of the Board and the President
and CEO, and these are defined in their respective written
contracts. The Chairman of the Board and the Vice Chair
of the Board prepare matters to be considered by the
Board together with the President and CEO and their
corporate staff. The executive Vice Chair supports the
Chairman of the Board in fulfilling his duties as Chairman,
observes the meetings of the Executive Board, monitors
KONE's business performance via regular meetings and
chairs the working committee of the Nomination and
Compensation Committee.
The Chairman of the Board, the Vice Chair of the
Board and the President and CEO are responsible for the
execution of the targets, plans, strategies and goals set
by the Board of Directors within the KONE Group. The
President and CEO is responsible for operational
leadership within the scope of the strategic plans,
budgets, operational plans, guidelines and orders
approved by KONE Corporation’s Board of Directors. The
President and CEO presents operational matters to the
Board and is responsible for implementing the decisions
of the Board.
Executive Board
The Executive Board supports the President and CEO in
executing the corporate strategy. The Executive Board
follows business developments, initiates actions and
defines operating principles and methods in accordance
with guidelines handed down by the Board of Directors
and the President and CEO. The Executive Board holds
regular monthly meetings and additional meetings as
required.
C
orporate
G
overnance
S
tatement
172 KONE Annual Review 2025
Risk management, internal control, related
party transactions and audit
KONE Corporation’s Board of Directors has ratified the
principles of risk management, internal control and
internal auditing to be followed within the Group.
Risk management
The aim of risk management at KONE is to identify the
risks and uncertainties related to the achievement of
KONE’s objectives, assess the likelihood and magnitude of
the risks and opportunities and to identify necessary
actions to mitigate the negative impacts of identified
risks.
KONE’s Global Risk Management function develops,
coordinates and facilitates systematic risk management
integrated into KONE’s core business processes and
decision-making. KONE’s business units are responsible
for identifying, assessing and managing risks that can
threaten the achievement of their business objectives as
part of KONE’s strategic planning and budgeting
processes.
Key risks are reported to the Global Risk Management
function, which consolidates the risk information to the
Executive Board. Executive Board members for Areas and
global functions are owners of the key risks and
opportunities relevant to the objectives of their
organization. The Executive Board reviews and approves
the Risk Management Policy and approves KONE’s risk
tolerance. KONE’s Board of Directors approves the risk
management principles of KONE and is responsible for
monitoring and evaluating the effectiveness of KONE’s
risk management systems. The Board of Directors also
reviews key risks and risk treatment action plans and
acts, when necessary, on key risks reported to the Board.
Internal control
The aim of KONE’s internal control environment is to
ensure that the Group’s operations are efficient and
profitable, risks and opportunities are managed to an
acceptable level, and that the financial and operational
reporting is reliable and in compliance with the applicable
regulations, policies and practices.
The Board’s Audit Committee monitors the efficiency
and functioning of the internal control environment. The
management is responsible for establishing and
maintaining adequate internal controls and for monitoring
their effectiveness as part of operative management. The
management is supported by a dedicated Internal
Controls function, responsible for facilitating and
coordinating the internal control design, implementation
and monitoring across the organization.
KONE’s internal control framework is built and based
on corporate values, the KONE Code of Conduct, a culture
of honesty and high ethical standards. The framework is
supported by a dedicated leadership, training programs, a
positive and diligent corporate culture and working
environment as well as by attracting and promoting
dedicated and competent employees. Global and local
policies and principles are key parts of the internal control
framework.
KONE’s internal controls are designed to manage
relevant operational, financial, and compliance risks as
part of KONE’s processes and employee job roles. Internal
controls are supported by global and local policies and
principles that are continuously maintained by
incorporating changes and developments from business
operations and information systems.
KONE’s business units are responsible for
implementing the control framework and for monitoring
adherence to the globally and locally agreed policies and
principles. KONE’s Global Finance has the oversight
responsibility for the overall framework.
Internal control procedures over financial
reporting
Correct financial reporting in KONE’s internal control
framework means that its financial statements give a true
and fair view of the financial performance of the
operations and the financial position of the Group and that
such statements do not include intentional or
unintentional misstatements or omissions both in respect
of the figures and level of disclosure.
Corporate-wide financial management and control of
operations is coordinated by the Global Finance function
and implemented by a network of subsidiary and business
entity controllers within KONE.
KONE’s monthly business planning and financial
reporting process represents a key control procedure
within KONE in ensuring the effectiveness and efficiency
of operations. This process includes in-depth analyses of
deviations between actual performance, budgets, prior
year performance and latest forecasts for the business on
multiple levels of the organization. The process covers
financial information as well as other key performance
indicators that measure the operational performance on a
business unit and corporate level. The process is
designed to ensure that any deviations from plans in
terms of financial or operating performance and financial
management policies are identified, communicated and
reacted upon efficiently, in a harmonized and timely
manner. KONE’s financial statements are based on this
management reporting process.
Financial control tasks are built into the business
processes of KONE as well as into the management’s
ongoing business supervision and monitoring. KONE has
established Financial Control Models for the New Building
Solutions, Service and Modernization as well as for
treasury and tax matters. The models have been defined
to ensure that financial control covers the relevant tasks
in an efficient and timely manner.
The interpretation, application and monitoring of the
compliance of accounting standards is centralized in the
Global Finance function, which maintains, under the
supervision of the Audit Committee, the KONE Accounting
Standards. Reporting and forecasting contents are
defined in the KONE Accounting and Reporting
Instructions. These standards and instructions are
maintained and updated centrally by the Global Finance
function and applied uniformly throughout KONE.
More information
The most significant risks and uncertainties
related to KONE’s business are described in the
Board of Directors’ Report. Financial risk
management is described in notes 2.4 and 5.3 of
the consolidated financial statements.
Corporate Governance Statement
173 KONE Annual Review 2025
KONE has a global enterprise resource planning (ERP)
system which is built to reflect the KONE Accounting
Standards and the KONE Accounting and Reporting
Instructions. KONE applies a controlled change
management process ensuring that no changes to the
financial reporting logic of the ERP system can be made
without approval from the Global Finance function.
Automatic interfaces between different systems are
principally applied in the period-end financial reporting
process of KONE. Transactional processing is increasingly
automated and centralized in dedicated shared service
centers.
Effective internal control over record-to-report
processes, from business processes and systems to the
financial statements, is important in ensuring the
correctness of financial reporting. This is driven by the
identification of key data elements of the business and
the quality of the data to ensure correct financial
reporting and forecasting ability.
Internal audit
The Corporation has an internal audit function, KONE
Assurance, which operates separately from the
management. The purpose, scope, authority, and
principles of independence and objectivity of the
Assurance function are outlined in the KONE Assurance
Charter, approved by the Audit Committee. The KONE
Assurance function is responsible for assessing the
adequacy and effectiveness of risk management,
governance, compliance and internal control systems, and
providing recommendations to improve these processes.
It reports its findings to the Audit Committee which also
approves the risk-based assurance plan. The Head of
Assurance, Kristian Snäll, reports to the Vice Chair of the
Board.
Related party transactions
KONE evaluates and monitors related party transactions
between the company and its related parties. KONE
maintains a list of related parties. KONE’s related parties
comprise its subsidiaries as well as the Board of Directors,
the President and CEO, the Executive Board including any
companies controlled or significantly influenced by them.
KONE’s Board of Directors has approved guidelines for
how to recognize, handle, approve, monitor and report
related party transactions. According to the guidelines,
the Corporate Controlling function follows and monitors
related party transactions as part of KONE’s normal
reporting and control procedures and reports related
party transactions to the Audit Committee annually.
KONE’s Board of Directors decides on any related
party transactions which are not considered normal
business activities or differ from market terms. KONE
reports relevant and material related party transactions
annually in the notes of consolidated financial statements.
External audit and sustainability reporting
assurance
The objective of a statutory audit is to express an opinion
on whether the consolidated financial statements give a
true and fair view of the financial position, financial
performance and cash flows of the Group, as well as
whether the parent company’s financial statements give a
true and fair view of the parent company’s financial
performance and financial position. Statutory audit also
encompasses the audit of the accounting and governance
in the company. The auditor considers whether the
information in the Board of Directors’ Report is consistent
with the information in the financial statements and the
report of the Board of Directors has been prepared in
accordance with the applicable legal requirements. The
Sustainability Statement, included in the Board of
Directors’ Report, is assured with limited assurance by a
sustainability auditor.
According to the Articles of Association, the company
must have a minimum of one and a maximum of three
Auditors. The Auditors must be authorized public
accountants or authorized public accounting firms. The
Auditor and the Sustainability Auditor are elected at the
Annual General Meeting for a term that ends at the
conclusion of the next Annual General Meeting following
the election
Insiders
KONE Corporation adheres to the insider guidelines of the
Nasdaq Helsinki Ltd, which have been supplemented with
internal insider guidelines approved by the Board of
Directors. In compliance with the Market Abuse
Regulation, the person discharging managerial
responsibilities in KONE Corporation (managers) include
the members and deputy members of the Board of
Directors, the President and CEO and the members of the
Executive Board. Managers are permitted to trade in
KONE shares and other financial instruments of KONE
during a six-week period starting on the next day after the
publishing of annual and interim results.
KONE does not maintain a list of permanent insiders.
The company maintains deal-specific insider lists for
projects or events constituting insider information. Deal-
specific insiders are prohibited from trading with financial
instruments of KONE during the validity of the project.
KONE maintains up-to-date information of the persons
that participate in the preparation, drawing-up and
disclosure of quarterly and year-end financial reports and
who, therefore, are subject to the trading restriction
during the closed period. The closed period starts six
weeks following the publishing of the financial statements
bulletin or interim report and ends at the end of the day of
publication of the financial statements bulletin/interim
report. The person in charge of KONE’s insider matters is
the Secretary to the Board of Directors.
Corporate Governance in 2025
Annual General Meeting
The Annual General Meeting was held in Helsinki, Finland
on March 5, 2025.
Board of Directors and committees
The Annual General Meeting elected nine members to
KONE’s Board of Directors: Antti Herlin (Chairman), Jussi
Herlin (Executive Vice Chair), Banmali Agrawala, Matti
Alahuhta, Susan Duinhoven, Marika Fredriksson, Iiris
Herlin, Timo Ihamuotila, and Krishna Mikkilineni.
Corporate Governance Statement
174 KONE Annual Review 2025
A majority of the Board members have international
professional experience in various types of positions, and
they are, or have been, members of the Board of
Directors in both listed and unlisted companies. Each
board member has a university degree and three of them
a doctorate. These degrees are from various fields, with
technical fields and economics in the majority. The
members represent five different nationalities. Of the
Board members, six (67%) are male and three (33%) are
female. Regarding age, 22% of the members are below 50
years of age, 44% between 51-65 and 33% over 65
.
Diversity of the Board is considered to be at a good level
to ensure wide range of perspectives and experience and
effective performance of the Board of Directors to
support KONE’s strategic goals.
Of the Board members, Banmali Agrawala, Matti
Alahuhta, Susan Duinhoven, Marika Fredriksson, Iiris
Herlin, Timo Ihamuotila, and Krishna Mikkilineni are
independent of the Corporation. With the exception of
Antti Herlin, Iiris Herlin and Jussi Herlin, the Board
members are independent of the Corporation’s significant
shareholders.
The Board of Directors convened nine times in 2025.
The average participation rate of the Board members in
the meeting was 95%. Niina Vilske serves as Secretary to
the Board and to its committees.
Audit committee
The Board of Directors’ Audit Committee comprises
Marika Fredriksson (Chair, independent member), Susan
Duinhoven (independent member), Jussi Herlin and Timo
Ihamuotila (independent member).
The Audit Committee held four meetings in 2025. The
average participation rate of the Audit Committee
members in the meetings was 94%.
Nomination and compensation committee
The Nomination and Compensation Committee comprises
Jussi Herlin (Chair), Matti Alahuhta (independent
member), Susan Duinhoven (independent member) and
Antti Herlin.
The Nomination and Compensation Committee held
three meetings in 2025. The average participation rate of
Shareholdings of KONE Board on Dec 31, 2025 and changes in shareholding during the period Jan 1–Dec 31, 2025
Position Born Gender
Nationality Education
Class A
shares
Change
Class B
shares
Change
Antti Herlin Chair 1956 Male Finnish
D.Sc. (Econ.) h.c., D.Arts h.c.,
D.Sc. (Tech.) h.c. 70,561,608
-
53,063,850
+1,690
Jussi Herlin
Vice Chair 1984 Male Finnish M.Sc. (Econ.) 105,467
-
Banmali
Agrawala Member 1963 Male Indian B. Engineering (Mech.) 845
+845
Matti
Alahuhta Member 1952 Male Finnish
D.Sc. (Tech.), D.Sc. (Tech.)
h.c. 758,602
+845
Susan
Duinhoven Member 1965 Female
Dutch
Ph.D. (Physical Chemistry),
B.Sc. (Physical Chemistry) 5,489
+845
Marika
Fredriksson
Member 1963 Female
Swedish M.Sc. (Econ.) 2,727
+845
Iiris Herlin Member 1989 Female
Finnish
M.Soc.Sc., Bachelor of
Natural Resources 139,649
+845
Timo
Ihamuotila Member 1966 Male Finnish Lic. Sc. (Finance) 13,848
+845
Krishna
Mikkilineni Member 1959 Male American
Ph.D. (Electrical and
Computer Engineering),
B.Tech. (Electronics and
Communications
Engineering) 3,685
+845
Number of Board and Committee meetings in 2025 and participant attendance:
Board
Audit Committee
Nomination and Compensation
Committee
Antti Herlin 9/9
3/3
Jussi Herlin 9/9
4/4
3/3
Banmali Agrawala* 6/7
Matti Alahuhta 9/9
3/3
Susan Duinhoven 9/9
4/4
3/3
Marika Fredriksson 8/9
4/4
Iiris Herlin 8/9
Timo Ihamuotila 8/9
3/4
Krishna Mikkilineni 9/9
Ravi Kant* 2/2
* Ravi Kant served as Board member until March 5, 2025. Banmali Agrawala was elected to the Board on March 5, 2025.
Corporate Governance Statement
175 KONE Annual Review 2025
the Nomination and Compensation Committee members
in the meetings was 100%.
President and CEO
Philippe Delorme has served as KONE Corporation’s
President and CEO since January 1, 2024.
Philippe Delorme’s holdings of shares are presented in
the adjacent table.
Executive Board
At the end of 2025, KONE’s Executive Board consisted of
the President and CEO and twelve members. Philippe
Delorme serves as KONE Corporation’s President and
CEO. The other members of the Executive Board are
Nicolas Alchal (EVP, Commercial & Operations), Joe Bao
(EVP, Greater China), Kaija Bridger (EVP, People &
Communications), Johannes Frände (General Counsel),
Samer Halabi (EVP, Asia-Pacific, Middle East and Africa),
Ilkka Hara (Chief Financial Officer), Mikko Korte (EVP,
Supply Chain), Karla Lindahl (EVP, Europe), Tomio Pihkala
(EVP, Chief Technology Officer), Ken Schmid (EVP,
Americas), Kaori Uehigashi (EVP, Strategy &
Transformation), and Michelle Wen (EVP, Purchasing).
The Executive Board members’ holdings of shares are
presented in the adjacent table.
Auditing
KONE Corporation’s Auditor and Sustainability Auditor is
audit firm Ernst & Young Oy. The Auditor-in-charge and
responsible Sustainability Auditor is Heikki Ilkka. The fees
paid to Ernst & Young Oy during 2025 were EUR 1.1 million
for auditing, 0.3 million for sustainability reporting
assurance and EUR 0.3 million for tax and other services
Insiders
The shareholding of the members of the Board of
Directors, the Management of KONE and the corporations
under their control amounted to 125,071,514 shares on
December 31, 2025, which represents 23.6% of total
shares and 62.5% of voting rights. Antti Herlin’s ownership
is 123,625,458 shares and 75,867,992 votes.
Shareholdings of KONE Management on Dec 31, 2025 and changes in shareholding during the
period Jan 1–Dec 31, 2025
Position Born Gender Nationality Education
Class B
shares
Change
Philippe
Delorme President and CEO 1971 Male French
M.Sc. (Manufacturing),
MBA (International
Business) 0
-
Nicolas
Alchal
Executive Vice President,
Commercial & Operations 1981 Male Greek
M.Sc. (Electrical
Engineering), MBA
(Business
Administration) 7,948
+2,175
Joe Bao
Executive Vice President,
Greater China 1982 Male American
B.A. (Management
Information Systems) 22,285
+22,285
Kaija
Bridger
Executive Vice President,
People & Communications 1972 Female Finnish M.Sc. (Psychology) 2,600
+2,505
Johannes
Frände General Counsel 1979 Male Finnish
LL.M., M.Sc. (Computer
Science) 10,467
+4,973
Samer
Halabi
Executive Vice President,
Asia-Pacific, Middle East
and Africa 1970 Male Dominican
M.Sc. (Mechanical
Engineering) 50,085
+9,945
Ilkka Hara Chief Financial Officer 1975 Male Finnish
M. Sc. (Finance and
Accounting) 68,746
+7,435
Mikko
Korte
Executive Vice President,
Supply Chain 1968 Male Finnish M.Sc. (Eng) 74,238
+7,460
Karla
Lindahl
Executive Vice President,
Europe 1981 Female Finnish
LL.M., M.A. (EC
Competition Law) 16,417
+4,973
Tomio
Pihkala Chief Technology Officer 1975 Male Finnish
M.Sc. (Mechanical
Engineering) 127,140
+7,460
Ken
Schmid
Executive Vice President,
Americas 1963 Male American
MBA (Business
Administration) 35,818
+6,254
Kaori
Uehigashi
Executive Vice President,
Strategy & Transformation 1979 Female Finnish
M.Sc. (Industrial
Engineering) 0
-
Michelle
Wen
Executive Vice President,
Purchasing 1965 Female French
B.A. (English Literature
and International Trade),
MBA (European &
International Business) 0
-
Corporate Governance Statement
176 KONE Annual Review 2025
The individual holdings of the members of the Board of
Directors and the KONE Management, and the changes
occurred in them during the financial year, are presented
in the adjacent tables.
Related party transactions
Except for management remuneration, there have not
been any material transactions between KONE and its
members of the Board of Directors, the President & CEO
or the members of the Executive Board including any
companies controlled or significantly influenced by them.
Corporate Governance Statement
177 KONE Annual Review 2025
Board of Directors
Antti Herlin
Chairman of the Board
b. 1956, D.Sc. (Econ.) h.c., D.Arts h.c., D.Sc. (Tech) h.c.
Member of the Board since 1991.
Has served as Chairman of the Board since 2003.
Previously served as Executive Chairman of the Board of
KONE 2006–2021, as CEO of KONE 1996–2006, and as
Deputy Chairman 1996–2003.
Current key positions of trust: Chairman of the Board of
Security Trading Oy, Chairman of the Board of Holding
Manutas Oy, and Chairman of the Board of the Tiina and
Antti Herlin Foundation.
Jussi Herlin
Vice Chair of the Board
b. 1984, M.Sc. (Econ)
Member of the Board since 2012.
Has served as Executive Vice Chair of the Board of KONE
since 2021 and Vice Chair of the Board since 2014.
Previously served as Senior Business Analyst and
Strategy Development Manager at KONE 2016–2020, as
Consultant at Accenture 2012–2014, and as Deputy
Member of the Board of KONE Corporation 2007–2012.
Current key positions of trust: Member of the Board of
Security Trading Oy, Member of the Board of Holding
Manutas Oy, Member of the Board of Technology
Industries of Finland and Member of the Board of the
KONE Centennial Foundation.
Banmali Agrawala
b. 1963, B. Engineering (Mech.)
Member of the Board since 2025.
Currently serves as Senior Advisor for Tata Sons Private
Limited since July 2023. Previously served as President of
Infrastructure, Aerospace & Defence at Tata Sons from
2017-2023, President & CEO of South Asia at General
Electric from 2013-2017, Executive Director of Strategy
and Business Development at Tata Power Ltd from 2008-
2013 and in various roles at Wärtsilä from 1987–2008 both
in India and Finland, including Managing Director of
Wärtsilä India Ltd from 2003–2008.
Current key positions of trust: Chairman of the Board of
Tata Advanced Systems Limited, Tata Medical &
Diagnostics Limited and Pratham Education Foundation,
and Member of the Board of Tata Electronics Ltd and
National Investment and Infrastructure Fund Limited.
Matti Alahuhta
b. 1952, D. Sc. (Tech.), D.Sc. (Tech.) h.c.
Member of the Board since 2003.
Previously served as President and CEO of KONE 2005-
2014, as Executive Vice President of Nokia Corporation
2004, as President of Nokia Mobile Phones 1998-2003, as
President of Nokia Telecommunications 1993-1998, and
as SVP, Public Networks 1992 and VP, Dedicated
Networks 1986-1991 in Nokia Telecommunications.
Current key positions of trust: Chairman of the Board of
DevCo Partners Corporation and Member of the Board of
Volvo Group (publicly listed company).
Susan Duinhoven
b. 1965, Ph.D. (Physical Chemistry), B. Sc. (Physical
Chemistry)
Member of the Board since 2020.
Previously served as President and CEO of Sanoma
Corporation (publicly listed company) from 2015 till
January 1, 2024, CEO of Koninklijke Wegener N.V. 2013–
2015, as CEO of Western Europe / CEO Netherlands at
Thomas Cook Group Plc 2010–2013, as Managing Director
of Benelux & New Acquisitions Europe at Reader's Digest
2008–2010, and as CEO at De Gule Sider A/S 2005–2007.
Started her career at Unilever in 1988.
Current key position of trust: Member of the Board of
Kemira Oyj (publicly listed company).
Marika Fredriksson
b. 1963, M.Sc. (Econ.)
Member of the Board since 2023.
Previously served as CFO and Group Executive Vice
President of Vestas Wind Systems A/S 2013–2022, CFO
of Gambro AB 2009–2012, CFO of Autoliv Inc. 2008–2009,
and has held various positions including CFO and Senior
Vice President Finance and Strategy at Volvo
Construction Equipment Corporation 1996–2008.
Current key positions of trust: Member of the Board of
A.P. Møller - Maersk A/S (publicly listed company),
Member of the Board of AB Industrivärden (publicly listed
company), Member of the Board of Sandvik AB (publicly
listed company), Member of the Board of Ecolean AB, and
Chairman of the Board of emagine Consulting.
Iiris Herlin
b. 1989, M.Soc.Sc., Bachelor of Natural Resources
Member of the Board since 2015.
Previously served as Deputy Member of the Board 2013–
2014.
Current key positions of trust: Member of the Board of
Security Trading Oy and Member of the Board of the Tiina
and Antti Herlin Foundation.
Timo Ihamuotila
b. 1966, Lic. Sc. (Finance)
Member of the Board since 2024.
Serves as CFO of ABB Ltd since 2017. Previously served
as CFO of Nokia Corporation 2009–2016, Executive Vice
President, Sales, Markets of Nokia Corporation 2008–
2009, and has held various other positions at Nokia
Corporation, including Executive Vice President, Sales and
Portfolio Management, Mobile Phones 2007, Senior Vice-
President, CDMA Business Unit, Mobile Phones 2004–
2007, director positions in the finance function 1999–
2004 and Manager of Dealing & Risk Management 1993–
1996. Prior to that, he served as Vice-President of Nordic
Derivatives Sales at Citibank Plc 1996–1999 and Analyst,
Assets and Liability Management at Kansallis-Osake-
Pankki 1990–1993.
Current key positions of trust: Vice Chair of the Board of
Nokia Corporation (publicly listed company) and Member
of the Board of Oras Invest Oy.
Krishna Mikkilineni
b. 1959, Ph.D. (Electrical and Computer Engineering),
B.Tech. (Electronics and Communications Engineering)
Member of the Board since 2022.
C
orporate
G
overnance
S
tatement
178 KONE Annual Review 2025
Previously served in different positions at Honeywell
International Inc. both in the U.S.A. and India 1985–2019
(latest positions were Chief Technology Officer, Chief
Information Officer, Chief of Integrated Supply Chain &
Customer Service globally across the Honeywell
Corporation). Prior to that, he was President of Honeywell
Technology Solutions.
Current key positions of trust: Senior Advisor for various
start-ups, General Partner in a Venture Capital fund, and
Member of the Board of CompoSecure Inc. (publicly listed
company), Resolute Holdings (publicly listed company),
and a Private Equity firm. He actively manages a private
philanthropic foundation focused on education and elderly
care.
Ravi Kant served as a Board member until March 5,
2025. Banmali Agrawala was elected to the Board on
March 5, 2025.
More information
This statement is available on the company’s web
pages at www.kone.com and it has been given
separately of the Board of Directors’ Report.
Corporate Governance Statement
179 KONE Annual Review 2025
Executive Board
Philippe Delorme
President and CEO
b. 1971, M.Sc. (Manufacturing), MBA (International
Business)
President and CEO of KONE since 2024.
Prior to joining KONE, he worked at Schneider Electric in
various roles, most recently as Executive Vice President,
Europe Operations. Prior to that he held key positions in
the areas of strategy, technology, operations, and sales in
Europe, the US and Asia. He was a member of the
Schneider Electric Executive Committee 2009-2023.
Nicolas Alchal
Commercial & Operations
b. 1981, M.Sc. (Electrical Engineering), MBA (Business
Administration)
Member of the Executive Board since 2024. Employed by
KONE since 2011.
Previously served at KONE as interim leader for Europe
2024-2025, Managing Director for Middle East, Türkiye
and Africa 2022–2024, New Equipment Business Director
and Delivery Operations Director for South Europe, Middle
East and Africa 2019– 2021, and as Managing Director for
UAE, Qatar, Oman and Bahrain 2011–2018.
Prior to joining KONE, he worked in various leadership
roles at ThyssenKrupp Elevator in the United Arab
Emirates 2007-2011.
Joe Bao
Greater China
b. 1982, B.A. (Management Information Systems)
Member of the Executive Board and employed by KONE
as of October 2022.
Previously served as President of Microsoft China 2021-
2022, as well as in various leadership roles in the areas of
sales, marketing, and strategy at both Microsoft
Corporate headquarters and the Greater China Region
2004-2021.
Current key position of trust: Member of the Board of
Governors for FinnCham Shanghai.
Kaija Bridger
People & Communications
b. 1972, M.Sc. (Psychology)
Member of the Executive Board since 2024. Employed by
KONE since 2015.
Previously served at KONE as Vice President, People &
Communications for KONE Asia-Pacific, Middle East, and
Africa 2022-2024 and as Head of Talent Management
and Culture 2015–2022.
Prior to joining KONE, she worked in various Human
Resources consulting positions at Psycon Oy and Cubiks
Finland Oy 2000–2015.
Johannes Frände
General Counsel
b. 1979, LL.M., M.Sc. (Computer Science)
Member of the Executive Board since 2021. Employed by
KONE since 2012.
Previously served as Secretary to the KONE Board of
Directors 2022–2024, Head of Legal for KONE's Service
Business and KONE's Technology and Innovation unit
2017–2021, and as Senior Legal Counsel 2012–2016.
Prior to joining KONE, he worked as an attorney at
Roschier Attorneys Ltd. 2005–2007 and 2009–2012 and
at Debevoise & Plimpton LLP 2008–2009.
Current key position of trust: Member of the Supervisory
Board of Ilmarinen.
Samer Halabi
Asia-Pacific, Middle East and Africa
b. 1970, M.Sc. (Mechanical Engineering)
Member of the Executive Board since 2021. Employed by
KONE since 2001.
Previously served at KONE as Regional Managing Director
for KONE Middle East and Africa 2010–2021, Managing
Director for KONE Qatar 2007–2010, Managing Director
for KONE Distributor Business 2004–2007, and in various
other leadership roles in the Middle East and Africa region
2001–2004.
Ilkka Hara
Chief Financial Officer
b. 1975, M.Sc. (Econ.)
Member of the Executive Board and employed by KONE
since 2016.
Previously served at KONE as interim leader for the South
Europe and Mediterranean region December 2022-June
2023.
Prior to joining KONE, he served at Microsoft Phones as
General Manager and Chief Financial Officer 2014–2016,
at Nokia in various leadership roles 2004–2014, at ABN
AMRO 2003–2004, and at Morgan Stanley 2001–2003.
Current key positions of trust: Member of the Board of
Directors at Hartili Oy and Member of the Board of
Helsinki School of Economics Support Foundation.
Mikko Korte
Supply Chain
b. 1968. M.Sc. (Eng)
Member of the Executive Board since 2016. Employed by
KONE since 1995.
Previously served at KONE as Executive Vice President,
Operations Development 2016–2023, SVP of New
Equipment Business, KONE Americas 2013–2015,
Managing Director, KONE Finland and Baltics 2011–2013,
Service Director, KONE Central and North Europe 2007–
2011, Service Business Director, KONE Scandinavia 2004–
2007, and as Service Operations Manager, KONE Finland
1999–2004.
Corporate Governance Statement
180 KONE Annual Review 2025
Karla Lindahl
Europe
b. 1981, LL.M., M.A. (EC Competition Law)
Member of the Executive Board since 2022. Employed by
KONE since 2004.
Previously served at KONE as Executive Vice President
for South Europe and Mediterranean 2022-2023,
Managing Director for KONE Finland and Baltics 2017-
2022, Vice President, Strategy Development and Market
Intelligence 2016-2017, as Vice President, Strategy
Development and Investor Relations 2014-2016, as
Director, Investor Relations 2010-2014, as Legal Counsel
2005-2010, and as Assistant Legal Counsel 2004-2005.
Current key position of trust: Member of the Board of NKT
A/S.
Tomio Pihkala
Chief Technology Officer
b. 1975, M.Sc. (Mechanical Engineering)
Member of the Executive Board since 2013. Employed by
KONE since 2001.
Previously served at KONE as Executive Vice President,
New Equipment Business 2019–2023, Executive Vice
President, Chief Technology Officer 2015–2019, Executive
Vice President, Operations Development 2013–2015, Vice
President, Technology Finland 2011–2013, Director,
Service Equipment Business, KONE China 2009–2010, and
as Director, Product Strategy and Marketing, KONE China
2007–2008.
Current key positions of trust: Member of the Board of
Toshiba Elevator and Building Systems Corporation,
Member of the Board of VTT Technical Research Centre
of Finland and Member of the Bord of Finnish Foundation
for Technology Promotion.
Ken Schmid
Americas
b. 1963, B.A. (History), MBA (Business Administration)
Member of the Executive Board since 2020. Employed by
KONE since 1986 (Montgomery Elevator Company until
1994).
Previously served at KONE as Senior Vice President,
Finance, KONE Americas 2005–2020, Senior Vice
President, Global Information Services 2003–2005, Senior
Vice President, Chief Information Officer, KONE Americas
1998–2003, Vice President, Quality 1995–1998, and in
various new equipment sales roles in multiple branch
offices.
Current key position of trust: President, Board of
Directors, National Elevator Industry, Inc. (NEII).
Kaori Uehigashi
Strategy & Transformation
b. 1979, M.Sc. (Industrial Engineering)
Member of the Executive Board and employed by KONE
since 2024.
Prior to joining KONE, she served as Managing Director
and Senior Partner at Boston Consulting Group (BCG)
since 2017 and acted as the Managing Partner for BCG in
Finland 2021–2023.
Current key position of trust: Board Member at Meyer
Turku.
Michelle Wen
Purchasing
b. 1965, B.A. (English Literature and International Trade),
MBA (European & International Business)
Member of the Executive Board and employed by KONE
since August 2025.
Prior to joining KONE, she worked in several global
leadership positions in procurement, purchasing, supply
chain, and supplier quality across various industries in
Europe, Asia and the United States. Most recently acted
as the Chief Global Purchasing and Supply Chain Officer
at Stellantis Corporation 2017-2022. Prior to this, she
worked at Vodafone 2016-2017, at Vallourec 2012-2016,
at Alstom Transport 2008-2012, at Renault Nissan 2000-
2008, at Philips Car Systems 1997-2000, and at Thomson
(now Technicolor) 1994-1997.
Current key position of trust: Member of the Board at
Georg Fischer Co. Ltd.
Nicolas Alchal was appointed Executive Vice President,
Commercial & Operations as of April 1, 2025. He continues
to be a member of the KONE Executive Board, succeeding
Axel Berkling who decided to step down from his position
as Executive Vice President. Axel continued to serve the
company as an Executive Advisor until the end of August
2025.
Kaori Uehigashi was appointed Executive Vice
President, Strategy & Transformation as of early May
2025. She continues to be a member of the Executive
Board, having served as the interim leader for the
Strategy & Transformation organization since January
2024.
On June 3, 2025, KONE announced the appointment of
Michelle Wen as Executive Vice President, Purchasing and
member of the Executive Board as of August 1, 2025
Corporate Governance Statement
181 KONE Annual Review 2025
Information for shareholders
Annual General Meeting
KONE Corporation’s Annual General Meeting will be held
on Thursday March 5, 2026 at 11.00 a.m. at Finlandia Hall,
Mannerheimintie 13e, in Helsinki, Finland.
Further instructions and schedules for shareholders
can be found on KONE’s website at kone.com and in the
Notice to the General meeting.
At general meetings, each KONE class A share is
assigned one vote, as is each block of 10 class B shares,
with the provision that each shareholder is entitled to at
least one vote.
Payment of dividends
The Board of Directors proposes to the Annual General
Meeting that for the financial year 2025 a dividend of EUR
1.7975 be paid for each class A share and a dividend of
EUR 1.80 be paid for each class B share. All shares
existing on the dividend record date, March 9, 2026 are
entitled to the dividend. The dividend is proposed to be
paid on March 16, 2026.
Listing of KONE securities
KONE Corporation has two classes of shares: the listed
class B shares and the non-listed class A shares. The
KONE class B shares are listed on the Nasdaq Helsinki
Ltd. and are registered at Euroclear Finland Ltd.
More information
For more information on the Board of Directors’
proposal for the distribution of profit and Shares and
shareholders, please refer to the Board of Directors’
R
eport.
Corporate Governance Statement
182 KONE Annual Review 2025
Investor relations
Investor relations policy
KONE strives to offer liquid shares that present an
attractive investment alternative to domestic and foreign
investors. The primary task of KONE’s Investor Relations
is to ensure that the market has correct and sufficient
information at its disposal in order to determine the value
of the KONE share at all times. The aim of KONE’s written
communications, such as the financial statements and
interim reports, the sustainability statement and
supplement, stock exchange and press releases, the
internet pages as well as that of all other communication
with investors and analysts is to accomplish this task.
In all of its communications, KONE complies with the
requirements for listed companies as defined by EU
legislation, the Finnish Securities Markets Act, the rules of
the Nasdaq Helsinki Ltd. and any other applicable
regulation concerning prompt and simultaneous
disclosure of information.
Silent period
KONE observes a period of silence prior to releasing its
financial results. This means that there are no discussions
regarding financial issues with the capital markets or the
financial media during the three-week period preceding
the publication of interim results and the four-week period
preceding the publication of the annual financial
statements. This applies to meetings, telephone
conversations and other means of communication.
Contact information
Natalia Valtasaari
Vice President, Investor Relations
Tel. +358 (0)204 75 4705
investors@kone.com
KONE’s financial reporting schedule 2026
Financial Statements Bulletin for 2025 and
Annual Review 2025 incl. financial statements Friday, February 6, 2026
Interim Report for January 1–March 31, 2026 Wednesday, April 29, 2026
Half-year Financial Report for January 1–June 30, 2026 Wednesday, July 22, 2026
Interim Report for January 1–September 30, 2026 Wednesday, October 28, 2026
183 KONE Annual Review 2025
This report contains forward-looking statements that are
based on the current expectations, known factors,
decisions and plans of the management of KONE.
Although the management believes that the expectations
reflected in such forward-looking statements are
reasonable, no assurance can be given that such
expectations will prove to be correct. Accordingly, results
could differ materially from those implied in the forward-
looking statements as a result of, among other factors,
changes in economic, market and competitive conditions,
changes in the regulatory environment and other
government actions as well as fluctuations in exchange
rates.
KONE Corporation
Corporate Offices
Keilasatama 3
P.O. Box 7
FI-02150 Espoo Finland
Tel. +358 (0)204 751
www.kone.com
For further information please contact:
Natalia Valtasaari
Vice President, Investor Relations
Tel. +358 (0)204 75 4705