ISS Global A/S
Buddingevej 197
DK – 2860 Søborg
Denmark
Tel.: +45 38 17 00 00
www.issworld.com
CVR 21 40 83 95
Annual Report
1 January – 31 December 2025
Approved at the annual general meeting
On 16 April 2026
Bjørn Raasteen
Chair of the annual general meeting
OVERWIEW 2
Management review
The Management review comprises pp. 3-88.
Content
Introduction to the ISS Global Group ...................................................................................................................... 3
Five-year overview .................................................................................................................................................... 4
Outlook ..................................................................................................................................................................... 5
Our market – attractive dynamics ............................................................................................................................ 6
OneISS
strategy ........................................................................................................................................................ 7
Business risks. .......................................................................................................................................................... 8
Group results ......................................................................................................................................................... 13
Commercial development ....................................................................................................................................... 16
Cash generation and free cash flow ...................................................................................................................... 18
Capital structure ..................................................................................................................................................... 19
Northern Europe .................................................................................................................................................... 20
Central & Southern Europe .................................................................................................................................... 21
Asia & Pacific .......................................................................................................................................................... 23
Americas ................................................................................................................................................................ 24
Corporate governance ........................................................................................................................................... 25
Sustainability statement ......................................................................................................................................... 29
Consolidated financial statements ......................................................................................................................... 89
Parent company financial statements .................................................................................................................. 175
Management statement ....................................................................................................................................... 192
Independent Auditors’ Report ............................................................................................................................. 193
Independent auditor’s limited assurance report on the Sustainability Statement ............................................. 197
Forward looking statements ................................................................................................................................. 200
IN BRIEF 3
Introduction to the ISS Global Group
An integral part of the ISS A/S Group
ISS Global A/S is indirectly, wholly owned by ISS
A/S, a leading, global provider of workplace and
facility service solutions, listed on Nasdaq Copen-
hagen. ISS Global A/S owns – directly or indirectly
– the ISS Group’s operating entities (together re-
ferred to as ISS, the Group or the ISS Global
Group). In addition, ISS Global A/S operates as the
ISS A/S Group’s internal bank and holds the major-
ity of its external funding. As part of its financing
function, ISS Global A/S has entered into a Euro
Medium Term (EMTN) Programme under which
notes have been issued and admitted to trading
on the Luxembourg Stock Exchange.
The ISS Global Group is an integral part of the ISS
A/S Group. Thus, the strategic direction, imple-
mentation and overall management is determined
by the Board of Directors of ISS A/S for the ISS A/S
Group as a whole, rather than specifically for the
ISS Global Group. Likewise, all operating, financing
and investing activities are managed for the ISS
A/S Group as a whole, rather than specifically for
the ISS Global Group.
Governance
The management team of the ISS Global Group
formally consists of the Board of Directors and Ex-
ecutive Management of ISS Global A/S registered
with the Danish Business Authority. Since ISS
Global A/S has no employees and no operating ac-
tivities independently of the ISS A/S Group, the ISS
Global Group relies on the management team of
ISS A/S as well as on certain operational, manage-
ment and administrative services being provided
by ISS World Services A/S, ISS Global A/S’s parent.
Impact on the Management review
Due to this Group structure, the sections “Our
market – attractive dynamics”, “OneISS strategy”,
“Business risks” (pp. 9-12), “Corporate governance”
(pp. 25-28) and “Sustainability statement” (pp. 29-
88) of the Management review are described in
the context of the ISS A/S Group.
Sustainability statement
The double materiality assessment (DMA) for the
ISS A/S Group covers the Group’s inherent expo-
sure to sustainability-related impacts, risks and
opportunities. None of the Group’s identified ma-
terial impacts, risks and opportunities are linked to
activities exclusively or predominantly performed
at the level of ISS A/S or ISS World Services A/S
and the impact on metrics and performance for
the Group from the activities at the isolated level
of ISS A/S or ISS World Services A/S is negligible.
Thus, DMA for the ISS Global Group is in all mate-
rial aspects the same as for the ISS A/S Group.
In addition, strategic direction and targets, includ-
ing in relation to sustainability matters, such as
people targets and net zero commitments, are set
for the ISS A/S Group as a whole with no separate
targets or commitments for ISS Global A/S or the
ISS Global Group. As an indirectly wholly owned
subsidiary of ISS A/S, ISS Global is subject to the
same governance principles and policies as appli-
cable to the ISS A/S Group both in terms of busi-
ness conduct, values and business ethics.
Due to this structure, the sustainability statement,
pp. 29-88, is described in the context of the ISS
A/S Group.
IN BRIEF 4
Five-year overview
For definitions, see p. 174.
IN BRIEF 5
Outlook
2026 Outlook
During 2025, ISS delivered robust organisati-
onal and commercial results, not least through
disciplined execution of our strategic initiatives.
We implemented a new commercial operating
model to drive future growth, established a
workforce management programme to drive
efficiencies, and successfully transitioned nine
countries to our finance shared service centre
in Poland. Overall, the direction is clear, and we
continue to drive the commercial momentum,
invest in our people and drive efficiency in ISS.
The outlook for 2026 assumes that macroeconomic
and geopolitical uncertainties remain elevated, at
the same time making ISS’s business model more
relevant than ever as we can support customers
when their needs change. We continue the
execution of our strategic priorities to support the
commercial growth agenda, enable further cost
efficiencies and ensure continued high focus on
driving shareholder value.
The outlook is excluding any effects of hyperinflation
(IAS 29).
The outlook should be read in conjunction with
Forward-looking statements, p. 200 and Business
risks, pp. 9–12. For Definitions, see p. 174.
Organic
growth
> 5%
(2025: 4.3%)
Organic growth is expected to be above 5% for 2026
driven by price increases across the Group to offset
cost inflation and protect operating margins. Fur-
thermore, we expect a higher growth quality from
both volume growth with existing customers as well
as net new contract wins. We have a solid exit rate
from 2025 and so far, the commercial investments
have paid off. We still see a healthy bid pipeline
across all geographies. Impact from projects and
above-base work is expected to contribute flattish to
growth.
Operating
margin
1)
> 5.5%
(2025: 5.7%)
Operating margin is expected to be above 5.5% as
we continue to invest in future growth opportunities.
Across the Group, we expect to see further opera-
tional improvements and efficiencies, including scale
benefits. Our focus is on increasing nominal operat-
ing profit before other items and thereby driving in-
creased shareholder value.
Free cash flow
> DKK 1.9 billion
(2025: DKK 2.1 billion)
The expectation for free cash flow is based on an un-
derlying free cash flow of above DKK 2.1 billion.
However, adjusted for DKK 0.2 billion in prepay-
ments for services not yet rendered and receivables
paid before due date, the reported free cash flow is
expected to be above DKK 1.9 billion for 2026. As-
suming payments withheld by Deutsche Telekom
(DTAG) are received in 2026, free cash flow is ex-
pected to be above DKK 2.5 billion, refer to p. 14 for
further on DTAG.
Other revenue impacts
Acquisitions and divestments, net
~
0.5%-point (positive)
Based on acquisitions and divestments completed
by 27 February 2026 (including in 2025).
Foreign exchange rates
~
2%-points (negative)
2)
Based on current exchange rates, excluding any ef-
fects of hyperinflation (IAS 29).
1)
Based on operating profit before other items
2)
The forecasted average FX rates for 2026 are calculated using the actual aver-
age FX rate for January 2026 and the average forward FX rates (as of 18 Febru-
ary 2026) for the remaining eleven months of 2026.
OUR BUSINESS 6
Our market – attractive dynamics
ISS operates in the global outsourced facility ser-
vices industry, a market valued at approximately
DKK 8 trillion. The market is highly fragmented
and, with an estimated 1% global market share,
we see significant potential for continued expan-
sion. In addition, the total facility services market
is estimated at approximately DKK 17 trillion,
providing further upside potential from the out-
sourcing of currently insourced volumes.
Fundamentally, market growth is driven by underlying
global GDP growth and supported by increasing out-
sourcing rates as customers seek to focus on their
core businesses. In addition to these fundamental
growth drivers, a number of trends and attractive dy-
namics in the market have emerged, which are im-
pacting customer demand and representing oppor-
tunity for ISS.
Macroeconomic uncertainty
Businesses are intensifying their focus on cost effi-
ciency to strengthen resilience in the face of unpre-
dictable economic conditions and potential head-
winds. This increases demand for partners who can
deliver transparent, standardised, and efficient solu-
tions at scale.
Labour shortages
Labour scarcity affects nearly all our geographies,
driven in part by ageing populations and demo-
graphic shifts. This trend is expected to persist, rein-
forcing the need for service providers to improve their
efficiency to enable service delivery with fewer re-
sources.
Shortages are also evident for highly skilled profes-
sions. As a result, companies are increasingly using
the workplace as a core component of their employee
value proposition to attract and retain talent.
Hybrid
work
An increasing number of companies are adopting re-
turn to office policies that define a minimum number
of days on-site. As employees return, organisations
are investing in workplaces that offer purpose, com-
munity, and a high-quality workplace experience.
Employee engagement and productivity
Employee engagement remains closely linked to or-
ganisational productivity. According to Gallup, global
engagement declined by 2%-points in 2024, a de-
crease estimated to cost the global economy USD 438
billion. This underscores the importance of work-
places that foster wellbeing, collaboration, and
productivity.
OUR BUSINESS 7
OneISS strategy
While our OneISS strategy and strategic direc-
tion remained unchanged, we updated our stra-
tegic priorities in December 2024 to unlock ISS’s
full potential.
As it has been for decades, our strategy and focus re-
main on growing Integrated Facility Services (IFS) and
single-service cleaning across our business to in-
crease market share and drive profitable growth.
Our 2024 strategy refresh incorporated the key les-
sons learned since the launch of the OneISS strategy
in 2020 and reflected the shifting trends in our market
driven by factors like geopolitical and macro-economic
uncertainty and labour market dynamics. As part of
the review, we conducted an in-depth assessment of
how evolving trends in our priority segments are re-
shaping customer goals, challenges and future needs.
Based on these insights we sharpened our strategic
priorities, updated our prioritised global segments
and introduced the new mission statement: We make
space for people and businesses to thrive. Overall, we
believe these updates position us more strongly to
play to our core strengths and capture a larger share
of the market.
Driving outcomes for our customers
To win share in the market and meet evolving cus-
tomer needs, our value proposition centres on deliv-
ering three critical outcomes:
•
Efficiency and standardisation – Optimising costs
while managing risks and compliance
•
Customer experience – Creating exceptional em-
ployee experiences
•
Sustainability – Supporting carbon-reduction tar-
gets and social progress
This value proposition resonates strongly with cus-
tomers seeking to actively use their workplaces to at-
tract and engage talent – an increasingly important
differentiator in knowledge-based industries. It also
aligns with customers’ growing focus on creating pro-
ductive workplaces that enable their people to per-
form at their best. These insights directly shaped our
selection of globally prioritised customer segments.
Our prioritised customer segments
We have prioritised four global segments where ISS
can best leverage its strengths, and our focus on
workplace experience creates the greatest value.
These segments comprise knowledge-based indus-
tries, where attracting and engaging talent is critical
to success:
•
Financial services
•
Professional services
•
Technology
•
Life sciences
To maximise growth across ISS’s full portfolio, coun-
tries may also pursue opportunities outside these
global segments, based on local capabilities, market
conditions and attractive business cases. Certain seg-
ments, such as healthcare, remain highly market spe-
cific shaped by national systems and policies, and are
therefore best managed locally.
This dual approach allows us to unlock scale synergies
and deepen expertise in our global priority segments,
while capturing additional growth opportunities
driven by competitive strengths in local markets.
OUR BUSINESS 8
Our strategic priorities
To strengthen the OneISS execution, succeed in our
prioritised customer segments and accelerate growth
and market share, we are driving three strategic priori-
ties supported by eight Group-led initiatives:
•
Customer centric growth
•
Leading frontline employer
•
Efficiency
In 2025, we mobilised our global and local teams
around these priorities, and initiated execution with
strong discipline and momentum. Implementation is
progressing according to plan, and though we still
have work ahead, our efforts are already delivering
tangible results. For updates on each priority, see be-
low.
OUR BUSINESS 9
Business risks
At ISS, we view risk management as a safe-
guard for protecting value as well as an ena-
bler for long-term value creation. Our ap-
proach is grounded in discipline and propor-
tionality, aiming at striking an appropriate bal-
ance between opportunity and risk.
We focus on managing the strategic risks that could
affect the achievement of our long-term objectives,
such as shifts in global market dynamics and evolv-
ing customer expectations, alongside the opera-
tional risks inherent in our day-to-day activities that
may impact business performance in the short to
medium term.
Refining our risk management framework
In 2025, we significantly enhanced our risk manage-
ment process, strengthening the top-down assess-
ment while also refining the bottom-up approach.
As a result, our enterprise risk management frame-
work is now more robust and more closely aligned
with our strategic priorities and initiatives.
By refining the scope, improving alignment between
Group and country input, and increasing senior
management involvement in our annual review pro-
cess, we have developed a more accurate and stra-
tegically relevant view of our key enterprise risks –
one that is clearer, more focused and more actiona-
ble.
We also improved our business continuity manage-
ment (BCM) framework by sharpening the focus on
our most critical business activities and simplifying
BCM processes to further enhance business resili-
ence.
Collectively, these enhancements have provided a
clearer understanding of our key risk areas and
brought our risks into stronger alignment with our
risk appetite and priorities.
Outcome of the 2025 annual review
We continue to enhance our risk management prac-
tices and invest in strengthening our control envi-
ronment. Through clearer, simplified policies and
standards, we are building a solid foundation
for delivering on our strategic objectives while main-
taining the right balance between risk and oppor-
tunity. Based on this refined process, our annual risk
review resulted in the updated list of top risks for
the Group, presented in the overview above, and
described in detail on the following pages.
In total, we identified nine top risks (2024: ten). Most
risks remain consistent with last year, reflecting the
overall stable risk profile of our enterprise. However,
our sharper focus has led to the introduction of two
new risks and the consolidation of others into
broader, more coherent descriptions. The key
changes in 2025 are:
•
Technical Services (NEW)
•
Commercial (NEW)
•
Emerging technology (removed – assessed to
be within appetite)
•
Data collection and analysis (incorporated into
“Commercial”)
•
Regulatory compliance (reallocated across
“Health & Safety”, “Technical Services” and “Peo-
ple”).
OUR BUSINESS 10
To support effective prioritisation, we also assessed
the exposure level of each risk, determining
whether it is currently assessed to be:
•
within our risk appetite (subject to close moni-
toring), or
•
outside our risk appetite (requiring active miti-
gation).
This distinction enables us to direct resources and
attention to the risk areas where action is most
needed.
OUR BUSINESS 11
OUR BUSINESS 12
00
Group results
In 2025, ISS continued to deliver broad-based
operational improvements – not least from the
disciplined execution of strategic priorities and
tight cost control. Successful implementation of
price increases, combined with underlying
volume growth, secured a solid organic growth.
As a result, we delivered our financial results in
line with guidance.
Revenue
Group revenue was DKK 84.7 billion, an increase of
1.1% compared with 2024. Organic growth was 4.3%,
the impact from acquisitions and divestments, net was
0.7%, whereas currency and other effects were nega-
tive 3.9%, including the negative impact of hyperinfla-
tion in Türkiye of 0.9%.
ISS continued to implement price increases across the
Group in line with contractual agreements to mitigate
the effects of wage increases and general cost infla-
tion. Price increases remained the primary driver of
organic growth, contributing with around 4%-points,
with approximately half of this stemming from Türkiye.
Volume growth contributed around 1%-point to or-
ganic growth driven by a combination of increased ac-
tivity levels at customer sites and expansion of con-
tracts with existing customers, mainly in Northern Eu-
rope and Asia & Pacific.
Net contract wins ended negative around 1%-point
but improved sequentially through the year, sup-
ported by significant contract start-ups in the latter
part of 2025, with DWP in the UK being the largest
contributor. The annualisation of Defra in the UK and
the Danish Building and Property Agency in Denmark
– both of which started in 2024 – also contributed
positively. However, these positive effects were more
than offset by contract losses and a number of delib-
erate exits during 2024, especially in Americas.
Revenue from projects and above-base work ac-
counted for 16% (2024: 16%) of Group revenue and
had a largely neutral impact on organic growth for the
Group. This neutral effect reflected increased demand
for refurbishment programmes and other above-base
work, especially in Central & Southern Europe and
Asia & Pacific, offset by negative growth in the Ameri-
cas due to a tough comparison against the significant
hurricane response and restoration work carried out
in the US in Q4 2024.
All regions, except the Americas, contributed to posi-
tive organic growth. Central & Southern Europe deliv-
ered the strongest growth being double-digit, driven
mainly by price increases in Türkiye and projects and
above-base work. Asia & Pacific benefited from solid
growth in Australia, Hong Kong and Singapore. In
Northern Europe, growth was largely driven by the an-
nualisation of contract start-ups in 2024, mainly Defra
in the UK and the Danish Building and Property
Agency in Denmark, as well as the DWP start-up in Q4
2025. In the Americas, growth was negative, reflecting
deliberate contract exits in 2024 and tough compari-
son against the significant hurricane response and
restoration work undertaken in the US in Q4 2024.
Operating profit before other items
Excluding the impact of hyperinflation in Türkiye (IAS
29), operating profit before other items amounted to
DKK 4,873 million, for an operating margin of 5.8%
(2024: 5.9%). The reported operating profit before
other items was DKK 4,805 million, corresponding to
an operating margin of 5.7% (2024: 5.8%).
The operating margin remained stable year-on-year,
supported by broad-based operational improvements
and efficiencies from disciplined execution of our stra-
tegic priorities and tight cost control, including lower
corporate costs. These benefits were offset, mainly by
the US, where margin was impacted by commercial in-
vestments, primarily in staff and infrastructure, to
strengthen the platform for future growth.
In the UK, operational and financial improvements
continued in 2025. However, despite this solid pro-
gress, the UK remained dilutive to the Group operat-
ing margin. Germany also remained dilutive to Group
margin. For the Deutsche Telekom contract, the arbi-
tration process initiated by ISS regarding certain con-
tractual disagreements progressed according to plan.
The final oral hearing in the arbitration proceedings
took place in mid July 2025. The parties await a ruling
by the Tribunal, and have, in parallel, engaged in dis-
cussions on a potential settlement, which aim at set-
tling disputed claims, creating clarity on contractual
positions going forward and further strengthening the
collaboration and partnership between ISS and
Deutsche Telekom. ISS expects a final outcome in first
half 2026. For further background please refer to the
box to the right.
Inflation rates generally declined in 2025 compared
with previous years. Combined with ISS’s well estab-
lished processes for implementing price increases in
line with contractual agreements, this ensured that
the operating margin remained largely unaffected.
From a regional perspective, Northern Europe deliv-
ered solid margin improvement, driven by broad-
based operational improvements, most notably in the
UK and Denmark. Central & Southern Europe gener-
ally showed solid performance, particularly in Switzer-
land and Spain. In Asia & Pacific, operational improve-
ments were offset by tough comparison against 2024,
which benefited from certain one-off income. In the
Americas, the margin decline reflected commercial in-
vestments, primarily in staffing and infrastructure, as
well as contract exits.
Other income and expenses, net
Other income and expenses, net was an expense of
DKK 118 million (2024: expense of DKK 151 million),
mainly due to a reassessment of the contingent con-
sideration related to the disposal of the 40% minority
stake in ISS Türkiye in 2021 as well as acquisition and
integration costs related to acquisitions completed in
2024 and 2025.
Operating profit
Operating profit was DKK 3,514 million (2024: DKK
3,538 million).
Finance income and costs, net
Finance costs, net amounted to DKK 581 million
(2024: DKK 359 million) including a monetary gain of
DKK 77 million relating to hyperinflation restatement
(IAS 29) in Türkiye (2024: DKK 86 million). Excluding
the impact of IAS 29, finance costs, net were DKK 658
million (2024: DKK 445 million). The increase was pri-
marily driven by a decline in interest income from
companies within the ISS Group, as receivables fell
sharply following the dividend distribution in April
2025.
Income tax
Income tax amounted to DKK 621 million (2024: DKK
573 million), resulting in an effective tax rate of 21.2%
(2024: 18.0%). The effective tax rate was favourably in-
fluenced by interest limitation rules, prior year adjust-
ments and release of valuation allowances on de-
ferred tax assets mainly in Norway, whereas hyperin-
flation adjustments (IAS 29) in Türkiye impacted nega-
tively.
Net profit from discontinued operations
With the divestment of ISS France being completed in
April 2024, ISS had no businesses classified as discon-
tinued operations in 2025. Consequently, net profit
from discontinued operations was DKK 0 million
(2024: loss of DKK 59 million).
Net
profit
Net profit was DKK 2,312 million (2024: DKK 2,547 mil-
lion).
Commercial development
The customer-centric growth initiative acceler-
ated in 2025, driven by a clear focus on se-
lected segments and tailored offerings de-
signed to meet specific customer needs. This
approach has generated visible momentum to-
wards the end of the year, evidenced by ISS se-
curing major new contracts, expanding several
existing partnerships and maintaining high re-
tention rates.
In 2025, ISS strengthened its customer portfolio
with a series of significant new partnerships across
key markets. ISS won ten new contracts, including
European contracts with Danish-based companies
like COWI, covering 11 countries and 44 offices, and
Velux covering 12 countries in Northern, Central &
Southern Europe. ISS also entered a new partner-
ship with a Public Administration Customer in the
UK, and will be delivering a broad range of inte-
grated facility services and supporting capital pro-
jects. In the Asia & Pacific region, ISS was awarded a
six-year contract with the Australian Department of
Defence, providing integrated facility services across
85 sites and introducing digital, operational and so-
cially sustainable innovations. Together, these wins
demonstrate strong commercial progress sup-
ported by scale, capability and customer centric so-
lutions and build a solid starting point for 2026.
Furthermore, ISS extended and expanded several
large key accounts across the Group, especially with
high concentration of activity in Asia & Pacific. The
partnership with key Australian customer Brisbane
Airport was extended and expanded, now covering
enhanced aviation security and integrated services
across domestic and international terminals. ISS
also extended its long-standing partnership with a
Public Administration Customer in Australia, a con-
tract valued at approximately DKK 800 million annu-
ally, continuing service delivery across schools, col-
leges and government facilities.
Through targeted local market initiatives, ISS won
and extended a range of mid-sized and smaller con-
tracts, each aligned to specific local capabilities and
market needs. While the contract loss in the UK
Healthcare segment and two scope reductions in
the UK and Europe impacted parts of the portfolio,
disciplined retention efforts contributed to an im-
proved customer retention rate in 2025 of 94%
(2024: 93%). The combination of local growth, stra-
tegic wins and strong retention supported the
Group’s overall commercial momentum.
Contract
maturity
The majority of our key account contracts have initial
terms of three to five years, which means a signifi-
cant share of revenue is consequently up for re-
newal every year.
In 2025, revenue from large key accounts was DKK
24.0 billion, representing 28% (2024: 33%) of Group
revenue. Going into 2026, contract revenue of DKK
5.0 billion (6% of Group revenue) is up for renewal
(adjusted for renewals up until 19 February 2026).
Cash generation and free cash flow
Free cash flow amounted to DKK 2,083 million
(2024: DKK 1,916 million), an increase of DKK
167 million, mainly driven by reduced payments
related to provisions, and lower investments in
right-of-use assets.
Cash flow from operating activities
Cash flow from operating activities amounted to DKK
3,312 million (2024: DKK 3,527 million), a decrease of
DKK 215 million compared to last year, mainly driven
by reduced payments related to provisions being
partly offset by slightly higher outflow from changes
in working capital and higher tax payments.
Changes in working capital was an outflow of DKK
805 million (2024: outflow DKK 408 million) mainly
stemming from trade receivables due to revenue
growth. Robust collection efforts and generally disci-
plined management of working capital ensured that
the net outflow was only slightly above last year’s
level. Utilisation of factoring amounted to DKK 1.59
billion (2024: DKK 1.53 billion), reflecting higher reve-
nue from key account customers, whose invoices, in
line with Group policy, are eligible for factoring.
Changes in provisions, pensions and similar obliga-
tions was an outflow of DKK 64 million (2024: outflow
of DKK 377 million), primarily due to ordinary pay-
ments related to pensions and similar obligations, re-
structuring projects initiated in prior years and pay-
ments related to certain legal claims and disputes.
Income tax paid was DKK 504 million (2024: DKK 424
million) equalling a cash tax rate of 17.2% (2024:
13.3%). The increase compared to 2024 was mainly
related to timing of payments, including for prior
year adjustments.
Cash flow from investing activities
Cash flow from investing activities was an outflow of
DKK 1,076 million (2024: DKK 1,412 million).
Acquisitions was an outflow of DKK 341 million (2024:
DKK 510 million), primarily related to the acquisitions
of Garbialdi in Spain and Franye Group in Austria.
Divestments was an outflow of DKK 90 million (2024:
outflow DKK 350 million) due to partial payment of
the deferred consideration for the divestment of ISS
France. A portion of the consideration is deferred
and will be paid over up to three years following the
divestment in April 2024.
Investments in intangible assets, property and equip-
ment, net, totalled DKK 545 million (2024: DKK 498
million), corresponding to 0.6% (2024: 0.6%) of Group
revenue. The increase was primarily due to equip-
ment purchases and refurbishment in relation to new
customer contracts, mainly in the UK, which was par-
tially offset by reduced software investments in line
with the refocused IT strategy for the Group.
Cash flow from financing activities
Cash flow from financing activities was an outflow of
DKK 7,069 million (2024: outflow of DKK 1,329 mil-
lion).
Proceeds from Euro-Commercial Paper (ECP) pro-
gramme, net was an inflow of DKK 403 million (2024:
DKK 0 million). The programme was established in
May 2025 to enhance financial flexibility and diversify
the Group’s funding structure, see Capital structure,
p. 19.
Repayment of bonds of DKK 3,732 million (2024: DKK
2,237 million) related to the repayment of the EUR
500 million EMTN bonds maturing in July 2025.
Repayment of lease liabilities was DKK 881 million
(2024: DKK 951 million), slightly lower than last year
and in line with the reduction in lease additions.
Dividends paid to ISS World Services A/S amounted
to DKK 5,600 million (2024: DKK 0 million), whereas
cash inflow related to receivables/debt to companies
within the ISS Group was DKK 2,813 million (2024:
DKK 1,578 million (outflow).
Capital structure
The ISS Global Group is indirectly wholly owned
by ISS A/S and is therefore part of the ISS A/S
Group. Group Treasury manages financing ac-
tivities and capital structure centrally for the ISS
A/S Group as a whole. The ISS Global Group’s fi-
nancing activities and capital structure are not
assessed independently of the ISS A/S Group.
On 27 May 2025, ISS established a Euro-Commercial
Paper (ECP) programme to enhance financial flexibil-
ity and diversify the Group’s funding structure, ena-
bling more efficient and timely access to short-term
financing. The programme allows for the issuance of
unsecured notes up to a maximum principal amount
of EUR 900 million. S&P Global has assigned an A-2
short-term credit rating to the ECP Programme.
Proceeds from the ECP programme, in combination
with cash, were used for repayment of the EUR 500
million of the Group’s EMTN bonds that matured in
July 2025.
An additional EUR 500 million of EMTN bonds will
mature in June 2026. The Group is currently evaluat-
ing different financing options to be determined dur-
ing H1 2026. Other than that, the Group had no ma-
terial short-term debt maturities at 31 December
2025.
Net debt
At 31 December 2025, net debt amounted to DKK
10.6 billion (2024: DKK 5.8 billion), an increase of DKK
4.8 billion primarily attributable to dividends paid to
ISS World Services A/S of DKK 5,600 million.
Equity
At 31 December 2025, equity was DKK 6,094 million
(2024: DKK 10,030 million), equivalent to an equity
ratio of 14.4% (2024: 20.2%). The decrease mainly re-
lated to dividends paid to ISS World Services A/S of
DKK 5,600 million as well as FX adjustments of for-
eign entities of DKK 1,003 million, partly offset by net
profit of DKK 2,312 million.
For an overview of the development in other compre-
hensive income in 2025, see 4.1.6, Other compre-
hensive income.
At the annual general meeting to be held on 16 April
2026, the Board of Directors will propose a dividend
to ISS World Services A/S for 2025 of DKK 2,800 mil-
lion (2024: DKK 5,600 million).
PERFORMANCE 20
Northern Europe
The market
ISS holds a market-leading position across the re-
gion of generally mature and competitive markets
with a relatively high outsourcing rate and IFS mar-
ket maturity. The largest country in the region is the
UK, contributing around 37% of revenue.
Key customer segments include Office-based cus-
tomers in Financial Services, Professional Services
and Public Administration; Production-based cus-
tomers in Industry & Manufacturing; and
Healthcare.
Commercial update
Our strategic focus on IFS and key account custom-
ers secured both new contract wins, extensions and
expansions in 2025. As such, ISS won four significant
new contracts with large key account customers, in-
cluding the Danish-based Velux, COWI and a Public
Administration Customer in the UK, extended sev-
eral large key account contracts, and the commercial
pipeline across the region remained attractive.
The majority of large key account contracts sched-
uled to expire in 2025 were successfully renewed,
except one reduction and one loss in the UK, which
led to a retention rate of 93% (2024: 94%).
Financial update
Revenue increased to DKK 32,286 million in 2025
(2024: DKK 31,328 million). Organic growth was 2.8%
and currency effects were net neutral.
Organic growth was mainly driven by price increases
implemented across the region and positive contri-
bution from significant contract start-ups in the lat-
ter part of 2025, with DWP being the largest contrib-
utor. The annualisation of Defra in the UK and the
Danish Building and Property Agency in Denmark –
both of which started in 2024 – also contributed
positively. This was partially offset by smaller con-
tracts lost or exited.
Volume growth was negatively impacted by the tim-
ing of contracts wins occurring mainly in a second
half of the year and contract losses taking place in
the first months of the year.
Revenue from projects and above-base work ac-
counted for 19% (2024: 20%) of revenue for the re-
gion and had a largely neutral impact on organic
growth.
All countries, except Norway, delivered positive or-
ganic growth with the UK, Finland and Denmark be-
ing the most significant contributors. In the UK and
Denmark, growth was largely driven by annualisa-
tion effects from Defra and the Danish Building and
Property Agency, respectively, whereas growth in
Finland resulted from a combination of volume
growth and demand for projects and above-base
work.
Operating profit before other items was DKK 1,952
million (2024: DKK 1,803 million), for an operating
margin of 6.0% (2024: 5.8%). Margin improvements
were broad-based, most notably in the UK and Den-
mark, mainly due to continued operational efficien-
cies and the implementation of group-wide pro-
grammes. Despite the improvement, the UK contin-
ued to be dilutive to Group operating margin.
PERFORMANCE 21
Central & Southern
Europe
The market
Central and Southern Europe comprises several key
markets, where ISS holds leading market positions, in-
cluding Switzerland, Spain, Austria and Türkiye. Most
of the markets are developed, but with significant dif-
ferences in IFS market maturity and macroeconomic
environment.
Key customer segments include Office-based custom-
ers in Information & Communication and Financial
Services; and Production-based customers in Industry
& Manufacturing and Pharmaceuticals; and
Healthcare.
Commercial update
The commercial development in 2025 was solid, with
the region securing four new contracts with large key
account customers: one in the healthcare segment in
Austria and three within the financial services seg-
ment. These wins underscore our focused approach
and demonstrates our success in targeting strategic
segments.
From a retention perspective, 2025 was also an im-
portant year, where the region successfully extended
and renewed our partnerships with some of the larg-
est customers in the region leading to the Group’s
highest retention rate of 96% (2024: 95%).
M&A update
In 2025, two bolt-on acquisitions were completed to
further strengthen our market position. The acquisi-
tion of Garbialdi in Spain has reinforced our country-
wide footprint adding scale, predominately within
cleaning in the northern part of the country, contrib-
uting around 0.7% to Group annual revenue. In Aus-
tria, the acquisition of Franye Group further strength-
ened our platform, predominantly within Technical
Services, and our presence in the eastern part of the
country, adding around 0.2% to Group annual reve-
nue. Both acquisitions have strong strategic fits to our
existing business and will enable further value crea-
tion from by strengthening our service offering as well
as through operational and back-office synergies. In-
tegration is progressing as planned with benefits ma-
terialising in line with expectations.
Financial update
Revenue increased to DKK 29,307 million in 2025
(2024: DKK 27,159 million) excluding effects of IAS 29.
Organic growth was 10.2% most significantly driven by
price increases in Türkiye. Acquisitions and divest-
ments, net increased revenue by 2% related to acqui-
sitions in Spain and Austria, whereas currency effects
reduced revenue by 4%.
Although the vast majority of countries contributed to
the strong organic growth, the largest contributor
continued to be Türkiye, due to price increases being
successfully passed on to customers to mitigate the
high level of wage inflation. Like in previous years,
minimum wage increases were imposed in the begin-
ning of the year.
Revenue from projects and above-base work grew or-
ganically by 15% driven by high demand for refurbish-
ment projects.
Operating profit before other items amounted to DKK
1,904 million (2024: DKK 1,855 million) for an operat-
ing margin of 6.5% (2024: 6.6%). Excluding the impact
of hyperinflation (IAS 29), operating profit before
other items was DKK 1,972 million (2024: DKK 1,867
million) corresponding to an operating margin of 6.7%
(2024: 6.9%).
The majority of countries continued to enhance Group
margin, with particularly strong performances in Swit-
zerland and Spain. However, these positives were
more than offset by Germany, which remained dilutive
to Group margin.
PERFORMANCE 22
For the Deutsche Telekom contract, the arbitration
process initiated by ISS regarding certain contractual
disagreements progressed according to plan. The fi-
nal oral hearing in the arbitration proceedings took
place in mid July 2025. The parties await a ruling by
the Tribunal, and have, in parallel, engaged in discus-
sions on a potential settlement, which aim at settling
disputed claims, creating clarity on contractual posi-
tions going forward and further strengthening the col-
laboration and partnership between ISS and Deutsche
Telekom. ISS expects a final outcome in first half 2026,
see p. 14 for further information.
PERFORMANCE 23
Asia & Pacific
The market
The region comprises a mix of developed markets, in-
cluding Australia & New Zealand, Hong Kong and Sin-
gapore, as well as developing markets such as Indo-
nesia, India and China. ISS has a strong presence in
the region and holds a market-leading position in
several countries.
Key customer segments include Office-based cus-
tomers in Financial Services and Public Administra-
tion; Production-based customers in Industry & Man-
ufacturing; Healthcare, Aviation, and Energy and Re-
sources.
Commercial update
In 2025, ISS won two new contracts in India with a
large key account customer and in Australia with the
Australian department of Defence and extended and
expanded several large key account contracts. Espe-
cially Australia, Singapore and India were successful
in expansions in 2025 and the commercial pipeline
across the region remained solid.
The retention rate was 95% (2024: 95%) as we suc-
cessfully retained and, in many instances were able
to further expand the scope of these retained con-
tracts across local prioritised segments like
Healthcare, Energy and Resources as well as Office-
based customers within Business Service & IT.
Financial update
Revenue increased to DKK 14,572 million in 2025
(2024: DKK 14,403 million). Organic growth was 7.1%,
whereas currency effects reduced revenue by 6%.
Organic growth was driven by price increases imple-
mented across the region and volume growth from
increased activity levels at customer sites, which was
partly offset by effects from deliberate contract exits
in 2024.
Portfolio revenue grew organically by 7% while pro-
jects and above-base work grew by 9% organically,
mainly resulting from demand for refurbishment pro-
jects.
Most countries contributed positively to organic
growth. In Australia, New Zealand, Hong Kong, Singa-
pore and India growth was supported by a combina-
tion of new and existing customers expanding their
relationship with us. On the other hand, growth in
China and Indonesia was negative, primarily due de-
liberate contract exits in 2024.
Operating profit before other items increased to DKK
1,051 million (2024: DKK 1,032 million), correspond-
ing to an operating margin of 7.2% (2024: 7.2%). This
reflected operational improvements and efficiencies
being executed across the region, which was partially
offset by tough comparison against 2024, which ben-
efitted from certain one-off income related to em-
ployee tax refunds in Australia and government
grants in Singapore.
PERFORMANCE 24
Americas
The market
The Americas consists of the mature North American
market as well as Mexico and Chile. North America is
the world’s largest FM market, accounting for around
30% of the global outsourced FM market. Compared
to other regions, food services account for a larger
share of revenue, whereas healthcare customers ac-
count for a lower share. Given our limited market
share, North America represents a significant oppor-
tunity for growth.
Key customer segments include Office-based cus-
tomers in Technology and Financial Services, as well
as Production-based customers in Industry & Manu-
facturing and Life Sciences.
Commercial update
During the second half of 2025, Americas won a few
new mid-sized contracts in the US and Mexico, in ad-
dition to securing a significant contract extension
and a smaller expansion with a global technology
company in North America. This compensated for
losses of some mid-sized contracts in the US and
Chile and as a result, the retention rate increased to
90% (2024: 85%).
The commercial development in 2025 was not satis-
factory. In response, ISS is investing – and continues
to invest – commercially to strengthen the founda-
tion for future growth, primarily in staff and infra-
structure.
Financial update
Revenue decreased to DKK 7,734 million in 2025
(2024: DKK 9,407 million). Organic growth was nega-
tive 14.0% and currency effects reduced revenue by
4.0%.
The negative organic growth was primarily driven by
annualisation effects from deliberate contract exits
and losses in 2024 as well as tough comparison from
2024, which benefitted from the significant hurricane
response and restoration work performed by the US
in Q4 2024. This was only partly offset by price in-
creases implemented across the region. From a
country perspective, all countries reported negative
organic growth.
Revenue from projects and above-base work de-
clined organically by 45.5% and accounted for 11%
(2024: 17%) of revenue in the region. Strong demand
for additional services in Mexico contributed posi-
tively, while activity levels in the US normalised after
the exceptional hurricane response and restoration
work in Q4 2024.
Operating profit before other items was DKK 298 mil-
lion (2024: DKK 547 million), corresponding to an op-
erating margin of 3.9% (2024: 5.8%). The margin de-
crease mainly resulted from commercial investments,
primarily in staffing and infrastructure, as well as con-
tract exits.
GOVERNANCE 25
Corporate governance
Transparency, constructive stakeholder dia-
logue, sound decision-making processes and
controls are key aspects of our corporate gov-
ernance for the benefit of ISS and our stake-
holders.
The management team of the Group formally con-
sists of the Board of Directors and the Executive
Management of ISS Global A/S registered with the
Danish Business Authority. Since ISS Global A/S has
no operating activities of its own, the Group relies
on the management team of ISS A/S, the ultimate
parent company in Denmark. As a subsidiary of ISS
A/S, ISS Global A/S is subject to the same corporate
governance policies applicable in ISS A/S. Corporate
governance of the ISS Global Group is therefore
built on corporate governance of the ISS A/S Group,
including the management team, and descriptions
in this chapter should be seen in this context.
Framework
The Board of Directors (the Board) continuously re-
views and develops the Group’s corporate govern-
ance framework and policies in response to the
Group’s strategic development, activities, business
environment, corporate governance recommenda-
tions and statutory requirements.
Management
Management powers are distributed between our
Board and our Executive Group Management Board
(the EGMB). No person serves as a member of both
corporate bodies. Our EGMB carries out the day-to-
day management, while our Board supervises the
work of our EGMB and is responsible for the overall
management and strategic direction. The members
of the EGMB are the Group CEO and the Group
CFO. Together, they form the management regis-
tered with the Danish Business Authority. The
Group has a wider Executive Group Management
(the EGM), whose members are three Corporate
Senior Officers in addition to the EGMB.
In the review of our governance structure on p. 28,
we have outlined the primary responsibilities of the
Board and the EGM as well as 2025 activity by
Board committees.
Board composition
Board members elected by the general meeting
stand for election each year. Employee representa-
tives are elected on the basis of a voluntary ar-
rangement regarding Group representation for em-
ployees of ISS World Services A/S as further de-
scribed in the Articles of Association. Employee rep-
resentatives serve for terms of four years.
Board competencies and diversity, ISS A/S
The Board is responsible for annually determining
the appropriate qualifications, experience and com-
petencies required of the members of the Board in
order for the Board to best perform their tasks, tak-
ing into account ISS’ needs and the existing compo-
sition of these boards. Nomination of Board candi-
dates to be submitted to the general meeting is
prepared in light hereof.
When considering qualifications, experience and
competencies of the Board candidates, the Board
will (based on a recommendation from the Nomina-
tion Committee) consider the following factors in
addition to such other factors that the Board may
deem relevant; i) experience and expertise; ii) diver-
sity of gender, age and nationalities as well as in
broader terms; and iii) personal characteristics
matching ISS’s values and leadership principles.
The competencies for each board member are an-
nually reviewed, including skills and expertise within
our sustainability-related material impacts, risks and
opportunities. Expertise within business conduct is
included in the special competence identified as
Corporate responsibility & sustainability. (GOV-1
§23a, b.).
Board bios of ISS A/S, including special competen-
cies, are available here:
Board of Directors - ISS World
GOVERNANCE 26
The Board has adopted “Competencies and Diver-
sity policy for the Board of Directors and other man-
agement levels of ISS A/S”, which is available here:
ISS-AS-Compentencies-and-Diversity-Policy.pdf
The gender composition of the Board of Directors
of ISS A/S is assessed in accordance with the Danish
Gender Balance Act. The current gender distribu-
tion on the Board of Directors of ISS A/S is consid-
ered equal according to the Danish Gender Balance
Act, both with respect to members elected by the
general meeting and employee representatives, as-
sessed separately. The Board of Directors of ISS A/S
aims to maintain an equal gender representation
among the members of the Board of Directors in
accordance with the Danish Gender Balance Act.
The current relevant other management levels of
ISS A/S comprise fewer than three individuals and
are accordingly considered to have an equal gender
distribution. Consequently, ISS A/S has not adopted
company-specific targets or a separate policy pro-
moting gender diversity at other management lev-
els.
In terms of nationalities, 50% of the Board mem-
bers were Danish, 12.5% Swedish, 12.5% British,
12.5% Swiss and 12.5% were American.
Board competencies and diversity, ISS Global A/S
The Board of Directors (the Board) of ISS Global A/S
is responsible for annually determining the appro-
priate qualifications, experience and competencies
required of the Board and the Executive Manage-
ment of ISS Global A/S in order for the Board and
the Executive Management to best perform their
tasks, taking into account ISS Global A/S’s needs
and the existing composition of these boards.
The Board and the Executive Management recog-
nise the importance of promoting diversity and con-
sider both competencies and diversity in respect of
Board and Executive Management nominations ac-
cording to which we are committed to selecting the
best candidate.
The management team of ISS Global A/S consists of
the Executive Management, comprising one mem-
ber employed by ISS World Services A/S (the parent
of ISS Global A/S) and the Board, whose members
are employed by either ISS A/S or ISS World Ser-
vices A/S. As ISS Global A/S has no employees, the
company has not implemented separate policies.
Board evaluation
In 2025, the board evaluation was conducted as a
self-assessment. The self-assessment included in-
put of eleven board members and the Group CEO
and CFO, based on an online questionnaire, evaluat-
ing the strategy development and implementation;
risk awareness, monitoring and reporting; coopera-
tion with and evaluation process of CEO and execu-
tive management; board composition and dynam-
ics; on- and off-boarding; meeting structure and ef-
fectiveness; contribution of committees and Deputy
Chair; evaluation of the Chair; and evaluation of the
contribution of each board member. (GOV-1 §23 /
§23 (a)).
The results of the self-assessment were reviewed by
the Nomination Committee and discussed at a
Board meeting in December 2025. The individual
member’s contribution was subsequently reviewed
as part of individual meetings held between the
Chair and each member.
The outcome of the 2025 Board evaluation was a
continued high level of performance and the Board
was found to achieve its mandate, fulfil its responsi-
bilities, and provide value. Improvement was espe-
cially recognised within strategy development and
implementation, which had also been a focus area
for the year.
The evaluation identified a few focus areas to
strengthen the Board’s performance and value con-
tribution further during 2026: i) enhanced focus on
talents and development of the succession bench
for key executives within the organisation, ii) contin-
ued focus on industry trends and competitor activ-
ity from a strategic perspective and iii) renewed fo-
cus on benefits of utilising AI.
For details, also see response to recommendation
3.5.1 of the 2025 Statutory report on Corporate
Governance which is available here:
Corporate-governance-report-2025.pdf
GOVERNANCE 27
GOVERNANCE 28
In brief
Our business
Performance
General
Social
Environment
Governance
Other
Governance
Sustainability
statement
Financial
statements
29
Sustainability
statement
SUSTAINABILITY
AT
ISS
People powering
sustainable
progress
Sustainable action is not only the right thing to do – it is our
license to operate and the foundation for our long-term
business success.
As a global company with more than 325,000 employees and over 40,000
customers across 57 countries, ISS has a profound impact on people,
societies, and the environment.
We are committed to embracing this responsibility and contributing to
solutions for some of the world’s most pressing and escalating challenges.
Through ambitious sustainability initiatives within our Environmental,
Social, and Governance (ESG) framework, we strive to drive meaningful
change and create a positive impact for people and the planet – both
within our own operations and in close collaboration with our customers,
partners, and suppliers.
However, advancing sustainable progress is more than a moral obligation.
Generally there has been a shift away from moral and all ranging ambition
to increased focus on sustainable business impact. Expectations have
evolved: all stakeholders now expect companies not only talk about
their positive impact on people, society and the planet, but also to
demonstrate it through credible action and measurable progress. This
is why sustainability at ISS is embedded in our daily business operations
as well as our strategic direction and execution – supporting sustained
business success.
Social sustainability as
our key differentiator
With ISS’s 125-year legacy as a people company, social sustainability has
always been part of our DNA. As many roles in the service industry do not
require extensive prior qualifications, a significant share of ISS’s workforce
includes people who may otherwise struggle to access the labour market.
By providing a sustainable income and development opportunities for our
people, we are uniquely positioned to enhance social mobility – and to
create meaningful social impact.
Being a people company also comes with a responsibility. Our business
is built on a foundation of equity, inclusion, fairness, and respect for all
individuals. We aim to act as a social catalyst – making a real difference for
our employees, our customers, and the communities and societies we serve.
This also shapes how we prioritise sustainability. Our own climate footprint
is relatively low – we do not produce or transport goods – but our social
impact is significant. Our people are our greatest asset, and through them
we can drive real change. That is why we focus our sustainability efforts
where they are most material to our business and where we can make the
greatest difference to people and societies at large.
From a competitive perspective, our people focus is also our key
advantage. Because we self-deliver the majority of our services worldwide,
we maintain a unique foundation for strong governance, compliance, and
accountability. Additionally, our highly diverse workforce, brings together a
wide range of backgrounds, skills, and perspectives. This diversity not only
strengthens ISS internally but also enables us to support our customers in
advancing their diversity and inclusion agendas and in creating social value
in local communities.
At ISS, everything starts and ends with our people. Through them, we
will continue to deliver sustainable growth and create lasting impact for
people, society, and the environment.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
General
Sustainability at ISS
Sustainability strategy
Business model and value chain
Impacts, risks and opportunities
Sustainability governance
Double materiality assessment (DMA)
Stakeholder engagement
Basis of preparation
SUSTAINABILITY
STRATEGY
Prioritising our
sustainability
efforts
Sustainability is embedded in our strategy and business practices and as
such the vast majority of the Group’s sustainability activities are performed
as an integral part of how we operate on a daily basis, whether delivering
services at a customer site or performing supporting activities in our local
or global headquarters.
While we take full responsibility for managing and working with all our
material topics, we believe that some have a greater potential to create
positive impacts for people, societies and the planet or to be a commercial
differentiator for us in our market. For these essential topics we have
established commitments or targets in place, see box to the right.
To ensure accountability key sustainability targets are also linked to
executive remuneration through the Group’s short-term incentive
programme. Read more in our 2025 Remuneration Report.
Each material topic is governed through structured governance processes
embedded in our sustainability governance framework, see more on p. 36.
Our commitments
Increasing
social
mobility
Living
wage
We pledge working together with policy makers,
our customers and suppliers to move pay levels
in our industry to living wage levels
Recognised
qualifications
We commit to giving 350,000 placemakers or their family
members a recognised qualification by end of 2030
Gender
balance
We commit to a gender balance target of 40% women
in corporate leadership teams
Health & Safety
Zero fatalities and serious injuries ambition
Reducing our CO
2
emissions
Scope
1
and
2
Scope
3
Our targets
No
committed
target
350,000
by the end of 2030
40%
by the end of 2026
No
committed
target
Net zero by 2030
Net
zero
by
2040
Governance
Human
Rights
Statement
Our fundamental commitment to respecting and promoting human rights
Corruption
and
bribery
Zero tolerance approach
No committed targets
No
committed
targets
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
BUSINESS MODEL AND VALUE CHAIN
Value chain and
material topics
Our
value
chain
and
material
topics
We are a global provider of workplace and facility services. Our core service
portfolio comprises cleaning, food, technical and workplace services, which
we provide to businesses and public customers, either as integrated facility
services or as stand-alone cleaning services.
Our strategic customer segments are Office-based (Financial Services,
Professional Services and Technology), Production-based (Life Sciences,
Industry & Manufacturing and Food & Beverage) and Healthcare as well
as certain local customer segments depending on market profile, local
capabilities and attractiveness.
Like the rest of our industry, our business is characterised by being people-
intensive and asset-light – relying less on physical assets and products for
our service delivery. We operate with a minimal number of facilities, used
primarily for support staff, while our service-performing placemakers
deliver services directly at our customers’ sites. As a result, our climate
footprint remains substantially lower than that of many other industries.
With a few exceptions, our service delivery typically does not require high
pre-existing skill levels positioning us an attractive employer for individuals
from unskilled or lower-skilled backgrounds.
These fundamental industry and business characteristics – combined with
our strategic choice to self-deliver our services rather than subcontracting
– shape our operations and value chain. Furthermore, they are reflected
in our main impacts, risks and opportunities (IROs), which mainly relate to
people – both in our own workforce and in our value chain. An overview of
our material topics is provided on p. 34.
The main features and IROs of our operations and value chain, including
upstream and downstream activities, are described in the following and
complemented by the illustration on p. 35.
Own
operations
We operate an asset-light business model, with our primary resource being
our placemakers. As part of our strategic decision to primarily self-deliver
our core services, our operations are built around our placemakers, who
deliver our services directly to our more than 40,000 customers at their
sites. We believe that having a direct employment relationship with our
workforce is a culture driver that enhances service performance and at the
same time supports our ability to increase our positive people and societal
impact and minimise potential negative impacts.
We employ around 325,000 people across the globe in a diverse mix of
nationalities, age groups and individual backgrounds and circumstances.
Approximately 93% of our total workforce are service performing placemakers.
With few exceptions, these positions only require skills that can be achieved
through on-the-job training and will therefore be attractive for first time
job market entrants or persons with less secure job market access. By
offering opportunities for personal and professional development as well
as adequate wages, our business creates significant positive impact – both
for our people and their families, as well as for social mobility within the
communities where we operate. As less skilled workforce groups on average
belong to more vulnerable groups of people, it also means that our people
are at greater risk of exploitation with therefrom following negative impacts.
As such this employee category is generally the most exposed to
our material impacts from occupational Health & Safety, labour and
human rights, including adequate wages and non-discrimination, equal
opportunities and equal pay, as well as data privacy.
While our people impacts are broadly consistent across geographies,
there are substantial country-specific differences that have been
explicitly incorporated into the IRO identification. These variations stem
from distinct local factors such as social welfare systems, regulatory
environments, and cultural contexts, which significantly influence the
intensity of our impacts.
Employees
– by employee type
Placemakers
7% Support staff
– by region
19% Northern Europe
34% Central & Southern Europe
39%
Asia & Pacific
8% Americas
0% Other
– by region
38% Northern Europe
35% Central & Southern Europe
17%
Asia & Pacific
9% Americas
1% Other
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Upstream
value
chain
With around 84% of our services being self-delivered, our operations revolve
around our own workforce, which is also where the majority of our impacts
reside. Yet we still rely on a robust supply chain for goods and services
associated with our service performance and on subcontractors, mainly for
delivery of services outside our core service portfolio.
Our supply chain and upstream value chain can broadly be divided into
two categories:
Downstream
value
chain
Our downstream value chain encompasses our customers and through
them their employees as our end-users.
We primarily bring value to our customers through on-site staff that
interact with end-users at customer sites on a continuous basis. This
requires a certain volume of customer activities, and our target customers
are therefore medium to large size organisations, where on-site presence
is a value differentiator, which is the basis for our key account strategy.
Our own workforce
In line with our self-delivery strategy, the majority of our own workforce is
directly employed by us (own employees), though we also rely on non-
employees to a limited extent.
Own employees consist of service performing placemakers (93%)
and support staff (7%). The majority of our employees are engaged on
permanent or full-time basis, whereas a limited number of employees
are employed on contracts with a non-guaranteed numbers of working
hours. For details on employees by region, see 1, Characteristics of our
employees, p. 58.
Non-employees In case of absence of our own employees, we strive
to reallocate resources or tasks to the largest extent possible without
compromising customer expectations and requirements. We do, however,
rely on temporary workers via temp agencies or similar mainly for short-
term support such as holiday and other absence cover, event or transition
support. Self-employed consultants are generally engaged only as support
staff as part of our corporate and management activities, but not to any
significant extent. At 31 December 2025, non-employees corresponded to
less than 4% of our own workforce.
• Suppliers of products – used in our service performance
• Subcontractors – third parties delivering services, typically of the same or
similar nature as ours
Our main supply categories are cleaning equipment and detergents,
washroom articles, food and beverages, uniforms and vehicles. Our
thousands of supplier relationships range from large global partnerships
with multinational enterprises to small-scale local businesses. We generally
have access to a diverse supply chain and not dependent on any single
monopolistic supply chain members.
Subcontractors are mainly engaged for delivery of services outside of
our core service portfolio, such as pest control, and lift and escalator
maintenance. In certain local markets, where we lack self-delivery
capabilities, we also – to a limited extent – engage with subcontractors for
performance of services within our own core service portfolio.
Our subcontractors – being colleagues in the facility services industry – are
exposed to similar impacts, risks and opportunities as our own workforce.
This materialises in the material impacts identified for our subcontractors
in relation to working conditions, particularly occupational health and
safety, which are driven by many of the same factors that apply to our
own operations.
On the other hand, workers in the traditional supply chain are exposed
to the typical impacts associated with their respective industries and
geographies. Although we have not identified child labour or forced labour
as actual impact areas, we recognise its generic character within our supply
chain and both topics are assessed as material. The latest ILO reports
identified child labour as predominantly present in agriculture, whereas
forced labour is mostly present within the industry and service sectors.
Our key global customer segments include Financial Services, Professional
Services, Technology, and Life Sciences, while also engaging in locally relevant
sectors, such as Healthcare in several markets. Within these segments,
we service around 40,000 public and private customers and our service
performance touches and engages with millions of end-users every day.
Although we typically do not handle highly sensitive personal data, our
service delivery often necessitates accessing and processing personal
information of end-users, such as food allergy details (food services) or
contact information (reception services). Most of our core service activities,
such as cleaning, do not rely on personal end-user data. However, poor
management of personal data does pose financial and reputational risk.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Placemakers
Our employees comprise placemakers and support staff. We use the
term “placemakers” to refer to employees performing services directly
to customers, while support staff perform management and support
functions. Our service performing placemakers may also be referred
to as frontline employees due to their role and tasks being performed
directly at our customers sites.
IMPACT, RISKS AND OPPORTUNITIES
Social
workforce
Fair and proper working conditions, including
adequate wages, freedom of association and
respect for human rights
p. 46
Safe and non-hazardous practices and
work environments
p. 48
Gender equality, skills development, non-
discrimination, equal opportunities and equal pay
p. 51
privacy
GDPR and privacy practices related to personal data
p. 53
Working conditions
Safe, healthy and fair working conditions
p. 55
Practices and incidents in regards
to e.g. child and forced labour
p. 57
privacy
!
GDPR and privacy practices related to personal data p. 53
Environment
change
Reducing or preventing GHG emissions
p. 64
Governance
culture
Values, beliefs and norms that shape
our behaviour and decision-making
p. 77
Fair and transparent business practices
p. 79
relationships
Engaging suppliers on fair terms
p. 80
Material
topics
For actual/potential impacts and time horizons, see p. 40
Positive impact Negative impact
Financial risk
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
VALUE CHAIN IMPACT
•
•
•
•
•
•
•
Labour and human rights
Health, safety and wellbeing
Equal treatment and opportunities
Data privacy
Climate change mitigation
Corporate culture
Corruption and bribery
In brief
Material
topics
Our business
Performance
Governance
Sustainability
statement
Financial
statements
35
Upstream
Suppliers and subcontractors
Own
operations
Own workforce
Downstream
Customers and end-users
• Data privacy
• Climate change mitigation
• Working conditions
• Forced labour and child labour
• Supplier relationships
• Climate change mitigation
Environment
Group
Risk
Group Chief People &
Technology Officer
Climate
change
mitigation
Global Climate Impact Team
Governance
Group
Legal
Group General Counsel
Corporate
culture
Group Legal
Corruption and bribery
Group Legal
Supplier
relationships
Global procurement, Group COO
SUSTAINABILITY
GOVERNANCE
Governance
Sustainability governance structure
The Board of Directors (the Board) retains overall oversight of the Group’s
sustainability matters
1)
, including sustainability strategy and targets.
At Board level, two committees are responsible for certain specific sustainability-
related matters. The Audit & Risk Committee (ARC) oversees matters related
Board of Directors
Overall responsible for the sustainability strategy and targets
ESG relevant Board committees
Audit & Risk Committee / Remuneration Committee
ESG relevant EGM committee
Business Integrity Committee
to business conduct and evaluates the external sustainability reporting and
related internal controls. The Remuneration Committee approves remuneration
of the Executive Group Management (EGM), including the sustainability-related
objectives embedded in the short-term incentive programme.
The EGM is overall responsible for the day-to-day management of
sustainability-related activities in line with the strategic direction,
commitments and targets set by the Board. Essential sustainability-related
targets are also endorsed by the EGM.
At EGM level, the Business Integrity Committee (BIC) is overall responsible
for business conduct matters. This includes review and assessment of
reports received under our Speak Up system as well as findings related to
corruption and bribery investigations. The Chair of the BIC, the Group CFO,
reports BIC-related matters to the ARC at each meeting.
Day-to-day operational execution of our sustainability activities is
delegated to and integrated into each relevant functional ESG pillar.
To ensure cross-functional collaboration and effective decision-making
across the organisation, a Sustainability Leadership Forum (SLF) has been
established. The SLF consists of representatives of each functional ESG
pillar and is headed up by our Head of Group ESG, who is responsible for
coordinating the operational execution of our sustainability strategy.
Our sustainability activities are embedded in our service performance through
four Sustainability Service Line Boards headed by the Global Head of Cleaning,
Technical Services, Food and Workplace, respectively, and with country and
functional representation to ensure enterprise-wide engagement.
Management of material IROs does not necessarily follow a fixed
organisational design but is adapted to ensure that governance and
oversight is best exercised and executed in our context. Functional
management responsibilities for each of our material topics is shown
in the governance structure to the right.
1)
For sustainability matters transacted by the Board and the EGM, see p. 27.
EGM sponsor
Sustainability Leadership Forum
Day-to-day management of sustainability activities delegated
and integrated into each relevant functional pillar
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Executive Group Management
Managing sustainability activities
Social
Group People & Culture
Group Chief People &
Technology Officer
Health, safety and wellbeing
Health & Safety function
Equal treatment and opportunities
Group People & Culture
Labour and human rights
Group People & Culture
Data
privacy
(own workforce/consumers and end-users)
Global Information Security function
Working
conditions
(value chain)
Group People & Culture
Forced labour and child labour
(value chain)
Group People & Culture
Sustainability
framework
Our sustainability framework is based on our business fundamentals as
articulated in our purpose, our mission, our Human Rights Statement, our
values and our strategy and supported by a comprehensive framework
of policies which in turn are operationalised by standards, manuals
and guidelines.
Our Code of Conduct sets out the key principles for conducting business
in an ethical and responsible manner in line with our values. As such it
serves as overarching guidance for the behaviour of anyone working for,
supplying or representing ISS.
Our actions are further guided by targeted policies addressing our material
impacts. Our Global People Standards provide a systematic and consistent
approach to managing our people and others providing services under our
direction and covers themes within human rights, labour practices, health
and safety, legal compliance and supply chain management. In addition,
our Group HSEQ policy ensuring occupational health, safety and wellbeing
and our Diversity, Inclusion & Belonging policy promoting equal treatment
and opportunity for all. Our targeted policies are further described in the
relevant material topic sections.
Together, these policies form the backbone of our approach to
sustainability, embedding responsibility, ethics, and social impact into
everything we do.
We align our policies and practices with leading international frameworks
including the UN Declaration of Human Rights, UN Guiding Principles on
Business and Human Rights, and the ILO Declaration on Fundamental
Principles and Rights at Work.
All our policies outlined in the overview are endorsed by the Board and the
EGM and are subject to regularly reviews. Most of the policies are available
at www.issworld.com.
Sustainability performance and
incentive programmes
Sustainability-related targets are embedded as part of our short-term incentive
programme (STIP) with a 15% weight as approved by the Board of Directors.
STIP
–
ESG
objectives
For 2025, the ESG objectives remain a key element of the STIP. The
2025 objectives retain the focus on progressing on the environmental
and social sustainability agenda. The 2025 objectives are:
Environmental:
• CO
2
reduction according to SBTI
• Reduction in use of fossil fuels
Social:
• Progression on 40% gender target for senior leadership
incl. increasing the number of female successors
• Progression on ambition for providing living wages
• Ensuring link between social sustainability and commercial offerings
Governance:
Underpinning achievement on environmental and social objectives measured
by compliance with mandatory trainings and a strong safety record.
The Group objectives are cascaded through the organisation to ensure
focus on these objectives all the way down to site level.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
• Global People Standards
• Group HSEQ policy
• Diversity, Inclusion & Belonging policy
• Supplier code of conduct
Topic
policies
• Code of Conduct
• Sustainability policy
• Corporate governance policy
• Speak Up policy
• Anti-corruption policy
• Sanctions policy
• Competition law policy
• Escalation policy
• Data ethics & AI policy
• Data protection policy
• Tax policy
Business
conduct
policies
• Our purpose
• Our mission
• Human Rights Statement
• Our values
• Our strategy
Fundamentals
Due
diligence
Risk
management
and
internal
controls
Our sustainability reporting prepared based on input derived from
numerous internal and external sources across functions and geographies
and relies on systems and processes ranging from locally bespoke and
autonomous solutions to being globally aligned and system integrated.
The fragmented nature of data sources, together with the relative
immaturity (compared to financial reporting) of the sustainability reporting
discipline, are key risk areas.
We generally seek to adopt same or similar internal control processes for
sustainability reporting as for financial reporting, though we recognise
that there is a significant gap to be caught up over the coming years. The
sustainability reporting framework still evolves, and we therefore also seek
to balance the need for building robust controls for the current state with
sufficient agility to adapt to changing requirements.
We generally apply a “domain data ownership” principle across the Group.
The function responsible for a particular sustainability matter is also
responsible for the data necessary for performance management hereof
and for maintaining appropriate controls.
Key sustainability metrics are reported country-by-country and
consolidated following the same structure as our financial reporting
and within the same consolidation system. Initial controlling of data is
performed in each country and subsequently controlled at Group level by
Group Financial Controlling applying a risk and materiality-based approach.
In 2025, the Group ESG controlling responsibility was transferred to Group
Financial Controlling to leverage knowledge and processes applied for
financial reporting.
At Group level, fundamental metrics and KPIs on people and safety are
reported on a monthly basis as part of the ordinary financial reporting
cycle. On a quarterly basis, ESG performance as well as findings of risk
assessments and internal controls are reported to the Executive Group
Management (EGM) and the Audit & Risk Committee.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Core
elements
Sustainability
statement
Embedding due
diligence in governance,
strategy and
business
model
• Strategy and approach, p. 31
• Governance, p. 36
• Current and future effects of our material
topics, p. 40
Engaging with
stakeholders in key
steps of the due
diligence
• Stakeholder engagement, p. 41
• Double Materiality assessment, p. 39
• Customers, p. 42
• Employees, p. 42
• Labour organisations, p. 42
• Value chain workers, p. 42
• Suppliers p. 42
Identifying
and assessing
adverse
impacts
• Double materiality assessment, p. 39
• MyVoice global survey, p. 45
• Safety climate survey, p. 49
• Supplier vetting, p. 56
Action to address
adverse impacts
• Employees, pp. 46-47, 49, 52
• Value chain workers, pp. 55, 57
• End-users, p. 53
• Climate, pp. 64-69
Tracking the
effectiveness of
these efforts and
communicating
•
Risk management and internal controls, p. 38
•
Speak Up channel, p. 78
Double
materiality
assessment
(DMA)
The double materiality assessment identifies the
environmental, social, and governance topics that are
material to our business. This assessment is the foundation
for our sustainability strategy and approach as well as
for reporting on sustainability-related impacts, risks and
opportunities in accordance with the ESRS requirements.
DMA
methodology
Our DMA identifies ISS’s inherent exposure to sustainability-related IROs
– both from and to our own operations as well as along our upstream and
downstream value chain. The assessment is performed at an IRO level
as mandated by ESRS and ignores any actions, initiatives, controls, and
mitigation efforts already in place.
We conduct a full DMA in accordance with ESRS every two to three years.
However, due to the current update of the ESRS framework, a full DMA will
not be undertaken before the new ESRSs take effect.
Our latest full DMA was conducted in 2023, where 20 ISS functional subject
matter experts across People & Culture, Operations, Procurement, Finance,
Legal and Strategy carried out the assessment by way of desktop exercises,
workshops, validation processes and feedback loops. No site-specific
assessments or analyses were performed on own or customer sites, and
no standardised methodologies, assumptions or tools were applied.
The process was supported by recognised external consultants and drew
on internal and external stakeholders such as investors, customers,
suppliers, employee representative organisations and the European
Works Council. The outcome was approved by the EGM and the Board and
sounded with the European Works Council being a key stakeholder.
In 2025, we performed a refresh exercise engaging a broad selection of
relevant internal stakeholders; the Sustainability Leadership Forum, People &
Culture, Health & Safety and Global Risk Management, while also incorporating
input from our placemakers. As a new initiative, we also conducted workshops
with our service line boards for cleaning, technical, security, food and
workplace to gain further insights and explore additional sustainability topics.
In addition, as a pilot project we conducted a survey in ISS Denmark
utilising our MyVoice platform to obtain insights directly from our
placemakers in relation to ESG topics. In 2026, we aim to explore the
possibilities of further expanding the survey to additional placemakers
across the Group to expand our direct engagement with our employees
even further.
Materiality assessment
Through the DMA mapping process, we identified specific sustainability
topics (actual and potential IROs) across our business and value
chain – covering short, medium, and long-term horizons. These have
been assessed to determine their materiality, and therefore which are
mandatory for reporting.
Sustainability topics are assessed on both impact and financial materiality
scoring on a scale from 1 to 4. Topics are considered material when
meeting or exceeding a threshold score of 3 (out of 4) and are therefore
included in our sustainability reporting. The threshold also reflects
strategic significance, as these topics require review and approval by the
EGM, ensuring alignment with the highest level of governance.
Impact materiality considers how ISS’s sustainability topics impact people
or the environment (along the entire value chain). For negative impacts,
the assessment is based on the severity (based on scale, scope and
remediability) and likelihood of the topic arising. Positive impacts are
assessed on the same basis, but without remediability.
Financial materiality involves identifying sustainability-related risks,
including identified impacts, that could result in negative financial or
reputational impacts for ISS. The assessment of financial materiality
is based on the likelihood of the risk materialising and the magnitude
(financial and reputational). The methodology is aligned to our enterprise
risk management framework, which underpins that sustainability-related
risks and opportunities are treated with equal importance to other
business risks and opportunities.
ISS’s material topics – outcome of the DMA
The 2025 refresh exercise did not lead to changes in our material
topics (IROs), as identified in 2024, and consequently did not require
us to update our sustainability strategy and approach. Likewise, no
new financial opportunities were identified relative to our established
materiality threshold.
As such, the refresh reconfirmed that our material topics predominantly
relate to people – both in our workforce and in our value chain. The
outcome of the 2025 refresh was approved by the EGM and the Board.
An overview of these material topics is provided on p. 34, with
further details available in the respective Social, Environmental, and
Governance sections.
Non-material topics
The workshops conducted with Service Line Boards to explore additional
sustainability topics that could be material to ISS identified five additional
themes as relevant to consider within the broader sustainability landscape:
Microplastics, Biodiversity, Food waste, Rights of Indigenous and
animal welfare.
While all five topics remain recognised as important, we concluded that
none currently meet the threshold for materiality to our business. As a
global facility services company, our operations neither materially impact
nor are materially impacted by these areas in a way that would result in
significant financial, environmental, or societal risks or opportunities.
Additionally, as part of our DMA, we also conducted a group-level
assessment of material impacts, risks, and opportunities (IROs) under
ESRS E2 (Pollution), E3 (Water and Marine Resources), E4 (Biodiversity and
Ecosystems), and E5 (Waste and Circular Economy).
The assessment incorporated country-specific knowledge to effectively
screen relevant operational areas within our value chain, including direct
service activities at customer sites and relevant upstream and downstream
operations. The process leveraged internal expertise, publicly available
data, and sustainability frameworks aligned with recognised environmental
methodologies to assess actual and potential impacts, risks, and opportunities.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Through this comprehensive screening, we identified several IROs within
these areas; however, based on the nature of our service-centric business
model we concluded that these IROs are not currently material to our
business or environmental performance as explained below:
• Pollution (E2): Direct emissions are minimal, primarily linked to vehicles
used in service delivery.
• Water and Marine Resources (E3): Water consumption is low both within
our own operations and in the services we deliver at our customers’ sites.
• Biodiversity and Ecosystems (E4): Our food services business impacts
biodiversity primarily through our food sourcing. However, the
geographical scale and intensity of our business is limited, and we are
not dependent on single source or specific foods.
• Waste and Circular Economy (E5): Waste generation from our activities
is generally limited, and food waste is relatively insignificant as a
component of the overall waste cycle. We address food waste as part of
our climate mitigating actions and as a natural part of our continued cost
and efficiency focus, but as a separate topic food waste is immaterial
from both a financial and impact perspective.
We also engaged internal stakeholders and consulted with relevant
external parties, including affected communities when applicable, to
validate that no material IROs were overlooked or underestimated.
We remain committed to ongoing monitoring and periodic reassessment
to ensure timely identification and management of any emerging issues
related to the topics.
Actual and potential impacts
As part of the DMA, each identified IRO was evaluated to determine
whether it gives rise to an actual or potential impact. All impacts are
assessed as actual positive or negative impacts, as they are already
observable within our operations or value chain and therefore require
immediate consideration.
Time horizons
In assessing our IROs, we apply the following horizons:
• Short term: 0-1 year
• Medium term: 1–5 years
• Long term: beyond 5 years
All our material topics have been assessed as giving rise to impacts
in the short term. Climate change mitigation and Data privacy (own
workforce) are also assessed as remaining material over the medium
to long term. Nevertheless, as their impacts are already evident at
present, they are classified as short-term impacts for the purpose of this
materiality assessment.
Current and future financial effects
of our material topics
Our operating costs, operating margins and cash flows are impacted
by our ongoing efforts to mitigate negative and enhance positive
sustainability-related impacts. Related costs primarily relate to:
People resources at Group, country and account level fully or partly
engaged in sustainability activities
Training activities and programmes
IT systems supporting data collection and reporting
Generally, our sustainability-related activities are carried out as part of our
ordinary business activities and integrated into our functional operations. As
a result, it is not possible to separate such costs and effects from ordinary
business activities. This is because our most material IROs to a large extent
are inherent business imperatives that we manage, first and foremost
because of their business importance rather than primarily due to a
particular sustainability focus. For example, we instil safe driving behaviours
through our “Driving for Work” safety standard and training programs. While
the headline aim is to keep our placemakers safe, the impact also extends
across climate change mitigation and financial performance through lower
energy consumption due to more energy efficient driving.
Given our asset-light business model, we do not consider the carrying
amounts of our assets or liabilities to be significantly exposed to material
adjustments arising from sustainability-related risks or opportunities.
Considering our current mitigating measures, we do not anticipate any
material financial effects in the short, medium or long term arising from
the sustainability-related impacts, risks and opportunities (IROs) identified
in our DMA. Also, we have not identified any significant need for additional
investments or resource requirements for specifically addressing our
IROs beyond those already embedded in our ordinary investment and
resource planning.
The potential future financial effects of our material sustainability-related
risks and opportunities are subject to a high degree of uncertainty,
particularly in relation to environmental factors such as climate change and
regulatory developments.
Strategy resilience
Our strategy and business model is reviewed annually. The process
is anchored with the Board and is informed by strategy reviews by
country and regional levels. On a quarterly basis the EGM monitors our
strategy execution and evaluates its resilience to external factors. Our
bi-annual enterprise risk cycle informs the strategy review process by
highlighting current and emerging themes of importance, including
sustainability-related IROs. Sustainability considerations are reinforced
through our DMA. We believe that this approach ensures preparedness,
responsiveness, adaptability and learning in our strategy and business
model ensuring overall resilience, including to sustainability-related IROs.
The annual strategy review completed in 2025 reconfirmed our strategic
focus on environmental and social sustainability. The resilience analysis
supporting our strategy was conducted as a desktop exercise using
publicly available publications.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Stakeholder
engagement
Engaging with our key stakeholders, understanding their
interests and views is essential to ensuring that we deliver
on our strategy, including our social and environmental
commitments, and create long-term sustainable value for
our shareholders and other key stakeholders.
As a global company, we engage with a wide range of stakeholders as
an ordinary part of doing business. Their insights help shape and inform
our DMA as well as identifying our IROs. In specific cases, we may engage
stakeholders through dedicated DMA or sustainability initiatives.
Stakeholder engagement is generally organised in suitable forums and at
the appropriate organisational levels, depending on topic and stakeholder.
From time to time, we also engage with key stakeholders in dedicated
stakeholder impact sessions to ensure that their views are mapped,
understood and considered by us. Feedback loops, escalation principles
and reporting lines are defined with the aim to ensure that insights are
captured and filtered appropriately, thereby allowing relevant matters to
reach the right level of the organisation, including the Executive Group
Management (the EGM) and the Board of Directors (the Board).
An overview of our key stakeholders, including engagement channels,
is shown in the box to the right and where relevant supplemented by
commentary in the next section.
Key
engagement
channels
• Daily interaction with placemakers and line managers, e.g. daily team board talks and informal, unplanned meetings
• Annual employee appraisals
• MyVoice global engagement surveys (annually)
• Global safety climate survey (annually)
• Employee Resource Groups (ERGs) focused on diversity, inclusion and belonging
• Townhall meetings, virtual and physical (Global and country-by-country)
• Regular performance reviews (monthly)
• Ongoing dialogue and ad-hoc workshops
• Account Development Plans
• Customer and end-user surveys, including on potential data privacy issues
• Regular investor meetings
• Investor calls and road shows (quarterly)
• Company announcements and press releases
• Annual General Meeting (AGM)
• Capital markets days
• Continuous dialogue with suppliers
• Workshops and training sessions
• Business review meetings
• Site-based performance management meetings
• Continuous dialogue with unions and employee representatives
• National and international works councils
• European Works Council meetings (quarterly)
• UNI meetings (semi-annual)
• Multi-channel and platform dialogue with media and NGOs
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Key
stakeholder
Employees
325,000+
Customers
40,000+
Shareholders
~38,400
Suppliers and
subcontractors
~45,000
Unions and
employee
representatives
Media
Employees
We engage with our placemakers and line managers on a daily basis as
part of our service performance and management activities, including
on material matters in regard to Health & Safety, working conditions and
equal opportunities. Most importantly, our day-to-day interaction comprise
daily Team Board Talks, coffee breaks, unplanned meetings etc. allowing
for immediate feedback and swift calibration.
In line with our Global People Standards employee appraisals are
conducted at least annually and we actively support and promote indirect
engagement through labour organisations or workplace representation
whether established as a matter of law or not.
In addition, we conduct annual surveys on a global basis on employee
engagement (MyVoice) and health, safety and wellbeing (Global Safety
Culture survey) allowing our employees to voice their views and thereby
offer a direct engagement link between our placemakers and managers at
local, country, regional and global level. Please refer to p. 45 and p. 49 for
further details.
Friction is a natural part of people engagement and as a global employer of
more than 325,000 employees we manage and resolve thousands of episodes
each year as part of our routine management activities. Any episode or
incident that cannot be resolved through ordinary management channels can
be raised through our Speak Up system. For details on Speak Up, see p. 78.
In 2025, we launched a pilot placemaker survey in Denmark to capture the
perspectives and experiences of our service-performing placemakers on
selected sustainability topics, including health, safety and wellbeing, clean
air and water. The survey covered a defined group of 339 Key Account and
Site Managers, achieving a response rate of 45%, and enabled us to test the
methodology, assess participation and identify key workforce themes.
Building on the pilot, we plan to expand the survey to all our placemakers.
Aggregated feedback will be communicated to the EGM and Board,
reinforcing our commitment to listening to our people. The survey will
be launched via MyVoice platform, which provides broad reach across
the organisation and strengthens inclusive engagement, supporting
continuous improvement in people-related outcomes.
Customers
Our potential data privacy impact on end-users arises as a result of our
customers outsourcing their facility services to ISS, which requiring us to
access necessary personal data to perform certain services (e.g. reception
services and food services). Our customers generally have an obligation to
ensure that any partner or third party handling their employees’ personal
data, comply with applicable regulation and standards. Consequently, our
primary engagement on end-user data privacy is with our customers.
We do, however, also engage with end-users on a daily basis as part of
our service performance as well as through regular surveys conducted in
collaboration with our customers. These allows our end-users to voice views
and raise concerns, including in relation to potential data privacy issues.
Suppliers and subcontractors
We do not have formalised direct engagement with supply chain workers
(suppliers and subcontractors). Rather, we rely on the engagement and
interaction that our Supply Chain & Procurement function has with our
suppliers to influence their behaviours towards their own workers, and
with labour organisation representatives.
Our Speak Up channels are available to workers in the supply chain as they
are to all of our stakeholders. In 2025, we received no reports of violations
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 involving supply chain workers.
We consider labour organisations as key intermediaries for ensuring open
and transparent dialogue with supply chain workers. They benefit from
high trust levels and aligned interests with supply chain workers within and
across industries and geographies and we are committed to supporting
access to unionisation as evidenced by our long-standing relationship with
UNI Global Union.
Unions
and
employee
representatives
As one of the world’s largest private employers, we engage with employee
representatives across the world. We respect the right to organise as
embedded in our Code of Conduct and see employee representation as
essential to ensuring a “just transition” and advancing workers’ and human
rights. Engagement takes place at multiple organisational levels, from site
level and up to board level, and is conducted in line with local norms and
applicable legal frameworks.
At Group executive level, we engage with the European Works Council
(EWC) through at least quarterly meetings. The Council consists
of employee representatives elected across countries within the
European Economic Area (EEA) where we have operations representing
approximately 28% of our placemakers. At least once a year, a physical
meeting is hosted for the EWC at our HQ in Copenhagen or Warsaw, which
allows for both formal and informal engagement and networking between
senior executives and employee representatives.
Our Group Chief People & Technology Officer holds formal responsibility
for the relations with the EWC and UNI Global Union with whom we have
maintained a positive relationship since 2003 under a Global Framework
Agreement aimed at enhance and support workers’ and union rights.
Further, in accordance with Danish law three employee-elected representatives
serve on the Board of ISS A/S – the Group’s ultimate governing body.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Basis
of
preparation
The sustainability statement of the Group has been prepared in accordance
with the EU Corporate Sustainability Reporting Directive (CSRD) and the
related Sustainability Reporting Standards (ESRS), and article 99a of the
Danish Financial Statements Act.
Scope
and
consolidation
The sustainability statement for the Group has been prepared on a
consolidated basis. The scope and consolidation principles for the
sustainability statement are consistent with the consolidated financial
statements, see section 8 of the consolidated financial statements.
We have not omitted classified or sensitive material information nor any
material information on grounds that it constitutes intellectual property,
know-how or the results of innovation.
Value chain and material topics
The outcome of the Double Materiality Assessment (DMA) forms the basis
of the reporting of material impacts risks and opportunities (IROs) – the
Group’s material topics.
We include disclosures on material topics in our upstream and downstream
value chain in accordance with the outcome of our DMA and describe value
chain coverage of our policies, actions and targets in the individual Social,
Environment and Governance sections.
Materiality
We disclose information on material topics that we consider to be material
and relevant for stakeholders or that is prescribed by the relevant ESRS
standards. Materiality is judged by reference to the size and nature of
the information item. The deciding factor is whether the omission or
misstatement could, individually or collectively, provide a materially
incorrect basis for stakeholders acting reasonably to understand the
sustainability-related context of the activities of the Group.
Change
in
accounting
policies
With the exception of the changes described below, the accounting policies
have been applied consistently with those of the previous year.
GHG emissions
In 2025, the methodology applied for calculating GHG emissions was
revised. As a result, the emissions previously reported for 2019 (baseline
year) and 2024 have been restated. The revised methodology is described
on p. 73 along with the quantitative effects of these restatements.
Female representation in corporate leadership
In 2025, female representation in corporate leadership for 2024 was
restated from 37% to 35% following updated data. Revised data shows 651
males (65%) and 357 females (35%), compared to previously 748 males
(63%) and 436 females (37%).
EU taxonomy
In 2025, we refined our methodology used to calculate EU Taxonomy
eligibility for OpEx and CapEx. A detailed description of the restatement
and its impact are provided on p. 75.
Phase-
in
The phase-in options are applied for S1-11, S1-15 and E1-9.
Incorporation
by
reference
In presenting the sustainability statement we have applied the principles
of “incorporated by reference” to other sections of the Annual Report. ESRS
data points incorporated by reference are clearly marked by underlining the
text in blue and adding the reference as: ESRS-X §X. For an overview of ESRS
disclosures incorporated by reference and stated outside of the sustainability
statement, see p. 83.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Significant
estimates
The preparation of the sustainability statement required
management to make judgements, estimates and assumptions
for certain quantitative and qualitative disclosures. Estimates
and assumptions are reviewed on an ongoing basis following the
same basis as estimates and judgements made in preparing the
consolidated financial statements.
Social
Training hours are recorded either directly in learning and
development systems or calculated based on participation data.
As part of the training data relies on employees registering their
hours manually, there is an inherent estimation uncertainty asso-
ciated with the disclosed number.
Environment
Fossil fuel A low proportion of fossil fuel consumption is estimated
typically based on spend or travel distance.
Energy consumption A medium proportion of other energy
consumption is estimated based on m
2
or building types.
Scope 3 A large proportion of scope 3 emissions is subject to
assumptions and estimates.
EU taxonomy For estimates related to EU taxonomy, see p. 75.
Entity-specific
estimates
Living wage Due to inherent limitations in the scope and
granularity of WageIndicator data, the living wage indicator should
be considered an estimate. See further details on p. 47.
Recognised qualifications Because registration partly relies on
employees manually recording their qualifications, there is an
inherent estimation uncertainty associated with the disclosed
number of qualifications.
SOCIAL
Leading frontline employer
With our people at the heart of our success – creating value
for the business and enabling social value for customers
and communities – it is our utmost priority that they thrive
and feel engaged at ISS.
Central to this commitment is our unwavering dedication to human rights,
which defines who we are and shapes how we operate. This is also why
we in 2025 conducted a comprehensive human rights assessment and
published a Human Rights Statement to reaffirm our commitments and
focus areas, read more on p. 46.
We believe that fairness, dignity, and respect for all individuals are essential
to building a sustainable and inclusive workplace and society. These
principles guide our ambition to become the leading frontline employer.
Our beliefs and commitments are reflected in our Employee Value
Proposition (EVP), A Place to Be You, which sets out three promises to every
person who works for us today – and to everyone who aspires to join us:
at ISS, you can be who you are, become what you want, and be part of
something bigger.
Therefore, our EVP and our mission to help people thrive must be
embedded throughout the entire people journey. Even before an
employee’s first day – starting from the moment they engage with ISS
through the recruitment process – we want them to have a positive
experience with us.
We hire around 100,000 employees every year – making an exceptional
people experience critical to our success in both recruiting and retaining
our people. In 2024, as part of our Group strategy refresh, we formalised
this commitment as a strategic ambition: to become the world’s leading
frontline employer.
This ambition encompasses four focus areas, as outlined below. Through
these initiatives, our objective is to improve the quality of our people
processes, enabled by data-driven insights and solutions, resulting in
reduced costs and higher employee satisfaction and retention.
People data
and analytics
A world-class people experience relies on data-driven decision-making.
In 2025, we established a streamlined people data hub, aiming to ensure
automated, high-quality, and accurate people data. We also strengthened
our people analytics capabilities to identify key levers for improving metrics
such as retention and absence across our business and to share these
insights across our markets.
Over the past year, we have rolled out a people dashboard that provides
leaders and People & Culture teams with easy access to essential people
data. In parallel, we have focused on automating updates to a central
people data lake using a standardised people taxonomy. As of 2025, eight
countries are connected, with all markets expected to be onboarded by the
end of 2027.
Digital
recruitment
With an employee turnover of 30%, we hire around 100,000 people
annually and engage with over one million candidates each year.
Optimising recruitment is therefore critical to ISS.
To support this ambition, we established a Talent Acquisition Centre of
Excellence in 2025 and initiated the discovery and design phase for an AI-
driven recruitment platform. Nine countries are participating to ensure a
strong, fit-for-purpose setup ahead of a global rollout starting in Q2 2026,
with Pacific and Sweden as the first implementation markets.
Our goal is to expand and strengthen the talent funnel while enabling a
standardised yet locally adaptable hiring process. This will also support the
optimisation of our substantial annual recruitment spend.
Ultimately, our ambition is to build a scalable, future-ready talent
acquisition ecosystem that reduces vacancies, accelerates hiring, and
enhances the experience for both candidates and hiring teams.
Leading frontline employer
Labour and human rights
Health, safety and wellbeing
Equal treatment and opportunities
Data privacy
Working conditions
Forced labour and child labour
Social data
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Digital
onboarding
and
engagement
Connecting and engaging with our placemakers strengthens their sense of
belonging, engagement, and affiliation, supporting improved retention.
In 2025, we initiated roll-out of digital onboarding workflows across our
markets, supported by 7-, 30-, and 90-day pulse surveys to monitor and
enhance engagement during the critical onboarding phase. The goal
is to fully integrate our digital engagement and feedback platforms,
MyISS and MyVoice, into one mobile-accessible solution with continuous
engagement tracking.
Following the successful relaunch of the MyVoice Global Survey in 2024,
we conducted a follow-up survey in 2025. The MyVoice Global Survey is
an essential tool for directly engaging with our employees and gaining
valuable insights into their perspectives and concerns. While we have
set no specific time-bound targets, these results enable us to implement
targeted measures that drive sustained employee engagement. We are
pleased to report an overall engagement score of 75%, based on 185,443
respondents and a participation rate of 64%.
Social
sustainability
Ensuring an exceptional people experience is also integrated into our social
sustainability agenda, which includes three key focus areas:
Social Value Portal
In 2025, ISS entered into a new, global first-of-its-kind partnership with
the UK-based organisation Social Value Portal, with the aim of developing
a unified global framework for measuring the impact of ISS’s social
sustainability initiatives across its 57 operating countries. By adopting
Social Value Portal’s Global TOM (Themes, Outcomes, Measures) System,
ISS will be able to measure and report social impact across borders using a
unified metric for social value: the International Dollar. By translating social
value into monetary terms, ISS aims to bring social sustainability even
further to the forefront of global business.
ISS has collaborated with Social Value Portal in selected countries since
2023. In 2025, Spain, Australia, the Netherlands, Denmark, and Norway were
included in the partnership’s project scope. The global roll-out will continue
from 2026 onwards, gradually expanding to include additional countries.
Sustainable income
We continue to advance the implementation of living wages across our
business. In 2025, we expanded our living wage assessment to include
all countries in which we operate. The assessment shows that we pay our
placemakers above the living wage in 14 countries. At the same time, we
remain committed to improving working conditions globally by exploring
additional sustainable income initiatives, such as faster access to earned
income, more stable working hours, and enhanced financial literacy for our
placemakers. Further details are provided in Labour and human rights, p. 46.
Recognised qualifications
Upskilling and access to education are essential drivers of employee
engagement and social mobility. Since the programme was launched in
2022, we have pledged to provide 100,000 placemakers and their families
with recognised qualifications by 2025. As this initial target has already
been exceeded, we have set a new target to provide an additional 250,000
placemakers and their families with recognised qualifications, taking the
total accumulated target to 350,000 recognised qualifications by 2030.
33
32
30
2023
2024
2025
Highlights
185,443
64%
75%
policy
Participation rate
The participation rate is calculated
by dividing the number of employees who completed
the survey by the total number of employees invited to
participate. All employees employed as of 30 June 2025
were invited to complete the survey.
Engagement score The engagement score is defined as a
composite measure based on the percentage of favourable
responses to four benchmarkable survey statements
related to Engagement. Favourable responses are those
marked “Strongly agree” or “Agree” on a 5-point Likert scale.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
OWN WORKFORCE
Labour
and
human
rights
Decent working conditions, secure employment, fair wages,
and respect for human rights are fundamental to ISS’s
ambition to become the world’s leading frontline employer.
We provide job opportunities for many individuals on the
edge of the labour market, giving us a unique opportunity
to drive social mobility and inclusion across our operations
– alongside a responsibility to safeguard the wellbeing and
dignity of our people.
The facilities services industry is fragmented and competitive with low
barriers of entry. It is characterised by low margins and strong price
competition, which can put pressure on wages and working hours.
Through clear standards, strong governance, and a range of social
sustainability initiatives, we aim to mitigate the potential negative impacts
on our placemakers arising from poor working conditions, underpayment,
and limited career opportunities.
We are committed not only to uphold but to actively promote human
rights throughout our operations. In 2025, we conducted a comprehensive
Human Rights impact assessment. As a result, we identified clear actions
and published a Human Rights Statement to reaffirm our commitments
and focus areas.
We are also committed to pay living wage. The payment of living wage is
a powerful route to help our people and their families to access a decent
standard of living and tackle social inequality and thereby drive a positive
impact for our workforce. However, as a low-margin business, we are
unable to independently absorb the cost of transitioning to living wage
levels. Advancing this agenda is therefore dependent on co-funding and
collaboration with our customers and relevant external partners.
Framework
and
policy
Our commitments are implemented through our Code of Conduct and
our Global People standards. Our actions are further guided by a robust
policy framework, including our Diversity, Inclusion & Belonging policy,
and Group Health, Safety, Environment and Quality (HSEQ) policy. These
reinforce our commitment to protecting the rights and dignity of every
individual in our workforce.
These policies and standards are supported by mandatory training for all
employees and verified through our internal baseline audit programme,
ensuring that our standards are applied consistently across markets. See
further described in Corporate culture, p. 77.
Our human rights strategy is governed cross-functionally, with key
initiatives driven by People and Culture and oversight provided by the
Board to ensure accountability and embed human rights considerations at
the highest level of corporate governance.
Key
actions
Human Rights assessment
In 2025, ISS conducted a comprehensive Human Rights impact
assessment, supported by external experts, to identify, assess, and
prioritise human rights risks across our global operations.
Our placemakers are at the frontline of our operations. Therefore, our first
priority was to understand the human rights landscape within our own
global workforce, rather than in our supply chain.
The assessment engaged a broad spectrum of internal stakeholders
through workshops and one-to-one meetings, resulting in a detailed
overview of both existing and emerging human rights risks relevant to
ISS. Each identified risk was scored against criteria that included potential
severity of impact, likelihood, ISS’s connection to the impact, leverage to
influence risk mitigation, and the effectiveness of current management
controls. The findings were reviewed and confirmed our understanding of
ISS’s salient human rights issues.
Globally, the rights we consider most at risk of severe negative impact
through our activities and business relationships include:
• freedom from discrimination and disrespectful treatment;
• the right to appropriate working conditions; and
• the right to physical and mental health and safety.
ESRS S1: Working conditions
By offering a large number of entry-level jobs across our
service lines, we create employment opportunities and income
for people at the edge of labour markets, supporting their
social inclusion and skills development. However, if hiring,
scheduling, remuneration and supervisory practices are not
adequately controlled, these same activities can result in poor
working conditions, including low pay, excessive working
hours or unfair treatment, particularly for vulnerable workers,
thereby harming their wellbeing and livelihoods.
Inadequately managed working conditions also pose
operational and financial risks to us through reduced
productivity, higher absenteeism and turnover, labour
disputes, non-compliance with labour regulations, and
negative impacts on our reputation and client relationships,
which may ultimately influence our revenue, cost base and
ability to attract and retain talent.
• Code of Conduct
• Global People Standards
• Group HSEQ policy
• Diversity, Inclusion & Belonging policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Continued living wage implementation
Advancing living wage implementation across our industry is a cornerstone
of our social sustainability strategy and a key action to improve working
conditions globally.
By paying a living wage and helping our people grow, we can improve their
quality of life. And in turn, we believe this leads to greater engagement,
pride and quality in the work they do.
We believe that paying living wage is not just good for our people, it is
good for society and business too. When people earn a wage that meets
their everyday needs, it supports not only their cost of living but also their
access to education and a better quality of life for themselves and future
generations. This creates stronger, more resilient communities and a more
equitable society overall.
We have developed a global benchmarking process to assess wage levels
across markets and guide our future actions to making living wage a reality
for more of our placemakers.
In 2025, we expanded our living wage assessments to all countries where
we operate, building on the global benchmarks established in 2024. These
assessments provide a standardised basis for constructive dialogue with
customers, suppliers, and unions to address wage gaps.
To accelerate progress in closing living wage gaps in 2025, we continued
expanding the Living Wage Playbook, giving countries a clear process to
assess, plan, and take action.
Finally, we introduced complementary sustainable income initiatives –
focused on sufficient working hours and financial wellbeing – to help
ensure placemakers can earn a living income from a single employer and
strengthen their financial wellbeing now and in the future.
Collaboration with external partners
Our key challenge around living wages is that – as a low margin business – we
cannot absorb the immediate cost impact of moving our placemakers fully
to living wage levels. Therefore, a key element of our efforts is collaboration
with relevant partners across the industry to drive progress. These include the
Living Wage Foundation, WageMap, WageIndicator, and other NGOs.
Concrete initiatives in 2025 included:
Together with WageIndicator – an independent, non-profit organisation
that aims to improve labour market transparency for workers, employers,
and policymakers worldwide – we continued our work to establish a
common understanding of what constitutes a living wage and how
definitions and benchmarks vary across countries.
WageIndicator operates a global living wage database that enables
organisations like ISS to calculate wage gaps across our operations and
develop action plans to support the implementation of living wages for
all placemakers.
In 2024, ISS began a collaborative project with UNI Global Union to
improve working conditions, elevate wage standards, and promote fair
competition across the cleaning sector in Jakarta, Indonesia. As the project
progressed through 2025, UNI Global Union worked with local union
partners to identify opportunities to organise workers into trade unions
and strengthen social dialogue. This supports the effective enforcement of
minimum wage standards across employers in the sector – creating a level
playing field and improving outcomes for workers. This project highlights
the need for collaboration, broad stakeholder engagement, and a shared
vision to create the conditions for the long-term implementation of living
wages in Jakarta.
Continued efforts with customers and local teams
Each country where ISS operates presents unique challenges to the
sustainable implementation of living wages. In 2025, we deepened
partnerships with customers to co-fund and implement living wages. We
will continue to work closely with local teams and customers to highlight
the benefits of paying a living wage and to pilot approaches to reduce
living wage gaps that can then be scaled within and across countries.
Increased engagement with employees
Engagement with our employees is key. In 2025, we expanded access to
the MyISS employee experience app to more than 160,000 employees
worldwide, enabling better communication, community and feedback
opportunities across more than 20 countries. We will continue the rollout
until all employees can access the platform on demand.
Targets and progress
ISS has not set a formal, time-bound living wage target, but we remain
firmly committed to advancing living wage practices across our industry.
Our 2025 baseline assessment shows that ISS pays all placemakers above
the living wage estimate in 14 countries, while some placemakers are paid
below the estimate in the remaining 14 countries.
– status
All placemakers paid at least a living wage
Further action required to achieve living wages for all
policy
Living wage is determined for each country using data
from WageIndicator (WI) – an independent, non-profit
organisation that collects and validates wage and
cost-of-living information globally through online surveys,
desktop research, price monitoring and nationally based
data collectors. Data is continuously being developed and
updated to reflect current market data. In the 2025 living
wage assessment, the October 2024 WI metrics have
been applied. Due to inherent limitations in the scope and
granularity of these data, the living wage indicator should
be considered an estimate.
ISS applies the “Typical Family – highest” estimate within the
WI database, reflecting a household of two adults and two
children, adjusted for local fertility rates and the number
of earners per household. This estimate is based on the
median cost of relevant components and is considered the
most representative benchmark for ISS’s workforce.
For each country, the “Typical Family – highest” benchmark
is compared with the wage of the lowest-paid placemaker.
A country is considered aligned with ISS’s living wage
standard when the lowest-paid placemaker’s wage meets or
exceeds this benchmark.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
openly
A
OWN WORKFORCE
Health,
safety
and
wellbeing
Our people are our most valuable asset, and their health
and safety remain our highest priority. We are continually
strengthening our organisation and improving our practices
to drive an even stronger safety culture.
At ISS, the safety and well-being of our people are fundamental to our
operations. While accident and injury rates have remained stable, they
have continued to exceed our risk appetite. In response, in 2024, we
conducted a comprehensive evaluation of the challenges and opportunities
surrounding workplace safety, which included a health, safety &
environment (HSE) audit, analysis of 71,000 survey responses, interviews
with country managers, and more than 110 focus groups.
The assessment highlighted significant opportunities to strengthen
physical and psychological safety, harmonise safety behaviours globally,
and introduce a shared language for safety. Specifically, the insights made
it clear that our people needed:
• A consistent and memorable set of behaviours
• A common language for talking about safety
• A framework that applies to every role, from placemakers to leadership
• Stronger psychological safety and empowerment to speak up.
These findings served as the primary catalyst for creating a refreshed,
unified and recognisable safety identity: Creating SAFE Spaces Together –
reinforcing physical and psychological safety and ensuring that our safety
initiatives address real concerns and deliver tangible improvements.
Creating
SAFE
Spaces
Together
This new safety identity programme launched in May 2025 and is
our commitment to fostering a culture where safety, collaboration
and accountability drive success. It is a unique ISS behavioural safety
programme introducing updated standards, central guidance and training.
The programme directly supports ISS’s mission – “We make space for
people and businesses to thrive” – and embodies our core value of
“Responsibility.” It establishes four clear behavioural pillars designed
to foster a unified safety culture and transition ISS from a rules-based
approach to one focused on behavioural safety:
• Speak openly
• Act safely
• Focus on learnings
• Engage with others
“SAFE Spaces” is intentionally dual in meaning: as a business we create
physically safe spaces providing safe environments for people to work,
and, through our behaviours, we foster psychologically safe spaces where
everyone feels confident to speak up, disagree openly, and raise concerns
without fear of reprisal.
By embedding these behaviours into our daily operations, we aim to
create safer environments for everyone - our employees, subcontractors,
customers, and their end-users.
We are at the outset of our safety culture transformation journey. Over
the coming years, these behaviours will be instilled at every level of
the organisation, from the EGM and senior leaders to the placemakers
delivering our services.
ESRS S1: Working conditions (Health & Safety)
Our services are generally not hazardous to our
placemakers. Yet certain service performance
environments, e.g. working at heights or working with
electrical installations, as well as services that involve
repetitive or in-ergonomic movements and positions, have
a higher risk of causing accidents and injuries that can
negatively affect the physical and mental well-being of
our placemakers.
If not managed, these impacts may lead to higher
absenteeism, higher employee turnover and damage to
our employer reputation affecting our ability to attract
and retain our workforce, and ultimately affecting our
financial performance.
• Group HSEQ policy
• Global People Standards
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Framework
and
policy
The Group HSEQ policy provides our commitment and approach towards
systematically improving our health and safety, environment and quality
practices across the organisation, e.g. through engaging with employees
and subcontractors (whom we hold to the same standards we set for
ourselves). It is supported by our HSEQ Management System Manual,
which was recertified against ISO 9001, 14001 and 45001 in June 2025.
Over the past two years, we have simplified and strengthened our HSEQ
approach, refreshing all related policies and standards. Our management
standards represent the minimum controls required in every country to
prevent harm to people and the environment. By addressing the specific
hazards and risks associated with the diverse industries and customer
environments, where we operate, these standards ensure a consistent
global approach to managing safety.
At the core of our approach to managing health and safety is the dedicated
specialist Health and Safety resources at Group and local level. They are
the catalysts responsible for bringing our safety agenda to life, actively
planning and executing relevant actions.
To drive continuous improvement, our key actions rest on due diligence
processes detailed in the Group HSEQ Management Manual and
supporting standards. Simple in its essence, our standardised risk registers
– maintained down to site level – compiles knowledge of hazards, risks,
and controls. This information directly informs our risk assessments and
enables us to develop specific procedures for higher-risk environments.
These risk registers are continuously updated through feedback and
lessons learned from root cause analysis of incidents.
Key
actions
Creating SAFE Spaces together
In May 2025, we launched our new safety identity programme as described
above. This initiative introduced clear central guidance, updated standards,
and a comprehensive training programme. Implementation plans are
underway across our operations, aiming at full compliance with these new
standards within the next 12 months.
Driving awareness
Driving safety awareness is fundamental to building a strong safety
culture. We actively promote safety throughout the organisation by
implementing targeted initiatives. Central to these are our mandatory
and voluntary safety training programmes for all employees, delivered
primarily via our e-learning platform, MyLearning. In addition, we
distribute regular Global HSE newsletters and run awareness campaigns,
such as the Global Safety Week Campaign.
Daily engagement with frontline teams is equally vital. We facilitate this
through structured programmes including daily ‘Team Board’ meetings,
mandatory safety moments, frequent Safety Walks at key account sites,
our annual safety climate survey, and the formation of safety committees
established under various legal frameworks.
Speak up
A cornerstone of our “Creating SAFE spaces together” programme is
fostering an environment where employees can speak openly about safety,
actively challenge unsafe behaviours and conditions, and do so without
fear of retaliation.
Additionally, concerns can be reported confidentially and anonymously
through our organisation-wide whistleblower channel, Speak Up. In 2025,
16 reports concerning health, safety, and environmental issues were
submitted via this channel (2024: 16). For further information on our
whistleblower channel and Speak Up policy, see Corporate culture, p. 77.
Safety climate survey
In 2025, we conducted our second annual Safety Climate survey, engaging
the entire global ISS workforce – from senior leadership to frontline
placemakers. Building on insights from the 2024 survey, we targeted
improvements in our lowest-scoring safety culture drivers, with the 2025
survey focusing exclusively on these areas.
The initial roll-out of “Creating SAFE spaces together” and increased focus
on safety culture has already yielded positive outcomes. Our objective is
to demonstrate continuous year-on-year improvement through ongoing
safety culture surveys.
Commitment from Board and senior leadership
Our dedication to safety is embedded at the highest levels of governance,
with the Board of Directors (Board) demonstrating its commitment through
the annual “Chair’s Safety Award”. This prestigious award, presented by the
Chair at the Group’s annual leadership conference, recognises the country
that has achieved the best safety performance over the past year.
Furthermore, new Board members are introduced to our safety culture and
programme via Health & Safety e-learning as part of their induction. This
training equips them with essential knowledge of our safety culture and
policies, although completion is not formally assessed or verified.
Moreover, in 2025, we introduced new Health & Safety STIP targets for the
Executive Group Management (EGM) and country managers, establishing
clear accountability for safety performance at the highest level of
senior leadership.
Global legal compliance system
In some instances, local regulations exceed the minimum requirements
set by our HSEQ standards. To ensure a consistent identification and
management of such additional local requirements, we implemented a
global online legal compliance system in 2025. This platform offers access
to current legislation and provides timely, consistent updates on new
and emerging regulation. As a result, we remain informed of regulatory
changes and are able to assess the impact to our business and our
customers. Where legal requirements exceed ISS minimum standards,
these can be added to the Global standards as local amendments. The
proactive approach can bring assurance to our customers, that their
portfolio is managed in compliance with prevailing regulations.
Audit assurance programme
To enhance governance and transparency, we have redesigned our internal
audit assurance programme. Countries Heads of HSEQ now conduct
self-assessments against both Group and local standards, which are
subsequently validated by the Group HSEQ assurance team. To expedite
validation and strengthen confidence in the results we have expanded the
Group HSEQ assurance, increasing the coverage of validation audits from
a minimum of 30% of countries annually to 100% for the next two years,
effective January 2026.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Targets and progress
ISS has not set formal, time-bound targets for fatalities and serious
injuries. Fatalities and serious injuries related to our work activities are
never acceptable. Consequently, we are cautious about setting specific
targets in this regard, as doing so could imply an acceptance of some
level of unsafe practice. On the other hand, we recognise that the absence
of clear targets may fail to drive the behavioural change for continuous
improvement. Accordingly, we define LTIF levels above 2.5 for the Group
as “high”, while our unwavering objective remains zero fatalities and
serious injuries.
While no formal targets have been set, the purpose of our key actions and
initiatives is to drive improvements in accident and injury rates. We track
our HSE performance using a range of non-financial KPIs, including LTIF
(Lost Time Injury Frequency), to monitor and assess our operational safety
performance. Recognising the need for better HSE data and reporting,
we invested significantly in 2025 to upgrade our Global HSE platform and
hired a dedicated HSE BI Analyst. These enhancements provide greater
system access, stronger governance, and more robust data analytics.
In 2025, we were deeply saddened by the loss of two placemakers in
fatal accidents whilst at work. Both internal and external investigations
confirmed that, although these incidents occurred at work (and are
therefore classified as work-related) neither was caused by activities within
our defined scopes of work.
Following any incident, we always review our HSE management system
rigorously, leveraging lessons learned from investigations to reinforce our
HSE standards and strengthen operational controls. For the most serious
incidents, the Group CEO personally leads a Global Safety stand-down
with all Country Leadership Teams, ensuring that corrective actions are
systematically implemented across all country operations.
5
2
1
2023
2024
2025
3.1
2.9
3.0
2023
2024
2025
Target: < 2.5
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
OWN WORKFORCE
Equal treatment and opportunities
Reflecting our Employee Value Proposition (EVP), at ISS we
want to nurture an environment where everyone can be
their authentic true selves and be valued for exactly who
they are – no matter their age, gender, physical or mental
health, cultural background or sexual orientation. As part
of this, we want to give people the opportunity to make an
impact on their own personal development.
Our approach
Our Diversity, Inclusion and Belonging (DIB) efforts are essential to
bringing this to life.
We actively promote and advance DIB across the organisation through
dedicated resources and targeted initiatives. At its core, our DIB agenda
addresses discriminatory practices and behaviours and reflects a deliberate
commitment to avoiding any negative impact on our placemakers. It
also strengthens our access to talent by positioning us as a responsible
employer that both believes in and lives our EVP.
Upskilling is one of the strongest drivers of social mobility, enabling
employees the opportunity to realise their career aspirations and progress
into higher-paid, more fulfilling roles. At ISS, we are committed to the
continued delivery of recognised qualifications across service lines and
countries, focusing on training that drives career progression both within
and beyond ISS. Through our recognised qualifications programme, we
have committed to providing 350,000 placemakers and their families with
recognised qualifications by 2030 (total accumulated target).
Framework
and
policies
Our approach to equal treatment and opportunities is anchored around
a set of red lines following from our value-based principles that define
minimum behaviours and requirements that mitigate negative impacts
combined with behaviours and actions aimed at driving positive impact.
Our Group People & Culture function is overall responsible for our people
agenda with a dedicated sub-function, Group Diversity, Inclusion &
Belonging, responsible for our diversity, inclusion and belonging:
Setting and driving minimum requirements
Defining and executing actions and initiatives
Engaging with stakeholders
Ensuring equal treatment and opportunities is part of our people agenda
and rests on the same foundation for minimum requirements as our other
people related topics, including our mandatory training programme for
our Code of Conduct, see described on p. 77.
Our Code of Conduct and Global People Standards prohibit discrimination
and harassment, including discrimination based on cultural background
and ethnicity, race, age, gender, gender identity, disability, sexual
orientation, religious beliefs, language and education or other
characteristics such as professional skills, working style, location and
life experiences. Further, our Global People Standards prescribe equal
opportunities as a principle to be respected in regard to recruitment,
compensation, access to training, promotion, termination, and retirement.
Our Diversity, Inclusion & Belonging policy provides a common global
framework and governance to support our commitment to a global
diversity, inclusion and belonging agenda. It promotes and drives a culture
that actively values diversity and inclusion at all levels of the organisation
and provides an environment of equal opportunity.
ESRS S1: Equal treatment and opportunity for all
Through our recruitment, promotion, remuneration and
people-management practices as a large global employer,
we can positively impact equal treatment and opportunity
by providing fair access to employment, development and
career progression to diverse employees, including less
robust or vulnerable groups, thereby supporting their
economic security and social mobility.
Conversely, if these processes are biased or inconsistently
applied, they can lead to discrimination in hiring, pay and
advancement, undermining the rights and wellbeing of affected
employees and contributing to broader societal inequities. Such
shortcomings also generate risks for us in the form of lower
employee engagement and retention, reduced innovation,
potential legal and regulatory actions, and reputational
damage, which may in turn affect productivity, our ability
to attract talent, and our financial results.
• Diversity, Inclusion & Belonging policy
• Code of Conduct
• Global People Standards
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Key
actions
Our focus on DIB is centred on five dimensions: Generation and Age; Pride;
Gender Balance, Abilities and Cultures; and Race and Ethnicity.
For years, we have consistently implemented targeted DIB actions across
all our countries to promote the themes within each of the five dimensions.
The driving force behind these initiatives is our dedicated Employee
Resource Groups (ERGs), established for each dimension. These groups
serve as forums for sharing and addressing topics and issues of particular
relevance to their communities, while also providing strong platforms for
raising awareness and sharing knowledge across the organisation. Each
ERG is sponsored by at least one Executive Group Management (EGM)
member and is run by volunteer employees.
To further support our work across the five dimensions, we partner with
organisations such as The Valuable 500, Tent, the All4Youth Alliance,
Workplace Pride, the ILO, the LEAD Network, and the Diversity Council
in Denmark.
In 2025, we continued driving our inclusion and belonging agenda through
concrete DIB activities. Examples of 2025 ERG activities are provided in the
box to the right.
Gender balance
We strongly believe that diversity, including gender balance, is a key driver
of innovation, improved organisational performance, and better service to
our customers.
Across our global workforce, gender representation is broadly balanced
at around 50/50, with women representing a majority in most countries.
In parts of the Asia & Pacific region, however, our highly people-intensive
security operations remain male-dominated due to cultural factors. As a
result, these operations offset what would otherwise be a female-skewed
global workforce, bringing overall representation closer to balance.
In 2025, we continued to focus on bringing more women into corporate
leadership roles through binding year-on-year progress targets and
tailored learning and development programmes. We continue to
strengthen our succession and mentoring programmes to accelerate
change. Partnering with external expert organisations, we bring the best
practice into action to ensure a gender balanced future for us at ISS.
Targets and progress
Corporate leadership gender balance
In management and leadership roles, we recognise the importance
of female role models and the value of diverse competencies and
perspectives. To support this, we have set a target of achieving a minimum
of 40% gender representation in corporate leadership by 2026. This target
is supported by positive actions outlined in our Diversity, Inclusion and
Belonging policy, including the identification of female candidates for
shortlists in vacant corporate leadership positions.
At 31 December 2025, female representation was 36% (2024: 35%).
Recognised qualifications
Through our Recognised qualifications programme, in 2022 we pledged
to provide 100,000 placemakers and their families with recognised
qualifications by 2025. As our initial target has already been exceeded, we
have increased our target to provide an additional 250,000 placemakers
and their family members with recognised qualifications by 2030, taking
the total target to 350,000 by 2030.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
Recognised qualifications is defined as a social mobility benefit
offered to our placemakers, providing them – and by extension
their families – with formally acknowledged skills and credentials
that support personal development.
A recognised qualification is generally achieved, registered, and
awarded through our Learning Management System (LMS). A
qualification is recorded in LMS when a placemaker successfully
completes an approved training session. The annual number
of recognised qualifications is determined by aggregating all
completed and recorded training sessions in the system for the
reporting period.
ERG
activities
2025
Generation and age
Partnering with secondary schools and various NGOs, ISS Hong
Kong continued its engagement in the SHINE@ISS programme,
which offers training, career opportunities, and mentoring support
to young people with special educational needs. Additionally, our
global ERG supported various mentoring programmes offered by
our partners, such as All4Youth, and created useful management
guides for our first-line managers.
Pride
Partnering with Workplace Pride, we continued to support Pride
and LGBTQIA+ inclusion through various activities. We also
supported our country organisations in the review of work policies,
with the aim of ensuring that they are inclusive and provide equal
opportunities for our LGBTQIA+ colleagues.
Gender balance
We continued collaboration with external partners such as the
LEAD Network and the UN (Women Empowerment Principles) to
share best practices and strengthen accountability.
Abilities
Partnering with Mobility Mojo, we continued to encourage
ISS Group, country organisations, and customers to complete
Accessibility Assessments and improve workplace accessibility. We
are proud to be the first workplace ever to achieve a Platinum score
for both our HUB office in Warsaw and our Shared Service office in
Gdańsk, Poland. We also launched a dedicated Inclusive Workplace
SharePoint site, serving as a central repository for key information,
guides, and tools to support accessible and inclusive offices.
Cultures, race and ethnicity
We continued our ERG-led, interactive global online sessions,
enabling colleagues across the organisation to be visible and
engage in discussions on equal opportunities at ISS. In addition,
we advanced our Inclusive Workplace global initiative, which
aims to recognise all employees and create inclusive workplaces
for everyone.
OWN WORKFORCE AND END-USERS
Data
privacy
As one of the largest employers in the world providing
services to thousands of customers globally, ISS processes
personal data on a daily basis. As a responsible employer
and service provider, ISS is committed to processing
personal data securely and efficiently across all its activities.
Protecting the integrity of personal data, whether of our
employees, customers or their users is of the utmost
importance to ISS.
Given the scale and global reach of its services, ISS manages a significant
amount of personal data, including sensitive information for employees
(such as in HR and payroll systems) and, where required, end-users (for
example, contact details and food allergy information in specific service
areas). However, the majority of end-user personal data processed is
not highly sensitive, and the majority of our core services do not require
processing of end-user data.
ISS manages personal data through a comprehensive three-line
defence model: 1) the global IT security team prevents unauthorised
external access; 2) the Legal data privacy team establishes and oversees
internal protocols; and 3) the P&C organisation develops and manages
people processes.
Data Protection Managers are appointed in every country of operation
to provide guidance on data processing, ensure effective mapping and
escalation for data breaches, and document and update processing
activities in OneTrust, the group privacy management system.
Data
privacy
ESRS S1: Other work-related rights (Privacy) (employees)
Material
risk
With more than 325,000 employees globally, we process
extensive personal and employment-related data about our
workforce as part of HR, payroll and operational systems.
Inadequate protection of these data exposes us to risks
of data breaches, non-compliance with labour and data
protection laws and employee grievances.
Such events can undermine employee trust and engagement
and result in regulatory penalties, claims for damages, higher
compliance and remediation costs, and potential disruption
to our operations, all of which may adversely affect our
financial performance and employer brand.
Our
key
policies
• Data & AI Ethics policy
• Group Data Protection policy
• Group Information Security policy
• Speak Up Policy
• Supplier Code of Conduct
• Supply Chain policy
• Supply Chain & Procurement policy
Data
privacy
ESRS S4: Informations-related impacts for consumers
and/or end-users (Privacy)
Material
risk
In delivering our services, we interact daily with millions
of end-users and often process their personal data, either
under contract or as an inherent part of our service delivery.
If our data handling practices, IT systems and third-party
arrangements do not ensure robust privacy and security,
there is a risk of unauthorised access, misuse or loss of
personal data, which can harm individuals’ privacy and trust.
For us, such incidents can lead to operational disruptions,
regulatory investigations and fines, remediation and
notification costs, litigation, and reputational damage,
potentially affecting customer relationships, future contract
awards, and our overall financial performance.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DMA
and
IROs
Based on our Double Materiality Assessment (DMA),
data privacy has been identified as material topics
for both our employees and for consumers/end-
users (see p. 34). However as our our data privacy
policies, governance framework, and personal data
management practices are applied consistently
across both groups, both are disclosed in a single,
combined section.
Policies
Data privacy, data ethics, and information security are integral to daily
operations at ISS. We operate within the framework of the Data Ethics & AI
Policy, Data Protection Policy, and Group Information Security Policy. These
are supported by the Group Data Privacy & Legal Compliance team and the
Group Information Security function, along with local Data Protection and
Information Security Managers in each country where ISS operates. When
services require access to end-user data, ISS collaborates with customers
to confirm that purpose, access, and retention are appropriate and legal,
while expectations for third parties are managed through Supply Chain &
Procurement policies.
The Data Ethics & AI Policy, aligned with the Charter of Fundamental Rights
of the European Union, encompasses principles on self-determination,
human dignity, responsibility, equality and fairness, progressiveness,
diversity and inclusion, and accountability. It applies organisation-wide to
employees as well as suppliers and business partners with access to data
on behalf of, or in collaboration with, ISS.
The Data Protection Policy, owned by the Group Legal function, requires
adherence to the principles of the EU General Data Protection Regulation,
and to higher standards where mandated by local law, including data
protection, transfer of personal data, data breach management, training,
and assurance. The Group Information Security Policy ensures IT ecosystem
integrity and prevents unauthorised access through an information security
management system aligned with ISO27001:2022 and documented
organisational, personnel, physical, and technological controls.
Processes to remediate negative impacts and channels
for employees to raise concerns
Procedures are in place for handling and managing personal data,
including incident management for data breaches, notifications to affected
individuals (either employees or customers), supporting data subject
access requests, and implementing corrective actions.
Concerns can also be raised via the whistleblower channel, Speak Up,
available organisation-wide and for external third parties, including end-
users, though typically end-users raise privacy concerns through their
employer (our customer). In 2025, there were 11 reports via this channel
regarding data protection concerns (2024: 5). For more details on our
whistleblower channel and Speak Up policy, see Corporate culture, p. 77.
Key
actions
ISS reinforces governance around data processing and information
security, alongside comprehensive training activities. Data Protection
Managers support ongoing data mapping, breach management, and
documentation in the global privacy management system. Mandatory
training in data protection and information security is assigned in our
digital Learning Management System based on role and risk exposure
(notably within HR, IT, Commercial and Operations teams, as well as people
leaders) and is retaken annually. Training completion rates are tracked to
ensure effectiveness. Our information security operations are managed
by a dedicated central team within our Global IT function, operating our
information security management system, globally. Information security
training is mandatory for over 40,000 employees.
Targets and progress
We have not set formal targets related to data privacy for either own
workforce or consumers and end-users. Instead, our focus is on ensuring
full adherence to our policies and governance standards.
Our data protection framework and controls are designed to meet relevant
legal requirements and prevent breaches, thereby minimising potential
negative impacts risk.
Performance is monitored through policy adherence, completion of
mandatory data protection and information security training for relevant
roles, incident management processes, corrective actions, and customer
assurance activities where applicable. We actively track training progress,
and our statistics show strong coverage across our workforce.
Because most end-user data is processed under customer instructions
and embedded within customer-specific controls, establishing quantitative
targets is not considered relevant. Our priority remains maintaining robust
compliance and consistently upholding high standards of data protection
across all operations.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
SUPPLIERS
AND
SUBCONTRACTORS
Working
conditions
As a result of our strategic choice to primarily self-deliver
our services, our business model is centred around our
own workforce. Yet, we still rely on a robust supply chain for
goods and services associated with our service performance.
Our supply chain can largely be split in two categories. One part is the
traditional supply chain that supplies consumables, goods and equipment
needed in our own service performance such as manufacturers of cleaning
detergents and equipment, uniforms and food producers. The other
category is our subcontractors that generally perform services of a same
or similar nature as our own facility services. In the following the term
“suppliers” is used to collectively refer to suppliers and subcontractors,
unless otherwise specified.
In engaging with our value chain and managing IROs, we do not
distinguish between the two supply chain categories, but we believe
that our ability to drive impact is more fluent or intrinsic in regard to
subcontractors. This is because we understand and acknowledge the
context of our subcontractors as colleagues within the facility service
industry and therefore often exposed to similar IROs as we are. On the
other hand, workers in the traditional supply chain category are exposed to
typical impacts associated with their respective industry and geography.
This materialises in the material impacts identified for our supply chain
workers in relation to working conditions, including occupational Health &
Safety, which is addressed on p. 48, and other work-related rights, which is
addressed on p. 57.
Policies
Our Supplier Code of Conduct and our Supply Chain Policy specify the
minimum requirements that all suppliers must adhere to. These include
standards on working conditions, including health and safety, equal
treatment and human rights. Suppliers comply either by signing up to the
ISS Supplier Code of Conduct or by having own standards and policies in
place that meet at least the same standard as ISS.
It also defines our expectations that suppliers operate in line with
international standards such as the UN Guiding Principles on Business and
Human Rights.
In our Supplier Code of Conduct, which is referenced in our standard terms
and conditions, we retain the right to terminate our business relationship
with suppliers that do not comply with our requirements.
Key
actions
We believe that our key contribution towards supply chain workers is
achieved by setting a positive example through our own people practices
and by pushing minimum standards or red lines for supplier behaviours.
This helps to protect workers in the value chain against negative impacts,
but also provide encouragement to suppliers to adopt practices that can
improve working conditions and create positive impacts.
While we strive to uphold high standards, our business relationships with
suppliers may still indirectly contribute to negative impacts on supply chain
workers. Our actions to address these potential indirect negative impacts
are centred around supply chain due diligence and assurance practices
deployed through our global Supply Chain & Procurement function. Our
global procurement approach does not currently include programmes
specifically designed to generate positive impacts for supply chain workers.
The policies described above are supported by a detailed set of internal
procurement standards, setting out requirements that our procurement
and supplier engagement process must follow.
Working conditions
ESRS S2: Working conditions
Our use of suppliers and subcontractors can contribute to
situations where workers in our value chain face low wages,
excessive hours or unsafe conditions if our purchasing and
oversight practices do not adequately promote safe and fair
working conditions. This can negatively impact the health,
safety and livelihoods of value chain workers.
At the same time, weak labour standards in our value chain
create risks of supply disruptions, legal liabilities, customer
and investor scrutiny and damage to our brand, which
can affect our ability to win and retain contracts, increase
compliance and remediation costs and ultimately impact
our financial performance and access to certain markets.
• Supplier Code of Conduct
• Supply Chain policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Risk assessment and vetting of suppliers
A core element of our approach is the risk categorisation of our suppliers.
The assessment considers the type of goods and services and the
environment in which they are delivered as well as geographical risks and
potential customer impact. Based on these criteria suppliers are classified
as high, medium and low risk, which determines the activities to be
undertaken during each supplier lifecycle phase, i.e. vetting, contracting,
on-boarding, operations and off-boarding.
Except for certain very low risk categories such as legal fees, road fees,
taxes and utilities, all suppliers are subject to vetting requirements.
This includes a supplier self-assessment covering among others
acknowledgement of compliance with our fundamental policies, local
law and regulations, respect for human rights, labour law rights and
fundamental freedom conventions.
Self-assessments are reviewed by a dedicated ISS supplier vetting team that
raises any identified concerns to Supply Chain & Procurement at local or
Group level for decision on required remediating action or supplier rejection.
Periodic reassessment is performed with high-risk suppliers being
reassessed annually. In 2025, approximately 1% (2024: 1%) of potential new
suppliers were rejected due to non-compliance with our requirements.
Actions throughout the supplier life cycle
As part of the contracting phase, all suppliers are required to formally sign
up to the ISS Supplier Code of Conduct.
On-boarding covers training and work permit requirements. Training
requirements distinguish between legally required training applicable to
all suppliers and risk-based training applicable to medium- and high-risk
suppliers. Where service performance involves high-risk services at customer
sites, mandatory training of the supplier and its personnel is conducted in
regard to site-specific Health & Safety requirements to mitigate potential
negative Health & Safety impacts on supply chain workers.
As part of our ongoing operating activities, audits are performed through
risk-based reviews by Group Internal Audit, which may include testing of
selected suppliers, and through independent third-party supplier audits.
In selecting the sample and determining the audit method, the type of
goods and service performance is considered. For example, independent
third-party audits are required in regard to GDPR and cyber-security for
suppliers handling confidential or personal data.
Incident management is also an integral part of all supplier relationships,
ensuring that potential impacts on supply chain workers are identified,
addressed and actioned with the relevant supplier.
Off-boarding activities are aimed at ensuring continuity of operations and
proper handling of sensitive or confidential information when supplier
relationships expire.
Group Internal Audit (GIA)
Our baseline audit programme conducted by GIA provides internal
assurance on the application and effectiveness of key elements of our
supplier vetting and contracting requirements. For further details, see p. 78.
Speak
Up
Our process for managing concerns raised by supply chain workers follows
the principles of our Speak Up Policy with necessary adjustments to involve
relevant supply chain member in investigation and remediation process.
The fundamental safeguards of the policy in regard to non-retaliation and
confidentiality also apply to concerns raised by supply chain workers.
Through our commitment to the UN Guiding Principles on Business and
Human Rights and our Supplier Code of Conduct, we also promote the
establishment of suppliers’ own channels through which supply chain
workers can raise concerns. For details on our Speak Up Policy and process,
see p. 78. In 2025, we did not receive any reports (2024: no reports) of
severe human rights issues in our supply chain.
We do not have an established framework for providing support in or to
remedial action for negative impacts to supply chain workers, but we may
on an ad-hoc basis offer for example insights or access to key internal
resources as part of remediation. Ultimately, we do however retain our
right to terminate suppliers that do not adequately address appropriate
remediation actions.
Targets and progress
Our actions to mitigate negative impacts to supply chain workers described
above are applicable across our operations and the metrics used to track
their effectiveness are considered appropriate. We have therefore not set,
and do not currently plan to set, specific targets in this area.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
SUPPLIERS
AND
SUBCONTRACTORS
Forced
labour
and
child
labour
Working across industries in a diverse and large value-
chain there is a need to uphold and enforce safeguards on
basic work-related rights such as child and forced labour,
particularly where such industries are people intensive or
have known displays of violations.
The latest International Labour Organisation (ILO) reports identify child
labour as predominantly centred around agriculture whereas forced labour
is mostly present within the industry sector and the service sector.
While we have not identified concrete incidents in relation to child labour
or forced labour within our value chain, we recognise its generic risk
character and are committed to upholding and promoting human rights,
including requiring our selected suppliers to commit to the same standards
as ourselves.
Policies
Our Supplier Code of Conduct and our Supply Chain Policy specify the
minimum requirements that all suppliers and subcontractors must
acknowledge and adhere to, including defining our expectations that
suppliers operate in line with international standards such as the UN
Guiding Principles on Business and Human Rights. Human trafficking,
forced labour and child labour are explicitly addressed in both the Supplier
Code of Conduct and the Supply Chain policy, and require suppliers to
establish and maintain due diligence processes for these severe human
rights risks.
For further details on our Supplier Code of Conduct and our Supply Chain
policy, see p. 55.
Key
actions
Our approach to managing our supply chain, including IROs related to
supply chain workers, comprise several elements, the core of which are
supplier risk assessment and vetting, training activities, and supplier audits
as described in Working conditions (suppliers and subcontractors), p. 55.
Targets and progress
We have not set formal targets related to forced labour and child labour.
However, we strive for full adherence to our policies.
ESRS S2: Other work-related rights
risks
Our diverse and global value chain spans industries and
geographies where basic work-related rights, including
the prohibition of child labour and forced labour, may be
at higher risk of violation, particularly in people-intensive
sectors or regions with weak enforcement.
If our supplier selection, contracting and monitoring do
not sufficiently prevent and address such abuses, we face
the risk of being linked to severe human rights violations
affecting workers’ safety, freedom and dignity. This can
trigger legal and regulatory consequences, customer
and investor pressure, costly remediation efforts and
reputational damage, potentially leading to the loss of
business, exclusion from tenders and increased costs
associated with tightening controls and changing suppliers.
• Global People Standards
• Code of Conduct
• Supplier Code of Conduct
• Supply Chain policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
1
Characteristics
of
our
employees
Employees by region
(number)
2025
2024
Northern Europe
62,384
19%
65,042
20%
Central & Southern Europe
110,474
34%
106,218
33%
Asia & Pacific
127,338
39%
125,208
38%
Americas
24,452
8%
28,376
9%
Other
1,880
0%
1,639
0%
Total
326,528
100%
326,483
100%
By full/part time
Full time
256,006
78%
257,966
79%
Part time
70,522
22%
68,517
21%
By type
Placemaker
304,277
93%
304,913
93%
Support staff
22,251
7%
21,570
7%
Employees by contract type and gender
(number) Male Female Total
2024
Permanent
151,334
137,852
289,186
89%
Temporary
12,880
14,893
27,773
8%
Non-guaranteed hours
4,122
5,402
9,524
3%
Total
168,336
158,147
326,483
100%
At 31 December 2025, no employees were reported in the “Other” or “Not
reported” categories (2024: None).
In brief
Our business
Characteristics of our employees
Characteristics of non-employees
Collective bargaining and social dialogue
Diversity
Adequate wages
Persons with disabilities
Training and skills development
Health & Safety
Remuneration
Performance
Governance
Sustainability
statement
Financial
statements
policy
People data is generally recorded and reported from people and/or
payroll systems in countries.
Number of employees are the number of headcounts of full- and
part-time, at the reporting date. Full-time employees work a
minimum of 30 hours a week.
Employees comprise placemakers and support staff. Placemakers
provide services directly to customers, while support staff perform
management and support functions. Permanent employees hold
open-ended employment contracts while temporary employees
are engaged on fixed-term contracts. Non-guaranteed hours
employees are not entitled to a minimum number of work hours.
Breakdown by gender represents the number of male, female and
other. Our consolidation system allows countries to voluntarily
report employees that identify as other than male or female. When
necessary for reporting purposes “other” employees are allocated
as male or female on a pro-rated country basis. In other reporting
categories, such as training hours, gender is not a pre-set recording
dimension for data privacy reasons and gender breakdowns will
therefore often be based on gender distribution assumptions.
The turnover rate measures leavers (involuntary) and resignations
(voluntary) during the reporting period relative to the average
number of employees.
At ISS, employee turnover is monitored based on leavers and
resignations as these are typically driven by factors that we
can influence operationally. This metric has also been reported
externally as a KPI for many years.
2025
Permanent
146,656
138,743
285,399
87%
Temporary
13,802
14,310
28,112
9%
Non-guaranteed hours
6,532
6,485
13,017
4%
Total
166,990
159,538
326,528
100%
policy
Collective bargaining coverage and social dialogue measures the
number of employees covered by collective bargaining agreements
relative to the total number of employees at the reporting date.
Social dialogue reporting requirements are determined on the
basis of Q3 people reporting.
Major countries are those accounting for more than 10% of Group
employees. For an overview of employee by countries, see the 2025
Annual Report of ISS A/S p. 37.
1
Characteristics of our employees
(continued)
3 Collective bargaining and social dialogue
Collective bargaining coverage and social dialogue
Collective
bargaining
coverage
1)
Social
dialogue
1)
Workplace
4
Diversity
Gender balance – Corporate leadership
(number) 2025 2024
2
Characteristics
of
non-employees
(Coverage rate)
Countries
EEA
Regions
Non-EEA
countries
representation
EEA
countries
1)
Disclosures cover countries with at least 50 employees and at least 10% of the Group’s employees.
Collective bargaining and social dialogue is influenced by local practices
and legislation. We adhere to legal requirements of the markets in which
we operate and actively promote the right to collective bargaining. Our
European Works Council has for many years been an important partner for
social dialogue and engagement.
In 2025, 57% (2024: 56%) of our employees across the Group are covered
by collective bargaining agreements with Northern Europe having the
highest coverage ratio across the regions.
Employees in EEA countries
Total number of employee in EEA countries was 91,894 corresponding to
28% of total employees (2024: 87,984 or 27%). No single EEA country within
the Group accounts for more than 10% of the Group’s employees.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
Non-employees comprise consultants and temporary workers
engaged through temp agencies, typically for short-term support
such as for holiday and other absence cover, events or transition
support. Non-employees also include self-employed consultants
(engaged on a limited basis), mainly to support corporate and
management activities.
Non-employees are normalised to a full-time-equivalent value
using a standard work year of 2,000 hours to provide a comparison
base to our own employees. Where headcount and actual hours
are not recorded, an estimation is provided based on a spend
conversion ratio.
policy
Corporate leadership comprises the Board of Directors, Executive
Group Management, their direct reports, Country Leadership
Teams and direct reports to those teams at the reporting date.
In 2025, female representation in corporate leadership for 2024
was restated from 37% to 35% following updated data. Revised
data shows 651 males (65%) and 357 females (35%), compared to
previously 748 males (63%) and 436 females (37%).
Male
631
64%
651
65%
Female
355
36%
357
35%
Total
986
100%
1,008
100%
0-19%
n/a
Other
n/a
20-39%
n/a
n/a
40-59%
n/a
Asia & Pacific
Central
&
Southern
Europe
n/a
60-79%
n/a
Northern Europe
Americas
n/a
80-100%
n/a
n/a
Employee turnover
(average)
2025
2024
Leavers and resignations (ISS KPI)
95,401
30%
106,523
32%
Leavers, resignations,
retirements and deaths
99,767
31%
111,633
34%
Non-employees
(number)
2025
2024
Non-employees
10,096
10,693
Gender balance – Own workforce
2025
2024
Total own employees
326,528
326,483
Male
51%
52%
Female
49%
48%
Total
placemakers
304,277
304,913
Male
51%
51%
Female
49%
49%
Total support staff
22,251
21,570
Male
56%
56%
Female
44%
44%
4 Diversity
(continued)
6 Persons with disabilities
7 Training and skills development
Persons with disabilities
(number)
2025
2024
Persons with disabilities
9,469
7,092
of total employees
3%
2%
5 Adequate wages
All employees are paid at least an adequate wage in accordance with
applicable minimum wage or collective bargaining requirements.
Legal restrictions and privacy concerns are considered to significantly
impact the accuracy and completeness of reporting.
Training hours
2025
2024
(number)
Total
hours
Avg. per
employee
Total
hours
Avg. per
employee
Male
2,125,846
12.9
2,170,267
12.6
Female
1,528,789
9.8
1,419,014
8.9
Total
3,654,635
11.4
3,589,281
10.8
The difference in training hours between males and females is driven by
India that provide above Group average training hours to employees with
a significant overweight of male employees in India. Not all training hours
are recorded by gender due to GDPR. Consequently, not recorded training
hours are allocated on a pro-rata basis by country.
policy
Performance reviews cover career and performance reviews that
form part of a formalised appraisal framework mandated by for
example Group or local policies. Metric is calculated relative to the
average number of employees.
Training hours includes all training activities for ISS employees
related to their employment with ISS, whether conducted during
work hours or paid by ISS. This covers classroom, on-site, online,
or at home-based training, including preparation time and exams.
Training hours are recorded in learning and development systems
or calculated based on participation data, and the average is
calculated relative to the average number of employees.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
Adequate wage in a country is determined in one of the following ways:
1) For EEA countries the adequate wage level is defined in EU
Directive 2022/2041. Until the directive enters into force the adequate
wage level shall equal (i) the applicable minimum wage set by law
or collective agreement or – if that does not exist – (ii) the adequate
wage benchmark from a neighbouring country with a similar socio-
economic structure or 50% of the gross average wage of the country.
2)
a. the wage level established in any existing international, national
or sub-national legislation, official norms or collective agreements,
based on an assessment of a wage level needed for a decent
standard of living;
b. if that does not exist, any national or sub-national minimum wage
established by legislation or collective bargaining;
c. if that does not exist, any benchmark that meets the criteria set out
by the Sustainable Trade Initiative (IDH) (Roadmap on Living Wages
- A Platform to Secure Living Wages in Supply Chains), including
applicable benchmarks aligned with the Anker methodology, or
provided by the Wage Indicator Foundation or Fair Wage Network,
provided the primacy of collective bargaining for the establishment
of terms and conditions of employment is ensured.
policy
Persons with disabilities are defined as persons who have long-
term physical, mental, intellectual or sensory impairments which in
interaction with various barriers may hinder their full and effective
participation in society on an equal basis with others. The metric
is calculated relative to the number of employees at the reporting
date. Privacy regulation, including GDPR, may hinder or impair
the possibility to collect and store information necessary for
reporting purposes. Furthermore, information is to a large extent
dependent on self-declaration by employees, which is a personal
privacy matter. At ISS, we intend to provide safe and inclusive
environments for supporting transparency on disabilities, but fully
accept and support that this is a personal right and decision of each
employee. Consequently, the reporting on disabilities is associated
with significant uncertainty.
Age distribution
(%)
2025
2024
< 30 years
64,538
20%
72,219
22%
30-50 years
160,176
49%
157,626
48%
> 50 years
101,814
31%
96,638
30%
Total
326,528
100%
326,483
100%
Performance reviews
2025
2024
(appraisals per headcount)
Planned
Performed
Planned
Performed
Male
0.55
0.46
0.49
0.37
Female
0.60
0.51
0.54
0.40
Total
0.58
0.48
0.51
0.39
8 Health & Safety
Lost work days and work-related accidents
2025
2024
(number)
Employees
Non-
employees
Employees
Non-
employees
Lost Time Injury Frequency (LTIF)
(incident frequency)
2025
2024
LTIF
3.0
2.9
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
Lost workdays counts the number of calendar days where an
employee is incapable of working as a result of a work-related
accident. Work-days are counted in full days and does not include
the day of the accident or incident and ends with the last full day
of non-work for ISS. We have for many years internally reported
on lost work hours, which follows a similar principle, but does
not count weekends or unscheduled work days. Where relevant,
conversion from lost work hours to lost work days is done at a
factor of 4.3 hours per day. Health & Safety data is recorded in our
dedicated Health & Safety management system “Velocity”.
Work-related accidents (recordable) comprise fatalities, lost-time
injuries, permanent total disabilities, restricted work cases, medical
treatment cases and occupational illness cases (except for non-
employees and contractor employees). The rate of work-related
accidents (recordable) is calculated relative to the total exposure
hours and multiplied by 1,000,000. Total exposure hours for our
own employees are recorded or calculated as actual work hours
from time and attendance systems, people management systems
and payroll systems. Total exposure hours for non-employees are
calculated by multiplying the number of non-employees with a
standard work year of 2,000 hours.
Fatality means a work-related incident or work-related ill health
leading to the death of an employee, temporary worker, agency
worker and contract personnel and personnel of contractors
delivering our services and working under our instruction authority.
Lost Time Injury Frequency (LTIF) is calculated as the number of
work-related injuries or illness that result in work incapability over
and above the day the incident occurred, relative to total exposure
hours and multiplied by 1,000,000. The calculated numbers
includes employees, non-employees and contractor employees.
Lost work days
45,411
-
41,216
-
Work-related accidents, total
3,836
20
3,916
29
Work-related accidents, rate
6
1
6
1
Hereof:
Fatalities
2
-
1
-
Occupational illness cases
102
-
97
-
9
Remuneration
Gender pay gap Salary levels for our servicing placemakers across our
business are generally aligned to collective bargaining agreements or
statutory minimum wage levels that do not provide gender specific rates.
Our Global People Standards prescribe a remuneration principle of “equal
pay for equal work”.
CEO pay ratio For details on CEO remuneration, see 2025
Remuneration report.
Accounting
policy
Gender pay gap is calculated as the difference between the average
male and the average female hourly remuneration, divided by average
male hourly remuneration, multiplied by 100. Remuneration includes
gross remuneration for male and female employees in the year.
Average hourly remuneration is derived using a standardised working
year of 1,000 hours for part time employees and 2,000 hours full-time
employees. Remuneration related to employees who do not identify as
male or female is either excluded from the calculation or proportionally
allocated to male and female by relevant country.
Significant work is being undertaken to prepare for the EU Pay
Transparency Directive taking effect. The reporting obligations under ESRS
S1-16 pre-empts the EU Pay Transparency Directive, which is unhelpful.
CEO pay ratio (annual total remuneration ratio) is calculated as the ratio
between the annual awarded remuneration of the Group CEO to the
average annual remuneration of the remaining employees. The average
number of employees is normalised to full-time equivalents assuming
that two part-time employees equal one full-time employee.
Currently, ISS is not able to integrate salary data across the people and
payroll systems and countries to be able to determine the pay ratio on
a median basis. A relatively high CEO pay-ratio is a natural consequence
of our geographical composition of our workforce, differences in
purchasing power across countries and a Danish-based headquarter.
Our preparations for compliance with the EU Pay Transparency Directive
will continue during 2026 and are expected to improve our ability to use
median remuneration data in future reporting.
The remuneration considered for the Group CEO (highest-paid
employee) is based on the awarded amounts and reflects the cash value
of remuneration earned during the year. This includes base salary, non-
monetary benefits, short-term incentive programmes (STIP). In addition,
this includes long-term incentive programmes (LTIP) estimated at fair
value at 31 December, representing the shares expected to be received
upon vesting in March 2026. The LTIP value is calculated as the number
of shares to be received, if any, multiplied by the share price at 31
December of the reporting year.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Pay gap and remuneration ratio
2025
2024
Gender pay gap, %
(4)%
(4)%
CEO pay ratio, times
146
112
ENVIRONMENT
Reducing our impact
Our business model is centred on delivering integrated
facility services, a sector characterised by a relatively low
carbon intensity. Within our emissions profile, our food
services segment exhibits the highest intensity due to the
emissions associated with the food value chain. Along with
these, we also see emissions from our business activities,
including the use of vehicles, employee commuting, and
delivering services at our customers’ sites.
Leveraging our comprehensive insights into customers’ facilities
and operations, we are uniquely positioned to support them in their
decarbonisation journeys. This creates a win-win value proposition which
we will work to strengthen in both existing and new contracts.
Our climate commitment is therefore twofold: First, to manage and reduce
emissions generated by our own operations and throughout our supply
chain; and second, to actively assist our customers in lowering emissions
from their buildings and facilities.
We remain committed to our Net Zero targets. We aim to reach Net Zero
for Scope 1 and 2 by 2030 and Scope 3 by 2040. To do so, we have finalised
our Climate Transition Plan in 2025, which will guide our global actions to
further decarbonise ISS’s own operations and value chain.
Our approach underpins our value proposition and positions us as
a trusted partner in our customers’ transition to more sustainable
operations, reinforcing the resilience and long-term growth potential of
our business.
Environment
Reducing our impact
Climate change mitigation
Environmental data
EU taxonomy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Our
targets
Target
(tCO
2
e)
2019
baseline
(restated)
tCO
2
e
Reduction
Year
2025
progress
SBTi-
validated
Scope 1 & 2
Scope 3
98,745
1,983,430
52,829
1,436,003
46.5%
27.6%
2030
2030
19%
11%
Net
zero
Scope 1 & 2
Scope 3
98,745
1,983,430
9,875
1,061,135
>90%
46.5%
2030
2040
19%
11%
ENVIRONMENT
Climate
change
mitigation
Our approach to climate impact, risk, and opportunity is
led by our Global Climate Impact team. We embed climate
considerations into our strategy and day-to-day operations
to minimise risks, enhance resilience, and drive long-term
cost efficiency. In 2025, we finalised our Climate Transition
Plan, which outlines the actions and investments needed to
reach our SBTi and Net Zero targets and align our business
with the Paris Agreement.
Climate
transition
plan
ISS is a service organisation where people power is our primary
input. While this is the case, we still rely on a range of equipment and
consumables to provide services to our customers. This includes uniforms,
trolleys, cleaning products, vacuum cleaners and scrubbers for our
cleaning and technical services; food and kitchen equipment for our
canteen services; paper towels and hygiene products for our washroom
services; and standard office equipment such as laptops and office
furniture. On top of this, we have a large fleet of vehicles and leased
facilities to support across our services and run our business. While our
business model is relatively asset-light, these products contribute to GHG
emissions, and in 2025, we further developed and structured our Climate
Transition Plan (CTP) to reduce these emissions.
Scope 1 emissions represent 3% and are primarily caused by the
combustion of fossil fuels in our vehicles. Scope 2 emissions represent
less than 1% and are related to energy used in our corporate offices. Our
business’ primary impact is seen from Scope 3 emissions, which account
for less than 97% of total emissions. These mainly arise from equipment
and consumables, the delivery of our services at customers (use of sold
products), and employee commuting.
In 2022, we established targets to minimise the environmental impact of
our business activities and joined our industry counterparts and the global
business community to combat climate change and explore collaborative
and innovative solutions to address escalating climate risks.
In 2025, we built on this commitment by finalising our CTP to reach our
SBTi and Net Zero targets for ISS globally and align our business with the
Paris Agreement. For an overview of targets, see p. 63.
A formalised CTP represents an important step towards transitioning
our operations, services, purchases and self-delivery model to align with
a low-carbon economy and reduce our environmental footprint. It has
been developed from input received from a broad range of people across
multiple group functions in ISS, supported by external experts, and brings
together their insights, best practice cases, and available data.
Climate transition planning is not a one-time exercise nor a static tool.
Instead, it is a continuous, dynamic, and iterative process. We will therefore
keep refining the plan as our data quality and completeness improves, as
we learn from implementation with customers, suppliers and employees,
and as we adapt to regulatory changes across our global operations.
We also plan to update our emission baselines and realign our targets
accordingly to maintain credibility and alignment with SBTi requirements.
For a comprehensive overview of our emission reduction targets, the key
decarbonisation levers we are deploying, and the investments supporting
these efforts, please refer to Key actions, in relation to climate change
policies and Targets and progress, related to climate change mitigation and
adaptation.
To date, our decarbonisation efforts have been largely integrated within
our regular business operations and have not been allocated significant
increases in operating or capital investments. As we accelerate the pace of
our decarbonisation efforts, we remain mindful that we may see potential
cost implications across our operational activities and supply chain. We
therefore continue to assess the financial impact of our transition initiatives
as part of our ongoing planning and risk management processes.
ESRS E1: Climate change mitigation
Although most of our facility services are relatively
low-emitting, our overall operations, including energy use
in buildings, transport (including employee commuting)
and especially food services, contribute to greenhouse
gas emissions and thus to climate change, with associated
negative impacts on ecosystems, communities and
future generations.
If we do not adequately reduce our emissions and adapt
our services, we face transition risks from evolving
regulation, carbon pricing, and customer expectations, as
well as potential physical risks affecting our sites and supply
chains; these can result in higher operating and compliance
costs, reduced competitiveness in low-carbon tenders,
reputational damage, and potential impacts on revenues,
margins and access to finance.
• Sustainability policy
• Supply Chain & Procurement policy
• Supplier Code of Conduct
• ISS Climate Impact Standards
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Strategy alignment and implementation
Our CTP is embedded within and aligned to our overall strategy and financial
planning to ensure that climate considerations are integrated into decision-
making and resource allocation. The plan was developed by our Climate Impact
team, which is led by our CPTO (Group Chief People & Technology Officer), and
has been formally approved by both the Executive Group Management (the
EGM) and the Board of Directors (the Board), demonstrating strong commitment
and governance oversight. For Board oversight and EGM responsibility of
sustainability matters, see Sustainability governance structure p. 36.
Since the approval, implementation of our defined transition levers is well
underway, and we are executing on both the global priorities as well as actions
and initiatives identified locally. While we remain optimistic that some emission
reductions will be achieved organically, we need to be realistic regarding our
overall target completion. Successfully reaching our SBTi and Net Zero targets
will depend on technological advancements as well as establishing clear,
consistent principles to manage investment requirements and changes in
business practices. We outline our approach in Key actions in 2025.
Our Scope 1, 2 and 3 ambitions are therefore dependent on regulatory
intervention and technological progress. We welcome stronger local,
regional and global regulation that will level the playing field for
sustainable and renewable solutions.
Physical and transition climate risks
Physical climate risk
Our operations are generally low-emission and largely tied to our
customers’ physical locations, with limited asset dependencies due to our
asset-light business model. We face physical climate risks from increasing
extreme weather events, such as heavy rain, flooding, storms, and from
rising temperatures. These risks may disrupt our service delivery, but also
create opportunities, such as post-flood clean-up, where we can leverage
our existing capabilities.
Transition climate risk
We acknowledge the urgency of climate action and associated risks
stemming from external factors like infrastructure development and cost-
sharing uncertainties related to a just transition.
Potential carbon taxes pose risks but are mitigated by our ability to pass
on costs to customers. Our downstream customer base shows limited
transition risk, while their transition needs provide business opportunities
in energy management and technical services.
We do not consider any significant carbon emission to be locked-in nor
for any significant portion of assets to be considered as stranded. This is
a result of our asset-light business model and the structure and relatively
short term of the contractual relationships of our right of use assets,
primarily vehicles and corporate facilities.
Resilience analysis
In 2021, we completed a climate resilience analysis covering impacts, risks,
and opportunities (IROs) across our value chain, involving internal experts
and external consultants, and refined in 2023 to include financial impact
modelling. We assessed two climate scenarios over short-, medium-, and
long-term horizons:
1
low-carbon (SSP1 2.6), reflecting moderate warming and increased
sustainability practices; and
2
high-carbon (SSP5 8.5), with continued fossil fuel dependency and
significant warming.
These scenarios enable us to understand exposure to climate risks and
potential financial impacts, supporting our transition planning. The
identification and assessment of climate-related IROs are fully integrated
into our enterprise risk management process, ensuring these are
systematically reviewed and reported annually to senior leadership and the
Board of Directors.
Our understanding of how climate-related IROs interact with our
strategy and business model is evolving, reinforcing the robustness of
our decarbonisation efforts, with ongoing work to fully embed climate
considerations throughout the business.
(ktCO
2
e)
2,200
2,000
1,800
1,600
1,400
1,200
1,000
2,082.2
(36.6)
(9.3)
(117)
(45.2)
(9.7)
(43.7)
0
(331.9)
1,488.8
Scope 1
Scope 2
Scope 3
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Policies
Our Sustainability policy sets our overall direction and approach on
sustainability, including on climate change. The policy addresses climate
change mitigation through our actions on decarbonisation, including our
Net Zero journey. We outline our high-level approach to resource efficiency,
minimising our impact from food and food waste, cleaning services, vehicles
and how we work with suppliers. It applies across all our operations,
employees, and customers, globally.
EU Taxonomy alignment and EU Paris-aligned benchmarks
While some ISS business activities are eligible under the EU Taxonomy
framework and are reported in the EU Taxonomy tables, these represent
an immaterial portion of our operations. Consequently, we have not
been able to align our financials to the EU Taxonomy criteria and do not
plan to align them in the near future. We are not excluded from the EU
Paris-aligned Benchmarks.
Climate Impact standards
Along with our policies, the ISS standard on Climate Impact guides our internal,
day-to-day approach to climate change and decarbonisation. The standard
outlines our framework to reduce emissions and meet our decarbonisation
targets, defines roles and responsibilities across the organisation, from global
teams to individual employees, emphasises the importance of data-driven
actions, and the implementation of actionable decarbonisation levers. The
Standard also stresses the importance of stakeholder engagement, compliance
with legal and voluntary frameworks, and continuous improvement through
monitoring and reporting. The Standard is approved by the Director of Group
Operations, Risk, HSEQ and Climate Impact.
Supply chain policies
Our environmental impact is from our own operations, as well as from
the products and services we buy. That is why the Sustainability policy is
supported by our Supply Chain and Procurement policy and our Supplier
Code of Conduct. These are aimed at guiding our interactions with our
suppliers and cover our expectations around the environmental impact of
the products and services we buy. In particular, we expect our suppliers
to mirror our own emissions reductions ambitions, have environmental
targets and a documented emissions reduction plan. For our strategic
suppliers, we expect more. ISS expects that by 2026, these suppliers
should adopt Net Zero and Science-Based commitments, a detailed and
documented emissions reduction plan, report publicly on their emissions
footprint, and mirror these commitments in their own supply chain.
Through these stringent expectations of our suppliers, we believe we can
work collaboratively to reduce our environmental impacts.
Scope 1: 3%
Scope 2: <1%
Scope 3: <97%
26% Service delivery (category 11)
20% Food (category 1)
20% Employee commuting (category 7)
16% Subcontracting (category 1)
6% Cleaning detergents and materials (category 1)
12% Other (categories 1 (not included above),
2, 3, 4, 5, 6, 12 and 15)
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Targets
GHG reductions targets
ISS has set near-term emission reduction targets for Scope 1, 2, and 3,
validated by the Science-Based Target initiative. Beyond these validated
targets, we have also committed to achieve Net Zero emissions to align
with the principles of the Paris Agreement’s goal of limiting global warming
to 1.5 degrees Celsius. Both our Science-Based and Net Zero targets are
measured against a 2019 baseline.
Our Net Zero targets assume an absolute reduction of at least 90% of our
carbon emissions for Scope 1 and 2 and 46.5% for Scope 3, meaning a
maximum of 10% can be offset. These targets are absolute, meaning they
do not adjust for future business developments.
ISS is fully committed to achieving our GHG emissions reduction targets.
While our progress is often dependent on external factors, such as our
customers’ renewable energy strategies or suppliers’ emissions for
purchased products, we believe our 2030 SBTi targets remain achievable.
While we remain committed to our Net Zero ambitions, we acknowledge
that achieving Net Zero for Scope 1 and 2 emissions by 2030 will prove
challenging due to significant cost and operational challenges. We
recognise that these constraints may require us to consider deferring
our Net Zero target for Scope 1 and 2 emissions to 2040. For 2025-2026,
ISS will uphold our current Scope 1 and 2 Net Zero target as we remain
optimistic about future developments and the rapid pace of innovation
in decarbonisation technologies. We refresh our baseline and targets by
latest 2028, and as part of our ongoing commitment to transparent and
science-aligned climate action, we will also re-assess the feasibility of
meeting the Net Zero Target.
Topic-specific
targets
To support our GHG emissions reductions targets, ISS have committed
to topic-specific targets. Firstly, we have set a target to transition our
fleet of vehicles to zero-emission vehicles by 2030. We have also signed
the Cool Food Pledge, which reinforces our commitment to reduce
emissions related to the food we serve. Under this pledge, we have set
targets to reduce food-related emissions from buying food and food
waste, contributing both to emission reductions and resource efficiency.
We report our progress annually to the Cool Food Pledge organisation,
ensuring transparency and accountability.
Key
actions
The CTP outlines our actions and resources required to meet our climate
targets. Aligned with our GHG emission reduction targets, we have
identified decarbonisation levers across our operations and value chain,
targeting emissions across all scopes:
• Scope 1: Switching to low- and zero-emission vehicles while promoting
efficient driving, right-sizing and optimising fleet utilisation
• Scope 2: Switching to renewable electricity through market-based
mechanisms such as renewable energy certificates and guarantees of
origin, alongside engaging landlords; and
• Scope 3: Due to complexity and external dependencies, reducing Scope
3 emissions requires broad action, including collaboration with suppliers,
customers and employees to drive behavioural change, improve data
quality, and implement targeted initiatives.
In addition to the levers and actions identified we rely on external
circumstances such as technology development and deployment, energy
infrastructure build-out and local, regional and global policy developments.
– progress
Scope 1
19%
1%
(baseline) 2024
2025
Scope 2
19%
(baseline) 2024
2025
Scope 3
(baseline) 2024
2025
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Scope
1
–
Actions
With around 17,500 vehicles across the globe, our fleet is by far the
largest carbon emission source within Scope 1. We plan to reduce Scope 1
emissions through two decarbonisation levers.
Switching to low-emission or zero-emission vehicles
To reduce our combustion of fossil fuels, we are committed to replacing
diesel and petrol vehicles with low- and zero-emission alternatives. This
includes hybrid and fully electric vehicles, and we are also exploring
emerging technologies such as hydrogen fuel cells.
We acknowledge that achieving our 2030 Scope 1 targets depends on several
external factors beyond our direct control, including the availability of electric
vehicles for commercial use and adequate charging infrastructure. As electrical
vehicle and battery technologies continues to evolve rapidly, it would be
imprudent to base our 2030 strategy solely on current technology. While this
creates a degree of risk to our target delivery, we remain confident that future
technology advancements will enable realistic achievement of our target.
Operating expenses for our decarbonisation journey mainly relate to
central and local people resources that drive and manage decarbonisation
activities. While these responsibilities are typically embedded in broader
operational or business responsibilities, our Global Climate Impact team –
supported by country decarbonisation managers and central supply chain
resources – includes fully or partially dedicated roles. A not insignificant
portion of our 2025 CapEx relates to transition of our vehicle fleet to
electric. As we progress, emission-neutral vehicles will account for an
increasing proportion of vehicle-related CapEx.
Instilling low-emission driving through training
Complementing the fleet transition, we are rolling out training
programmes to instil efficient and low-emission driving techniques
among our drivers. This includes promoting smooth acceleration, steady
speeds, and proper vehicle maintenance to reduce fuel consumption and
emissions. While we expect the emissions reductions from this initiative
to be minor, we believe behavioural change in our own organisation is a
crucial step in a holistic and successful green transition.
Scope 1 – Progress on targets
Complementing the fleet transition, we are rolling out driver training
programmes to promote efficient, low-emission driving techniques,
including smooth acceleration, steady speeds, and proper vehicle
maintenance. While the expected emission reductions are minor, we
believe behavioural change within our organisation is a crucial element of
a holistic and successful green transition.
Scope
2
–
Actions
Our Scope 2 emissions make up less than 1% of our total emissions and
primarily relate to our corporate buildings where management and our
support staff work. We plan to reduce Scope 2 emissions through two
decarbonisation levers.
Switching to renewable energy
As improving efficiency can only take us so far, ISS is also conscious of how
we purchase energy.
ISS consumes energy in our buildings and for our electric vehicles, and as we
transition our fleet from conventional to electric vehicles, we expect our energy
consumption will increase. To reduce our Scope 2 emissions, we recognise that
we will need to procure a greater share of renewable energy. ISS is sensitive to
the cost impact and availability of renewable energy across our global markets.
Where available, we assess the price point and cost difference between
renewable and non-renewable energy. As the price point becomes narrower
over time, we expect to be able to increase our purchasing of renewable energy.
Improving energy efficiency
We do not expect that activity levels or user behaviour will materially
change within our corporate buildings, which means that consumption
reduction must come from upgrading or improving the building
environment, primarily through improving energy efficiency.
As we generally lease our corporate buildings, these improvements
rely heavily on ISS engaging with our landlords to upgrade the building
environment and equipment, such as lighting and temperature control.
In 2026, we will seek to establish a local approach reducing energy-related
emissions, for example, through engagement with our landlords or our
energy procurement approach. This may include requirements for buildings to
transition away from fossil fuels used onsite or to commit to a Net Zero target.
Scope 2 – Progress on targets
Due to our initiatives, we have reduced Scope 2 emissions by 19% against
our 2019 baseline and remain committed to expanding renewable energy
sourcing and engaging landlords to meet our targets.
Despite our Scope 2 decarbonisations efforts, focus on improving energy
efficiency and various switches to renewable energy, market-based
emissions have increased by 12% in 2025 compared to 2024. In 2025,
25% of the energy we purchased was from renewable sources, up from
18% in 2024. We aim to increase this number in 2026 to help us meet our
emissions reduction targets.
Scope
3
–
Actions
Our Scope 3 emissions (approximately 97% of total emissions) can roughly
be split into six areas:
Food (category 1)
Cleaning detergents and materials (category 1)
Subcontracting (category 1)
Employee commuting (category 7)
Service delivery (category 11)
Other (categories 1 (not included above), 2, 3, 4, 5, 6, 12 and 15).
With the exception of employee commuting and other, we reduce emissions
through three strategic pathways, that guide the six key decarbonisation levers
targeting Scope 3 emissions.
1.
Decarbonising our supply chain by reducing the emission intensity
of consumables, equipment, and assets used as part of our service
performance. This includes sourcing lower-carbon materials and
engaging suppliers to improve their environmental performance.
2.
Driving efficiency within our own operations by optimising the use and
application of consumables, equipment, and assets, thereby minimising
waste and energy consumption.
3.
Seeking to influence downstream behavioural change by working with
customers and end-users to reduce consumption patterns, particularly
in areas such as food services where end-user choices significantly
impact emissions.
Food and food waste
Emissions related to food constitute a significant portion of our Scope
3 emissions, with dairy and ruminant meat consumption being primary
contributors. We actively encourage our food suppliers to pursue carbon
reduction opportunities through optimising sourcing and logistics
processes and introducing low-emission products. Our food and catering
specialists are continuously innovating to develop sustainable practices
and recipes, such as exchanging meat with plant-based alternatives, within
the boundaries set by our customers. A simple example is switching to
plated servings from buffet style servings, which has proven effective in
reducing food waste and associated emissions.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
We continuously engage with current and potential customers to
promote more plant based and low-emission diets and menus. While
some customers fully embrace low-emissions menus, we still experience
hesitation influenced by end-user preferences and demands.
Furthermore, we fulfil our commitments to transparency and accountability
by submitting annual reports to the Cool Food Pledge organisation as part
of our Cool Food Pledge commitment. We expect that we will further reduce
emissions as behaviour changes continue, and as our customers see the
potential cost savings from substituting meat for plant-based foods.
Our global initiative to reduce food waste remains a key element of
our Scope 3 emission reduction efforts. We reduce food waste through
more efficient preparation and by encouraging more appropriate end-
user consumption. To strengthen this approach, we have partnered with
Winnow, a leading technology provider to better capture data insights on
where food waste occurs across our operations. This allows us to identify
significant waste hotspots and implement targeted actions to reduce.
Cleaning detergents and materials
Cleaning is our largest service type both in terms of revenue and people.
Consequently, it accounts for a substantial share of Scope 3 emissions.
We work to reduce the emissions by developing more efficient cleaning
methods. This work includes our global service line board for cleaning
actively engaging with suppliers and our in-house innovation team to
evolve and improve the product with a mandate to improve carbon
efficiency at every opportunity.
Our Pure Space cleaning method drives emission reductions through a more
efficient use of consumable cleaning products, such as detergents or cleaning
pads, and more efficient energy consumption, such as for our vacuum cleaners
(category 11). Pure Space is being implemented in our Office-based segment
and Healthcare, reducing emissions from our range of cleaning services.
We do not have fixed targets for the emission reductions from rolling out of
Pure Space, but it is a global, strategic product that we are deploying as fast
as is feasible. Our use cases demonstrate emission reduction benefits, as well
as lower water consumption and reduced chemical use. We have begun the
implementation of Pure Space across 23 countries and by 2030, we expect that
~80% of our cleaning services will be provided under the Pure Space method.
Subcontracting
While we primarily self-deliver services, we engage subcontractors for
non-core services or where local self-delivery capabilities is not available.
Emissions from subcontracted activities make up a significant share of our
Scope 3 footprint.
To reduce emissions, we encourage subcontractors to align with our
sustainability standards, including adopting best practices for service delivery.
We also engage subcontractors to improve operational efficiency, mainly
through minimising rework, reducing emergency report activities at customer
sites, and avoiding multiple trips to complete single tasks. To support these
initiatives, we are actively working to improve data granularity by collecting
service-specific emissions data from key subcontractors.
Employee commuting
Our first focus for this decarbonisation lever is to gain a thorough
understanding of actual employee commuting emissions. We will move
from modelling the emissions, based on geographical commute patterns,
to collecting primary commuter data from our workforce, enabled by our
global roll out of MyISS (where data privacy regulations allow).
The reduction of employee commuting emissions is outside of ISS’s control
as it is heavily dependent on the local availability of low-cost, low-emission
alternatives for public transport. Therefore, ISS does not currently have
defined actions for reducing emissions from employee commuting. While we
will continue to advocate for the need for investment in this area as part of
a Just Transition, we do not foresee being able to take more concrete action
beyond traditional nudging and information campaigns. In the future, we will
aim to work more closely with this topic, for example, to investigate offering
our placemakers work opportunities closer to home to reduce commuting
distances, which has been in the subject of small-scale pilot projects.
Service delivery at customer sites
ISS consumes energy from our customers sites, including electricity
consumption for cleaning equipment or in food preparation. Emissions
from this energy consumption represents a material portion of our
footprint. We model these emissions using general, location-based factors,
but we typically lack visibility into our customers’ renewable energy
purchases and commitments.
In 2026, we aim to enhance our value chain visibility and emissions
accounting models by incorporating customer-specific energy data
more accurately. We will also finalise a risk assessment to investigate
opportunities and limitations related to data availability and quality,
supported by research and external experts.
In parallel, we are collaborating with customers to improve electricity
efficiency at their sites, and to increase their procurement of renewable
energy. As customers increase their procurement of renewable electricity,
the overall carbon footprint related to our service delivery decreases
accordingly. By improving our accounting models, ISS will better capture
the impact of these changes, enhancing data-driven decisions, our
customers’ decarbonisation journey and transparent reporting.
Other emissions
In addition to the identified key Scope 3 categories, we have emissions
from the following other sources:
• Purchased goods and services not already mentioned (category 1)
• Purchase of capital goods, including large equipment (category 2)
• Use of fuels in Scope 1 and 2 (category 3), upstream transportation and
distribution (category 4)
• Disposal of equipment incl. cleaning equipment, uniforms, etc. (category 5)
• Business travel of employees via air, road or rail and hotel stays
(category 6)
• End-of-life treatment of sold products (category 12)
• Investments (category 15)
Scope 3 – Progress on targets
Several key contributors drive our Scope 3 emissions, including food
services, cleaning, subcontracting, employee commuting, and service
delivery at customer sites. Our targeted actions across these areas have
collectively resulted in a 2% increase in Scope 3 emissions in 2025 compared
to 2024, amounting to a total increase of 11% against our 2019 baseline.
We continue to take relevant actions to decarbonise across our value chain
and meet our Scope 3 targets.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
1
Consumption,
mix
and
intensity
Energy
(MWh)
2025
2024
Fossil energy
259,528
97%
261,993
97%
Nuclear sources
3,325
1%
3,244
1%
Renewable energy
Fuel, incl. biomass
-
-
-
-
Purchased electricity, heat,
steam and cooling
5,353
2%
4,010
2%
Self-generated non-fuel energy
65
0%
63
0%
Renewable energy
5,418
2%
4,073
2%
Total
energy
268,271
100%
269,310
100%
Energy
intensity
1)
3.17
3.22
1)
Energy intensity is calculated based on Group revenue of DKK 84,684 million (2024: DKK 83,761 million).
Fossil fuels comprise diesel, petrol, gas, biodiesel and bioethanol, mainly
for vehicle use and to a smaller extent for buildings. Fuel consumption is
primarily collected from external fleet management partners. For vehicles
not managed through external partners, data is based on petrol cards
usage, or extrapolated from spend or mileage. Gas consumption is based
on meter readings, utility invoices, lessor-supplied data or extrapolated
from statistical sources based on m
2
occupancy.
Electricity consumption mainly relates to our corporate facilities, but also
includes our vehicle fleet. Data is based on metered readings, supplier
data or extrapolated from statistical sources and primarily based on m
2
occupancy. For electricity vehicles consumption is based on actual charging
consumption or estimates from e.g. mileage.
Heating, steam and cooling consumption relates to our corporate facilities
and is based on metered readings, supplier data or extrapolated from
statistical sources, primarily by m
2
occupancy. Energy consumption at
customer sites is accounted for by customers, but included in our scope 3
emissions in line with the GHG protocol.
In brief
Our business
data
Consumption, mix and intensity
GHG emissions
GHG emissions – change in methodology
Performance
Governance
Sustainability
statement
Financial
statements
policy
Energy from fossil sources is converted from volumes to energy
by applying volume-to-weight conversion factors in accordance
with Annex 29 to the Stockholm Convention on persistent organic
pollutants. Gas volumes are converted to energy at a conversion
ratio of 0.01055 MWh per m
3
of gas. Further, energy from fossil
sources cover electricity, heating, cooling and steam that is not from
renewable or nuclear sources.
Energy from nuclear sources is calculated by applying statistics
from the International Energy Agency (IEA) of the country-by-
country energy mix for Total Energy Supply to each ISS operating
country’s non-renewable energy consumption from electricity,
heating, steam and cooling.
Energy from renewable sources Renewable electricity, heat,
steam and cooling covers energy consumption where we have
an “exclusive” right to the renewable claim e.g. under Guarantees
of Origin or similar instruments. Self-generated non-fuel energy
from solar panels, windmills or similar renewable energy sources,
is an insignificant part of our energy mix. We report no renewable
energy from fuel, including biomass.
Energy intensity We do not have operations in high climate impact
sectors, but we do perform services for customers with operations
in high climate impact sectors. Our energy consumption is not
particularly affected by the customer segment we service, since
our energy consumption relates to our own corporate real estate
footprint and operation of our fleet of vehicles. Our energy
intensity is therefore identical across our customer segments
regardless if in high climate impact sectors or not. Energy intensity
is calculated as total energy consumption (MWh) relative to total
net revenue (DKKm) in our consolidated financial statements.
2
GHG
emissions
Scope1, 2 and 3 emissions
Retrospective
1)
Annual target / base year
2030
Annual
%
2019
(tCO e, unless otherwise stated)
2025
vs
Near-
2040
target
/
2
baseline 2024 2025
2024,
%
2026
term
Net
Zero
Base
year
1)
All retrospective figures are restated according to updated methodology, see note 3.
GHG intensity
2025
2024
Location
based
Market
based
Location
based
Market
based
Total GHG, tCO
2
e
2,270,538
2,275,314
2,232,218
2,236,241
GHG
intensy
1)
26.81
26.87
26.65
26.70
1)
Energy and GHG intensity are calculated based on Group revenue of DKK 84,684 million (2024: DKK 83,761 million).
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
This policy sets out ISS’s approach to emissions calculations for reporting at
Group level. 2025 reporting marks the first year of reporting using Watershed as
our system of record for emissions calculations allowing ISS to reduce reliance
on the historical “Sample-and-Extrapolate” approach used in previous years’
calculation approaches. For 2025 annual reporting calculations were based on
best available data for a complete set of 12-month continuous business operation
across all scopes. The period October 2024-September 2025 was used as the
most recent and complete 12-month period, and we continuously adjust where
this is deemed not to be representative of the reporting period Emission factors
applied correspond to the period in which the activity/spend was reported. Going
forward emissions reporting will continue on a rolling 12-month period, however
Q4 prior year will be uploaded to Watershed as proxy data for Q4 of the reporting
year in order to make use of emission factors from the calendar year, simplify
reporting and analysis, and maximise alignment of the calculated emissions with
the financial reporting of the year.
Approach
Scope 1 emissions comprise direct tCO
2
e emissions from sources owned or
controlled by the ISS Group calculated in accordance with the Greenhouse Gas
Protocol. Consumption data is multiplied with relevant emission factors from
US EPA (2025), DEFRA (2025). Please refer to fossil fuel consumption above for
a description of our compilation of consumption data.
Scope 2 emissions comprise indirect tCO
2
e emissions from electricity, heating,
steam and cooling consumed in buildings leased or owned by the ISS Group
as well as electricity consumed for electric vehicles. Emissions are calculated
with relevant location and market-based emission factors respectively. For
electricity IEA 2025 is used for location-based calculations when national
emission factors are not available. For market-based electricity, IEA 2025 is
used where either AIB 2024 or national emission factors are not available. For
steam the IEA 2025 used for both market and location-based emissions. For
district heating and cooling the DEFRA 2025 emission factor is used for both
market and location-based emission.
Scope 3 tCO
2
e emissions comprise the most material categories out of the
15 Scope 3 categories specified by the Greenhouse Gas Protocol. These
categories were aligned based on impact and verified in ISS’s submission
to the Science Based Targets Initiative conducted by Sphera in 2022. The
remaining categories were not deemed material due to the service nature of
ISS’s business model.
Scope
1
Gross
85,568
70,357
69,499
(1)%
57,311
8,557
8,557
(19)%
Scope
2
Gross, Location based
9,617
5,484
5,885
7%
4,900
962
962
(39)%
Gross, Market based
13,177
9,507
10,661
12%
8,792
1,318
1,318
(19)%
Scope
3
1,983,430
2,156,377
2,195,154
2%
2,045,704
1,447,904
198,343
11%
1 Purchased goods and services
1,029,874
1,007,263
1,066,803
6%
2 Capital goods
12,323
9,483
11,457
21%
3 Fuel and energy-related activities
23,137
19,606
19,942
2%
4 Upstream transportation and distribution
36,867
28,396
31,720
12%
5 Waste generated in operations
2,270
6,801
6,582
(3)%
6 Business travel
62,780
76,667
66,540
(13)%
7 Employee commuting
436,037
437,242
424,435
(3)%
11 Use of sold products
375,778
568,982
565,911
(1)%
12 End-of-life treatment of sold products
3
1,881
1,738
(8)%
15 Investments
4,361
56
26
(54)%
Location
based
2,078,615
2,232,218
2,270,538
2%
Market
based
2,082,175
2,236,241
2,275,314
2%
Accounting
policy
Purchased goods and services (category 1) include emissions relating to
external supplier spend. Spend relating to capital goods and business travel
is separately calculated in categories 2 and 6. Emissions from subcontracted
services spend and cleaning services related activities together with food
account for the vast majority of our category 1 emissions. Emissions are
calculated from either weights or unit quantities purchased or direct spend
by category, multiplied by relevant emission factors from CEDA 2025.
Capital goods (category 2) include emissions from cleaning and kitchen
machines used in connection with our service provisions. Emissions are
calculated from direct spend relating to cleaning and kitchen machines
multiplied with relevant emission factors from CEDA 2025.
Fuel and energy related activities (category 3) include upstream emissions
of purchased fuels and electricity, steam, heating and cooling as well as
transmission and distribution losses. Consumption data is identical to what is
used for our scope 1 and 2 calculations. For the calculations emission factors
from IEA2025 and DEFRA 2025 are applied.
Upstream Transportation and Distribution (category 4) covers emissions
associated with transporting goods and materials before they reach our
operations. Spend data (is mapped to relevant emission factors from CEDA
2025.
Waste disposal (category 5) includes waste disposal relating to our leased
or owned buildings. Waste disposal is calculated on the basis of the number
of support staff based at our corporate offices (global average) and the
expected weight of waste generated per person per year. For the calculations
emission factors from DEFRA 2025 is used.
Business travel (category 6) includes emissions related to travel and hotel
accommodation and is based on travel distance, transportation type and
accommodation length data supplied by our travel agencies. Emission
factors for travel are applied in categories for air and train travel depending
on type of travel and distance whereas a standard emission factors per
accommodation night are applied to hotel accommodation. For the
calculations relevant emission factors from DEFRA 2025 are applied. Where
information is not available distance level spend is used instead, multiplied
with relevant emission factors from CEDA 2025.
Employee commuting (category 7) includes travel to and from the workplace
for ISS employees. Due to our significant number of employees, our
employee commuting emissions are sizeable. Calculations are based on
actual number of employees per country. Employees are assumed to
commute 5 days per week. Travel distances and commute patterns are
calculated on a regional basis and relevant emission factors from US EPA
2025 are applied for the calculation.
Use of sold products (category 11) includes emissions from our use of
cleaning equipment, kitchen equipment and technical equipment as part of
our service at customer sites, as well as emissions related to refrigerants as
a result of our operations at customer sites. Emission calculations are based
on use cases for electricity consumption in regard to use of cleaning, kitchen
and technical equipment. Emission factors are applied in the same manor as
scope 2, with the hierarchy of using national emission factors where available
and IEA where this is not possible for both electricity as well as WTT and T&D
losses. For refrigerants IPCC AR6 is used.
End-of-life-treatment of sold products (category 12) includes food waste
generated as part of our service performance. Monthly country level food
waste data (in kilograms) is collected and relevant emission factors from
CEDA are applied.
Investments (category 15) Emissions are estimated based on revenue
apportionment from ISS’s joint venture in Spain only.
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
3
GHG emissions – change in methodology
Restatement of 2019 baseline
(CO
2
e)
Restated
Reported
Impact
Scope 1
85,568
88,722
(3,154)
Scope 2
13,177
10,556
2,621
Scope 3
1,983,430
1,631,811
351,619
Total
2,082,175
1,731,089
351,086
Restatement of 2024 reported amounts
(CO
2
e)
Restated
Reported
Impact
Scope 1
70,357
56,592
13,765
Scope 2
9,507
10,131
(624)
Scope 3
2,156,377
1,613,854
542,523
Total
2,236,241
1,680,577
555,664
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Scopes 1, 2, 3 and GHG emissions
In 2025, we completed the global implementation of our carbon
management platform, Watershed – a critical advancement in our
climate strategy.
The implementation of Watershed enables calculating, reporting and
tracking of emissions and developments across Scope 1, 2, and 3,
thereby enhancing our ability to track performance and gain stronger
insights from detailed activity data.
Restatement and impact on reported amount
In 2025, we have chosen to report on emissions according to the updated
methodology to ensure the use the most accurate data available and
enhance transparency in our reporting. As a result, we have restated our
reported emissions for both 2019, our baseline year, and for 2024. The
impact is provided in the table to the left.
Unlike our previous approach, which relied on sampling and extrapolation,
this updated approach enables detailed measurement of carbon footprint
data with more granular input from our countries. Data quality has been
improved by integrating our IT systems, mainly our global procurement
spends tool, employee data systems and travel booking system, which now
feed data into Watershed.
Going forward, the updated data will be used to support our strategic
initiatives, emission calculations and annual reporting. Although, we
made significant progress in 2025 through the global implementation of
Watershed, which significantly enhanced transparency in our emissions,
efforts to further improve our sourcing data continue in the coming
years.
This methodological enhancement has resulted in a significant increase
in reported emissions, reflecting improved data accuracy and granularity
rather than a growth in actual emissions or business activities as
anticipated and communicated in the 2024 Annual report.
We plan to update our emissions baseline and realign our target
pathways latest by 2028. This recalibration will ensure our targets
remain credible and science based as we continue to refine our
decarbonisation initiatives.
EU
taxonomy
On 4 July 2025, the European Commission introduced simplification
measures for the EU Taxonomy under a new Delegated Act, effective 1
January 2026 and applicable to the 2025 financial year. We have chosen to
adopt the new rules for financial year 2025. As a facility service provider with
an asset-light business model, most of our turnover-eligible activities fall
outside the high-emission sectors targeted by the EU Taxonomy.
Eligibility
assessment
We have screened our revenue-generating and investment activities against
the EU Taxonomy eligibility criteria for turnover, CapEx and OpEx. Our activity
screening considered NACE codes as guidance for the activity descriptions
in the EU Taxonomy, alongside an individual assessment of each of our 48
service types. For CapEx and OpEx, we evaluated our key asset types and
cost components as recorded in our financial system and assessed those in
scope against the economic activities.
Eligibility
assessment
outcome
Turnover We assessed that the relevant economic activities, as defined by the
EU Taxonomy, include Services (CEY 5.1) and Real Estate activities (CCM 7.2, CCM
7.3, CCM7.5, CCM 9.3 and CCM7.6). The activities relate to our services within the
following service lines: Technical Building Structure, Technical Building Electrical,
Technical Building Mechanical, Capital Projects and Energy Management within
our HSE Management. Based on current insights, we expect that only parts of
these services would represent eligible revenue. However, data are currently
not available at a more granular level. In 2025, total revenue related to these
activities corresponded to 9% of Group revenue. Being below the threshold of
10%, the activities were deemed non-material and consequently not assessed
further. In 2024, eligible revenue was reported as 0%.
CapEx Following our EU Taxonomy CapEx eligibility assessment,
the relevant economic activities are: CCM 7.2 Renovation of existing
buildings (newly identified this reporting period and restated in the 2024
comparatives) and CCM 7.7 Acquisition and ownership of buildings, reflecting
CapEx related to our buildings and renovation projects. Our capitalised
vehicles are reported under CCM 6.5 Transport by motorbikes, passenger
cars and light commercial vehicles. In 2025, eligible CapEx amounted to DKK
821 million (2024: DKK 1,030 million (restated)), a slight decrease as 2024 had
an unusually high number of lease renewals.
OpEx Following our EU Taxonomy OpEx eligibility assessment, the
relevant economic activities are: CCM 7.2 Renovation of existing buildings
(costs identified as eligible in the current period and restated in the 2024
comparatives) and CCM 7.7 Acquisition and ownership of buildings (OpEx
related to renovation measures and building leases). In regards to our
fleet, we report this on CCM 6.5 Transport by motorbikes, passenger
cars and light commercial vehicles, and have mapped costs related to
short-term vehicle leases and associated repairs and maintenance to the
fleet activity. In 2025, eligible OpEx amounted to DKK 285 million (2024:
DKK 353 million (restated)), decreasing due to lower costs for repair and
maintenance of vehicles in 2025. We only report on one environmental
objective per activity to avoid double counting. No significant changes in
the related KPIs have occurred in this reporting period.
Alignment
assessment
We continued our alignment assessment in 2025 and concluded that
criteria regarding “substantial contribution” and “do-no-significant-harm”
remain challenging to document, and we have not managed to establish
and obtain appropriate confirmations from manufacturers and suppliers.
As such, none of our taxonomy-eligible activities are assessed to be
taxonomy-aligned.
Minimum safeguards
We are committed to upholding principles of responsible business conduct
through our foundational values, policy frameworks, and ongoing due
diligence. To strengthen our work and documentation of our efforts, we
conducted a human rights impact assessment in 2025, see p. 46.
Regarding anti-corruption, ISS has established policies, internal controls,
and preventive measures considered adequate. No ISS top management
members have been convicted of corruption or competition law breaches,
and no legal entities have been found guilty of tax evasion.
While we have no reason to believe that our business practices do not
uphold the minimum safeguards within the areas of human rights, bribery/
corruption, taxation and fair competition, we are currently not able to
document our adherence. Accordingly, none of our activities are reported
as aligned within the definition of the EU Taxonomy.
Turnover
Turnover
Taxonomy-eligible activities
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Turnover,
CapEx
and
OpEx
- from products or services associated with taxonomy-eligible
or taxonomy aligned economic activities
KPI
(DKKm unless otherwise stated)
Revenue
CapEx
OpEx
2025
Total
84,684
1,674
841
Proportion of taxonomy eligible activities
0%
49%
34%
Taxonomy aligned activities
-
-
-
Proportion of taxonomy aligned activities
-
-
-
Not assessed activities considered non-material
1)
9%
-
-
1)
Excluded economic activities based on the 10% threshold: CCM 7.2, CCM 7.3, CCM 7.5, CCM 7.6, CCM 9.3 and CEY 5.1.
CapEx
and
OpEx
- from products or services associated with taxonomy-eligible
or taxonomy aligned economic activities
Economic
activities
• CCM/CCA 6.5 (T): Transport by motorbikes, passenger cars and light commercial vehicles (transportation)
• CCM/CCA 7.2 (T): Renovation of existing buildings
• CCM/CCA 7.7: Acquisition and ownership of buildings
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
policy
In accordance with Commission Delegated Regulation (EU) 2021/2178, ISS discloses the proportion of turnover,
CapEx, and OpEx relating to taxonomy-eligible and taxonomy-aligned economic activities.
Turnover For purposes of calculating the eligibility KPI, the denominator for turnover is defined as total revenue in
accordance with IFRS as presented in note 1.1 of the consolidated financial statements. The turnover KPI is defined
as Taxonomy-eligible turnover divided by total turnover. The numerator for turnover KPI is the revenue associated
with taxonomy-eligible activities.
CapEx The CapEx KPI is defined as the proportion of Taxonomy-eligible capital expenditure (“CapEx”) in relation to
the company’s total CapEx. CapEx comprises additions to fixed assets (including right-of-use assets) and intangible
assets, with additions resulting from business combinations also included. Goodwill is excluded from CapEx for EU
Taxonomy reporting purposes, as it is not defined as an intangible asset in accordance with IAS 38. The share of
taxonomy-eligible CapEx is calculated as: Taxonomy-eligible CapEx KPI (additions) = eligible CapEx/total CapEx. For
activity CCM 6.5, the number vehicles by weight is used to estimate the allocation of taxonomy-eligible CapEx.
OpEx The OpEx denominator KPI includes direct non-capitalised costs related to research and development, building
renovation, short-term lease, maintenance, and repair of property and equipment. It excludes amortisation and
impairment, as well as salary and employee costs recognised under IFRS but not considered for taxonomy purposes.
The share of Taxonomy-eligible OpEx is calculated as: Taxonomy-eligible OpEx KPI (repair and maintenance; short term
leases; renovation measures) = eligible OpEx/total OpEx. For activity CCM 6.5, the number vehicles by weight is used to
estimate the allocation of taxonomy-eligible OpEx. Given the lack of granularity in the data for short-term leases, CCM
6.5 and CCM 7.7, an allocation key was applied based on the eligible-CapEx under the respective activities.
Given the lack of granularity in the data for short-term leases, CCM 6.5 and CCM 7.7, an allocation key was applied
based on the eligible-CapEx under the respective activities.
Restatement of 2024 reporting
During the current reporting period, we refined our calculation methodology for EU Taxonomy eligibility within
CapEx and OpEx. These changes eliminate prior double counting, improve the accuracy of total eligible costs,
and provide more reliable and relevant information:
OpEx We identified double counting in the OpEx denominator as our insights to underlying data has improved.
This has resulted in our OpEx denominator to be restated from DKK 933 million (2024 reported) to DKK 882
million (2024 restated).
We adjusted for the double counting under activity CCM 7.7 from DKK 69 million (2024 reported) to DKK 58
million (2024 restated).
We reassessed our taxonomy-eligible OpEx under activity CCM 6.5 from DKK 123 million (2024 reported) to DKK
221 million (2024 restated).
We also identified additional taxonomy-eligible OpEx for repair and maintenance and renovation measures
under activity CCM 7.2 (DKK 74 million).
As a result, our 2024 taxonomy-eligible OpEx has been restated from DKK 192 million, 21% (reported 2024) to
DKK 353 million, 40% (restated 2024).
CapEx We identified additional taxonomy-eligible CapEx for leasehold improvements under activity CCM 7.2
(DKK 56 million). As a result, taxonomy-eligible CapEx has been restated from DKK 974 million, 50% (reported
2024) to DKK 1,030 million, 53% (restated 2024).
(%, unless otherwise stated)
Trans-
por-
tation
Renovation
of existing
buildings
Acquisition/
ownership
of buildings
Sum of
alignment
per
objective
Total
CapEx
Taxonomy eligible KPI (proportion of taxonomy eligible CapEx)
27%
6%
16%
n/a
49%
Taxonomy eligible KPI (monetary value of CapEx), DKKm
457
93
271
n/a
821
Taxonomy aligned KPI (proportion of taxonomy aligned CapEx)
0%
0%
0%
n/a
0%
Proportion of taxonomy aligned in taxonomy eligible
0%
0%
0%
n/a
0%
OpEx
Taxonomy eligible KPI (proportion of taxonomy eligible OpEx)
20%
7%
7%
n/a
34%
Taxonomy eligible KPI (monetary value of OpEx), DKKm
168
57
60
n/a
285
Taxonomy aligned KPI (proportion of taxonomy aligned OpEx
0%
0%
0%
n/a
0%
Proportion of taxonomy aligned in taxonomy eligible
0%
0%
0%
n/a
0%
GOVERNANCE
Responsible
business
conduct
We are committed to carrying out our activities according
to principles of good corporate governance and ensuring
that human rights, social, environmental and ethical
commitments of ISS are reflected in every interaction with
our stakeholders across the entire value chain.
As a global business with a decentralised operation, we operate in a
complex environment shaped by diverse global and local regulations
and business ethics practices. This necessitates a strong focus on
consistent standards to ensure that we conduct business with integrity in
all interactions.
We conduct our business in a lawful manner, and we are committed to
combatting corruption and bribery and upholding the highest ethical
standards in all areas of our business. We engage with 40,000+ customers
and ~45,000 suppliers on multiple organisational levels, which exposes us
to risk in regard to business ethics. Our industry is generally not heavily
regulated and except for normal business licenses our interactions with
regulators and public authorities are not significant. Our business ethics
risk exposure towards public authorities is therefore primarily a result of
participation in public tenders or public sector customer contracts.
Our business conduct is guided by our values and reinforced through
formal policies and defined roles and responsibilities at management
and board levels. For details on our sustainability governance and policy
framework, see pp. 36-37.
Our internal control framework, including targeted training of our
employees, is designed to prevent corruption, bribery and other forms
of misconduct across all areas of our business. For a description of Risk
management and internal controls, see p. 38.
We promote and ensure that concerns can be raised, and grievances can
be made without any risk of retaliation through our Speak Up policy and
system, which is available to all our people and stakeholders.
Governance
Responsible business conduct
Corporate culture
Corruption and bribery
Supplier relationships
Governance data
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
Our values
Unity
Honesty
Responsibility
Entrepreneurship
Quality
GOVERNANCE
Corporate
culture
Our corporate culture is founded on a strong set of
values that guide our behaviours, decision-making, and
interactions with customers, suppliers, public institutions,
and other stakeholders. These values go beyond principles
on paper – they underpin how we operate and form the
foundation for building trust and long-term relationships
with all our stakeholders.
Our values of Unity, Honesty, Responsibility, Entrepreneurship and Quality
are our foundational backbone and has been for decades. This strong
value base is essential for us in ensuring that we interact with stakeholders
in a fair and respectful manner, just as we expect to be treated fairly and
with respect in return.
Policies
Our values are brought to life in our Code of Conduct, which establishes
the overarching guidance on how we wish to do business and how we
expect our employees to conduct themselves as ISS representatives.
The Code of Conduct includes our commitments to responsible and fair
business practices in accordance with international standards of United
Nations Global Compact, United Nations Declaration of Human Rights, the
Core Conventions of the International Labour Organisation and the United
Nations Guiding Principles on Business and Human Rights.
The Code of Conduct is reinforced by a set of key Group policies applicable
to all employees, covering areas such as Competition Law, Sanctions Law,
Data Privacy and Protection, Data Ethics and AI compliance and Anti-
Corruption. Each policy is accompanied by guidelines and processes to
ensure our adherence.
We are committed to maintaining a healthy corporate culture in which
employees are encouraged to raise concerns and where managers act
as effective listeners. Our Speak Up policy aims to provide a platform for
employees, business partners, and other stakeholders to raise concerns
covered by ISS policies, as well as other breaches of applicable legislation,
including the EU Whistleblower Directive. The policy ensures that such concerns
are treated seriously and appropriately and reassures that any person raising a
concern in good faith will be protected from reprisals or retaliation.
Ensuring that incidents are appropriately dealt with requires that
information is escalated to the right management levels. Our Escalation
policy prescribes matters of particular importance that are to be escalated
through defined management lines, which includes business integrity
issues. The Escalation policy in combination with our ordinary management
practices, our Speak Up Policy and our internal audit programme provide
our due diligence foundation in regard to business conduct.
We ensure that the core principles of our Code of Conduct “flow up” to
our supply chain via our Supplier Code of Conduct, which sets minimum
standards for all suppliers and subcontractors. Likewise, we ensure these
principles “flow down” to our customers and other business partners
through awareness activities, typically by including our Code of Conduct as
part of the contract.
Key
actions
Code of conduct training
Our Code of Conduct is a mandatory part of the employee agreement
that we make with all our employees. To ensure its principles are
clearly understood, all employees must complete mandatory Code of
Conduct training.
The Code of Conduct training is translated into local languages and is
available in digital and physical (classroom) format. It is accessible through
our Learning Management System (LMS) via QR codes or in MyISS,
ensuring also reach to employees with limited digital access or limited
digital or literacy skills.
Code of Conduct training assigned to employees digitally via our LMS
platform has to be completed within two months from the employment
commencement date and must to be refreshed every two years. Re-
training covers functions within procurement, finance, commercial, key
account management and executive management at Group and country
level, which are the functions considered to be at risk in respect of
corruption and bribery. Line management escalation is triggered in case of
non-compliance with training requirements.
As part of the introduction programme for new Board members, they are
given access to e-learning training in our Code of Conduct. This enables new
ESRS G1: Corporate culture
risks
Our value-based corporate culture shapes the behaviour and
decisions of employees and leaders across our operations.
If our culture does not consistently promote integrity,
respect, safety and accountability, there is a risk of
misconduct, unethical practices, and non-compliance with
laws and internal policies, which can harm employees,
customers and other stakeholders.
• Code of Conduct
• Speak Up policy
• Anti-Corruption policy
• Sanctions policy
• Competition Law policy
• Escalation policy
• Data Ethics & AI policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
– by geography
31% Asia & Pacific
30%
Northern Europe
19%
Central & Southern Europe
Americas
1% Other (Global managed services)
members to familiarise themselves with the principles underpinning our
corporate culture. We do not formally test or verify completion of the training.
In response to recent geopolitical developments and comprehensive
sanctions regimes, we have introduced an updated sanctions compliance
programme across the Group.
Group Internal Audit (GIA)
Group Internal Audit operates a structured, risk-based audit programme
designed to provide assurance over the effectiveness of the Group’s
governance, risk management and internal control framework. The programme
combines a recurring baseline audit cycle with targeted deep dive reviews.
The baseline audit programme provides broad, cross-functional coverage
of key controls across the Group and is designed to assess the consistent
implementation of fundamental processes within areas such as finance,
IT, operations and health, safety and environment (HSE). All countries
are covered on a two-year cycle. In addition, the baseline audits include
a set of core governance and business ethics controls, including the
communication and embedding of the Code of Conduct, completion
of mandatory training, and compliance with Group policies such as the
Corporate Governance policy and the authority matrix.
Deep dive audits focus on specific topics, functions or business areas to
address emerging, heightened or known risk exposures and to support
management in strengthening control effectiveness where required.
MyVoice employee engagement survey
We evaluate our corporate culture via our annual MyVoice employee
engagement survey, including specific questions around culture and the
way we conduct our business. In 2025, the engagement score reached
75%. For further details, see p. 45.
Targets and progress
Code of conduct training
We have not set formal targets for mandatory training completion.
Nevertheless, we continue to strive for 100% completion of Code of
Conduct training to reinforce our corporate culture. We monitor training
progress, and our statistics show strong coverage across our workforce.
Our
whistleblowing
channel
–
Speak
Up
With global operations and millions of daily interactions, we recognise that
issues may arise and that continuous improvement starts with effective
listening. Alongside our established managerial routes for employees,
suppliers, customers, investors, and other stakeholders, we also provide a
dedicated channel for raising serious concerns, particularly where ordinary
escalation lines may be inappropriate or unavailable.
Our Speak Up channel enables anonymous and confidential reporting
without fear of retaliation for employees, business partners, and other
stakeholders. It is governed by our publicly available Speak Up policy,
which is accessible in 26 languages across our countries of operations. The
policy identifies the reporting scope as suspected misconduct, potential
breach of regulations or internal policies, and concerns that could have an
adverse impact on the reputation, operations, or performance of ISS.
The Speak Up channel is hosted by an external third-party provider and
is accessible via email, website, or phone with reports handled under
a detailed protocol. Each case is subject to an initial conflict-of-interest
screening supported by an external law firm before being reviewed by our
Group Internal Audit Speak Up team. Cases within the scope of the Speak
Up policy findings are reported to the Business Integrity Committee (BIC)
and subsequently to the Audit & Risk Committee.
Issues within scope of the Speak Up policy that are identified in another
manner or through another channel than the Speak Up are also recorded
in the Speak Up system to ensure that we capture a consolidated view of
issues and resolve them appropriately.
Our Speak Up policy and system for reporting concerns complies with
the Danish Whistleblower Act, which implements the EU Whistleblower
Directive in Denmark. All our Group policies and standards have a
dedicated section with information on the Speak Up reporting system and
channels for raising concerns. Our purpose is to sustain a high awareness
of Speak Up across all countries, maintain timely, independent triage and
investigation, and ensure compliance with EU and local whistleblowing
requirements across our EU operations.
Progress
During the year, we continued to monitor the implementation of the
directive in our EU-based countries and provided guidance on good
practices around setting up local reporting channels, considering local
legal requirements around whistleblowing.
In 2025, we received 622 reports through our Group Speak Up system. We
followed up on all reports, including anonymous ones. The reports were
distributed across all of regions with 31% in Asia & Pacific, 30% in Northern
Europe, 19% in Central & Southern Europe, 19% in Americas and 1% in
Other (Global managed services).
Most reports involved HR-related issues, such as employment terms,
bullying, discrimination, or salary disputes. Independent investigations,
conducted by Group Internal Audit, local management or local auditors,
resulted in 39% of closed reports being substantiated or partially
substantiated, with corrective actions taken, including termination. Of all
substantiated or partially substantiated reports, 82% were HR-related.
In 2025, 28 reports included allegations of conflicts of interest. ISS policy
requires employees to avoid situations that may conflict with ISS interests. This
is outlined in our Code of Conduct and related policies, which aim to identify
conflicts early. The Audit and Risk Committee annually reviews conflict of
interest declarations from senior executives across ISS countries and the Group.
– by topic
55% People & Culture concerns
13%
Discrimination, including harassment
8% Labour law compliance
622
5% Fraud, bribery, corruption
and misappropriation of funds
2% Health, Safety & environment
2%
Code of conduct
2%
Data privacy
1% Customer/Competitor interaction
12% Other
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
GOVERNANCE
Corruption
and
bribery
We have strong processes and practices in place to prevent,
detect, and respond to corruption and bribery, ensuring
alignment with regulatory requirements and ethical standards.
Our values and Code of Conduct, as described under Corporate Culture, p. 77,
form the basis of our approach to anti-corruption and anti-bribery, and guide
behaviours and decision-making across the organisation. They are embedded in
our procedures and policies for managing corruption and bribery. In addition,
the policies listed below specifically address corruption and bribery risks.
Policies
We operate a zero-tolerance approach to corruption and bribery as set
out in our Anti-Corruption and Anti-Bribery policy statement endorsed by
our Group CEO and published at our corporate website. It is supported
by our Anti-Corruption policy which provides principles and guidance
for all employees on areas such as bribery, facilitation payments, gifts
& entertainment and political contributions. Further, our belief in fair
competition as a business fundamental is detailed in our Competition Law
policy applicable to all employees.
Ensuring that incidents are appropriately dealt with requires that
information is escalated to the right management levels. Our Escalation
policy prescribes matters of particular importance that are to be escalated
through defined management lines, which includes business integrity
issues. The Escalation policy in combination with our ordinary management
practices, our Speak Up policy and our internal audit programme provide
our due diligence foundation in regard to business conduct.
Key
actions
Training
As described under Corporate culture p. 77, we provide ongoing training
to all our employees to ensure that all employees are familiar with and
adhere to our Code of Conduct.
The Code of Conduct training includes guidance and cases on anti-
corruption and anti-bribery, and covers functions within procurement,
finance, commercial, key account management and executive
management at Group and country level, which are the functions
considered most at risk in respect of corruption and bribery.
In addition, on an ad-hoc basis in-depth training sessions on anti-
corruption and anti-bribery are conducted by Group Legal. Training
materials from these sessions are available to all ISS employees.
Incidents
Allegations or incidents of corruption and bribery are managed in line with
our corporate culture principles, which are described on p. 77.
Investigations are conducted by Group Internal Audit (GIA) and may
involve internal and external resources as necessary. Findings are reported
to the Business Integrity Committee and in turn to the Audit & Risk
Committee (ARC) ensuring oversight at the highest governance levels. GIA
is independent in its work, with the Head of GIA reporting directly to the
Group CFO and having direct access to the ARC and the Board of Directors.
This structure ensures impartiality, integrity, and accountability in our
approach to corruption and bribery matters.
Targets and progress
Training
We aim for full anti-corruption and anti-bribery training coverage for
employees in functions identified as being at risk. In 2025, 100% of employees
in at-risk functions were covered by relevant training programmes.
Incidents
We have not set formal targets related to incidents of corruption or
bribery. However, we maintain a zero-tolerance approach and strive for full
adherence to our policies.
In 2025, to our knowledge, no legal entity within the ISS Group was
convicted or fined for violation of anti-corruption and anti-bribery laws.
Furthermore, to our knowledge, no employees were convicted or fined for
such violation in their capacity as ISS employees.
In 2025, two alleged incidents of corruption and bribery were substantiated.
Both resulted in disciplinary actions, including employees’ dismissals, as well
as the strengthening of relevant controls and policy frameworks.
ESRS G1: Corruption and bribery
risks
As a global provider of facility services, we operate in
markets and contract types where interactions with public
and private customers, suppliers and intermediaries can
create exposure to bribery, facilitation payments and other
forms of corruption.
Inadequate controls, training or oversight in these areas
increase the risk that our employees or business partners
engage in corrupt practices, undermining fair competition
and local governance.
• Code of Conduct
• Anti-corruption policy
• Sanctions Law policy
• Escalation policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
GOVERNANCE
Supplier
relationships
Our supply chain consists of approximately 45,000 suppliers.
We manage our supply chain with a focus on ensuring
resilience and continued availability of cost-efficient and
high-quality supplies and services at our customer sites in a
compliant, sustainable and ethical manner.
We do this by building strategic partnerships with key suppliers to drive
economies of scale and innovative power for larger procurement categories and
by streamlining procurement practices for our remaining procurement spend.
Our supply chain is diverse, including large, medium and small suppliers.
Certain fundamental principles aimed at preventing negative impacts are
non-negotiable and shall be adhered to by all suppliers, but for larger
suppliers we require practices and ambitions that go beyond.
Policies
We manage our supply chain through our global Supply Chain &
Procurement function organised around procurement categories,
operational geographies and supply chain-based risk assessments. All
suppliers are risk assessed to identify and mitigate ESG risks through a
centralised vetting and onboarding process.
In the ISS Supplier Code of Conduct we specify our fundamental principles
as well as the minimum requirements that all suppliers must meet in order
to do business with ISS. This includes areas within ethical and responsible
business conduct, social sustainability & human rights and environmental
sustainability & climate action.
Key
actions
Suppliers are continuously monitored against sanctions and watchlists. Our
supply chain risk and assurance programme also ensures for most critical
suppliers that performance is actively managed, business continuity plans
are in place and that flow-down agreements are negotiated which pass
through ISS’s risk partially or fully to its suppliers.
A sample number of critical suppliers are audited annually, through an
independent third-party agency, to close any gaps identified on the ESG
compliance requirements of ISS. For further description of our supply chain
engagement and practices please refer to Stakeholder engagement, p. 41.
Unless formally qualifying as small-business suppliers, all high-carbon
impact suppliers are required to mirror ISS’s commitments in terms of
Science-Based Targets and carbon disclosure. Where needed, ISS will
proactively support impacted suppliers to establish a roadmap towards
adherence to these environmental sustainability requirements. In
competitive sourcing processes environmental sustainability must have a
minimum of 20% weight in the award criteria.
Among others to actively reduce risk and increase adherence to ESG
requirements in its supply chain, ISS actively funnels third-party spend to its
Preferred Supplier List. This results in 81% of spend covered by a formal supplier
agreement currently and a reduction of the supplier count by 22% vs. 2020.
Payment practices
Our own procurement practices are described in our Supply Chain policy
and further detailed in our Supply Chain & Procurement standard. Our
standard payment term for small business suppliers is 30 days. For other
suppliers our standard payment term is “end of month + 95 days”, subject
to compliance with local statutory regulation on payment terms. Each
country operates a Procure-to-Pay system where purchases are executed
through purchase orders.
We are subject to statutory payment regulation in many of our operating
geographies that often provide different payment terms than our standards.
We capture details of payment terms and payments made in our global spend
management tool Sievo and we are able to track payment history and profile on
each of our more than 6.8 million invoices spread across around 45,000 suppliers.
The average time to pay an invoice in the above period was 48 days (2024:
48 days). At the end of 2025 we did not have outstanding legal proceedings
for late payments to suppliers.
Targets and progress
Our actions to engage with suppliers and subcontractors on fair and
predictable commercial conditions are described above. We have not set,
and do not currently plan to set, specific targets in this area.
relationships
ESRS G1:Management of relationships with suppliers
including payment practice
Through our purchasing decisions, contract terms and
ongoing engagement with suppliers, particularly where
there is an imbalance of bargaining power, we can influence
whether suppliers and their workers enjoy fair and
predictable commercial conditions.
By managing supplier relationships on fair terms, for
example, through reasonable payment terms, collaborative
planning and respect for contractual commitments, we can
support the economic stability of value chain businesses,
protect employment and income for workers, and contribute
to more resilient local economies. Conversely, if our practices
are unfair or overly aggressive, this could put pressure on
suppliers’ financial viability and working conditions, with
knock-on negative effects for workers and communities.
• Supplier Code of Conduct
• Supply Chain policy
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
1
Incidents, complaints
and severe human rights
Incidents and complaints reported
(number)
2025
2024
People & Culture concerns
341
281
Discrimination, including harassment
81
53
Labour law compliance
49
52
Fraud, bribery, corruption and misappropriation of funds
30
35
Health, Safety & Environment
16
16
Code of conduct
12
29
Data privacy
11
5
Customer/competitor interaction
7
5
Other
75
76
Received through Group Speak Up
622
552
Received through local Speak Up
93
62
Total
715
614
Discrimination, including harassment:
Received through Group Speak Up
81
53
Received through local Speak Up/PMS
48
29
Total
129
82
Severe human rights incidents (Group Speak Up)
-
-
Fines, penalties and compensation for damages
(DKKm) 2025 2024
In brief
Our business
data
Incidents, complaints and severe human rights
Incidents of corruption and bribery
Payment practices
Performance
Governance
Sustainability
statement
Financial
statements
policy
Complaints received through Speak Up include incidents and
complaints received (including in relation to discrimination and
harassment) via established Group-level or local Speak Up channels
relating to working conditions, equal treatment and opportunities
and other work-related rights as defined in ESRS S1-17. Complaints
relating to more than one category are recorded under the
category considered most serious and significant.
Work-related incidents of discrimination, including harassment,
covers incidents of discrimination including on the grounds
of gender, racial or ethnic origin, nationality, religion or belief,
disability, age, sexual orientation. Incidents are recorded in local
people management systems (PMS), local Speak-Up channels or in
the Group Speak-Up channel.
Incidents reported through our Group Speak Up channel are
guaranteed anonymity. As a result, we can not always verify whether
complaints are also recorded in local Speak Up systems. The right to
anonymity is prioritised over the risk of double-counting.
Fines, penalties and compensation for damages arising from work-
related incidents and complaints as well as severe human rights
violations includes fines and penalties finally imposed on ISS by
competent regulators. This also includes specific compensation
paid for damages to affected current or former ISS employees
in relating to such incidents, complaints or violations. In the
consolidated financial statements such costs are reported in the
line Other operating expenses.
Severe human rights violations are incidents that involve forced
labour, human trafficking and/or child labour. Such incidents
include lawsuits, formal complaints received by ISS and serious
allegations in public reports or the media, where these are
connected to ISS employees, if not disputed by ISS.
Work-related incidents
12
9
Severe human rights violations
-
-
Total
12
9
policy
Confirmed incidents of corruption and bribery comprise cases
involving abuse of entrusted power by ISS employees in their
capacity as employees, for private gain, including both financial
and non-financial advantages, as defined in the ISS Anti-Corruption
Policy. An incident is considered “confirmed” when it has been
assessed internally and determined to constitute corruption or
bribery, e.g. by the Business Integrity Committee, or when it has
been established so by final ruling from an external authority or a
final court decision. Incidents under investigation are excluded.
Disciplinary actions against employees may include reprimands,
formal warnings, training requirements, reassignment, and demotion.
Convictions for violations of anti-corruption and anti-bribery laws
comprise final un-appealable convictions in criminal proceedings
against ISS or ISS employee in their capacity as an ISS employee for
violation of anti-corruption and anti-bribery laws.
Fines for violations of anti-corruption and anti-bribery laws
comprise the amount paid for final and unappealable fines
imposed by competent authorities for violations of anti-corruption
and anti-bribery laws by ISS any ISS employee in their capacity as
an ISS employee.
policy
Average time to pay an invoice measures the number of days from
the commencement of applicable payment terms until the invoice
is paid. The metric is calculated on an “invoice-by-invoice” basis and
does not take the value of each invoice into account.
The average time to pay an invoice is measured and calculated
in our global spend management system “Sievo” based on
consolidated invoice and payment data from local ERP systems
across the countries in which the Group operates.
Payments aligned with standard payment terms breaks down
supplier spend by applicable payment terms into brackets of 0-30
days, 31-60 days and 60+ days. Data is captured in the Group’s global
spend management system “Sievo”. Calculation of payment terms
for 2025 is based on data for 1 October 2024-30 September 2025.
Outstanding legal proceedings for late payments comprise the
number of ongoing legal proceedings that have been instigated
with a competent court by a supplier against ISS in relation to late
payments. The metric excludes proceedings relating to disputes
over the quality, quantity or characteristics of the goods, services or
similar supplied to ISS.
2
Incidents
of
corruption
and
bribery
3
Payment
practices
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
(Number)
2025
2024
Confirmed incidents
2
1
Convictions for violations of anti-corruption
and anti-bribery laws
-
-
(DKKm)
2025
2024
Fines for convictions for violations of
anti-corruption and anti-bribery laws
-
-
(number, unless otherwise stated)
2025
2024
Average time to pay an invoice (days)
48
48
Payments aligned with standard terms (% of spend)
0-30 days
48%
45%
31-60 days
29%
31%
> 60 days
23%
24%
Outstanding legal proceedings for late payments
0
0
DISCLOSURES
Incorporation by reference
The table below provides an overview of where information can be found
relating to ESRS disclosures that have been incorporated by reference and
stated outside of the sustainability statement as part of other sections of
this Annual Report.
Disclosures
Section/Report
Page
GOV-1
§21a
Number of executive and non-executive
members of the Board of Directors
Corporate governance
25
GOV-1
§21B
Employee representatives on the
Board of Directors
Corporate governance
25
GOV-1
§21d, §23a-b
Diversity of the Board of Directors
Corporate governance
25
GOV-1
§21e
Percentage of independent Board
of Directors members
Corporate governance
25
GOV-1
G1.GOV-1
§23a-b, §5b,
§21c, §17
Information on Board competences,
skills and relevant experience
Corporate governance
25
GOV-2
§26c
Material impacts, risks and opportunities
addressed by the Board of Directors
Corporate governance
25
SBM-1
§42, §42a-b
Business model and value chain
Our business model
9
1)
SBM-1
§40a i-iii,
40e-g
Business strategy and products/services
linkage to sustainability matters
Our strategic choices
8
1)
SBM-1
§40b
Total revenue by significant sectors
Consolidated financial
statements, note 1.2
101
S1-6
AR5
Employees by country
Performance
37
1)
1)
See the 2025 Annual Report of ISS A/S.
Other
Incorporation by reference
Disclosure requirements covered
by ISS’s sustainability statement
Disclosure requirements that
derive from other EU legislation
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DISCLOSURES
General
ESRS
2
–
General
Disclosures
Section/Report
Page
BP-1
General basis for preparation of the sustainability statement
Basis of preparation
42
BP-2
Disclosures in relation to specific circumstances
Basis of preparation
42
GOV-1
The role of the administrative,
management and supervisory bodies
Corporate governance
Sustainability governance
25
36
GOV-2
Information provided to and sustainability matters addressed
by the company’s administrative, management and
supervisory bodies
Corporate governance
Sustainability governance
25
36
GOV-3
Integration of sustainability-related performance
in incentive schemes
Sustainability governance
37
GOV-4
Statement on sustainability due diligence
Due diligence
37
GOV-5
Risk management and internal controls
over sustainability reporting
Sustainability governance
37
SBM-1
Strategy, business model and value chain
Sustainability strategy
Business model and value chain
31
32
SBM-2
Interests and view of stakeholders
Stakeholder engagement
40
SBM-3
Material impacts, risks and opportunities (IRO) and
their interaction with strategy and business model
Business model and value chain
Double materiality assessment
32
38
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Double materiality assessment
39
IRO-2
Disclosure requirements in ESRS covered by
the undertakings sustainability statement
Basis of preparation
Disclosures
31
83-84
Social
ESRS
S1
–
Own
workforce
Disclosures
Section/Report
Page
S1-1
Policies related to own workforce
Labour and human rights
Diversity, inclusion and belonging
Health, safety and well being
Data privacy
45
48
50
53
S1-2
Processes for engaging with own workers and workers’
representatives about impacts
Stakeholder engagement
40
S1-3
Processes to remediate negative impacts and channels for
own workers to raise concerns
As S1-1 above
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
As S1-1 above
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
As S1-1 above
S1-6
Characteristics of the undertaking’s employees
Social data
57
S1-7
Characteristics of non-employee workers in ISSs own
Workforce
Social data
58
S1-8
Collective bargaining coverage and social dialogue
Social data
58
S1-9
Diversity metrics
Social data
58-59
S1-10
Adequate wages
Social data
59
S1-12
Persons with disabilities
Social data
59
S1-13
Training and skills development metrics
Social data
59
S1-14
Health and safety metrics
Social data
60
S1-16
Remuneration metrics (pay gap and remuneration ratio)
Social data
61
S1-17
Incidents, complaints and severe human rights impacts
Governance data
81
Covered
by
ISS’s
sustainability
statement
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DISCLOSURES
Social
ESRS
S2
–
Workers
in
the
value
chain
Disclosures
Section/Report
Page
S2-1
Policies related to workers in the value chain
Workers in the value chain
Forced labour and child labour
54
57
S2-2
Processes for engaging with workers in the value chain
and workers’ representatives about impacts
Stakeholder engagement
41
S2-3
Processes to remediate negative impacts and channels for workers
in the value chain to raise concerns
As S2-1 above
54, 56
S2-4
Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing material
opportunities related to workers in the value chain, and
effectiveness of those actions
As S2-1 above
54, 56
S2-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
As S2-1 above
54, 56
Environment
ESRS E1 – Climate change
Disclosures
Section/Report
Page
E1-1
Transition plan for climate change mitigation
Climate change mitigation
64
E1-2
Policies related to climate change mitigation and adaptation
Climate change mitigation
66
E1-3
Actions and resources in relation to climate change policies
Climate change mitigation
68
E1-4
Targets related to climate change mitigation and adaptation
Climate change mitigation
67
E1-5
Energy consumption and mix
Environmental data
70
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
Environmental data
71
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits
Environmental data
NM
E1-8
Internal carbon pricing
Environmental data
NM
ESRS
S4
–
Consumers
and
end-users
Disclosures
Section/Report
Page
S4-1
Policies related to consumers and end-users
Data privacy
53
S4-2
Processes for engaging with consumers and end-users
and workers’ representatives about impacts
Stakeholder engagement
41
S4-3
Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns
Data privacy
54
S4-4
Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing material
opportunities related to workers in the value chain, and
effectiveness of those actions
Data privacy
54
S4-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Data privacy
54
Governance
G1
–
Business
conduct
Disclosures
Section/Report
Page
G1-1
Business conduct policies and corporate culture
Corporate culture
Anti-corruption and bribery
76-78
79
G1-2
Management and relationship with suppliers
Supplier relationships
80
G1-3
Prevention and detection of corruption or bribery
Governance data
79
G1-4
Confirmed incidents of corruption or bribery
Governance data
82
G1-6
Payment practices
Governance data
82
Covered
by
ISS’s
sustainability
statement
(continued)
NM: Not material
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DISCLOSURES
General
ESRS 2 – General information
Disclosures
Information
Regulation
Page
GOV-1
21 (d)
General: Board’s gender diversity
SFDR/
Benchmark regulation
25
GOV-1
21 (e)
General: Percentage of board members
who are independent
Benchmark regulation
25
GOV-4
30
General: Statement on due diligence
SFDR
38
SBM-1
40 (d) I
Involvement in activities related
to fossil fuel activities
SFDR/Pillar 3/
Benchmark regulation
NM
SBM-1
40 (d) II
Involvement in activities related
to chemical production
SFDR/
Benchmark regulation
NM
SBM-1
40 (d) III
Involvement in activities related
to controversial weapons
SFDR/
Benchmark regulation
NM
SBM-1
40 (d) Iv
Involvement in activities related
to cultivation and production of tobacco
Benchmark regulation
NM
Social
S1 – Own workforce
Disclosures
Information
Regulation
Page
SBM3 – S1
14 (f)
Risk of incidents of forced labour
SFDR
57
SBM3 – S1
14 (g)
Risk of incidents of child labour
SFDR
57
S1-1
20
Human rights policy commitments
SFDR
46
S1-1
21
Due diligence policies on issues addressed
by the fundamental International Labour
Organisation Conventions 1 to 8
Benchmark regulation
38
S1-1
22
Processes and measures for preventing
trafficking in human beings
SFDR
56
S1-1
23
Workplace accident prevention policy
or management system
SFDR
48-49
S1-3
32 (c)
Grievance/complaints handling mechanisms
SFDR
79
S1-14
88 (b)
and (c)
Number of fatalities and number and rate
of work-related accidents
SFDR/
Benchmark regulation
61
S1-14
88 (e)
Number of days lost to injuries, accidents,
fatalities or illness
SFDR
61
S1-16
97 (a)
Unadjusted gender pay gap
SFDR/
Benchmark regulation
62
S1-16
97 (b)
Excessive CEO pay ratio
SFDR
62
S1-17
103 (a)
Incidents of discrimination
SFDR
81
S1-17
104 (a)
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
SFDR/
Benchmark regulation
81
Derived from other EU legislation
NM: Not material
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DISCLOSURES
Social
S2 – Workers in the value chain
Disclosures
Information
Regulation
Page
SBM3 – S2
11 (b)
Significant risk of child labour or
forced labour in the value chain
SFDR
57
S2-1
17
Human rights policy commitments
SFDR
46
S2-1
18
Policies related to value chain workers
SFDR/Benchmark regulation
55
S2-1
19
Non-respect of UNGPs on Business
and Human Rights and OECD guidelines
SFDR/Benchmark regulation
55
S2-1
19
Due diligence policies on issues addressed
by the fundamental International Labour /
Organisation Conventions 1 to 8
Benchmark regulation
38
S2-4
36
Human rights issues and incidents connected
to its upstream and downstream value chain
SFDR
55
S3-1
16
Human rights policy commitments
SFDR
NM
ESRS S3-1
17
Non-respect of UNGPs on Business and Human
Rights, ILO principles or and OECD guidelines
SFDR/Benchmark regulation
NM
ESRS S3-4
36
Human rights issues and incidents
SFDR
NM
Governance
G1
–
Business
conduct
Disclosures
Information
Regulation
Page
G1-1
10 (b)
United Nations Convention against Corruption
SFDR
NM
G1-1
10 (d)
Protection of whistleblowers
SFDR
NM
G1-4
24 (a)
Fines for violation of anti- corruption
and anti-bribery laws
SFDR/Benchmark regulation
82
G1-4
24 (b)
Standards of anti-corruption and anti-bribery
SFDR
NM
Derived from other EU legislation
(continued)
S4 – Consumers and end-users
Disclosures
Information
Regulation
Page
S4-1
16
Policies related to consumers and end-users
SFDR
54
S4-1
17
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
SFDR/Benchmark regulation
NM
S4-4
35
Human rights issues and incidents
SFDR
NM
NM: Not material
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
DISCLOSURES
Environment
E1
–
Climate
change
Disclosures
Information
Regulation
Page
E1-1
14
Transition plan to reach climate
neutrality by 2050
EU Climate law
63-64
E1-1
16 (g)
Undertakings excluded from
Paris-aligned Benchmarks
Pillar 3/Benchmark regulation
NM
E1-4
34
GHG emission reduction targets
SFDR/Pillar 3/
Benchmark regulation
63
E1-5
38
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors)
SFDR
71
E1-5
37
Energy consumption and mix
SFDR
70
E1-5
43
Energy intensity associated with activities
in high climate impact sectors
SFDR
NM
E1-6
44
Gross Scope 1, 2, 3 and Total GHG emissions
SFDR/Pillar 3/
Benchmark regulation
71
E1-6
53-55
Gross GHG emissions intensity
SFDR/Pillar 3/
Benchmark regulation
71
E1-7
56
GHG removals and carbon credits
EU Climate law
NM
E1-9
66
Exposure of the benchmark portfolio
to climate-related physical risks paragraph
Benchmark regulation
NM
E1-9
66 (a),
66 (c)
Disaggregation of monetary amounts by
acute and chronic physical risk Location of
significant assets at material physical risk
Pillar 3
NM
E1-9
67 (c)
Breakdown of the carrying value of its real
estate assets by energy-efficiency
Pillar 3
NM
E1-9
69
Degree of exposure of the portfolio to
climate-related opportunities paragraph
Benchmark regulation
NM
Environment
E1
–
Climate
change
Disclosures
Information
Regulation
Page
E2-4
28
Amount of each pollutant listed in Annex
II of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil
SFDR
NM
E3-1
9
Water and marine resources
SFDR
NM
E3-1
13
Dedicated policy
SFDR
NM
E3-1
14
Sustainable oceans and seas
SFDR
NM
E3-4
28 (c)
Total water recycled and reused
SFDR
NM
E3-4
29
Total water consumption in m
3
per net revenue on own operations
SFDR
NM
IRO 1 – E4
16 (a) i
-
SFDR
NM
IRO 1 – E4
16 (b)
-
SFDR
NM
IRO 1 – E4
16 (c)
-
SFDR
NM
E4-2
24 (b)
Sustainable land / agriculture practices
or policies
SFDR
NM
E4-2
24 (c)
Sustainable oceans / seas practices
or policies
SFDR
NM
E4-2
24 (d)
Policies to address deforestation paragraph
SFDR
NM
E5-5
37 (d)
Non-recycled waste
SFDR
NM
E5-5
39
Hazardous waste and radioactive waste
SFDR
NM
Derived from other EU legislation
(continued)
NM: Not material
In brief
Our business
Performance
Governance
Sustainability
statement
Financial
statements
FINANCIAL
STATEMENTS
89
Primary financial statements
90 Statement of profit or loss
91 Statement of comprehensive income
92 Statement of cash flows
93 Statement of financial position
94 Statement of changes in equity
95 Significant estimates and judgements
97 1 Operating profit
97 1.1 Segments
100 1.2 Revenue
106 1.3 Employee costs
107 1.4
Other income and expenses, net
108 2 Operating assets, liabilities and free cash flow
108 2.1 Trade receivables and credit risk
110 2.2
Other receivables
111
2.3 Other liabilities
111
2.4 Changes in working capital
112 2.5 Free cash flow
113 2.6
Provisions, contingencies, guarantees and commitments
119 2.7
Right-of-use assets, property and equipment
123 3 Strategic investments and divestments
123
3.1 Intangible assets
126
3.2 Impairment tests
130 3.3 Acquisitions
134 3.4 Divestments
135 4 Capital structure
135 4.1 Equity
138 4.2 Financing
141 4.3 Financial risk management
142
4.4 Interest rate risk
144 4.5
Liquidity risk
146 4.6 Currency risk
148 5 Tax
148
5.1 Income tax
149
5.2 Deferred tax
151 6 Remuneration
151
6.1 Management remuneration
152 6.2 Share-based payments
157 7 Other required disclosures
157
7.1 Pensions and similar obligations
164
7.2 Hyperinflation in Türkiye
167 7.3 Related parties
167
7.4 Fees to auditors
167
7.5 Subsequent events
168
8 Basis of preparation
168
8.1 Other material accounting policies
169
8.2 In-year changes
170
8.3 New regulations
171
8.4 Group companies
174 8.5 Definitions
FINANCIAL
STATEMENTS
90
Statement of profit or loss
1 January – 31 December
(DKKm) 2025 2024
Revenue
1.1, 1.2
84,708
Employee costs
1.3
(53,155)
Consumables
(7,170)
Other operating expenses
(18,165)
Depreciation and amortisation
2.7, 3.1
(1,413)
Operating profit before other items
4,805
Other income and expenses, net
1.4
(118)
Royalty
(1,077)
Amortisation/impairment of customer contracts
3.1
(96)
Operating
profit
1.1
3,514
Finance income
4.2
407
Finance costs
4.2
(988)
Profit before tax
2,933
Income tax
5.1
(621)
Net profit from continuing operations
2,312
Net profit from discontinued operations
-
Net
profit
2,312
Attributable to:
The owner of ISS Global A/S
2,302
Non-controlling interests
10
Net
profit
2,312
FINANCIAL STATEMENTS 91
Statement of comprehensive income
1 January – 31 December
(DKKm) 2025 2024
Net profit
2,312
2,547
Items that will not be reclassified to profit or loss:
Defined benefit plans:
Remeasurement gain/(loss)
7.1
462
(140)
Reimbursement rights related to remeasurement gain/(loss)
7.1.4
(88)
-
Asset ceiling
7.1
(341)
(28)
Tax
5.2
(10)
36
Items that may be reclassified to profit or loss:
FX adjustments of foreign entities
4.1
(1,003)
12
Hyperinflation restatement of equity at 1 January
7.2
332
477
Other comprehensive income
(648)
357
Comprehensive income
1,664
2,904
Attributable to:
The owner of ISS Global A/S
1,670
2,763
Non-controlling interests
(6)
141
Comprehensive income
1,664
2,904
FINANCIAL STATEMENTS 92
Statement of cash flows
At 31 December
(DKKm) Note 2025 2024
Operating profit before other items
4,805
Operating profit before other items from discontinued operations
-
Depreciation and amortisation
2.7, 3.1
1,413
Non-cash items related to hyperinflation
(60)
Share-based payments
50
Changes in working capital
2.4
(805)
Changes in provisions, pensions and similar obligations
(64)
Other expenses paid
(46)
Interest received from companies within the ISS Group
156
Interest received
169
Interest paid to companies within the ISS Group
17
Interest paid
(706)
Income tax paid
(504)
Payments related to royalties
(1,113)
Cash flow from operating activities
3,312
Acquisitions
3.3
(341)
Divestments
3.4
(90)
Acquisition of intangible assets, property and equipment
(561)
Disposal of intangible assets, property and equipment
16
Changes in cash deposits and pledges
(187)
Change in financial assets
87
Cash flow from investing activities
(1,076)
Proceeds from issued bonds
4.2
-
Proceeds from Euro-Commercial Paper (ECP) programme, net
4.2
403
Repayment of bonds
4.2
(3,732)
Repayment of lease liabilities
4.2
(881)
Change in debt to companies within the ISS Group
755
Change in receivables from companies within the ISS Group
2,058
Other financial payments, net
4.2
(72)
Dividends paid to ISS World Services A/S
4.1
(5,600)
Cash flow from financing activities
(7,069)
Total cash flow
(4,833)
Cash and cash equivalents at 1 January
6,829
Total cash flow
(4,833)
Foreign exchange adjustments
(267)
Cash and cash equivalents at 31 December
4.2, 4.5
1,729
Free cash flow
2.5
2,083
FINANCIAL STATEMENTS 93
Statement of financial position
At 31 December
(DKKm) Note 2025 2024
Assets
Intangible assets
3.1, 3.2
17,544
Right-of-use assets
2.7
2,202
Property and equipment
2.7
1,109
Receivables from companies within the ISS Group
3,474
Deferred tax assets
5.2
822
Cash deposits and pledges
187
Financial assets
7.1.4
446
Non-current assets
25,784
Inventories
245
Trade receivables
2.1
12,872
Tax receivables
65
Receivables from companies within the ISS Group
187
Other receivables
2.2
1,554
Cash and cash equivalents
4.2, 4.5
1,729
Current assets
16,652
Total assets
42,436
Equity and liability
Equity attributable to the owner of ISS Global A/S
4.1
5,330
Non-controlling interests
4.1
764
Total equity
6,094
Borrowings
4.2
9,743
Pensions and similar obligations
7.1
1,104
Deferred tax liabilities
5.2
442
Provisions
2.6
311
Non-current liabilities
11,600
Borrowings
4.2
6,277
Trade and other payables
6,743
Tax payables
393
Other liabilities
2.3
11,022
Provisions
2.6
307
Current liabilities
24,742
Total liabilities
36,342
Total equity and liabilities
42,436
FINANCIAL STATEMENTS 94
Statement of changes in equity
1 January – 31 December
Attributable to the owner of ISS Global A/S
(DKKm)
2025
Equity at 1 January
180
9,436
(356)
9,260
770
10,030
Net
profit
-
2,302
-
2,302
10
2,312
Other comprehensive income
4.1
-
5
(637)
(632)
(16)
(648)
Comprehensive income
-
2,307
(637)
1,670
(6)
1,664
Dividends
-
(5,600)
-
(5,600)
-
(5,600)
Transactions with owners
-
(5,600)
-
(5,600)
-
(5,600)
Changes in equity
-
(3,293)
(637)
(3,930)
(6)
(3,936)
Equity at 31 December
180
6,143
(993)
5,330
764
6,094
2024
Equity at 1 January
180
6,985
(668)
6,497
629
7,126
Net
profit
-
2,539
-
2,539
8
2,547
Other comprehensive income
4.1
-
(88)
312
224
133
357
Comprehensive income
-
2,451
312
2,763
141
2,904
Changes in equity
-
2,451
312
2,763
141
2,904
Equity at 31 December
180
9,436
(356)
9,260
770
10,030
Trans-
Non-con-
Share
Retained
lation
trolling
Total
Note
capital
earnings
reserve
Total
interests
equity
FINANCIAL STATEMENTS 95
Significant estimates and judgements
Accounting estimates
1.2
Revenue
Large and complex IFS contracts:
•
Determining the transaction price, including the impact of scope changes (contract modifications)
2.5
Provisions
Estimate of future profitability and likely outcomes:
•
Onerous contracts
•
Claims, disputes and legal proceedings
3.2
Goodwill and
customer contracts
Key assumptions applied for the purpose of impairment testing:
•
Recoverable amounts of CGUs
5.2
Deferred tax
•
Financial forecasts of future taxable profit impacting recognised deferred tax assets
•
Uncertain tax positions – estimate of the amount required to settle the obligations
7.1
Pensions and similar
•
Impact from key assumptions such as salary levels, interest rates, inflation,
obligations
mortality and guaranteed benefits
Accounting judgements
1.2 Revenue
2.2 Other receivables
2.6 Provisions
2.7
Right-of-use assets
3.1
Intangible assets
7.2 Hyperinflation in
Türkiye
Large and complex IFS contracts:
•
Assessment of contractual terms and impact on transaction price
•
Transition and mobilisation costs – assessment of capitalisation criteria (generating or enhancing
resources to be used in satisfying performance obligations and are expected to be recovered)
•
Large and complex IFS contracts – assessment of risks and disputes
•
Onerous contracts – assessment of termination and extension options
•
Lease term – determining whether extension options are reasonably certain to be exercised
•
Cloud-based arrangements – assessment of control and whether configuration/customisation
costs result in an intangible asset
•
Software (owned) – capitalisation of configuration/customisation costs
•
Price index – assessment of which approach to apply in calculating the conversion factor when
restating for hyperinflation, i.e. average year-to-date or average month-to-date
FINANCIAL STATEMENTS 96
Climate-related matters
- no material impact
In preparing the Group’s consolidated financial statements, management considered the impact of climate matters and related risks in
relation to 1) the going concern assessment; and 2) applying significant estimates and assumptions. This included both transitional
risks in the form of increased costs incurred as part of transitioning toward a more sustainable economy, and physical risks due to
specific weather events.
Generally, we do not believe that our profitability, cash flow generation or asset base is significantly exposed to climate risk, which is
based on our general ability to pass on cost increases to customers as evidenced by our relative historic margin stability an d on the
fact that we are an asset-light operation with low operational investment needs.
As a result, it is management’s assessment, that climate-related matters 1) will not have a significant impact on the Group’s going
concern assessment, or in the long term (next five years); and 2) did not have a material impact on the Group’s significant accounting
estimates and assumptions applied in these consolidated financial statements.
Making judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements required management to make judgements, estimates and
assumptions that affected the reported amounts of assets, liabilities, income and expenses, and the accompanying disclosures,
including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a m aterial
adjustment to the carrying amount of assets or liabilities in future periods.
Estimates and assumptions are reviewed on an ongoing basis and have been prepared taking macroeconomic and geopolitical
developments into consideration, but still ensuring that one-off effects, which are not expected to exist in the long term, do not affect
estimation and determination of these key factors, including discount rates and expectations for the future.
FINANCIAL STATEMENTS 97
SECTION
1
Operating
profit
1.1 Segments
1.1.1
Operating and reportable segments
ISS is a leading, global provider of workplace and facility service solutions operating in 57 countries. The Group’s operations and
business performance are generally managed based on a geographical structure. Countries are grouped into four regions, which
represent the Group’s reportable segments.
The regions have been identified based on a key principle of grouping countries that share market conditions and cultures. Countries
where we do not have a full country-based support structure (global managed services) are combined in a separate segment “Other
countries”. An overview of the grouping of countries into regions is presented in 8.4, Group companies.
2025
(DKKm)
Northern
Europe
Central &
Southern
Europe
Asia &
Pacific Americas
Other
countries
Total
segments
Unall./IC
elim
Group
Revenue, excl. IAS 29
32,286
29,307
14,572
7,734
872
84,771
(44)
84,727
Revenue
32,286
29,288
14,572
7,734
872
84,752
(44)
84,708
Employee costs
(18,737)
(19,428)
(10,152)
(4,318)
(179)
(52,814)
(341)
(53,155)
Depreciation and amortisation
(609)
(546)
(142)
(93)
(3)
(1,393)
(20)
(1,413)
Operating profit before other items, excl. IAS 29
1,952
1,972
1,051
298
53
5,326
(453)
4,873
Operating profit before other items
1,952
1,904
1,051
298
53
5,258
(453)
4,805
Key
ratios:
Operating margin, excl. IAS 29
6.0%
6.7%
7.2%
3.9%
6.1%
6.3%
-
5.8%
Operating margin
6.0%
6.5%
7.2%
3.9%
6.1%
6.2%
-
5.7%
Other income and expenses, net
(15)
(32)
(3)
(1)
-
(51)
(67)
(118)
Royalty
(385)
(339)
(246)
(106)
(1)
(1,077)
-
(1,077)
Amortisation/impairment of customer contracts
(16)
(63)
-
(17)
-
(96)
-
(96)
Operating
profit
1,536
1,470
802
174
52
4,034
(520)
3,514
FINANCIAL STATEMENTS 98
1.1 Segments (continued)
Central &
2024
(DKKm)
Northern
Europe
Southern
Europe
Asia &
Pacific
Americas
Other
countries
Total
segments
Unall./IC
elim
Group
Revenue, excl. IAS 29
31,328
27,159
14,403
9,407
767
83,064
(38)
83,026
Revenue
31,328
27,915
14,403
9,407
767
83,820
(38)
83,782
Employee costs
(18,239)
(18,686)
(9,928)
(4,733)
(176)
(51,762)
(307)
(52,069)
Depreciation and amortisation
(560)
(520)
(141)
(109)
(4)
(1,334)
(15)
(1,349)
Operating profit before other items, excl. IAS 29
1,803
1,867
1,032
547
30
5,279
(390)
4,889
Operating profit before other items
1,803
1,855
1,032
547
30
5,267
(390)
4,877
Key
ratios:
Operating margin, excl. IAS 29
5.8%
6.9%
7.2%
5.8%
3.9%
6.4%
-
5.9%
Operating margin
5.8%
6.6%
7.2%
5.8%
3.9%
6.3%
-
5.8%
Other income and expenses, net
6
(43)
(2)
(60)
-
(99)
(52)
(151)
Royalty
(398)
(338)
(240)
(121)
-
(1,097)
-
(1,097)
Amortisation/impairment of customer contracts
(14)
(60)
-
(17)
-
(91)
-
(91)
Operating
profit
1,397
1,414
790
349
30
3,980
(442)
3,538
FINANCIAL STATEMENTS 99
Accounting policy
The Group’s four reportable segments reflect the geographical presence and the strategic management, decision -making and
reporting structure applied by the Executive Group Management (EGM). The EGM manage segment performance primarily based on
Operating profit.
Segment revenue and costs comprise items that are directly attributable to the individual segments. Unallocated items mainly comprise
revenue and cost related to the Group’s corporate functions. Financing activities (finance income or finance costs) and tax planning
(income tax) are managed at Group level and are therefore not allocated to the operating segments.
Segment revenue is presented including internal revenue. Due to the nature of the Group’s business internal revenue is insignificant
and therefore not disclosed.
The geographical distribution of segment revenue and non-current assets is based on the geographical location of the individual
subsidiary providing the service. Significant countries are defined as those representing more than 5% of Group revenue as well as the
Group’s domicile country, Denmark. No customer accounts for more than 10% of Group revenue.
1.1 Segments (continued)
1.1.2
Geographical distribution
Revenue
Non-current assets
1)
(DKKm) 2025 2024 2025 2024
UK & Ireland
12,400
11,939
2,215
2,314
Switzerland
7,282
7,052
2,254
2,300
Türkiye
6,454
6,622
1,800
1,929
Germany
6,194
5,713
1,397
1,498
Spain
5,786
5,136
2,199
1,786
US & Canada
5,633
6,870
2,172
2,481
Australia & New Zealand
5,502
5,279
1,252
1,301
Denmark (country of domicile)
3,307
3,224
806
820
Other countries
2)
32,150
31,947
10,867
12,783
Total
84,708
83,782
24,962
27,212
1)
Excluding deferred tax assets.
2)
Including unallocated items and eliminations.
FINANCIAL STATEMENTS 100
1.2 Revenue
The Group’s revenue is generated from rendering of workplace and facility service solutions to more than 40,000 customers. Our
services are provided on a daily basis at our customers sites, largely by our own employees (placemakers) given our self-delivery
business model. Subcontractors are only used to a limited extent and primarily for delivery of highly specialised services (e.g. within
technical) and/or infrequently delivered services.
The vast majority of our revenue is portfolio revenue 84% (2024: 84%), which means that revenue is contractually agreed (committed)
with the customer at contract inception. With initial contract terms typically of 3-5 years, this revenue base offers a relatively high
stability and predictability. The remaining part of our revenue is non-recurring (not committed) in the form of projects and above-base
work (e.g. capital projects, events, etc.), which is demanded on a non-recurring basis and agreed separately with the customer.
Start-up of new key account contracts often requires ISS to incur significant transition and mobilisation costs (costs to fulfil a contract)
before service delivery commences in order to be able to fulfil the performance obligations under the contracts.
Capitalised transition and mobilisation costs are presented in 2.2, Other receivables.
1.2.1
Commercial models
Our contracts are individually negotiated with each customer based on their specific needs. Despite individuality in contract s, we do
however generally operate based on variations of the following three commercial models:
1)
Fixed price contracts;
2)
Cost-plus contracts; and
3)
Cost-plus variations (typically capped)
Determining the transaction price varies depending on the model as described in Accounting policies. However, they all includ e
mechanisms to adjust prices due to a) inflation and regulatory changes and b) scope changes. These contractual mechanisms, along
with strong and well-embedded processes for implementing such adjustments, are essential in mitigating the risk of contracts
becoming onerous due to e.g. changing customer needs, macroeconomic or regulatory events etc.
1.2.2
Disaggregation
Aligned with our strategy, we disaggregate revenue from contracts with customers based on:
•
Revenue base (portfolio vs. projects and above-base)
•
Customer category
•
Customer segment
•
Core services
The distribution of revenue among our portfolio and above-base work, customer category, customer segment and services within the
regions is largely the same as the overall distribution for the Group. However, in Americas, the share of food services is relatively higher
and healthcare significantly lower than compared to the rest of the Group.
The overview on the next page illustrates the relationship between disaggregation of revenue and revenue per reportable segments.
FINANCIAL STATEMENTS 101
1.2 Revenue (continued)
Disaggregation of revenue
2025
Northern
Central &
Southern
Asia &
Other
coun-
Unall./
(DKKm)
Europe
%
Europe
%
Pacific
%
Americas
% tries
IC elim.
Total
%
Revenue base
Portfolio
26,029
81%
24,241
83%
13,127
90%
6,899
89%
607
(26)
70,877
84%
Projects and above-base work
6,257
19%
5,047
17%
1,445
10%
835
11%
265
(18)
13,831
16%
Total
32,286
100%
29,288
100%
14,572
100%
7,734
100%
872
(44)
84,708
100%
Customer category
Key accounts
23,489
73%
19,024
65%
10,633
73%
5,879
76%
863
(39)
59,849
71%
Large and medium
6,612
20%
8,757
30%
3,177
22%
1,844
24%
-
-
20,390
24%
Small and route-based
2,185
7%
1,507
5%
762
5%
11
0%
9
(5)
4,469
5%
Total
32,286
100%
29,288
100%
14,572
100%
7,734
100%
872
(44)
84,708
100%
Customer segments
1)
Office-based
13,962
43%
11,893
41%
4,652
32%
3,659
48%
446
(38)
34,574
41%
Production-based
6,373
20%
5,916
20%
3,115
21%
2,104
27%
400
(6)
17,902
21%
Healthcare
4,849
15%
4,673
16%
3,307
23%
102
1%
-
-
12,931
15%
Other
7,102
22%
6,806
23%
3,498
24%
1,869
24%
26
-
19,301
23%
Total
32,286
100%
29,288
100%
14,572
100%
7,734
100%
872
(44)
84,708
100%
Core services
Cleaning
13,188
41%
13,617
46%
6,810
47%
2,057
27%
92
(18)
35,746
42%
Technical
7,837
24%
8,965
31%
1,359
9%
1,552
20%
246
(2)
19,957
24%
Food
5,626
17%
2,400
8%
1,139
8%
3,275
42%
57
(1)
12,496
15%
Other
5,635
18%
4,306
15%
5,264
36%
850
11%
477
(23)
16,509
19%
Total
32,286
100%
29,288
100%
14,572
100%
7,734
100%
872
(44)
84,708
100%
1)
ESRS
2,
SBM-1
§40b
FINANCIAL STATEMENTS 102
1.2
Revenue (continued)
2024
Northern
Central &
Southern
Asia &
Other
coun-
Unall./
(DKKm)
Europe
%
Europe
%
Pacific
%
Americas
% tries
IC elim.
Total
%
Revenue base
Portfolio
25,189
80%
23,574
84%
12,998
90%
7,795
83%
513
(23)
70,046
84%
Projects and above-base work
6,139
20%
4,341
16%
1,405
10%
1,612
17%
254
(15)
13,736
16%
Total
31,328
100%
27,915
100%
14,403
100%
9,407
100%
767
(38)
83,782
100%
Customer category
Key accounts
22,694
73%
18,134
65%
10,299
72%
7,433
79%
759
(36)
59,283
71%
Large and medium
6,688
21%
8,425
30%
3,235
22%
1,958
21%
-
-
20,306
24%
Small and route-based
1,946
6%
1,356
5%
869
6%
16
0%
8
(2)
4,193
5%
Total
31,328
100%
27,915
100%
14,403
100%
9,407
100%
767
(38)
83,782
100%
Customer segments
1)
Office-based
13,436
43%
11,096
40%
4,465
31%
3,951
42%
378
(32)
33,294
40%
Production-based
6,209
20%
6,057
22%
3,245
22%
3,397
36%
354
(6)
19,256
23%
Healthcare
4,693
15%
4,291
15%
3,112
22%
103
1%
-
-
12,199
14%
Other
6,990
22%
6,471
23%
3,581
25%
1,956
21%
35
-
19,033
23%
Total
31,328
100%
27,915
100%
14,403
100%
9,407
100%
767
(38)
83,782
100%
Core services
Cleaning
13,090
42%
12,697
45%
6,808
47%
2,253
24%
102
(19)
34,931
42%
Technical
7,408
24%
8,241
30%
1,157
8%
2,487
26%
140
(16)
19,417
23%
Food
5,720
18%
2,554
9%
1,234
9%
3,436
37%
57
(1)
13,000
15%
Other
5,110
16%
4,423
16%
5,204
36%
1,231
13%
468
(2)
16,434
20%
Total
31,328
100%
27,915
100%
14,403
100%
9,407
100%
767
(38)
83,782
100%
1)
ESRS
2,
SBM-1
§40b
FINANCIAL STATEMENTS 103
1.2 Revenue (continued)
1.2.3
Revenue backlog
Our revenue base consists of a mix of yearly contracts, which are renewed tacitly, and thousands of multi-year contracts, the majority
of which have an initial term of 3-5 years. Contracts regularly include options for the customer to terminate for convenience within 3-9
months. However, historically we have maintained a retention rate in the range of 93%-95%, supporting that these options are rarely
exercised.
The vast majority of our revenue is portfolio revenue, see 1.2, Revenue. The remaining part is non-recurring in the form of projects and
above-base work (not committed) and thus, excluded from the revenue backlog. In addition, the Group has excluded contracts with a
term of less than 12 months and contracts where the Group invoices a fixed amount for each hour of service provided.
As a result, the amounts disclosed in the maturity table is significantly lower than reported revenue and will likely not reflect the
degree of certainty in future revenue (and cash inflows) to the Group. Therefore, as a supplement, in the management review, p. 16, a
maturity overview for our largest key accounts (> DKK 200 million of annual revenue) is presented.
(DKKm) 2025 2024
< 1 year
23,366
35%
23,510
35%
1-5 years
37,427
56%
36,182
54%
> 5 years
6,377
9%
7,553
11%
Total
67,170
100%
67,245
100%
FINANCIAL STATEMENTS 104
1.2 Revenue (continued)
Accounting policy
Transaction price Our customer contracts are based on three commercial models:
1)
Fixed price contracts;
2)
Cost-plus contracts; and
3)
Cost-plus variations (typically capped)
All three models include mechanisms to adjust the transaction price for:
a)
inflation and regulatory changes; and
b)
scope changes (contract modifications).
Inflation and regulatory adjustments are typically applied annually based on the actual development in salaries/minimum wages or
cost of consumables (e.g. food) based on changes in a price index.
Scope changes regularly occur, particularly for key account customers, to ensure that service solutions continue to meet customers’
current needs. Such modifications are generally agreed with the customer in advance as per a specified change management
procedure in the contract.
In addition to these general adjustment mechanisms applicable for all commercial models, the differences in relation to determining
the transaction price are outlined below.
For fixed price contracts the transaction price is based on a fixed amount for the agreed services as stated in the contract.
For cost-plus contracts the transaction price is determined based on actual costs incurred with the addition of an agreed
markup/management fee. In addition, the transaction price may include a variable consideration element determined based on
achievement of certain defined key performance indicators (KPIs). Variable consideration is assessed on a contract-by-contract basis
on a recurring basis in alignment with the customer, and is measured based on the most likely amount management expects ISS to be
entitled to.
For cost-plus variations, determining the transaction price is similar to cost-plus (including variable consideration), however typically
with a cap, i.e. if ISS’s actual costs exceed a guaranteed maximum price (GMP), the consideration is reduced to the GMP. Determining
the transaction price requires assessment of which costs may be included in the calculation basis and if relevant, whether within the
capped maximum.
Recognition Revenue from contracts with customers is recognised when control of the services is transferred to the customer. Control
is transferred over time as the customer simultaneously receives and consumes the benefits provided by the Group.
Revenue is recognised based on the actual services provided in the reporting period as a proportion of the total services to be
provided. The measure of progress is determined based on the actual labour hours incurred and costs expensed relative to the total
expected labour hours and costs required to complete the service. Estimates of labour hours, costs and the extent of progress toward
completion are revised if circumstances change. Any resulting increases or decreases in the estimated revenue or costs are
recognised in profit or loss in the period in which the changes become known to management.
Contract modifications are accounted for going forward with no adjustments to revenue recognised up to the date of modification.
Variable consideration is recognised as services are performed to the extent that it is highly probable that a significant reversal of the
cumulative amount of revenue recognised will not occur.
Customers are invoiced on a monthly basis in accordance with contractual terms. Payment terms are agreed on an individual basis. No
significant financing component is identified as the contractual credit term is consistent with market practice.
FINANCIAL STATEMENTS 105
Accounting estimates and judgements
Due to our strategic focus on key accounts, our customer base contains a number of large and complex IFS contracts in terms of
determining the transaction price, including the impact of scope changes (contract modifications).
Management makes detailed assessments of the contractual terms and on that basis estimates the amount of revenue expected to be
received based on services delivered, including an assessment of the probability of such amount subsequently being reversed.
For large and complex contracts, the outcome may vary significantly, should the judgements and assumptions applied by
management in their assessments not be realised as expected.
1.2 Revenue (continued)
Accounting policy (continued)
Gross or net presentation The Group’s strategy and business model are based on delivery of integrated facility services (IFS) to its
customers with ISS being responsible for providing the services specified in the contracts. Consequently, based on an assessment of
its revenue arrangements, the Group has concluded that – as a main rule – it acts as the principal, and consequently recognises
revenue on a gross basis.
In arrangements where ISS engages subcontractors to perform all or part of the services, the Group assesses, on a contract -by-
contract basis, whether it acts as the principal or as the agent. The assessment is based on whether ISS controls the services before
they are transferred to the customer.
Typically, when the Group has concluded that ISS controls the services and is the principal, ISS:
1)
engages with the customer before and after the services are provided, and takes the responsibility for fulfilment
of services according to the contract;
2)
has discretion in establishing the price for the agreed services;
3)
selects and engages with the subcontractor; and
4)
agrees changes to services directly with the customer.
When the Group concludes that it does not control the services before they are transferred to the customer, and therefore acts as an
agent, revenue is recognised on a net basis, representing the amount (fee or commission) to which the Group expects to be entitled
for arranging the services.
FINANCIAL STATEMENTS 106
1.3 Employee costs
(DKKm) Note 2025 2024
Wages and salaries
42,358
42,012
Social security costs
9,198
8,524
Pensions
7.1
1,549
1,482
Share-based payments
6.2
50
51
Total
53,155
52,069
Average number of employees
320,057
327,557
Our strategy is based on self-delivery of our services by our placemakers, who are our key resource and essential to our value creation.
Our business model is asset-light and therefore employee costs is our single largest cost category.
Government grants
In 2025, the Group recognised government grants of DKK 156 million (2024: DKK 178 million) in the form of wage subventions, which
have been recognised as a reduction of employee costs. The grants compensated the Group primarily for social security, wage
increases as well as for employing certain categories of employees such as trainees, disabled persons, long-term unemployed and
employees in certain age groups.
FINANCIAL STATEMENTS 107
Accounting policy
Other income and expenses, net consists of recurring and non-recurring items that management does not consider to be part of the
Group’s ordinary operating activities, i.e. divestment gains and losses, remeasurement of disposal groups classified as held for sale, the
winding-up of operations, disposal of property as well as acquisition and integration costs.
Other income and expenses, net are presented separately from the Group’s ordinary operating activities as management believes that
this best reflects the Group’s financial performance.
1.4 Other income and expenses, net
(DKKm) 2025 2024
Gain on divestments
1
9
Other income
1
9
Loss on divestments
(11)
(64)
Acquisition and integration costs
(39)
(32)
Other
(69)
(64)
Other expenses
(119)
(160)
Other income and expenses, net
(118)
(151)
Loss on divestments mainly related to adjustments to prior year divestment.
Acquisition and integration costs related to the Group's acquisitions in Spain, Austria and Belgium. Of the total amount, DKK 14 million
was acquisition costs (2024: DKK 10 million).
Other comprised mainly remeasurement of the contingent consideration related to the transaction in Türkiye in 2021.
FINANCIAL STATEMENTS 108
SECTION 2
Operating assets, liabilities and free cash flow
2.1 Trade receivables and credit risk
2.1.1
Gross and net amounts
(DKKm)
Central & Southern Europe
6,222
(37)
6,185
5,371
(45)
5,326
Northern Europe
3,852
(84)
3,768
3,879
(67)
3,812
Asia & Pacific
1,987
(19)
1,968
2,113
(30)
2,083
Americas
827
(4)
823
1,105
(12)
1,093
Other countries
128
-
128
135
-
135
Total
13,016
(144)
12,872
12,603
(154)
12,449
Not past due
11,827
(1)
11,826
11,285
(4)
11,281
Past due 1 to 60 days
667
(1)
666
754
(6)
748
Past due 61 to 180 days
88
(9)
79
120
(11)
109
Past due 181 to 360 days
26
(13)
13
89
(37)
52
More than 360 days
408
(120)
288
355
(96)
259
Total
13,016
(144)
12,872
12,603
(154)
12,449
Expected credit losses
(DKKm) 2025 2024
At 1 January
(154)
(127)
FX
adjustments
9
(2)
Acquisitions
(2)
(18)
Additions
(81)
(68)
Unused amounts reversed
65
40
Unrecoverable amounts written off
19
21
At 31 December
(144)
(154)
Development in 2025
In 2025, trade receivables increased to DKK 12,872 million (2024: DKK 12,449 million) due to organic growth driven by price increases
and higher activity levels at customer sites across the Group as well as acquisitions in Spain and Austria. In addition, in Türkiye
payment cycles are longer than Group average, which contributed further to the increase.
Expected credit losses comprised 1.1% (2024: 1.2%) of trade receivables (gross) and trade receivables not past due was 91% of trade
receivables (gross) (2024: 90%).
2025
2024
Gross
Expected
credit losses
Carrying
amount
Gross
Expected
credit losses
Carrying
amount
FINANCIAL STATEMENTS 109
Credit
risk
- low exposure
The Group’s exposure to credit risk is inherently low due to its business model and strategic choices leading to a diversified customer
portfolio, both in terms of geography, industry sector, customer size and services.
Risk management
Exposure to credit risk and expected credit losses are managed locally in each operating entity.
We have a strong ongoing assessment and monitoring of customers’ creditworthiness and the credit limits are set as deemed
appropriate taking into account the customer’s financial position and the current market conditions.
In 2025, we continued to manage inflation tightly through price increases. The vast majority of cost increases were passed on to
customers as per the agreed contractual terms with no increase in credit losses.
Generally, the Group does not hold collateral as security for trade receivables.
Accounting policy
Trade receivables comprise invoiced amounts and unbilled revenue. Unbilled revenue represents consideration for services where the
related performance obligation has been satisfied, but not yet invoiced. Trade receivables are recognised at the invoiced amount less
expected credit losses, which equals amortised costs due to their short-term nature.
The Group applies the simplified approach to measuring expected credit losses whereby a lifetime expected loss allowance is
recognised for all trade receivables. The expected loss rates are calculated based on aging profiles and are applied to groups of
customers with similar credit risk characteristics, e.g. geographical region, industry sector and customer rating. Historical loss rates
are adjusted to reflect current conditions and forward-looking information, including relevant macroeconomic factors that may affect
customers’ ability to settle their receivables.
Trade receivables are generally written off when there is no reasonable expectation of recovery. Write-offs are presented in Other
operating expenses. Subsequent recovery or reversal of expected credit losses are credited against the same line item.
Factoring The Group enters into factoring arrangements, including participation in customers’ supply chain finance programmes
(together referred to as factoring) with certain key account customers.
Trade receivables subject to factoring are derecognised when the derecognition criteria are met and substantially all risks and
rewards are transferred to the factor. Upon derecognition, the Group retains no continuing involvement in, and bears no residual risk
relating to, the transferred receivables.
2.1
Trade receivables and credit risk (continued)
2.1.2
Factoring/sale of receivables
For selected key account customers that meet the criteria of the Group’s factoring policy, the Group may enter into factoring
arrangements, including participation in customers’ supply chain finance programmes (together referred to as factoring). Such
arrangements are applied to support cash collection and manage working capital, primarily by mitigating the impact of extended
customer payment terms and the necessary investments in the contract transition and mobilisation phases.
Under these arrangements, substantially all risks and rewards associated with the trade receivables are transferred, and the Group
has neither continuing involvement nor exposure to credit risk in respect of the underlying customers. Accordingly, the related trade
receivables are derecognised.
At 31 December 2025, factoring amounted to DKK 1.59 billion (2024: DKK 1.53 billion), reflecting revenue growth from key account
customers, where invoices, as per the Group’s factoring policy, are eligible for factoring.
FINANCIAL STATEMENTS 110
Accounting judgement
Transition and mobilisation (costs to fulfil a contract) comprise costs directly related to startup of operations of certain large, longterm
contracts. Examples include the transfer of employees from previous suppliers, site due diligence, planning and developing service
plans. Such costs include internal direct costs and external costs e.g. to consultants.
Capitalisation of transition and mobilisation costs involves management’s judgement to determine whether the criteria for
capitalisation are met, including if the costs relate directly to the contract, generate resources that will be used in satis fying the
performance obligations, and are expected to be recovered, i.e. reflected in the pricing of the contracts.
Bid-related costs, including costs relating to sales work and securing contracts, are expensed as incurred.
2.2
Other receivables
(DKKm) 2025 2024
Supplier rebates and bonuses
468
531
Prepayments to suppliers
334
308
Securities
135
140
Sign-on fees
128
132
Divestment proceeds
64
70
Transition and mobilisation
62
44
Government grants
47
69
Derivatives
25
66
Other
291
291
Total
1,554
1,651
Supplier rebates and bonuses comprised volumerelated supplier discounts and reflects the Group’s continued efforts to minimise the
number of suppliers and drive synergies and cost savings.
Prepayments to suppliers comprised various payments mainly related to IT licences, utilities and insurance.
Securities related to a savings plan in the US administered by ISS on behalf of certain senior employees.
Sign-on fees comprised upfront discounts to certain large customers incurred in the normal course of business, most significantly in
the UK, Australia and the US and on certain global key accounts.
Divestment proceeds mainly related to the divestment of Specialized Services in the US, where part of the consideration is deferred.
Transition and mobilisation comprised costs to fulfil the performance obligation under certain large long-term contracts. At 31
December 2025, capitalised transition and mobilisation costs amounted to DKK 62 million (2024: DKK 44 million) and related mainly to
DEFRA and DWP in the UK and the Australian Defence in Australia.
Government grants related primarily to wage subventions in Spain, Denmark and Singapore as well as enterprise development
support in China.
Other comprised refunds from customers, accrued interest, VAT, employee-related taxes and other recoverable amounts.
FINANCIAL STATEMENTS 111
Accounting policy
Other receivables comprise various items of different nature and thus different measurement methods are applied. As these items are
considered individually immaterial, they are presented together as Other receivables.
Except for the items described below, other receivables are recognised initially at cost and subsequently at amortised cost. Due to the
short-term nature of other receivables, amortised cost will equal the cost.
Sign-on fees and transition and mobilisation costs are capitalised and amortised over the initial secured contract term consistent with
ISS’s transfer of the related services to the customer.
Securities and derivatives are measured at fair value with fair value adjustments being recognised in profit or loss. The fair value of
derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative.
2.2 Other receivables (continued)
2.3
Other liabilities
(DKKm) 2025 2024
Accrued wages, pensions, holiday allowances and social security
5,352
5,473
Prepayments from customers
1,176
1,113
Tax withholdings, VAT etc.
1,907
1,811
Debt to companies within the ISS Group
1,441
1,709
Contingent consideration and deferred payments
276
227
Accrued interests
139
175
Savings plan
135
140
Derivatives
52
30
Other
544
369
Total
11,022
11,047
Savings plan related to a plan in the US under which ISS has invested in securities, see 2.2, Other receivables. The plan is administered
by ISS on behalf of certain senior employees.
Other comprised customer discounts, etc.
2.4 Changes in working capital
(DKKm) 2025 2024
Changes in inventories
Changes in receivables
Changes in payables
2
(823)
16
(14)
(1,009)
615
Total
(805)
(408)
FINANCIAL STATEMENTS 112
2.5 Free cash flow
(DKKm) Note 2025 2024
Cash flow from operating activities
3,312
3,527
Acquisition of intangible assets, property and equipment
(561)
(513)
Disposal of intangible assets, property and equipment
16
15
Change in financial assets
1)
77
(35)
Addition of right-of-use assets, net
2.7
(761)
(1,078)
Free cash flow
2,083
1,916
1)
Excluding changes in equity-accounted investments of DKK (8) million (2024: DKK 22 million).
Free cash flow as defined by management, see 8.5, Definitions, is specified above. Free cash flow is not a financial performance
measure defined by IFRS. Accordingly, the measure and its calculation is presented as it is used by management as an alternative
performance measure in managing the business.
The free cash flow measure should not be considered a substitute for those measures required by IFRS and may not be calculated by
other companies in the same manner. As such, reference is made to the IFRS measures included in the consolidated statement of cash
flows of the consolidated financial statements, see p. 92.
FINANCIAL STATEMENTS 113
2.6 Provisions, contingencies, guarantees and commitments
2.6.1 Provisions
(DKKm)
Legal claims
and disputes
Self-
insurance
Restruc-
turings
Onerous
contracts
Other
Total
2025
At 1 January
95
242
1
25
238
601
FX
adjustments
(10)
(25)
-
-
(9)
(44)
Profit or loss impact:
Additions
56
293
46
26
104
525
Unused amounts reversed
(23)
(12)
-
-
(9)
(44)
Used during the year (payment)
(38)
(270)
(16)
(19)
(99)
(442)
Acquisitions
12
3
-
7
-
22
At 31 December
92
231
31
39
225
618
Non-current
34
125
-
26
126
311
Current
58
106
31
13
99
307
2024
At 1 January
162
263
74
26
225
750
FX
adjustments
-
21
-
-
6
27
Profit or loss impact:
Additions
54
296
-
13
3
366
Unused amounts reversed
(33)
(40)
-
(13)
(1)
(87)
Used during the year (payment)
(88)
(299)
(73)
(3)
(59)
(522)
Acquisitions
-
1
-
2
-
3
Reclass (to)/from other liabilities
-
-
-
-
64
64
At 31 December
95
242
1
25
238
601
Non-current
29
139
1
10
193
372
Current
66
103
-
15
45
229
ISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investigations and legal proceedings arising out
of the normal conduct of its business. These are mainly within:
•
Commercial/contractual matters
•
Labour-related
•
Divestments and M&A
•
Tax/social regulations
Provisions are recognised in relation to such obligations for probable losses that management deems reasonable and appropriate at
31 December 2025 as reflected in the table above. In addition, ISS is exposed to possible obligations in relation hereto, see 2.6.2,
Contingencies.
FINANCIAL STATEMENTS 114
2.6 Provisions, contingencies, guarantees and commitments
Legal claims and disputes
The provision primarily relates to labour-related claims and disputes regarding wages, overtime, holiday, pensions, severance etc.,
claims and disputes in relation to contractual disagreements with customers and suppliers as well as sales and service tax disputes. In
addition, the provision includes claims and disputes associated with our divestment activities. Such claims and disputes arise out of the
normal conduct of business. At 31 December 2025, the provision predominantly related to Spain, Türkiye, and the US as the previously
mentioned VAT dispute in Norway got resolved in ISS’s favour.
Self-insurance
The provision mainly relates to employers’ liability and/or workers compensation in certain countries and covers claims by employees
for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment.
Listed below are the relevant countries, including selfinsurance limits (yearly):
•
Hong Kong: DKK 24.5m (2024: DKK 27.6m)
•
UK: DKK 21.4m, (aggregated) (2024: DKK 27.0m) and DKK 4.3m per claim (2024: DKK 4.5m)
•
Australia: DKK 4.3m per claim (2024: DKK 4.5m)
•
US: DKK 3.7m per claim (2024: DKK 3.6m)
The provision also includes obligations not covered by the global general business liability insurance in relation to damage caused in
the ordinary course of service delivery, e.g. property damage and bodily injury. The Group is self-insured for claims below DKK 7.5
million (EUR 1 million per claim).
Restructurings
The provision mainly relates to restructuring projects conducted in the ordinary course of business to ensure continuous optimisation
and adjustment of our cost base involving mainly overhead reductions, including termination of employees. In 2025, movements
mainly related to the EGM restructuring in January following the strategy refresh and organisational adjustments of operating
structures on new customer contracts, mainly in the UK.
Onerous contracts
The provision covers unavoidable costs for certain lossmaking contracts. In 2025, we continued to manage inflation through price
increases and cost efficiencies. As a result, we did not identify any significant new onerous contracts.
Other
The provision comprises various other risks and obligations incidental to our business, most significantly related to custome r and
contract-related risks and disputes, acquisitions, divestments and decommissioning liabilities. In 2025, the provision decreased to DKK
225 million (2024: DKK 238 million) mainly due to utilisations (payments) related to the divestment of ISS France. At 31 December 2025,
the provision mainly related to risks and disputes related to customer contracts and divestments in Germany, the US and France.
2.6.2
Contingencies
ISS is party to pending disputes, claims, investigations and litigations arising out of the normal conduct of its business and is therefore
exposed to possible obligations. Management believes that these will not have a material impact on the Group’s financial position
beyond the assets and liabilities recognised in the statement of financial position at 31 December 2025. The existence of suc h
possible obligations will only be confirmed by the occurrence of future events, not entirely within ISS’s control. Due to the inherent
uncertainty, future events may lead to material adverse effects on the Group’s profit or loss, financial position and cash flows from
one or more of these possible obligations.
FINANCIAL STATEMENTS 115
2.6 Provisions, contingencies, guarantees and commitments (continued)
Contractual disagreements
Contractual disagreements with customers arise on a recurring basis in the ordinary course of ISS’s business. While most are resolved
as part of the daily contract management procedures, in some cases the contractual disagreements will lead to legal proceedings.
The Group is currently party to certain disputes and legal proceedings, including in relation to the contract with Deutsche Telekom
(DTAG). As previously informed, ISS has initiated the establishment of an Arbitration Tribunal under the German Institute of Arbitration
(DIS) to decide on the contractual disagreements between ISS and DTAG. In the proceedings, ISS and DTAG have exchanged claims
against each other. ISS has claimed remuneration for services performed. DTAG has disputed the claims and is withholding certain
payments to ISS related to the services delivered.
The final oral hearing in the arbitration proceedings took place in mid July 2025. The parties await a ruling by the Tribunal, and have, in
parallel, engaged in discussions on a potential settlement, which aim at settling disputed claims, creating clarity on contractual
positions going forward and further strengthening the collaboration and partnership between ISS and Deutsche Telekom. ISS expects
a final outcome in first half 2026. The outcome of the proceedings remains uncertain.
Management believes that this would not have a material impact on the Group’s financial position beyond the assets and liabilities
already recognised at 31 December 2025.
Labour-related risks
Being a people company operating across different geographies and service areas exposes us to varying and changing labour laws,
including regulations on pension schemes. Although we have policies and procedures in place to ensure that we comply with current
regulations, interpretations and procedures applied by ISS could be challenged in certain jurisdictions and result in dispute s and
possibly liabilities.
The Group is currently party to certain labour-related claims, disputes and legal proceedings, e.g. around wages, overtime, holiday and
severance. Additionally, the Group is aware of certain legal rulings implying that practices applied by ISS could potentially be challenged
and possibly lead to liabilities in the future. Management believes that these would not have a material impact on the Group’s financial
position beyond the assets and liabilities already recognised at 31 December 2025.
Divestments
The Group makes provisions for claims from purchasers or other parties in connection with divestments and the representations and
warranties given in relation to such divestments. In addition, the Group’s divestment activities can give rise to possible obligations,
mainly labour-related, including pension plans, and disputes regarding sales price.
Restructurings
Restructuring projects are being undertaken on an ongoing basis across different geographies and service areas. Labour laws
especially in Europe include restrictions on dismissals and procedural rules to be followed. The procedures applied by ISS co uld be
challenged in certain jurisdictions resulting in disputes and possibly liabilities. Management believes that this would not have a material
impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2025.
Sales and consumption tax disputes
Being a global company operating in various jurisdictions exposes us to varying and changing laws and regulations, including
interpretations from authorities on sales and consumption taxes. Although we have policies and procedures in place to ensure that we
comply with current regulations, interpretations and procedures applied by ISS could be challenged in certain jurisdictions and result in
disputes and possibly liabilities and future cash outflows. The Group is currently party to certain disputes. Management believes that
these would not have a material impact on the Group’s financial position beyond the assets and liabilities already recognised at 31
December 2025.
FINANCIAL STATEMENTS 116
2.6 Provisions, contingencies, guarantees and commitments (continued)
Other (Hong Kong)
On 26 November 2025, Wang Fuk Court, a residential estate in Hong Kong, was hit by a devastating fire, which destroyed 7 out of 8
towers, and cost the lives of more than 160 residents. We extend our deepest condolences to the families of those who lost their lives
in the fire, and our heartfelt sympathies to the Hong Kong community and to all who were injured or otherwise affected by this terrible
tragedy.
ISS, through its subsidiary ISS EastPoint Properties Limited (ISS EPPL), was contracted by the owners’ association of Wang Fuk Court as
property manager until 31 December 2025. As property manager, ISS EPPL provided administrative support and certain on-site services
for the estate. Further, ISS EPPL arranged for specialist services to be carried out by third parties, including as an example the
mandatory installation, maintenance and inspection of the fire safety equipment. These third parties were selected and appointed by
the owners, not by ISS EPPL.
ISS EPPL was not involved in the major renovation project ongoing at the time of the fire, and ISS EPPL played no part in
recommending, selecting or appointing any of the construction companies involved in the renovation.
An independent committee, appointed by the Government of the Hong Kong Special Administrative Region of the People’s Republic of
China, has initiated a thorough review of the incident and the parties involved, and is expected to deliver its report by Q4 2026. ISS EPPL
is cooperating fully with the committee. At this point it is too early to speculate on the outcome of the committee’s findings, but should
any responsibility be attached to ISS EPPL, it is the assessment that appropriate and sufficient insurance cover is in place.
Accounting estimates and judgement
Due to the Group’s strategic focus on key accounts, its customer base includes a number of large complex contracts in terms of
performance obligations towards our customers. The size and complexity of these contracts requires the Group to incur signifi cant
transition and mobilisation costs before service delivery commences to enable fulfilment of the performance obligations. Furthermore,
complex restructuring projects may be necessary and recognised as provisions.
Onerous contracts Management assesses whether contracts may be onerous by estimating the expected future profitability. This
involves estimating total contract revenue and the unavoidable costs of meeting the performance obligations under the contrac t,
including any transition and mobilisation costs incurred. In estimating the future profitability, management makes judgements ,
including in relation to termination and extension options.
Certain contracts are large, complex and longerterm facility service partnerships. When estimating unavoidable costs for such
contracts, management makes assumptions around future costs taking expected optimisations and efficiency gains from improvement
initiatives into consideration. While ISS has inherent risk in this respect, ISS is by nature also dependent on aligning interests with the
customer within the framework of the agreement for the benefit of both parties. The outcome may vary significantly should the
assumptions and judgements applied not be realised as expected by management and applied as basis for their assessment of
whether a contract is onerous.
Restructurings and other provisions Management makes judgements related to various other matters and obligations, primarily
relating to planned/initiated restructurings, and complex customer and contract-related risks and disputes, including ongoing lawsuits
and investigations. Management’s assessment of the likely outcome of lawsuits and investigations, etc., is based on external legal
assistance and established precedents.
For large, complex contracts, the outcome may vary significantly should the judgements and assumptions applied by management in
their assessment of the risks and disputes not be realised as expected.
FINANCIAL STATEMENTS 117
2.6 Provisions, contingencies, guarantees and commitments (continued)
2.6.3
Guarantees
(DKKm) 2025 2024
Bank-guaranteed performance bonds
2,019
1,955
Other performance bonds
5,081
4,896
Performance guarantees (service contracts)
7,100
6,851
Indemnity and guarantee commitments
532
546
ISS has issued certain guarantees in the normal course of business.
Performance guarantees
ISS regularly issues performance guarantees to customers to guarantee satisfactory completion of work in accordance with the service
contract. Such guarantees are issued in the ordinary course of business, either in the form of bank guarantees, parent guarantees or
insurances.
In 2025, other performance bonds increased mainly due to a new customer contract in the UK.
Indemnity and guarantee commitments
Other guarantees are mainly issued to insurance companies towards self-insurance liabilities as well as to owners of rental property
occupied by ISS in certain countries. Furthermore, in a few instances guarantees have been issued to public authorities towards tax
withholding liabilities.
2.6.4
Commitments
(DKKm) 2025 2024
License agreements
Leases
Purchase obligations, suppliers and subcontractors
60
32
86
60
12
29
Total not recognised
178
101
Non-current
75
26
Current
103
75
The Group has entered into various contractual agreements under which it is obligated to pay a continued fee in the short to long
term.
Licence agreements comprise multi-year software license agreements with non-cancellable obligations to pay future license fees. The
majority relates to an enterprise agreement of a suite of office-related productivity and security software.
Leases relates to various contracts not yet commenced at 31 December, but entailing obligations for future lease payments.
Furthermore, the Group has entered into contracts with a limited number of suppliers and subcontractors that contain future purchase
obligations.
FINANCIAL STATEMENTS 118
2.6 Provisions, contingencies, guarantees and commitments (continued)
Accounting policy
Provisions
Provisions are recognised when the Group, as a result of a past event, has a present legal or constructive obligation, it is probable that
an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions
are measured at the estimated costs required to settle the obligation at the reporting date. Provisions are not recognised for future
operating losses. The estimated amount is discounted using the Group’s average borrowing rate, if this significantly impacts the
measurement of the liability.
Provisions are recognised for:
Legal claims and disputes, e.g. lawsuits and other disputes, based on external legal assistance and established precedents.
Self-insurance on employers’ liability and/or workers compensation based on valuations from external actuaries.
Restructurings when a detailed, formal restructuring plan is announced to the affected parties on or before the reporting date. The
plan must identify the business concerned, the location and number of employees affected, and include a detailed estimate of costs as
well as a timeline.
Onerous contracts, when the unavoidable costs, including directly allocated overhead costs, of meeting the obligations under the
contract exceed the economic benefits expected to be received under it, corresponding to the lower of the costs to fulfil the obligations
under the contract and the costs of exiting.
Customer and contract-related disputes (presented in “Other” provisions) based on an assessment of available facts and circumstances
in respect of the specific risks or disputes, when it is deemed that a contractual, non-contractual or constructive obligation exists, and it
is probable that this will lead to an outflow of economic resources from the Group.
Decommissioning liability (presented in “Other” provisions) if the Group has a legal obligation to dismantle or remove an asset or
restore a site or leased facilities (right-of-use assets) when vacated. The present value of the obligation is included in the cost of the
relevant asset and depreciated accordingly. The estimated future costs and applied discount rate are reviewed annually and an y
changes are included in the cost of the asset.
Contingencies and commitments
Contingent liabilities are possible obligations whose existence will be confirmed by the occurrence or non-occurrence of future events.
An obligation may also be contingent if the amount cannot be estimated reliably or settlement is not probable.
Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future
events that are not wholly within the control of the entity.
Commitments are the Group’s promise resulting from a contractual agreement to assume a future obligation for a future delivery.
Contingent assets, liabilities and commitments do not represent a present legal or constructive obligation. Thus, they are not
recognised, but disclosed in the notes.
FINANCIAL STATEMENTS 119
2.7 Right-of-use assets, property and equipment
2.7.1
Right-of-use assets
At 31 December 2025, ISS was party to around 17,000 (2024: 18,600) lease agreements of which the majority related to vehicles. In
terms of value, the main part related to property leases which, generally fall in two categories:
•
HQ office leases (Group headquarters in Søborg as well as HQ buildings and regional offices in each ISS Country)
•
Customer-specific property leases (offices, storage etc.)
In 2025, additions were DKK 761 million (2024: DKK 1,078 million). The decrease compared to 2024 was mainly the result of the large
number of lease cycle renewals in Germany, the UK, Türkiye and Belgium & Luxembourg last year.
The amount of leases not yet commenced is disclosed in 2.5.4, Commitments.
For lease liabilities and maturity, see 4.2.1, Borrowings and 4.5.1, Financial liabilities, respectively.
Lease-related costs recognised in profit or loss
(DKKm) 2025 2024
Depreciation of right-of-use assets
933
904
Depreciation and amortisation
933
904
Leases of low-value assets
92
120
Short-term leases
110
104
Variable lease payments
9
8
Other operating expenses
211
232
Interest expenses on lease liabilities
153
153
Finance costs
153
153
Total
1,297
1,289
Hereof cash outflow
364
385
In 2025, total cash outflow for leases was DKK 1,245 million (2024: DKK 1,336 million).
2.7.2
Property and equipment
Comprise mainly vehicles, equipment and leasehold improvements.
In 2025, additions of DKK 436 million (2024: DKK 354 million) primarily related to equipment for new and existing customer contracts
and leasehold improvements.
FINANCIAL STATEMENTS 120
2.7 Right-of-use assets, property and equipment (continued)
Right-of-use assets
Property
and
(DKKm)
Properties Vehicles Other
Total
equipment
2025
Carrying amount at 1 January
1,036 938
414
2,388
979
FX
adjustments
(17) (13)
(41)
(71)
(46)
Hyperinflation restatement
1
12
36
49
31
Additions
263
392
106
761
436
Acquisitions/divestments, net
8 -
-
8
62
Disposals
- -
-
-
(15)
Depreciation
(362) (415)
(156)
(933)
(338)
Reclass
(8) 8
-
-
-
Carrying amount at 31 December
921
922
359
2,202
1,109
Cost
2,443 1,736
781
4,960
3,474
Accumulated depreciation and impairment
(1,522) (814)
(422)
(2,758)
(2,365)
Carrying amount at 31 December
921
922
359
2,202
1,109
2024
Carrying amount at 1 January
1,071
688
394
2,153
901
FX
adjustments
4
(3)
(19)
(18)
(7)
Hyperinflation restatement
2
13
54
69
42
Additions
320
611
147
1,078
354
Acquisitions/divestments, net
5
3
2
10
32
Disposals
-
-
-
-
(11)
Depreciation
(366)
(374)
(164)
(904)
(322)
Reclass
-
-
-
-
(10)
Carrying amount at 31 December
1,036
938
414
2,388
979
Cost
2,516
1,610
816
4,942
3,300
Accumulated depreciation and impairment
(1,480)
(672)
(402)
(2,554)
(2,321)
Carrying amount at 31 December
1,036
938
414
2,388
979
FINANCIAL STATEMENTS 121
2.7 Right-of-use assets, property and equipment (continued)
Accounting judgement
Lease term The majority of the Group’s lease contracts for HQ office buildings contain extension options, and few have no contractual
fixed term. This combination of fixed terms and extension options are essential to ensure stability and operational efficiency, while
maintaining flexibility to adapt to future business needs.
Management exercises judgement in determining the lease term, including the assessment of whether extension options are
reasonably certain to be exercised. All relevant facts and circumstances that create an economic incentive for the Group to exercise an
option or not, are considered:
•
Strategic and operational development of the ISS business in the specific country, including management’s expectations for
organic growth, acquisitions, divestments and restructurings
•
Suitableness of the location in the longer term Development in market prices in the specific geographic area
•
The property’s condition, including significant leasehold improvements undertaken or expected to be undertaken
•
Termination-related costs, such as penalties, obligations to restore the facility, relocation costs and potential business disruption
•
Historical length of occupying similar buildings
When the term cannot be reasonably determined, the term for HQ office building contracts with no contractual end date is set at 10
years based on the Group’s past experience.
Management reassesses the lease term based on the above facts and circumstances, when significant changes or events occur, and
revises the lease term if appropriate.
FINANCIAL STATEMENTS 122
2.7 Right-of-use assets, property and equipment (continued)
Accounting policy
Right-of-use assets are recognised at the commencement date of the lease and measured at cost less accumulated depreciation and
impairment losses. The carrying amount is adjusted for any remeasurement of related lease liabilities, including changes arising from
extension options.
Certain leases comprise a liability to dismantle or remove the asset or restore the facility. The estimated costs of such lia bility are
recognised as part of the cost of the asset.
Right-of-use assets are depreciated on a straightline basis over the shorter of the lease term and the estimated useful life of the asset.
Average lease term applied
Properties:
HQ office leases
10-12 years
Customer-specific leases (contract term)
3-5 years
Vehicles
3-5 years
Other equipment
2-5 years
Depreciation methods, lease terms (including extension options) and residual values are reassessed at the reporting date.
The recognition exemption is applied for shortterm leases (term of 12 months or less) and leases of low-value assets (e.g. office
furniture and minor cleaning and IT equipment). Related lease payments are recognised in Other operating expenses on a straight-
line basis over the lease term.
Property and equipment is measured at cost, less accumulated depreciation and impairment losses.
Property and equipment is depreciated on a straightline basis over the estimated useful lives of the assets.
Estimated useful life
Equipment
3-10 years
Leasehold improvements (lease term)
3-12 years
Buildings
20-40 years
Land
Not depreciated
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
Gains and losses arising on the disposal or retirement of property and equipment are recognised in Other operating expenses in the
year of sale, except gains and losses arising on disposal of property, which are recognised in Other income and expenses, net.
FINANCIAL STATEMENTS 123
SECTION
3
Strategic investments and divestments
3.1
Intangible assets
(DKKm)
Goodwill Brands
Customer
contracts Software Total
2025
Carrying amount at 1 January
15,920
-
1,154
558
17,632
FX
adjustments
(715)
-
(153)
(9)
(877)
Hyperinflation restatement
248
-
114
2
364
Additions
-
-
-
132
132
Acquisitions/divestments, net
384
-
147
-
531
Amortisation
-
-
(96)
(142)
(238)
Carrying amount at 31 December
15,837
-
1,166
541
17,544
Cost
17,061
54
4,591
1,597
23,303
Accumulated amortisation and impairment
(1,224)
(54)
(3,425)
(1,056)
(5,759)
Carrying amount at 31 December
15,837
-
1,166
541
17,544
2024
Carrying amount at 1 January
15,121
-
934
514
16,569
FX
adjustments
45
-
(34)
(4)
7
Hyperinflation restatement
339
-
164
3
506
Additions
-
-
-
158
158
Acquisitions/divestments, net
415
-
181
-
596
Amortisation
-
-
(91)
(123)
(214)
Reclass
-
-
-
10
10
Carrying amount at 31 December
15,920
-
1,154
558
17,632
Cost
17,143
61
4,670
1,523
23,397
Accumulated amortisation and impairment
(1,223)
(61)
(3,516)
(965)
(5,765)
Carrying amount at 31 December
15,920
-
1,154
558
17,632
Goodwill and customer contracts
Goodwill relates mainly to assembled workforce, technical expertise and know how, synergies and scale benefits as well as platform
for growth.
In 2025, the Group’s acquisitions added DKK 384 million to goodwill and DKK 147 million to customer contracts, see 3.3, Acquisitions.
Furthermore, hyperinflation in Türkiye added DKK 248 million to goodwill and DKK 114 million to customer contracts.
FINANCIAL STATEMENTS 124
Accounting judgement
Software as a Service (SaaS) Generally, the right to access a cloud provider’s software does not give rise to an intangible asset because
the Group does not obtain control over the software. At the commencement date, management assesses whether the arrangement
gives rise to an intangible asset, a lease or a service over the contract term.
If the Group receives a right to use cloudhosted software managed by a software provider without further rights or control, t he
arrangement is neither a lease nor an intangible asset, and costs are expensed as the Group receives the service. In some instances,
the Group obtains control over the software, which may be the case when:
a)
the Group has the contractual right to take possession of the software during the hosting period without incurring significant costs;
b)
the Group has the ability to use software separately without significant diminution in utility or value; and
c)
it is feasible for the Group to run the software on its own hardware or contract with a party (unrelated to the cloud
provider) to do so.
Configuration and customisation costs In SaaS arrangements, capitalisation of configuration or customisation costs requires
management’s assessment of the nature of the activities performed and the output. Activities that typically result in capitalisation
include development of additional software code that enhances, modifies or creates additional capability. If activities performed result
in the creation of a resource that the Group controls, such configuration and customisation costs are capitalised.
3.1 Intangible assets
(continued)
Software
Technology is a key enabler of the Group’s strategy and an integrated part of our customer and employee value propositions. Overall,
the Group’s software investments relate to:
1)
customer-facing solutions;
2)
employee-facing solutions; and
3)
IT security.
A significant part of our software is mandatory Group-managed solutions as we wish to harvest scalebenefits and ensure consistency
across the Group. Our capitalised software is mainly owned – either “off-the-shelf” or solutions being fully or partially customised to
ISS – whereas the remaining (mainly the most recent software solutions) relates to Software as a Service (SaaS solutions).
In 2025, additions amounted to DKK 132 million (2024: DKK 158 million) and included DKK 67 million related to assets under
development at Group level (2024: DKK 32 million).
FINANCIAL STATEMENTS 125
3.1 Intangible assets
(continued)
Accounting policy
Goodwill are not amortised but recognised at cost less accumulated impairment losses.
Acquisition-related customer contracts are recognised at fair value at the acquisition date and subsequently measured at cost less
accumulated amortisation and impairment losses.
Software is measured at cost less accumulated amortisation and impairment losses. The cost of internally developed software includes
external costs to consultants and software as well as directly attributable internal costs incurred during the development ph ase.
Development costs for which it cannot be demonstrated that future economic benefits will flow to the Group are recognised in profit or
loss.
Amortisation is calculated on a straight-line basis over the estimated useful lives, except for certain customer contracts where the unit-
of-production method better reflects the expected pattern of consumption.
Estimated useful life
Customer contracts 10-24 years
Software 3-10 years
Amortisation methods and useful lives are reassessed at the reporting date.
Software as a Service (SaaS) arrangements are service contracts providing the Group with the right to access cloud-hosted software
managed by the software provider over the contract term.
Costs related to SaaS arrangements are generally expensed as incurred. These costs include cloudhosting fees, software license fees,
internal costs incurred in selecting a cloud provider as well as costs related to data conversion, training and testing.
Costs related to configuration and customisation activities may be capitalised as an intangible asset if they meet the recognition
criteria, see Significant accounting judgements. Capitalised costs are amortised over the useful life of the asset, commencin g when
ready for use.
FINANCIAL STATEMENTS 126
Accounting estimates
In performing impairment tests, management assesses whether the CGU to which the goodwill relates is expected to generate
sufficient net cash flows to support the carrying amount of intangibles and other non-current assets. The assessment is based on
estimates of expected future cash flows (value in use) for the individual CGU, which by nature are uncertain.
Estimates are based on financial forecasts for the following year, as approved by management, estimated discount rates, expected
growth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) as well as
terminal growth rates and margins applied are described in 3.2.4, Determining value in use.
In Türkiye, as a result of the macroeconomic environment, the normal Group methodology of applying a constant WACC rate in both
the forecasting and terminal period, would lead to an understatement of the value in use (especially in the terminal period) due to the
disproportionate negative gap between the risk-free interest rate and the consistently applied terminal growth rate. Instead, the Group
applies a normalised WACC rate in the terminal period, while the WACC applied in the forecasting period is determined based on the
normal Group methodology. Given the circumstances, it is management’s view that this is more appropriate and leads to a more
reasonable estimate of the value in use.
The outcome of the impairment tests may vary significantly should the assumptions and estimates not be realised as expected and
applied as basis for management’s conclusion of whether impairment of a CGU has occurred.
3.2
Impairment tests
3.2.1
Impairment test results
The impairment tests of goodwill and customer contracts performed at 31 December 2025 did not result in recognition of impairment
losses (2024: No impairment losses).
In the majority of the Group’s CGUs, excess values increased in 2025 due to improved financial results leading to higher financial
forecasts, and broad-based decreases in discount rates.
It is management’s view that excess values in the Group’s CGUs, including in Türkiye, are fairly resilient to any likely and reasonable
deteriorations in the key assumptions applied, see sensitivity analyses in 3.2.2, Goodwill and customer contracts.
Türkiye
Despite the persistent macroeconomic challenges, with elevated interest levels and high, albeit decreasing, inflation, ISS Türkiye
continued to demonstrate resilient operational performance in terms of revenue growth, operating margin and free cash flow
generation in 2025. Consequently, the estimated value in use rose more than the increase in carrying amounts of goodwill and
customer contracts resulting from hyperinflation adjustments (IAS 29).
At 31 December 2025, intangibles amounted to DKK 1.5 billion (2024: DKK 1.6 billion) of which DKK 1.4 billion (2024: DKK 1.4
billion) was attributable to hyperinflation. The Group continued to apply a normalised WACC rate in the terminal period, as it is
management’s view that it is most appropriate given the circumstances.
FINANCIAL STATEMENTS 127
Accounting policy
The Group performs impairment tests of goodwill and the ISS brand at the reporting date or when indications of impairment exi st.
Other non-current assets are tested annually, or more frequently if events or changes indicate that the carrying amount may not be
recoverable.
When performing the impairment test, the recoverable amount of the asset is determined as the higher of the fair value of the asset
less anticipated costs of disposal and its value in use. Value in use is calculated as the present value of expected future cash flows from
the asset or the CGU to which the asset belongs. Corporate costs for services performed by the Group’s head office functions to the
CGUs are allocated to the individual CGUs and taken into account in the calculation.
Goodwill is tested for impairment together with other non-current assets in the CGU to which goodwill is allocated.
Impairment of goodwill is recognised in profit or loss in a separate line if the carrying amount of the CGU exceeds its estim ated
recoverable amount.
Impairment of goodwill is not reversed. Impairment of other assets is reversed if estimates used to calculate the recoverable amount
change. An impairment loss is reversed to the extent that the carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation and amortisation, had no impairment loss been recognised.
3.2
Impairment tests (continued)
3.2.2
Goodwill and customer contracts
The carrying amounts of intangibles for CGUs representing more than 5% of intangibles are disclosed in the table below. A sensitivity
analysis on the key assumptions in the impairment testing are disclosed on p. 129.
2025
2024
(DKKm)
Goodwill
Customer
contracts Total Goodwill
Customer
contracts Total
US & Canada
2,003
96
2,099
2,262
125
2,387
Switzerland
1,731
235
1,966
1,710
252
1,962
Spain
1,615
269
1,884
1,346
161
1,507
UK & Ireland
1,715
61
1,776
1,800
79
1,879
Finland
1,660
-
1,660
1,658
-
1,658
Türkiye
1,051
459
1,510
1,101
509
1,610
Australia & NZ
1,176
-
1,176
1,233
-
1,233
Belgium & Lux.
864
20
884
853
22
875
Other
4,022
26
4,048
3,957
6
3,963
Total
15,837
1,166
17,003
15,920
1,154
17,074
FINANCIAL STATEMENTS 128
3.2
Impairment tests (continued)
3.2.3
Cash-generating units (CGUs)
Consistent with the Group’s management and reporting structure, the lowest level of CGUs is individual countries, as cash inflows are
generated largely independent of cash inflows in other ISS countries (the majority of our contract portfolio is locally based with no
cross-border activities). Accordingly, impairment tests are carried out per country, and intangibles (goodwill and customer contracts)
are allocated to these.
For a few countries, management has been combined to take advantage of similarities in terms of markets, shared customers and cost
synergies. In these exceptional cases, the countries are regarded as one CGU when performing the impairment test.
3.2.4
Determining value in use
The recoverable amount of each CGU is calculated on the basis of its value in use using certain key assumptions per CGU, i.e. revenue
growth, operating margin and discount rate.
Forecasting period
Cash flow projections for the individual CGUs are based on financial forecasts for the following year as approved by management.
Generally, assumptions applied in the short to medium term (forecasting period of five years) reflect management’s expectations
considering all relevant factors, including the Group’s strategic initiatives, local initiatives, past experience and external sources of
information, where possible and relevant. This also includes expected development in local markets in terms of competition, inflation
and growth.
Specifically, management has considered the expected impacts from the Group’s updated strategic priorities from 2025 and onwards,
especially increased investments in our commercial agenda, our people processes and in driving efficiencies in our overhead a nd
service costs. Where relevant, initiated restructurings and other improvement initiatives, have also been taken into consideration when
estimating the expected future performance and cash flows.
Management also assessed the impact from macroeconomic developments, including inflation rates. In the year, the Group
demonstrated its continued ability to manage and mitigate wage increases and price increases in the supply chain, including activating
indexation mechanisms in the customer contracts to increase prices.
Terminal period
Assumptions applied in the terminal period generally reflect management’s long-term expectations for the individual country. Revenue
growth reflects inflation and GDP growth and is determined based on input from external sources like IMF’s “World Economic Outlook”.
Operating margin reflects the expected normalised earnings level in the long term.
FINANCIAL STATEMENTS 129
3.2
Impairment tests (continued)
Key assumptions
1)
Revenue
growth
Operating
margin
Discount rates
(net of tax)
Year
1
•
Financial forecasts as approved by management
Forecasting period (year 2-5)
•
Based on expected market development, including maturity and inflation
•
Impact from local and Group initiatives are considered, including focus on strategic customer segments
Terminal period
•
Long-term expectations based on external sources such as IMF “World Economic Outlook”, OECD, etc.
•
Not exceeding expected long-term average for the country, including inflation
Year
1
•
Financial forecasts as approved by management
Forecasting period (year 2-5)
•
Impact from Group initiatives are considered, including focus on strategic customer segments and investments in
our commercial agenda, our people processes and driving efficiencies in our overhead and service costs
•
Restructurings and local improvement initiatives are considered
Terminal period
•
Reflects the expected normalised earnings level in the long term
•
Risk-free interest rate based on 30-year government bonds (country-specific) where available, except that
for Türkiye a normalised interest rate is applied in the terminal period (see Accounting estimates).
If 30-year bonds are not available for the given CGU, the rate is based on a 20-year or 10-year government bond
•
Country specific estimation risk premium added (to reflect possible variations in amounts/timing of the
projected cash flows)
•
Equity risk premium: 5.5% (2024: 5.5%)
2)
•
Unlevered beta: 0.6 (2024: 0.8)
•
Debt/equity target ratio (market values): 25/75 (2024: 25/75)
1)
The key assumptions applied are used for accounting purposes and should not be considered a forward-looking statement within the
meaning of the US Private Securities Litigation Act of 1995 and similar laws in other countries regarding expectations to the future development.
2)
For Türkiye a country specific equity risk premium of 5.0% is added (2024: 5.0%).
FINANCIAL STATEMENTS 130
3.2
Impairment tests (continued)
Sensitivity analysis
The allowed change represents the percentage points by which the specific key assumption can change, all other things being equal,
before the CGU’s recoverable amount equals its carrying amount.
Forecasting period
Terminal period
Growth
Margin
1)
Growth
Margin
1)
Discount
rate
2025
US & Canada
2,099
5.9 %
>5.9 %
5.4 %
>5.4 %
3.0 %
>3.0 %
6.0 %
2.9 %
10.5 %
5.4 %
13.5 %
Switzerland
1,966
1.7 %
>1.7 %
8.3 %
>8.3 %
1.5 %
>1.5 %
8.3 %
8.2 %
5.5 %
>5.5 %
6.5 %
Spain
1,884
2.8 %
>2.8 %
7.4 %
>7.4 %
2.5 %
>2.5 %
7.4 %
5.5 %
8.9 %
>8.9 %
11.4 %
UK & Ireland
1,776
5.2 %
>5.2 %
5.3 %
>5.3 %
2.5 %
>2.5 %
5.5 %
4.8 %
10.9 %
>10.9 %
14.2 %
Finland
1,660
3.0 %
>3.0 %
7.0 %
>7.0 %
2.5 %
>2.5 %
7.0 %
(4.8)%
8.7 %
7.7 %
10.5 %
Türkiye
2)
1,510
24.4 %
18.6 %
7.9 %
>7.9 %
10.0 %
>10.0 %
8.0 %
5.7 %
35.2 %
11.0 %
41.1 %
Australia & NZ
1,176
4.1 %
>4.1 %
7.6 %
>7.6 %
3.0 %
>3.0 %
7.6 %
>7.6 %
9.6 %
>9.6 %
13.0 %
Belgium & Lux.
884
2.9 %
>2.9 %
7.0 %
>7.0 %
2.5 %
>2.5 %
7.0 %
5.9 %
9.6 %
>9.6 %
12.3 %
2024
US & Canada
2,387
4.5 %
>4.5 %
5.4 %
>5.4 %
3.0 %
>3.0 %
6.0 %
3.7 %
11.3 %
8.8 %
14.5 %
Switzerland
1,962
1.2 %
>1.2 %
8.0 %
>8.0 %
1.5 %
>1.5 %
8.0 %
7.8 %
6.2 %
>6.2 %
7.4 %
Spain
1,507
3.9 %
>3.9 %
6.5 %
>6.5 %
2.5 %
>2.5 %
6.5 %
4.3 %
9.3 %
7.3 %
11.9 %
UK & Ireland
1,879
5.1 %
>5.1 %
5.2 %
>5.2 %
2.5 %
>2.5 %
5.5 %
4.2 %
11.7 %
>11.7 %
15.2 %
Finland
1,658
2.9 %
>2.9 %
6.4 %
>6.4 %
2.5 %
> 2.5 %
6.4 %
3.9 %
8.6 %
5.9 %
10.4 %
Türkiye
2)
1,610
25.3 %
17.9 %
7.9 %
>7.9 %
10.0 %
>10.0 %
8.0 %
5.4 %
36.3 %
10.2 %
42.5 %
Australia & NZ
1,233
3.0 %
>3.0 %
7.0 %
>7.0 %
3.0 %
>3.0 %
7.0 %
>7.0 %
10.4 %
>10.4 %
14.2 %
Belgium & Lux.
875
3.0 %
>3.0 %
6.6 %
>6.6 %
2.5 %
>2.5 %
6.6 %
5.4 %
9.1 %
>9.1 %
11.7 %
1)
Excluding allocated corporate costs.
2)
Discount rate applied in the terminal period was 20.5%.
Carrying
Allowed
Allowed
Allowed
Allowed
Net of
Allowed
Pre-
(DKKm)
amount
Avg. decrease
Avg. decrease
Rate decrease
Rate decrease
tax
increase
tax
FINANCIAL STATEMENTS 131
3.3 Acquisitions
3.3.1
Acquisition impact
Consistent with the Group’s normal procedures, and given the short interval between the completion of the acquisitions and the
reporting date, the acquisition accounting has not yet been completed. As a result, the fair values of certain assets and liabilities, such
as customer contracts and trade receivables, are based on management’s best estimates, as the necessary analyses and calculations
are currently ongoing.
Franye Group
On 1 December 2025, ISS acquired 100% of the shares in Franye Group, a provider of technical services in Austria. The acquisition has
strong strategic fit and strengthens our market position mainly in the eastern and southern parts of Austria, while enhancing our
technical services capabilities. In addition, the acquisition offers robust cross-selling opportunities to existing ISS customers.
The acquisition added an estimated DKK 0.2 billion to Group annual revenue and 150 employees. Since completion, Franye
contributed revenue of DKK 21 million to the Group.
Goodwill is attributable mainly to: 1) expertise and know-how in technical services; 2) platform for growth; 3) cross-selling synergies;
and 4) assembled workforce.
Garbialdi
On 21 October 2025, ISS acquired 100% of the shares in Garbialdi in Spain. The acquisition strengthens our market position in the
healthcare segment and cleaning service offerings to public sector customers. The acquisition has a strong strategic fit and creates a
platform for further growth, predominantly in the Basque Country where ISS Spain’s presence is limited. The integration process has
been initiated with identified synergies expected to be realised before mid-year 2026.
The acquisition added an estimated DKK 0.6 billion to Group annual revenue and approximately 3,000 employees. Since completion,
Garbialdi contributed revenue of DKK 110 million to the Group.
A portion of the total consideration is contingent upon certain future conditions. Accordingly, contingent consideration of D KK 120
million has been recognised, reflecting expected earn-out payments under the share purchase agreement. The maximum potential
payout is DKK 146 million, primarily payable in 2026.
Goodwill is attributable mainly to: 1) platform for growth primarily in Northern Spain; 2) expertise and know-how in the healthcare
segment and public administration; 3) synergies and scale benefits; and 4) assembled workforce.
FINANCIAL STATEMENTS 132
3.3 Acquisitions (continued)
Net assets and cash flow
(DKKm)
Franye
Group
Garbialdi
Other/Prior
year adj.
2025 2024
Customer contracts
21
126
-
147
181
Other non-current assets
9
127
29
165
67
Trade receivables
20
139
2
161
222
Other current assets
17
103
9
129
113
Non-current liabilities
(34)
(226)
(13)
(273)
(180)
Current liabilities
(22)
(178)
(46)
(246)
(261)
Fair value of net assets
11
91
(19)
83
142
Goodwill
109
259
16
384
417
Consideration transferred
120
350
(3)
467
559
Cash in acquired business
(1)
(23)
(9)
(33)
(70)
Consideration transferred, net
119
327
(12)
434
489
Contingent and deferred consideration
(1)
(120)
28
(93)
21
Acquisitions (cash flow)
118
207
16
341
510
3.3.2
Pro forma revenue/operating profit
Pro forma revenue was DKK 85,301 million and operating profit before other items was DKK 4,846 million, corresponding to
adjustments of the reported amounts of DKK 593 million and DKK 41 million, respectively.
3.3.3
Subsequent acquisitions
On 2 February 2026, ISS acquired 100% of the shares in Cater Plus Services in New Zealand. The acquisition will strengthen our market
position and enable ISS to expand and develop its cleaning and food services offering to primarily public sector customers across the
Pacific region.
The acquisition will add an estimated annual revenue of around DKK 0.2 billion and more than 750 employees.
Other than that, the Group did not complete any acquisitions from 1 January to 27 February 2026.
FINANCIAL STATEMENTS 133
3.3 Acquisitions (continued)
Accounting policy
Business combinations (acquisitions) are accounted for using the acquisition method. The consideration transferred is measured at
acquisition date fair value of net assets and any contingent consideration as well as the amount of any noncontrolling interests in the
acquiree. For each acquisition, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the
proportionate share of the acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred and presented in Other income and expenses, net.
Contingent consideration is classified as financial liabilities and presented in Other liabilities with changes in fair value recognised in
Other income and expenses, net.
Depending on the size, complexity, and timing of the acquisition, uncertainties regarding identification or measurement of as sets,
liabilities and contingent liabilities may arise, and the initial recognition is based on provisionally determined fair values. Changes to fair
values are adjusted against goodwill up until 12 months after the acquisition date. Comparatives are restated, accordingly. Changes in
fair values after 12 months are recognised in Other income and expenses, net
Goodwill is initially measured at cost being the excess of the consideration transferred, over the fair value of the net identifiable assets
acquired. Subsequently, goodwill is measured at cost less accumulated impairment losses. For the purpose of impairment testin g,
goodwill acquired in a business combination is allocated to each of the Group’s cash-generating units (CGUs) that are expected to
benefit from the combination. Goodwill is not deductible for tax purposes.
Pro forma revenue and operating profit before other items include adjustments assuming that acquisitions/divestments were in-
/excluded in/from profit or loss from 1 January. Estimates are made by local ISS management at the time of acquisition/divestment or
actual results where available, and are based on unaudited financial information.
FINANCIAL STATEMENTS 134
Accounting policy
Divestments Gain or loss on disposal of an operation that is part of a CGU includes a portion of the related goodwill allocated to that
CGU. Goodwill related to the disposed operation is measured based on the fair value of the disposed operation relative to the fair value
of the entire CGU.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interests
and other components of equity, and recognises any resultant gain or loss in Other income and expenses, net.
3.4 Divestments
3.4.1
Divestment impact
Net assets and cash flow
(DKKm) 2025 2024
Goodwill
-
2
Other non-current assets
-
35
Current assets
-
883
Non-current liabilities
-
(111)
Borrowings
-
(260)
Current liabilities
-
(866)
Net assets disposed
-
(317)
Gain/(loss) on divestment, net
(10)
(61)
Divestment costs
14
174
Consideration received
4
(204)
Cash in divested businesses
-
(263)
Consideration received, net
4
(467)
Contingent and deferred consideration
(46)
233
Divestment costs paid
(48)
(116)
Divestments (cash flow)
(90)
(350)
No divestments were completed in 2025. Thus, cash outflow related to prior year divestments.
Contingent and deferred consideration related to the divestment of ISS France, where part of the consideration is deferred up to three
years from the date of divestment.
3.4.3 Subsequent divestments
Two minor divestments were completed in the period from 1 January to 27 February 2026.
FINANCIAL STATEMENTS 135
SECTION
4
Capital structure
4.1 Equity
4.1.1
Capital management
The ISS Global Group is indirectly wholly owned by ISS A/S and is therefore part of the ISS A/S Group. Group Treasury manages
financing activities and capital structure centrally for the ISS A/S Group as a whole. The ISS Global Group's financing activities and
capital structure are not assessed independently of the ISS A/S Group.
The Group monitors the capital structure and evaluates the need for adjustments on an ongoing basis. The Group's objectives for
managing capital and what is managed as capital are described in 4.5, Liquidity risk. The dividend policy and payment of dividend is
made subject to the necessary consolidation of equity and the Group's continuing expansion and profitability.
ISS Global A/S (the Group's parent) is a holding company, and its primary assets are shares in subsidiaries, receivables from companies
within the ISS Group and cash in its bank accounts. ISS Global A/S has no revenue generating operations of its own, and therefore ISS
Global A/S’s cash flow and ability to service its indebtedness and other obligations will depend primarily on the operating performance
and financial condition of its operating subsidiaries, and the receipt by ISS Global A/S of funds from its subsidiaries in the form of
dividends or otherwise.
4.1.2
Share capital and share premium
At 31 December 2025, ISS Global A/S’s share capital comprised a total of DKK 180,200 shares (2024: 180,200) with a nominal value of
DKK 1 thousand each. All shares were fully paid and freely transferable.
ISS Global A/S has one class of shares, and no shares carry special rights. Each share gives the holder the right to one vote at our
general meetings.
Share premium included in retained earnings at 31 December 2025 amounted to DKK 6,373 million (2024: DKK 6,373 million).
4.1.3 Translation reserve
Subsidi-
(DKKm)
Note
Hedging
aries
Total
2025
At 1 January
FX
adjustments
(269)
-
(87)
(637)
(356)
(637)
At 31 December
(269)
(724)
(993)
2024
At 1 January
(269)
(399)
(668)
Hedging and FX adjustments
-
312
312
At 31 December
(269)
(87)
(356)
A specification of hedging and FX adjustments in the year is provided in 4.1.6, Other comprehensive income.
FINANCIAL STATEMENTS 136
Accounting policy
Retained earnings is the Group’s free reserves, which includes proposed dividends and share premium. Proposed dividends are
recognised as a liability at the date when they are adopted at the annual general meeting. Share premium comprises amounts above
the nominal share capital paid by shareholders when shares are issued by ISS Global A/S.
Translation reserve comprises foreign exchange differences arising from the translation of financial statements of foreign entities with
a functional currency other than DKK and from the translation of non-current balances which are considered part of the investment in
foreign entities. Furthermore, fair value adjustments of net investment hedges and hyperinflation restatement are included. On full
realisation of a foreign entity the accumulated foreign exchange adjustments are transferred to profit or loss in the same line item as
the gain or loss.
4.1 Equity (continued)
Hedging reserve
The hedging reserve comprises accumulated fair value adjustments arising from net investment hedges recognised in previous years.
At 31 December 2025, the accumulated fair value adjustments, net of tax, amounted to DKK (269) million of which DKK (140) million
related to GBP, DKK (75) million related to CHF and DKK (54) million related to USD. The associated tax effect was DKK 12 million. These
amounts will remain in the translation reserve until full realisation of the foreign entity.
4.1.4
Dividends
At the annual general meeting to be held on 16 April 2026, the Board of Directors will propose a dividend to ISS World Services A/S for
2025 of DKK 2,800 million (2024: DKK 5,600 million). There are no tax consequences of proposed dividends for the Group.
4.1.5
Non-controlling interests
The Group’s non-controlling interests predominantly relates to ISS Türkiye, where Actera, a leading Türkiyish private equity company,
owns 39.9%. Actera became minority shareholder of ISS Türkiye as part of the acquisition of Rönesans Facility Management Company
in September 2021. Further, certain members of management of ISS Türkiye together hold a minority shareholding of 10% in ISS
Türkiye.
The shareholders’ agreement between ISS, Actera and management establishes the rights and obligations of the parties, including
rights and restrictions on transferring shares, such as right of first refusal, drag along rights from Q4 2024 and right to explore a
potential Initial Public Offering (IPO). As previously mentioned, and in line with the terms of the shareholders’ agreement, Actera has
initiated a dialogue to explore their potential exit options, and that dialogue remains ongoing.
FINANCIAL STATEMENTS 137
4.1 Equity (continued)
4.1.6
Other comprehensive income
(DKKm)
Note
Retained
earnings
Global A/S
Translation
reserve Total
Non-
controlling
interest
Total
equity
2025
Defined benefit plans
Remeasurement (gain)/loss
7.1
439
-
439
23
462
Reimbursement rights related to remeasurement gain/(loss)
(88)
-
(88)
-
(88)
Asset ceiling
7.1
(341)
-
(341)
-
(341)
FX
adjustments
Subsidiaries
-
(795)
(795)
(208)
(1,003)
Hyperinflation, Türkiye
-
158
158
174
332
Tax
Tax related to the items above
(5)
-
(5)
(5)
(10)
Total
5
(637)
(632)
(16)
(648)
2024
Defined benefit plans
Remeasurement (gain)/loss
7.1
(85)
-
(85)
(55)
(140)
Asset ceiling
7.1
(28)
-
(28)
-
(28)
FX adjustments
Subsidiaries
-
83
83
(71)
12
Hyperinflation, Türkiye
-
229
229
248
477
Tax
Tax related to the items above
25
-
25
11
36
Total
(88)
312
224
133
357
Development in 2025
In 2025, other comprehensive income was DKK (648) million, a decrease of DKK 1,005 million compared to 2024. The decrease mainly
related to a negative impact from FX adjustments of subsidiaries in Türkiye, the US, the UK and Hong Kong.
FINANCIAL STATEMENTS 138
4.2 Financing
4.2.1
Borrowings
(DKKm)
Note 2025 2024
Issued bonds
11,960
15,635
Euro-Commercial Paper (ECP) programme
408
-
Lease liabilities
2,277
2,422
Bank loans
401
242
Debt to companies within the ISS Group
974
205
Borrowings
16,020
18,504
Non-current liabilities
9,743
13,553
Current liabilities
6,277
4,951
Borrowings
16,020
18,504
Cash and cash equivalents
(1,729)
(6,829)
Receivables from companies within the ISS Group
(3,610)
(5,673)
Derivatives, net
2.2, 2.3
27
(36)
Securities
2.2
(135)
(140)
Net debt
10,573
5,826
Non-current vs. current borrowings
At 31 December 2025, non-current borrowings amounted to DKK 9.7 billion, a decrease of DKK 3.8 billion compared to 2024. The
decrease was mainly related to the reclassification of EUR 500 million of the Group’s EMTNs, maturing in June 2026, to current
borrowings. The Group is currently evaluation different financing options to be determined during H1 2026.
Euro-Commercial Paper (ECP) programme
On 27 May 2025, ISS established a Euro-Commercial Paper (ECP) programme to enhance financial flexibility and diversify the Group’s
funding structure, enabling more efficient and timely access to short-term financing.
The programme allows for the issuance of unsecured notes up to a maximum principal amount of EUR 900 million. Notes under the
programme have maturities of up to 364 days, typically shorter than six months. Each note carries a fixed interest rate for its duration
and may be issued either at a discount or on an interest bearing basis, depending on market conditions.
S&P Global has assigned an A-2 short-term credit rating to the ECP programme.
EMTN repayment on 7 July 2025
On 7 July, EUR 500 million of the Group’s EMTNs reached maturity and were repaid in full through a combination of cash and funding
obtained through the ECP programme.
FINANCIAL STATEMENTS 139
4.2 Financing (continued)
Financing fees
At 31 December 2025, accumulated financing fees recognised in borrowings amounted to DKK 61 million (2024: DKK 80 million). The
decrease compared to last year was due to ordinary amortisation of DKK 27 million (2024: DKK 23 million) recognised in finance costs,
partly offset by financing fees of DKK 8 million (2024: DKK 49 million) being capitalised.
Fair value
At 31 December 2025, the fair value of bonds was DKK 11,939 million (2024: DKK 15,477 million). The fair value of bonds was based on
the quoted market price on the Luxembourg Stock Exchange and measurement is categorised as Level 1 in the fair value hierarchy
due to the use of quoted market inputs.
For the remaining borrowings, the fair values are not materially different from their carrying amounts due to their short-term nature.
4.2.2
Finance income and costs
(DKKm) 2025 2024
Interest income from companies within the ISS Group
1)
149
302
Interest income on cash and cash equivalents
181
216
Hedge ineffectiveness of interest rate swaps
-
12
Monetary gain on hyperinflation restatement, Türkiye
77
86
Finance income
407
616
Interest expenses on borrowings
1)
(494)
(506)
Interest expenses on lease liabilities
1)
(153)
(153)
Interest expenses to companies within the ISS Group
1)
(75)
(94)
Net interest on defined benefit obligations
(79)
(33)
Bank fees and commitment fees
(67)
(67)
Interest expenses on factoring
1)
(52)
(71)
Amortisation of financing fees (non-cash)
1)
(27)
(23)
Hedge ineffectiveness of interest rate swaps
(16)
-
Foreign exchange losses
(25)
(28)
Finance costs
(988)
(975)
1)
The total interest expensed determined on an amortised cost basis was DKK 652 million (2024: DKK 545 million).
Interest income from companies within the ISS Group decreased mainly due to lower intragroup receivables following the dividend
distribution in April 2025.
Interest income on cash and cash equivalents The decrease compared to 2024 was mainly driven by lower cash balances following the
EMTN redemption in July 2025 and lower interest rates.
Net interest on defined benefit obligation increased mainly due to higher interest rates in Türkiye and Switzerland compared to 2024.
Interest expenses on factoring decreased compared to 2024 due to lower interest rates and a slight decrease in average factoring
utilisation.
FINANCIAL STATEMENTS 140
Accounting policy
Issued bonds, ECP and bank loans are recognised initially at fair value net of transaction costs (financing fees) and subsequently at
amortised cost. Any difference between the proceeds and the nominal value is recognised in Finance costs over the term of the loan
using the effective interest method.
Lease liabilities are recognised initially at the present value of the payments to be made over the lease term. The present value is
calculated using the Group’s incremental borrowing rate if the interest rate implicit in the lease is not readily determinabl e.
Subsequently, the liability is measured at amortised cost and remeasured due to modifications such as changes in: 1) lease term; 2) the
assessment to purchase the underlying asset; 3) future lease payments (e.g. a change in an index or rate); or 4) the Group’s estimate of
the amount expected to be payable under a residual guarantee.
4.2 Financing (continued)
4.2.3
Cash flow impact from changes in borrowings
(DKKm)
Note
Issued
bonds
European
Commercial
Papers
(ECP)
Lease
liabilities
Bank
loans
Debt to
companies
within the
ISS
Group Total
2025
At 1 January
15,635
-
2,422
242
205
18,504
FX
adjustments
20
5
(39)
(40)
(2)
(56)
Cash flows
(3,732)
403
(881)
(72)
755
(3,527)
Acquisitions/divestments, net
-
-
14
195
-
209
Lease additions
2.7
-
-
761
-
-
761
Fair value adjustments
4.4
17
-
-
-
-
17
Other
20
-
-
76
16
112
At 31 December
11,960
408
2,277
401
974
16,020
2024
At 1 January
14,073
- 2,282
311
19
16,685
FX
adjustments
9
- (15)
(8)
1
(13)
Cash flows
1,459
- (951)
(259)
179
428
Acquisitions/divestments, net
-
- 11
89
-
100
Lease additions
2.7
-
- 1,078
-
-
1,078
Fair value adjustments
4.4
88
- -
-
-
88
Other
6
- 17
109
6
138
At 31 December
15,635
- 2,422
242
205
18,504
FINANCIAL STATEMENTS 141
4.3 Financial risk management
The Group is exposed to a number of financial risks arising from its operating and financing activities, mainly interest rate risk, liquidity
risk, currency risk and credit risk. It is management’s assessment that the Group’s exposure to these risks is low. The Group has not
identified additional financial risk exposures in 2025 compared to 2024.
Financial risks are managed centrally by Group Treasury based on the Financial Policy, which is reviewed and approved annually by the
Board of Directors of ISS A/S. Due to our decentralised business model, exposure to credit risk on trade receivables and expected
credit losses is however managed locally in the operating entities, see 2.1, Trade receivables and credit risk. Through our risk
management procedures, financial risks are monitored and reduced to an acceptable level.
It is the Group’s policy to mitigate risk exposure derived from its business activities. Group policy does not allow taking speculative
positions in the financial markets.
On an ongoing basis the Group considers whether the financial risk management approach appropriately addresses the risk
exposures.
Risk
assessment
The Group’s objectives and policies for measuring and managing risk exposure are explained in the respective notes. An overview of
financial risks and impact assessment at 31 December 2025 is provided in the table below.
Risk assessment at 31 December 2025
Credit risk
-
Low
•
Not past due on trade receivables is around 90% (aging analysis)
•
Expected credit losses on trade receivables are less than 2% of gross receivables (credit ratings)
•
The Group transacts only with financial institutions with a credit rating of at
least A- (cash and cash equivalents)
Note 2.1
Interest rate risk
-
Low
•
60% of the Group’s gross debt carried fixed rates (2024: 58%). This includes the effect
of swapping part of the EMTNs from fixed to floating rates, see 4.4.2.
Note 4.4
Liquidity risk
-
Low
•
Diversified funding portfolio of debt (bonds, ECP programme and bank loans)
•
No financial covenants in our main Group facilities (certain covenants apply to
the local loan facility in Türkiye)
•
Revolving credit facility of EUR 900 million (established in 2023) maturing in 2030
•
Uncommitted facilities in place to ensure flexible and efficient liquidity management
•
Duration of gross debt is 1.5 years (2024: 2.1) (target above 2.0 years), expected to increase
as we refinance the EUR 500 million EMTN bonds maturing in June 2026
Note 4.5
Currency risk
-
Low
•
The Group benefits from a natural hedge in having income, costs and investments
in the same functional currency, country-by-country
•
96.7% of the Group’s bonds and bank loans denominated in EUR (2024: 98.3%)
Note 4.6
FINANCIAL STATEMENTS 142
Interest rate risk
– low exposure
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial
instruments. Exposure relates to bank loans, bonds or interest rate swaps with floating interest rates.
Risk management policy
•
At least 50% of the Group’s gross debt must carry fixed interest rates directly or through derivatives
Mitigation
•
The fixed/floating ratio is measured on a monthly basis
•
Interest rate swaps (fair value hedge) are used to manage the fixed/floating ratio on gross debt
4.4
Interest rate risk
4.4.1 Interest-bearing borrowings
2025
2024
(DKKm)
Maturity
Fixed/
Floating
Nominal
interest rate
Nominal
value
Carrying
amount
Carrying
amount
1)
The carrying amount included the accumulated fair value adjustments at 31 December 2025
of the hedged items, see 4.4.2 below.
2)
Weighted average.
Interest rate sensitivity
An increase in relevant interest rates of 1%-point, with all other variables held constant, would have increased net profit and equity by
DKK 3 million (2024: decrease of DKK 11 million).
The estimate was based on the Group’s floating rate borrowings, i.e. disregarding cash and cash equivalents, as the level at 31
December is typically the highest in the year and thus not representative for the purpose of this analysis.
Issued bonds
EMTNs (EUR 500 million)
1)
2025 Fixed
1.25%
-
-
3,711
EMTNs
(EUR
500
million)
2026 Fixed
0.88%
3,735
3,732
3,721
EMTNs
(EUR
600
million)
2027 Fixed
1.50%
4,481
4,477
4,468
EMTNs (EUR 500 million)
1)
2029 Fixed
3.88%
3,734
3,751
3,735
11,950
11,960
15,635
Euro-commercial paper (EPC)
2)
34 days Fixed
2.2%
408
408
-
408
408
-
Bank loans
Loan facility Türkiye (TRY)
2026 Floating
TLFREF
19
19
51
Bank loans and overdrafts (Multi)
- Floating
-
405
382
191
424
401
242
Intra-Group
Debt to companies within the ISS Group
- Floating
-
974
974
205
974
974
205
FINANCIAL STATEMENTS 143
Accounting policy
The Group’s interest rate swaps qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a
recognised liability. Hedge accounting is applied.
The change in the fair value of the interest rate swap (the hedging instrument) is recognised in profit or loss under Finance income or
Finance costs. The change in the fair value of the hedged item (the bond) attributable to the risk being hedged is recognised as part
of the carrying amount of the hedged item and is also recognised in profit or loss under Finance income or Finance costs. The gain or
loss relating to the ineffective portion is recognised in profit or loss under Finance income or Finance costs
The unamortised fair value is recognised in profit or loss if the hedged item is derecognised.
Fair value measurement takes current market data into account. The Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value. Measurement is categorised as Level 2 in the fair value
hierarchy as it is based on directly observable market data.
4.4
Interest rate risk (continued)
4.4.2 Fair value hedge
(DKKm)
Nominal
amount
Carrying
amount
Accumulated
fair value adj.
Change
in FV
Interest rate swap
EUR 300 million
-
-
15
EMTN
2025
EUR 500 million
-
-
(15)
Interest rate swaps
EUR 250 million
(22)
(44)
(14)
EMTN
2029
EUR 500 million
3,751
(48)
(2)
At 31 December 2025, the Group had interest rate swap agreements with a total nominal amount of EUR 250 million whereby the
Group receives a fixed rate interest and pays a variable interest rate on the nominal amount. The swaps hedge the exposure to fair
value changes of the Group’s fixed rate bond and mature in 2029 in line with the maturity of the bonds.
In 2025, a cost of DKK 16 million was recognised in profit or loss related to the ineffective part of the interest rate swaps (2024: an
income of DKK 12 million).
FINANCIAL STATEMENTS 144
Liquidity risk
– low exposure
Liquidity risk results from the Group’s potential inability or difficulty in meeting the contractual obligations associated with its financial
liabilities due to insufficient liquidity.
Risk management policy
•
Maintain an appropriate level of short- and long-term liquidity reserves (liquid funds and committed credit facilities)
•
Maintain a smooth maturity profile in terms of different maturities
•
Maintain access to diversified funding sources
•
Maintain a duration of gross debt above two years
Mitigation
•
Raising capital is managed centrally by Group Treasury to ensure efficient liquidity management
•
Group Treasury monitors the risk of insufficient liquidity on a daily basis
•
Liquidity is transferred to/from ISS Global A/S, which operates as the Group’s internal bank
•
For day-to-day liquidity management cash pools have been established in the majority of the local entities
•
No financial covenants in our main Group facilities (certain covenants apply to the local loan facility in Türkiye)
4.5
Liquidity risk
4.5.1
Financial liabilities
Contractual maturities
(DKKm)
Carrying
amount
Contractual
cash flows
< 1
year
1-2
years
2-3
years
3-4
years
4-5
years
> 5
years
2025
Bonds, ECP and bank loans
12,769
13,450
4,791
4,711
149
3,799
-
-
Lease liabilities
2,277
2,579
967
613
421
274
97
207
Debt to companies within the ISS Group
974
1,002
1,002
-
-
-
-
-
Trade payables and other
5,851
5,851
5,851
-
-
-
-
-
Derivatives
52
52
52
-
-
-
-
-
Total financial liabilities
21,923
22,934
12,663
5,324
570
4,073
97
207
2024
Bonds and bank loans
15,877
16,859
4,256
3,984
4,683
145
3,791
-
Lease liabilities
2,422
2,748
926
663
449
285
166
259
Debt to companies within the ISS Group
205
211
211
-
-
-
-
-
Trade payables and other
6,087
6,087
6,087
-
-
-
-
-
Derivatives
30
30
30
-
-
-
-
-
Total financial liabilities
24,621
25,935
11,510
4,647
5,132
430
3,957
259
The contractual maturities of financial liabilities above are based on the undiscounted contractual cash flows, i.e. including interest
payments estimated based on market expectations at 31 December.
The risk implied from the values reflects the one-sided scenario of cash outflows only. Trade payables and other financial liabilities are
mainly used to finance operating assets such as trade receivables and property and equipment.
FINANCIAL STATEMENTS 145
4.5
Liquidity risk (continued)
4.5.2
Liquidity reserves
(DKKm) 2025 2024
Cash and cash equivalents
Hereof restricted cash
Unused revolving credit facilities
1,729
(16)
6,718
6,829
(35)
6,712
Liquidity reserves
8,431
13,506
Not readily available
(745)
(751)
Readily available liquidity
7,686
12,755
Cash and cash equivalent comprise only cash and reflects the strong liquidity position of the Group. The level is typically highest at 31
December and not a representative level for the rest of the year.
Restricted cash DKK 16 million of the total cash and cash equivalents at 31 December 2025 was placed on blocked or restricted bank
accounts due to legal cases or tax-related circumstances.
Unused revolving credit facilities The Group has a EUR 900 million committed revolving credit facility maturing in June 2030. In addition,
uncommitted credit facilities are available in countries and at Group level, which are not considered part of the readily ava ilable
liquidity. At 31 December 2025, these amounted to DKK 5.1 billion of which DKK 0.0 billion was drawn (2024: DKK 4.2 billion of which
DKK 0.0 billion was drawn).
Not readily available Cash is considered readily available when upstreaming to the parent company (ISS A/S) is possible within five days.
In a number of countries, transfer to ISS Global A/S is assessed to take more than five days due to local administrative processes, and
thus such cash is not deemed readily available.
FINANCIAL STATEMENTS 146
4.6
Currency risk (continued)
Currency risk
– low exposure
Currency risk arises from changes in exchange rates, and affects the Group’s result, investments or value of financial instruments.
The Group’s exposure to currency risk on transaction level is low since income, costs and investments are in the same functional
currency country-by-country. Currency risk therefore predominantly arises from funding and investments in subsidiaries.
Risk management policy
•
It is Group policy to pool funding activities centrally and fund investments in subsidiaries through a combination
of intercompany loans and equity
•
Currency risk on intercompany loans is generally hedged against DKK or EUR when exposure exceeds DKK 5 million.
Some currencies cannot be hedged within a reasonable price range why correlation to a proxy currency is considered
and, if deemed appropriate, proxy hedging is applied
•
Exposure to EUR is monitored but not hedged due to the fixed rate exchange policy between DKK/EUR
•
Currency risk on net investments are as a main policy not hedged
Mitigation
•
Currency swaps are used to hedge currency risk on borrowings (external), intercompany balances and
long-term receivables (external)
•
Currency exposure on borrowings (external), intercompany balances and cash and cash equivalents is measured
at least on a weekly basis
4.6.1
Borrowings
Sensitivity
(DKKm)
Currency
exposure
(nominal)
Currency
swaps
(contractual)
Exposure,
net
Increase
in FX
Profit
or loss Equity
2025
EUR/DKK
(12,961)
13,157
196
1%
2
2
TRY/DKK
1)
(24)
93
69
20%
14
14
USD/DKK
670
(850)
(180)
10%
(18)
(18)
Other/DKK
(3,153)
2,478
(675)
10%
(68)
(68)
Total
(15,468)
14,878
(590)
2024
EUR/DKK
(13,736)
10,737
(2,999)
1%
(30)
(30)
TRY/DKK
1)
122
156
278
30%
61
83
USD/DKK
902
(1,111)
(209)
10%
(21)
(21)
Other/DKK
(1,245)
1,544
299
10%
30
30
Total
(13,957)
11,326
(2,631)
1)
TRY is not hedged due to high costs of hedging.
FINANCIAL STATEMENTS 147
4.6 Currency risk (continued)
Foreign currency sensitivity
A change in relevant currencies, with all other variables held constant, would have impacted profit or loss and equity with the amounts
above. The analysis is based on the Group’s internal monitoring of currency exposure on borrowings, intercompany loans, exter nal
long-term receivables, cash and cash equivalents as well as accrued royalties (Group internal).
4.6.2
Translation risk
Impact on profit or loss
In 2025, changes in average FX rates resulted in a decrease in Group revenue of DKK 3,148 million or 3.8% (2024: decrease of DKK 587
million or 0.7%) and a decrease of the Group’s operating profit before other items of DKK 226 million or 4.6% (2024: decrease of DKK
73 million or 1.7%), including the impact of hyperinflation in Türkiye.
Excluding hyperinflation impact, changes in average FX rates resulted in a decrease in Group revenue of DKK 2,373 million or 2.9%
(2024: decrease of DKK 1,346 million or 1.7%) and a decrease of the Group’s operating profit before other items of DKK 169 million or
3.5% (2024: decrease of DKK 109 million or 2.6%).
Change in average FX rates
2025 2024
TRY
(20.6)%
(29.6)%
GBP
(1.1)%
2.8%
CHF
1.7%
2.1%
USD
(4.2)%
(0.0)%
AUD
(6.3)%
(0.6)%
NOK
(0.7)%
(1.8)%
SEK
3.4%
0.5%
HKD
(4.1)%
0.3%
EUR
0.1%
0.1%
( ) = Weakened against DKK
Foreign currency sensitivity
A 10% change (TRY: 20% and EUR: 1% change) in relevant currencies, with all other variables held constant, would have impacted profit
or loss with the amounts below.
(DKKm) Revenue
Operating
profit before
other items
Royalty
expense
TRY
1,291
86
31
GBP
1,180
55
21
CHF
728
63
13
USD
543
14
7
AUD
515
36
10
NOK
362
31
7
SEK
327
21
6
EUR
255
15
5
HKD
254
16
5
Other
1,021
38
18
Total
6,476
375
123
FINANCIAL STATEMENTS 148
SECTION
5
Tax
5.1
Income tax
5.1.1
Tax expense and effective tax rate
Tax in profit or loss
(DKKm) 2025 2024
Current tax
Deferred tax
Prior year adjustments, net
621
57
(57)
690
(64)
(53)
Income tax
621
573
Effective tax rate
(DKKm) 2025 2024
Statutory income tax rate, Denmark
Foreign tax rate differential, net
22.0 %
(0.0)%
22.0 %
0.4 %
Total
22.0%
22.4%
Non-tax-deductible expenses less non-taxable income
1.5 %
(2.3)%
Prior year adjustments, net
(2.0)%
(1.6)%
Change in valuation of tax assets, net
(0.6)%
(2.0)%
Change in tax rates
0.6 %
0.3%
Hyperinflation
0.7 %
0.5%
Other taxes
(1.0)%
0.7%
Effective tax rate
21.2%
18.0%
Development in 2025
Income tax amounted to DKK 621 million (2024: DKK 573 million), resulting in an effective tax rate of 21.2% (2024: 18.0%). The effective
tax rate was favourably influenced by permanent differences, prior year adjustments and change in valuation of tax assets.
Hyperinflation adjustments (IAS 29) and other taxes impacted negatively.
Non-tax-deductible expenses less non-taxable income comprised various income and expenses. In 2025, application of interest
limitation rules impacted positively, while the effect was negative in Denmark, Germany and Norway. Furthermore, the tax impact of
the successful final settlement of the VAT dispute in Norway impacted negatively.
Change in valuation of tax assets, net was positively impacted by recognition of a tax asset for a balance of carried forward tax
deductible cost in Norway. In 2024, changes related mainly to release of valuation allowance on tax losses in Germany due to expected
improvements in future profitability.
Hyperinflation related to the hyperinflation adjustment in Türkiye.
Other taxes mainly comprised withholding tax, e.g. in Denmark, and US state taxes.
FINANCIAL STATEMENTS 149
5.2
Deferred tax
5.2.1
Recognised deferred tax
Assets Liabilities
(DKKm) 2025 2024 2025 2024
Tax losses carried forward
478
587
-
-
Goodwill
4
4
422
420
Customer contracts
7
7
263
255
Property and equipment (incl. right-of-use)
111
151
516
567
Provisions, lease and other liabilities
1,042
982
138
202
Pensions
173
195
96
97
Set-off within legal tax units/jurisdictions
(993)
(1,105)
(993)
(1,105)
Total
822
821
442
436
Development
(DKKm) 2025 2024
Liabilities, net at 1 January
(385)
(313)
Prior year adjustments, net
(52)
(14)
FX
adjustments
47
20
Hyperinflation restatement
(14)
3
Acquisitions/divestments, net
(43)
19
Actuarial (gains)/losses on pensions
10
(36)
Tax on profit before tax
57
(64)
Liabilities, net at 31 December
(380)
(385)
Prior year adjustments, net mainly related to adjustment of tax deductions (temporary differences) in the final tax returns.
Acquisitions/divestments, net in 2025 related mainly to additions from current year acquisitions and adjustments of previous years
divestments.
5.2.2
Unrecognised deferred tax assets
At 31 December 2025, the Group had unrecognised deferred tax assets which comprised tax losses carried forward and other
deductible temporary differences of DKK 889 million (2024: DKK 952 million) largely related to Germany.
FINANCIAL STATEMENTS 150
OECD Pillar Two
- update
In 2025, the Group has implemented bespoke financial processes to ensure full compliance with OECD’s BEPS 2.0 Pillar Two initiative
(Global Minimum Tax). On that basis it is management’s expectation that the Group’s effective tax rate and cash tax rate will not be
significantly impacted by the Global Minimum Tax rules.
Accounting estimates
Deferred tax assets relating to tax losses carried forward are recognised, when management assesses that these can be offset against
positive taxable income in the foreseeable future. The assessment is made at the reporting date taking into account the impac t from
limitation in interest deductibility and local tax restrictions in utilisation of tax losses. Future taxable income is based on financial
forecasts approved by management and expectations for operational development, mainly in terms of organic growth and operating
margin, i.e. the cash flow projections made for the purpose of the Group’s impairment tests, see 3.2, Impairment tests. These represent
management’s best estimates, but are by nature associated with significant uncertainty.
Uncertain tax positions As part of operating a global business, disputes with tax authorities around the world may occur. Management
periodically evaluates positions taken in tax returns with respect to situations where applicable tax regulation is subject to
interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of
uncertain tax positions is measured based on management’s best estimate of the amount required to settle the obligation and
recognised in tax payables or income tax depending on the tax position.
Management believes that the provisions made are adequate. However, the actual obligations may deviate as they depend on the
result of litigations and settlements with the relevant tax authorities.
Accounting policy
Deferred tax is provided for using the liability method on temporary differences between tax bases of assets and liabilities and their
carrying amounts, except for goodwill which is not deductible for tax purposes. Where alternative taxation rules can be appli ed to
determine the tax base, deferred tax is measured according to management’s intended use of the asset or settlement of the lia bility.
Deferred tax is measured according to the taxation rules and tax rates in the respective countries applicable at the reporting date when
the deferred tax becomes current tax.
Deferred tax assets, including the tax base of tax loss carry forwards, are recognised in non-current assets at the expected value of
their utilisation, either as a set-off against tax on future income, or as a set-off against deferred tax liabilities in the same legal tax entity
and jurisdiction.
The Group has applied the mandatory exception for recognition and disclosure of deferred tax assets and liabilities arising from Pillar
Two Income taxes.
5.2 Deferred tax
(continued)
FINANCIAL STATEMENTS 151
SECTION
6
Remuneration
6.1 Management remuneration
6.1.1
Key management personnel
The management team of the ISS Global Group formally consists of the Executive Management and the Board of Directors of ISS
Global A/S. Members of the management team are not separately remunerated for their duties performed in the ISS Global Group.
As the ISS Global Group has no operating activities independently of the ISS A/S Group, it relies on the management team of the ISS
A/S Group who has authority and responsibility for planning, implementing and controlling the ISS Global Group’s activities.
Consequently, key management personnel of the ISS A/S Group is also considered key management personnel of the ISS Global
Group.
Remuneration to key management personnel of the ISS A/S Group is specified below:
EGM
Corporate
Senior
(DKK
thousand)
Board EGMB Officers
2025
Base salary and non-monetary benefits
10,581
14,671
20,594
Annual bonus (STIP)
-
9,633
9,119
Sign-on bonus
-
168
-
Pensions
-
1,388
221
Share-based payments
-
9,140
7,141
Severance payments
-
-
31,828
Total
10,581
35,000
68,903
2024
Base salary and non-monetary benefits
9,121
11,776
42,736
Annual bonus (STIP)
-
10,707
21,556
Sign-on bonus
-
1,552
-
Pensions
-
1,113
2,086
Share-based payments
-
5,117
13,943
Severance payments
257
-
1,461
Total
9,378
30,265
81,782
Remuneration policy is described in the Remuneration report which is available at http://inv.issworld.com/iss-remuneration-reports.
FINANCIAL STATEMENTS 152
6.2 Share-based payments
6.2.1
Long-term incentive programme
Members of the EGM and other senior officers of the Group are granted a number of performance share units (PSUs) under the
annual LTIP. Participants are compensated for any dividend distributed between time of grant and time of vesting. Upon vesting, each
PSU entitles the holder to receive one share at no cost.
Subject to certain criteria, the PSUs will vest after three years.
In 2025, the ISS A/S Group recognised a cost of DKK 93 million (2024: DKK 93 million) of which DKK 9 million (2024: DKK 5 million) were
recognised in ISS A/S and DKK 34 million (2024: DKK 37 million) were recognised in ISS World Services A/S (see overview below for
PSUs and overview in 6.2.2, Special incentive programmes (SIP) for RSUs).
Fair value and profit or loss impact
LTIP
2025
LTIP
2024
LTIP
2023
LTIP 2022
1)
Fair value (DKKm)
At grant date
112
113
116
129
At 31 December 2025
111
96
91
-
Profit or loss impact (DKKm)
Recognised in 2025
22
36
25
3
Not yet recognised
63
38
9
-
PSUs and participants (number)
Participants
129
132
147
140
PSUs
granted
881,490
1,192,690
1,027,939
1,448,791
PSUs expected to vest (of outstanding PSUs), %
84%
90%
96%
75%
1)
Vested in March 2025.
Fair value assumptions
LTIP
2025
LTIP
2024
LTIP
2023
LTIP
2022
At the time of grant
Share price, DKK
1)
167-191
124-127
122-153
117-153
Expected volatility
2)
28.9%
32.8%
33.8%
42.3%
Expected life of grant, years
3
3
3
3
Risk-free interest rate
2)
0.6%-4.7%
0.8%-4.2%
1.0%-3.1%
(0.1%)-1.5%
1)
Based on five-day average.
2)
Based on observable market data for peer groups.
FINANCIAL STATEMENTS 153
6.2
Share-based payments (continued)
Vesting criteria
The vesting criteria are total shareholder return (TSR), measured relative to peer group performance, and earnings per share (EPS).
The weight of the individual criteria are:
•
TSR:
40%
•
EPS:
40%
•
Service-based objective: 20%
Vested programmes
In March 2025, the LTIP 2022 programme vested. Based on the EPS and TSR performances for the period 2022-2024, 75% of the
granted PSUs vested at a weighted average price of DKK 162 at the date of vesting. After this vesting, no further PSUs are outstanding
under the LTIP 2022 and the programme has lapsed.
Furthermore, in March 2026, the PSUs granted under LTIP 2023 will vest with 96% based on the annual EPS and TSR performances for
the period 2023-2025.
FINANCIAL STATEMENTS 154
6.2 Share-based payments (continued)
Outstanding PSUs EGM
Corporate
Senior
Other
senior
LTIP 2022 (vesting in 2025)
EGMB
Officers
officers
Total
At 1 January 2024
34,833
190,603
855,753
1,081,189
Granted
646
3,536
15,629
19,811
Forfeited
-
(13,648)
(27,653)
(41,301)
Outstanding at 31 December 2024
35,479
180,491
843,729
1,059,699
Exercised
Forfeited
Expired
(26,474)
-
(9,005)
(134,665)
-
(45,826)
(620,438)
(11,992)
(211,299)
(781,577)
(11,992)
(266,130)
Outstanding at 31 December 2025
-
-
-
-
LTIP 2023 (vesting in 2026)
At 1 January 2024
47,698
143,812
685,101
876,611
Granted
883
2,668
12,605
16,156
Forfeited
-
(13,823)
(48,084)
(61,907)
Outstanding at 31 December 2024
48,581
132,657
649,622
830,860
Granted
Forfeited
1,021
-
2,666
(5,739)
13,180
(30,649)
16,867
(36,388)
Outstanding at 31 December 2025
1)
49,602
129,584
632,153
811,339
LTIP 2024 (vesting in 2027)
Granted
115,713
163,197
892,389
1,171,299
Forfeited
-
(19,452)
(60,697)
(80,149)
Outstanding at 31 December 2024
115,713
143,745
831,692
1,091,150
Granted
Forfeited
2,430
-
2,328
(32,920)
16,633
(66,232)
21,391
(99,152)
Outstanding at 31 December 2025
1)
118,143
113,153
782,093
1,013,389
LTIP 2025 (vesting in 2028)
Granted
Forfeited
93,876
-
79,822
-
707,792
(31,131)
881,490
(31,131)
Outstanding at 31 December 2025
1)
93,876
79,822
676,661
850,359
1)
The weighted average remaining contractual life of the existing LTIP programmes is 1.2 year (2024: 1.2 year).
FINANCIAL STATEMENTS 155
6.2 Share-based payments (continued)
6.2.2
Special incentive programmes (SIP)
The Group has a Special Incentive Programme (SIP) under which Restricted Share Units (RSUs) are granted to certain EGM members
and Other Senior Officers of the Group. Subject to individual service criteria, the RSUs will vest after 2 years. Upon vesting, each RSU
entitles the holder to receive one share at no cost.
In 2025, a total of 25,075 RSUs were granted to members of EGM and certain Other Senior Officers under the SIP 2025 programme
Fair value and profit or loss impact
SIP
2025
SIP
2024
SIP
2023
Fair value (DKKm)
At grant date
4
9
1
At 31 December 2025
4
9
-
Profit or loss impact (DKKm)
Recognised in 2025
1
5
1
Not yet recognised
3
1
-
RSUs and participants (number)
Participants
4
6
4
RSUs
granted
25,075
74,300
10,365
Expected to vest (of outstanding RSUs), %
100%
100%
100%
Fair value assumptions
SIP
2025
SIP
2024
SIP
2023
At the time of grant
Share price, DKK
167-191
124-127
122
Expected life of grant, years
2.0
2.0
1.5
Vested programmes
In March 2025, the RSUs granted under the SIP 2023 programme vested 100% based on individual service criteria
In March 2026, the RSUs granted under the SIP 2024 programme will vest 100% subject to achievement of individual service criteria.
FINANCIAL STATEMENTS 156
Accounting policy
The value of services received in exchange for granted performance-based share units (PSUs) and restricted share units (RSUs) are
measured at fair value at the grant date and recognised in employee costs over the vesting period with a corresponding increase in
debt to ISS A/S, as both schemes are equity-settled.
The fair value of granted PSUs under the longterm incentive programme is measured using a generally accepted valuation model
taking into consideration the terms and conditions upon which the PSUs were granted including marketbased vesting conditions (Total
Shareholder Return (TSR)), see Vesting criteria in 6.2.1. Fair value assumptions are disclosed in the tables in 6.2.1 and 6.2.2.
On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. This estimate is revised for changes in
the number of PSUs and RSUs expected to vest due to non-market based vesting conditions.
6.2 Share-based payments (continued)
Outstanding RSUs EGM
Corporate
Senior
Other
senior
SIP 2023 (vested in 2025)
EGMB
Officers
officers
Total
At 1 January 2024
-
-
10,178
10,178
Granted
-
-
187
187
Outstanding at 31 December 2024
-
-
10,365
10,365
Granted
-
-
(10,365)
(10,365)
Outstanding at 31 December 2025
-
-
-
-
SIP 2024 (vesting in 2026)
Granted
3,003
-
69,769
72,772
Outstanding at 31 December 2024
3,003
-
69,769
72,772
Granted
63
-
1,465
1,528
Outstanding at 31 December 2025
1)
3,066
-
71,234
74,300
SIP 2025 (vesting in 2027)
Granted
-
11,495
13,580
25,075
Outstanding at 31 December 2025
1)
-
11,495
13,580
25,075
1)
The weighted average remaining contractual life of the existing SIP programmes is 0.4 year (2024: 1.0 year).
FINANCIAL STATEMENTS 157
SECTION
7
Other required disclosures
7.1 Pensions and similar obligations
7.1.1
Pension schemes
The Group has a significant number of pension schemes with different characteristics. The majority of the schemes are defined
contribution plans, but in a number of countries, the Group is also party to defined benefit plans.
Defined contribution plans
Under these schemes the obligation towards the employees and risk associated with future developments in salary, interest rate,
inflation, mortality, etc. rests with the Group. The plans are primarily based on years of service, and benefits are determined on the basis
of salary and position. In 2025, contributions amounted to DKK 1,247 million (2024: DKK 1,249 million), or 80% of the Group’s pension
costs (2024: 84%).
Defined benefit plans
Under these schemes the obligation towards the employees and risk associated with future developments in salary, interest rate,
inflation, mortality, etc. rests with the Group. The plans are primarily based on years of service, and benefits are determined on the basis
of salary and position.
The majority (93%) of the obligations are funded with assets placed in independent pension funds. In some countries, primarily Türkiye,
Sweden, Hong Kong and Mexico, the obligation is unfunded. For unfunded plans, the obligation amounted to DKK 667 million or 7% of
the present value of the total gross obligation (2024: DKK 728 million or 7%).
Multiemployer pension plans
In the US and the Netherlands, the Group participates in multiemployer pension schemes that by nature are defined benefit plans. Due
to the unavailability of necessary information, including information on surplus or deficit if any, from the relevant funds, the Group
accounts for the schemes as defined contribution plans.
In 2025, the Group contributed DKK 78 million (2024: DKK 74 million) to multiemployer pension plans of which DKK 39 million (2024:
DKK 32 million) related to the Netherlands and DKK 39 million (2024: DKK 42 million) to the US. In total, these corresponded to 5% of the
Group’s total pension costs (2024: 5%).
FINANCIAL STATEMENTS 158
7.1.2
Major defined benefit plans
The Group's largest defined benefit plans:
Switzerland
Participants are insured against the financial consequences of:
•
retirement;
•
disability; and
•
death
The pension plans guarantee a minimum interest credit and fixed conversion rates at retirement and include a risk-sharing element
between ISS and the plan participants.
Contributions are paid by both ISS and the employees and the plans must be fully funded. In case of underfunding, recovery measures
must be taken, such as additional financing from ISS or from ISS and the plan participants, reduction of benefits or a combination of
both.
Germany
Participants are insured against the financial consequences of:
•
retirement;
•
disability; and
•
death
The majority of the pension plans guarantee a life-long monthly pension payment after retirement. Most of the plans are closed for new
entrants. Contributions are paid by ISS and there is no risk-sharing element.
UK
Participants are insured against the financial consequences of:
•
retirement; and
•
death
The pension plans guarantee a defined benefit pension at retirement on a final salary basis, but do not provide any insured disability
benefits. The majority of the plans do not include a risk-sharing element between ISS and the plan participants.
FINANCIAL STATEMENTS 159
7.1 Pensions and similar obligations (continued)
7.1.3
Defined benefit plans, net obligation
2025
2024
Obligation
Plan assets Obligation Plan assets
(DKKm)
(present value)
(fair value)
Total (present value)
(fair value)
Total
At 1 January
9,736
9,991
(255)
8,755
9,338
(583)
Current service costs
226
(4)
230
208
-
208
Interest on obligation/plan assets
245
166
79
216
183
33
Past service costs
-
-
-
(2)
-
(2)
Recognised in profit or loss
471
162
309
422
183
239
Remeasurement (gain)/loss:
Demographic assumptions
6
-
6
(13)
-
(13)
Financial assumptions
(340)
-
(340)
254
-
254
Experience adjustments
125
-
125
(39)
-
(39)
Return on plan assets
-
253
(253)
-
62
(62)
Asset ceiling
-
(341)
341
-
(28)
28
Recognised in Other comprehensive income
(209)
(88)
(121)
202
34
168
FX
adjustments
(71)
37
(108)
(65)
(58)
(7)
Contributions, plan participants
177
177
-
179
179
-
Contributions, employer
-
224
(224)
-
237
(237)
Benefits paid
(531)
(467)
(64)
(548)
(470)
(78)
Asset ceiling
-
341
(341)
-
28
(28)
Acquisitions/divestments, net
5
-
5
150
165
(15)
Reclass
-
-
-
641
355
286
Other changes
(420)
312
(732)
357
436
(79)
At 31 December
9,578
10,377
(799)
9,736
9,991
(255)
Recognised in the statement of financial position
(DKKm) 2025 2024
Carrying amount of defined benefit plans
(799)
(255)
Accumulated impact from asset ceiling
1)
1,574
1,207
Defined benefit obligation, net
2)
775
952
Other long-term employee benefits
329
364
Pensions and similar obligations
1,104
1,316
1)
Including an FX adjustment on the opening balance of DKK 26 million (2024: DKK 7 million).
2)
Including an asset of DKK 386 million (2024: DKK 391 million) related to defined benefit plans in the UK.
FINANCIAL STATEMENTS 160
Accounting estimates
Actuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is
determined based on country-specific assumptions regarding future development in variables such as salary levels, interest rates,
inflation, mortality and guaranteed benefits. Assumptions are assessed at the reporting date.
The discount rates used for calculating the present value of expected future cash flows are based on the market yield of high -quality
corporate bonds or government bonds with a maturity approximating to the terms of the defined benefit obligations.
7.1 Pensions and similar obligations (continued)
Development in 2025
In 2025, the net impact on the pension obligation from actuarial calculations was a gain of DKK 121 million, mainly stemming from
actuarial gains of DKK 340 million due to increased discount rates (financial assumptions), primarily in Switzerland and Germany. This
was partly offset by an actuarial loss of DKK 125 million due to membership movements (experience assumptions), primarily in
Switzerland.
The major plans in Switzerland and the UK have significant surplus due to strong asset returns in prior years. In 2025, there was an
additional positive return on plan assets of DKK 253 million, mainly due to favourable market conditions for our plan assets in
Switzerland.
Due to surplus restrictions (ISS does not have access to the overfunding), a significant asset ceiling has been recognised in prior years.
In 2025, the asset ceiling increased further by DKK 341 million (2024: increase of DKK 28 million) resulting in an accumulated impact
from the asset ceiling of DKK 1,574 million by the end of 2025 (2024: DKK 1,207 million).
Contributions in 2025
In 2025, the Group contributed DKK 288 million to defined benefit plans (2024: DKK 315 million). The Group expects to contribute DKK
283 million in 2026.
7.1.4
Reimbursement rights in Germany
Certain pension plans in Germany carry contractual provisions for reimbursement rights, which partially reduce the pension obligation.
As these reimbursement rights do not meet the criteria for recognition as plan assets, they are reported separately under Other
financial assets. In 2025, the reimbursement right decreased to DKK 282 million (2024: DKK 381 million) due to actuarial gain s
decreasing the related pension obligation.
FINANCIAL STATEMENTS 161
7.1
Pensions and similar obligations (continued)
Accounting policy
Defined contribution plans The Group’s contributions are recognised in Employee costs when the related service is provided.
Defined benefit plans The Group’s net obligation is calculated by a qualified actuary using the projected unit credit method, separately
for each plan by estimating the amount of future benefits that employees have earned in return for their service in the curre nt and
prior periods. The present value less the fair value of plan assets is recognised in Pensions and similar obligations. If the calculation
results in a net asset, the asset is recognised if it offsets refunds from, or leads to reduced future contributions to, the plan.
Consideration is given to applicable minimum funding requirements.
Pension costs are calculated based on actuarial estimates and financial expectations at the beginning of the year. Service costs are
recognised in Employee costs and net interest is recognised in Finance costs. Remeasurements (actuarial gains/losses), comprising the
differences between the expected development in pension assets and liabilities and the realised amounts at the reporting date as well
as the effect of asset ceiling are recognised in Other comprehensive income.
When the benefits are changed or a plan is curtailed, the resulting change in benefits that relates to past service or the gain or loss on
curtailment is recognised in Employee costs. Gains and losses on settlements are recognised when incurred.
The Group does not have the necessary information to account for the schemes as defined benefit plans, and they are therefore
accounted for as defined contribution plans.
Multiemployer plans The Group does not have the necessary information to account for the schemes as defined benefit plans, and they
are therefore accounted for as defined contribution plans.
Other long-term employee benefits are calculated as defined pension plans, except that actuarial gains and losses are recognised in
Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc.
FINANCIAL STATEMENTS 162
7.1
Pensions and similar obligations (continued)
7.1.5
Plan assets
(DKKm)
Switzer-
land
UK
Ger-
many
Other
Total
2025
Investment funds:
Listed shares
3,266
40
-
-
3,306
Corporate bonds
1,752
-
-
-
1,752
Property
1,836
-
-
-
1,836
Other
1,339
4
34
-
1,377
Corporate bonds
-
512
160
-
672
Government bonds
-
322
-
-
322
Cash/cash equivalents
331
281
9
-
621
Insurance contracts
73
-
2
159
234
Listed shares
1)
-
-
138
-
138
Other
-
-
82
37
119
Total
8,597
1,159
425
196
10,377
2024
Investment funds:
Listed shares
3,036
-
-
-
3,036
Corporate bonds
1,738
-
-
-
1,738
Property
1,729
-
-
-
1,729
Other
1,209
23
40
-
1,272
Corporate bonds
-
700
159
-
859
Government bonds
-
362
-
-
362
Cash/cash equivalents
235
123
11
-
369
Insurance contracts
226
-
-
156
382
Listed shares
1)
-
1
113
-
114
Other
-
-
88
42
130
Total
8,173
1,209
411
198
9,991
1)
Traded in active markets (listed).
The majority of the Group’s pension obligations are funded with assets placed in independent pension funds (unlisted), mainly in
Switzerland, the UK and Germany.
Plan assets are predominantly placed in investment funds that invest in listed shares, corporate bonds, property or other, such as
investments in infrastructure and energy projects and senior loans.
FINANCIAL STATEMENTS 163
7.1
Pensions and similar obligations (continued)
7.1.6
Actuarial assumptions
2025
2024
CHF GBP EUR Other CHF GBP EUR Other
Discount rates
1.3%
5.4-5.6%
3.7-4.3%
3.5-29.6%
1.0%
5.5-5.6%
3.5-4.2%
3.0-28.5%
Salary increase
1.0%
2.3-2.5%
2.5-3.2%
3.0-24.0%
1.0%
0.0-5.0%
0.0-3.2%
2.0-25.0%
Pension increase
0.0%
2.4-2.8%
2.0%
2.7-3.8%
0.0%
2.7-3.0%
0.0-1.9%
0.0-1.9%
Price inflation
1.0%
2.3-2.5%
2.0-2.2%
1.7-3.5%
1.0%
2.5-2.8%
0.0-2.2%
0.0-3.5%
Sensitivity analysis
The sensitivities related to the applied significant actuarial assumptions in terms of estimated increase/(decrease) in the obligation are
illustrated below.
The analysis is based on changes in assumptions, with all other variables held constant, that the Group considered to be reasonably
possible at the reporting date.
(DKKm)
Discount rate
(420) 518
(421) 491
Price inflation
64 (74)
82 (37)
Salary increase
82 (74)
98 (61)
Pension increase
241 (41)
259 (213)
+1 year -1 year
+1 year -1 year
Life expectancy
198 (189)
206 (166)
Duration
The estimated weighted average duration of the defined benefit obligation was 10 years (2024: 10 years) and is split into:
(Years) 2025 2024
Active employees
9
9
Retired employees
11
12
Deferred vested
1)
15
15
Total employees
10
10
1)
The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferred vested make up
less than 2% of the participants, and do not exist in many of the shorter duration plans.
2025
2024
+0.5%
-
0.5%
+0.5%
-
0.5%
FINANCIAL STATEMENTS 164
7.2
Hyperinflation in Türkiye
7.2.1
Impact on the consolidated financial statements
Inflation restatement
(DKKm)
Total
(excl. IAS 29)
Non-
monetary
Profit
or loss
Retranslation
(YE
FX)
Total
adjustments
Total
2025
Profit or loss
Revenue
84,727
-
704
(723)
(19)
84,708
Operating profit before other items
4,873
(73)
60
(55)
(68)
4,805
Operating
profit
3,603
(95)
60
(54)
(89)
3,514
Net
profit
2,321
(7)
-
(2)
(9)
2,312
Financial ratios
Organic growth (non-IFRS)
4.3%
-
-
-
-
4.3%
Operating margin (non-IFRS)
5.8%
(0.1%)
0.0%
0.0%
(0.1%)
5.7%
Cash flows
Operating activities
3,322
-
-
(10)
(10)
3,312
Investing activities
(1,081)
-
-
5
5
(1,076)
Financing activities
(7,069)
-
-
0
0
(7,069)
Free cash flow (non-IFRS)
2,080
-
-
3
3
2,083
Financial position
(DKKm)
Total
(excl. IAS 29)
Acc. inflation
restatement
Total
2025
Goodwill
14,865
972
15,837
Other intangible assets
1,320
387
1,707
Right-of-use assets, property and equipment
3,315
107
3,422
Total assets
40,970
1,466
42,436
Other comprehensive income
1)
(1,901)
1,253
(648)
Other equity elements
6,653
89
6,742
Total equity
4,752
1,342
6,094
Deferred tax liabilities
318
124
442
Total equity and liabilities
40,970
1,466
42,436
1)
In year impact of restatement amounts to DKK 332 million (2024: DKK 477 million).
Development in 2025
In 2025, the impact of hyperinflation restatement on our three key KPIs, i.e. organic growth (non-IFRS), operating margin (non-IFRS)
and free cash flow (non-IFRS) continued to be immaterial.
The Group’s financial position continued to be significantly impacted. At 31 December 2025, goodwill increased by DKK 972 million
(2024: DKK 992 million), customer contracts increased by DKK 387 million (2024: DKK 405 million) and equity increased by DKK 1,342
million (2024: DKK 1,395 million) (accumulated hyperinflation adjustment impacts).
In 2025, the inflation rate decreased to 30.89% (2024: 44.38%) and the exchange rate for TRY/DKK decreased from 20.30 in the
beginning of the year to 14.79 in December 2025, leading to an average rate of 16.65 (2024: 20.97).
FINANCIAL STATEMENTS 165
7.2
Hyperinflation in Türkiye (continued)
Inflation restatement
(DKKm)
Total
(excl. IAS 29)
Non-
monetary
Profit
or loss
Retranslation
(YE
FX)
Total
adjustments
Total
2024
Profit or loss
Revenue
83,026
-
943
(187)
756
83,782
Operating profit before other items
4,889
(78)
80
(14)
(12)
4,877
Operating
profit
3,572
(99)
79
(14)
(34)
3,538
Net
profit
2,550
(3)
-
(0)
(3)
2,547
Financial ratios
Organic growth (non-IFRS)
6.3%
-
-
-
-
6.3%
Operating margin
5.9%
(0.1%)
0.0%
0.0%
(0.1%)
5.8%
Cash flows
Operating activities
3,529
-
-
(2)
(2)
3,527
Investing activities
(1,413)
-
-
1
1
(1,412)
Financing activities
(1,334)
-
-
5
5
(1,329)
Free cash flow (non-IFRS)
1,915
-
-
1
1
1,916
Financial position
Total
Acc. inflation
(DKKm)
(excl. IAS 29)
restatement
Total
2024
Goodwill
14,928
992
15,920
Other intangible assets
1,307
405
1,712
Right-of-use assets, property and equipment
3,233
134
3,367
Total assets
48,022
1,531
49,553
Other comprehensive income
(942)
1,299
357
Other equity elements
9,577
96
9,673
Total equity
8,635
1,395
10,030
Deferred tax liabilities
300
136
436
Total equity liabilities
48,022
1,531
49,553
FINANCIAL STATEMENTS 166
7.2
Hyperinflation in Türkiye (continued)
Accounting policy
Inflation restatement
The financial statements of ISS Türkiye based on historical costs are restated for inflation to reflect the purchasing power at the
reporting date using the consumer price index.
Non-monetary items such as goodwill, customer contracts, right-of-use assets, property and equipment and deferred tax, are restated
for the effect of inflation based on changes in the price index for the period from initial recognition to 31 December 2025 or to the
date of disposal, where relevant. The restatement was made effective from the time, the items were initially recognised, which was no
earlier than 2005, when ISS first entered Türkiye through an acquisition. The restatement effect related to prior years is recognised in
Other comprehensive income and current year effect is recognised in Finance income and Finance costs.
Management assesses whether the restatement of non-monetary items represents an indication of impairment to ensure that the
restated amounts do not exceed the recoverable amounts of the assets, see 3.2, Impairment tests.
Monetary items such as receivables, payables and borrowings are not restated as these items already reflect the purchasing power at
the reporting date.
Equity includes the opening effect of restating nonmonetary items. The restatement effects based on in-year changes in the price
index are recognised in Other comprehensive income with set-off within Finance income or Finance costs in profit or loss.
Profit or loss transactions are restated to reflect changes in the price index from the time of transaction to the end of the reporting
period except for depreciation and amortisation, which are recalculated based on the inflation-adjusted carrying amounts. The
restating gain or loss is recognised in Finance income or Finance costs, except for the tax effect, which is recognised in Income tax.
Cash flow statement Operating profit before other items includes a non-cash effect from the inflation restatement, and is eliminated in
the line Non-cash items related to hyperinflation.
Price index
Restatement for hyperinflation of the financial statements of ISS Türkiye is based on the development in the consumer price index
provided by the Türkiyish Statistical Institute calculated as an average year to date conversion factor. For 2025, the inflation rate in
Türkiye was 30.89% (2024: 44.38%). In 2025, the conversion factor was 12% (2024: 17%).
Retranslation from TRY to DKK
The financial statements of ISS Türkiye, including effects of inflation restatement, are translated into DKK applying the TRY/DKK
exchange rate at the reporting date as opposed to the Group’s normal practice of translating the profit or loss using the exchange rate
at the transaction date or an average exchange rate for the month.
The TRY/DKK exchange rate decreased from 20.30 at the beginning of 2025 to 14.79 at 31 December 2025. The average rate was 16.65
(2024: 20.97).
FINANCIAL STATEMENTS 167
7.3 Related parties
Parent and ultimate controlling party
The sole shareholder of ISS Global A/S, ISS World Services A/S has controlling influence in the Group and is wholly owned by ISS A/S
(the ultimate parent).
Key management personnel
The Board of Directors (Board) and the Executive Group Management (EGM) of ISS A/S are considered the Group’s key management
personnel as defined in 6.1, Management remuneration.
Apart from remuneration, including share-based incentive programmes, there were no significant transactions with members of the
Board and the EGM in 2025.
7.4 Fees to auditors
(DKKm) 2025 2024
Statutory audit
53
51
Other assurance services
4
5
Tax and VAT advisory services
1
2
Other services
0
3
Total
58
61
Fees for services other than the statutory audit of the financial statements provided by PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab, Denmark mainly consist of other assurance opinions including limited assurance on the sustainability
statement and agreed-upon procedures.
Other assurance services comprised work related to the interim financial statements and other assurance services and ESG.
Tax and VAT advisory services mainly related to tax compliance services.
7.5 Subsequent events
Other than set out elsewhere in these consolidated financial statements, we are not aware of events subsequent to 31 December 2025,
which are expected to have a material impact on the Group’s financial position.
FINANCIAL STATEMENTS 168
SECTION
8
Basis of preparation
This section sets out the Group’s material accounting policies of a more general nature relevant for the understanding of the basis for
preparation of the consolidated financial statements.
Material accounting policies for specific accounting items are included in the relevant notes to the consolidated financial statements.
A list of the notes is presented on p. 89.
Changes in accounting policies
In 2025, no changes with material effect on recognition and measurement were implemented.
8.1
Other material accounting policies
ISS Global A/S's bonds are listed on Luxembourg Stock Exchange. The consolidated financial statements of ISS Global A/S for the year
ended 31 December 2025 comprise ISS Global A/S and its subsidiaries (collectively, the Group). Significant subsidiaries are listed in
8.4, Group companies.
The 2025 Annual Report for ISS Global A/S was discussed and approved by the Executive Management and the Board of Directors on
6 March 2026 and issued for approval at the subsequent annual general meeting on 16 April 2026.
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as adopted by
the EU and additional requirements of the Danish Financial Statements Act. In addition, the consolidated financial statements have
been prepared in compliance with the IFRS Accounting Standards issued by the IASB.
The consolidated financial statements have been prepared on the basis that the Group will continue to operate as a going concern.
The consolidated financial statements are presented in Danish kroner (DKK), which is ISS Global A/S’s functional currency. All amounts
have been rounded to nearest DKK million (DKKm), unless otherwise stated.
Fair value measurement and disclosure
Assets and liabilities are generally measured at historical cost, except for plan assets under defined benefit plans, derivatives and
contingent consideration that are measured at fair value. Fair value measurements are categorised within the fair value hierarchy and
disclosed in the relevant notes.
For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade
receivables, trade payables and other current and non-current financial assets and liabilities approximate their carrying amounts
largely due to the short-term nature of these items.
The fair value of borrowings, including methods and assumptions used to estimate the fair value, is disclosed in 4.2.1, Borrowings.
Materiality
The consolidated financial statements separately present items or groups of items that are considered material. In addition,
information that is considered material, either individually or in combination with other information, is disclosed.
Materiality is judged by reference to the size and nature of the item, either individually or combined. The deciding factor is whether
the omission or misstatement could, individually or collectively, influence the economic decisions made by the primary users on the
basis of the consolidated financial statements.
FINANCIAL STATEMENTS 169
8.1
Other material accounting policies (continued)
Basis of consolidation
The consolidated financial statements comprise ISS Global A/S and entities controlled by ISS Global A/S. Consolidation is performed
after elimination of intra-group balances, income and expenses. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment.
By virtue of agreement certain non-controlling shareholders are only eligible of receiving benefits from their noncontrolling interest
when ISS as controlling shareholder has received their initial investment and compound interest on such. In such instances the
subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has recognised amounts exceeding their
investment including compound interest on such.
Foreign currency
Transactions in currencies other than the functional currency of the respective Group companies are considered transactions
denominated in foreign currencies.
On initial recognition, foreign currency transactions are translated to the functional currencies of the Group companies at the
exchange rates at the transaction date. Translation differences between the exchange rates at the transaction date and the date of
payment are recognised in Finance income or Finance costs.
Monetary items denominated in foreign currencies are translated at the exchange rates at the reporting date. The difference between
the exchange rates at the reporting date and at the transaction date or the exchange rate used in the latest financial statements is
recognised in Finance income or Finance costs.
On recognition in the consolidated financial statements of Group companies with a functional currency other than DKK, except for
companies operating in hyperinflationary environments, the statements of profit or loss and statement of cash flows are translated at
the average exchange rates for the period and the statements of financial position are translated at the exchange rates at th e
reporting date. Foreign exchange adjustments arising on translation of the opening balance of equity of foreign entities and on
translation of receivables considered part of the net investment in the entity and on translation of the profit or loss statements from
the exchange rates at the transaction date to the exchange rates at the reporting date are recognised in Other comprehensive
income. However, if the foreign entity is a non-wholly owned subsidiary, the relevant proportion of the translation difference is
allocated to the non-controlling interest.
8.2
In-year changes
Changes in accounting policies
From 1 January 2025, the Group has adopted certain new and amended standards with no significant impact on recognition and
measurement.
FINANCIAL STATEMENTS 170
8.3
New regulations
IASB issued certain amended standards and interpretations, that are not mandatory for the consolidated financial statements of the
Group at 31 December 2025. The Group expects to adopt the new standards and interpretations when they become mandatory.
Based on the current business setup and level of activities, none of these standards and interpretations are expected to have a
material impact on the recognition and measurement in the consolidated financial statements.
The standard below will impact presentation and the definition of certain required subtotals.
IFRS 18: Presentation and Disclosure in Financial statements
From 1 January 2027, IFRS 18 will replace IAS 1, introducing new requirements that will help to achieve comparability of fina ncial
performance of similar entities and provide more relevant information and transparency to users.
Even though IFRS 18 will not impact the recognition and measurement of items, its impact on presentation (including definitio n of
certain required subtotals) and disclosures is expected to be pervasive, in particular those related to the statement of prof it or loss
and providing management-defined performance measures (MPMs) within the financial statements. The key new concepts introduced
in IFRS 18 relate to:
•
the structure of the statement of profit or loss;
•
required disclosures in the financial statements for certain profit or loss performance measures that are reported outside
and entity’s financial statements (i.e. MPMs); and
•
enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general
ISS is currently analysing the new standard and will disclose the impact, including on profit or loss and MPMs, in due course.
FINANCIAL STATEMENTS 171
8.4
Group companies
Below the Group's significant subsidiaries and joint ventures are presented per region. Together these are referred to as "Companies
within the ISS Group".
Northern Europe
Denmark (ISS Global A/S's country of domicile)
Norway
ISS Facility Services A/S
100%
ISS Holding AS
100%
ISS Global Management A/S
100%
4)
ISS Management AS
100%
ISS Holding France A/S
100%
4)
ISS Facility Services AS
100%
ISS Lending A/S
100%
4)
ISS Serveringspartner AS
100%
ISS Service Management AS
100%
Belgium & Luxembourg
ISS Catering N.V.
100%
Poland
ISS Facility Services N.V.
100%
ISS Facility Services Sp. Z.o.o.
100%
ISS Reception and Support Services N.V.
100%
ISS World Services Poland Sp. z o.o.
100%
4)
ISS Facility Services S.A. (Luxembourg)
100%
ISS Technical Services BV
100%
Sweden
ISS Luxinterim S.a.r.l.
ISS Facility Services Holding AB
100%
ISS Facility Services AB
100%
Finland
ISS Palvelut Holding AB
100%
ISS Palvelut Holding Oy
100%
ISS Palvelut Oy
100%
UK & Ireland
ISS UK Holding Ltd.
100%
Lithuania
ISS
UK
Ltd.
100%
ISS Lietuva UAB
100%
ISS Facility Services Ltd.
100%
ISS Mediclean Ltd.
100%
Netherlands
ISS Ireland Ltd.
100%
ISS Catering Services B.V.
100%
ISS Holding Nederland B.V.
100%
ISS Integrated Facility Services B.V.
100%
ISS Nederland B.V.
100%
FINANCIAL STATEMENTS 172
8.4 Group companies
(continued)
Central & Southern Europe
Austria
ISS Austria Holding GmbH
100%
Romania
ISS Facility Services GmbH
100%
ISS Facility Services International S.R.L
100%
med-serv GmbH
100%
ISS Ground Services GmbH
100%
Spain
ISS Food Services GmbH
100%
Integrated Service Solutions S.L.
100%
Franye Gebäudetechnik GmbH
100%
ISS Facility Services, S.A.
100%
Ute-Hospitales S.A.S
65%
1)
Czech Republic GCC
Gelim Madrid, S.A.
100%
ISS International Czech Republic s.r.o.
100%
5)
Gelim S.A.
100%
Servicios Extremeños, S.A.
100%
Germany
Garbialdi, S.A.
100%
ISS Automotive Services GmbH
100%
ISS Facility Services Holding GmbH
100%
ISS Integrated Facility Services GmbH
100%
Switzerland
ISS Energy Services GmbH
100%
ISS Facility Services AG
100%
ISS Communication Services GmbH
100%
ISS Schweiz AG
100%
ISS Facility Services (Liechtenstein) AG
100%
Hungary
ISS International Hungary Kft
100%
5)
Türkiye
ISS Hazir Yemek Uretim Ve Hizmet
50.1%
3)
Italy
ISS Proser Koruma Ve Guvenik Hizmetleri A.S.
50.1%
3)
ISS Facility Services S.r.l.
100%
ISS Tesis Yonetim Hizmetleri A.S.
50.1%
3)
ISS İşletme Hizmetleri A.Ş.
50.1%
3)
Portugal
ISS Hasere Kontrol Hiz. AS.
50.1%
3)
ISS Tech Portugal, Unipessoal Lda.
100%
4)
ISS Tesis Yonetim Hizmetleri A.S & FMS Saglik
50.1%
3)
Hizmetleri A.S. Adi Ortakligi
Americas
Chile
US & Canada
A Punto Servicios de Alimentacion S.A.
100%
ISS Facility Services Holding, inc
100%
ISS Chile S.A.
100%
ISS Management and Finance Co, Inc
100%
ISS Servicios Generales
100%
ISS Facility Services Inc (US)
100%
ISS Servicios Integrales Ltda.
100%
Guckenheimer Enterprises, Inc
100%
ISS Holding, Inc.
100%
Mexico
ISS Centro America S. de R.L de C.V.
100%
ISS Facility Services, Inc (CA)
100%
ISS Facility Services, S.A. de C.V.
100%
FINANCIAL STATEMENTS 173
8.4
Group companies (continued)
Asia & Pacific
Australia & New Zealand
Hong Kong
ISS Facility Management Pty Ltd
100%
ISS Adams Secuforce Ltd
100%
ISS Facility Services Australia Ltd.
100%
ISS China Holdings Ltd.
100%
ISS Facility Services Pty Ltd.
100%
ISS China Holdings I Ltd.
100%
ISS Health Services Pty Ltd.
100%
ISS EastPoint Properties Ltd
100%
ISS Integrated Services Pty Ltd.
100%
ISS EastPoint Property Management Ltd
100%
ISS Property Services Pty Ltd.
100%
ISS Facility Services Ltd
100%
ISS Security Pty Ltd.
100%
ISS Greater China Ltd.
100%
Pacific Invest December 2004 Pty Ltd.
100%
ISS Mediclean (HK) Ltd.
100%
Pacific Service Solutions Pty Ltd.
100%
ISS Pan Asia Security Services Ltd
100%
ISS Facility Services Limited
100%
ISS Support Services Limited
100%
ISS Holdings NZ Ltd.
100%
Silvertech E M Engineering Co Ltd
100%
ISS Administrative Services Pty Ltd
100%
ISS Training Pty Ltd
100%
India
Blurlato Pty Ltd
100%
ISS Facility Services India Pvt Ltd.
100%
Wiltari Pty Ltd
100%
ISS Sdb security services private limited
46%
2)
Innovative salary services and payroll
46%
2)
China
advisory private limited
ISS Facility Services (Shanghai) Ltd.
100%
Indonesia
ISS Hongrun (Shanghai) Cleaning Services Limited
100%
PT.
ISS
Facility
Services
100%
Shanghai BA Property Management Co., Ltd
100%
PT. ISS Indonesia
100%
Shanghai
BA
Security
Co.,
Ltd
100%
PT.
ISS
Jasa
Fasilitas
0%
2)
Shanghai ISS Catering Management Ltd.
100%
Singapore
ISS Catering Services Pte. Ltd. 100%
ISS Facility Services Pte Ltd. 100%
ISS M and E Pte Ltd. 100%
Notes
1)
Joint venture
2)
By virtue of the governance structure, the Group has the power to govern the financial and operating policies of the company. Consequently, the
company is consolidated as a subsidiary.
3)
Under certain circumstances or events, ISS may be obliged to choose to purchase other shareholders’ shareholdings or dispose of its own shareholdings.
4)
Group HQ entities
5)
Global managed services
FINANCIAL STATEMENTS 174
8.5
Definitions
ISS uses various key figures, financial ratios and non-financial ratios, all of which provide our stakeholders with useful and necessary
information about the Group’s financial position, performance, cash flows and development in a consistent way. In relation to
managing the business, achieving our strategic goals and ultimately creating value for our shareholders, these measures are
considered essential.
In addition, the Group uses alternative performance measures (APMs) to provide stakeholders with additional measures to evalu ate
and analyse the Group's performance. The APMs are non-IFRS financial measures defined by the Group and thus may not be
comparable with measures provided by peers or other companies' measures.
Alternative performance measures
Free cash flow
Cash flow from operating activities – Acq. of intangible assets, property and equipment, net – Change in financial assets (excl. equity-accounted
investees) – Addition of right-of-use assets, net
Organic growth, %
(Revenue current year excl. hyperinflation – Comparable revenue
1)
prior year) x 100 / Comparable revenue
1)
prior year
Acquisitions are treated as having been integrated with ISS at the acquisition date. Consequently, organic growth includes changes in revenue
of such acquisitions compared with expectations at the acquisition date.
Operating margin, %
Operating profit before other items x 100 / Revenue
Total revenue growth, %
(Revenue current year – Revenue prior year) x 100 / Revenue prior year
Financial ratios
Acquisitions, %
Revenue from acquisitions
2)
x 100 / Revenue prior year
Currency adjustments
Total revenue growth – Organic growth – Acquisition/divestment growth, net
3)
Divestments, %
Revenue from divestments
4)
× 100 / Revenue prior year
Equity ratio, %
Total equity × 100 / Total assets
Gross debt
Borrowings + utilisation of factoring and certain customer's supply chain finance arrangements
Net debt
Borrowings – Securities – Cash and cash equivalents +/– Fair value of derivatives + Net debt included in Liabilities held for sale
1)
Comparable revenue prior year excludes impacts from changes in exchange rates and acquisitions/divestments, net as well as impact from hyperinflation
restatement. To arrive at comparable revenue, prior year’s revenue is retranslated by applying current year’s exchange rates, divestments and impacts from
hyperinflation restatements are excluded and estimated impacts from acquisitions are added.
2)
Expectations at the acquisition date.
3)
Estimated or actual revenue where available at the divestment date.
4)
Incl. the effect from exclusion of currency effects from the calculation of organic growth and acq./div., net.
PARENT COMPANY 175
Parent company financial statements
Primary financial statements
176 Statement of profit or loss
176 Statement of comprehensive income
177 Statement of cash flows
178 Statement of financial position
179 Statement of changes in equity
Accounting policies
180
1
Material accounting policies
180
2
Significant estimates and judgements
180
3
New regulations
Statement of profit or loss
180
4
Other operating income and expenses, net
181
5
Fees to auditors
181
6
Other expenses
181
7
Finance income and costs
182
8
Income tax
Statement of financial position
182
9
Investments in subsidiaries and joint ventures
184
10
Deferred tax
184
11
Borrowings
Other required disclosures
185
12
Management remuneration
186
13
Contingent liabilities
186
14
Financial risk management
187
15
Interest rate risk
188
16
Liquidity risk
189
17
Currency risk
190
18
Related parties
191
19
Subsidiaries and joint ventures
PARENT COMPANY 176
Statement of profit or loss
1 January – 31 December
(DKKm) 2025 2024
Other operating income and expenses, net
5
34
Operating profit before other items
34
Other income and expenses, net
6
(66)
Operating
profit
(32)
Income from subsidiaries and joint ventures
9
1,541
Finance income
7
830
Finance costs
7
(807)
Profit before tax
1,532
Income tax
8
18
Net
profit
1,550
Statement of comprehensive income
1 January – 31 December
(DKKm) 2025 2024
Net
profit
1,550
Comprehensive income
1,550
PARENT COMPANY 177
Statement of cash flows
At 31 December
(DKKm) Note 2025 2024
Operating profit before other items
Changes in working capital
Other expenses paid
Interest received from companies within the ISS Group
Interest received, external
Interest paid to companies within the ISS Group
Interest paid, external
Income tax and joint taxation contribution received/(paid), net
34
32
(6)
742
45
(324)
(311)
47
Cash flow from operating activities
259
Capital increase in subsidiaries and joint ventures 9
Acquisitions 9
Changes in cash deposits and pledges
Divestment and liquidation of subsidiaries and joint ventures 9
Dividends received from subsidiaries and joint ventures 9
(9)
(26)
(187)
-
1,259
Cash flow from investing activities
1,037
Proceeds from issued bonds 11
Proceeds from Euro-Commercial Paper (ECP) programme, net 11
Repayment of bonds 11
Change in debt to companies within the ISS Group 11
Change in receivables from companies within the ISS Group 11
Other financial payments, net
Dividends paid to ISS World Services A/S
-
403
-
(912)
992
416
(5,600)
Cash flow from financing activities
(4,701)
Total cash flow
(3,405)
Cash and cash equivalents at 1 January
Total cash flow
Foreign exchange adjustments
3,422
(3,405)
(17)
Cash and cash equivalents at 31 December
-
PARENT COMPANY 178
Statement of financial position
At 31 December
(DKKm) Note 2025 2024
Assets
Investments in subsidiaries and joint ventures
9
23,167
Receivables from companies within the ISS Group
9,005
Cash deposits and pledges
187
Other financial assets
25
Deferred tax assets
10
28
Non-current assets
32,412
Receivables from companies within the ISS Group
1,737
Other receivables
217
Cash and cash equivalents
-
Current assets
1,954
Total assets
34,366
Equity and liability
Total equity
5,299
Borrowings
11
8,228
Non-current liabilities
8,228
Borrowings
11
20,421
Other liabilities
418
Current liabilities
20,839
Total liabilities
29,067
Total equity and liabilities
34,366
PARENT COMPANY 179
Statement of changes in equity
1 January – 31 December
(DKKm)
Share
capital
Retained
earnings Total
2025
Equity at 1 January
180
9,169
9,349
Net
profit
-
1,550
1,550
Comprehensive income
-
1,550
1,550
Dividends
-
(5,600)
(5,600)
Transactions with the owner
-
(5,600)
(5,600)
Changes in equity
-
(4,050)
(4,050)
Equity at 31 December
180
5,119
5,299
2024
Equity at 1 January
180
7,391
7,571
Net
profit
-
1,778
1,778
Comprehensive income
-
1,778
1,778
Changes in equity
-
1,778
1,778
Equity at 31 December
180
9,169
9,349
PARENT COMPANY 180
1
Material accounting policies
Basis of preparation
The financial statements of ISS Global A/S have been prepared in accordance with IFRS Accounting Standards as adopted by the EU
and additional requirements of the Danish Financial Statements Act. In addition, the consolidated financial statements have b een
prepared in compliance with the IFRS Accounting Standards issued by the IASB.
Changes in accounting policies
In 2025, no changes with material effect on recognition and measurement were implemented.
Material accounting policies
Income from subsidiaries and joint ventures comprises dividends, impairment losses, reversal of prior years' impairment losses and
gains and losses on divestment and liquidation of subsidiaries and joint ventures. Dividends are recognised in profit or loss in the
financial year in which the dividend is declared. If dividends declared exceed the total comprehensive income for the year, an
impairment test is performed.
Investments in subsidiaries and joint ventures are measured at cost. If there is indication of impairment, an impairment test is
performed as described in the accounting policies in 3.2 to the consolidated financial statements. If the recoverable amount is lower
than the cost, investments are written down to this lower value. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount, but only to the extent that the recoverable amount does not exceed the original
cost.
Tax As required by Danish legislation, ISS Global A/S is jointly taxed with all Danish resident subsidiaries. Joint taxation contributions
to/from jointly taxed companies are recognised in profit or loss in Income tax and in the statement of financial position in Receivables
from or Debt to companies within the ISS Group.
Companies which utilise tax losses in other companies pay joint taxation contribution to ISS A/S (the administration company)
equivalent to the tax base of the tax losses utilised. Companies whose tax losses are utilised by other companies receive joint taxation
contributions from ISS A/S equivalent to the tax base of the tax losses utilised (full absorption).
2
Significant estimates and judgements
Significant estimates and judgements relating to the applied accounting policies for ISS Global A/S are the same as for the Group to
the extent of similar accounting items, see Significant estimates and judgements, for a description. The specific risks for ISS Global A/S
are described in the notes to the financial statements of the parent company.
Investments in subsidiaries and joint ventures If there is identification of impairment, an impairment test is performed as described in
the accounting policies in 3.2 to the consolidated financial statements. The assessment of whether there is an indication of impairment
is based on both external and internal sources of information such as performance of the subsidiary, significant decline in m arket
values etc.
3
New regulations
New standards and interpretations not yet implemented are described in 8.3 to the consolidated financial statements.
4
Other operating income and expenses, net
Other operating income and expenses, net mainly comprise procurement bonuses, revaluation of receivables from companies within
the ISS Group and auditor and advisor fees.
PARENT COMPANY 181
5
Fees to auditors
(DKKm) 2025 2024
Statutory
audit
Other assurance services
1
0
1
0
Total
1
1
6
Other expenses
Other expenses mainly comprised a fair value adjustment of a contingent consideration associated with the transaction in Türkiye in
2021.
7
Finance income and costs
(DKKm) 2025 2024
Interest income from companies within the ISS Group
1)
734
949
Interest income on cash and cash equivalents
81
143
Fair value adjustment, interest rate swaps
15
42
Hedge ineffectiveness of interest rate swaps
-
12
Forward premium, currency swaps
-
11
Finance income
830
1,157
Interest expenses to companies within the ISS Group
1)
(410)
(508)
Interest expenses on borrowings
1)
(327)
(334)
Amortisation of financing fees (non-cash)
1)
(23)
(15)
Bank fees and commitment fees
(19)
(11)
Hedge ineffectiveness of interest rate swaps
(16)
-
Forward premium, currency swaps
(10)
-
Foreign exchange losses
(2)
(47)
Finance costs
(807)
(915)
1)
The total interest expensed, net determined on an amortised cost basis was DKK 26 million (2024: DKK 92 million).
Interest income from companies within the ISS Group decreased mainly due to lower intragroup receivables following the dividend
distribution in April 2025.
Interest income on cash and cash equivalents decreased compared to 2024 mainly driven by lower cash balances available for
interest-bearing investments following the EMTN redemption in July 2025 combined with lower interest rates compared to 2024.
Interest expenses to companies within the ISS Group decreased due to lower intragroup payables mainly as a consequence of ISS
Finance B.V.'s repayment of EUR 500 million of the Group's EMTNs on 7 July 2025.
Fair value adjustments, interest rate swaps related to instruments used for fair value hedging at Group level, but being ineffective
hedges in ISS Global A/S.
PARENT COMPANY 182
8
Income tax
Tax in profit or loss
(DKKm) 2025 2024
Current tax
18
40
Deferred tax
1
11
Other taxes
(15)
(20)
Prior year adjustments, net
14
(2)
Income tax
18
29
Effective tax rate
(DKKm) 2025 2024
Statutory income tax rate, Denmark
22.0 %
22.0 %
Income from subsidiaries and joint ventures
(22.0)%
(15.8)%
Non-tax-deductible expenses less non-taxable income
(1.2)%
(9.2)%
Other taxes
1.0 %
0.1%
Prior year adjustments, net
(1.0)%
1.2 %
Effective tax rate
(1.2%)
(1.7%)
9
Investment in subsidiaries and joint ventures
(DKKm) 2025 2024
Cost at 1 January
Additions
33,712
35
33,645
67
Cost at 31 December
33,747
33,712
Revaluations at 1 January
Impairment losses
Reversal of prior years' impairment losses
(10,862)
(3)
285
(11,163)
(6)
307
Revaluation at 31 December
(10,580)
(10,862)
Carrying amount at 31 December
23,167
22,850
Additions related to the acquisition of a subsidiary in ISS Romania for DKK 26 million, equivalent to cost. In addition, capital increases
were made in Malaysia of DKK 5 million and in Signal Arkitekter ApS of DKK 4 million. All transactions were cash transactions.
PARENT COMPANY 183
9
Investment in subsidiaries and joint ventures
(continued)
Impairment losses
The recoverable amount of investments in subsidiaries and joint ventures is determined on the basis of the value-in-use adjusted for
net debt. Value-in-use applied in the impairment test is equal to value-in-use established for the Group, see 3.2 to the consolidated
financial statements. Impairment losses recognised in 2025, see below.
(DKKm)
Impairment
losses
Recoverable
amount
Applied
discount rate,
net of tax
1)
The recoverable amount is based on equity at 31 December 2025.
ISS Finance B.V. is currently in voluntary liquidation. The liquidation is expected to be finalised during the first half of 2026 following the
expiry of the statutory creditor notification period under Dutch law. ISS Global A/S expects to receive approximately DKK 12 million in
liquidation proceeds.
Income from subsidiaries and joint ventures
(DKKm) 2025 2024
Dividends, received
1,259
1,253
Proceeds from divestment and liquidation of subsidiaries and joint ventures
-
3
Impairment losses
(3)
(6)
Reversal of prior years' impairment losses
285
307
Total
1,541
1,557
Reversal of prior years' impairment losses In 2025, losses of DKK 174 million on the investment in the Netherlands were reversed (2024:
DKK 132 million). The Dutch operation continued to deliver in line with the business case and it has been assessed that the increase in
the recoverable amount is sustainable. The discount rate, net of tax applied to determine the recoverable amount was 8.4% (20 24:
8.3%). Furthermore, losses of DKK 111 million (2024: DKK 175 million) related to ISS Lending A/S were reversed as equity continued to
increase in 2025.
Subsidiaries and joint ventures
For a list of significant directly owned subsidiaries and joint ventures, see note 19, Subsidiaries and joint ventures.
ISS Finance B.V.
1)
-
PARENT COMPANY 184
10
Deferred tax
Development in deferred tax
(DKKm)
2025 2024
Deferred tax assets/(liabilities), net at 1 January
Prior year adjustments, net
Tax on profit before tax
29
(2)
1
18
0
11
Deferred tax assets/(liabilities), net at 31 December
28
29
ISS Global A/S has no recognised or unrecognised deferred tax assets regarding tax losses carried forward.
11
Borrowings
(DKKm)
Note 2025 2024
Issued bonds
11,960
11,924
Euro-Commercial Paper (ECP) programme
408
-
Bank loans and overdrafts
392
(22)
Debt to companies within the ISS Group
15,889
16,871
Borrowings
28,649
28,773
Non-current liabilities
8,228
11,924
Current liabilities
20,421
16,849
Borrowings
28,649
28,773
Cash and cash equivalents
-
(3,422)
Receivables from companies within the ISS Group
(10,742)
(11,906)
Derivatives, net
26
(38)
Net debt
17,933
13,407
Euro-Commercial Paper (ECP) programme
On 27 May 2025, ISS established a Euro-Commercial Paper (ECP) programme to enhance financial flexibility and diversify the Group’s
funding structure, enabling more efficient and timely access to short-term financing.
The programme allows for the issuance of unsecured notes up to a maximum principal amount of EUR 900 million. Notes under the
programme have maturities of up to 364 days, typically shorter than six months. Each note carries a fixed interest rate for its
duration and may be issued either at a discount or on an interest-bearing basis, depending on market conditions.
S&P Global has assigned an A-2 short-term credit rating to the ECP programme.
PARENT COMPANY 185
11
Borrowings (continued)
Financing fees
At 31 December 2025, accumulated financing fees recognised in borrowings amounted to DKK 61 million (2024: DKK 76 million). The
decrease compared to last year was due to ordinary amortisation of DKK 23 million (2024: DKK 15 million) recognised in financ e
costs, partly offset by financing fees of DKK 8 million (2024: DKK 47 million) being capitalised.
Fair value
At 31 December 2025, the fair value of bonds was DKK 11,939 million (2024: DKK 11,781 million). The fair value of bonds was based
on the quoted market price on the Luxembourg Stock Exchange and measurement is categorised as Level 1 in the fair value
hierarchy due to the use of quoted market inputs.
Cash flow impact from changes in borrowings
(DKKm)
Note
Issued
bonds
European
Commercial
Papers
(ECP)
Debt to
companies
within the
ISS Group
Bank loans
and other
Total
2025
At 1 January
11,924
-
16,871
(22)
28,773
FX
adjustments
17
5
(70)
-
(48)
Cash flows
-
403
(912)
416
(93)
Fair value adjustments
2
-
-
-
2
Other
17
-
-
(2)
15
At 31 December
11,960
408
15,889
392
28,649
2024
At 1 January
10,413
- 17,176
15
27,604
FX
adjustments
5
- (84)
-
(79)
Cash flows
1,459
- (221)
(114)
1,124
Fair value adjustments
46
- -
-
46
Other
1
- -
77
78
At 31 December
11,924
- 16,871
(22)
28,773
12
Management remuneration
Key management personnel of the Group as defined in 6.1.1 to the consolidated financial statements are also considered key
management personnel of the parent.
Remuneration to key management personnel is specified in 6.1.1 to the consolidated financial statements.
PARENT COMPANY 186
13
Contingent liabilities
Senior facilities agreement
ISS Global A/S guarantees the borrowings under the unsecured senior facility agreement.
Guarantee related to the revolving credit facility
ISS Global A/S has issued a guarantee related to ISS companies’ possible draw on the revolving credit facility of EUR 900 million. The
facility was unused at 31 December 2025.
Parent company guarantees
ISS Global A/S has issued parent guarantees and performance bonds for various subsidiaries' current and future financial liabilities
and obligations under customer contracts and pension liabilities amounting to DKK 5.3 billion (2024: DKK 4.9 billion). Furthermore,
ISS Global A/S has issued parent guarantees for various subsidiaries' current and future financial liabilities towards the Group's main
car fleet provider.
Withholding taxes
ISS Global A/S is jointly taxed with all Danish resident subsidiaries. ISS Global A/S and the companies within the joint taxation have a
joint and unlimited liability of Danish corporate and withholding taxes related to dividends, interests and royalties. As per 31
December 2025 Danish corporate and withholding taxes within the joint taxation amounted to DKK 0 million (2024: DKK 0 million).
Any subsequent adjustments to Danish withholding taxes may change this joint and unlimited liability.
VAT
ISS Global A/S and certain Danish Group companies are jointly registered for VAT and are jointly liable for the payment hereof.
14
Financial risk management
ISS Global A/S's financial risks are managed centrally by Group Treasury based on the treasury policy approved by the Board of
Directors of ISS A/S. The objectives and policies for measuring and managing exposure to financial risks is described in 4.3 to the
consolidated financial statements. The risks specific to ISS Global A/S related to interest rate risk, liquidity risk and currency risk are
described below in note 15, 16 and 17, respectively.
Capital management
ISS Global A/S is owned indirectly by ISS A/S and therefore part of the ISS Group. Capital management is not monitored for ISS
Global A/S independently, but for the ISS Group as a whole as described in 4.1.1 to the consolidated financial statements.
Credit risk
At 31 December 2025, the exposure to credit risk related to cash and cash equivalents, loans to companies within the ISS Group and
other financial items was DKK 10,716 million (2024: DKK 15,366 million), see note 11, Borrowings. Exposure to credit risk on loans to
companies within the ISS Group is managed at Group level. As these loans are controlled by the Group and part of the Group’s
capital management, expected credit losses are considered to be insignificant.
PARENT COMPANY 187
15
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial
instruments. Exposure relates to bank loans, bonds or interest rate swaps with floating interest rates.
ISS Global A/S's exposure towards interest rates is illustrated below, where a breakdown of ISS Global A/S's borrowings in floating and
fixed rates is provided. The interest rate exposure to floating interest rates is primarily in EUR.
2025
2024
(DKKm)
Maturity
Fixed/
Floating
Nominal
interest rate
Nominal
value
Carrying
amount
Carrying
amount
1)
The carrying amount included the accumulated fair value adjustments at 31 December 2025
of the hedged items, see below.
2)
Weighted average.
Fair value hedge
(DKKm)
Nominal
amount
Carrying
amount
Accumulated
fair value adj.
Change
in FV
Interest rate swap
EUR 300 million
-
-
15
Interest rate swaps
EUR 250 million
(22)
(44)
(14)
EMTN 2029
EUR 500 million
3,751
(48)
(2)
At 31 December 2025, ISS Global A/S had interest rate swap agreements with a total nominal amount of EUR 250 million whereby ISS
Global A/S receives a fixed rate interest and pays a variable interest rate on the nominal amount. The swaps hedge the exposure to fair
value changes of the Group's fixed rate bonds and mature in 2029 in line with the maturity of the bonds. The interest rate swap
qualifies as fair value hedge, and hedge accounting is applied. For the interest rate swap maturing in 2025, as the fixed rat e bond
resided with ISS Finance B.V., the hedge is not effective in ISS Global A/S and the fair value adjustment was recognised in profit or loss,
gain of DKK 15 million.
In 2025, a cost of DKK 16 million was recognised in profit or loss related to the ineffective part of the interest rate swaps (2024: an
income of DKK 12 million).
Issued bonds
EMTNs (EUR 500 million)
2026 Fixed
0.88%
3,735
3,732
3,721
EMTNs (EUR 600 million)
2027 Fixed
1.50%
4,481
4,477
4,468
EMTNs (EUR 500 million)
1)
2029 Fixed
3.88%
3,734
3,751
3,735
11,950
11,960
11,924
Euro-commercial paper (EPC) (floating rate)
2)
34 days Fixed
2.2%
408
408
-
408
408
-
Bank loans and overdrafts
- Floating
-
-
392
(22)
Debt to companies within the ISS Group
- Floating
-
-
392
(22)
15,889
15,889
16,871
15,889
15,889
16,871
PARENT COMPANY 188
15
Interest rate risk (continued)
Interest rate sensitivity
An increase in relevant interest rates of 1%-point, with all other variables held constant, would have decreased net profit and equity by
DKK 69 million (2024: decreased by DKK 90 million).
The estimate was based on ISS Global A/S’s floating rate borrowings and receivables from companies within the ISS Group, i.e.
disregarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not representative for
the purpose of this analysis.
16
Liquidity risk
Liquidity risk results from ISS Global A/S's potential inability or difficulty in meeting the contractual obligations associated with its
financial liabilities due to insufficient liquidity.
Liquidity reserves
ISS Global A/S's liquidity reserves mainly consist of funds (cash and cash equivalents less not readily available or restricted cash) and
unused credit facilities. The level of cash and cash equivalents is typically highest at 31 December and not a representative level for the
rest of the year. At 31 December 2024, ISS Global A/S's liquidity reserves consisted of readily available liquid funds of DKK 0 million
(2024: DKK 3,422 million) and an unused revolving credit facility of DKK 6,718 million (2024: DKK 6,712 million) maturing in June 2030.
Financial liabilities - contractual maturities
Carrying
Contractual
< 1
1-2
2-3
3-4
4-5
> 5
(DKKm)
amount
cash flows
year
years
years
years
years
years
2025
Bonds, ECP and bank overdrafts
12,760
12,988
4,377
4,670
145
3,796
-
-
Debt to companies within the ISS Group
15,889
16,331
16,331
-
-
-
-
-
Trade payables and other
164
164
164
-
-
-
-
-
Derivatives
52
52
52
-
-
-
-
-
Total financial liabilities
28,865
29,535
20,924
4,670
145
3,796
-
-
2024
Bonds, ECP and bank overdrafts
11,902
12,798
244
3,955
4,664
144
3,791
-
Debt to companies within the ISS Group
16,871
17,334
17,334
-
-
-
-
-
Trade payables and other
160
160
160
-
-
-
-
-
Derivatives
30
30
30
-
-
-
-
-
Total financial liabilities
28,963
30,322
17,768
3,955
4,664
144
3,791
-
The contractual maturities of financial liabilities above are based on the undiscounted contractual cash flows, i.e. including interest
payments estimated based on market expectations at 31 December. The risk implied from the values reflects the one-sided scenario of
cash outflows only.
As at 31 December 2025, the duration of gross debt was approximately 0.8 years (2024: 1.2 years).
In addition to the financial liabilities shown above, ISS Global A/S has issued a financial guarantee related to ISS companies' possible
draw on the revolving credit facility of EUR 900 million maturing in June 2030. The facility was unused at 31 December 2025.
PARENT COMPANY 189
17
Currency risk
Currency risk arises from changes in exchange rates, and affects ISS Global A/S’s result, investments or value of financial instruments.
To a limited extent ISS Global A/S is exposed to currency risk on borrowings (external) that are denominated in currencies other than
DKK as well as intercompany loans to foreign subsidiaries as these are typically denominated in the functional currency of the
subsidiary.
At 31 December 2025, 80.6% (2024: 85.7%) of ISS Global A/S's borrowings were denominated in EUR or DKK.
Borrowings – foreign currency sensitivity
Sensitivity
(DKKm)
Currency
exposure
(nominal)
Currency
swaps
(contractual)
Exposure,
net
Increase
in FX
Profit
or loss Equity
2025
EUR/DKK
(12,643)
13,157
514
1%
5
5
TRY/DKK
1)
31
129
160
20%
32
32
USD/DKK
734
(844)
(110)
10%
(11)
(11)
Other/DKK
(1,474)
1,444
(30)
10%
(3)
(3)
Total
(13,352)
13,886
534
2024
EUR/DKK
(13,445)
10,737
(2,708)
1%
(27)
(27)
TRY/DKK
1)
47
223
270
30%
81
83
USD/DKK
902
(1,130)
(228)
10%
(23)
(23)
Other/DKK
(743)
1,146
403
10%
40
40
Total
(13,239)
10,976
(2,263)
1)
TRY is not hedged due to high costs of hedging. Currency swaps comprise internal derivatives.
A change in relevant currencies, with all other variables held constant, would have impacted profit or loss and equity with t he
amounts above. The analysis is based on the Group’s internal monitoring of currency exposure on borrowings, intercompany loans,
external long-term receivables, cash and cash equivalents.
PARENT COMPANY 190
18
Related parties
In addition to the description in note 7.3 to the consolidated financial statements of related parties and transactions with these, related
parties of ISS Global A/S comprise ISS World Services A/S and its subsidiaries, associates and joint ventures, see note 8.4 to the
consolidated financial statements.
In 2025, ISS Global A/S had the following transactions with other related parties, which were all made on market terms:
•
received/paid interest from/to companies within the ISS Group, see note 7, Finance income and costs.
•
debt to companies within the ISS Group is disclosed in note 11, Borrowings.
•
short-term receivable from subsidiaries was DKK 1,737 million (2024: DKK 1,967 million).
•
received/paid joint taxation contribution equal to 22% of taxable income to jointly taxed Danish resident subsidiaries.
•
received dividends in total of DKK 1,259 million (2024: DKK 1,253 million) from companies within the ISS Group, see note 9,
Investments in subsidiaries and joint ventures.
•
made a capital increases in Malaysia of DKK 5 million and in Signal Arkitekter ApS of DKK 4 million (2024: DKK 67 million in four
subsidiaries), see note 9, Investments in subsidiaries and joint ventures.
•
acquired a subsidiary in Romania for DKK 26 million, see note 9, Investments in subsidiaries and joint ventures.
•
paid dividend in total of DKK 5,600 million to ISS World Services A/S.
PARENT COMPANY 191
19
Subsidiaries and joint ventures
Directly owned subsidiaries and joint ventures
ISS Facility Services Australia Ltd.
Australia
100%
Pacific Invest December 2004 Pty Ltd.
Australia
100%
ISS Austria Holding GmbH
Austria
100%
ISS Facility Services N.V.
Belgium
100%
ISS
Chile
S.A.
Chile
100%
ISS International Czech Republic s.r.o.
Czech Republic
100%
ISS Facility Services A/S
Denmark
100%
ISS Global Management A/S
Denmark
100%
ISS Holding France A/S
Denmark
100%
ISS Lending A/S
Denmark
100%
1)
Signal Arkitekter ApS
Denmark
100%
ISS Palvelut Holding Oy
Finland
100%
ISS Facility Services GmbH
Germany
100%
ISS Greater China Ltd.
Hong Kong
100%
ISS International Hungary Kft.
Hungary
100%
ISS Facility Services India Pvt. Ltd.
India
100%
PT
ISS
Facility
Services
Indonesia
100%
PT
ISS
Indonesia
Indonesia
100%
ISS Ireland Holding Limited.
Ireland
100%
ISS Facility Services S.r.l.
Italy
100%
Nihon ISS KK
Japan
100%
ISS Lietuva UAB
Lithuania
100%
ISS International Malaysia Sdn Bhd
Malaysia
100%
ISS Centro América, S de RL de CV
Mexico
100%
ISS Holding Nederland B.V.
Netherlands
100%
ISS Finance B.V.
Netherlands
100%
ISS Holdings NZ Ltd.
New Zealand
100%
ISS Holding AS
Norway
100%
ISS Facility Services Sp. Z.o.o.
Poland
100%
ISS World Services Poland Sp. z o.o.
Poland
100%
ISS
Tech
Portugal
Portugal
100%
ISS Facility Services International SRL
Romania
100%
ISS Asia Pacific Pte. Ltd.
Singapore
100%
ISS Facility Services Pte. Ltd.
Singapore
100%
ISS Facility Services (Pty) Limited
South Africa
100%
Integrated Service Solutions S.L.
Spain
100%
ISS Facility Services Holding AB
Sweden
100%
ISS
Schweiz
AG
Switzerland
100%
ISS Tesis Yönetim Hizmetleri A.Ş.
Türkiye
50%
ISS UK Holding Limited.
UK
100%
1)
ISS Lending A/S applies §78a of the Danish Financial Statements Act.
Consequently, their annual report is prepared in accordance with the
requirements for Class B companies. ISS Global A/S is liable for all
ISS Lending A/S's current and future obligations.
INDEPENDENT AUDITOR’S REPORT 192
Management statement
The Board of Directors and the Executive Manage-
ment have today considered and adopted the An-
nual Report of ISS Global A/S for the financial year
2025.
The consolidated financial statements and Parent
company financial statements have been prepared
in accordance with IFRS Accounting Standards as
adopted by the EU and additional requirements of
the Danish Financial Statements Act. In addition,
the consolidated financial statements and Parent
company financial statements have been prepared
in compliance with the IFRS Accounting Standards
issued by the IASB. The Management review have
been prepared in accordance with the Danish Fi-
nancial Statements Act.
In our opinion, the consolidated financial state-
ments and the Parent company financial state-
ments give a true and fair view of the financial po-
sition at 31 December 2025 of the Group and the
Parent company and of the results of the Group’s
and the Parent company’s operations and cash
flows for the financial year 2025.
In our opinion, the Management review includes a
fair review of the development in the operations
and financial circumstances of the Group and the
Parent company, of the results for the year and of
the financial position of the Group and the Parent
company as well as a description of the most sig-
nificant risks and elements of uncertainty, which
the Group and the Parent company are facing.
Additionally, the sustainability statement, which is
part of Management review, has been prepared, in
all material respects, in accordance with paragraph
99a of the Danish Financial Statements Act. This in-
cludes compliance with the European Sustainabil-
ity Reporting Standards (ESRS), including that the
process carried out by the management to identify
the reported information (the Process) is in ac-
cordance with the description set out in the sub-
section titled Double Materiality Assessment in the
General section. Furthermore, disclosures within
EU Taxonomy in the Environmental section of the
sustainability statement are, in all material aspects,
in accordance with Article 8 of EU Regulation
2020/852 (the Taxonomy Regulation Reporting).
The sustainability statement includes forward-look-
ing statements based on disclosed assumptions
about events that may occur in the future and pos-
sible future actions by the Group. Actual outcomes
are likely to be different since anticipated events
frequently do not occur as expected.
We recommend that the Annual Report be
adopted at the annual general meeting on 16 April
2026.
Copenhagen, 6 March 2026
Executive Management
Kristoffer Lykke-Olesen
Board of Directors
Kasper Fangel Mads Holm
Chair
Liz Benison Bjørn Raasteen
INDEPENDENT AUDITOR’S REPORT 193
Independent Auditors’ Report
To the shareholder of ISS Global A/S
Our opinion
In our opinion, the Consolidated Financial State-
ments and the Parent Company Financial State-
ments give a true and fair view of the Group’s and
the Parent Company’s financial position at 31 De-
cember 2025 and of the results of the Group’s and
the Parent Company’s operations and cash flows for
the financial year 1 January to 31 December 2025 in
accordance with IFRS Accounting Standards as is-
sued by the International Accounting Standards
Board (‘IASB’) and in accordance with IFRS Account-
ing Standards as adopted by the EU and further re-
quirements in the Danish Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-
form Report to the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent
Company Financial Statements of ISS Global A/S for
the financial year 1 January to 31 December 2025
comprise statement of profit or loss, statement of
comprehensive income, statement of cash flows,
statement of financial position, statement of
changes in equity and notes, including material ac-
counting policy information for the Group as well as
for the Parent Company. Collectively referred to as
the “Financial Statements”.
Basis for opinion
We conducted our audit in accordance with Interna-
tional Standards on Auditing (ISAs) and the addi-
tional requirements applicable in Denmark. Our re-
sponsibilities under those standards and require-
ments are further described in the Auditor’s respon-
sibilities for the audit of the Financial Statements
section of our report.
We believe that the audit evidence we have ob-
tained is sufficient and appropriate to provide a ba-
sis for our opinion.
Independence
We are independent of the Group in accordance
with the International Ethics Standards Board for Ac-
countants’ International Code of Ethics for Profes-
sional Accountants (IESBA Code) as applicable to au-
dits of financial statements of public interest entities,
and the additional ethical requirements applicable in
Denmark. We have also fulfilled our other ethical re-
sponsibilities in accordance with these requirements
and the IESBA Code.
To the best of our knowledge and belief, prohibited
non-audit services referred to in Article 5(1) of Regu-
lation (EU) No 537/2014 were not provided.
Appointment
We were first appointed auditors of ISS Global A/S
on 10 April 2024 for the financial year 2024. We
have been reappointed annually by shareholder
resolution for a total period of uninterrupted en-
gagement of 2 years including the financial year
2025.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most signifi-
cance in our audit of the Financial Statements for
2025. These matters were addressed in the con-
text 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. For key audit matters, see the next page.
INDEPENDENT AUDITOR’S REPORT 194
INDEPENDENT AUDITOR’S REPORT 195
Statement on the Management Review
Management is responsible for the Management
Review.
Our opinion on the Financial Statements does not
cover the Management Review, and we do not as
part of the audit express any form of assurance
conclusion thereon.
In connection with our audit of the Financial State-
ments, our responsibility is to read the Manage-
ment Review and, in doing so, consider whether the
Management Review is materially inconsistent with
the Financial Statements or our knowledge ob-
tained in the audit, or otherwise appears to be ma-
terially misstated.
Moreover, we considered whether the Management
Review includes the disclosures required by the
Danish Financial Statements Act. This does not in-
clude the requirements in paragraph 99 a related to
the sustainability statement covered by the sepa-
rate auditor’s limited assurance report hereon.
Based on the work we have performed, in our view,
the Management Review is in accordance with the
Consolidated Financial Statements and the Parent
Company Financial Statements and has been pre-
pared in accordance with the requirements of the
Danish Financial Statements Act, except for the re-
quirements in paragraph 99 a related to the sus-
tainability statement, cf. above. We did not identify
any material misstatement in the Management Re-
view.
Management’s responsibilities for
the Financial Statements
Management is responsible for the preparation of
consolidated financial statements and parent com-
pany financial statements that give a true and fair
view in accordance with IFRS Accounting Standards
as issued by the International Accounting Standards
Board (‘IASB’) and in accordance with IFRS Account-
ing Standards as adopted by the EU and further re-
quirements in the Danish Financial Statements Act,
and for such internal control as Management deter-
mines is necessary to enable the preparation of fi-
nancial statements that are free from material mis-
statement, whether due to fraud or error.
In preparing the Financial Statements, Management
is responsible for assessing the Group’s and the
Parent Company’s ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern basis
of accounting unless Management either intends to
liquidate the Group or the Parent Company or to
cease operations, or has no realistic alternative but
to do so.
Auditor’s responsibilities for the audit
of the Financial Statements
Our objectives are to obtain reasonable assurance
about 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 ISAs
and the additional requirements applicable in Den-
mark will always detect a material misstatement
when it exists. Misstatements can arise from fraud
or error and are considered material if, individually
or in the aggregate, they could reasonably be ex-
pected to influence the economic decisions of users
taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the
additional requirements applicable in Denmark, we
exercise professional judgement and maintain pro-
fessional scepticism throughout the audit. We also:
•
Identify and assess the risks of material mis-
statement of the Financial Statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and ob-
tain audit evidence that is sufficient and appro-
priate to provide a basis for our opinion. The
risk of not detecting a material misstatement re-
sulting from fraud is higher than for one result-
ing from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresenta-
tions, or the override of internal control.
•
Obtain an understanding of internal control rel-
evant to the audit in order to design audit pro-
cedures that are appropriate in the circum-
stances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s
and the Parent Company’s internal control.
•
Evaluate the appropriateness of accounting poli-
cies used and the reasonableness of accounting
estimates and related disclosures made by Man-
agement.
INDEPENDENT AUDITOR’S REPORT 196
•
Conclude on the appropriateness of Manage-
ment’s use of the going concern basis of ac-
counting and based on the audit evidence ob-
tained, whether a material uncertainty exists re-
lated to events or conditions that may cast sig-
nificant doubt on the Group’s and the Parent
Company’s ability to continue as a going con-
cern. 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 conclu-
sions are based on the audit evidence obtained
up to the date of our auditor’s report. However,
future events or conditions may cause the
Group or the Parent Company to cease to con-
tinue as a going concern.
•
Evaluate the overall presentation, structure and
content of the Financial Statements, including
the disclosures, and whether the Financial State-
ments represent the underlying transactions
and events in a manner that gives a true and fair
view.
•
Plan and perform the group audit to obtain suf-
ficient 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 Consolidated Financial State-
ments. We are responsible for the direction, su-
pervision and review of the audit work per-
formed for purposes of the group audit. We re-
main solely responsible for our audit opinion.
We communicate with those charged with govern-
ance regarding, among other matters, the planned
scope and timing of the audit and significant audit
findings, including any significant deficiencies in in-
ternal control that we identify during our audit.
We also provide those charged with governance
with a statement that we have complied with rele-
vant ethical requirements regarding independence,
and to communicate with them all relationships and
other matters that may reasonably be thought to
bear on our independence and, where applicable,
actions taken to eliminate threats or safeguards ap-
plied.
From the matters communicated with those
charged with governance, we determine those mat-
ters 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.
Hellerup, 6 March 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
Rasmus Friis Jørgensen
State Authorised
Public Accountant
mne28705
Mads Melgaard
State Authorised
Public Accountant
mne34354
INDEPENDENT AUDITOR’S REPORT 197
To the stakeholders of ISS Global A/S
Limited assurance conclusion
We have conducted a limited assurance engagement
on the sustainability statement of ISS Global A/S (the
“Group”) included in the Management review (the
“Sustainability Statement”), page 29 – 88, for the fi-
nancial year 1 January – 31 December 2025.
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 Sus-
tainability Statement is not prepared, in all material
respects, in accordance with the Danish Financial
Statements Act paragraph 99 a, including:
•
compliance with the European Sustainability Re-
porting Standards (ESRS), including that the pro-
cess carried out by the management to identify
the information reported in the Sustainability
Statement (the “Process”) is in accordance with
the description set out in the section “Double
materiality assessment (DMA)”; and
•
compliance of the disclosures in the subsection
“EU Taxonomy” within the “Environmental” sec-
tion of the Sustainability Statement with Article 8
of EU Regulation 2020/852 (the “Taxonomy Reg-
ulation”).
Basis for conclusion
We conducted our limited assurance engagement in
accordance with International Standard on Assur-
ance Engagements (ISAE) 3000 (Revised), Assurance
engagements other than audits or reviews of histori-
cal financial information (“ISAE 3000 (Revised)”) and
the additional requirements applicable in Denmark.
The procedures in a limited assurance engagement
vary in nature and timing from, and are less in ex-
tent than for, a reasonable assurance engagement.
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 per-
formed.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard
are further described in the Auditor’s responsibilities
for the assurance engagement section of our report.
Our independence and quality management
We are independent of the Group in accordance
with the International Ethics Standards Board for Ac-
countants’ International Code of Ethics for Profes-
sional Accountants (IESBA Code) and the additional
ethical requirements applicable in Denmark. We
have also fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA
Code.
Our firm applies International Standard on Quality
Management 1, which requires the firm to design,
implement and operate a system of quality manage-
ment including policies or procedures regarding
compliance with ethical requirements, professional
standards and applicable legal and regulatory re-
quirements.
Other matters
The comparative information included in the Sus-
tainability Statement of the Group for the financial
year 2023 was not subject to an assurance engage-
ment. Our conclusion is not modified in respect of
this limitation of scope.
Management’s responsibilities for the
Sustainability statement
Management is responsible for designing and imple-
menting a process to identify the information re-
ported in the Sustainability Statement in accordance
with the ESRS and for disclosing this Process as in-
cluded in the section “Double materiality assessment
(DMA)” of the Sustainability Statement. This responsi-
bility includes:
•
understanding the context in which the Group’s
activities and business relationships take place
and developing an understanding of its affected
stakeholders;
Independent auditor’s limited assurance
report on the Sustainability Statement
INDEPENDENT AUDITOR’S REPORT 198
•
the identification of the actual and potential im-
pacts (both negative and positive) related to sus-
tainability matters, as well as risks and opportu-
nities that affect, or could reasonably be ex-
pected to affect, the Group’s financial position,
financial performance, cash flows, access to fi-
nance or cost of capital over the short-, medium-
or long-term;
•
the assessment of the materiality of the identi-
fied impacts, risks and opportunities related to
sustainability matters by selecting and applying
appropriate thresholds; and
•
making assumptions that are reasonable in the
circumstances.
Management is further responsible for the prepara-
tion of the Sustainability Statement, which includes
the information identified by the Process, in accord-
ance with the Danish Financial Statements Act para-
graph 99 a, including:
•
compliance with the ESRS;
•
preparing the disclosures as included in the
subsection “EU Taxonomy” within the “Environ-
mental” section of the Sustainability Statement,
in compliance with Article 8 of the Taxonomy
Regulation;
•
designing, implementing and maintaining such
internal control that management determines is
necessary to enable the preparation of the Sus-
tainability Statement that is free from material
misstatement, whether due to fraud or error;
and
•
the selection and application of appropriate sus-
tainability reporting methods and making as-
sumptions and estimates that are reasonable in
the circumstances.
Inherent limitations in preparing the
Sustainability Statement
In reporting forward-looking information in accord-
ance with ESRS, management is required to prepare
the forward-looking information on the basis of dis-
closed assumptions about events that may occur in
the future and possible future actions by the Group.
Actual outcomes are likely to be different since antic-
ipated events frequently do not occur as expected.
Auditor’s responsibilities for the assurance
engagement
Our responsibility is to plan and perform the assur-
ance engagement to obtain limited assurance about
whether the Sustainability Statement is free from
material misstatement, whether due to fraud or er-
ror, and to issue a limited assurance report that in-
cludes our conclusion. Misstatements can arise from
fraud or error and are considered material if, individ-
ually or in the aggregate, they could reasonably be
expected to influence decisions of users taken on
the basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in ac-
cordance with ISAE 3000 (Revised) we exercise pro-
fessional judgement and maintain professional scep-
ticism throughout the engagement.
Our responsibilities in respect of the Process in-
clude:
•
Obtaining an understanding of the Process, but
not for the purpose of providing a conclusion on
the effectiveness of the Process, including the
outcome of the Process;
•
Considering whether the information identified
addresses the applicable disclosure require-
ments of the ESRS; and
•
Designing and performing procedures to evalu-
ate whether the Process is consistent with the
Group’s description of its Process, as disclosed
in the section “Double materiality assessment
(DMA)” of the Sustainability Statement.
Our other responsibilities in respect of the Sustaina-
bility Statement include:
•
Identifying where material misstatements are
likely to arise, whether due to fraud or error; and
•
Designing and performing procedures respon-
sive to disclosures in the Sustainability State-
ment where material misstatements are likely to
arise. The risk of not detecting a material mis-
statement resulting from fraud is higher than
for one resulting from error, as fraud may in-
volve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control.
INDEPENDENT AUDITOR’S REPORT 199
Summary of the work performed
A limited assurance engagement involves perform-
ing procedures to obtain evidence about the Sus-
tainability Statement. The nature, timing and extent
of procedures selected depend on professional
judgement, including the identification of disclosures
where material misstatements are likely to arise,
whether due to fraud or error, in the Sustainability
Statement.
In conducting our limited assurance engagement,
with respect to the Process, we:
•
Obtaining an understanding of the Process, but
not for the purpose of providing a conclusion on
the effectiveness of the Process, including the
outcome of the Process;
•
Considering whether the information identified
addresses the applicable disclosure require-
ments of the ESRS; and
•
Designing and performing procedures to evalu-
ate whether the Process is consistent with the
Group’s description of its Process, as disclosed
in the section “Double materiality assessment
(DMA)” of the Sustainability Statement.
In conducting our limited assurance engagement,
with respect to the Sustainability Statement, we:
•
Obtained an understanding of the Group’s re-
porting processes relevant to the preparation of
its Sustainability Statement including the consol-
idation processes by obtaining an understand-
ing of the Group’s control environment, pro-
cesses and information systems relevant to the
preparation of the Sustainability Statement but
not evaluating the design of particular control
activities, obtaining evidence about their imple-
mentation or testing their operating effective-
ness;
•
Evaluated whether the information identified by
the Process is included in the Sustainability
Statement;
•
Evaluated whether the structure and the
presentation of the Sustainability Statement are
in accordance with the ESRS;
•
Performed inquiries of relevant personnel and
analytical procedures on selected information in
the Sustainability Statement;
•
Performed substantive assurance procedures
on selected information in the Sustainability
Statement;
•
Where applicable, compared disclosures in the
Sustainability Statement with the corresponding
disclosures in the financial statements and the
Management review;
•
Evaluated the methods, assumptions and data
for developing estimates and forward-looking
information; and
•
Obtained an understanding of the Group’s pro-
cess to identify taxonomy-eligible and taxon-
omyaligned economic activities and the corre-
sponding disclosures in the Sustainability State-
ment.
Hellerup, 6 March 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
Rasmus Friis Jørgensen
State Authorised
Public Accountant
mne28705
Mads Melgaard
State Authorised
Public Accountant
mne34354
FORWARD LOOKING STATEMENTS
200
Forward looking statements
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