HEALING
WITH HEAT
2024
HARVIA PLC
ANNUAL REPORT
CONTENTS
Harvia is shaping the
global sauna market
so that everyone
has a reason to
experience sauna
HARVIA IN BRIEF 3
KEY FIGURES 4
Q&A WITH CEO MATIAS JÄRNEFELT 5
STRATEGY 7
BUSINESS OPERATIONS IN 2024 13
SUSTAINABILITY IN 2024 17
HARVIA AS AN INVESTMENT 19
CORPORATE GOVERNANCE STATEMENT 2024 21
REMUNERATION REPORT 2024 38
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2024 49
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements 2
Harvia is the global leader in the sauna market in terms
of revenue and global reach. Since its establishment in
1950, Harvia has accumulated knowhow on all sauna
cultures and sauna types across the world. Around them,
the company has built a comprehensive oering, from
heaters and their components to full sauna solutions.
Harvia has Finnish roots but a global reach:
itsproducts are sold in approximately 90 countries.
In 2024, Harvia’s share of the sauna market was
estimated to be 5%, and the company’s share of
the sauna heater and sauna component market was
estimated to be over 20%.
Harvia delivers sauna experiences through various
forms of heat and cold. The company has two global
master brands, Harvia and EOS, complemented by
Great sauna experiences for everyone
HARVIA IN BRIEF
three independent regional and tactical brands:
Almost Heaven Saunas, ThermaSol, and Kirami. With
their extensive range of products, Harvia oers tailored
sauna solutions to consumers and professionals alike.
Harvia has grown strongly in the past years, both
organically and through acquisitions. Harvia’s revenue
in 2024 was EUR 175.2 million and adjusted operating
profit EUR 37.1 million, 21.2% of revenue.
Harvia employs around 700 professionals in Europe,
North America, and Asia. Approximately third of
the company’s employees work in Muurame, Central
Finland, where the company has its headquarters and
its largest production facilities.
The company’s shares are listed on the ocial list of
Nasdaq Helsinki in the Mid Cap segment (HARVIA).
REVENUE IN 2024
175.2M€
PERSONNEL IN 2024
696
3Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
50
40
30
20
10
0
33.736.547.324.4
22.4
26.4
21.1
22.4
Adjusted operating profit*, EUR million
Adjusted operating profit margin
* Adjusted by items aecting comparability
ADJUSTED OPERATING PROFIT AND
ADJUSTED OPERATING PROFIT MARGIN
20242023202220212020
37.1
21.2
50
40
30
20
10
0
0.83 0.51 1.8 0.6 1.45 0.64 1.25 0.68 1.30
Earnings per share Dividend per share
EARNINGS PER SHARE AND
DIVIDEND PER SHARE, EUR
20242023202220212020
2.0
1.5
1.0
0.5
0
* Dividend per share for 2024 is the dividend proposal of Harvia’s
Board of Directors to the 2025 Annual General Meeting.
0.75*
1.5
1.2
0.9
0.6
0.3
0
20242023202220212020
Leverage
1.1
0.8
1.3
0.9
1.3
NET DEBT AND LEVERAGE
57.237.654.543.831.9
Net debt, EUR million
50
40
30
20
10
0
REVENUE, EUR MILLION
175.2150.5172.4179.1109.1
20242023202220212020
200
150
100
50
0
Strong growth and profitability in 2024
KEY FIGURES
175.2
REVENUE, EUR MILLION
37.1
ADJUSTED OPERATING PROFIT, EUR MILLION
21.2%
ADJUSTED OPERATING PROFIT MARGIN
35.0
OPERATING FREE CASH FLOW, EUR MILLION
47.2%
EQUITY RATIO
4
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Q&A with CEO Matias Järnefelt
HOW WOULD YOU SUMMARIZE HARVIA’S YEAR
2024 FROM THE FINANCIAL POINT OF VIEW?
2024 was a strong year for Harvia. We succeeded in
turning our revenue back to growth after two years of
decline, with a double-digit increase of 16.4% to EUR
175.2 million. The positive development was driven
especially by the strong organic growth in North
America and APAC & MEA as well as the acquisition
of ThermaSol.
We met our long-term financial target level in 2024
also in terms of profitability and balance sheet.
Adjusted operating profit reached EUR 37.1 million,
making up 21.2% of the revenue. Leverage was 1.3 −
well below the company’s long-term financial target
of under 2.5.
I want to thank the entire team Harvia and our
partners for their good work through 2024.
HOW WAS HARVIA’S STRATEGY IMPLEMENTED
DURING THE YEAR?
Harvia updated its long-term financial targets and
strategy in May to reflect the company’s strategic
role, which the company defines as “Shaping the
global sauna market so that everyone has a reason
to experience sauna”. We want to be an active
market maker to grow the global sauna market
and create exciting innovations and sustainable
solutions while maintaining strong profitability and
operational performance.
The execution of the updated strategy progressed
well during the year. The acquisition of U.S.
steam solutions manufacturer ThermaSol in July
strengthened our position in North America and
increased our capabilities especially in steam and in
digital solutions. The acquisition is also well aligned
with our strategy and aim of being an active industry
consolidator. The integration of ThermaSol has
started o well, and we are eager to capture all the
growth opportunities and cost synergies that the
acquisition is estimated to bring us.
We want to be an
active market maker to
grow the global sauna
market and create
exciting innovations and
sustainable solutions.”
“
5Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
WHAT WERE THE KEY CHARACTERISTICS OF
HARVIA’S BUSINESS OPERATIONS IN 2024?
The market environment remained mixed during the
year. The market conditions were favorable in North
America and APAC & MEA, where the awareness of
sauna and its health benefits continued to increase.
In Continental Europe, the market remained rather
challenging despite positive development especially
in the professional and more high-end segments. In
Northern Europe, the market has been dicult for a
long time. This is true particularly for Finland, where
low activity in the construction and housing market
as well as weak consumer confidence put significant
pressure on our sales throughout the year.
Throughout the year, Harvia’s business operations
responded well to the mixed market conditions and
changes in the operating environment, including the
high demand in North America especially during the
winter season and political strikes in Finland during the
first quarter. To meet market demand, we deliberately
increased our inventories in the fall ahead of the high-
demand winter season especially in North America and
continued to build up the inventory until November.
In the course of the year, we made several investments
into our production facilities to further improve our
operational eciency and production capacity. We
also continued to strengthen our organization and
drive portfolio development. During the fourth quarter,
we launched several new products to the market, and
I am glad to see that our innovation pipeline keeps
developing well.
LOOKING FORWARD – HOW IS HARVIA
POSITIONEDFOR THE YEAR 2025?
In 2025, we will remain fully focused on driving
profitable growth and strengthening our position as
the global sauna market leader. Reaching our long-
term profitability target of over 20% adjusted EBIT
is very important for us. North America and APAC &
MEA continue to be our largest growth drivers and
will be the key priority of our growth eorts also in
the future. In Europe, we are working hard to achieve
higher levels of sales, even if the market conditions
have not provided us with any tailwind. Strengthening
our portfolio and digital capabilities has a key role in
building more innovative and sustainable oering and
securing our future success.
As a global company, we are closely monitoring
geopolitical and macroeconomic developments,
such as tightening trade policies. Increasing taris
in the United States may also have an impact on
Harvia. However, Harvia is well positioned in the
United States, especially compared to many of our
competitors, as a clear majority of end products
we sell in the United States are also manufactured
domestically. This reduces Harvia’s exposure to
potential U.S. taris.
Year 2025 is the 75th anniversary year for Harvia.
We are proud of our rich heritage as a pioneer in the
sauna business and are looking forward to the next
chapter of Harvia’s development. Harvia starts the
year from an excellent position.
6
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
STRATEGY
To further accelerate growth, Harvia updated its strategic focus areas and
long-term financial targets in May 2024. During the year, Harvia successfully executed
the updated strategy, driving profitable growth and strengthening its foothold
especially outside Europe in North America and APAC & MEA.
Harvia has the leading position in the global sauna market.
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements 7
Industry trends shaping the market
Regular sauna bathing several
times a week has been
scientifically proven to reduce
the risk of cardiovascular
diseases, pulmonary disease,
stroke, and dementia, among
others. Sauna bathing also
relaxes muscles, improves
sleep quality, and nourishes
the skin.
In line with its Healing with
heat philosophy, Harvia is
developing sauna experiences
that have targeted
wellness benefits.
Harvia aims to continuously
oer people versatile reasons
to go to sauna (such as better
sleep, health, entertainment,
relaxation, beauty, and
enjoyment), and inspire them
through exciting innovations.
Sauna is gaining momentum
in popular culture from the
United States to Asia, with
both public and private use
ofsauna increasing.
Through its leading brands,
Harvia can educate and excite
consumers and lead the sauna
movement globally, also in
digital channels.
The sauna and the sauna
experience are becoming
increasingly digital, oering
Harvia opportunities related
to, for instance, in-sauna
entertainment. IoT solutions
for buildings and homes also
create new possibilities for
the energy eciency of the
sauna and the promotion
of wellbeing.
Harvia has a leading role in
the sauna market and strong
technological expertise to
respond to the increased
customer expectations
for environmental and
social responsibility.
Harvia’s ambition is to drive
the sustainability agenda
of the whole industry. The
company is continuously
improving the sustainability
of sauna experiences with a
safe and warm community
of employees, customers
and partners.
Development pace of the
industry is expected to
increase, which oers new
opportunities for Harvia.
Taking an active consolidator
role in the industry through
M&A is a strategic focus area
for the company.
Harvia has identified six key drivers that impact the sauna industry. These trends are expected
to drive market demand and oer growth opportunities for Harvia also in the coming years.
Wellness
and health
Experience
economy
Growing
awareness
Technology Sustainability Market
consolidation
People are willing to invest
in better and longer lives.
Consumers globally are
willing to spend more on
experiences that enrich
their lives.
Awareness of sauna and its
health benefits is growing.
Innovations merging sauna
and technology provide
newpossibilities.
Increasing demand oers
an opportunity to innovate
and commercialize
responsible and safe
sauna solutions.
The fragmented sauna
market is consolidating
as large players also from
adjacent industries are
entering the business.
8Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Since its initial public oering in 2018, Harvia has nearly
tripled its size in revenue to EUR 175.2 million in 2024,
while consistently delivering strong profitability.
In May 2024, Harvia updated its long-term financial
targets and strategy to reflect the company’s strategic
role, which the company defines as “Shaping the
global sauna market so that everyone has a reason to
experience sauna”. This means that Harvia wants to be
an active market maker and create exciting innovations
and more sustainable solutions for all markets, sauna
cultures and sauna types.
To enhance strategy execution, Harvia also changed
its organizational structure as of 1 January. The aim
is to strengthen regional teams to improve customer
orientation and cross-sell activities, helping to
drive organic growth and supporting R&D. The new
organization consists of four geographical sales regions
and five Group functions. The group functions help to
deliver synergies across the Group and further optimize
ways of working. After a year, the benefits of the new
structure have been realized especially in clearer sales
responsibilities and processes, Group-level purchases as
well as deepening collaboration and joint development
projects across operational units and geographies.
Strategy updated to further accelerate growth
Harvia’s updated strategic focus areas are:
•
Delivering the full sauna experience
•
Winning in strategically important markets
•
Leading in key channels
•
Best-in-class operations and great people.
9Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Executing strategic focus areas in 2024
To support its growth ambition, Harvia focuses on increasing the
sales of comprehensive systems and solutions. Harvia also aims to
make steam and infrared saunas a more sizeable part of Harvia’s
business, both organically and through M&A.
In 2024, the revenue of steam product category more than doubled
from EUR 4.6 million in 2023 to EUR 10.7 million in 2024, mainly
driven by the acquisition of ThermaSol. Harvia’s innovation pipeline
also delivered new, exciting products to the market, such as the
world’s first solar-powered outdoor electric sauna, Kirami FinVision
Tile. Read more about the ThermaSol acquisition onpage 12.
The company aims to maintain strong growth across
price points, categories, and channels, supported
by investments in expanding the operations at the
Lewisburg factory, among others.
In 2024, Harvia’s growth eorts focused on selected
high-potential markets in North America and APAC &
MEA, such as Japan and Australia. The success of Harvia’s
eorts was reflected in the strong revenue growth of
these regions – 42.8% and 51.8%, respectively. Read more
about Harvia’s business in its key markets on pages 15–16.
Harvia’s markets have dierent sauna cultures and
product mixes and therefore also dierent sales
channels and networks.
Good progress was made in sharpening Harvia
Group’s channel strategy and fitting its portfolio
to dierent channels in 2024. The organizational
structure that was implemented at the start of
2024 has also streamlined sales processes through
strengthened Group integration.
Ecient operations provide a significant competitive
advantage for Harvia and form the basis for the success
of its other strategic focus areas. Eciency is sought by
scaling up and automating operations while expanding
capacity in the strongly growing regions, such as
North America.
In 2024, several investments were made to improve
productivity and support sales in multiple locations.
Overall integration within Harvia Group progressed
through, for example, common IT landscape,
purchasing, and processes. The increased collaboration
between production units and being part of a larger
Group have also improved employee satisfaction. Read
more about Harvia’s operations in 2024 on page 14.
Leading in key channels
byfurther developing Harvia’s channel strategy
and the Group-level sales and customer service
capabilities to drive synergies andcross-sell
opportunities.
Winning in strategically
important markets
by driving growth in markets outside Europe in North
America and the APAC & MEA region. In Europe, the
company focuses on further strengthening itsposition
and capturinggrowth.
Delivering the full sauna experience
bymaking sauna a broader experience, oering a complete
portfolio of all sauna types, cold plunges, hot tubs, and other
sauna related extensions, andconstantly bringing new, exciting
innovations tothe market.
Best-in-class operations & great people
by continuously improving productivity to ensure profitability,by
developing employee capabilities as well as deepening integration
within Harvia Group todrive productivity and growth.
10Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia’s main priority continues to be to drive profitable
growth, especially in North America and APAC & MEA,
where the company sees a large potential for Harvia
especially in markets such as Japan, China and Australia.
In Europe, focus is on improving sales performance in
the challenging market.
In addition to capitalizing on organic growth opportu-
nities, Harvia wants to take an active consolidator role
in the industry through M&A. In July, Harvia advanced
this strategic objective by acquiring U.S. steam solutions
manufacturer ThermaSol and will continue to seek
opportunities for M&As,for instance, to grow in infrared
and steam, build digital capabilities, and strengthen its
position in key markets, especially outside Europe.
Investments will be made into increasing automation,
improving eciency, and optimizing the storage and
logistics network. Harvia also invests in R&D to launch
new products and solutions especially in the sauna
category. In addition, a hybrid thermal power plant will
be constructed at EOS’s factory in Driedorf, Germany,
supporting Harvia’s objective to reduce the greenhouse
gas emissions of its operations. The investments are
expected to increase from the 2024 level, mainly due
to the planned expansion of production and logistics
capacity in the United States.
Strategic priorities in 2025
HARVIA HAS SET LONG-TERM FINANCIAL
TARGETS RELATED TO GROWTH, PROFITABILITY,
AND LEVERAGE
In May 2024, Harvia’s long-term financial targets were
adjusted to reflect the company’s growth ambitions.
Harvia targets
• an average annual revenue growth of 10%
• an adjusted operating profit margin exceeding 20%
• a net debt/adjusted EBITDA below 2.5x.
Harvia does not publish short-term financial targets.
Harvia reached its long-term financial targets in 2024.
The company’s revenue increased by 16.4% from 2023,
adjusted operating profit margin was once again strong
at 21.2%, and net debt to adjusted EBITDA ratio was 1.3.
The revenue increase was driven especially by both
organic and inorganic growth in North America.
Revenue increased significantly in all product groups
except spare parts and services. The ThermaSol
acquisition supported the high growth of steam
product sales. In the saunas and Scandinavian hot tubs
product group, the growth in North America supported
especially sauna room sales.
11
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
In July 2024, Harvia acquired ThermaSol, a leading
U.S. manufacturer of high-end steam showers and
steam rooms. The acquisition complements Harvia
Group’s sauna oering in the attractive steam segment,
bolstering its leading position as a global sauna
solutions provider.
Harvia Group has grown its presence and business in
North America systematically in the past five years both
organically and through M&A, increasing its sales from
EUR 11.8 million in 2019 to EUR 62.0 million in 2024.
Boosted by the ThermaSol acquisition, North America’s
share of Harvia’s total revenue increased to 35.4%
in 2024.
CREATING SYNERGIES
Established in 1958, ThermaSol is a steam specialist
company with a reputation for premium products and
innovation. A major player in the U.S. residential steam
market, ThermaSol oers a range of products from
steam generators and shower heads to digital control
units and smart shower components.
The acquisition of ThermaSol added another strong
brand to Harvia Group’s portfolio, creating new revenue
stream opportunities. It is also expected to create
annual synergies of approximately EUR 1.7 million by
the end of 2027, generated by sourcing and logistics,
marketing, cross-sell, distribution, and common
management within Harvia US companies.
Full steam ahead in the U.S. market
with ThermaSol acquisition
The acquisition of ThermaSol has
further strengthened our position
in North America and advanced our
strategic goal of being an active industry
consolidator. By combining the expertise
and resources of Harvia and ThermaSol,
we are able to offer our customers an
even wider range of innovative and high-
quality wellness and sauna solutions.”
- CEO Matias Järnefelt
”
Integrating ThermaSol into Harvia Group has started
well, and there is a significant potential in the
companies leveraging each other’s strengths:
• Expanding the steam oering: Harvia’s global
reach and manufacturing capabilities will help bring
ThermaSol’s high-quality steam products to a wider
audience and across dierent price points.
• Stronger presence in the United States: ThermaSol
is located near Austin, Texas, which provides
an excellent hub for Harvia Group’s commercial
operations in the United States and strengthens the
connection with customers in the region, supported
by ThermaSol’s wide distribution network.
• Purchases: ThermaSol can utilize Harvia’s global
purchasing expertise, scale and networks to
drive synergies.
• Digital innovation: ThermaSol’s expertise in digital
control units and smart technology will help to oer
customers even more advanced and personalized
wellness experiences.
The North American sauna market size was estimated
to be USD 800 million in 2023, with steam solutions
having approximately 20% market share. The U.S.
steam market is forecast to grow by approximately
5%per year through 2028*.
* Source: International management consultancy market study in 2024, Harvia management estimate
The acquisition of ThermaSol gives Harvia essential
market presence in the region and capabilities to
grow and develop its steam business eectively
also going forward. The revenue of steam products
more than doubled from EUR 4.6 million in 2023 to
EUR 10.7 million in 2024, in line with the company’s
strategic objective of making steam saunas a more
sizeable part of its business.
12
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Global reach with Finnish roots
BUSINESS OPERATIONS
NORTH AMERICA
Revenue EUR 62.0 million (+42.8%)
145 employees
Production facilities in West Virginia
and Texas
The revenue figures
are for 2024 and the
number of personnel
for the year-end 2024.
NORTHERN EUROPE
Revenue EUR 43.8 million (-4.8%)
263 employees
Three production facilities and
headquarters in Finland,
one production facility in Estonia
CONTINENTAL EUROPE
Revenue EUR 52.7 million (+5.1%)
232 employees
Production facilities in Germany,
Italy and Romania
APAC & MEA
Revenue EUR 16.7 million (+51.8%)
56 employees
One production facility in China
13Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
The year 2024 in the sauna market was characterized
by mixed development between regions. In North
America and Asia-Pacific, the sauna market has
developed favorably for the past several years. This
development continued also in 2024. On the other hand,
while inflation stabilized and supply chain disruptions
decreased globally, the market conditions remained
challenging in many key European countries. The slow
economic growth and low consumer confidence in
especially Finland but also, for example, in Germany,
was reflected in the demand in the sauna market.
These dierences were also visible in sales development
and product mix between the regions during the year.
However, Harvia was able to scale its operations and
respond quickly to changing conditions. The strong
growth in North America, for example, was supported
Mixed operating environment across the sauna markets
by supply chain and logistics planning as well as
increasing inventories during the summer and autumn
toprepare for the high-demand winter season.
Harvia continued to develop its sales and operations
planning (S&OP) process in 2024 to enable more accurate
sales and demand forecasts, used to optimize production
and inventories. The new organizational structure that
was adopted at the beginning of the year has increased
collaboration and integration between Group companies
in terms of sales, investments, purchases, and IT processes,
resulting in improved eciency and flexibility in operations.
Increased sales volumes, good sales mix, and the
successful actions in supply chain management resulted
ina strong adjusted operating profit margin of 21.2% in
2024,in line with Harvia’s long-term financial targets.
INVESTMENTS IN FUTURE GROWTH
Harvia continued to develop its operations in 2024
to maintain strong profitability and support growth.
To secure strategic growth opportunities in the North
American market, Harvia purchased 8.7 hectares of
land around the production facility in Lewisburg,
West Virginia, and the expansion of the facility is
currently underway. Additionally, the company made
several investments in its other production facilities
during the year, including a layout change and ramp-
up of an upgraded, more automated production line
for woodburning heaters in the Muurame factory
in Finland.
Harvia also continued to optimize its supply chain.
Warehouse management was streamlined and
centralized in Muurame, Sweden, and Austria, and
development projects are planned to improve logistics
planning and warehouse management further both
in Europe as well as in growth markets in the United
States and Asia.
In addition, assembly of certain electronics components
was moved from a subcontractor to Harvia Group’s
factory in Italy. Production of some sauna accessories
was moved to the Group’s production facility in China,
while the production of certain heaters will be moved
from China to Muurame in 2025. Harvia will continue
to focus on optimizing productivity and cost-eciency
in 2025 by reviewing and defining the role of each of
its production facilities in the supply chain and the key
competencies needed.
SHARE OF REVENUE BY PRODUCT GROUP
53.6% (54.6)
26.7% (28.5)
6.1% (3.0)
6.7% (8.0)
6.9% (5.9)
175.2
MEUR
Heating equipment*
Saunas and Scandinavian hot tubs
Steam products**
Accessories and heater stones
Spare parts and services
* Sauna heaters,
control units,
IR components
** Including steam
generators and other
steam equipment
SHARE OF REVENUE BY SALES REGION
25.0% (30.5)
30.1% (33.3)
35.4% (28.9)
9.5% (7.3)
175.2
MEUR
Northern Europe
Continental Europe
North America
APAC & MEA
14Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
NORTHERN EUROPE
Traditional saunas make up almost the entire
market in Northern Europe, the key region for
Harvia’s woodburning heaters. Harvia’s home
market, Finland has the highest number of saunas
per capita in the world, over one sauna per
two persons.
CONTINENTAL EUROPE
While an established sauna market, Continental
Europe has a larger professional and full solutions
market and higher price points than Northern
Europe. The region also has a sizeable infrared
and steam sauna market.
The sauna market in Continental Europe has been
challenging for more than two years, followed
by the Russian invasion of Ukraine and the weak
High interest rates, challenges in the construction
sector and weak consumer confidence have
kept the market environment challenging for
long, especially in Finland. Asa result, sales in
Northern Europe fell by 4.8% in 2024 compared
to the previous year. However, Harvia defended
well its market share in the region, and active
measures were taken to strengthen distribution
especially in Sweden, where the sales developed
significantly better.
economic development. In 2024, the market conditions
gradually improved, even if the market has not yet fully
recovered. The macroeconomic conditions in Germany
have remained challenging, which continued to aect
the market demand also in the sauna industry. However,
Harvia succeeded in growing its sales in the region by 5.1%
year-on-year, with EOS branded products that are aimed at
the professional and more high-end segments driving the
growth in the second half of the year.
Strong growth outside Europe
Harvia's four sales regions: Northern Europe, Continental Europe, North America, APAC & MEA
15Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
NORTH AMERICA
According to Harvia’s estimate, the size of the North
American sauna market is approximately 800 million U.S.
dollars. With an installed base of over 1 million saunas,
the sauna penetration in North America is still low when
compared to many mature sauna markets. Infrared saunas
are the most popular sauna type in North America in terms
of units sold, but also traditional saunas and steam saunas
have a significant share of the market. The high-potential
market continued solid growth in 2024, supported by
increasing awareness of sauna and its health benefits.
APAC & MEA
In Asia-Pacific, Middle East and Africa, the
characteristics of the sauna market vary
significantly between countries. While sauna
penetration is still slow, there are several
attractive, booming markets such as Japan
and Australia, with their own sauna cultures.
All sauna types are present in the region, and
demand is focused especially oncommercial
sauna solutions.
In 2024, Harvia achieved good sales
performance in North America in all product
groups, butgrowth was particularly strong in
sales of heaters and sauna components. The
acquisition of ThermaSol in July increased
especially steam product sales, delivering on
Harvia’s growth strategy. The company’s largest
sales region by revenue, North America’s sales
increased by42.8% in 2024 compared to the
previous year.
Overall, the market enjoyed good growth in 2024
despite some economic challenges in certain
key countries, such as in China. The visibility and
popularity of Harvia’s products increased in the
region across the Group’s brands. Harvia continued
systematic work in APAC & MEA during the year
to drive growth in the strategically most important
regional markets and achieved significant results
with 51.8% increase in revenue year-on-year.
16Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Our sustainability work delivers business impact
#1 FOR GOOD & HEALTHY LIVING
Harvia creates a positive impact on the health and
longevity for people with its oering. We actively share
science backed information on the health benefits of
heat and promote the healthy regimen of using sauna
3times per week for at least 15 minutes.
Promoting the health benefits of sauna creates demand
and inspires people across the world to test and enjoy
our products and solutions. Developing innovations
that enhance health and well-being, along with energy-
ecient technologies, drives sales and positions Harvia
as a leader in innovation and sustainable solutions.
Harvia always evaluates and considers the health and
safety impact of our products and technologies. We
guide our customers and end-users in the right use of
our products for optimal health benefit and experience.
In 2024, Harvia launched the “Let’s sauna” booklet, a
comprehensive introduction to sauna, oering valuable
tips and insights into the sauna experience, the health
benefits and the science behind sauna’s positive
eects. The booklet is available both online and as a
printed booklet.
#2 FOR SUSTAINABLE EXPERIENCES & ENJOYMENT
Harvia actively guides the end-users in responsible
consumption of its products. Investing in research and
development of products aims at reducing emissions
and optimizing energy consumption. The company
uses sustainable and sustainably sourced materials.
Harvia’s products are designed to be safe to use,
serviceable and long-lasting. By oering safe and
reliable products and solutions, we build trust and
ensure long-term customer relationships. To enhance
the overall customer experience, we provide guidance
on product selection and on how to use the sauna in
the most energy ecient way. In 2024, we created a
series of educational videos on topics such as what to
consider when choosing a sauna heater for your home
sauna and how to use the MyHarvia mobile application.
Focusing on the sustainability characteristics of our
products not only help reduce energy consumption
and emissions but are an important factor from cost
saving point of view. In 2024, Harvia launched the
world’s first solar-powered outdoor electric sauna. This
Kirami FinVision Tile sauna is a great example of the
work we are doing to create more energy-ecient and
sustainable sauna solutions. The sauna can be heated
with a traditional electric heater, but it is also available
as the market’s first industrially manufactured option
which includes a solar panel and a battery. Eective
thermal insulation and triple-pane windows and doors
make it possible to install a heater with less power
significantly enhancing the sauna’s energy eciency.
#3 FOR MINIMIZING ENVIRONMENTAL FOOTPRINT
Harvia strives to minimize its environmental footprint
tolimit global warming and contribute to global eorts
in safeguarding the environment.
Reaching our target requires systematic actions
in several areas, such as energy use, logistics, and
purchasing. We use renewable or emission-free
energy in our production and oces where feasible.
Optimizing logistics of both raw materials and products
helps to reduce transportation emissions. Streamlining
our processes from purchases to production has helped
us to optimize material use, improving productivity
and reducing waste, the eect being reduction in
operational costs.
In 2024, we conducted several actions that have
already reduced or will reduce the greenhouse gas
emissions in the near future. Our online measurement
Harvia’s sustainability program for 2022–2025 defines the company’s four sustainability commitments
which promote both people and the planet. In 2024, Harvia prioritized the most relevant
United Nation’s Sustainability Development Goals (SDGs) associated with those commitments.
17Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Preparing the Sustainability Statement
according to EU’s Corporate Sustainability
Reporting Directive was a major effort
at Harvia throughout the year. The work
included creating or reviewing policies and
procedures, as well as promoting smooth
data collection processes. Sustainability has
always been an important part of Harvia’s
business and the basis for the company’s
good financial performance. Preparing of
the Sustainability Statement revealed that
Harvia has been doing the right things when
it comes to sustainability, which supports the
company’s ambition to drive the sustainability
agenda of the whole industry.
of energy consumption revealed that the energy system
in the Kirami site in Finland was inecient. It was
replaced with heat pump technology, which is more
energy ecient and allows us to phase out the use of
light fuel oil.
In June 2024, we signed a letter of intent to replace
the oil heating with a hybrid thermal plant at the EOS
factory in Germany during 2025. This will reduce the
Scope 1 GHG emissions of the entire Harvia Group by
approximately 30%.
Harvia is continuously investing in changing lighting in
its facilities to more energy ecient LED lighting, which
is on average approximately 70−90% more energy-
ecient than traditional lighting.
Harvia’s Group-level Scope 1 CO₂ emissions in 2024
were 1,027 tCO₂ (947) and Scope 2 market-based
emissions 1,401 tCO₂ (923). Total market-based
emissions increased by 30% compared to 2023 due
to increased production and the lack of availability
in emission-free energy in Harvia's sites in the United
States and China. More detailed emissions data can be
found in Harvia’s CSRD report.
Harvia’s solar panels at the Muurame factory produced
125 MWh (124.3) of electric energy in 2024.
#4 FOR SAFE AND WARM COMMUNITY
Harvia believes that collaborating and supporting
each other results in wellbeing and long relationships
with everyone from our employees to customers
and partners. We look after the safety, equality, and
competence development of our people.
Developing workplace safety and investing in
employee well-being improve employee confidence
and productivity. Eective governance, business
ethics, andsustainability practices build trust among
dierent stakeholders and make Harvia an appealing
company to invest in.
Harvia takes continuous measures to ensure the health
and wellbeing of its personnel. The company strives
for zero accidents. There were no serious occupational
accidents during the reporting period and the lost
time injury frequency decreased by 27.8% compared
to 2023.
Harvia’s employee satisfaction survey included the
measuring of eNPS (employee Net Promoter Score)
for the first time in 2024. The eNPS was 10, which
gives the company a benchmark for the future.
The overall response rate declined 10 percentage
points to 56%. According to the survey, Harvia
employees see the company’s future brighter than
in 2023. Areas of development included further
improving communication, workload management,
wellbeing, andrecognition of employee performance,
among others.
A customer satisfaction survey was conducted
across the Group for the second time in 2024. The
survey was sent to over 11,000 reseller customers.
The response rate was 7%. Overall, Harvia Group’s
customer satisfaction is at a very high level, but there
was variation between the brands and markets. The
Group’s average Net Promoter Score (NPS) was 71
(2023: 69).
GOAL 3: GOOD HEALTH AND WELL-BEING
Ensure healthy lives and promote well-being
for all at all ages
GOAL 8: DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable growth,
full and productive employment and decent work for all
GOAL 9: INDUSTRY, INNOVATION AND INFRASTUCTURE
Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
GOAL 12: RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns
GOAL 13: CLIMATE ACTION
Take urgent action to combat climate change and
its impacts
5 PRIORITIZED SDGS IN HARVIA GROUP’S
SUSTAINABILITY PROGRAM 2022–2025
18Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia as an investment
#2 #3
Growing
global market
Leading global player
in the sauna market
Strong brands, comprehensive
product oering and
future innovations
• Market potential is significant: the global sauna
and spa market is approximately 3.5 billion euros
and highly fragmented.
• The historical average growth has been 5% per
year. Due to increasing awareness of sauna and
its health benefits the growth is forecasted to
beannually over 5% for the next five years.
• The sauna and spa market has been traditionally
resilient: this has been true especially for the
more mature sauna markets, as the share of
replacement demand in the traditional sauna
market is high.
• Harvia’s share of the global sauna and spa market
is about 5% and over 20% in sauna heaters and
components (management estimate).
• Harvia is the leading player in its main markets:
the key markets include North America (35.4%
ofrevenue in 2024), Continental Europe (30.1%)
and Northern Europe (25.0%).
• Harvia will continue to drive profitable growth
especially outside Europe in attractive and large
markets, for example, in North America and
Asia-Pacific, e.g. in Japan, China and Australia.
• Harvia is also taking an active consolidator role
inthe industry through acquisitions, including
steam and infrared saunas.
• The capacity and global reach of Harvia’s
operations and scale advantages e.g. in
production and sourcing create a clear
competitive edge to Harvia, in addition to the
organization’s extensive experience in the sauna
and spa business and in the B2B and consumer
products market.
• Harvia’s global master brands are Harvia and
EOS, backed with independent regional and
tactical brands Almost Heaven Saunas, Kirami
and ThermaSol. Harvia is one of the most
often recognized international sauna brand
inthe markets.
• Awareness and position of Harvia Group’s brands
is strong in the company’s main markets.
• Harvia has a cutting-edge product oering for
professionals and consumers alike – comprising
allsauna types and dierent price ranges to cater
for the full sauna experience.
• Future growth is supported by a wide array of
exciting and sustainable innovations with winning
design, best user experience and new digital
solutions to complement the sauna experience.
Focus is on solution sales to accelerate
Harvia’s growth.
#1
Harvia has a strong position in the stable and growing international sauna
and spa market. The global wellness trend is one of the key business drivers.
19Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
0.83 0.51 1.8 0.6 1.45 0.64 1.25 0.68 1.30
Earnings per share Dividend per share
EARNINGS PER SHARE AND
DIVIDEND PER SHARE, EUR
20242023202220212020
2.0
1.5
1.0
0.5
0
* Dividend per share for 2024 is the dividend proposal of Harvia’s
Board of Directors to the 2025 Annual General Meeting.
0.75*
• Harvia has a very capital ecient business model
due to typically low investment needs as well as
ecient and flexible production processes.
• Harvia demonstrates robust production and
operational eciency, close cooperation between
sourcing, production, product development and
sales, and modern production facilities.
• Key elements in ecient operations include
advanced sales & operations planning,
global sourcing strategy, automation of the
manufacturing processes, as well as agile
transportation network.
• Sustainability across the supply chain is one
ofthe focus areas.
• The large and diverse customer base consists of
sauna specialist stores, retail stores, wholesalers,
sauna integrators and sauna builders, DIY chains
as well as sauna construction companies.
• Products are sold globally mainly via the
distributor network as well as directly to end
users through Harvia’s webstores, like Almost
Heaven Saunas’ almostheaven.com and
Kirami’s webstore.
• Harvia expands the distributor network
continuously in order to gain a more diverse
customer base in the current markets as well
asexpanding geographically.
• The stability of the business, typically strong
cashconversion and low investment needs
together with the company’s performance
createa solid foundation for profitable growth
and the ability to distribute dividends.
• In 2024, the adjusted operating margin
reached 21.2%. Operating free cash flow was
EUR35.0 million.
#4 #5 #6
Ecient
business model
Long-standing customer
relationships and diverse
distribution channels
Strong profitability
and cash flow
DIVIDEND POLICY
• Harvia’s dividend policy is to pay a regularly
increasing dividend with a bi-annual payout.
• The Board of Directors’ dividend proposal for the
financial year 2024 is EUR 0.75 per share in total.
Earnings per share in 2024 were EUR 1.30.
* Dividend per share for 2024 is the dividend proposal of Harvia’s
Board of Directors to the 2025 Annual General Meeting.
*
INVESTOR INFORMATION
Harvia’s shares are listed on the ocial list of Nasdaq
Helsinki in the Mid Cap segment. Harvia has one class
ofshares, and the trading code is HARVIA.
HARVIA’S INVESTOR CALENDAR 2025
• Annual General Meeting: 8 April
• January−March 2025 interim report: 7 May
• January−June 2025 half-year financial review: 7 August
• January−September 2025 interim report: 6 November
Please find additional information on Harvia’s website
atwww.harviagroup.com/investor-relations/
20
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
GOVERNANCE
AND REMUNERATION
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements 21
INTRODUCTION
Harvia Plc’s (“Harvia” or “the company”) corporate governance complies with the
Finnish Limited Liability Companies Act and Securities Markets Act, regulations
concerning listed companies, the company’s Articles of Association, and the rules
and regulations of Nasdaq Helsinki Ltd. The company also adheres to the Finnish
Corporate Governance Code.
In its governance in 2024, Harvia complied with the Corporate Governance
Code 2020 with no departures. This report has been prepared in accordance
with the Corporate Governance Code eective from 1 January 2025 (“Corporate
Governance Code 2025”) set by the Securities Market Association and available
at www.cgfinland.fi.
The Corporate Governance Statement is issued separately from the company’s
Report by the Board of Directors, and it is published together with Harvia’s Report
ofthe Board of Directors, Financial Statements and Remuneration Report for 2024
on the company website at www.harviagroup.com.
The Audit Committee of Harvia’s Board of Directors has reviewed the Corporate
Governance Statement and it has been approved by the Board. The company’s
auditor has reviewed that the statement has been issued and that the included
description of the principles of internal control and risk management systems
related to the financial reporting process is consistent with the financial statements.
CORPORATE GOVERNANCE
STATEMENT 2024
22Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
HARVIA’S GOVERNANCE MODEL
Harvia’s governing bodies comprise the Annual General Meeting, the Board of
Directors, and the CEO. The General Meeting of shareholders is the highest decision-
making body of the company. The Board of Directors and the CEO are responsible for
the management of Harvia. The Board has an Audit Committee and a Personnel and
Remuneration Committee, which assist the Board. The Management Team assists the
CEO in managing the company and the group.
Shareholders’ Nomination Board
Prepares and presents proposals for the
composition and remuneration of the
Board of Directors.
General Meeting
The highest decision-making body of Harvia Plc
Auditor
Elects the auditor, who audits the financial
statements and accounting as well as the
company’s administration.
Board of Directors
The Board is comprised of 3–6 members, elected
by the General Meeting. The Board sees to the
strategic management of the company.
Audit Committee
Supervises the financial reporting process as
well as monitors the eciency of internal control
and auditing and the risk management system,
among others.
Remuneration and Personnel Committee
Prepares the remuneration and appointment
matters of the CEO and other senior management,
as well as the key principles and practices related
to the remuneration of the personnel.
CEO
Harvia’s Board of Directors appoints the CEO,
who manages Harvia’s business operations.
Management Team
Supports the CEO in implementing the strategy
and managing business operations.
23Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
ANNUAL GENERAL MEETING
The General Meeting of shareholders is the highest
decision-making body of Harvia that decides on
matters stipulated by the Finnish Limited Liability
Companies Act and the company’s Articles of
Association. In the General Meeting, all shareholders
of the company are entitled to raise questions and
propose resolutions regarding issues on the agenda.
Harvia has one share series, and every share entitles
toone vote in the General Meeting.
The Annual General Meeting is held annually on a date
set by the Board of Directors within six months of the
end of the financial period. An Extraordinary General
Meeting can be convened to resolve on a specific issue
if the Board of Directors deems it necessary or it is
otherwise required by law. Harvia’s General Meeting is
held in Muurame, where the company has a registered
oce, or in Helsinki, and isconvened by the Board
of Directors.
The Annual General Meeting’s agenda includes:
• presenting the financial statements, which include
the consolidated financial statements and the
Report by the Board of Directors;
• presenting the Auditor’s Report;
• deciding on the adoption of the financial
statements and use of profit shown in the
balance sheet;
• deciding on the discharging of the members of
theBoard of Directors and the CEO from liability;
• deciding on the remuneration of the members
ofthe Board of Directors and the auditor;
• deciding on the number of members of the
Boardof Directors;
• electing the members of the Board of Directors;
• electing the auditor; and
• handling other possible matters included in the
notice of the General Meeting.
The notice of the General Meeting is published on the
company’s website or by a newspaper announcement
which is published in at least one national daily
newspaper designated by the Board of Directors.
Thenotice shall be delivered to shareholders no earlier
than three months and no later than three weeks
before the meeting, and in any case at least nine days
before the record date.
To be entitled to participate in the General Meeting,
ashareholder needs to be registered in the company’s
shareholder register at least eight (8) business days
prior to the General Meeting (record date of the
General Meeting). To be entitled to exercise their
right to speak, vote and ask questions in the General
Meeting, a shareholder must have registered their
participation in the meeting in the manner stated in
the meeting notice and no later than the date specified
in the meeting notice which cannot be earlier than
ten (10) days before the General Meeting. Holders
of nominee-registered shares may also attend the
General Meeting by temporary registration in the
company’s shareholder register. A shareholder may
attend the General Meeting either in person, or via
arepresentative authorized by the shareholder.
2024 ANNUAL GENERAL MEETING
Harvia’s Annual General Meeting was held on 26 April
2024 in Helsinki. 210 shareholders were represented
in the meeting via either advance voting, in person
attendance or a legal or authorized representative.
Atthe start of the meeting, the participants
represented 9,285,487 shares and votes, which
amounted to approximately 49.68% of all shares
and votes.
The shareholders and their representatives could
participate in the Annual General Meeting and use
their shareholder rights by both voting in advance and
by submitting counterproposals and asking questions
in advance, as well as by attending the Annual General
Meeting event in person. In addition, they could follow
the Annual General Meeting 2024 online via a webcast.
Further information and the documents related to the
General Meeting are available on Harvia’s website.
BOARD OF DIRECTORS
According to Harvia’s Articles of Association, the
company’s Board of Directors consists of three to six
members. The members are elected in the Annual
General Meeting for a term which expires at the end
of the Annual General Meeting following their election.
The Board of Directors elects a Chairperson from
among its members for its term.
The majority of the Board members shall be
independent of the company, with at least two
of these members also being independent of the
significant shareholders of the company. The Board
of Directors assesses its members’ independence of
the company and its significant shareholders annually
and as needed, in accordance with the criteria set in
the Corporate Governance Code. In the selection of
members, attention shall be paid to members’ mutually
complementary experience and competence in the
company’s field of business and development stage.
24
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
DUTIES OF THE BOARD OF DIRECTORS
The duties and activities of the Board of Directors are
defined by the Finnish Limited Liability Companies
Act, the Corporate Governance Code, other applicable
legislation, Harvia’s Articles of Association and the
Rules of Procedure of the Board of Directors.
The key duties and operating principles of the Board
of Directors are defined in the Rules of Procedure
of the Board of Directors. The Board has general
authority to decide on all matters related to the
administration of the company and other issues that,
according to the law or the Articles of Association,
donot fall under the jurisdiction of the General
Meeting or the CEO.
The Board of Directors:
• convenes the Annual and Extraordinary General
Meetings in addition to preparing and submitting
proposals to the General Meeting,
• defines the company’s profit-sharing policy and
submits a proposal concerning profit sharing to
the General Meeting,
• decides on charitable donations within the
framework provided by the Finnish Limited
Liability Companies Act,
• defines the operating principles of the company’s
risk control system and internal controls,
• discusses and adopts the annual report and
financial statements as well as the interim reports,
• decides on the establishment or disbandment
ofcommittees and confirms their charters,
• defines the diversity policy of the company’s
Board of Directors,
• monitors and assesses the financial
reporting system,
• monitors and assesses internal control and
inspection and eciency of risk control systems,
• monitors and assesses the independence of the
auditor and, in particular, non-audit services
provided by the auditor,
• monitors the company’s auditor, and prepares the
election of the company’s auditor.
In addition to the duties set out in legislation and in
the Articles of Association, the Board of Directors
handles matters that are significant to and which
have a long-term impact on the extent and quality of
the operations of the company and Harvia Group:
• the long-term vision and strategic goals and
guidelines as well as the primary financial goals,
• the group structure and the budgets of group
companies as part of the group’s budget,
• strategically or financially important investments
of the group, significant expansions or reductions
in business operations,
• corporate transactions and business asset
deals, and
• significant contingent liabilities and other
matters with a material impact on the group’s
business operations.
Also, the Board of Directors appoints and dismisses
the CEO and the members of the management
team for their duties, and decides on their terms of
employment and incentive systems.
The Board of Directors convenes usually 7−8 times
a year in accordance with an agreed schedule.
The Board will hold extraordinary meetings as
necessary, which may also be held as teleconference
meetings. Matters may also be decided upon without
convening an actual meeting by drawing up a final
protocol that is signed by all board members. The
Board of Directors is quorate when more than half
of its members are present. The Board of Directors
strives to make unanimous decisions. If necessary, the
matter is resolved by a vote. Decisions are made by
a simple majority of votes. In the event of a tie, the
Chairperson’s vote is decisive.
THE BOARD OF DIRECTORS IN 2024
Between 1 January and 26 April 2024, the
members of the Board of Directors were Olli Liitola
(Chairperson), Heiner Olbrich (Deputy Chair), Anders
Holmén, Hille Korhonen, Markus Lengauer, and
Catharina Stackelberg-Hammarén.
The Annual General Meeting on 26 April 2024 elected
the members of the Board of Directors for a term that
expires at the end of the next Annual General Meeting.
Anders Holmén, Hille Korhonen, Markus Lengauer,
OlliLiitola, Heiner Olbrich, and Catharina Stackelberg-
Hammarén were re-elected as members.
The organizational meeting of the Board of Directors
elected from among its members Heiner Olbrich as its
Chairperson. Catharina Stackelberg-Hammarén was
elected as Deputy Chair of the Board.
In 2024, the Board of Directors focused in its work
on strategy, long-term financial targets, acquisition
and integration processes, follow-up of the new
organizational structure and its functions. The Board
of Directors held a total of 16 meetings in 2024.
Information about the attendance of the members
of the Board of Directors in meetings is shown in the
table on page 26.
25
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
MEETING ATTENDANCE OF BOARD AND COMMITTEE MEMBERS IN 2024
Board of Directors Audit Committee
Personnel and
Remuneration Committee
Member Attendance Attendance, % Attendance Attendance, % Attendance Attendance, %
Heiner Olbrich, Chair of the Board 16/16 100% 3/3 100% 2/2 100%
Catharina Stackelberg-Hammarén,
Deputy Chair of the Board 13/16 81% 2/2 100%
Anders Holmén 16/16 100% 8/8 100%
Hille Korhonen 16/16 100% 8/8 100%
Markus Lengauer 15/16 94% 5/5 100%
Olli Liitola 16/16 100% 2/2 100%
26
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
The Board of Directors
on 31 December 2024
The resumes of the members of the Board of Directors are available on the company website at www.harviagroup.com.
• Chair of the Board 2024–, Deputy Chair of the Board 2023–2024,
member 2022–
• Chair of the Personnel and Remuneration Committee 2024–
• PhD (Economics), Master of Science (Business Administration)
• Born 1965, German citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2024: 2,000
• Deputy Chair of the Board 2024–, member 2023–
• Member the Personnel and Remuneration Committee 2024−
• Master of Science (Business Administration)
• Born 1970, Finnish citizen, female
• Main occupation: Senior Vice President of Knowit Insight
Oy 2022–
• Harvia shares on 31 December 2024: 1,485
• Member of the Board 2021–
• Member of the Audit Committee 2022–
• Master of Science, Economics
• Born 1977, Finnish citizen, male
• Main occupation: Managing Director of Fyrklöver-Invest Oy
Ab 2013–
• Harvia shares on 31 December 2024: 1,685
• Member of the Board 2021–
• Chair of the Board’s Audit Committee 2023–, member 2021−
• Licentiate of Technology
• Born 1961, Finnish citizen, female
• Main occupation: Board professional
• Harvia shares on 31 December 2024: 5,106
• Member of the Board 2023–
• Member the Audit Committee 2024–
• PhD (Mechanical Engineering), Master of Science (Engineering)
• Born 1965, Austrian citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2024: −
• Member of the Board 2014–, Chair of the Board 2014–2024
• Member the Personnel and Remuneration Committee 2024–
• Master of Science in Engineering
• Born 1957, Finnish citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2024: 46,873
HILLE
KORHONEN
HEINER
OLBRICH
MARKUS
LENGAUER
CATHARINA
STACKELBERG-
HAMMARÉN
OLLI
LIITOLA
ANDERS
HOLMÉN
27Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
INDEPENDENCE OF THE MEMBERS OF THE BOARD OF DIRECTORS
In accordance with the Corporate Governance Code, the majority of the Board
members shall be independent of the company. At least two of these members shall
also be independent of the major shareholders of the company.
The Board of Directors assesses its members’ independence of the company and its
major shareholders annually. The members of the Board of Directors, elected in the
Annual General Meeting on 26 April 2024, were deemed to be independent of the
company and its major shareholders based on an assessment of independence in
accordance with the Corporate Governance Code.
SELF-ASSESSMENT
According to its Charter, the Board of Directors assesses its activities and ways of
working annually as an internal self-assessment. The Board defines the criteria used
in the assessment in the annual action plan.
The Board of Directors conducted the self-assessment in October 2024. The self-
assessment emphasized the quality of the board work in general, active following
of the investments made and multiple areas of company activities. The Chair of the
Board reviewed and discussed the results of the self-assessment together with the
Board members in the Board meeting in November 2024. The Board emphasized
the importance of market and competition information as well as the interaction
between the Board and the Management Team. The results of the Board’s self-
assessment were also presented to the Shareholders’ Nomination Board in November
2024 before they met with the Board members individually.
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Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
DIVERSITY OF THE BOARD
Harvia’s Shareholders’ Nomination Board takes into
account the principles concerning the Board of
Directors’ diversity in its work and its proposals. A
person elected as a member of Harvia’s Board of
Directors must have qualifications required for the
task as well as adequate availability for carrying out
the duties of a Board member. In the selection of
members, attention shall be paid to members’ mutually
complementary experience and competence in the
company’s field of business and development stage.
Varied professional and educational backgrounds
support the diversity of the Board. The goal is to
promote gender equality in the selection of Board
members. Additionally, the objective is to ensure that
the composition of the Board as a whole enables
ecient management of the Board’s responsibilities and
supports the development of Harvia’s business.
Harvia has evaluated that the diversity principles in
relation to the composition of the Board of Directors
were applied in the financial year 2024. In 2024, both
genders and several nationalities were represented
in the company’s Board of Directors. There are two
females (33.3%) and four males (66.7%) among the
six Board members elected by the Annual General
Meeting in April 2024 based on the proposal of the
Shareholders’ Nomination Board to the Annual General
Meeting 2024. The members include four Finnish
citizens as well as one German and one Austrian citizen.
Also, the experience and competence profiles of the
Board members are evaluated to be versatile and
mutually complementary.
The graphs relate to the Board of Directors elected by the Annual General Meeting 2024.
LENGTH OF MEMBERSHIP IN HARVIA PLC’S
BOARD OF DIRECTORS
Less than 2 years 2–5 years Over 5 years
2 members
33.3%
3 members
50.0%
1 member
16.7%
BOARD OF DIRECTORS’
NATIONALITY
4 members
66.7%
1 member
16.7%
1 member
16.7%
Finland Germany Austria
BOARD OF DIRECTORS’
DISTRIBUTION BY GENDER
2 members
33.3%
4 members
66.7%
Female Male
BOARD OF DIRECTORS’
AGE DISTRIBUTION
45–50 years
51–55 years
56–60 years
61–65 years
Over 65 years
1 member
16.7%
1 member
16.7%
1 member
16.7%
1 member
16.7%
2 members
33.3%
29Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
AUDIT COMMITTEE
To enhance the eciency of its work, the Board of
Directors has set up an Audit Committee. The Committee
has no independent decision-making authority; it
functions as a preparatory body, and the matters
it addresses are brought to the Board of Directors
for decision.
The Board of Directors annually selects from among its
members the chair and the members of the Committee
and adopts its written Rules of Procedure. The Audit
Committee consists of a minimum of three Board
members. The majority of the members of the Committee
must be independent of the company, with at least
one member also being independent of the significant
shareholders of the company. The members must have
the qualifications required for the fulfillment of the
Audit Committee’s role, and at least onemembermust
have expertise especially in accounting, bookkeeping
or auditing.
According to its Charter, the Audit Committee focuses
particularly on processing and preparing matters
that relate to the company’s financial reporting and
internal control. The Audit Committee’s duties consist
particularly of
• monitoring the company’s financial reporting process
as well as the financial status and financing situation
ofthe Group;
• handling the budget, forecast and assumptions
related thereto;
• handling financial statements and board reports,
interim financial reports and profit releases before they
are submitted to the Board of Directors for approval;
• monitoring the eciency of the company’s
internal control and internal audits as well as risk
management systems;
• preparing a financial risk management policy and
monitoring significant financial and other risks;
• monitoring the statutory audits;
• assessing the independence of the auditor and the
quality and scope of the audit services;
• monitoring and assessment of other
non-audit services;
• monitoring and assessing the company’s corporate
responsibility and sustainability reporting
processes as well as monitoring and evaluation of
sustainability report verification;
• preparing the election procedure for
sustainability auditor;
• monitoring the procedures followed in sustainability
reporting and the eectiveness of internal control
and risk management
• monitoring, assessing and handling general
corporate responsibility matters;
• monitoring and assessing the company’s tax
planning, reporting and matters.
AUDIT COMMITTEE IN 2024
Between 1 January and 26 April 2024, the members
of the Audit Committee were Hille Korhonen
(Chairperson), Anders Holmén and Heiner Olbrich.
TheBoard of Directors, appointed in the Annual
General Meeting on 26 April 2024, elected from
its members Hille Korhonen (Chairperson), Anders
Holmén and Markus Lengauer as members of the
Audit Committee.
In 2024, the Audit Committee convened 8 times. The
members’ attendance in the meetings is described
in the table on page 26. In addition to the normal
annual plan-related duties of the Audit Committee,
the Committee focused in its work in 2024 especially
on proposing and onboarding the new auditors for
the Harvia Group, preparing and assessing the new
CSRD sustainability reporting as well as the group-
wide integration and IT matters to support the new
organizational model.
PERSONNEL AND REMUNERATION COMMITTEE
The Board of Directors resolved in April 2024 to
establish a Personnel and Remuneration Committee
to assist the Board by preparing the remuneration
and appointment matters of the CEO and other
senior management of the Group, as well as the key
principles and practices related to the remuneration
ofthe company’s personnel.
The Board selects from among its members the
members and the chair of the Committee at the
organizational meeting. The Committee shall consist
of at least three Board members. The majority of
the members of the Personnel and Remuneration
Committee shall be independent of the company.
According to its Charter, the duties of the Personnel
and Remuneration Committee include
• preparing the governing bodies’ remuneration
policy and report;
• presenting the governing bodies’ remuneration
policy and report to the General Meeting and
answering questions about them;
• preparing the appointment of the CEO and
other members of the Management Team and
succession planning;
• preparing and reviewing the remuneration
of the CEO and other members of the
Management Team;
• planning the remuneration of other personnel and
organizational development; and
• monitoring and developing the company’s
organization and personnel matters.
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Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
In addition, the Personnel and Remuneration Committee
may have other tasks that are appropriate to fulfill the
role of the Committee. When carrying out its duties, the
Committee shall act independently in relation to the
operative management of the company.
PERSONNEL AND REMUNERATION COMMITTEE IN 2024
The Board of Directors, appointed in the Annual General
Meeting on 26 April 2024, elected from its members
Heiner Olbrich (Chair), Olli Liitola and Catharina
Stackelberg-Hammarén as members of the Personnel
and Remuneration Committee.
In 2024, the Personnel and Remuneration Committee
convened 2 times. The members’ attendance in the
meetings is described in the table on page 26. In 2024,
the Personnel and Remuneration Committee focused
in its work on preparing the overall compensation
system of Harvia's CEO and Management Team
including the long-term incentive system and short-term
incentives for 2025. The Personnel and Remuneration
Committee also participated actively in the search and
selection of the new Head of the Continental Europe
business region.
SHAREHOLDERS’ NOMINATION BOARD
Harvia has a Shareholders’ Nomination Board which
prepares proposals concerning the election and
remuneration of the Board Members, as well as the
remuneration of the members of the various Board
committees, to be submitted to Annual General
Meetings and to any Extraordinary General Meetings
where necessary.
The Shareholders’ Nomination Board consists of
representatives appointed by the company’s four
largest shareholders.
Each year, those four shareholders that hold the
largest share of the votes conferred by all shares in the
company on the first working day of the September
preceding the applicable Annual General Meeting
pursuant to the shareholders’ register maintained
by Euroclear Finland Ltd will be entitled to appoint
members that represent the shareholders.
The Chairperson of the Board of Directors will
convene the first meeting of each term of oce of the
Shareholders’ Nomination Board, and the representative
of the largest shareholder will be appointed as the
Chair of the Shareholders’ Nomination Board, unless
theNomination Board specifically decides otherwise.
The Shareholders’ Nomination Board submits its
proposal to the company’s Board of Directors on an
annual basis and at the latest on 31 January preceding
the applicable Annual General Meeting.
On 9 September 2024, Harvia announced that the
following persons were appointed as members of the
Shareholders’ Nomination Board:
• Juho Lipsanen (Onvest Oy, Member of the
Board), male
• Minna Laaksonen (WestStar Oy, CFO), female
• Janne Kujala (Head of Nordic Equities, Evli Fund
Management Company Ltd), male
• Josefin Degerholm (CEO, Nordea Funds Oy), female.
Heiner Olbrich, Chairperson of the company’s Board of
Directors, serves as an expert in the Nomination Board
but is not a member.
Members of the Shareholders’ Nomination Board during
the term between 18 September 2023 and 9 September
2024 included Juho Lipsanen (Onvest Oy), Jarno
Käyhkö (WestStar Oy), Timo Harvia (Tiipeti Oy), and
Annika Ekman (Mutual Pension Insurance Company
Ilmarinen). Olli Liitola served as an expert in the
Nomination Board but was not a member.
The Shareholders’ Nomination Board held a total of
5 meetings in 2024 and also one in January 2025. All
members attended each meeting. On 17 January 2025,
the Nomination Board submitted its proposals for the
number of members of the Board of Directors, for the
composition and for the remuneration of the Board
of Directors to Harvia Plc’s Annual General Meeting,
which is planned to be held on 8 April 2025. The
Nomination Board was unanimous in its proposals.
CEO
The CEO is responsible for the day-to-day
management of the company. The CEO is responsible
for ensuring that the targets, plans, guidelines and
goals set by the Board are carried out within Harvia.
According to the Finnish Limited Liability Companies
Act, the CEO ensures that the accounting practices
of the company comply with the law and that the
company’s financial administration is arranged in a
reliable manner.
The Board of Directors appoints and, if necessary,
dismisses the CEO and decides on the CEO’s terms of
service, defined in a written service contract approved
by the Board. The CEO is appointed for the post until
further notice. The Board of Directors evaluates the
CEO’s work and performance in achieving the assigned
targets. The CEO cannot be elected as Chairperson of
the Board of Directors.
Matias Järnefelt acted as the CEO of Harvia in 2024.
The CEO’s financial benefits are introduced in the 2024
remuneration report.
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Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
THE GROUP’S MANAGEMENT TEAM
The Management Team supports the CEO and is
responsible for the development and operational
management of the Group and its business, in
accordance with the goals set by the Board of
Directors and the CEO. The Management Team also
defines the operating principles and procedures in
line with the direction given by the Board of Directors.
The Management Team convenes monthly, and
when needed, and focuses on strategic questions
concerning the Group and its businesses. Questions
and reports concerning financial development,
governance, corporate responsibility and
development projects are regularly on the agenda.
The CEO acts as the chairperson of the Group’s
Management Team.
In 2024, the Management Team focused on working
eectively on the new organizational model, strategic
planning, executing the ThermaSol acquisition
and starting the related integration program, in
addition to the ordinary business management and
development duties.
GENDER DISTRIBUTION OF
MEMBERS OF THE MANAGEMENT TEAM
Male Female
8 members
80%
2 members
20%
32Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Members of the Management Team
on 31 December 2024
• CEO
• M.Sc. Industrial Engineering and Management
• Born 1974, Finnish citizen, male
• CEO and member of the Management Team 2023−
• Harvia shares on 31 December 2024: −
• Head of Region Asia-Pacific-MEA
• Vocational qualification in business and administration
• Born 1966, Finnish citizen, male
• Head of Region Asia-Pacific-MEA 2024−, member of the
Management Team 2014−
• Harvia shares on 31 December 2024: 99,472
• Chief Financial Ocer
• Master of Science degree in Engineering and a Master of Business
Administration (MBA) degree
• Born 1963, Finnish citizen, male
• Chief Financial Ocer and member of the Management
Team 2014−
• Harvia shares on 31 December 2024: 149,664
MATIAS
JÄRNEFELT
ARI
VESTERINEN
DAVID
AHONEN
• Head of Region North America
• Business Administration studies in Purdue Global
University, Indiana
• Born 1973, U.S. citizen, female
• Head of Region North America and member of the Management
Team 2024−, President of Harvia US Inc. 2024−
• Harvia shares on 31 December 2024: −
JENNIFER
THAYER
• Head of Region Northern Europe
• Vocational qualification in business and administration
• Born 1964, Finnish citizen, male
• Head of Region Northern Europe 2024−, member of the
Management Team 2014−
• Harvia shares on 31 December 2024: 62,140
ANSSI
PELKONEN
MARKUS
WÖRMANSEDER
• Head of Products and Solutions, Head of Region
Continental Europe
• Technical chemistry studies
• Born 1974, Austrian citizen, male
• Head of Products and Solutions and Head of Region Continental
Europe 2024−, member of the Management Team 2017−
• Harvia shares on 31 December 2024: 106,000
33Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
On 19 December 2024, Harvia appointed Ivan Sabato
as Head of Region, Continental Europe and a member
of Harvia Group’s Management Team. Sabato will start
in his position at the latest on 1 April 2025. Markus
Wörmanseder, who currently serves as Head of
Products and Solutions and interim Head of Region,
Continental Europe, will continue in his position of
Head of Products and Solutions when Sabato assumes
his role.
The resumes of the members of the Management
Team are available on the company website
at www.harviagroup.com.
• Head of Operations
• Master of Engineering degree
• Born 1975, Finnish citizen, male
• Head of Operations 2024−, member of the Management
Team 2016−
• Harvia shares on 31 December 2024: 36,527
MIKA
SUOJA
Members of the Management Team
on 31 December 2024
PHILIPP
KRAUTH
• Managing Director of EOS, Head of EOS Brands and Products
• Diplom Betriebswirt (BA), Business, Management,
International Marketing
• Born 1967, German citizen, male
• Managing Director of EOS, Head of EOS Brands and Products
andmember of the Management Team 2024−
• Harvia shares on 31 December 2024: −
• Head of Marketing and Brands
• Master of Science in Economics and Business Administration
• Born 1976, Finnish citizen, female
• Head of Marketing and Brands 2024−, member of the
Management Team 2020−
• Harvia shares on 31 December 2024: 2,479
PÄIVI
JUOLAHTI
• Head of Innovation and Technology
• Master of Science degree in Engineering
• Born 1978, Finnish citizen, male
• Head of Innovation and Technology 2024−, member of the
Management Team 2014−
• Harvia shares on 31 December 2024: 102,385
TIMO
HARVIA
34Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
PRINCIPLES OF INTERNAL CONTROL AND RISK
MANAGEMENT RELATED TO THE FINANCIAL
REPORTING PROCESS
Harvia compiles its financial reporting in accordance
with the International Financial Reporting Standards
(IFRS), the Finnish Securities Markets Act, the Finnish
Accounting Act and the guidelines and statements of
theFinnish Accounting Board, while also complying
withthe rules and regulations of the Financial
Supervisory Authority and the rules of the Nordic Main
Market Rulebook for Issuers of Shares.
The principles, instructions, practices and areas of
responsibility in internal auditing and risk management
relating to the company’s financial reporting process
are aimed at ensuring that the company’s financial
reporting is reliable and that the financial statements
have been prepared in accordance with applicable laws,
regulations and the company’s operating principles.
Harvia’s financialreporting is supervised on two levels,
in a separate company and at the Group level. On both
levels,control measures and analyses are carried out
toensure the validity of financial reporting.
The Audit Committee of the Board of Directors
is responsible for overseeing the financial
reporting process.
OVERVIEW OF RISK MANAGEMENT
Risk management is part of Harvia’s business
management. Harvia Group’s risk management is
guided by the Risk Management Policy. The purpose
of risk management is to promote the identification
ofrisks and their preventive management, to ensure
anadequate level of risk management, and to include
risk management as part of the company’s business.
Harvia has a group-level risk assessment and reporting
model. The Group carries out a comprehensive risk
assessment annually in which the most relevant risks
to the realization of the Group’s strategy or other
objectives are evaluated based on their likelihood and
impact on business operations. As a part of the risk
assessment process, the Group identifies possible
scenarios as a way to identify relevant risks and
developments that could lead to the realization of
relevant risks. The annual risk assessment also evaluates
the company’s risk management measures. If needed,
the risk assessment is updated, for example, for the risk
assessment included in interim reports.
The Group’s Management Team is responsible for the
risk assessment and the execution of risk management.
The results of the risk assessment are reported to the
Audit Committee of the Board of Directors as well as
tothe Group’s Board of Directors. The Audit Committee
of the Board of Directors supervises the eciency
and expediency of the Group’s risk management.
Throughout the year, the Committee addresses specific
risk management topics, supported by the results of
the annual risk management process and identified
relevant risks.
During 2024, Harvìa updated its annual risk assessment
process and strengthened its role as part of the work
of the Group’s Management Team. In addition, the risk
assessment process was connected more firmly to the
company’s annual management and reporting processes.
INTERNAL CONTROL AND AUDIT
The objective of internal control at Harvia is to ensure
the realization of the company’s strategic, financial,
operational and procedural targets, and to ensure
compliance with applicable laws and regulations in
the Group. The Group’s internal control is an essential
part of business management and of ensuring that
the set objectives are reached. The Group aims
to organize internal control eciently so that any
deviations from targets can be detected as early as
possible or that they can be prevented.
Harvia’s tools of internal control include internal
policies, guidelines and instructions, together with
manual controls as well as controls built into systems.
Inaddition, internal control is implemented in the form
of various monitoring reports and meetings.
The Board of Directors of Harvia is responsible
for organizing the internal control, and the Audit
Committee oversees the eciency of internal control.
The Group Management Team and the CEO of each
Group company are responsible for the Group having
functioning control procedures in use.
Harvia Group does not have its own internal audit
function. The Board of Directors will annually assess
the need for internal audit procedures and, if needed,
may use internal company resources or external
service providers for internal audit measures.
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Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
RELATED PARTY TRANSACTIONS
Harvia’s Board of Directors has defined the principles
for monitoring and evaluating related party transactions.
The Group maintains a related party list intended to
identify transactions that involve a person considered a
related party to Harvia. Harvia’s related parties include
the Board of Directors and the Management Team
and their closely associated persons as well as the
companies under the control of the managers. Harvia’s
Board of Directors processes any significant related
party transactions.
The company’s Board of Directors decides on significant
transactions carried out with Harvia’s management and
its related parties. The Board of Directors also decides
on possible related party transactions that do not fall
within the company’s regular business or are not carried
out with regular market terms.
In 2024, the company had no related party transactions
that were significant to the company and deviated from
its regular business or were carried out on other than
normal market terms.
INSIDER MANAGEMENT
Harvia complies with the Market Abuse Regulation
((EU) No. 596/2014, “MAR”), including its amendments,
and regulations issued under it, instructions issued
by the authorities, as well as the insider guidelines
of Nasdaq Helsinki Ltd. In addition, the company
has supplemented
Nasdaq Helsinki Ltd’s insider guidelines with its own
insider guidelines. The company maintains a list of
employees and service providers who have access
to insider information. The company’s insider list
comprises one or more project-based insider lists. The
company has estimated that it does not have insiders
who would require a separate supplement to the
insider list.
The company has appointed a person in charge of
insider issues, who is responsible for maintaining
insider lists, handling trading restrictions and the
management of the obligation to notify and disclose
transactions, internal communications related to insider
issues, training on insider issues and the supervision of
insider issues.
Harvia has internal procedures for publishing
insider information, possible delayed disclosure of
insider information and maintaining project-specific
insider lists.
Harvia observes the trading ban on managers (closed
window) specified in MAR article 19(11). In addition, the
company has separately defined specific individuals
who participate in preparing financial reports, or who
have access to information related to such reports, as
being restricted by a trading ban of similar length and
content (closed window). The closed window begins 30
days prior to the publication of a financial statements
bulletin, half-year report or interim report.
Harvia uses a whistleblowing channel that enables all
stakeholders to report possible misconduct through
Harvia Group’s website. No suspected violations of the
rules and regulations concerning the financial markets
were reported through the reporting channel in 2024.
MANAGEMENT TRANSACTIONS
Harvia has determined that managers whose
transactions shall be notified include members and
deputy members of the Board of Directors, the CEO,
and other members of the Management Team. These
persons and their closely associated persons are
required to notify the company and the Financial
Supervisory Authority of every transaction conducted
on their own account relating to the shares, debt
instruments, derivatives or other financial instruments
of Harvia. Harvia discloses the information via a
stock exchange release without delay, at the latest
within three business days following the execution
ofthe transaction.
Managers may not conduct any transactions on
their own account or on the account of a third party,
directly or indirectly, relating to Harvia’s shares, debt
instruments, derivatives or other financial instruments
during a closed period of thirty (30) calendar days
before the publication of a financial statements bulletin,
half-year report or an interim report.
AUDIT
The statutory audit covers the company’s accounting,
financial statements and administration for the
financial year.
In addition to the annual auditor’s report, the auditors
regularly report their auditing observations to the Board
of Directors and participate in the meetings of the
Board’s Audit Committee.
The company shall have an auditor which is an auditing
organization approved by the Finnish Patent and
36
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Registration Oce. The term of the auditor expires at
the conclusion of the Annual General Meeting following
their election.
The company’s Audit Committee prepares a proposal
on the auditor and the remuneration of the auditor
to the General Meeting, which elects the auditor and
decides on their remuneration.
AUDIT IN 2024
Deloitte Oy acted as the company’s auditor and as a
certification authority for the company’s sustainability
reporting as of 26 April 2024 with Johan Groop,
Authorized Public Accountant, acting as the principal
responsible auditor.
The audit fees paid to Deloitte Oy in 2024 totaled EUR
166 thousand. Of the fees paid, EUR 160 thousand were
fees for a statutory audit and EUR 6 thousand were
comprised of other fees. The other fees were related to
audit opinions on mergers.
PricewaterhouseCoopers Oy acted as the company’s
auditor until 26 April 2024 with Markku Katajisto,
Authorized Public Accountant, acting as the
principal responsible auditor. The audit fees paid to
PricewaterhouseCoopers Oy in 2024 totaled EUR 100
thousand. Of the fees paid, EUR 90 thousand were
fees for a statutory audit and EUR 10 thousand were
comprised of other fees. The other fees were related to
auditor opinions and certificates.
Audit fees paid to other firms totaled EUR 143
thousand. Of the fees paid, EUR 69 thousand were
fees for a statutory audit and EUR 75 thousand were
comprised of other fees. The other fees were related to
restructuring in Germany as well as auditing related to a
change in the accounting firm and bookkeeping system
used in Hong Kong.
37
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
REMUNERATION
REPORT 2024
DEAR HARVIA SHAREHOLDER,
I am very pleased to introduce Harvia Plc’s Remuneration Report for the financial
year 2024. The Remuneration Report describes the remuneration of the company’s
Board of Directors and the CEO in 2024 and how the company’s remuneration
policy was implemented. The Remuneration Report 2024 has been drafted in
accordance with the Finnish Corporate Governance Code 2025 of the Securities
Market Association and other regulations. It will be presented at Harvia’s Annual
General Meeting 2025 for an advisory vote.
HARVIA’S KEY PRINCIPLES OF REMUNERATION
Harvia’s remuneration policy outlines the key principles of remuneration of the
Board of Directors and the CEO. A revised remuneration policy for the company’s
governing bodies was presented to the Annual General Meeting 2024 for an
advisory vote. The Annual General Meeting resolved to reject the Remuneration
Policy 2024. We appreciate thefeedback of our shareholders on the policy, and an
updated remuneration policy will be presented to the Annual General Meeting 2025.
The long-standing key principles of remuneration at Harvia are transparency,
market orientation and rewarding good performance. The aim is to encourage and
reward the Board of Directors and the CEO for operating in accordance with the
company’s strategy and policies, and to motivate them to strive for the success of
the company. Ultimately, the objective is to promote long-term profitable growth
and competitiveness. Harvia also aims to be an attractive employer to employees
regardless of their job description.
38Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
In addition to the monthly salary, variable remuneration
plays a significant role in the remuneration of the CEO
to reward good performance. Variable remuneration
consists of the annual short-term performance bonus
and the long-term share-based incentive program.
The Board of Directors sets the performance criteria
and related targets for the short- and long-term
incentive programs.
HARVIA’S PERFORMANCE IN 2024
In 2024, the business environment for Harvia saw
very dierent trends across the globe: The European
and particularly Northern European sauna and spa
markets remained somewhat depressed by economic
uncertainty, increased interest rates, inflation and
low consumer confidence. On the other hand,
North America as well as APAC & MEA saw a lively
development driven by theincreasing interest in
sauna and spa solutions both for residential and
commercial use.
Harvia’s business development in 2024 can be
characterized by robust growth on a high profitability
level and a strong cash flow. The business developed
particularly well in North America as well as APAC
& MEA. Continental Europe also returned to growth
whilethe business in Northern Europe remained weak.
I would like to take this opportunity to thank Harvia’s
management and the entire sta for their continued
dedication and commitment in 2024 as the key
enablerfor a successful year and the prerequisite for
profitable growth also in the future.
REMUNERATION IN 2024
In the financial year 2024, the remuneration of Harvia’s
Board of Directors and the CEO was compliant
with the company’s Remuneration Policy 2024
without exception.
Regarding the Board of Directors’ remuneration,
the Annual General Meeting 2024 resolved that
approximately 40% of the monthly compensation
of the members of the Board of Directors is paid in
shares. In exceptional cases, the compensation can
be paid fully in cash. This was eventually the case for
the remuneration to be paid for the term 2024−2025
as there were regulatory restrictions on the payment
in shares due to the insider project related to the
ThermaSol acquisition.
In accordance with the Remuneration Policy
2024, the remuneration of CEO Matias Järnefelt
in 2024 included a fixed monthly salary, a short-
term performance bonus as well as participation in
the long-term share-based incentive scheme. The
criteria of the performance periods relate to the total
shareholder return, revenue growth and the reduction
of CO₂ emissions. Rewards on revenue growth are
subject to achieving minimum EBIT margins in the
performance periods.
DEVELOPING REMUNERATION
Going forward, Harvia will continue to follow the
key remuneration principles of transparency, market
orientation and rewarding good performance. We
also want to reflect market expectations and remain
competitive in our remuneration policy.
The Shareholders’ Nomination Board will annually
make proposals to the Annual General Meeting for
theremuneration of the company’s Board of Directors.
The Board of Directors’ approach to the remuneration
of the company’s management considers both the
competitiveness of remuneration and the promotion
of Harvia’s long-term preconditions for success and
targets by means of remuneration. The remuneration
criteria include elements concerning Harvia’s growth,
profitability and sustainability. I consider these factors
to remain essential also in the future, along with the
possibility of flexible remuneration structures in line
with market practices.
I appreciate all remarks regarding Harvia’s
remuneration and the Remuneration Report 2024.
Heiner Olbrich
Chair of the Board of Directors
Chair of the Board’s Personnel and
Remuneration Committee
Harvia Plc
39
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
HARVIA PLC’S REMUNERATION REPORT 2024
INTRODUCTION
Harvia Plc’s (“Harvia” or “the company”) remuneration
report for the year 2024 (“Remuneration Report”)
describes the remuneration of the company’s Board
of Directors and CEO in 2024 and how the company’s
remuneration policy has been implemented. Harvia
adheres to the Finnish Corporate Governance
Code ofthe Securities Market Association.
The Remuneration Report has been drafted in
accordancewith the Finnish Corporate Governance
Code 2025, eective from 1 January 2025, and
other regulation.
The Personnel and Remuneration Committee
of Harvia’s Board of Directors has reviewed the
Remuneration Report and it has been approved by the
Board. The company’s auditor has reviewed that the
report has been issued. The Remuneration Report will
be presented at Harvia’s Annual General Meeting 2025
for an advisory vote.
Harvia has a remuneration policy that outlines the
principles for the remuneration of the company’s
governing bodies, the Board of Directors and the
CEO. In 2024, Harvia applied the remuneration policy
adopted in 2020 (“Remuneration Policy 2020”)
until the Annual General Meeting on 26 April 2024.
A revised remuneration policy for the company’s
governing bodies was presented to the Annual General
Meeting 2024 for an advisory vote (“Remuneration
Policy 2024”), as the remuneration policy must be
presented to the general meeting every four years
or when material changes to it are made. In the
Remuneration Policy 2024, the theoretical maximum
of the CEO’s short-term performance bonus was
increased from 50% (as in Remuneration Policy
2020) to 100% of the fixed annual salary. The Annual
General Meeting resolved to reject the Remuneration
Policy 2024. After the Annual General Meeting 2024,
Harvia has adhered to the Remuneration Policy 2024
as the Board’s proposal regarding the Remuneration
Policy 2024 is binding on the company. A new
revised remuneration policy will be presented to the
Annual General Meeting 2025 for an advisory vote.
The Remuneration Report 2023 received a ‘for’
vote from a majority of shareholders in the Annual
General Meeting 2024.
In 2024, the remuneration of the Board of Directors
and CEO complied with the remuneration policy
eective at the time when the decisions on such
remuneration were made and there were no
deviations. The remuneration of the Board of
Directors or CEO were not clawed back or adjusted
in the financial year 2024.
KEY REMUNERATION PRINCIPLES
Harvia’s remuneration principles apply to the entire
personnel of the company. The key principles of
remuneration at Harvia are that remuneration is
transparent, market-oriented, and that it rewards
good performance.
According to the Remuneration Policy 2024, the
objective of the company’s remuneration policy is to
encourage and reward management for work that is
in line with the company's current strategy and for
compliance with the set rules, and to motivate them
to strive for the success ofthe company.
Well-functioning and competitive remuneration is an
essential tool for the company to engage competent
directors and executives. This, in turn, contributes
to the financial success of the company and the
implementation of good corporate governance. In
addition to supporting the company’s long-term
profitability and competitiveness, remuneration
supports the company’s strategy.
Remuneration, in accordance with the Remuneration
Policy 2024, consists of the following components:
• Basic salary and employee benefits, which are in
compliance with the local market practices, laws,
and regulations.
• Short-term incentive scheme, which is meant
to guide the performance of an individual and
the organization as well as to support rapid
implementation of strategic projects.
• Long-term remuneration scheme, which is meant
for committing key persons to the company. Long-
term incentives aim at committing management
tothe company and harmonizing their interests with
those of shareholders.
The CEO’s basic salary shall be aligned with the interest
of the company and its shareholders. The basic salary
shall be competitive in the labor market comparison
in order to be able to attract and retain talented
professionals in the company's service.
Harvia’s Board of Directors monitors and supervises
the functionality of the remuneration policy, the
competitiveness of remuneration as well as how the
remuneration policy promotes the company’s and
Group’s long-term objectives. If necessary, the Board
ofDirectors proposes amendments to the remuneration
policy to the general meeting.
40
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
DEVELOPMENT OF THE REMUNERATION
Harvia is the leading player in the global sauna
market. Since its initial public oering in 2018, Harvia
has over doubled its size in revenue while delivering
consistently strong profitability. To further accelerate
growth, the company updated its strategic focus
areas in May 2024 and defined its strategic role in
the industry as “shaping the global sauna market so
that everyone has a reason to experience sauna”. The
updated strategic focus areas are: Delivering the full
sauna experience; Winning in strategically important
markets; Leading in key channels; and Best-in-class
operations & great people.
During the five-year period reviewed in the
Remuneration Report, the Group's revenue has increased
from EUR 109.1 million in 2020 to EUR 175.2 million in
2024. During the same period, the adjusted operating
profit increased from EUR 24.4 million to EUR 37.1
million. Adjusted operating profit margin was 21.2
percent in 2024.
Dividends paid by Harvia have increased by 78.9%
in 2020–2024. The total shareholder return (TSR) of
Harvia’s share was 236.9% in 2020–2024. Dividends paid
in 2020–2024 and the price development of Harvia’s
share have been taken into account in the TSR.
50
40
30
20
10
0
33.736.547.324.4
22.4
26.4
21.1
22.4
Adjusted operating profit*, EUR million
Adjusted operating profit margin
* Adjusted by items aecting comparability
ADJUSTED OPERATING PROFIT AND
ADJUSTED OPERATING PROFIT MARGIN
20242023202220212020
37.1
21.2
50
40
30
20
10
0
0.83 0.51 1.8 0.6 1.45 0.64 1.25 0.68 1.30
Earnings per share Dividend per share
EARNINGS PER SHARE AND
DIVIDEND PER SHARE, EUR
20242023202220212020
2.0
1.5
1.0
0.5
0
* Dividend per share for 2024 is the dividend proposal of Harvia’s
Board of Directors to the 2025 Annual General Meeting.
0.75*
REVENUE, EUR MILLION
175.2150.5172.4179.1109.1
20242023202220212020
200
150
100
50
0
41Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
The Annual General Meeting of Harvia resolved in
2022 and 2024 to increase the remuneration of the
Chairperson and the other Board members. To align
the interests of the Board of Directors with those of the
shareholders, approximately 40% of the remuneration
of the members of the Board can be paid in Harvia’s
shares since the Annual General Meeting 2023.
The development of the CEO’s base salary during the
five-year review period reflects the profitable growth
of Harvia during the period. Especially in 2021 and
2022 the remuneration reflects the remuneration paid
to Harvia’s former CEO Tapio Pajuharju based on the
variable incentives schemes.
REMUNERATION
PAID TO THE CEO, MEUR
20242023202220212020
Salary
Performance bonus
Supplementary pension
Long-term incentive
Short-term performance bonus
Based on remuneration paid to Tapio Pajuharju until 31 May 2023
and remuneration paid to Matias Järnefelt as of 1 June 2023.
2.0
1.5
1.0
0.5
0
AVERAGE REMUNERATION IN 2020−2024
(EUR 1,000) 2020 2021 2022 2023 2024
Chairperson of the Board 58 53 53 61 58
 Change from the previous year, % 0% -8% 1% 14% -5%
Other Board members on average 20 28 30 32 37
 Change from the previous year, % 1% 36% 10% 6% 16%
CEO’s fixed monthly salary including taxable benefits
1)
479 524 510 570 511
 Change from the previous year, % -2% 9% -3% 12% -10%
CEO’s remuneration in total
1), 2)
611 1,774 1,523 695 581
 Change from the previous year, % 19% 190% -14% -54% -16%
The salary of a Harvia employee on average
3)
33 33 33 39 45
 Change from the previous year, % 9% -2% 0% 18% 16%
1) Based on remuneration paid to Tapio Pajuharju by 31 May 2023 and remuneration paid to Matias Järnefelt as of 1 June 2023.
2) Rewards based on Harvia’s long-term incentive program were paid to Pajuharju in shares in May 2021 for the 2018−2020 performance period
with the gross value of EUR 1,012,291.35, and in May 2022 for the 2019−2021 performance period with the gross value of EUR 721,052.57.
3) The average salary of a Harvia employee is calculated by taking the total salaries and bonuses paid to employees other than the members
ofthe Board of Directors, as defined in the financial statements for the financial year, and dividing the amount by the number of employees.
42Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
REMUNERATION OF THE BOARD OF DIRECTORS
IN 2024
In accordance with the Finnish Limited Liability
Companies Act, the shareholders decide on the
remuneration of the members of the Board of Directors
in the Annual General Meeting. Decisions concerning
the remuneration of the Board of Directors are made in
the Annual General Meeting for a single term of oce
at a time based on a proposal of the Shareholders’
Nomination Board, established following the decision
of the Annual General Meeting 2020.
The Annual General Meeting 2024 resolved on the
following monthly remuneration for the members of
the Board of Directors for their term ending after the
Annual General Meeting 2025:
• Chairperson of the Board EUR 5,000 (EUR 4,500
resolved by the Annual General Meeting 2023)
• Deputy Chair of the Board EUR 3,500 (provided
that a Deputy Chair is elected; previously no
separate remuneration for a Deputy Chair)
• Other members of the Board EUR 3,000
(EUR 2,500 resolved by the Annual General
Meeting 2023).
According to the Annual General Meeting’s resolution in
2024, the monthly remuneration of the Board members
is paid in company shares and in cash in such a way
that 40% of the total monthly remuneration will be paid
in company shares purchased at a price determined
in public trading on Nasdaq Helsinki Ltd and 60% will
be paid in cash. All the remuneration shares will be
acquired within two weeks from the day following the
publication of the company’s interim report for the
period 1 January–31 March 2024. The company acquires
the shares to the account of the members of the Board
of Directors and will pay any trading costs and transfer
tax related to the purchase of the shares.
According to the Annual General Meeting’s resolution,
the remuneration will be paid in cash in case the
remuneration cannot be paid in the company’s shares
due to legal or other regulatory restrictions or due to
other reasons related to the company or a member
of the Board of Directors or if the payment of the
remuneration in shares would prove to be unreasonably
dicult in practice. A member of the Board of Directors
may not assign the shares received as remuneration for
Board membership in 2024 until two years have passed
since the date of the receipt of the shares.
For the term 2024−2025, the remuneration for the
Board of Directors is paid fully in cash due to the insider
project related to the ThermaSol acquisition at the time
of the potential remuneration payment, and thus there
were regulatory restrictions on the payment in shares.
In addition, the Shareholders’ Nomination Board had
proposed as a new element that the remuneration of
the Board committee members be paid as meeting
fees instead of a monthly fee as follows: EUR 1,000 per
meeting for the Chair of a committee and EUR 600 per
meeting for the other members. The remuneration for
the Board committee work is paid in cash.
The Annual General Meeting also resolved that the
members of the Board of Directors living outside
Finland will be paid EUR 900 per meeting if the
member travels to Finland only for that meeting.
Thefee will be paid in cash. If a member participates
in a meeting via phone or other electronic device,
noseparate meeting fee will be paid. No fee is paid
fordecisions made without convening a meeting.
The travel expenses of the members of the Board of
Directors are compensated in accordance with the
company’s travel policy.
Remuneration for the company’s Board members does
not include pension payments, and Board members
are not paid other fringe benefits. The members of the
Board of Directors are not included in Harvia’s short-
or long-term incentive programs. The Board members
have not received any rewards from other Harvia
Group companies.
REMUNERATION PAID TO THE BOARD OF DIRECTORS
IN 2024
Due to the decision-making cycle, Board remuneration
from 1 January 2024 until the Annual General Meeting
on 26 April 2024 was based on the decision made by
the Annual General Meeting 2023. From the Annual
General Meeting 2024 until 31 December 2024, the
remuneration was based on the Annual General
Meeting 2024 decision. In all, the members of the
Board of Directors were paid EUR 245,586 (254,221)
in 2024.
43
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
REMUNERATION OF THE BOARD OF DIRECTORS IN 2024
Member
Total monthly
remuneration,
paid in cash, EUR
1)
Remuneration for
Audit Committee
membership, EUR
2)
Remuneration for
Personnel and
Remuneration Committee
membership, EUR
Meeting fees,
EUR
3)
Remuneration in
financial year 2024
in total, EUR
Heiner Olbrich
Chair of the Board from 26 April 2024 50,357 2,893 2,000 2,700 57,950
Catharina Stackelberg-Hammarén
Deputy Chair of the Board from 26 April 2024 34,286 1,200 35,486
Anders Holmén 30,214 5,893 36,107
Hille Korhonen 30,214 10,014 40,229
Markus Lengauer 34,071 3,000 2,700 39,771
Olli Liitola
Chair of the Board until 26 April 2024 34,843 1,200 36,043
Total 213,986 21,800 4,400 5,400 245,586
1) For the term 2024−2025, the remuneration for the Board of Directors is paid fully in cash due to the insider project related to the ThermaSol acquisition at the time of the potential remuneration payment.
2) The Audit Committee fees include monthly remuneration for the Audit Committee membership for 1 January−26 April 2024 as per the resolution of the Annual General Meeting 2023 and meeting fees
for 26 April−31 December 2024 as per the resolution of the Annual General Meeting 2024.
3) The members of the Board of Directors living outside Finland were paid EUR 900 per meeting if the member traveled to Finland only for that meeting.
44Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
SUMMARY OF CEO REMUNERATION COMPONENTS IN 2024
Remuneration component Description of remuneration
Fixed:
Salary Fixed monthly salary including taxable benefits: car benefit and telephone benefit
Fixed:
Pension Statutory pension in Finland
Variable:
Short-term incentive scheme
The purpose is to support the achievement of the company’s short-term financial and
strategic objectives. The performance period for the CEO’s short-term incentive scheme
is one year. The payment of the bonus is based on achieving the target level for Harvia’s
consolidated adjusted operating profit and personal targets.
Variable:
Performance bonus
The payment of the bonus is based on achieving certain profitability target of Harvia
companies in Finland.
Variable:
Long-term incentive program
The share-based long-term incentive program aims to support the implementation of
the company’s strategy, align the objectives of the management and the company’s
shareholders to increase the value of the company and improve the performance of the
company, and commit the CEO to the company.
CEO REMUNERATION IN 2024
The Board of Directors decides on the remuneration
of the CEO as well as on the key terms and conditions
of the CEO’s service. The target levels and maximum
levels of the variable remuneration-related measuresare
based on the long-term strategic objectives defined by
the Board of Directors.
According to the Remuneration Policy 2024, the
remuneration of the CEO consists of a fixed monthly
salary, fringe benefits, and performance-based
incentive systems. The incentive systems consist of an
annual short-term performance incentive scheme and a
long-term share incentive scheme. The remuneration
of the CEO may also include a supplementary
pension arrangement and a severance payment.
In 2024, CEO Matias Järnefelt was paid a total
remuneration of EUR 580,776 (EUR 251,882;
Järnefelt assumed his role on 1 June 2023). Variable
remuneration constituted 12% of the overall
remuneration and fixed pay 88%.
FIXED SALARY
CEO Matias Jarnefelt’s monthly salary during
2024 totaled to EUR 510,639 (251,882) including
taxable benefits.
45
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
SHORT-TERM INCENTIVE SCHEME
In 2024, the bonus payable based on the short-term
incentive scheme can account for a maximum of 50
percent of the CEO’s fixed salary including benefits,
which was equal to that in 2023.
In the financial year 2024, personal targets related to
Harvia’s growth as well as to developing the Group
strategy, implementation of the new operational model
as well as the development of the US business. In 2023
Järnefelt’s personal targets related to managing net
working capital, developing the company’s capacity
tomake profits and improving occupational safety.
PERFORMANCE BONUS
In 2024, Järnefelt was part of a performance bonus
system that covers the entire personnel of Harvia’s
companies in Finland (Harvia Plc, Harvia Group
Oy, and Harvia Finland Oy). In the system, the
performance bonus is a maximum of six percent of
the annual salary, based on the achievement of certain
profitability targets.
The 2024 bonus to be paid to the CEO in 2025 will be
6% of the CEO’s salary.
SHORT-TERM INCENTIVE SCHEME'S CRITERIA
Criteria in 2024 Weighting Performance outcome
Consolidated adjusted operating profit 66.7% 66.7%
Personal targets 33.3% 29.5%
Total 100% 96.2%
Bonus payment for 2024 EUR 243,556
(to be paid in 2025)
Criteria in 2023
Consolidated adjusted operating profit 66.7% 5.5% (7/12 parts of the year)
Personal targets 33.3% 19.4% (7/12 parts of the year)
Total 100% 24.9%
Bonus payment for 2023 EUR 55,437
(paid in 2024)
46Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
PERFORMANCE PERIODS OF THE SHARE-BASED INCENTIVE PROGRAM
Performance period Performance criteria and their weighting Payment date
The maximum number of shares
tobe paid to the CEO, gross
The reward earned by the CEO
inrelation to the maximum
2021–2023
• Absolute TSR (50%)
• Organic revenue growth (40%)
• Sustainability:
sustainability strategy and metrics (10%)
Spring 2024 7,910
• Järnefelt not covered
by the performance period
2022–2024
• Absolute TSR (50%)
• Organic revenue growth (35%)
• Sustainability:
reducing CO₂ emissions (15%)
Spring 2025 16,889
• Järnefelt not covered
by the performance period
2023−2025
• Absolute TSR (50%)
• Organic revenue growth (35%)
• Reducing CO₂ emissions (15%)
Spring 2026 13,835
• Ongoing performance period
• Järnefelt covered by the
performance period
2024−2026
• Absolute TSR (50%)
• Revenue growth (40%)
• Reducing CO₂ emissions (10%)
Spring 2027 11,893
• Ongoing performance period
• Järnefelt covered by the
performance period
The payment of rewards based on the performance criterion concerning organic revenue growth requires that Harvia achieves a certain EBIT margin in the performance period.
LONG-TERM INCENTIVE SCHEME
For each performance period, the Board of Directors
separately decides the performance criteria and related
targets, as well as the minimum, target, and maximum
reward potentially payable based on target attainment.
The payment of rewards based on the performance
criterion concerning organic revenue growth requires
that Harvia achieves a certain EBIT margin in the
performance period.
If the targets of the plan are reached, rewards will be
paid to the participants during the spring following
the end of the given performance period. If the CEO’s
service contract would have terminated before the
payment of the reward, no reward would be paid as
a rule.
The program has no commitment period or
terms and conditions associated with the number
of shareholdings.
The potential rewards paid through the incentive
program represent gross earning from which
withholding tax and possible other applicable
contributions are deducted, and the remaining net
amount is paid in shares. However, the company
has the right to pay the reward fully in cash under
certain circumstances.
47
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
THE KEY TERMS OF SERVICE OF THE CEO
The management contract of CEO Järnefelt is valid
until further notice. The CEO’s contract contains a
mutual six-month period of notice and a 12-month
non-compete period upon its termination.
If the company terminates the service contract, the
CEO is entitled to a severance payment corresponding
to six months’ basic salary. The CEO’s retirement age
isdetermined by the statutory pension system.
REMUNERATION PAID TO THE CEO IN 2024
Remuneration component EUR
fixed monthly salary, in total
1)
510,639
Short-term incentives from 2023 55,437
Performance bonus from 2023 14,700
Total 580,776
1) Including taxable benefits (car and telephone benefit).
THE REWARD TO BE PAID TO THE CEO IN 2025 BASEDON
2024 PERFORMANCE
Remuneration component EUR
Short-term incentives from 2024 243,556
Performance bonus from 2024 29,052
Total 272,608
48Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
REPORT BY THE
BOARD OF DIRECTORS AND
CONSOLIDATED FINANCIAL
STATEMENTS 2024
49
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
CONTENTS
REPORT BY THE BOARD OF DIRECTORS FOR 2024 51
Sustainability Statement 59
ESRS 2 General Disclosures 59
ESRS E1 Climate change 87
ESRS E5 Resource use and circular economy 94
Statement on EU taxonomy for sustainable
economic activities 99
ESRS G1 Business conduct 106
Share capital and shares 119
Calculation of key figures and reconciliation of
alternative performance measures 121
CONSOLIDATED FINANCIAL STATEMENTS IFRS 123
Consolidated statement of comprehensive income 123
Consolidated statement of financial position 124
Consolidated statement of changes in equity 125
Consolidated statement of cash flows 126
Notes to Financial Statements 127
Section 1: Basis Of Preparation 127
Section 2: Group Performance 131
Section 3: Capital Employed 139
Section 4: Net Working Capital 150
Section 5: Net Debt And Contingencies 154
Section 6: Other Notes 167
PARENT COMPANY FINANCIAL STATEMENTS FAS 178
Parent company Profit & Loss Statement 178
Parent company Balance Sheet 179
Parent company Cash flow statement 180
Notes to the financial statements of the
parent company 181
Proposal by the Board of Directors for
distribution of profit 188
Signatures for the financial statements
and the Board of Directors’ report 190
Auditor’s Report
(Translation of the Finnish Original) 191
Auditor’s ESEF assurance report 195
50
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
Report by the Board of Directors for 2024
GENERAL INFORMATION OF HARVIA
Harvia is the global industry leader in sauna and spa
products. Harvia has a comprehensive product offering
that strives to meet the needs of the global sauna and
spa market, for industry professionals and consumers
alike. Harvia’s largest client groups are retailers and
wholesalers who sell Harvia products to builders and
end customers. Harvia’s product offering is divided
into five categories: heating equipment, saunas and
Scandinavian hot tubs, steam products, accessories and
heater stones, and spare parts and services.
Harvia’s headquarters are located in Muurame, Finland.
The Group’s production facilities are located in Finland,
Germany, China, the United States, Romania, Estonia,
and Italy, and additionally, the group has sales and
customer service companies in Sweden, Austria, Hong
Kong, and Japan. Harvia’s products are distributed
globally through a network of dealers.
PROFIT PERFORMANCE, KEY FIGURES AND
STATEMENT OF FINANCIAL POSITION
Harvia’s key figures for the period 1 January -
31 December 2024 are presented below (EUR thousand,
unless otherwise indicated).
2024 2023 2022
Key statement of comprehensive income indicators
Revenue 175,206 150,547 172,408
EBITDA 42,445 39,298 41,173
EBITDA margin, percent 24.2% 26.1% 23.9%
Adjusted EBITDA 44,060 39,924 42,947
Adjusted EBITDA margin, percent 25.1% 26.5% 24.9%
Operating profit 35,486 33,044 34,678
Operating profit margin, percent 20.3% 21.9% 20.1%
Adjusted operating profit 37,100 36,670 36,452
Adjusted operating profit margin, percent 21.2% 22.4% 21.1%
Basic EPS (EUR) 1.30 1.25 1.45
Diluted EPS (EUR) 1.29 1.24 1.44
Key cash flow indicators
Cash flow from operating activities 31,668 39,139 24,335
Operating free cash flow 35,003 44,601 33,989
Cash conversion, percent 79.4% 111.7% 79.1%
Investments in tangible and intangible assets -6,149 -3,124 -3,587
Financial position key figures
Net debt 57,216 37,569 54,529
Net debt / adjusted EBITDA (Leverage), percent 1.3 0.9 1.3
Net working capital 44,955 36,132 45,319
Capital employed excluding goodwill, average 81,539 76,129 66,836
Capital employed excluding goodwill at the end of period 90,255 72,823 79,435
Adjusted return on capital employed (ROCE), percent 45.5% 44.2% 54.5%
Equity ratio, percent 47.2% 51.0% 47.3%
Return on equity (ROE), percent 20.8% 30.8% 45.5%
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The Group’s revenue increased in January-December
by 16.4% to EUR 175.2 million (150.5), driven especially
by both organic and inorganic growth in North America.
At comparable exchange rates, revenue increased
by 16.2% to EUR 175.0 million.
Revenue increased significantly in North America and in
the APAC & MEA region, with Continental Europe also
experiencing some increase in demand. The decrease in
revenue in Northern Europe was driven by the difficult
market conditions, including construction sector
weakness, low consumer confidence and restructuring
actions at some major customers.
Revenue increased significantly in all product groups
except spare parts and services. The ThermaSol
acquisition supported the high growth of steam
product sales. In the saunas and Scandinavian hot tubs
product group, the growth in North America supported
especially sauna room sales but the decline in the sales
of Scandinavian hot tubs offset some of this impact.
Operating profit for January-December increased to
EUR 35.5 million (33.0), while the operating profit
margin was 20.3% (21.9%). The operating profit
included EUR -1.6 million (-0.6) of items affecting
comparability, mainly related to business transactions
and restructuring. Changes in exchange rates
strengthened the operating profit by approximately
EUR 0.2 million, caused mainly by the value changes
of the U.S. dollar.
Adjusted operating profit increased to EUR 37.1 million
(33.7) and the adjusted operating profit margin
was 21.2% (22.4%). Net financial items for January-
December were EUR -3.6 million (-3.5). Financing
costs increased due to the interest on the new loan
of EUR 20 million that was raised to finance the
acquisition of ThermaSol. The increase in financial items
was offset by the impact of exchange rate gains on
foreign currency bank accounts.
The acquisition of ThermaSol is expected to create
annual synergies of approximately EUR 1.7 million by
the end of 2027. The identified key sources of synergy
comprise sourcing and logistics, marketing, cross-sell,
distribution, and common management within Harvia
US companies. One-off transaction, integration and
post-closing costs are estimated to total EUR 1.4 million
over the years 2024-2026. As ThermaSol’s relative
profitability prior to the acquisition was below Harvia’s
level, the acquisition is expected to have a small short-
term negative impact to the relative profitability of
Harvia before the identified synergies are realized. The
transaction will not have impact on Harvia’s long-term
targets related to growth, profitability and leverage.
Profit before taxes was EUR 31.9 million (29.5). The
Group’s taxes amounted to EUR 7.6 million (6.3).
The net result for January-December was
EUR 24.2 million (23.3) and undiluted earnings per
share were EUR 1.30 (1.25).
The Group’s investments in January-December 2024
were EUR 6.1 million (3.1). During 2024, Harvia
invested in growth opportunities in the USA and
improved automation, efficiency, and sustainability of
its production facilities. Harvia acquired 8.7 hectares
of land surrounding its production facility in West
Virginia and began planning a new warehouse facility
for the area. Additionally, the company made several
add-on investments in its production facilities including
a layout change and ramp-up of an upgraded, more
automated production line for woodburning heaters
in the Muurame factory. The company invested also in
heat pump technology for the Sastamala production
facility and purchased a laser cutter for the factory in
Germany.
PERSONNEL
The number of personnel employed by the Group at the
end of December 2024 was 696 (605) and averaged
661 (612) in January-December. Of the personnel at
the end of December, 255 (238) worked in Finland,
145 (76) in the United States, 125 (116) in Germany,
61 (67) in Romania, 56 (57) in China and Hong Kong,
34 (31) in Austria, 12 (12) in Italy, 6 (6) in Estonia and
2 (2) in Sweden.
The continuing strong growth in North America
was reflected in the increasing personnel in the
United States but also in Finland, as the majority of
the company’s heaters sold in North America are
manufactured in the Muurame factory. In addition, the
acquisition of ThermaSol at the end of July increased
the personnel in the United States.
Personnel expenses totaled EUR 35,213 thousand
(EUR 28,919 thousand) in 2024, of which wages,
salaries and remuneration amounted to EUR 29,913
thousand (EUR 23,889 thousand).
RESEARCH AND PRODUCT DEVELOPMENT
In 2024, Harvia developed and launched several
innovations, such as the woodburning version of its
top-selling heater Cilindro, the world’s first solar-
powered electric sauna Kirami Finvision Tile, and a new
Harvia Fenix control unit. The woodburning Cilindro
heater was designed especially for the traditional
Northern European sauna market. The product has
raised a lot of positive attention in trade fairs during
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the autumn 2024. Kirami Finvision Tile is a good
example of how Harvia aims to lead the innovation
in the global sauna and spa business. Harvia wanted
to design a sauna that uses materials and consumes
energy sustainably, ensuring that sauna sessions do not
strain the environment unnecessarily. The Harvia Fenix
control panel, which will become available in 2025, has
a more advanced touch screen, remote control and new
intelligent functions such as creating heating profiles.
Harvia’s research and development activities build on
the company’s four strategic priorities: 1. Delivering
the full sauna experience; 2. Winning in strategically
important markets; 3. Leading in key channels and
4. Best-in-class operations and great people. The
company aims at launching new products and
solutions, especially in the sauna category, expanding
the company’s portfolio, especially outside Europe,
and strengthening the company’s digital capabilities.
In addition, the company focuses on increasing
automation and improving its operational efficiency and
ensuring its operations support the long-term growth
of the company.
During 1 January-31 December 2024 there were
on average 21 employees working in research and
development. The Group’s research and development
expenditure amounted to EUR 2.2 million (EUR 2.3
million in 2023), of which EUR 1.8 million (EUR 1.7
million in 2023) were recognized as expenses.
ASSESSMENT OF THE MOST SIGNIFICANT
RISKS AND UNCERTAINTIES
Harvia’s business is exposed to several risks and
uncertainties. This is partly a result of the company’s
global presence and supply chain network, even
though these factors also help Harvia to recognize
and actively mitigate its risks. Harvia is familiar with
operating successfully in an environment shaped by
changing market conditions and risks, but the full
impact of all changes in different markets is difficult to
foresee, as situations often develop fast and are hard
to fully predict.
General economic, social and political conditions impact
Harvia’s operating environment. Economic uncertainty
and rapid developments in Finland, Europe, North
America or more widely across the globe can affect the
company’s business in many ways and make accurate
predictions and planning of future business more
difficult than usual. Changes in consumer confidence
and the resulting demand implications directly impact
Harvia’s business. Especially in the direct-to-consumer
market, deteriorating consumer confidence can result
in individual consumers postponing investments in
new saunas and components, and to a lesser extent,
in postponing replacement demand. In addition,
the availability of energy and energy prices may
impact consumer confidence and the frequency
of sauna usage.
Geopolitical events and uncertainties can affect
Harvia either directly or indirectly through, for
example, deteriorating market conditions. A notable
example of this is the Russian invasion of Ukraine in
February 2022. Harvia suspended its operations in
Russia at the beginning of March 2022 and completed
its exit from Russia by selling its 80% share in EOS
Russia in November 2022. The transaction was closed
in March 2023 after receiving relevant approvals from
Russian authorities. In addition to this direct impact,
the ongoing war has impacted the sauna market and
the company’s business indirectly through increased
economic uncertainty and inflation, especially in
Europe. Developments related to the war in Ukraine
as well as other geopolitical developments around
the world can affect Harvia also in the future.
Geopolitical tensions often give rise to tightening
trade policies, including increasing tariffs and other
hindrances of international trade. If these occur in
Harvia’s key countries, they may have an impact on
Harvia, either directly or through weakening general
market conditions.
The self-sufficiency of the Group’s manufacturing
processes, the backup supplier system for materials and
the widely dispersed customer base balance potential
strategic risks. Production is based on the company’s
own design and patents, and these are used to manage
potential operational risks. Damage risks are covered
with insurances where possible, and their coverage
is assessed annually together with the insurance
company. However, disruptions in Harvia’s global
supply chain or logistics network as well as significant
strikes and other industrial actions in key countries,
such as Finland, can have a negative impact on the
company’s business.
The increase in cyber threats worldwide alongside the
growing dependency on digital infrastructure cause
risks to Harvia’s business and its critical data. The
impacts of these threats can occur either directly by
disrupting or endangering Harvia’s daily operations
or compromising data or indirectly through attacking
Harvia’s suppliers or customers, and thus can
potentially result in financial, operational or reputational
damage to the company. The company continuously
takes actions to prepare for these risks by protecting
its digital infrastructure, operations and people against
them. In addition to having various technical solutions,
the company focuses on training its personnel to
recognize potential threats and to mitigate cyber risks
with their own actions.
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Harvia has business operations in several countries
and is exposed to transaction and translation risks
mainly relating to the U.S. dollar. Exchange rate risks
have thus far not been significant for the Group, and
Harvia has not protected itself from these risks with
currency derivatives. The Group’s loans consist of
long-term liabilities. The loans include covenants,
which in unfavorable business conditions may require
new financing negotiations with the bank. The
company protects itself from interest risks arising
from bank loans with interest rate swaps amounting
to EUR 56.5 million.
Derivatives
The Group uses derivative financial instruments such as
interest rate swaps to hedge its risks associated with
interest rate fluctuations. The fair value of the interest
rate swap fluctuates according to interest rate market
expectations. Derivative financial instruments are
initially recognized at fair value on the date a derivative
contract is entered into and subsequently measured
per contract at their fair value through profit or loss, if
they do not qualify for hedge accounting. If a derivative
is designated as a hedging instrument, its fair value is
recognised in the balance sheet in the fair value reserve.
In 2024, Harvia negotiated an additional interest rate
swap agreement for the EUR 20 million bullet loan
withdrawn to finance the acquisition of ThermaSol in
July 2024. Harvia is exposed to interest rate risk in the
floating interest rate payments of the EUR 20 million
loan agreement dated 22 July 2024. The interest rate
risk means that the future cash flows will fluctuate
because of changes in market interest rates. The
objective is to minimize the effect of interest rate
fluctuations on the Group’s annual result and to manage
exposure to interest rate risk.
Nature of the risk being hedged is the interest rate risk
relating to cash flows from the increase and variability
in 1-month Euribor. This hedge is classified as a cash
flow hedge and it is categorized under Level 2 of the
fair value hierarchy.
Harvia is exposed to interest rate risk in the floating
interest rate payments on loans drawn under the Loan
Facility agreement. The interest rate risk is that the
future cash flows will fluctuate because of changes
in market interest rates. The objective is to minimise
the effect of interest rate fluctuations on the Group’s
annual result.
There is an economic relationship between the hedged
item and the hedging instrument: The loan interest
payments are linked to 1-month Euribor and derivative
payments received are linked to 1-month Euribor. The
interest rate setting for both the hedging instrument
and the hedged item are defined on the same date.
The effect of credit risk does not dominate the value
changes that result from that economic relationship.
A condition for applying hedge accounting is that
the effect of credit risk does not dominate the value
changes that result from the economic relationship that
is the subject of the hedge. Standard & Poors’ long term
rating for the derivative counterparty Danske Bank is
AA-. The credit risk is considered low and does not
dominate the hedge relationship.
The hedge ratio of the hedging relationship is the same
as that resulting from the quantity of the hedged item
that the entity hedges and the quantity of the hedging
instrument that the entity uses to hedge that quantity
of hedged item. The hedge ratio is 1:1. Prospectively
the hedged item and the hedge instruments have
terms and conditions that meet the 1:1 ratio. Harvia will
evaluate qualitatively each quarter that the conditions
have not changed.
The Group had two interest rate swap agreements with
fair value of EUR 982 thousand and EUR -4 thousand at
the end of 2024 (2023: EUR 1,869 thousand). Changes
in the fair value of the swap have no cash flow impact.
Nominal values of the interest rate swap agreements
were EUR 36,500 thousand and EUR 20,000 thousand
as at 31 December 2024 (2023: EUR 36,500 thousand).
The interest rate swap agreements mature on
15 December 2026 and 22 July 2027.
GROUP STRUCTURE
Harvia Plc is a holding company and the parent
company of the Harvia Group. Harvia Plc owns all
Harvia subsidiaries and subgroups through Harvia
Group Oy. Harvia Finland Oy is a subsidiary of Harvia
Group Oy that manufactures heaters, saunas and
sauna and spa products. Harvia Finland Oy owns the
subgroup Harvia (HK) Sauna Co. Ltd and subsidiaries
Harvia Estonia ОÜ, non-operative LLC Harvia RUS,
Sauna-Eurox Oy, Parhaat Löylyt Oy and Phoenix El-Mec
Srl. Harvia Austria Group (former Sentiotec Group) is
another subgroup of Harvia Group Oy that specializes
in control units, sauna rooms and sauna heaters. In 2018,
Harvia Group Oy established the subgroup Harvia US
Holdings Inc. in the United States, which owns the
operating company Harvia US Inc. Harvia Group Oy
owns Scandinavian hot tub manufacturer Kirami Oy
and 60% of its sales company Kirami Sweden AB. In
addition, Harvia Group Oy owns 100% of EOS Group
in Germany, which manufactures premium quality
heaters and other sauna products, and 51% of Harvia
Japan Limited that imports and sells Harvia’s products
to local dealers.
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In 2024, Harvia acquired the ThermaSol subgroup.
ThermaSol Steam Bath LLC is a leading manufacturer
of high-end steam showers and steam rooms in
the United States while Harvia US manufactures
sauna products and sells Harvia brand products to
local dealers.
RECENT CHANGES IN GROUP STRUCTURE
In 2023, Harvia completed the divestment of
its 80.0% share in EOS Russia after receiving the
required approvals from the Russian officials. In 2023,
Harvia also established Harvia Japan Limited and
acquired electromechanical timer manufacturer
Phoenix El-Mec.
In 2024, Harvia acquired high-end steam shower and
steam room manufacturer ThermaSol Steam Bath
LLC. In addition, Harvia simplified its group structure
by merging Velha Oy and Saunamax Oy into Harvia
Finland Oy as well as merging Kusatek GmbH and
Spatronic GmbH into EOS Saunatechnik GmbH.
ANNUAL GENERAL MEETING
The Annual General Meeting of Harvia, held
on 26 April 2024, approved the financial statements
and discharged the members of the Board of
Directors and the company’s CEO from liability for
the financial year 2023. The Annual General Meeting
approved in an advisory decision the remuneration
report for the governing bodies. The Annual General
Meeting resolved to reject the revised remuneration
policy for the company’s governing bodies. The
resolution made is advisory.
The Annual General Meeting approved the Board
of Directors’ proposal that EUR 0.68 per share be
paid as dividend and that the remainder of the
distributable funds be transferred to shareholders’
equity. The dividend was paid in two installments.
The first installment, EUR 0.34 per share, was paid to
shareholders who were registered in the shareholders’
register maintained by Euroclear Finland Ltd on the
record date of the dividend of 30 April 2024. This
instalment of the dividend was paid on 8 May 2024.
The second instalment, EUR 0.34 per share, was paid
in October 2024. The record date of the dividend
date was 21 October 2024 and the dividend payment
date 28 October 2024.
The Annual General Meeting resolved that the Board
of Directors consists of six members. Olli Liitola,
Anders Holmén, Hille Korhonen, Heiner Olbrich, Markus
Lengauer and Catharina Stackelberg-Hammarén were
re-elected to the Board of Directors. Authorized Public
Accounting firm Deloitte Oy was elected as the Auditor
of the company and as the assurance provider for the
company’s sustainability reporting for the financial
year 2024, and Authorized Public Accountant Johan
Groop will act as the Responsible Auditor.
The Board of Directors was authorized to resolve on
the repurchase of a maximum of 934,711 shares in the
company in one or several tranches. The maximum
number of shares to be repurchased represents
approximately 5% of all the shares in the company
on the date of the Annual General Meeting. The
authorization may be used e.g. for the purposes of
the company’s share-based incentive systems, for the
purposes of board compensation and other matters
decided by the Board of Directors. The authorization
is valid until the closing of the next Annual General
Meeting, but no longer than until 30 June 2025.
The Annual General Meeting authorized the Board of
Directors to decide on the issuance of shares and the
issuance of special rights entitling to shares as referred
to in Chapter 10 Section 1 of the Finnish Limited Liability
Companies Act in one or several tranches, either
against payment or without payment. The aggregate
number of shares to be issued, including the shares
to be received based on special rights, must not
exceed 1,869,423 shares. The Board of the Directors
may resolve to issue new shares or to transfer own
shares possibly held by the company.
The authorization entitles the Board of Directors to
decide on all other matters related to the issuance of
shares and special rights entitling to shares, including
the right to deviate from the pre-emptive right of
shareholders to subscribe to shares to be issued.
The authorization may be used for the purposes
of strengthening the balance sheet and financing
position of the company, for the purposes of board
compensation or for other purposes decided by the
Board of Directors. The authorization is valid until the
closing of the next Annual General Meeting, but no
longer than until 30 June 2025.
BOARD OF DIRECTORS’ ORGANIZATIONAL
MEETING
Heiner Olbrich was elected the Chair and Catharina
Stackelberg-Hammarén was elected the Vice Chair
of Harvia Plc's Board of Directors at the Board of
Directors’ organizational meeting on 26 April 2024. The
Board of Directors elected from among its members
Hille Korhonen (Chair), Anders Holmén and Markus
Lengauer as members of the Audit Committee. In
addition, Harvia Plc’s Board of Directors decided to
establish a Personnel and Remuneration Committee.
The Committee’s task is to assist the Board of Directors
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55
in issues related to personnel and remuneration. The
Board of Directors elected from among its members
Heiner Olbrich (Chair), Olli Liitola and Catharina
Stackelberg-Hammarén as members of the Personnel
and Remuneration Committee.
The full resolutions by the Annual General Meeting as
well as the decisions by the organizational meeting
of the Board of Directors were published in stock
exchange releases on 26 April 2024.
SHARE-BASED INCENTIVE PLAN
Harvia has a share based long-term incentive plan for
the CEO, for Management Team members and some
other key employees. The plan forms a part of Harvia
Plc’s remuneration program for its executives, and the
aim of the plan is to support the implementation of
the company’s strategy, to align the interests of the
executives with interests of the shareholders to increase
the value of the company, to improve the performance
of the company, and to retain the executives.
The long-term incentive plan consists of three
performance periods of three calendar years each:
2022-2024, 2023-2025 and 2024-2026. During 2024,
Harvia paid out the rewards regarding the performance
period 2021-2023. The Board of Directors decides
separately for each performance period the plan
participants, performance criteria, and related targets,
as well as the minimum, target, and maximum reward
potentially payable based on target attainment.
On 25 March 2024, the Board of Directors of Harvia
Plc decided to continue the Long-term Performance
Share Plan for the Management Team and other key
employees for the performance period 2024-2026.
In the performance period 2024-2026, the plan
has 27 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, CO2 emissions
and EBIT margin. The number of shares to be paid
based on the performance period 2024-2026 is a
maximum of 68,100 Harvia Plc shares. This number
of shares represents the gross earning, from which
the withholding of tax and possible other applicable
contributions are deducted, and the remaining net
amount is paid in shares. However, the company has
the right to pay the reward fully in cash under certain
circumstances. Potential rewards from the performance
period 2024-2026 will be paid out during spring 2027.
STRATEGY UPDATE AND ADJUSTED
LONG-TERM FINANCIAL TARGETS
On 29 May 2024, Harvia announced its updated
strategy and long-term financial targets. Harvia’s
long-term financial targets were adjusted to reflect
the company’s growth ambitions. The new long-term
targets are an average annual revenue growth of 10%,
an adjusted operating profit margin exceeding 20%
and a net debt/adjusted EBITDA below 2.5x. Harvia’s
updated strategic focus areas are 1. Delivering the full
sauna experience; 2. Winning in strategically important
markets; 3. Leading in key channels, and 4. Best-in-class
operations and great people.
BOARD OF DIRECTORS’ PROPOSAL FOR
DISTRIBUTION OF PROFIT
Harvia Plc’s total unrestricted equity amounts to
EUR 81,045,028.97 in total, of which profit for the
period accounts for EUR 18,797,782.38. The company
aims to pay a regularly increasing dividend with a
bi-annual payout. In order to determine the amount
of dividend, the Board of Directors has assessed the
company’s solvency and financial standing after the end
of the period.
Harvia’s Board of Directors proposes to the Annual
General Meeting that the company distributes a dividend
of EUR 0.75 (0.68) per share, EUR 14,020,677.00 in total,
for the financial period ended 31 December 2024. The
Board of Directors proposes the dividend to be paid in
two instalments, EUR 0.38 per share in April 2025 and
EUR 0.37 in October 2025.
BOARD OF DIRECTORS AND THE COMPANY’S
AUDITORS
The Board of Directors of Harvia Plc comprised
the following members: Olli Liitola, Hille Korhonen,
Anders Holmén, Heiner Olbrich, Markus Lengauer, and
Catharina von Stackelberg-Hammarén. Heiner Olbrich
served as the Chairman of the Board, while Matias
Järnefelt held the position of Chief Executive Officer.
The company’s auditors were PricewaterhouseCoopers
Oy, with Markku Katajisto as the responsible auditor
until 26 April 2024, and Deloitte Oy, with Johan Groop
as the responsible auditor as of 26 April 2024.
The members of the Group Management Team were
Matias Järnefelt, CEO; Ari Vesterinen, CFO; David
Ahonen, Head of Region Asia Pacific, Middle East and
Africa; Timo Harvia, Head of Innovation and Technology;
Päivi Juolahti, Head of Marketing and Brand; Anssi
Pelkonen, Head of Region Northern Europe; Mika Suoja,
Head of Production; Markus Wörmanseder, Head of
Product and Solutions; Jennifer Thayer, Head of Region
North America (as of 1 February 2024), Rainer Kunz,
Managing Director of EOS Group (until 12 August 2024)
and Philipp Krauth, Managing Director of EOS Group
(as of 12 August 2024).
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CHANGES IN MANAGEMENT AND
ORGANIZATION
Harvia’s new organizational structure took effect as
of 1 January 2024. The new organization consists
of four geographical sales regions: North America,
Northern Europe, Continental Europe, and APAC
& MEA. It also encompasses five Group functions:
Marketing & Brand, Products & Solutions, Innovation &
Technology, Operations, as well as Support functions.
Additionally, there is a Management Team position for
the Head of EOS Brand and Products.
On 26 January 2024, Harvia Plc appointed Jennifer
Thayer as Head of Region, North America and President
of Harvia US Inc., and a member of the Management
Team of Harvia Group. In her role, Thayer leads the
North American commercial organization and drives
the growth and profitability of Harvia’s business in the
region. She assumed her position on 1 February 2024.
On 3 June 2024, Harvia Plc appointed Philipp Krauth
as Managing Director of EOS, Head of EOS Brands
and Products, and a member of Harvia’s Management
Team. In his role, Krauth is responsible for leading EOS
Group and ensuring a distinct and exciting identity
for Harvia Group’s highest-end solutions that are sold
under the EOS brand. Krauth assumed his position
on 12 August 2024.
SHAREHOLDERS’ NOMINATION BOARD
On 9 September 2024, Harvia announced the
composition of the Shareholders’ Nomination Board,
which is comprised of representatives appointed by the
company’s four largest shareholders. Juho Lipsanen,
Minna Laaksonen, Janne Kujala and Josefin Degerholm
were appointed to the Shareholders’ Nomination Board.
In addition, Heiner Olbrich, Chairman of the Board
of Directors of Harvia Plc, serves as an expert in the
Nomination Board without being a member.
OUTLOOK FOR FUTURE
According to Harvia’s estimate, the global sauna market
is approximately EUR 3.5 billion in value and there are
over 18 million saunas in the world. The total market
value is driven by both the growing installed base of
saunas as well as the significant aftermarket for saunas
and sauna heaters. Clear majority of the global installed
base is in Europe with Finland, Germany and Russia
being the countries with most saunas. In Europe, the
sauna market demand is driven especially by the need
to replace sauna heaters regularly, which increases the
resilience of the sauna market in economic downturns.
In addition to the key European countries, United
States is one of the largest sauna markets, but there
the market size and growth is driven primarily by the
increasing installed base of saunas.
Historically, the sauna market has grown annually by an
average of 5% and has witnessed some seasonality with
slightly stronger demand in the early and late part of
the year and lower demand during the summer months.
However, the market growth and seasonality have
varied: for example, during the exceptional demand
growth during the COVID-19 pandemic, seasonality
could hardly be witnessed. Harvia’s management
estimates that during the next 5 years, the global sauna
market will grow faster than its historical 5% rate, the
growth being supported by the increasing awareness of
sauna and its health benefits.
The sauna market in Europe has been challenging for
more than two years, followed by the Russian invasion
of Ukraine and the wider weak economic development.
Sluggish economic growth and eroded consumer
confidence in many key markets have affected demand
across product segments. However, the negative
impacts have not been equally strong in all European
countries. From the end of 2023 onwards, the market
demand has been gradually improving in Continental
Europe especially in high-end and professional
segments, even if the market has not yet fully
recovered. The macroeconomic conditions in Germany,
the largest sauna market in Europe, have remained
challenging, which has continued to affect the market
demand also in the sauna industry. In Northern Europe,
continuing headwinds in the construction sector and
weak consumer confidence have kept the market
environment challenging for long, especially in Finland.
Outside Europe, especially in North America and Asia-
Pacific, the sauna market has developed favorably for
several years. This positive development continued
also in 2024. The strong growth in North America has
been heavily supported by the growing awareness of
sauna and its health benefits. Especially in traditional
and infrared saunas, the positive development has
continued despite some weakening in the economic
conditions and consumer confidence in the United
States in 2024. In Asia-Pacific, the characteristics of
the sauna market vary significantly between countries,
but overall, the market in the region has enjoyed
good growth despite some economic challenges in
certain key countries, such as China. The demand in
market areas outside Europe continues to be skewed
towards more high-end products and full solutions,
especially compared to Finland, where sauna is seen
as an everyday experience and consumers often have
significant know-how of saunas and related renovation
work. The increase in the popularity of sauna, low but
increasing sauna penetration, and resilient high-end
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demand continue to support market growth in the
emerging sauna markets.
According to the management’s estimate, Harvia’s
share of the sauna market has increased during the
last few years. This development was estimated to
have continued also in 2024, driven both by Harvia’s
organic growth and the acquisition of ThermaSol in
July. In 2024, Harvia’s share of the sauna market was
estimated to be approximately 5%. The company’s
share of the sauna heater and sauna component
market is estimated to be over 20%. The company’s
management estimates that Harvia has the leading
position in the global sauna market.
SIGNIFICANT EVENTS AFTER THE REVIEW
PERIOD
On 17 January 2025, Harvia published the proposals
by the Shareholders’ Nomination Board to the Annual
General Meeting, planned to be held on 8 April 2025.
The Nomination Board proposes that the number of
members of the Board of Directors will be increased
from six to seven. The Nomination Board also
proposes that the current members Heiner Olbrich,
Catharina Stackelberg-Hammarén, Anders Holmén,
Hille Korhonen, Markus Lengauer and Olli Liitola be
re-elected to the Board of Directors. In addition, the
Nomination Board proposes that Petri Castrén be
elected as a new member to the Board of Directors. The
Nomination Board proposes no changes to the monthly
remuneration of the Board of Directors.
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Sustainability Statement
ESRS2 GENERAL DISCLOSURES
In this Sustainability Statement, Harvia Group is
reporting for the first time according to the new
European Union Corporate Sustainability Reporting
Directive (CSRD) and the underlying European
Sustainability Reporting Standards (ESRS). The new
reporting requirements have provided a structured
framework for identifying, assessing and managing
sustainability-related impacts, risks, and opportunities.
Harvia has adopted these standards and is committed
to continuously improving its sustainability practices
and reporting. This statement reflects Harvia’s current
progress and approach to integrating sustainability into
business operations.
General basis for preparation
Harvia Plc (Harvia), a parent company, has prepared
this Sustainability Statement on consolidated basis for
all Harvia Group companies. The list of companies is
presented in Harvia Group’s Financial Statements in the
note 6.1. Group structure and consolidation.
The reporting period and the scope of consolidation
is the same as for the consolidated Financial
Statements of Harvia Group and applies from 1 January
to 31 December 2024.
This sustainability statement has been prepared in
accordance with the European Sustainability Reporting
Standards. This statement does not cover the tagging
of the Harvia’s Sustainability Statement with digital
XBRL sustainability tags under Chapter 7, Section 22,
Paragraph 1, Item 2 of the Accounting Act, as it has not
been possible for the sustainability reporting companies
to comply with this provision due to the absence of the
ESEF Regulation or other European Union legislation.
The comparative information presented in
the 2024 sustainability statement has not been
externally assured and comparative information is not
in the scope of the 2024 limited assurance.
REPORTING SCOPE
The disclosed sustainability matters are based on
the Harvia Group’s double materiality assessment
conducted during 2023-2024. In general, this
sustainability statement covers the entire Harvia Group
and its value chain where applicable and material.
Harvia assessed its material impacts, risks and
opportunities through its direct and indirect business
relationships in its upstream and downstream value
chain as part of the double materiality assessment and
the supplementing impacts, risks and opportunities
assessment (IRO assessment) performed. The
concentration of impacts, risks and opportunities to
Harvia’s own operations as well as its upstream and
downstream value chain has been presented in the
table set out in section “Material impacts, risks and
opportunities” of this Sustainability Statement. Harvia’s
assessment of impacts, risks and opportunities in
respect of its upstream and downstream value chain
is based on information available in-house, such as
information received from long-term customer, partner
and supplier relationships and experience, publicly
available information, and surveys and interviews made
for stakeholders.
Harvia’s upstream value chain encompasses supplier
and partner operations, including raw material
acquisitions, while its downstream value chain
includes business-to-business customers and partners,
consumers, end-users, and communities.
Harvia has not used the option to omit a specific piece
of information corresponding to intellectual property,
know-how or the results of innovation or impending
developments or matters in the course of negotiations.
Scope of sustainability-related policies, actions
and targets
Harvia Code of Conduct and Harvia Group
Sustainability Policy cover Harvia’s own operations and
how Harvia conducts business. The Supplier Code of
Conduct concerns Harvia’s suppliers and partners.
Main focus of the actions and targets is in Harvia’s
own operations often having direct impact on both
upstream and downstream value chain.
SPECIFIC REPORTING CIRCUMSTANCES
Time-horizons
In this statement, Harvia has used short-, medium- and
long-term time-horizons. Short-term reporting period
refers to a period of less than one year. Medium-term
reporting period refers to a period starting from the
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end of the short-term reporting period to up to five
years, and long-term reporting period refers to a period
of more than five years.
Other reporting standards or frameworks
Harvia has applied the Greenhouse Gas (GHG) Protocol
to greenhouse gas emissions accounting.
Data estimates
For calculating greenhouse gas emissions and energy
consumption, location-based estimates have been
used for those group companies for which market-
based data is not available. These units are Harvia
China, Harvia Japan, Harvia US, ThermaSol, Phoenix
El-Mec and Harvia Estonia. The calculations where
location-based data have been used are the 2021-
2024 emission-free electricity share, the 2024 scope
2 electricity emissions and the 2023 and 2024 energy
consumption and energy mix data. The margin for
error for energy mix and emissions data from the
Climate Database Initiative is ±5%. The data provided is
based on data and statistics that seem reliable, but for
example local variance within a country may occur.
For metrics regarding waste data, product recyclability
and expected product durability in the ESRS E5
Resource use and circular economy, value chain data
estimations have been used due to incomplete primary
data or lack of industry averages. This data was
estimated mainly using management’s expertise and
data from public sources. More detailed description
of the calculation methodologies and assumptions
used are described under chapter “E5 Resource use
and circular economy” in section “Resource outflow”.
The margin for error for the waste data is estimated to
be ±5% as there are not many variables involved: Bin
size and frequency of emptying are known. The only
variable is the filling rate of the bin, which is estimated
to have very little variance. For the recyclability the
margin for error is estimated to be ±10%, due to varying
practices in different locations. For the expected
product durability, the margin for error is estimated to
be ±10% as the use environment and how the product
is used vary. Harvia seeks to improve the data accuracy
over time through supplier engagement.
Changes to prior reporting periods
Compared to the previous sustainability data published,
Harvia Japan, ThermaSol Ltd. and Phoenix El-Mec have
now been included in the reporting and metrics for the
time period they have been part of the Harvia Group
during the reporting year.
Harvia has updated the emission factors to more recent
and accurate ones, or to the ones found in the generally
used emission factor sources, such as the Department
for Environment, Food and Rural Affairs (Defra) list for
scope 1 emissions and scope 2 natural gas emissions
and the Carbon Database Initiative for scope 2 location-
based electricity emissions. The change from this
update for the base year data is less than 1%.
During the reporting in 2024, Harvia has noticed a prior
error in the scope 2 emission data. One emission factor
used in the GHG accounting was previously too small.
The effect for 2022 is an 18% increase, and for 2023, a
24% increase in scope 2 emissions. The error was found
in the 2022 and 2023 scope 2 data and does not affect
the baseline 2021 data. All data in this sustainability
statement is produced with the corrected data.
References used
In this sustainability statement, references have been
made to the information presented in the Financial
statements. Below is a list of the referenced data and
the corresponding data points:
The revenue and its accounting policy in Note 2.1.
Revenue in the Financial Statements. Data points
ESRS2 SBM-1, 40 a and 40 b, E1-5 40, E1-6 53 & 55,
E1-6 AR 55 and E5-5 35.
Intangible assets and its accounting policy in
Note 3.2 Intangible assets and impairment testing and
for tangible assets. Data points ESRS 2 MDR-A 69 b and
ESRS E1-3 29 c i.
Use of phase-In provisions
On 31 December 2024, according to the consolidated
balance sheet of Harvia Group, the average number
of 750 employees during the financial year was not
exceeded and thus, Harvia Group omits information
required under the ESRS S1 Own workforce, ESRS S2,
Workers in the value chain and ESRS S4 Consumers
and end-users.
Harvia Group has assessed such topical standards to be
material in the double materiality assessment conducted
and, on the provision of the phase-in, provides only
limited disclosures regarding these material topics. The
impacts, risks and opportunities of these topics are
presented together with all material topics in the section
Material impacts, risks and opportunities of this General
Disclosures chapter.
The aspirational long-term goals presented in the
tables on pages 61-64, which describe how the material
topic relates to strategy or the business model, do not
comply with the ESRS target requirements. However,
they function as an integral part of guiding work and
actions. Some of the topics, however, do have concrete
targets that fulfill the ESRS target requirements. Most
of the actions presented in the table do not result
in self-explanatory result data and the results of the
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actions will be presented in more detail in future
sustainability statements.
The table below describes the sustainability matters
that Harvia has assessed as material, but which are not
reported for 2024, along with how they are considered
in Harvia’s business model and strategy:
Topic Sub-topic
Sub-sub
topic
Strategy and principles
related to material topic Targets Policies Key actions Metrics
ESRS S1 Own
workforce
Working
conditions
Secure
employment
Working time
Adequate
wages
Social
dialogue
Freedom of
association
Collective
bargaining
Work-life
balance
Health and
safety
Developing employee
capabilities for future
success and fostering
a supportive work
environment form the
foundation of Harvia’s
strategic focus areas.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”.
Aspirational long-
term goal related
to the commitment:
Zero-accidents.
TARGET:
LTIFR: 5% reduction
annually
ACHIEVEMENT:
LTIFR 2024: 11,4
Change to 2023: -28%
Harvia Code of Conduct sets out Harvia’s
core principles on respecting human
rights and labor rights.
Harvia Sustainability Program
supplements the Harvia Code of
Conduct by setting goals for developing
workplace safety which increase
employee confidence and productivity.
“For safe and warm community”
commitment principles:
- Our operating is based on values such
as equality, diversity and ‘welcoming’.
- When we collaborate and support
each other, it results in wellbeing and
long relationships with everyone from
our employees to customers and
partners.
- We look after the safety, equality
and competence development of
our people.
- We always comply with laws and
regulations and generally accepted
best practices.
Ensuring and developing
work safety and supporting
wellbeing.
Group-wide guidelines
and regular follow-up of
safety metrics and action
planning & implementation
accordingly.
Regular People Power &
employee Net Promoter
Score (NPS) surveys
and action planning &
implementation accordingly.
Quantity of close-calls,
Quantity of lost-time
incidents, Lost-time incident
frequency rate (LTIFR)
People Power Surveys
Employee NPS
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Topic Sub-topic
Sub-sub
topic
Strategy and principles
related to material topic Targets Policies Key actions Metrics
ESRS S1 Own
workforce
Equal
treatment
and
opportunities
for all
Gender
equality
Training
and skills
development
Measures
against
violence and
harassment
in the
workplace
Diversity
Developing employee
capabilities for future
success and fostering
a supportive work
environment form the
foundation of Harvia’s
strategic focus areas.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”
Harvia is committed to human rights
in its Code of Conduct, and Harvia
Sustainability Program acknowledges
training and skill development as a goal
to achieve success.
“For safe and warm community”
commitment principles:
- Our operating is based on values such
as equality, diversity and ‘welcoming’.
- When we collaborate and support
each other, it results in wellbeing and
long relationships with everyone from
our employees to customers and
partners.
- We look after the safety, equality
and competence development of our
people.
Supervisor trainings
Skills up to date and
developing - regular
trainings
Establishing Group-wide
process for performance
reviews and competence
development
People Power Surveys
Employee NPS
Performance and career
development review
participation
Average training hours per
employee
ESRS S2
Workers in
the value
chain
Working
conditions
Health and
safety
Secure
employment
Working time
Adequate
wages
Social
dialogue
Freedom of
association
Collective
bargaining
Work-life
balance
Continuously developing
the sustainability of
Harvia’s value chain
serves as a basis for
Harvia’s strategic focus
areas.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”
TARGET:
100% of suppliers
whose annual purchases
are over EUR 20,000
agree and commit to
responsible business
practices by 2027
ACHIEVEMENT:
93% of suppliers in
scope are committed
to the Supplier Code of
Conduct
Harvia Code of Conduct and Supplier
Code of Conduct set out Harvia’s core
principles on respecting human rights
and labor rights.
Harvia Code of Conduct and Supplier
Code of Conduct forbid the use of child
or forced labor.
Harvia is committed to United Nations
(UN) Charter on Human Rights and
International Labour Organization (ILO)
Core Conventions in its Sustainability
Policy.
“For safe and warm community”
commitment principles:
- When we collaborate and support
each other, it results in wellbeing and
long relationships with everyone from
our employees to customers and
partners.
- We always comply with laws and
regulations and generally accepted
best practices.
Commitment requirement
of Harvia Supplier Code of
Conduct
Supplier visits, audits and
assessments
Supplier management and
cooperation
Percentage of suppliers
committed to responsible
business practices
Supplier evaluations
Other work-
related rights
Child labor
Forced labor
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Topic Sub-topic
Sub-sub
topic
Strategy and principles
related to material topic Targets Policies Key actions Metrics
ESRS S4
Consumers
and
end-users
Personal
safety of
consumers
and/or
end-users
Health and
safety
Protection of
children
Strategic focus areas:
Increasing the sales of
comprehensive systems
and solutions
Driving growth in
strategically important
markets
Leading in key channels
Harvia Sustainability
Program Commitment
#1: “For good and
healthy living”.
Aspirational long-term
goal related to the
commitment: Everyone
with access to sauna.
Harvia Sustainability
Program Commitment
#2: “For sustainable
experiences &
enjoyment”
Harvia Code of Conduct sets out Harvia’s
core principles on product safety.
“For good and healthy living”
commitment principles:
- We create a positive impact on the
health and longevity of people with
our offering.
- We actively share science-based
information on the health benefits of
heat and promote the healthy regimen
of using the sauna regularly.
- We always evaluate and consider
the health and safety impact of our
products and technologies.
- We guide our customers and
end-users in the right use of our
products for optimal benefit and
experience.
- “For sustainable experiences &
enjoyment” commitment principles:
- We actively guide our end users in
responsible use of our products.
- Our products are always safe to use,
serviceable and long-lasting.
Compliance with product
standards
Product testing to ensure
safety and compliance
with local regulations and
requirements
Quality assurance and
continuous improvement
culture
Collaborating with
researchers and scientists
who are experts in the
health benefits of sauna &
spa
Guiding customers and
end-users in the responsible,
safe and right use of Harvia
products
Accessories and product
functionalities for increased
safety, e.g. safety railings
and child-lock function
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Topic Sub-topic
Sub-sub
topic
Strategy and principles
related to material topic Targets Policies Key actions Metrics
ESRS S4
Consumers
and
end-users
Social
inclusion of
consumers
and/or
end-users
Access to
products and
services
Responsible
marketing
practices
Strategic role of Harvia:
“Shaping the global
sauna market so that
everyone has a reason
to experience sauna.”
Strategic focus areas:
Increasing the sales of
comprehensive systems
and solutions
Driving growth in
strategically important
markets
Leading in key channels
Harvia Sustainability
Program Commitment
#1: “For good and
healthy living”.
Aspirational long-term
goal related to the
commitment: Everyone
with access to sauna.
Harvia Sustainability
Program Commitment
#2: “For sustainable
experiences &
enjoyment”
Harvia Code of Conduct sets core
principles on non-harassment and
non-discrimination.
“For good and healthy living”
commitment principles:
- We create a positive impact on the
health and longevity of people with
our offering.
- We actively share science-based
information on the health benefits of
heat and promote the healthy regimen
of using the sauna regularly.
- We guide our customers and
end-users in the right use of our
products for optimal benefit and
experience.
“For sustainable experiences &
enjoyment” commitment principles:
- We actively guide our end users in
responsible use of our products.
- Our products are always safe to use,
serviceable and long-lasting.
Globally operating business
Products and services to all
Harvia customers and
partners offer public
opportunities to enjoy the
sauna
Solutions for all, for
instance, wide price range
and easy access saunas for
people with disabilities
Training for Harvia dealer
network
Customer Net Promoter
Score (NPS) surveys
and action planning &
implementation accordingly
(for Harvia dealer network)
Consumer and end-user
support and training
Customer NPS
Information-
related
impacts for
consumers
and/or
end-users
Privacy Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”
Harvia Code of Conduct sets out Harvia’s
core principles on data protection and
access to data.
Commitment and processes
to ensure customer data
privacy
Continuous improvement
of IT security and digital
infrastructure
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Governance
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY
BODIES
The administrative, management and supervisory
bodies of the Harvia Group are the following: the
Annual General Meeting, the Shareholders’ Nomination
Board, the Board of Directors including its Audit
Committee and Personnel and Remuneration
Committee, the Group Chief Executive Officer (CEO),
and the Group Management Team. The roles and duties
of these bodies are described below.
The Annual General Meeting is the highest decision-
making body of Harvia Plc. The Board of Directors,
elected annually by the Annual General Meeting,
exercises the highest decision-making power in the
Harvia Group between the Annual General Meetings.
The President and CEO of the Group, elected by
the Board of Directors, is supported by the Group
Management Team.
The Shareholders’ Nomination Board
The Shareholders’ Nomination Board prepares
proposals concerning the election and remuneration of
the Board Members as well as the remuneration of the
members of the various Board committees.
Board of Directors of Harvia Plc
Harvia’s Board of Directors is the highest body
overseeing sustainability, and it approves the policies,
Code of Conduct and Supplier Code of Conduct.
Principles concerning sustainable business are
defined in the Harvia Sustainability Policy. The Board
of Directors also approves Harvia’s sustainability
program and targets. Sustainability is incorporated
into Harvia’s updated business strategy, which was
approved by the Board of Directors in May 2024.
The Board of Directors also decides on the principles
according to which the management may make
decisions regarding investments. The Board of
Directors approves the Group’s long- and short-term
remuneration schemes and their realization.
According to Harvia’s Articles of Association, the
Board of Directors of Harvia Plc consists of three
to six members. The members of the Board of
Directors of Harvia Plc are Heiner Olbrich, Chairman
of the Board of Directors, Catharina Stackelberg-
Hammarén, Deputy Chair, Anders Holmén, Hille
Korhonen, Markus Lengauer, and Olli Liitola. In
2024, the Board of Directors elected from among its
members Anders Holmén and Markus Lengauer as
members and Hille Korhonen as Chair of the Audit
Committee, which is responsible for monitoring
and assessment of sustainability reporting and its
effectiveness.
On 31 December 2024, all members of the Board of
Directors of Harvia Plc were non-executive members
representing both genders and several nationalities.
Two of the members, 33.3%, were female and four,
66.7%, were male with a gender diversity ratio of 1:2.
66.7% of the members were Finnish citizens, 16.7%
German citizens and 16.7% Austrian citizens.
All members of the Board of Directors, elected in
the Annual General Meeting on 26 April 2024, were
deemed to be independent of the company and
its major shareholders based on an assessment of
independence in accordance with the Corporate
Governance Code. The Board of Directors assesses
its operations and ways of working annually as an
internal self-assessment.
Harvia Group’s employees and other workers are
not represented in the composition of the Board of
Directors.
Audit Committee
The Audit Committee has no independent decision-
making authority; it functions as a preparatory body,
and the matters it addresses are brought to be decided
on by the Board of Directors.
The Audit Committee monitors the efficiency of the
company’s internal control, any internal audits, and risk
management systems, monitors the statutory audit of
the Financial Statements, assesses the independence
of the auditor as well as other non-audit services, and
prepares a proposal on the appointment of the auditor.
The Audit Committee monitors and assesses the
company’s corporate responsibility and sustainability
reporting processes and sustainability report
verification, prepares the election procedure for the
sustainability auditor, monitors the procedures followed
in sustainability reporting and the effectiveness of
internal control and risk management, as well as
assesses and handles general corporate responsibility
matters.
Personnel and Remuneration Committee
The Personnel and Remuneration Committee assists the
Board by preparing the remuneration and appointment
matters of the CEO and other senior management of
the Group, as well as the key principles and practices
related to the remuneration of the company’s personnel.
The Committee shall not make independent decisions
without express authorization from the Board. In
addition, when carrying out its duties, the Personnel and
Remuneration Committee shall act independently with
relation to the operative management of the company.
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The duties of the Personnel and Remuneration
Committee include preparing the governing bodies’
remuneration policy and report, presenting the
governing bodies’ remuneration policy and report to
the General Meeting and answering questions about
them, preparing the appointment of the CEO and other
members of the Management Team and succession
planning, preparing and reviewing the remuneration
of the CEO and other members of the Management
Team, planning the remuneration of other personnel
and organizational development, and monitoring
and developing the company’s organization and
personnel matters.
CEO and the Management Team
The CEO is responsible for the day-to-day
management of the company. The CEO is responsible
for ensuring that the targets, plans, guidelines, and
goals set by the Board are carried out within Harvia.
According to the Finnish Limited Liability Companies
Act, the CEO ensures that the accounting practices
of the company comply with the law and that asset
management is arranged in a reliable manner.
The Management Team supports the CEO and is
responsible for the development and operational
management of the Group, in accordance with the
goals set by the Board of Directors and the CEO.
The Management Team also defines the operating
principles and procedures in line with the direction
given by the Board of Directors. The Management
Team convenes monthly and when needed and
focuses on strategic questions concerning the Group
and its businesses. Questions concerning financial
development, governance, corporate responsibility
and development projects are regularly on the agenda.
The CEO acts as the chairperson of the Group’s
Management Team.
The CEO and Group Management Team are responsible
for implementing the Code of Conduct and the
Supplier Code of Conduct.
Expertise of Administrative, management and
supervisory bodies
Harvia’s Shareholders’ Nomination Board takes
into account the principles concerning the Board
of Directors’ diversity in its work and its proposals.
A person elected as a member of Harvia’s Board of
Directors must have qualifications required for the
task as well as adequate availability for carrying out
the duties of a Board member. When electing Board
members, attention shall be paid to members’ mutually
complementary experience and competence from the
perspective of the company’s field of business and
development stage.
Varied professional and educational backgrounds
support the diversity of the Board. The members of
the Board of Directors have held executive positions
in a number of domestic and international companies
operating in industries where sustainable development
is built-in. The extensive and diverse experience across
various companies has provided the Board with broad
expertise, strategic insight, and a deep understanding
of business ethics and good corporate governance.
Additionally, the members of the Audit Committee
must have sufficient expertise in accounting,
bookkeeping, auditing, internal audits or financial
reporting practices as the Audit Committee
handles matters relating to the Company’s financial
reporting and control.
Harvia Group’s material topics and their impacts, risks,
and opportunities are included in the relevant meetings
and trainings arranged for the members of the Board
of Directors, Management Team and Sustainability
Steering Group.
Harvia Group also has an e-learning platform to
provide training regarding the Corporate Sustainability
Reporting Directive (CSRD) to the Board, Audit
Committee, Group Management Team, and
Sustainability Steering Committee. The training was
implemented in 2024, and it is mandatory to everyone
belonging to the aforementioned groups.
THE ROLES OF GOVERNING BODIES
The Board of Directors has general competence, and
is ultimately responsible for the material impacts,
risks, and opportunities. The Board of Directors
has reviewed and approved the IRO assessment
for Harvia on 5 November 2024. Harvia’s group-
wide Sustainability Policy sets out the basis for
its sustainability governance and reporting. The
Sustainability Policy was reviewed and approved by the
Board of Directors on 5 November 2024.
The duties and the responsibilities of the governing
bodies and the personnel of Harvia Group are defined in
the group-wide Sustainability Policy:
- The Board of Directors of Harvia Plc is accountable
for approval of Harvia Group’s strategy as well
as Sustainability Program and targets derived
from thereto and supervision of the company’s
sustainability reporting.
- The Audit Committee of the Board of Directors
performs its supervisory duties in accordance
with the provisions of the Finnish Limited Liability
Companies Act and the Charter of the Audit
Committee that are in force at a given time. The
Audit Committee has no independent decision-
making authority; it functions as a preparatory body,
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and the matters it addresses are brought to be
decided on by the Board of Directors.
- Harvia Group’s CEO and the Group Management
Team are responsible for the implementation of
the strategy and the Sustainability Program and
supervision of the achievement of targets. On behalf
of the Group Management Team, the CEO of Harvia
Group reports to the Board of Directors on the
progress of implementing the Sustainability Program.
- Harvia Group’s strategic sustainability work is
managed by the Sustainability Steering Group
and implemented in all applicable business areas
and functions. Amendments to strategic direction,
Group-level goal setting and delivery as well as
new policies are evaluated by the Sustainability
Steering Group and approved by the Board of
Directors. The Sustainability Steering Group tracks
implementation and progress and reports to the
Group Management Team.
- Tactical implementation is done within local units
as well as via cross-functional teams. Local units
and cross-functional teams are responsible for local
sustainability performance reporting.
- Harvia Group’s employees and anyone working for
or acting on behalf of a Harvia Group Company is
responsible for complying with the Sustainability
Policy and other applicable sustainability principles,
Harvia Group’s values, existing sustainability
commitments and Code of Conduct and all
applicable laws and regulations.
According to the provision of the group-wide
Sustainability Policy, Harvia Group annually conducts
the double materiality assessment, pursuant to which
it assesses its own and its value chain’s impacts,
risks, and opportunities. The double materiality
assessment that shall be performed annually estimates
the effectiveness of the measures taken to fulfill, for
example, established plans, procedures, and controls as
well as set targets and metrics. The Sustainability Policy
also sets forth general guidelines for Harvia Group’s due
diligence processes.
Sustainability-related risks are regularly handled by
the Audit Committee as part of the risk management
protocol. The topics are proposed by the management
based on their continuous risk evaluations. The topics
vary and can concern e.g. cyber risks or product liability
issues. Impacts and opportunities are handled at least
annually, but also as needed.
When necessary, the Group Management Team
proposes updates and revisions to the Sustainability
Program and sustainability targets to the Board of
Directors of Harvia Plc.
Information provided to and sustainability
matters addressed by administrative,
management and supervisory bodies
As stated before, the Board of Directors of Harvia
Plc reviewed and approved the double materiality
assessment, conducted by Harvia’s sustainability
reporting management, Sustainability Program
commitment owners, experts of material topics
and local operations, and an external consultant, in
January 2024. The double materiality assessment
was supplemented by an IRO assessment which was
approved by the Board of Directors in November 2024.
The IRO assessment is described in the table set out in
the Material Impacts, Risks and Opportunities section.
The revisions of the assessments will be done at least
annually and if significant changes occur.
During 2024, the Board of Directors also approved
the group-wide Sustainability Policy which establishes
the framework for sustainability governance and
reporting at Harvia Group.
Sustainability-related matters are monitored on an
ongoing basis. The Sustainability Steering Group
convenes quarterly and reports the progress of
sustainability matters to the Group Management Team.
According to the Sustainability Policy, CEO of Harvia
Group, on behalf of the Group Management Team,
reports to the Board of Directors on the progress
of implementing the Sustainability Program on a
case-by-case basis.
Evaluation of impacts, risks, and opportunities is an
integral part of decision-making process. On a general
level, impacts, risks and opportunities evaluation is
constantly present and part of everyday business,
and it is not only limited to business topics but also
includes sustainability-related matters. In projects and
decisions with substantial business or sustainability
impacts, risks are always assessed on a case-by-case
basis. Scenarios and analyses are conducted if found
relevant to the case at hand. The Group Management
Team has reviewed the Enterprise Risk Management
(ERM) process, which incorporates the impacts, risks
and opportunities. The Audit Committee discusses risks
in each meeting; thus, the most relevant risks were
covered during the year.
Sustainability-related remuneration
Harvia Group has sustainability-related performance
metrics as part of incentive schemes of Harvia
remuneration to ensure alignment with its
strategy, supporting the long-term profitability
and competitiveness and with Harvia’s long-term
sustainability targets.
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Sustainability-related remuneration is included in the
Long-Term Incentive (LTI) Program, which is applied to
the Harvia Group CEO, Management Team and certain
other key employees. The Performance principles and
metrics are the same for all.
Long-term remuneration
The LTI performance periods cover three years. For
the reporting year 2024, three LTI Programs with
sustainability-related remuneration where active:
2022-2024, 2023-2025 and 2024-2026. Harvia’s CEO
Matias Järnefelt is covered by the ongoing performance
periods 2023-2025 and 2024-2026.
The performance criteria for the LTI Program's
sustainability target include reducing scope 1 and
scope 2 GHG emissions during the performance period,
indexed against the year preceding the performance
period. The index is calculated in relation to sales
volumes (quantity). Harvia has set minimum, target
and maximum index and the actual payout is a linear
curve between minimum and target, and target and
maximum. There is a predefined maximum number of
shares to be paid, and the maximum reward is earned
when the maximum target is reached.
The active sustainability-related performance periods:
Performance
period
Performance criteria
related to sustainability Base-line year Target
Proportion of total
remuneration
2022-2024 Scope 1 & 2 GHG emission reduction index
in relation to sales volumes
2021 -23.1% 15%
2023-2025 Scope 1 & 2 GHG emission reduction index
in relation to sales volumes
2022 -23.1% 15%
2024-2026 Scope 1 & 2 GHG emission reduction index
in relation to sales volumes
2023 -10% 10%
For each performance period, the Board of Directors
will make a separate decision on the plan participants,
performance criteria, and related targets, as well as
the minimum, target, and maximum reward potentially
payable based on target attainment.
The remuneration and incentive schemes of the Board
of Directors of Harvia Plc are based on the resolution
of the General Meeting of Harvia Plc regarding
remuneration of the Board members. The resolution is
based on the proposal of the Shareholders’ Nomination
Board to the General Meeting.
The Board of Directors of Harvia Plc determines the
salary, bonuses, and other benefits of the CEO.
Due diligence
The process of due diligence and the principle
of continuous improvement is applied in several
operations affecting environment, people and
governance, such as in working conditions,
safety, quality and efficient operations, including
energy efficiency.
Harvia Group strives to strengthen its practices
and has put in place processes to identify and
engage with employees and suppliers to mitigate
the risk of environmental, social, and governance
impacts. The process is guided by Harvia’s policies
and internationally recognized frameworks, such as
the Organization for Economic Co-operation and
Development, OECD, Guidelines for Multinational
Enterprises and the OECD Guidelines for Good
Corporate Governance, to which Harvia is committed.
Harvia Group acts on findings from its due diligence
and mitigation work together with its employees and
suppliers to remedy any possible negative impacts.
As a last resort, if a supplier is non-responsive and
remediation cannot be achieved, Harvia Group may
terminate the commercial relationship. The selection of
new suppliers, as well as decisions to continue existing
business relationships, is influenced by the results of the
mitigating actions.
Whistleblowing mechanisms are in place so that anyone
can inform their observations or concerns about
serious risks of wrongdoing affecting Harvia Group’s
or its partners’ people, organization, society or the
environment.
Examples of how due diligence process is integrated
into the following sections and topics of this
sustainability statement:
E1 - GHG calculations: To ensure the accuracy of the
GHG emission calculations there are internal guidelines,
instructions and training, as well as internal control
in checking the calculations and data accuracy. The
calculations are compared to the previous years which
potentially unveils errors.
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E1 - Energy consumption: The energy consumption
of all Harvia’s manufacturing locations is monitored
online. If the reports show e.g. a peak in electricity
consumption, measures to discover the cause and
remediate the situation are started.
E5 - Selection of suppliers: Sustainability of material
inflows is part of decision-making factors when
selecting suppliers.
G1 - New suppliers: New suppliers are required to
commit to Harvia Supplier Code of Conduct, and
they are visited according to Harvia’s guidelines to
ensure compliance.
G1 - Whistleblowing: An anonymous whistleblowing
channel is available for all to report on risk of possible
violation of Harvia Code of Conduct.
A more detailed mapping, indicating where information
about Harvia’s due diligence process and its core
elements is presented within this Sustainability
Statement, can be found in Appendix 1.
Risk management and internal controls over
sustainability reporting
Harvia’s sustainability reporting complies with the EU’s
CSRD and the company’s group-level principles and
processes for statutory reporting, risk management,
and internal control. The principles of internal control
and risk management for sustainability reporting
are aligned with those for financial reporting,
ensuring consistency in the processes used for both.
The principles, instructions, practices and areas
of responsibility are aimed at ensuring that the
company’s sustainability reporting is reliable and that
the Sustainability Statement has been prepared in
accordance with applicable laws, regulations and the
company’s operating principles.
Harvia’s sustainability reporting is supervised on two
levels: at the company level and the Group level. At
the company level, the quality and validity of the data
are checked and analyzed before reporting to the
Group level. The Group level has control measures to
review and validate the data before it is used for Harvia
Group’s sustainability reporting. Centralized reporting
and sustainability data management ensure consistent
data collection across the Group companies. The Audit
Committee of the Board of Directors is responsible for
overseeing the sustainability reporting process and
receives regular reports on the status and findings of
sustainability reporting.
The internal control of Harvia’s sustainability reporting
relies on identifying and analyzing risks, focusing
on the most material risks identified, and ensuring
that effective control practices are in place. The
risks identified regarding sustainability reporting
include accuracy and availability of data especially
regarding value chain, completeness of the data
and timely reporting. To ensure reliable, accurate
and timely data, Harvia has adopted processes and
internal controls as part of the company’s business
processes to address and follow up on the level and
quality of the data. Comprehensive understanding of
the business, operational activities and local aspects
related to various sustainability topics together with
internal reviews, consultations and internal controls
helps to ensure the completeness of the data reported.
Systematic reporting on a regular basis (annual,
quarterly or monthly depending on the specified
schedule for each data type) ensures the continuous
improvement of the accuracy and availability of the
data. Harvia’s tools of internal control include internal
guidelines and instructions. Additionally, internal
control is implemented through various monitoring
reports and meetings. Harvia continuously evaluates
and improves its reporting and internal control
framework and processes. Manual controls as well as
controls built into the systems for ESG data will be
developed to ensure data accuracy and completeness.
Harvia is committed to ensuring the accuracy of its
sustainability reporting.
Strategy, business model and value chain
Harvia has grouped its significant product and service
offering based on the following categories, percentage
of revenue in brackets: heating equipment (54%),
saunas and Scandinavian hot tubs (27%), accessories
and heater stones (7%), steam products (6%), as well
as spare parts and services (7%). The company uses
this grouping in its financial reporting, but also for
internal purposes, for which the company has also more
granular groupings. During the reporting period, Harvia
acquired 100% of the shares of ThermaSol Steam Bath
LLC, a leading manufacturer of high-end steam showers
and steam rooms in the United States. After the
acquisition, steam products became the third largest
product group in Harvia’s portfolio in terms of revenue
in the last quarter of 2024. Harvia’s products are sold in
approximately 90 countries all over the world.
Harvia is not aware of any bans related to any of its
products or services in any of its operating countries.
Here, it is considered that bans do not include typical,
often market-specific regulation involving technical and
product feature requirements and restrictions that limit
the usage of some of the company’s products in some
of its operating countries, especially without proper
product localization and technical certification.
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Since 1 January 2024, Harvia has had four geographical
sales regions, which are North America, Northern
Europe, Continental Europe, and Asia-Pacific & MEA
(Middle East & Africa). In those markets, Harvia offers
sauna and spa solutions to professionals and consumers
alike. These markets are in line with the company’s
sales reporting.
The total headcount of Harvia Group employees is 696.
The personnel is distributed as follows:
Finland 255
United States 145
Germany 125
Romania 61
China and Hong Kong 56
Austria 34
Italy 12
Estonia 6
Sweden 2
Total revenue for financial year 2024 was 175.2 million
euros.
STRATEGY
Harvia Group’s strategy and several sustainability-
related goals are well connected and aligned. Harvia’s
strategic role is shaping the global sauna market so
that everyone has a reason to experience sauna, its
health benefits, the enjoyment and entertainment.
Harvia has taken an active role in raising awareness of
sauna and its health benefits.
Harvia aims to deliver the full sauna experience and
enables that by bringing new solutions and innovations
to meet the needs of different sauna cultures. From
the sustainability point of view, this means educating
people about the sauna, especially the right way
of using different saunas, and introducing new
energy-efficient innovations, such as off-grid sauna
with solar panels.
Winning in strategically important markets relates to
the company’s global reach and position as the market
leader, also in the field of sustainability.
The focus area ‘Leading in key channels’ is about
mastering the “Right product through right channel”
approach and being the best long-term partner for
B2B customers and strengthening the role of direct-
to-consumer sales. In addition, Harvia supports
the consumers and end-users throughout the
product lifecycle.
Best in class operations & great people are the basis
for Harvia’s success. The wellbeing of the employees
and partners alike is of great importance. This is stated
in the company’s Code of Conduct which also considers
the human rights perspective. From the production
and product point or view, the operational efficiency
covers both the company’s resources and energy
efficiency, the latter being important also for the
consumers and end-users.
Harvia’s largest product groups are ‘heating equipment’
and ‘saunas and Scandinavian hot tubs’, even though
the company also offers various other sauna and spa
solutions and services. Harvia puts strong effort in
reducing the environmental footprint of its products
throughout the product lifecycle as well as ensuring
their safe use, the latter being considered in both
product design as well as customer and end-user
training. Developing innovative products contributes
both to the company’s environmental targets and the
strategic target of shaping the sauna market so that
everyone has a reason to experience sauna. In addition,
Harvia aims to increase people’s awareness of sauna
and its health benefits globally, which contributes to
both its strategic target of ‘Winning in strategically
important markets’ as well as its sustainability goals,
e.g. ‘For good and healthy living’.
Harvia Group has a growth strategy, and it operates
globally. Due to the growth, the company’s
sustainability impacts, both negative and positive,
are likely to increase in absolute terms. Upholding the
continuous improvement of the company’s production
processes and operations as a whole is highly important
from both efficiency and sustainability point of view. In
addition, developing more sustainable products is a key
factor for sustainability, strategy and differentiation.
This may include making the current offering more
sustainable but also developing completely new
products, such as digital solutions.
As Harvia Group aims to grow especially in markets
where sauna and its health benefits are not widely
known, educating customers and end-users on sauna
and its health benefits as well as instructing them on
the right and safe use of the products is increasingly
important.
BUSINESS MODEL
Harvia’s business model focuses on manufacturing
and supplying sauna products, accessories, digital
services and full solutions. Environmental and safety
perspectives are considered in the product lifecycle,
from design to production, sourcing, logistics, use and
recycling.
Harvia’s business model relies on a range of inputs,
including raw materials, energy, people, financial
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resources, intellectual property, and digital technologies.
The availability of these inputs is secured and developed
by supplier and partner management, research and
development (R&D), production, product differentiation
and distribution.
Harvia’s outputs and outcomes for customers are
to produce sauna and spa products & solutions, and
well-being experiences, produced with consideration
for environmental, social, and governance matters. In
addition, Harvia seeks to increase knowledge of safe
use of its products and to encourage customers to use
its products in a more sustainable manner and instructs,
for instance, about the energy efficient ways of using
electric heaters.
Harvia’s outputs and outcomes for investors and society
are to create economic value in many ways, such as by
paying dividends to its shareholders, paying taxes on
profits of its business operations, and creating jobs.
Harvia promotes driving the sauna industry towards
more sustainable production and use of sauna and spa
products, for instance, by innovating solar-powered
saunas and optimizing materials used in operations and
product design.
VALUE CHAIN
In the sauna and spa industry, Harvia acts as an active
market maker, inspirer, innovator, manufacturer,
educator, and trainer. Harvia can impact environmental
and social matters by product innovation and
production, selection of suppliers and business partners,
and educating on a more sustainable way to use sauna
and spa.
Harvia’s upstream value chain consists of suppliers’ and
business partners’ operations, for instance, manufactures
of raw materials (steel, wood, stone) utilized in Harvia’s
products, and transportation service providers.
Harvia’s downstream value chain consists of end-users
and consumers. Harvia supports the end-users and
consumers throughout the product lifecycle, for
instance by providing product support and a wide
range of spare parts for the sauna products.
Consideration of interests and views
of stakeholders
Harvia Group actively engages with its stakeholders
to receive insights and feedback to direct its strategic
planning and risk management processes, sustainability
work and development, especially related to the sauna
and spa industry, due diligence processes, goal-setting
and enhanced understanding of stakeholders’ needs
and expectations.
Better understanding of stakeholders, their needs and
expectations and possible concerns, enables Harvia to
continuously enhance its performance and to receive
information for assessment of impacts, risks, and
opportunities related to environmental, social and
governance aspects.
Harvia Group aims to assist its upstream and
downstream stakeholders with their sustainability work
by arranging training, sharing instructions and studies,
and to raise awareness of best practices.
Stakeholders’ views and opinions on Harvia’s impacts,
risks, and opportunities related to environmental,
social and governance topics have been considered
in the Harvia Group’s double materiality assessment
conducted to understand their expectations and
involving them in defining material topics.
Harvia Group’s most important stakeholders are
employees, consumers and end-users, customers and
partners, suppliers, workers in the value chain, owners,
investors and board, media and influencers, authorities,
and universities.
Harvia has identified important themes for each
stakeholder group and the business units that carry
out stakeholder engagement activities at Harvia Group.
Such stakeholder engagement activities include, for
example, the following:
- Employees - People Power Survey (job satisfaction
survey) and initiative and feedback channels
- Consumers and end-users - customer service,
feedback and contact forms on websites
- Customers and partners - customer satisfaction
surveys, training, customer visits
- Suppliers - supplier visits and audits,
cooperation projects
- Owners, investors and board - meetings,
reports and releases
- Media and influencers - events
- Authorities - contribution to industry standardization
- Universities - joint research and
development projects
The input from the stakeholder engagement informs
strategic decision-making, particularly in areas such as
innovation and offering, operational improvements, and
regulatory compliance.
In addition, Harvia has supported its key customers and
institutional investors in compiling sustainability-related
information for their own reporting purposes.
In the double materiality assessment, Harvia gained
deeper understanding of stakeholder views and
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interest, which gives Harvia confidence that its
updated strategy and business model is aligned
with stakeholder expectations. Engaging with
stakeholders is continuous work and stakeholders’
views and interests will be taken into account in
business development. Harvia will review the double
materiality and IRO assessments and start working on
the Sustainability Program for 2026 onwards in 2025.
Stakeholders will be involved in the processes to
gain their views.
A summary of the sustainability topics that
stakeholders deemed material for Harvia Group in the
double materiality assessment were included in the
information shared with the Board of Directors as part
of the Double Materiality Report.
Material impacts, risks and opportunities
Harvia Group’s current Sustainability Program
for 2022-2025 is in line with Harvia’s business model
and strategy. The key elements of the Sustainability
Program are a commitment to promoting a long and
good life, providing safe and sustainable experiences,
minimizing the carbon footprint and ensuring the well-
being and safety of key stakeholders.
Harvia has assessed the current and anticipated effects
of the material impacts, risks and opportunities on its
business model, value chain, strategy and decision-
making and came into conclusion that there is no
need to amend the current strategy or business model
further than outlined in Harvia’s updated strategic
focus areas on 29 May 2024. All material impacts, risks
and opportunities are or will be addressed through
applicable actions. For instance, Harvia will draft a
climate transition plan in 2025 to develop a detailed
plan to achieve its aspirational long-term target related
to climate change and will invest in R&D to develop
new innovations.
Harvia’s strategy and business model is resilient against
identified and assessed sustainability-related impacts
and risks described in the table in this section. Harvia’s
business is today global and key market areas are
widely spread, which reduces the geographical risk.
Harvia will also continue to strengthen its position
further in multiple different regions and areas to drive
growth. The company’s in-house expertise, experience,
and knowledge of the sauna industry is an advantage in
utilizing opportunities, but also providing continuity and
agility, in the event of unforeseen situations. Long-term
relationships with key suppliers and customers provide
stability and flexibility in a balanced manner. Harvia
also has financial resilience from growing profitably
both organically and inorganically. These examples of
resilience are considered on all time horizons.
DESCRIPTION OF THE MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES
As a result of the double materiality assessment and
the supplementary IRO assessment, Harvia Group has
deemed the impacts, risks, and opportunities described
on the following pages to be material to its own and/or
upstream/downstream business activities.
When the impacts, risks and opportunities are
presented on the same rows, the impact and risk or
opportunity are directly or indirectly linked to each
other. The connection is described in the Risk or
Opportunity column. All impacts, risks or opportunities
do not have this kind of connection. The materiality
of the sustainability matter, based on the impact or
financial materiality, has been evaluated separately,
but considered in the thresholds, that the sustainability
matters defined as material represent a truthful
sustainability materiality entity for Harvia Group, its
business and value chain. The process of identifying the
material impacts, risks and opportunities is described in
section “Description of process to identify and assess
material impacts, risks and opportunities”.
Many of the material impacts identified and assessed
originated from or are connected to Harvia’s
strategy and business model. Most of the material
impacts originate from or are connected to Harvia’s
strategy, such as material impacts related to product
development, own workforce and value chain
workers. The following impacts originate from or are
connected to Harvia’s business model: emissions and
energy consumption, use of natural resources and
raw materials, and waste generation. The strategy and
principles presented in the following table describe how
impacts are reflected in Harvia’s strategy and principles.
None of the potential negative impacts originate from
Harvia’s strategy or are in relation to Harvia’s business
model. Rather, the strategy and principles describe
how Harvia seeks to address the negative impact and
energy consumption, use of natural resources and raw
materials, and waste generation.
The vast majority of Harvia’s identified material risk and
opportunities do not cause current financial effects as
most of them are considered potential. When an actual
risk or opportunity has significant financial effects, they
are described together with the risk or opportunity in
the table below.
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E1 Climate change
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Climate
change
mitigation
Actual & Negative: GHG
emissions from Harvia
Group’s own operations
(scope 1 & 2) have negative
impact to climate change.
Impact from
Harvia. Affects
everyone.
Effective operations
including continuously
developing the
sustainability of Harvia’s
operations and value
chain serves as a basis
for Harvia’s strategic
focus areas.
Sustainability Program
Commitment #3:
“For minimizing
our environmental
footprint”.
Aspirational long-term
goal related to the
commitment: Minimizing
emissions.
Opportunity: Harvia sees reducing the GHG
emissions from its own operations as an
opportunity to limit global warming and contribute
to global efforts in safeguarding the environment.
Driving the change in the industry may create
business opportunities.
Long-
term
- Energy consumption monitoring and action
based on that
- New investments to transition from fossil fuels
to emission free energy (Kirami & EOS)
- Climate change transition plan (to be drafted
in 2025)
Climate
change
mitigation
Actual & Negative:
GHG emissions from Harvia
Group’s upstream and
downstream value chain
(scope 3) have negative
impact to climate change.
Impact from
the entire value
chain and affects
everyone.
Opportunity: Harvia, as an industry leader, has the
potential to drive change by offering sustainable
products, cooperating with partners to develop
and utilize sustainable solutions in the value chain
and setting a positive example for others in the
sector. Harvia shall also guide end-users on how
the products are used to minimize the climate
impacts.
Long-
term
- Partnerships with key suppliers and service
providers who take their ESG impacts into
account
- Development of energy efficient & climate
friendly solutions
- Guidance on sustainable use of the products
Climate
change
mitigation
& energy
Actual & Negative:
Energy use from fossil fuels
have negative impact to
climate change.
Impact from
Harvia. Affects
everyone.
Risk: Renewable energy is not available in all
locations, or it is regulated in a way that may affect
profitability.
Medium-
term
- Use of emission free energy, when the option
is reasonably available
- Energy use optimization
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E1 Climate change
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Climate
change
mitigation
Actual & Positive:
Increased availability of
products with reduced
environmental impact to
mitigate climate change
and limiting use of natural
resources.
Harvia from the
development
side and
customers and
end-users when
the product is on
the market.
Strategic focus area:
Delivering the full
sauna experience: New
innovations to the
market.
Sustainability Program
Commitment #2:
“For sustainable
experiences &
enjoyment”, with
investing in R&D of
products that reduce
emissions and optimize
energy consumption.
Opportunity: The products are designed to be
durable, repairable, and Harvia offers spare parts
services for them. Another significant factor is the
good recyclability of both the materials used in the
products and the product itself. Harvia conducts
ongoing development and research to develop
energy-efficiency in products and to develop
solutions that take climate matters into account.
Current financial effect: Harvia invested 310 000
euros in the development of control units which
will contribute to energy saving and promote the
identified opportunity.
Medium-
term
- Sustainable product lifecycle
- Repairability and spare parts
- Development of energy efficiency and
solutions that take climate aspects into
consideration, such as an off-grid, solar panel
equipped sauna
Climate
change
mitigation
Potential & Negative:
Regulation changes and
compliance gaps impact
stakeholder confidence.
Impact from
Harvia. Affects
customers,
end-users,
investors,
authorities, etc.
Risk: Regulation and customer expectations for
lower climate impact products increase. Possible
gaps between complying with new regulation and
customer expectations pose a risk and will require
extra effort.
Medium-
term
- Active involvement in industry standardization
internationally through research projects and
committees
- Development of energy efficient and climate
friendly solutions together with partners
- Regulatory compliance
Climate
change
mitigation
Potential and Positive:
Regulation changes and
meeting the requirements
and expectations builds
trust for stakeholder.
Impact from
Harvia. Affects
customers,
end-users,
authorities,
investors, etc.
Opportunity: Regulation and customer
expectations for lower climate impact products
increase. Meeting the expectations and having
regulatory compliant solutions globally available
gives Harvia a competitive edge.
Medium-
term
- Active involvement in industry standardization
internationally through research projects and
committees
- Development of energy efficient and climate
friendly solutions together with partners
- Regulatory compliance
Climate
change
mitigation
& energy
Potential & Negative:
Customer needs or
expectations not met may
lead to changing customer
behavior.
Impact from
Harvia. Affects
customers and
end-users.
Risk: Energy availability and energy price changes
as well as acute weather hazards may have impact
on consumer confidence and frequency of sauna
use and result in changing customer behaviour.
Long-
term
- Development of innovations enhancing health
and well-being
- Development of energy efficiency and
solutions that take climate aspects into
consideration
- Guidance on sustainable use of the products
- Scientific studies and promoting health
benefits of sauna
Climate
change
adaption
- Risk: Operational disruptions and exceptional
situations (e.g., due to extreme weather conditions
resulting from climate change) may cause potential
availability issues from suppliers. The rapidly
changing market conditions of the past years have
proven that Harvia has a strong ability to ensure
availability. Harvia’s own operations are not in
high-risk areas.
Long-
term
- Long term supplier relationships
- Resilient supply network with backup supplier
system for materials
- Flexibility and capability of own operations as
back up for supplier availability issue
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CLIMATE-RELATED RISKS
The climate-related risks assessed to be material for Harvia, in its own operations
or in the value-chain, were divided into physical and transition risks.
Physical risks including possible acute or chronic physical climate impacts, such as
extreme weather conditions and rising sea levels which could disrupt operations,
supply chain, energy availability and cost as well as infrastructure.
Transition risks including possible regulatory and customer expectation changes,
availability of energy and low-emission solutions as well as stakeholder expectations.
The climate-related material risks are listed below with the explanation whether the
risk is a climate-related physical risk or a climate-related transition risk:
Harvia’s climate-related material risks
Climate-related
transition or
physical risk
Renewable energy is not available everywhere or it is regulated in a way
that may affect profitability.
Transition risk
Energy availability and energy price changes as well as acute weather
hazards may have impact on consumer confidence and frequency of
sauna use.
Transition and
physical risk
Possible gaps between complying with new regulation and meeting
customer expectations for lower climate impact products efficiently.
Transition risk
Harvia could be exposed to availability issues from suppliers regarding
raw materials due to acute events resulting from climate change. Extreme
weather events could also have an impact on suppliers’ operations and
ability to deliver as expected.
Physical risk
The description of the general process for identifying and assessing the impacts, risk
and opportunities is found in section “Description of process to identify and assess
material impacts, risks and opportunities” and the process for specifically identifying
and assessing climate-related risks is in the section “Description of the process to
identify and assess material climate-related impacts, risks and opportunities”.
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E5 Resource use and circular economy
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Resource inflows
& Resource
outflows,
including
resource use
Actual & Positive:
Sustainable
material choices
and optimization of
materials - reducing
environmental impact.
Impact from
Harvia.
Effective operations including
continuously developing the
sustaina-bility of Harvia’s
operations and value chain
serves as a basis for Harvia’s
strategic focus areas.
Harvia Sustainability Program
Commitment #2: “For
sustainable experiences &
enjoyment”. Aspirational
long-term goal related to
the commitment: 100%
sustainably sourced.
Opportunity: Harvia can impact material choices
towards more sustainable options and limit the use of
natural resources. Impact is also financial by savings
from material purchases as well as from image and
reputation perspective.
Harvia considers also the recyclability and circularity
of the materials at the end of the product lifecycle.
Medium-
term
- Sustainable and efficient use of
materials in product design and
manufacturing
- Sustainable material choices
Resource inflows
& Resource
outflows,
including
resource use
Actual & Positive:
Responsible use and
sourcing of natural
resources and raw
materials.
Impact from
Harvia and
suppliers.
Opportunity: There are typically many types of
material and supplier options available. Making
sustainable decisions in relation to materials and
suppliers to promote sustainable business.
Medium-
term
- Key suppliers’ commitment to
sustainability by committing to Harvia
Supplier Code of Conduct
- Sustainable material choices
Resource
inflows including
resource use
Actual & Negative:
Use of natural
resources and raw
materials.
Impact from
Harvia and
suppliers.
Risk: Natural resources and non-recyclable content in
raw materials will always be needed to some extent.
Possible increase in raw material prices or the higher
cost of sustainable materials may have an impact on
profitability. Possible limitations in the availability
of more sustainable materials or suppliers may also
have a negative impact on ensuring uninterrupted
operations.
Medium-
term
- Long term supplier relationships
- Key-suppliers commitment to
sustainability
- Good supply network with backup
supplier system for materials
Waste Actual & Negative:
Generation of waste.
Impact from
Harvia.
- Short-
term
- Minimizing non-recyclable waste -
continuous improvement
- Recycling
Resource
outflows,
including
resource use
Actual & Positive:
Measures to extend
product lifecycle and
reduce emissions.
Impact from
Harvia.
Affects
customers and
end-users.
Strategic focus area:
Leading in key channels
- supporting the end user
throughout the product
lifecycle.
Opportunity: Creating circular economy business by
providing services to extend product lifecycle and
reducing emissions by circularity of the materials.
Medium-
term
- Product design and guidance ensuring
good maintenance, service and
repairability
- Offering spare parts and maintenance
services
- Guiding on recyclability
Resource inflows
& Resource
outflows,
including
resource use
Actual & Positive:
Drive sustainability
forward through
sustainable products
and innovations
reduces environmental
impacts such as GHG
emissions and use of
natural resources.
Impact from
Harvia.
Affects
customers and
end-users.
Strategic focus area:
Increasing the sales of
comprehensive systems and
solutions: new innovations to
the market
Harvia Sustainability Program
Commitment #2: “For
sustainable experiences &
enjoyment”, with investing in
R&D of products that reduce
emissions and optimize
energy consumption.
Opportunity: Development of innovations that
enhance health and well-being, as well as energy-
efficient and sustainable technologies, drives sales
and positions Harvia as a leader in innovation and
sustainable solutions.
Medium-
term
- Development of innovations that
enhance health and well-being
- Development of energy efficient
solutions that take into account climate
aspects
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S1 Own workforce
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Working
conditions
& Equal
treatment and
opportunities
for all
Actual & Positive:
Good working conditions,
job satisfaction, equal
opportunities & long-term
employment.
Impact from Harvia
to employees.
Efficient operations &
skilled staff: Developing
employee capabilities
for future success and
fostering a supportive
work environment serve
as a basis for Harvia’s
strategic focus areas.
Harvia Sustainability
Program Commitment
#4: “For safe and
warm community”.
Aspirational long-
term goal related
to the commitment:
Zero-accidents.
Opportunity: A key factor behind Harvia’s
success is the skilled and motivated personnel,
whose well-being the company looks after.
Key sustainability elements related to
personnel include promoting well-being and
job satisfaction, attracting and retaining talent,
respecting the rights of employees, and health
and safety at work.
Medium-
term
- Building employee capabilities for future
success, enabling people to thrive at
Harvia
- Assuring work-life balance, e.g., by remote
work possibility (depending on work task)
- Code of Conduct
- Personnel forum
- Work safety committee
- Group-wide employee surveys
- Continuous competence improvement
- Employee benefits
Working
conditions
& Equal
treatment and
opportunities
for all
Potential & Negative:
Working conditions and
opportunities not meeting
employee expectations.
Impact from Harvia
to employees.
Risk: Inability to attract, retain and motivate
qualified individuals in key roles and unsuccessful
career planning may have a negative impact on
the company’s business and employer brand.
Differences in cultures that impact HR topics.
Medium-
term
- Developing Harvia’s employer image
- Career paths
- Group HR
Working
conditions:
Health and
Safety
Potential & Negative:
Health and safety incidents.
Impact from Harvia
to employees.
Risk: Possible work incidents or other health
related issues may have a negative impact on the
company’s performance, business and employer
brand.
Current financial effect: Harvia invested
approximately 45 000 euros in safety
equipment, safety gear and improving working
environment to mitigate the risk.
Short-
term
- Local legislation always obeyed
- Safety training and close call reporting
with continuous improvement
- Health care; early support model
- Investments in safety equipment and
machinery
- Increasing employees’ safety awareness
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S2 Worker’s in the value chain
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Working
conditions
Potential & Negative:
Working conditions
or work-related rights
of the value chain not
up to requirements or
expectations.
Requirements
and expectations
from Harvia as an
impact from Harvia
to the suppliers
and their suppliers
when applicable.
Suppliers impact
their employees
and indirectly also
Harvia.
Efficient operations &
skilled staff: Developing
employee capabilities
for future success and
fostering a supportive
work environment serve
as a basis for Harvia’s
strategic focus areas.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”.
Risk: Possible violations of adequate and
expected working conditions of the value chain.
May pose a possible reputation damage and
affect consumer and investor behavior.
Medium-
term
- Harvia Supplier Code of Conduct
- Supplier audits and assessments
- Supplier management and cooperation
- Long-term supplier partnerships
Working
conditions
Actual & Positive:
Promoting good working
conditions in the value
chain.
Opportunity: Exposing the value chain to
Harvia’s expectations and requirements of good
working conditions to retain and develop mutual
sustainable long-term business partnership.
Medium-
term
- Harvia Supplier Code of Conduct
- Supplier audits and assessments
- Supplier management and cooperation
- Long-term supplier partnerships
Other work-
related rights
Actual & Positive:
Promoting work related
rights (child labor, forced
labor).
Opportunity: Harvia is strictly against child
labor and forced labor and requires its suppliers
to comply with this. Exposing the value chain
to Harvia’s expectations and requirements of
work-related rights to retain and develop mutual
sustainable long-term business partnerships.
Medium-
term
- Harvia Supplier Code of Conduct
- Supplier audits and assessments
- Supplier management and cooperation
- Long-term supplier partnerships
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S4 Consumers and end-users
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Personal safety
of consum-
ers and/or
end-users
Actual & Positive:
Safe, high-quality products
and services promoting
overall health and wellbeing
of consumers and end-users.
Potential & Positive:
Increased knowledge of
safe and sustainable use of
Harvia products and sauna.
Impact from Harvia
to customers and
end-users.
Strategic role of Harvia:
“Shaping the global
sauna market so that
everyone has a reason
to experience sauna.”
Increasing the sales of
comprehensive systems
and solutions.
Driving growth in
strategically important
markets.
Leading in key channels.
Harvia Sustainability
Program Commitment
#1: “For good and
healthy living”.
Aspirational long-term
goal related to the
commitment: Everyone
with access to sauna.
Harvia Sustainability
Program Commitment
#2: “For sustainable
experiences &
enjoyment”.
Opportunity: The well-being effects of heat
are the purpose of Harvia’s business. Harvia
is known to have safe products with excellent
price-quality ratio. The trust in Harvia products
and solutions promotes long-term customer
relationships and good reputation. Increasing
demand for sustainable products.
Providing and actively sharing guidance
to end-users in the responsible, safe and
sustainable use of Harvia’s products creates a
positive and reliable image of the company.
Medium-
term
- Product design & testing to ensure safety
- Product quality and safety assurance
- Compliance with product standards
- Guidance on safe and sustainable use
Personal safety
of consumers
and/or
end-users
Potential & Negative:
Potential deviations in
product quality that may
affect safe use of products
and services.
Impact from Harvia
to customers and
end-users.
Risk: A possible failure to meet product safety
and quality standards leading to e.g., potential
accidents and loss of positive reputation.
Short-
term
- Product design & testing to ensure safety
- Product quality and safety assurance
- Compliance with product standards
- Guidance on safe and sustainable use
Social inclusion
of consumers
and/or
end-users
Actual & Positive:
Social inclusion of
consumers and/ or
end-users.
Actual & Positive:
Access to products and
services.
Impact from Harvia
to customers and
end-users.
Opportunity: “Sauna for everyone” is one of
the targets of Harvia, which relates to access
to products and services. Harvia’s mission is to
inspire people around the world to experience
healing with heat.
Medium-
term
- Globally operating business
- Products and services to all
- Harvia customers and partners offer public
opportunities to enjoy the sauna
- Solutions for all, e.g. wide price range
and easy access saunas for people with
disabilities (SmartFold).
Personal safety
of consumers
and/or
end-users
Actual & Positive:
Personal safety of
consumers and/ or
end-users.
Actual & Positive:
Protection of children.
Impact from Harvia
to customers and
end-users.
Opportunity: The safe use and safety of Harvia
products covers all users but Harvia also
specifically increases the knowledge of safe use
of Harvia’s products considering minors. Safety
functions in Harvia’s products and accessories
especially designed for child safety.
Medium-
term
- Compliance with product standards
- Guidance on safe use
- Accessories and product functionalities for
increased safety, e.g. safety railings and
child-lock function
Social inclusion
of consumers
and/or
end-users
Actual & Positive:
Non-discriminating and
inclusion promoting
marketing.
Impact from Harvia
to customers,
end-users and
people exposed to
Harvia marketing.
Opportunity: Marketing of Harvia follows good
marketing practices including truthful and
accurate advertising, promoting diversity and
inclusion and considering child protection.
Medium-
term
- Internal marketing material cross checking
- Harvia code of conduct
- Feedback mechanisms
Information-
related impacts
for consumers
and/or
end-users
Potential & Negative:
Potential customer data
privacy breaches.
Indirectly impact
from Harvia to
customers and
end-users.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”.
Risk: The increase in cyber threats cause risks
of possible disruption to Harvia’s IT-systems
and customer or end-user data breaches. The
potential result may be financial or reputational
damage.
Short-
term
- Commitment and processes to ensure
customer data privacy
- Continuous improvement of IT security
and digital infrastructure
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G1 Business Conduct
Sub/sub-
subtopic
Impact
Actual or Potential &
Negative or Positive
Concentration
Strategy and principles
related to material
impact
Risk or Opportunity &
Current financial effect when applicable
Time-
horizon
Harvia’s response to material impacts,
risks and opportunities
Corporate
culture
Actual & Positive:
Economic value creation
for stakeholders as well as
being an industry leader in
sustainability builds trust
among stakeholders.
Harvia’s impact to
all stakeholders.
Efficient operations and
skilled staff: Deepening
integration within Harvia
Group to drive efficiency
and growth.
Developing employee
capabilities for the
future and supporting
wellbeing and
continuously developing
the sustainability of
Harvia’s operations
and supply chain, serve
as a basis for Harvia’s
strategic focus areas.
Harvia Sustainability
Program Commitment
#4: “For safe and warm
community”.
Opportunity: Harvia creates value for
stakeholders by doing sustainable and profitable
business: Regulations leading to increasing
demand for new, more sustainable products and
business.
Medium-
term
- Harvia Code of Conduct and responsible
business
- Commitment to employee well-being and
satisfaction
- Customer satisfaction survey
Corporate
culture
Potential & Negative:
Potential conflict between
maximizing short-term
performance and employee
satisfaction or stakeholder
expectations.
Harvia’s impact to
all stakeholders.
Risk: Even though in the long run, sustainability
is seen to be profitable, short-term expectations
and changes in the market situation may lead
to possible actions that temporarily impact
employee satisfaction or prevent reaching short-
term targets.
Medium-
term
- Harvia Code of Conduct and responsible
business
- Commitment to employee well-being and
satisfaction
- Customer satisfaction survey
Manage-ment
of relationships
with suppliers
including
payment
practices
Actual & Positive:
Long-term relationships
with Harvia suppliers and
partners and together
developing sustainability.
Harvia’s impact to
suppliers.
Opportunity: Developing sustainability together
on all ESG aspects - Bigger impact and
opportunities together.
Medium-
term
- Harvia Supplier Code of Conduct
- Sustainability in business negotiations
- Partnerships and long-term supplier
relationships
- Cooperation from education and
development perspective
Management
of relationships
with suppliers
including
payment
practices
Potential & Negative:
Non-compliance with
legislation, Harvia
requirements or
expectations in supply chain
- impacts may cause e.g.,
environmental damage or
human rights violations.
Harvia and its
suppliers impact
to wide range
of stakeholders
especially to
employees, worker
in the value chain,
investors and
society.
Risk: Possible violations of the Supplier Code of
Conduct or other possible negative governance
related impacts in supply chains causing not only
possible damage to the environment, people
or society in question, but may also damage
Harvia’s reputation.
Short-
term
- Suppliers’ commitment to Harvia Supplier
Code of Conduct
- Partnerships and long-term supplier
relationships
- Supplier visits, audits and assessments
Corruption and
bribery
Potential & Negative:
Failure to meet corruption
or antibribery standards
may lead to human rights
violations and environmental
harm through unethical
business practices.
Harvia and its
suppliers impact
to wide range
of stakeholders
especially to
employees, worker
in the value chain,
investors and
society.
Risk: Possible violation of related laws, policies
or ethics can generate significant business
damage especially locally.
Short-
term
- Training
- Harvia Code of Conduct
- Whistleblowing channel for reporting
possible grievances
Corruption and
bribery
Potential & Positive:
Prevention of corruption
and bribery in society.
Harvia and its
suppliers impact to
society.
Opportunity: Harvia promotes anti-corruption
and bribery practices.
Medium-
term
- Training
- Code of Conduct training
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Description of process to identify and assess
material impacts, risks and opportunities
In 2023, Harvia started the double materiality
assessment to identify the most significant
sustainability topics for Harvia from two perspectives:
1. How Harvia Group’s business and its value chain
impact people, society or the environment
(impacts in relation to ESG matters), which is the
impact materiality.
2. Whether different aspects of sustainability generate
risks or opportunities affecting Harvia Group’s
financial performance and business development,
which is the financial materiality.
Both processes of defining impact materiality and
financial materiality included the following steps, but
the assessment for impact materiality and financial
materiality was conducted separately:
1. Identification of impacts, risks and opportunities
related to sustainability matters
2. Establishment of methodologies and
prioritizing criteria
3. IRO assessment
4. Management of the impacts, risks and opportunities
1. IDENTIFICATION OF IMPACTS, RISKS AND OPPORTUNITIES
RELATED TO SUSTAINABILITY MATTERS
Harvia’s business strategy, purpose and values as well
as Harvia’s previous materiality analysis were utilized
as background sources for the mapping of topics
and identification of impacts, risks and opportunities.
Additionally, the risks and impacts recognized and
assessed in Harvia’s general risk management process
were considered in the identification. The initial material
topics were cross-checked against EU’s CSRD and
ESRS. EFRAG’s guidelines for conducting a double
materiality assessment were utilized throughout the
process. In addition, Harvia conducted a benchmark
study on material topics.
Harvia’s internal and external stakeholders were
involved in the double materiality assessment process.
Insights on Harvia Group’s material sustainability
impacts, risks and opportunities were collected first
through an online sustainability survey targeted at
the whole personnel and then via in-depth interviews
with both external and internal stakeholders. The
questions in the survey and interviews were derived
from Harvia’s previous materiality analysis and results
of the benchmark study. The survey was answered
by 300 Harvia employees. After gathering initial
insights through the survey, Harvia validated the views
on material impacts by conducting in-depth interviews
with 12 individuals representing Harvia Group’s
management, business partners and suppliers, analysts,
customers from key markets, and relevant associations.
The interviews were also used to map ESG risks and
opportunities. The interviewees were asked to assess
the topics and their impact to Harvia now and in the
future. Finally, the results of the survey and interviews
were mapped against all of the sustainability matters
under the ESRS standard. The feedback, insights and
considerations from stakeholders have been taken into
consideration in the results of the double materiality
and IRO assessment.
The project team, consisting of fifteen members from
Harvia’s different functions and geographical areas,
carried out an initial assessment of Harvia Group’s
material impact and the financial impact on Harvia
Group in two workshops. The topics on which Harvia
Group can have the greatest impact externally (impact
on people, society and the environment) were further
evaluated by a core project team, and the significance
of sustainability impacts, risks and opportunities at
the different stages of Harvia Group’s value chain was
reviewed, as well as the stakeholders’ main information
needs. Affected stakeholders, meaning groups whose
interests are affected or could be affected by Harvia’s
activities, were not directly involved in the workshops,
but their views were taken into account.
After the initial assessment of the material impacts,
risks and opportunities, Harvia deepened its insight of
the impacts, risks and opportunities by describing them
on a more precise level.
2. ESTABLISHMENT OF METHODOLOGIES AND PRIORITISING
CRITERIA
The next phase in the double materiality assessment
was to determine the methodology to prioritize the
identified impacts, risks and opportunities. The IRO
assessment started with the definition of numerical
thresholds and criteria for the assessment.
For impact materiality, the assessment included the
following dimensions: scale, scope, remendability
and likelihood. At the same time, the assessment was
complemented by dividing impacts into the following
categories: positive or negative, actual or potential.
Remendability was considered only for negative
impacts and likelihood only for potential impacts. The
severity was determined based on scale, scope and
remendability. Any of these three dimensions can make
a negative impact severe. If a potential negative human
rights impact is identified, the severity of the impact
takes precedence over its likelihood. The likelihood
was determined in the same way as in Harvia’s general
risk management.
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For financial materiality, the possible connections
between the impacts and dependencies and the risks
and opportunities were identified, and their effects
on Harvia’s business development were described.
It was also evaluated whether these were sources
of risks or opportunities. The following dimensions
were used in evaluating the financial materiality: the
magnitude and likelihood of the financial effect. The
assessment of financial materiality was based on the
euro-denominated risk rating used in Harvia’s risk
management process. The existence of dependencies
on natural and social resources was considered in the
qualitative assessment. The likelihood was determined
in the same way as in Harvia’s general risk management.
The identified impacts, risks and opportunities were
classified in line with the final topical sub-categories of
the ESRS standards.
3. IRO ASSESSMENT
The prioritization of topics was based on the total
numerical score resulting from the scores of the defined
criteria and scoring formula. Harvia set thresholds
to represent a sufficiently comprehensive set of
sustainability topics and information for the company.
Since there were four assessment categories for the
impact assessment with different calculation formulas
for the total score, Harvia ended up defining a set of
four different thresholds for the impact assessment
with following categories and calculation method:
- Actual & negative impact:
Scale + Scope + Remendability
- Actual & positive impact: Scale + Scope
- Potential & negative impact:
(Scale + Scope + Remendability) x Likelihood
- Potential & positive impact:
(Scale + Scope) x Likelihood
The financial materiality score was calculated by
multiplying the potential magnitude of the financial
effect by the likelihood. In addition to the threshold
scores, Harvia used a qualitative assessment when
necessary to prioritize impacts, risks and opportunities.
Harvia took into account the information needs and
views of key stakeholders on topics relevant to the
company and evaluated and mirrored these views
and needs against its own business and business
relationships. Harvia used short- (1 year), medium-
(1-5 years) and long-term (over 5 years) time horizons
in its IRO assessment.
Impacts, risks and opportunities material to Harvia
and the set thresholds were discussed and approved
by Harvia’s Management Team, Audit Committee and
Board of Directors.
Harvia’s material impacts, risks and opportunities
related to the material topics as well as actions to
manage these are described in the table included in
section “Description of the material impacts, risks and
opportunities” under the sub-section “Impacts, risks
and opportunities”.
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Description of the process to identify and assess
material climate-related impacts, risks and
opportunities
Harvia identified and assessed material climate-
related impacts, risks and opportunities in its double
materiality assessment. Harvia first evaluated its
own business activities and their impacts (GHG
emissions) against the GHG protocol. Harvia screened
its own operations and their emissions. Based on the
assessment, the total climate impact of Harvia’s own
business activities is relatively low on a large scale
(approximately 2,000 tCO2e per year), but it is still
important to minimize the impact. Similar approach
was used for upstream value chain evaluation based on
estimated emission and for downstream based on the
usage of Harvia products.
Harvia also used different scenarios in the IRO
assessment phase. The scenarios were related for
example to availability, price and type of energy and
technology, regulatory changes, market shifts, and
climate-related hazards, such as floods, heat stress,
and storms and analyzed their probability to occur
geographically in Harvia’s own operations and along
the upstream and downstream value chain.
The potential climate-related hazards were assessed in
accordance with the dimensions set out in the section
“Establishment of methodologies and prioritizing criteria”.
Harvia reflected the regional climate-related hazards to
the locations where it operates globally and based on
the location, history data and surrounding environment
assessed these not to be material. However, in respect
of potential climate-related hazards, the upstream value
chain may face some potential climate-related hazards
which might cause disturbances in supply chain due
to various locations. Harvia has assessed that potential
climate-related hazards are mitigated by having several
suppliers for key components.
The IRO assessment also considered, on all time-
horizons, whether there are risks arising from the
physical impacts of climate change, i.e. physical risks,
or whether there are risks associated with the shift
towards a lower-carbon energy, i.e. transitional risks.
In addition to the results of the IRO assessment,
Harvia verified and supplemented the results in a
resilience analysis performed after the IRO assessment.
The resilience analysis is found under the chapter
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ESRS E1 Climate Change, section “Transition plan
for climate change mitigation”, where two long-term
emissions scenarios by the Intergovernmental Panel on
Climate Change (IPCC) climate scenarios were used.
In the resilience analysis, the material climate-related
risks were also divided into transitional and physical
risks. This is presented in the section “Climate-related
resilience analysis”. The climate-related resilience
analysis supported Harvia’s risk management as the
results of the analysis were well aligned with previously
identified material climate-related risks.
Additionally, Harvia has assessed how transition events
may affect its business and assets by using previously
identified risks from its ERM, internal data, such as
energy consumption and emissions, and stakeholder
views. The assessment covered all assets and business
activities of Harvia. Harvia identified the following
transition events: possible changes in regulation,
changing customer behavior, cost and availability issues
related to lower-emissions technology, substitution
of existing products and services with lower-emission
options. Assessment was conducted by using the
dimensions set out in the section “Establishment of
methodologies and prioritizing criteria”.
Harvia has identified potential incompatibility of its
operations in regions where emission-free energy is
not freely available with transition to climate-neutral
economy, but this will be further analyzed when
drafting the climate transition plan. The climate-related
risks have been identified prior to the IRO assessment
in Harvia’s ERM process. The climate scenarios used
and the risks identified in the IRO process, align well
with the climate-related assumptions made in the
Financial Statements. Harvia’s risk management covers
all aspects of business, with climate-related resilience
analysis being one element.
Harvia’s material impacts, risks and opportunities
related to climate change as well as Harvia’s response
to manage them are described in the table included
in section “Description of the material impacts, risks
and opportunities” under the sub-section “Impacts,
risks and opportunities”.
Description of the process to identify and assess
material impacts, risks and opportunities related
to resource use and circular economy
Harvia identified and assessed material impacts, risks
and opportunities related to resource use and circular
economy in its double materiality assessment. Harvia
analyzed and identified resource inflows, resource
outflows and waste in its own operations and value
chain’s operations. Harvia has screened its assets
and activities when identifying impacts, risks and
opportunities. This was based on Harvia’s purchases,
sales and waste data. Data delivered by Harvia’s
suppliers related to the materials and recyclability of
the material supported the assessment. Additionally,
material consistency of Harvia’s products was
evaluated from recyclability point of view. Harvia also
gathered data related to waste to assess the amount
and nature of waste generated via its operations. The
lifecycle of Harvia’s products was also assessed. One
of Harvia’s outflows, spare parts, was considered and
assessed as part of the circular economy.
Harvia did not directly consult with affected
communities when assessing impacts, risks and
opportunities. Harvia’s business is dependent on the
availability of main raw materials, which are wood
and steel, used in the manufacturing of Harvia’s
products, as well as heater stones.
Description of the process to identify and assess
material impacts, risks and opportunities related
to own workforce
Harvia identified and assessed material own workforce-
related impacts, risks and opportunities in its double
materiality assessment. Harvia’s business, innovations
and business growth are dependent on talented
workforce. Harvia’s strategy and business model take
into account the personnel’s well-being, which is both a
risk and an opportunity. In the IRO assessment, Harvia
has identified that risks related to health and work
safety are likely to impact more production workers
due to the physical working conditions with tools and
machines. The project team that identified and assessed
the impacts, risks and opportunities was composed
of experts from different functions to ensure a broad
perspective on various aspects and contexts.
Description of the process to identify and assess
material impacts, risks and opportunities related
to workers in the value chain
Harvia identified and assessed material impacts, risks
and opportunities related to workers in the value chain
in its double materiality assessment. Identified and
assessed material impacts, risks and opportunities relate
to Harvia’s business model and environment and are
focused on Harvia’s upstream value chain, promoting
good working conditions, potential misconduct among
its suppliers or on work-related rights or deeper in
the upstream value chain in the purchasing of raw
materials and components used in Harvia’s products.
Harvia identified and assessed that all material negative
impacts were potential. In the IRO assessment, Harvia
has identified that potential violations of adequate
working conditions are a higher risk for factory workers
and workers doing manual work due to the nature of
the work and the working environment.
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Description of the process to identify and assess
material impacts, risks and opportunities related
to consumers and end-users
Harvia identified and assessed material impacts, risks
and opportunities related to consumers and end-users
in its double materiality assessment. Use of Harvia’s
products promote health and well-being of consumers
and end-users, which has positive impacts. Harvia
provides, directly or through its partners, guidance
for the safe and environmentally good way of using
its products. Harvia products are used by consumers
and end-users, including minors, and ensuring product
safety is therefore essential to mitigate safety risks, but
also potential business risks and negative impacts.
Description of the process to identify and assess
material impacts, risks and opportunities related
to business conduct
Harvia identified and assessed material impacts,
risks and opportunities related to business conduct
in its double materiality assessment. The identified
material impacts, risks and opportunities are related
to corporate culture, management of relationships with
suppliers including payment practices and corruption
and bribery. In the assessment Harvia’s operations’
geographic locations, activity, sector and business
structure have been taken into account.
NON-MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Description of the processes to identify and assess
material impacts, risks and opportunities related
to pollution
Harvia identified and assessed material impacts, risks
and opportunities related to pollution in its double
materiality assessment. Harvia screened all its site
locations and business activities when identifying its
actual and potential impacts, risks and opportunities
related to pollution in its own operations. Harvia
identified the materials and components used for its
products and evaluated how the production of such
materials and components might pollute. Considering
the other end of the value chain Harvia considered
the pollution from the usage of its products. Harvia
compared impacts occurred from the manufacturing
of the materials and products and usage of Harvia’s
products to large-scale impacts. Harvia did not directly
consult with affected communities when assessing
impacts, risks and opportunities.
Description of the processes to identify and assess
material impacts, risks and opportunities related
to water and marine resources
Harvia identified and assessed material impacts,
risks and opportunities related to water and marine
resources in its double materiality assessment. Harvia
screened its assets and activities when identifying its
actual and potential impacts, risks and opportunities
related to water and marine resources and assessed
this in its own production in upstream and downstream
value chain. Harvia assessed its own production
and downstream water use to be minor, as the
manufacturing process or the usage of the products
does not require significant water resources. Harvia
assessed its share of water usage in the downstream
value chain during material production and found
it to be minor. Harvia did not directly consult with
affected communities when assessing impacts, risks
and opportunities.
Description of the processes to identify and
assess material impacts, risks and opportunities
related to biodiversity and ecosystem
Harvia identified and assessed material impacts, risks
and opportunities related to material biodiversity
and ecosystem in its double materiality assessment.
Harvia identified and assessed its actual and potential
impacts on biodiversity and ecosystems at its own site
locations and assessed whether they are located in or
near biodiversity-sensitive areas and whether activities
related to these sites negatively affect these areas.
One of Harvia’s sites is located in biodiversity-sensitive
area “Natura 2000”. Harvia assessed whether the site
negatively affects Natura 2000 area or its habitats and
species. The site has ISO 14001 certification, and the
environmental risks are evaluated regularly. As part of
ISO 14001, the site is also regularly audited.
Harvia assessed also the impacts, risks and
opportunities of its downstream and upstream value
chain related to biodiversity and ecosystem. Harvia
identified the use of wood in its upstream value chain.
However, Harvia assessed that the wood material used
in its production is minor compared to that used in
the construction business, for instance. In addition,
the company sources wood from certified suppliers,
depending on availability in various markets. Since
Harvia’s impact is assessed minor, no biodiversity
mitigation measures have been identified as necessary.
Harvia has not recognized dependencies or systemic
risks related to biodiversity and ecosystems.
Harvia has not divided the analyzed risks related to
biodiversity and ecosystems in transition and physical
risks nor conducted consultations with the affected
communities on the sustainability assessments of
shared biological resources and ecosystems.
4. MANAGEMENT OF THE IMPACTS, RISKS AND
OPPORTUNITIES
Harvia’s ERM process covers all risks, including
sustainability risks, but the more detailed IRO
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assessment is done for the sustainability risks based on
the ESRS requirements.
Both in terms of risks and opportunities, the process
is integrated into normal business operations, and
the relevant aspects are brought to the attention of
the necessary people. Commitment owners and a
sufficiently broad range of evaluators also take into
account the issues of the operations in the assessment
of risks and opportunities.
Harvia has identified, assessed and managed impacts,
risks and opportunities according to the process
described above for the first time during the reporting
year. Previously assessing the sustainability impacts,
risks, and opportunities has not been as systematic
and detailed, however the process confirmed that
Harvia has been even before this detailed assessment
well aware of its material sustainability impacts, risks
and opportunities.
Harvia has described its actions to manage material
impacts, risks and opportunities in table set out in
section “Impacts, risks and opportunities” under the
sub-section “Description of the material impacts, risks
and opportunities”. Harvia will take into account the
results of the IRO assessment in its operations and
in developing its due diligence processes further,
including practices, policies, targets and metrics.
Disclosure Requirements in ESRS covered
by sustainability statements
The ESRS (European Sustainability Reporting
Standards) disclosure requirements that Harvia reports
in this Sustainability Statement for 2024 are listed on
Appendix 2. The disclosure requirements are based on
the results of the double materiality assessment and the
supplementary IRO assessment performed in 2024.
In this Sustainability Statement for financial year 2024,
Harvia has utilized the opportunity for phased-in
disclosure requirements under paragraph 10.3 of
the ESRS1 to omit all disclosure requirements under
S1 (Own workforce), S2 (Workers in the value chain),
and S4 (Consumers and end-users). In addition, Harvia
has utilized the opportunity to omit the following
disclosure requirements:
- ESRS 2 Strategy, business model and value
chain (SBM-1): Breakdown of total revenue by
significant ESRS sector and list of additional
significant ESRS sectors
- ESRS 2 Material impacts, risks and opportunities
(SBM-3): The anticipated financial effects of the
undertaking’s material risks and opportunities on
its financial position, financial performance and
cash flows over the short-, medium- and long-term,
including the reasonably expected time horizons
for those effects
- ESRS E1 GHG Emissions (E1-6): Datapoints on
scope 3 emissions and total GHG emissions
- ESRS E1 (E1-9): Anticipated financial effects from
material physical and transition risks and potential
climate-related opportunities
- ESRS E5 (E5-6): Anticipated financial effects from
resource use and circular economy-related impacts,
risks and opportunities
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DISCLOSURE OF TOPICS ASSESSED NOT TO BE MATERIAL
In preparation of the IRO assessment, Harvia determined criteria and thresholds for
materiality. Based on the use of set thresholds against identified impacts, risks and
opportunities and the results of the IRO assessment, the ESRS standards that did not
exceed the materiality threshold are the following: E2 Pollution, E3 Water and marine
resources, E4 Biodiversity and ecosystems, and S3 Affected communities.
Standard Explanation
E2 Pollution Harvia has not identified impacts related to pollution of water or soil.
Harvia’s impacts on air pollution in its own operations or from the usage of
the products are minor, and therefore not considered material. Harvia does
offer cleaner burning solutions, but today, without general and harmonized
regulation, the impacts, risks, and opportunities can be considered material
depending on end-users' choices and product usage. Harvia is actively guiding
customers and end-users on sustainable use of Harvia's products. This will be
reported according to standard S4 Consumers and end-users in 2025. Harvia
has mitigated possible impacts from upstream value chain by selection of
suppliers with whom Harvia can develop mutual, sustainable and long-term
business partnership.
E3 Water
and marine
resources
In Harvia Group’s own operations, water is mainly used in painting lines.
The usage of water is limited, and Harvia follows the local regulations in all
locations. Impact of this activity has been considered very limited. Harvia has
mitigated possible impacts from upstream value chain by selection of suppliers
with whom Harvia can develop mutual, sustainable long-term business
partnership.
E4
Biodiversity
and
ecosystems
Harvia Group’s primary means of supporting global biodiversity conservation
is by reducing greenhouse gas emissions and increasing recycling efforts,
which helps to preserve natural resources. The direct effects of Harvia Group’s
operations on biodiversity are minor. Harvia Group's production facilities are
not located in biodiversity sensitive areas apart from EOS factory in Germany.
EOS has ISO 14001 certificate and complies with local regulation, ensuring
responsible environmental management and limited harm to surrounding
environment. In the raw material chain, Harvia has mitigated possible impacts
from upstream value chain by selection of suppliers with whom Harvia can
develop mutual, sustainable and long-term business partnership. The use
of wood is relatively minor and Harvia uses certified wood suppliers when
possible.
Standard Explanation
S3 Affected
communities
Harvia has always been working closely with local organizations, such as
schools and other businesses, and committing to involvement in research,
industry standardization, and innovation. This has been part of Harvia Group’s
good governance and business ethics practices. However, the business
risks and opportunities related to Harvia’s impacts and dependencies on
local communities are minor. Harvia’s actual and potential impacts on e.g.
communities’ economic, social and cultural rights have been assessed as low.
DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION
Appendix 3 presents the datapoints that derive from other EU legislation and the
indication where they can be found in this Sustainability Statement, including those
that Harvia has assessed as not material, in which case the Harvia has indicated
“Not material” in the table.
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ESRS E1 CLIMATE CHANGE
Material impacts, risks and opportunities
related to climate change
Harvia’s material impacts, risks and opportunities
presented in chapter “General disclosures”, section
“Material impacts risks and opportunities related to
climate change” are summarized below:
Actual impacts, negative:
- GHG emissions (own operations and value chain)
- Energy consumption, especially when renewable
and emission-free energy is not available
Potential impacts, negative:
- Regulation changes - gaps
- Customer needs or expectations not met -
change in customer behavior
Actual impacts, positive:
- Increased availability of products with reduced
environmental impact
Potential impacts, positive:
- Regulation changes - compliance
Risks
- Change in customer behavior
- Availability issues from suppliers
- Emission free and renewable energy availability
- Changes in regulation and customer expectations
- gaps in meeting the requirements
Opportunities
- Contribution in limiting global warming and
driving the change
- Changes in regulation and customer expectations
- regulatory compliant solutions meeting the
expectations give a competitive edge
Transition plan for climate change mitigation
Harvia does not currently have a transition plan in
line with the requirements of ESRS E1. However, the
company is committed to preparing one as part of its
updated Sustainability Program for 2026 onwards,
which will be completed in 2025.
Harvia originally set an emission reduction target for
its own operations by 2030 aiming for zero emissions,
as part of its Sustainability Program 2022-2025. The
target included reducing emissions wherever feasible
and compensating the remaining emissions, excluding
potential remaining emissions in the United States and
China where emission-free electricity is not available to
fully cover Harvia’s needs. Since then, the company has
grown significantly, particularly in the United States,
where increased business and production volumes as
well as an acquisition have impacted emissions. The
key challenge is the limited availability of renewable
or emission-free electricity in Harvia’s facilities in the
above-mentioned regions.
Recognizing these developments, this target is no
longer valid. Harvia will reassess its carbon reduction
targets and define a climate transition plan in 2025.
This plan will reassess Harvia’s carbon reduction targets
based on the latest operational realities and regulatory
requirements. While the company continues to follow
its existing sustainability program and seeks to reduce
emissions where feasible, it acknowledges that full
emission reduction cannot be achieved in locations
where emission-free or renewable energy is not
available, and compensation will no longer be relied
upon as the primary solution.
The key actions supporting climate change mitigation
are outlined in the section “Actions and resources in
relation to climate change policies”.
CLIMATE-RELATED RESILIENCE ANALYSIS
Harvia conducted a climate resilience analysis in
2024 to further evaluate climate-related risks and
opportunities, building on the insights gained from
the IRO assessment. This analysis takes mostly a
long-term view of the company’s ability to adapt to
and mitigate the impacts of climate change. Harvia’s
sustainability management together with operations
conducted the resilience analysis in 2024 and it was
approved on 3rd December 2024 by the Head of
Operations.
The scope of the resilience analysis was climate
change resilience covering the entire value chain.
Harvia considered two different scenarios in
evaluating the climate related resilience:
1. IPCC SSP1-1.9 scenario, which is aligned with
the Paris agreement and is targeted to limit the
global warming to 1.5˚C. From climate mitigation
perspective, this scenario will require strict policies,
global cooperation on carbon pricing and rapid
utilization of new technological solutions to reduce
the greenhouse gas emissions and reach net-zero
in 2050. Extreme weather conditions are more
frequent, but the radical consequences of climate
change are avoided.
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2. IPCC SSP2-4.5 scenario with approximately 2.7˚C
global warming by the end of the century. In this
scenario, greenhouse gas emissions remain at
around current level until mid-century before they
start declining. Progress towards targets is relatively
slow and the regulative and technological transition
is modest. Extreme weather conditions are frequent,
sea level will rise and there will be impacts on
ecosystems and biodiversity.
The scenarios were selected based on the likelihood of
the scenario and for the timeframe being reasonable to
predict the possible risks and impacts.
In scenario 1, the material risks identified were more
transitional rather than physical. Due to increased
regulation and carbon pricing Harvia estimates a
moderate increase in carbon taxes and energy costs
especially on the medium- and long-term time horizon
while the technology for more sustainable solutions is
still under rapid development. At the same time, Harvia
sees great potential in being the leader of the industry,
complying with increasing regulation and investing
in more sustainable solutions in its operations and
offering. Investments will be needed to reduce energy
consumption and emissions.
In scenario 2, the risks were assessed to be more
physical rather than transitional. This is because of the
more frequent extreme weather conditions and less
pressure from regulatory requirements. The increase
of physical risks is more likely on the long-term time
horizon.
Even if the regulatory pressure in scenario 2 is
smaller, it is expected that there will still be demand
from customers and end-users for more sustainable
and energy-efficient solutions, and Harvia’s leading
role in the industry will be a significant competitive
advantage. Harvia’s own operations are assessed not
to be exposed to high-level risks, and potential impacts
remain manageable and temporary, even when extreme
weather conditions become more frequent and intense.
Harvia’s strength lies in its extensive network of
suppliers, long-term partnerships and flexible in-house
operations. These will continue to ensure Harvia’s
security of supply even in unusual situations. A global
market helps to balance overall demand, even if there
are acute or long-term changes in some markets.
Harvia’s business model, strategy, operations and
governance structures support climate resilience well
for both scenarios analyzed also from risk management
perspective. Harvia’s climate risks are considered in
the Group’s risk management process and are well
managed on a regular basis and on a broad scope in
terms of risk assessment, identification and response.
Harvia has the capability to adapt its strategy as
required. However, based on the current analysis, no
immediate adjustments are necessary in the short-term.
The company will develop a detailed climate transition
plan in 2025, which will serve as the foundation for
the sustainability program continuation regarding the
planning and target setting of the climate commitment.
In addition to these concrete actions, the resilience
analysis for climate-related risks will serve as a basis for
assessing potential strategic or business model changes
in the medium- and long-term.
Policies related to climate change mitigation
and adaptation
Harvia does not have a separate climate change-
related policy. However, Harvia’s Sustainability Policy
addresses the main principles and rules followed by
Harvia Group in relation to ESG aspects, including
climate change. In Harvia’s Sustainability Program for
2022-2025 Harvia has set a Group-wide commitment
to mitigating climate change.
HARVIA’S CLIMATE-RELATED PRINCIPLES
Harvia’s Sustainability Program Commitment #3
“For minimizing our environmental footprint”, covers
climate change mitigation, energy efficiency and the
use of renewable energy. The commitment principles
related to climate change are:
- We actively look for ways to reduce greenhouse
gases of purchased materials and upstream and
downstream logistics
- Renewable energy is used in our production and
offices whenever feasible
- Our offering is modular, and the number of stock
keeping units (SKUs) is continuously optimized
The commitment #2 “For sustainable experiences &
enjoyment”, covers the innovating and development of
products that reduce emissions and optimize energy
consumption, which are important considering the
emissions from the use of Harvia products.
Harvia’s Sustainability Program sets out guidelines for
climate change-related topics and is aligned with the
impacts, risks and opportunities identified during 2024.
Only the potential risk stemming from exceptional
situations or acute hazards, such as availability issues
from suppliers, is not directly covered by the program,
but indirectly the principles under the Sustainability
Program Commitment and the actions help to mitigate
this potential risk. Harvia’s climate-related principles
are also linked to Harvia’s strategic foundation and go
hand in hand with the pursuit of energy and resource
efficiency and savings.
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The commitment “For minimizing our environmental
footprint” and the strategic priorities of sustainability
development are managed by the Head of Operations
at Harvia Group. Commitment “For sustainable
experiences & enjoyment” and R&D are managed by
the Head of innovation and Technology. Harvia will
consider the need for a separate policy for climate
change when renewing the Sustainability Program in
2025. When setting the principles, stakeholder views
and expectations have been considered by involving
people at Harvia who regularly interact with different
stakeholders and thus understand their expectations
and needs, but stakeholders have not been directly
involved. Stakeholders expect Harvia to act responsibly
when it comes to any climate-related topics. The
sustainability policy and commitments related to
climate change are publicly available on Harvia’s
website.
Actions and resources in relation to climate
change policies
To address the actual or potential impacts and
the risks and opportunities described in chapter
“General disclosures”, section “Material impacts, risks
and opportunities”, Harvia has conducted several
actions which are listed as “Recent and current key
actions”. In line with Harvia’s principles under the
Sustainability Program and aspirational goals, Harvia
intends to continue investing in the development of
energy-efficient and more sustainable solutions in
its offering, its own operations and its value chain.
These are described below under the heading “Future
key actions”. The actions are divided according to
which decarbonization lever they are most essentially
related to.
ENERGY EFFICIENCY
Recent and current key actions
- Oil heater optimization at the EOS site in Germany,
which was implemented in June 2022, but the actual
annual impacts and savings were not verifiable
until 2023 and 2024. The expected energy saving
was about 25% and actual savings based on oil
consumption is approximately 20% compared to
energy use before the optimization, contributing
to an average of 70 tCO2e annual GHG emission
reduction for the entire Group. The CapEx for this
investment was EUR 60,000 in 2022.
- Reflow oven at EOS for more energy-efficient
electronics manufacturing, which was implemented
in the beginning of 2023, but the actual annual
impacts and savings were not verifiable until 2024.
The expected and actual annual energy savings are
approximately 20% compared to energy use before
the optimization. Since EOS uses only renewable
energy sources, this investment has not reduced
emissions. The CapEx for this investment was
EUR 90,000 in 2023.
- Investments in R&D to develop energy-efficient and
more sustainable solutions, such as automation for
energy-efficient control and solar-powered outdoor
electric sauna. The total amount of R&D-related
capital expenditures that were taxonomy aligned
or eligible according to the EU taxonomy was in
2024 approximately EUR 310,000. The related note
regarding investments in the Financial Statements
is 3.2 Intangible assets and impairment testing:
development expenditure. Regarding the solar-
powered sauna, this action also impacts positively
in use of renewable energy. Actual energy efficiency
impact of the solar-powered sauna has been
evaluated to be approximately 60%. Normally, a
9-kW heater is installed in an electrically heated
outdoor sauna, but the medium model solar-
powered sauna features a 3.6-kW heater. Smaller
heater was chosen for this sauna due to its effective
thermal insulation and triple-pane windows and
doors. This action will impact the scope 3 emissions,
category 11: Use of sold products, and not Harvia's
scope 1 and 2 emissions.
USE OF RENEWABLE OR EMISSION-FREE ENERGY
Recent and current key actions
- Heat pump technology at the Kirami site in
Sastamala, Finland. The new heat pump is more
energy-efficient and replaces almost completely the
use of light fuel oil at Kirami site in Finland. The main
decarbonization lever is the use of renewable and
emission-free energy, but this action also impacts
positively in energy efficiency. The new heat pump
was taken in use at the end of year 2024 and the
actual savings in the emissions are not verifiable
until 2025. Expected annual emission reduction is
estimated to be 54 tCO2e. OpEx from 2025 onwards.
Future key actions
- Implementing a hybrid thermal plant at EOS
factory in Germany during 2025 to replace
current oil heating with 100% carbon-neutral
solutions. The investment is estimated to reduce
the scope 1 GHG emissions of the entire Harvia
Group by approximately 30%, contributing to the
total GHG emissions with an estimated reduction
of 300 tCO2e. This action impacts positively also in
energy efficiency. Future CapEx allocated for this is
EUR 1.5 million.
- Installing solar power systems in China and in
the U.S., where emission-free energy is not easily
available, during 2025-2026. The expected decrease
of emissions from electricity in China will be
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about 65%, contributing to the total emission with
an estimated reduction of 300 tCO2e. The design
work for the solar power system in the United States
is underway, and emission reductions cannot yet be
estimated. Future CapEx allocated for solar power
systems is EUR 600,000.
The key actions are estimated to reduce total annual
emissions of the operations of Harvia Group by
approximately 700 tCO2e, which is almost 30% of all
scope 1 & 2 emissions in the reporting year.
Recent and current actions have no significant capital
expenditure (CapEx) or operating expenditure (OpEx)
implications that would affect the current Financial
Statements. The Financial Statements reflect the past
financial year and do not address future investments.
EXAMPLES OF OTHER ACTIONS TO ADDRESS IMPACTS,
RISKS AND OPPORTUNITIES OF CLIMATE CHANGE
To reduce energy use Harvia has also implemented
online measurement of electricity consumption at all
production sites, enabling energy use optimization as
well as identification and resolution of inefficiencies.
To drive electrification, Harvia has invested in electrical
forklifts and charging stations for electrical vehicles.
To increase the share of renewable and emission-
free energy sources, Harvia has a solar power plant
at Muurame site. To decarbonize the supply chain,
Harvia has optimized road freight routes in the EU
and reduced overlapping inventories to reduce
transportation carbon footprint. Harvia has also
educated consumers and end-users in the sustainable
use of Harvia products. In 2025 Harvia will develop
the efficiency and accuracy of scope 3 emission data
collection and calculation and make the transition plan
for climate change mitigation.
Harvia has not taken any remedying actions for those
harmed by actual material impacts related to climate
change mitigation and energy.
Harvia will include the overall description of expected
decarbonization levers and their overall quantitative
contributions in the transition plan for climate
change mitigation.
Harvia acknowledges that significant financial resources
will be needed for investments to reduce emissions.
When the climate transition plan is established, the
financial resources allocated for future actions will be
defined in more detailed.
Targets related to climate change mitigation
and adaptation
Harvia currently does not have climate targets. Due to
the significant business growth in the United States,
where the availability of emission-free electricity for
Harvia’s needs is limited, the prior target to reduce
all emissions in its own operations by 2030 is no
longer feasible.
Harvia remains committed to reducing emissions
and will continue to implement reduction measures
as described in section “Actions and resources
in relation to climate change policies”. Harvia will
develop a climate transition plan as part of its updated
Sustainability Program for 2026-2030, to be completed
in 2025. This plan will reassess Harvia’s carbon
reduction targets based on the latest operational
realities and regulatory requirements.
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Energy consumption and mix
Energy consumption (1,000 MWh) 2023 2024 Change
Total energy consumption 15.2 15.6 2%
Total fossil energy consumption 5.0 6.1 17%
Fuel consumption from coal and coal products 0 0 0%
Fuel consumption from crude oil and petroleum products 3.7 4.1 10%
Fuel consumption from natural gas 0 0 0%
Fuel consumption from other fossil sources 0 0 0%
Consumption of purchased or acquired electricity, heat,
steam, and cooling from fossil sources 1.3 2.0 34%
Share of fossil sources in total energy consumption 33% 39% 6%
Consumption from nuclear sources 3.3 3.7 10%
Share of consumption from nuclear sources in total energy
consumption 22% 24% 2%
Total renewable energy consumption 6.9 5.8 -18%
Fuel consumption from renewable sources 0 0 0%
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources 4.2 4.2 0%
Consumption of self-generated non-fuel renewable energy 2.6 1.6 -65%
Share of renewable sources in total energy consumption 45% 37% -8%
Non-renewable energy production 2.0 2.2 10%
Renewable energy production 2.6 1.6 -65%
Total energy consumption from activities in high climate
impact sectors per net revenue from activities in high climate
impact sectors 0.1 0.1 0%
The energy consumption and mix data is based on the GHG emissions data collection
and accounting. For those countries where the market-based data is not available,
location-based data of the energy mix from the Carbon Database Initiative has been
used. These countries include China, Japan, the United States, Italy and Estonia.
The total energy use of Harvia Group increased by 2% in 2024 compared to 2023.
Biggest increase was in consumption of fossil energy, 17%, primarily due to the highest
increases in purchased energy in the United States and China, where fossil energy is
used the most and emission-free energy is not freely available in the areas of Harvia
facilities. The fuel consumption from crude oil and petroleum products also increased
by 10%, from increases of petroleum gas use at Harvia Finland and heating oil at
EOS in Germany. The share of renewable energy consumption decreased by 8% due
to the increase in fossil fuel shares. The big decrease in consumption of self-generated
non-fuel renewable energy was due to less heating with biomass than in 2023.
Based on Harvia’s most significant products and services, all of Harvia’s business
activities have been considered to operate in high-climate impact sectors. The net
revenue used is EUR 175.2 million, as reported in the Financial Statements.
GHG emissions
Energy consumption, Base year Change
scope 1 & 2 (tCO2e) 2021 2022 2023 2024 2023 Base year
Scope 1 GHG emissions
Gross Scope 1 greenhouse gas
emissions 1,269 1,196 947 1,027 8% -19%
Scope 2 GHG emissions
Gross location-based Scope 2
greenhouse gas emissions - - 2,259 - -
Gross market-based Scope 2
greenhouse gas emissions 1,292 881 923 1,404 52% 9%
Total Scope 1 & 2 GHG emissions
Total GHG emissions
(location-based) - - 3,287 - -
Total GHG emissions (market-based) 2,561 2,077 1,870 2,432 30% -5%
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2024 GHG emissions by business unit
scope 1 & 2 (tCO2e) Scope 1
Scope 2
market-
based
Scope 2
location-
based
Total
market-
based
Total
location-
based
Harvia Finland (Finland) 198 37 544 236 742
Kirami (Finland) 108 0 24 108 132
Sauna-Eurox (Finland) 69 0 59 69 128
Harvia Estonia (Estonia) 15 26 33 41 48
EOS (Germany) 518 0 219 518 737
Harvia Austria (Austria) 34 8 29 43 64
Domo (Romania) 34 80 99 115 135
Phoenix El-Mec (Italy) 0 37 37 37 37
Harvia China (China) 18 451 451 469 469
Harvia Japan (Japan) 0 25 25 25 25
Harvia US (U.S.) 32 673 673 705 705
ThermaSol (U.S.) 0 67 67 67 67
Total 1,027 1,404 2,259 2,432 3,287
Harvia uses the GHG Protocol to calculate the GHG emissions. Changes to the
previously reported data, such as emission factors, can be found in the section
“General basis for preparation”.
The direct emissions, scope 1 CO2e, covers all direct emissions from Harvia owned
or controlled sources, including fuels of cars and forklifts owned and used by Harvia,
self-produced energy for heating from light fuel oil and burning wood and direct
emissions from processes using methane. The local companies report the consumption
to the centralized emission accounting. In the emission accounting, the consumption
of the energy is multiplied by the emission factor. The emission factors used for
scope 1 accounting are from Defra (2024).
Scope 2 emissions include purchased electricity and purchased heat, with energy
sources of district heating and natural gas. For the market-based scope 2 emissions,
the energy supplier provides either the total emissions or the emission factor. The
consumption of the energy along with supplier-specific emission factor or total
emissions is reported from each company to the centralized emissions accounting. The
consumption of the energy is multiplied by the emission factor. For location-based
scope 2 emissions, a country-specific emission factor from Carbon database initiative
(2024) was used. For purchased heat, the emission factor was obtained from Defra,
except for district heating, where an emission factor from Statistics Finland (2022)
was used. For 2024 scope 2 emissions, Harvia calculated location-based data for
the first time. For market-based GHG accounting at facilities where energy suppliers
or landlords did not provide market-based data, location-based emission factors
from the Carbon Database Initiative were used. These facilities include Harvia China,
Harvia Japan, Harvia US, ThermaSol in the United States, Phoenix El-Mec in Italy and
Harvia Estonia.
In the reporting year, two new companies, ThermaSol and Harvia Japan joined the
Harvia Group, and Phoenix El-Mec from Italy was included in the GHG accounting
since beginning of 2024, increasing scope 1 and 2 emissions compared to previous
year. Harvia Japan contributed to the GHG emissions since the second quarter, when
the operations started and ThermaSol since the beginning of August, when it joined
the Harvia Group. The total emissions from the new companies included in the GHG
accounting was approximately 130 tCO2e. Harvia will update the baseline values
according to the GHG protocol in regard to the acquisitions.
Biggest emissions in 2023 and 2024 were in the United States, China, and Germany,
representing approximately 70% of total emissions. The planned and ongoing
investments are targeted to reduce the emission significantly as presented in section
“Actions and resources in relation to climate change policies”. The total market-based
scope 1 and 2 GHG emissions increased by 30% compared to previous year. This is
mainly due to the significant production increases at Harvia US and Harvia China,
where the scope 2 emissions increased significantly, as emission-free electricity is not
freely available and the emission intensity in relation to production is higher.
The comparison between market-based and location-based scope 2 emissions shows
that Harvia effectively utilizes the opportunity for emission-free electricity whenever
possible, resulting in market-based scope 2 GHG emissions almost 30% lower than
location-based scope 2 emissions.
GHG Intensity, scope 1 & 2 2023 2024 Change
Scope 1 & 2 market-based GHG emissions in relation to
production volumes (kgCO2e/pc) 3.7 4.1 10%
Scope 1 & 2 market-based GHG emissions in relation to net
revenue (gCO2e/EUR) 12.4 13.9 12%
Scope 1 & 2 location-based GHG emissions in relation to net
revenue (gCO2e/EUR) - 18.8 -
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The market-based scope 1 and 2 GHG emissions in relation to production volumes
have been calculated by using an index, to balance the different types of products into
a comparable value. The index is calculated for each company separately by dividing
monthly production quantity of end-products by monthly work hours. The final index
is the average from the entire year. The year-end total quantity is divided by the
total index, to calculate the balanced production volume. Finally, the total emissions
from all companies is divided by the total balanced production volume. This metric
considers only production facilities with standard end-products, meaning project work
or component manufacturing is not included. Harvia Austria, Harvia Estonia, Harvia
Japan and Phoenix El-Mec and the emissions from those companies are not included
in the calculation. ThermaSol is included in the metric for the time belonging to the
Group. The GHG emission in relation to net revenue has been calculated by dividing
the total emissions by net revenue. The net revenue used is EUR 175.2 million, as
reported in the Financial Statements.
Between 2023 and 2024 the scope 1 and 2 emissions relative to production volumes
increased by 10%. The total production volume increased approximately 20% and
mostly in the United States and China, where the emission intensities are higher.
Also, ThermaSol, located in the United States, increased the emissions relative to
production volumes with higher emission intensity. The scope 1 and 2 market-based
emission intensities increased relative to net revenue with 12%. The metric of emissions
relative to production volume is not validated by an external body other than the
assurance provider.
Biogenic emissions of CO2 from combustion or bio-degradation of biomass not
included in scope 2 GHG emissions are 1,493 tCO2e.
Harvia has a contract with the electricity supplier for renewable energy at EOS in
Germany and for CO2-free electricity in Finland at Muurame factory, Sauna-Eurox
and Kirami. Percentage of contractual instruments, scope 2 GHG emissions is 45%.
This is calculated by comparing market-based scope 2 electricity consumption
(MWh) tied to contractual instruments with total energy generation (MWh) related
to scope 2 emissions. Harvia does not use contractual instruments to purchase
unbundled energy attribute certificates for scope 2 GHG emissions. Therefore, the
proportion of scope 2 GHG emissions covered by contractual instruments used to
purchase electricity with generation-related attributes is also 45%, and the proportion
covered by contracts used to purchase unbundled energy attribute certificates is 0%.
Datapoints on scope 3 emissions and total GHG emissions shall be reported on the
financial year 2025 in 2026.
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ESRS E5 RESOURCE USE AND
CIRCULAR ECONOMY
Material impacts, risks and opportunities
related to resource use and circular economy
Harvia’s material impacts, risks and opportunities
related to resource use and circular economy:
Actual impacts, negative:
- Use of natural resources and raw materials
- Generation of waste
Actual impacts, positive:
- Sustainable material choices and optimization
of materials
- Responsible use and sourcing of natural resources
and raw materials
- Measures to extend product lifecycle and reduce
emissions
- Drive sustainability forward through sustainable
products and innovations
Risks:
- Availability and cost of sustainable materials
Opportunities:
- Limiting use of natural resources
- Sustainable material and supplier choices
- Circular economy business
- Combining innovations enhancing
health & well-being and sustainable solutions
Policies related to resource use and
circular economy
Harvia does not currently have a separate resource
use and circular economy policy in place; however,
based on the results of the double materiality and IRO
assessment, Harvia is planning to include resource use
and circular economy in a more detailed level in its
new Sustainability Program from 2026 onwards, which
will be prepared during 2025. Simultaneously with
the renewal of the Sustainability Program, Harvia will
consider the need for a separate policy for resource
use and circular economy. Harvia has consistently
focused on optimizing resource use, contributing to its
operational efficiency and financial performance over
time as part of its strategy. Similarly, circular economy
views are integrated throughout the product lifecycle,
from design to recyclability.
Harvia has addressed resource use and circular
economy indirectly in its Supplier Code of Conduct
and Sustainability Program. Harvia has general
provisions related to environment, health and safety in
its Supplier Code of Conduct. According to the terms
and conditions of the Supplier Code of Conduct, Harvia
requires that its partners shall make all reasonable
efforts to protect the environment and minimize the
negative environmental impacts of their activities on
the environment. In addition, its partners shall agree
to monitor, control, and take actions on any emissions
and waste or other negative environmental effects
generated through their operations in accordance with
the Supplier Code of Conduct.
In Harvia’s Sustainability Program, resource use and
circular economy is a part of the Commitment #2 “For
sustainable experiences & enjoyment”. The program
sets out group principles to be applied in all Harvia
Group companies’ business operations regarding
material use, recyclability and product safety.
The commitment for Sustainable experiences and
enjoyment is under the responsibility of the Head of
Innovation & Technology at Harvia Group.
Actions and resources related to resource use
and circular economy
Harvia is continuously implementing measures to
optimize resource use and promote the circular
economy, integrating them into its operational
framework and practices. While there is no comparative
baseline data or reliable industry averages to quantify
their individual impact, they are reflected in stakeholder
engagement and operational efficiency. Moving
forward Harvia aims to incorporate these practices into
the Sustainability Program from 2026 onwards and
create concrete action plans with targets. The actions
during the reporting period promoting resource use
and circular economy are divided below based on the
subtopics defined in the ESRS 1, Appendix A, that they
are most material to. All the key actions related to
the impacts, risk or opportunities of resource use and
circular economy are implemented and monitored in
operations on a daily basis. The implementation of the
actions does not require significant financial resources.
Harvia has not taken any remedying actions for those
harmed by actual material impacts related to resource
use and circular economy.
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RESOURCE INFLOWS INCLUDING KEY ACTIONS
RELATED TO RESOURCE USE
- The main materials used in manufacturing Harvia’s
products are steel and wood. The stainless steel
Harvia uses is on an average approximately 90%
recycled steel. The share of biological materials
in the material inflow, including mainly wood and
cardboard, is 65% of all material inflow, excluding
stones.
- The biggest inflow material measured in weight
is stone, with over 70% of total resource inflow
weight. The mining process creates material for
various needs, from which approximately 20-30%
is for heater stones and the rest 70-80% for gravel
or other stone-based material for example for
construction use. The excess stone material from
heater stone manufacturing is recycled back to the
mining site or sold to local companies to be used
for construction or landscaping. Mining, heater
stone manufacturing, and recycling are all located
within approximately 20 km radius and the transport
between mining and heater stone manufacturing is
optimized to have load in both directions.
Together with its key partners, Harvia is aiming to seek
ways to increase the recyclable content in materials and
components used in Harvia’s products where possible.
Cooperation opportunities and financial resources
required for them are being investigated.
RESOURCE OUTFLOWS INCLUDING KEY ACTIONS
RELATED TO RESOURCE USE
- Resource optimization is a part of Harvia’s product
development and operations, and it covers both
the production and the lifecycle of the products.
Over the years, Harvia has increased automation in
its manufacturing facilities and developed its own
equipment and ways of working to optimize material
use and to reduce waste.
- The products are designed to be repairable, and
Harvia offers spare parts and maintenance services
to extend the lifetime of the products.
- The materials used in manufacturing Harvia
products, and the products itself have good
recyclability at the end-of the product lifecycle.
Harvia’s most significant product group, heating
equipment, are 99% recyclable.
KEY ACTIONS RELATED TO WASTE
- Harvia recycles all excess steel used in its production
processes.
- In all other facilities, except the ones in the United
States and Italy, waste is recycled or treated with
combustion, covering 97% of all waste.
- At Harvia’s production site in West Virginia in the
United States, the company has invented ways to
reduce wood waste. The excess board material is
turned into sawdust and sold to local farms to be
used as animal bedding instead of ending up as
landfill waste. The total amount of sawdust was
160 tons in 2024.
Harvia continues to find ways of minimizing the
landfill waste in the facilities in United States and Italy.
Harvia does not have remedying actions in place for
generation of waste or use of natural resources and raw
materials, but rather focuses on minimizing the waste.
Targets related to resource use and
circular economy
In the current Sustainability Program, Harvia has not set
measurable targets related to resource use and circular
economy. The principles and actions related to resource
use and circular economy are strongly linked to the
qualitative targets Harvia has, such as increasing
the recyclable content in material inflow, products
designed to be long-lasting and repairable and at the
end of the product lifecycle recyclable and minimizing
non-recyclable waste.
Profitability is a strategic goal of Harvia and linked
to resource efficiency profitability. Optimizing
operations, efficient use of resources and reducing
waste are ways of enhancing cost-effectiveness.
This core focus area has been an important factor
in achieving the strategic goal since company’s
establishment. Harvia tracks the effectiveness of its
resource use and circular economy principles and
actions in relation to the material impacts, risk and
opportunities by monitoring the recyclable content
of the inflow materials and monitoring the waste
quantities and types of waste. Harvia has not set level
of ambition to be achieved but strives for continuous
positive development.
Harvia will include the resource use and circular
economy in its Sustainability Program from 2026
onwards. The continuation program will be planned
during 2025 and Harvia will set targets for resource
use and circular economy as part of the program.
Resource inflows
Harvia has assessed the following material negative
or positive impacts, risks and opportunities related to
material inflows:
Negative impacts:
- Use of natural resources and raw materials
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Positive impacts:
- Sustainable material choices and optimization of materials
- Responsible use and sourcing of natural resources and raw materials
Risks:
- Availability and cost of sustainable materials
Opportunities:
- Limiting use of natural resources
- Sustainable material and supplier choices
The materials used in Harvia’s products and packaging are of great importance to
the impacts, risks and opportunities of resource inflow. The main materials in Harvia’s
material inflows in the upstream value chain include the following:
- Stainless steel
- Cold and hot-rolled steel
- Other metals (such as aluminium, copper, Aluzinc alloy coated steel)
- Wood
- Electrical components and electronics
- Cardboard
- Glass
- Plastic
- Stones
RESOURCE INFLOWS 2024 2024
Overall total weight of products and technical and biological materials used
(1,000 kg) 67,000
Percentage of biological materials 21%
The absolute weight of secondary reused or recycled components, secondary
intermediary products and secondary materials used to manufacture the
undertaking’s products and services (including packaging) (1,000 kg) 2,500
Percentage of secondary reused or recycled components, secondary
intermediary products and secondary materials 4%
The biggest amount of resource inflow in kilograms is the stones with over 70% of
total resource inflow weight. Below, the resource inflow is calculated with the stones
excluded to give a view of biological and reused or recycled material in regard to all
other materials:
RESOURCE INFLOWS WITHOUT STONES 2024 2024
Overall total weight of products and technical and biological materials used
(1,000 kg) 21,100
Percentage of biological materials 65%
The absolute weight of secondary reused or recycled components, secondary
intermediary products and secondary materials used to manufacture the
undertaking’s products and services (including packaging) (1,000 kg) 2,500
Percentage of secondary reused or recycled components, secondary
intermediary products and secondary materials 12%
The calculations in the tables are based on the quantities of main materials,
components or products Harvia Group has purchased, and the percentage of
secondary, reused or recycled materials used to manufacture Harvia products. The
content of the materials, including the percentage of reused or recycled material,
has been provided by suppliers. Harvia cannot reliably determine whether the
data from the suppliers is based on estimates or direct measurements. 23% of the
resource inflow is not from stones, biological or secondary reused or recycled
materials. To avoid double counting, Harvia has collected the data from each group
company individually and excluded inter-company trade. If no data was received,
the percentage of reused or recycled content was considered to be zero.
Harvia will continue to develop the material inflow together with its suppliers to
increase the share of reused and recycled materials.
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Resource outflows
Harvia has assessed the following material negative or positive impacts, risks and
opportunities related to material outflows:
Negative Impacts:
- Generation of waste
Positive impacts:
- Measures to extend product lifecycle and reduce emissions
- Drive sustainability forward through sustainable products and innovations
Opportunities:
- Circular economy business
- Combining innovations enhancing health & well-being and sustainable solutions
Harvia’s largest product group is heating equipment, which equals 54% of Harvia’s
total revenue. Harvia’s R&D and operations evaluate the products to improve
material efficiency in production, and the company offers maintenance services
and spare parts. The stainless steel Harvia uses is on an average manufactured with
approximately 90% of recycled steel and the steel itself is recyclable. The use of steel
is optimized in the production process and all excess steel is recycled. Harvia instructs
the recycling of its products in the product packages but has no access to information
on how end-users behave.
Saunas and Scandinavian hot tubs, which represent the second largest product
group and account for 27% of total revenue, contribute to the material flow of wood.
Harvia sources wood from certified suppliers, depending on availability in various
markets. The European sauna factories of Harvia procure their wood materials from
suppliers with a valid Chain of Custody certification. During production, scrap wood
is minimized by techniques such as finger jointing, which enables the use of shorter
wood pieces. At the end of its lifecycle, wood is recyclable.
Harvia aims to minimize the use of plastic in packaging, but at the same time considers
the optimal packaging method to keep the goods in good condition and to avoid
damages during transport or warehousing. The plastics Harvia uses in its products and
packaging are recyclable.
EXPECTED DURABILITY OF PRODUCTS
The expected durability of Harvia’s products is estimated in the table below. There
is no reliable industry average information available and the estimates are based on
experience and testing. It is important to note that the expected durability has been
assessed based on having the right product for the use and space, correct installation,
average use, and proper maintenance without repairs with spare parts:
Product
Expected
durability (years)
NOTE
Electric heater 8
Spare parts and good
maintenance can extend
the expected durability and
product use significantly.
Woodburning heater 10
Control units (separate from heater) 10
Sauna cabins 20
Infrared heaters 8
Infrared controllers 10
Steam generators 4
Hot & Cold tubs 10
Sauna stones 3-5*
Annual re-stacking of the
stones required.
* Due to large variation in temperature, the sauna stones disintegrate in use. The stones are required to be re-stacked
at least once a year or even more often if the sauna is in frequent use.
RECYCLABLE MATERIAL IN PRODUCTS AND PACKAGING
Product
Rate of recyclable material
in product (%)
Rate of recyclable material
in product packaging (%)
Electric heater 99 100
Woodburning heater 99.8 100
Control units (separate from heater) 99 100
Sauna cabins 92 100
Heater stones 0 100
Infrared heaters 99 100
Infrared controllers 99 100
Steam generators 99 100
Hot & Cold tubs 100 100
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The rates of recyclable material in products have been estimated based on the waste
management of Finland, where Harvia’s headquarter is located at. The vast majority
of the materials used in Harvia products are recyclable. Exceptions are glass windows
and doors, insulation materials and heater stones. The heater stones are natural
material, but their end-of-life disposal remains an area for improvement. The heater
stones can be used in earthworks or as decorative stones for example in the garden,
however not everyone has this opportunity and the acceptance and recycling of
stones in recycling centers varies greatly. Harvia is committed to exploring alternative
solutions that include for example investigating new recycling and reuse possibilities
for sauna stones in collaboration with waste management partners. All packaging
material used is 100% recyclable.
WASTE
Waste data (1,000 kg) 2024
Total waste generated 26,430
Hazardous waste diverted from disposal 6
Hazardous waste diverted from disposal due to preparation for reuse 0
Hazardous waste diverted from disposal due to recycling 6
Hazardous waste diverted from disposal due to other recovery operations 0
Non-hazardous waste diverted from disposal 25,795
Non-hazardous waste diverted from disposal due to preparation for reuse 0
Non-hazardous waste diverted from disposal due to recycling 25,795
Non-hazardous waste diverted from disposal due to other recovery operations 0
Hazardous waste directed to disposal 39
Hazardous waste directed to disposal by incineration 39
Hazardous waste directed to disposal by landfilling 0
Hazardous waste directed to disposal by other disposal operations 0
Non-hazardous waste directed to disposal 590
Non-hazardous waste directed to disposal by incineration 36
Non-hazardous waste directed to disposal by landfilling 553
Non-hazardous waste directed to disposal by other disposal operations 0
Non-recycled waste 629
Percentage of non-recycled waste 2%
Waste data is collected from each group company individually to avoid double
counting. Most of the data is provided by the waste management companies. When it
is not possible to get the data from the waste management company, the calculation
is done based on the size of the waste bin and the frequency of bin emptying. The
estimated waste quantity is less than 1% of the total waste.
The main waste streams include soil and stones, other than those containing hazardous
substances, mixed metal, sawdust, shavings, cuttings, wood, particle board, and veneer,
other than those containing hazardous substances, discarded electronic equipment,
mixed municipal waste, paper and cardboard waste and waste paint and varnish
containing hazardous substances. The vast majority (92%) of the waste is stones.
Excess stone material from manufacturing is recycled back to the mining site or sold
for use in road and earthworks construction, for example. 97% of all waste is recycled
or disposed by combustion (incineration). Harvia does not generate radioactive waste.
In all other facilities except the ones in the United States and Italy, all waste is recycled
or treated with combustion. Harvia continues to find ways of minimizing the landfill
waste in the facilities in United States and Italy.
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STATEMENT ON EU TAXONOMY FOR
SUSTAINABLE ECONOMIC ACTIVITIES
Disclosure according to the EU Taxonomy
Regulation
The Taxonomy Regulation 2020/852 is a key
component of the European Commission’s action plan
to redirect capital flows towards a more sustainable
economy. It represents an important step towards
achieving carbon neutrality by 2050 in line with EU
goals as the Taxonomy is a classification system for
environmentally sustainable economic activities. The
six environmental objectives defined under the EU
Taxonomy are:
1. climate change mitigation,
2. climate change adaptation,
3. sustainable use and protection of water and
marine resources,
4. transition to a circular economy,
5. pollution prevention and control, and
6. protection and restoration of biodiversity
and ecosystems.
Taxonomy Regulation (Regulation (EU) 2020/852,
Article 8) applies to companies like Harvia that report
according to the European CSRD (2022/2464/EU).
The following section presents the share of group net
turnover i.e. revenue, Capex and Opex for the reporting
period 2024, which are associated with Taxonomy-
aligned and Taxonomy-eligible economic activities.
Taxonomy-aligned and Taxonomy-eligible compliance
have been analyzed on the basis of taxonomy
legislation, Climate Delegated Act and Environmental
Delegated Act. Taxonomy-aligned compliance is
achieved when Taxonomy-eligible economic activities
contribute significantly to at least one environmental
objective by meeting pre-defined technical screening
criteria, the activities do not cause significant harm to
other environmental objectives according to the Do
No Significant Harm (DNSH) criteria, and the Minimum
Safeguards defined in the Taxonomy are met.
Substantial contribution
Harvia has reviewed the substantial contribution criteria
for economic activity CCM 3.5. “Manufacture of energy
efficiency equipment for buildings” and assessed to
be aligned. According to the criteria, the activity must
manufacture one or more of the products listed in the
taxonomy or its key components. The list includes
manufacturing energy efficient building automation
and control systems for residual and non-residual
buildings. Control units and control automation, with
energy saving features, are considered to belong to this
product group.
Do no significant harm criteria
Climate change adaptation: Harvia has assessed
physical climate risks regarding the manufacturing of
the control units by mapping potential chronic and
acute physical risks and their potential impact on the
control unit and control automation manufacturing.
Based on the assessment physical climate risks are not
considered material.
Sustainable use and protection of water and marine
resources: The manufacturing process of control units
does not include use of significant amount of water
nor require an Environmental Impact Assessment in
line with Directive 2011/92/EU. The manufacturing
sites are either ISO 140001 certified or implement an
environmental management system corresponding to
the ISO14001. The manufacturing sites do not need a
permit to operate in the vicinity of a water.
Transition to a circular economy: In electronics
manufacturing, the use of reused or recycled materials
in the production of new products is not common,
as products must meet strict industry-specific
requirements, and suitable alternatives are not always
available. However, the availability of recycled and
reused materials is increasing, and their use is being
considered on a case-by-case basis. In the design
process, the key factors to consider are product
durability and customer requirements. Electronics and
packaging materials are recyclable at the end of the
product’s lifecycle.
Pollution prevention and control: Harvia has assessed
to meet all the relevant criteria related to DNSH to
Pollution prevention presented in Appendix C.
Protection and restoration of biodiversity and
ecosystems: Harvia’s control units are manufactured on
facilities located in or near biodiversity-sensitive areas.
As part of the ISO 14001 the environmental impacts
and risks are assessed. Based on the assessments
and by complying with all environmental laws and
regulations, Harvia has assessed not to cause any harm
on the biodiversity and ecosystems.
Minimum social safeguards
Harvia has assessed its Minimum Safeguards against
the minimum requirements of the EU Taxonomy
Regulation (EU) 2020/852 on human rights, corruption,
bribery, tax regulation and fair competition. The
topics are covered in the Harvia code of Conduct and
in the Code of Conduct for Harvia suppliers. Harvia
Code of Conduct sets the policies, guidelines and
ways of working for all Harvia employees. Harvia
expects that all its suppliers act responsibly and in
accordance with Harvia Supplier Code of Conduct.
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The policies and activities are aligned with the Minimum
Safeguards criteria.
Harvia is also committed to:
- operating in accordance with the UN Charter
on Human Rights and core conventions of the
International Labor Organization (ILO),
- ensuring compliance with the OECD Guidelines
for Multinational Enterprises and
- ensuring compliance with the OECD Guidelines
for Good Corporate Governance
Harvia assesses its activities as compliant with the
taxonomy criteria.
Accounting policies
Harvia has assessed the relevant taxonomy-aligned and
taxonomy-eligible economic activities in accordance
with Regulation (EU) 2020/852. The assessment was
conducted together with representatives from different
business areas, the sustainability reporting team and
the finance department.
Taxonomy-aligned and Taxonomy-eligible revenue
For fiscal year 2024, Harvia has identified one
Taxonomy activity related to the Climate Change
Mitigation (CCM) objective that is both Taxonomy
aligned and Taxonomy eligible: CCM 3.5. “Manufacture
of energy efficiency equipment for buildings”. The
activities that have been considered aligned under the
activity CCM 3.5. relate to energy-saving automation for
the control and maintenance of sauna technology.
The activities that have been considered eligible
under the activity CCM 3.5. relate to energy efficiency
for heating products, appliances, saunas and sauna
technology. Under the Circular Economy (CE) objective,
activity CE 5.2. “Sale of spare parts” is also Taxonomy-
eligible. Harvia products are built to last, designed
to be serviceable, repairable, and durable. With a
comprehensive range of spare parts, Harvia support
circular economy.
The proportion of Taxonomy-aligned economic
activities has been calculated as the part of revenue
derived from products and services associated with
Taxonomy-aligned economic activity CCM 3.5. divided
by Harvia’s consolidated revenue (see Note 2.1.
Revenue in the Financial Statements).
The proportion of Taxonomy-eligible economic
activities has been calculated by dividing the revenue
from the sales associated with Taxonomy-eligible
economic activities CCM 3.5. and CE 5.2. by Harvia’s
consolidated revenue.
Increased number of taxonomy aligned and eligible
products and increase in the sales of products that
impact on energy efficiency of saunas have increased
the share of both taxonomy-aligned and taxonomy-
eligible turnover.
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PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024
Financial year N 2024 Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
Economic Activities (1)
Code (a) (2)
Turnover (3)
Proportion of
Turnover. year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) turnover,
year N-1 (18)
Category enabling
activity (19)
Category transitional
activity (20)
€ %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy efficient equipment for
buildings
CCM
3.5. 7,359,000 4.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 3.6%
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 7,359,000 4.2% 4.2% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 3.6%
Of which Enabling 7,359,000 4.2% 4.2% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 3.6% E
Of which Transitional % % Y Y Y Y Y Y Y % T
A.2 Taxonomy-Eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (g)
Manufacture of energy efficient equipment
for buildings
CCM
3.5. 2,208,000 1.3% EL N/EL N/EL N/EL N/EL N/EL 1.1%
Sale of spare parts
CE
5.2. 4,357,000 2.5% N/EL N/EL N/EL N/EL EL N/EL 2.5%
Turnover of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 6,565,000 3.7% 1.3% 0% 0% 0% 2.5% 0% 3.6%
A. Turnover of Taxonomy eligible activities
(A.1+A.2) 13,924,000 7.9% 5.5% 0% 0% 0% 2.5% 0% 7.1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 161,282,000 92.1%
TOTAL 175,206,000 100%
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Taxonomy-aligned and eligible CapEx
During the fiscal year 2024, the investments under the
Taxonomy-aligned economic activity CCM 3.5. relate
to developing automation for energy efficient control.
Harvia has invested in Taxonomy-eligible activity
related to the Climate Change Mitigation objective
CCM 7.3. “Installation, maintenance and repair
of energy efficiency equipment" in low energy
consumption lighting. This investment enables
energy-efficiency improvements in operations.
The Taxonomy-aligned Capex is defined as
Taxonomy-aligned Capex divided by the total
Capex. The Taxonomy-eligible Capex is defined as
Taxonomy-eligible Capex divided by the total Capex.
Total Capex consists of additions to tangible and
intangible fixed assets during the financial year,
before depreciation and amortization. Additions
resulting from business combinations are also
included. Goodwill is not included in Capex. For
further details on accounting policies see additions
from Harvia’s consolidated Financial Statements as
follows: additions regarding intangible assets see
Note 3.2 Intangible assets and impairment testing and
for tangible assets see Note 3.3. Property, plant, and
equipment.
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PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024
Financial year N 2024 Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
Economic Activities (1)
Code (a) (2)
CapEx (3)
Proportion of CapEx.
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy(9)
Biodiversity(10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) CapEx,
year N-1 (18)
Category enabling
activity (19)
Category transitional
activity (20)
€ %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy efficient equipment for
buildings
CCM
3.5. 310,000 5.0% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.6%
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 310,000 5.0% 5.0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0.6%
Of which Enabling 310,000 5.0% 5.0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0.6% E
Of which Transitional % % Y Y Y Y Y Y Y % T
A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (g)
Freight transport services by road
CCM
6.6. 0 0.0% EL N/EL N/EL N/EL N/EL N/EL 1.4%
Installation. maintenance and repair of
energy efficiency equipment
CCM
7.3. 28,000 0.5% EL N/EL N/EL N/EL N/EL N/EL 5.2%
Installation. maintenance and repair of
charging stations for electric vehicles in
buildings (and parking spaces attached to
buildings)
CCM
7.4. 0 0.0% EL N/EL N/EL N/EL N/EL N/EL 0%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 28,000 0.5% 0.5% 0% 0% 0% 0% 0% 6.6%
A. CapEx of Taxonomy eligible activities
(A.1+A.2) 338,000 5.5% 5.5% 0% 0% 0% 0% 0% 7.2%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 5,810,000 94.5%
TOTAL 6,148,000 100%
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Taxonomy-aligned and eligible OpEx
For financial year 2024 there was no Taxonomy-aligned Opex.
Harvia has identified as Taxonomy-eligible Opex in relation to climate change
mitigation objective under activities CCM 6.5. “Transport by motorbikes, passenger
cars and light commercial vehicles”, CCM 6.6.“Freight transport services by
road” and CCM 7.5. “Installation, maintenance and repair of instruments and
devices for measuring, regulation and controlling energy performance of
buildings”. The non-capitalized taxonomy-eligible activities are related to leasing
environmentally friendly vehicles and electric forklifts, and monitoring the energy
efficiency of buildings.
The Taxonomy-eligible Opex is defined as Taxonomy-eligible Opex divided by the
total Opex as defined in the Taxonomy Regulation. For additional information on Opex
see Note 2.3 Operating income and expenses in the Financial Statements.
Total Opex consists of direct non-capitalized costs that relate to research and
development, building renovation measures, short-term lease, maintenance and repair,
and any other direct expenditures relating to the day-to-day servicing of assets of
property, plant and equipment.
Double counting has been avoided by allocating Taxonomy-aligned and -eligible
turnover, capital and operating expenditure to only one economic activity.
EU Taxonomy Regulation and reporting requirements will develop in the coming
years, and Harvia will update its Taxonomy assessment and reporting according to
the requirements.
Row Nuclear energy related activities
1. The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle
NO
2. The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3. The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4. The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity using fossil gaseous
fuels.
NO
5. The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
NO
6. The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
NO
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PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024
Financial year N 2024 Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
Economic Activities (1)
Code (a) (2)
OpEx (3)
Proportion of OpEx,
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) OpEx, year N-1
(18)
Category enabling
activity (19)
€ %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) % % % % % % % Y Y Y Y Y Y Y %
A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (g)
Transport by motorbikes, passenger cars and
light commercial vehicles
CCM
6.5. 11,000 0.2% EL N/EL N/EL N/EL N/EL N/EL 0.2%
Freight transport services by road
CCM
6.6. 29,000 0.5% EL N/EL N/EL N/EL N/EL N/EL 0.1%
Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy
performance of buildings
CCM
7.5. 22,000 0.4% EL N/EL N/EL N/EL N/EL N/EL 0.8%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 62,000 1.0% 1.0% 0% 0% 0% 0% 0% 1.1%
A. OpEx of Taxonomy eligible activities
(A.1+A.2) 62,000 1.0% 1.0% 0% 0% 0% 0% 0% 1.1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 5,903,000 99.0%
TOTAL 5,965,000 100%
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ESRS G1 BUSINESS CONDUCT
Material impacts, risks and opportunities
related to business conduct
Harvia’s material impacts, risks and opportunities
related to business conduct:
Actual impacts, positive:
- Sustainable and economic value creation for
stakeholders
- Long-term relationships with suppliers - developing
sustainability together
Potential impact, negative:
- Conflict between short-term performance and
expectations
- Non-compliance
Potential impact, positive:
- Prevention of corruption and bribery in society
Risks:
- Conflict between short-term performance and
expectations affecting employee satisfaction or
reaching short-term targets
- Non-compliance resulting in violations
Opportunities:
- Sustainable value creation for stakeholders
- Promoting anti-corruption and bribery practices
Business conduct policies and
corporate culture
Harvia complies with local laws and regulations in all
of its operating countries. Harvia’s Code of Conduct
concerns each employee. Guided by the policies and
principles, Harvia strives to uphold the good and
healthy corporate culture and responsible business
conduct in all interactions whether with employees,
customers, partners or any other stakeholders.
Harvia’s Sustainability Policy addresses the main
principles and rules followed by Harvia Group in relation
to sustainability development of ESG aspects, including
business conduct. Harvia Group is committed to:
- Operating in accordance with the UN Charter
on Human Rights and core conventions of the
International Labor Organization (ILO);
- Ensuring compliance with the OECD Guidelines
for Multinational Enterprises; and
- Ensuring compliance with the OECD Guidelines
for Good Corporate Governance.
Harvia Group’s Code of Conduct describes generally
accepted practices and the company’s commitment
to complying with laws and regulations. In addition,
it covers the following topics: environment, health
and safety; product safety; competition law; anti-
bribery and anti-corruption; political activity; business
partners; conflicts of interest; communication principles;
confidentiality; data protection and access to data;
prohibition of money laundering and international
sanctions; human rights; non-harassment and
non-discrimination; and sanctions.
The purpose of the Code of Conduct is to ensure that
Harvia Plc and all its subsidiaries abide by shared
ethical principles in their operations. It applies to all
Harvia Group employees regardless of their geographical
location, and the employees are expected to abide by the
Code without fail. The Code of Conduct is approved by
the Board of Directors, and the implementation is based
on the uncompromising example of the top management
of and all supervisors employed by Harvia Plc.
Harvia expects that all its suppliers and their
subcontractors act responsibly and in accordance
with Harvia Supplier Code of Conduct, which requires
suppliers and partners to commit to:
- Complying with all mandatory laws and regulations
- Condemning corruption
- Promoting fair competition
- Avoiding conflicts of interests
- Preventing money laundering and complying
with privacy protection and trade sanctions
- Respecting intellectual property rights and
confidentiality
- Respecting Human and labor rights
- Promoting occupational health and safety
- Promoting environmental well-being and preventing
climate change
- Reporting any suspected misconduct they observe.
Commitment to the Supplier Code of Conduct is a
requirement for all suppliers whose annual purchases
are over 20,000 euros in total.
The Supplier Code of Conduct is approved by the
Board of Directors of the Harvia Group. The CEO and
the Group’s management team are responsible for its
implementation, but all individuals involved in contracts
or purchases also share responsibility for promoting
its implementation.
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HARVIA’S BUSINESS CONDUCT PRINCIPLES
In Harvia’s Sustainability Program, business conduct is
one part of the Commitment #4 “For safe and warm
community”. The program sets out group principles
to be applied in all Harvia Group companies’ business
operations that are directly linked to Harvia’s corporate
culture. Related to business conduct, Harvia follows
these group-level principles:
- We believe that when we collaborate and support
each other, it results in wellbeing and long
relationships with everyone from our employees to
customers and partners.
- We look after the safety, equality and competence
development of our people.
- Our operating is based on values such as equality,
diversity and ‘welcoming’.
- We always comply with laws and regulations and
generally accepted best practices.
The commitment for safe and warm community is
managed by the Chief Financial Officer of Harvia
Group. Stakeholder views and expectations have
been considered when setting the policies by
involving people at Harvia who regularly interact
with different stakeholders and thus understand their
expectations and needs. All policies and commitments
related to business conduct are publicly available on
Harvia’s website.
Whistleblowing channel
Harvia has a whistleblowing channel through which
Harvia Group employees or external stakeholders can
report any matter they find unethical or suspected
misconduct. Reports can be made anonymously, and
they are treated as confidential.
Harvia has defined an official investigation process
for reports. All members of the appointed and trained
whistleblowing team receive an immediate notice,
when a report is submitted. Access to reports received
through Harvia’s whistleblowing channel is restricted to
appointed individuals with the authority and training to
handle whistleblowing cases. Their actions are logged,
and handling is confidential, independent and objective.
A confirmation of receipt is sent to the whistleblower
within seven days and the case is assessed by the
whistleblowing team. When needed, follow-up
communication can be arranged via an anonymous
channel. If the report is accepted, appropriate
measures for investigation will be taken. When needed,
individuals who can add expertise may be included
in the investigation process, upon consent from the
whistleblower in case identity of the reporting person
is disclosed. These individuals can access relevant data
and are also bound to confidentiality. Applicable action
is taken and monitored based on the investigation
results and the whistleblower shall be provided with
feedback about the actions taken or the grounds for
the choice of follow-up. Feedback to the whistleblower
about the report follow-up is sent within three months
of the acknowledgment of receipt.
The whistleblowing team may not investigate the
reported alleged misconduct if:
- The alleged conduct is not reportable conduct under
the Whistleblowing guidelines
- The report has not been made in good faith or is
malicious
- There is insufficient information to allow for further
investigation
- The subject of the report has already been solved.
Harvia’s whistleblowing service is provided by
an external partner to ensure anonymity. The
communication channel is encrypted and password-
protected. When the channel was established, all
employees were informed and provided with guidance
on the use of the channel. Whistleblowing is also part of
the Harvia Code of Conduct training.
The whistleblowing service may collect personal
data on the person specified in a report, the person
submitting the report (if not sent anonymously) and
any third person involved, in order to investigate facts
on the declared misdeeds and inappropriate behavior
eligible under Harvia’s Code of Conduct or internal
rules. The processing is based on statutory obligations
and the legitimate interest of the controller to prevent
reputational risks and to promote an ethical business
activity. The provided description and facts under
the processing are only reserved to the competent
and authorized persons who handle the information
confidentially. One may exercise the right of access,
of rectification and of opposition, as well as of limited
processing of personal data, in accordance with the
local data protection legislation. These rights are
subject to any overriding safeguarding measures
required to prevent the destruction of evidence or
other obstructions to the processing and investigation
of the case. The data is stored within the EU.
A person expressing genuine suspicion or misgiving
according to these guidelines will not be at risk of
losing their job or suffering any form of sanctions or
personal disadvantages as a result. It does not matter if
the whistleblower is mistaken, provided that he or she
is acting in good faith.
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Management of relationships with suppliers
One of Harvia values is “We believe in long-term
partnerships, built on mutual respect and trust”. Harvia
generally has long-term business relationships with its
suppliers and partners.
Successful relationships with suppliers and partners
stem from living the values, good collaboration and
risk management. The Supplier Code of Conduct sets
clear requirements for suppliers, and supplier visits,
audits and assessments are used to assess and verify
the commitment in practice. The supplier visits also
strengthen the mutual respect and trust and deeper
understanding of the needs and expectations of one
another. Supplier risks related to human and labor
rights, environmental performance and compliance with
laws and regulations are assessed continuously.
Sustainability aspects are part of the supplier selection
process and new suppliers must commit to Harvia’s
Supplier Code of Conduct requirements. When
selecting suppliers, Harvia treats all potential suppliers
equally despite the size of the company. It means
that all suppliers have equal opportunity to become a
supplier.
Environmental aspects play an important role when
selecting the most substantial suppliers, like suppliers
of steel or logistic services. Harvia has used stainless
steel which is manufactured from recycled steel for
several years. Another steel used in Harvia’s products is
carbon steel. Both are manufactured in Finland, which is
favorable in terms of logistics. The stainless steel from
the same manufacturers is also used in Germany.
Harvia requires that its logistics partner must have
targets for reducing emissions. The current logistics
partner is committed in reducing the GHG emission to
the lowest possible level by 2050.
Harvia does not have a specific policy to prevent late
payments for suppliers. Harvia applies reasonable
payment terms in its operations, according to the
company’s own assessment. Payment terms are
described in more detail in the section “Payment
Practices”.
Prevention and detection of corruption or
bribery
Harvia’s policy and approach to anti-bribery and
anti-corruption is consistent with the United Nations
Convention against Corruption and defined in Harvia
Group’s Code of Conduct, stating that all forms of
corruption and bribery are prohibited.
When it comes to communicating about Harvia’s
approach to corruption and bribery, Harvia has
previously included the topics into face-to-face
trainings for the functions most vulnerable to
corruption and bribery. Today the anti-corruption
and anti-bribery training is also included as part of
Harvia’s online Code of Conduct training, which has
been piloted in the headquarters and will be expanded
to cover also other Harvia units during 2025. All new
employees are familiarized with the Code of Conduct
as part of the orientation program. Harvia’s suppliers
and partners are familiarized to Harvia’s approach
and requirements through Harvia’s Supplier Code of
Conduct. All trainings on anti-corruption and anti-
bribery have covered topics on definition of corruption
and bribery, company policies and guidelines and
what to do when suspecting or detecting possible
violations.
To prevent potential corruption and bribery cases, the
personnel is advised to consult with the Chief Financial
Officer of Harvia Group or the local managing director
before entertaining guests or business partners, or
being invited to one by a business partner, in case the
personnel feel uncertain of the correct way to act. In
addition, entertaining a public authority in any capacity
always requires special advance consideration and
is subject to Harvia Group’s Chief Financial Officer’s
or the local managing director’s consent. Any risk of
possible violation shall be reported in the anonymous
whistleblowing channel.
Harvia has processes and internal controls guidelines
and procedures in place to prevent and detect
corruption or bribery. For example, competitive
tendering and transparent price comparison are
required in procurement. Unexplained variance in unit’s
profitability or when significant matters rely too much
on one person also warrants closer scrutiny. During
mergers and acquisitions (M&As) a comprehensive due
diligence is made to detect any conflicts with Harvia’s
business ethics. Harvia Group does not have its own
internal audit function. As far as feasible, the financial
organization of Harvia also carries out internal audits
on corruption and bribery. If allegations or reported
incidents arise, the matter is discussed with senior
management and investigated. Action is taken on the
results of the investigation, and the results are reported
to the administrative, management and supervisory
bodies as appropriate and relevant.
Harvia has identified that the functions most vulnerable
to corruption and bribery from its internal operations are
the management, those that procure materials, supplies
and services, as well as sales operations, based on the
high level of decision-making authority and potential
for influence. These functions cover the anti-corruption
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and anti-bribery topics in team meeting discussions on
a regular basis to ensure the consistent awareness and
application of the policies and practices. Harvia estimates
that 80% of functions-at-risk are covered by training on
anti-corruption and anti-bribery. All employees working
in these functions receive training on the relevant topic,
which are addressed in meetings. Some individuals, e.g.,
new employees outside the headquarters may not have
received the training. Top Management and employees
working in these functions at the headquarters, Harvia
Finland, have already completed the online training. When
the new online training will be implemented in all units
during 2025, Harvia will have more reliable data on this.
The Board of Directors approves the Code of Conduct
and, in doing so, demonstrates their understanding of
anti-corruption and anti-bribery principles. This approval
reflects their awareness of relevant regulations, ethical
standards, and best practices in preventing misconduct.
Harvia has not organized a dedicated anti-corruption and
anti-bribery training for the Board of Directors during
2024. Harvia has not had any cases or convictions related
to corruption or bribery in 2024.
Actions and resources related to business
conduct
To address the actual or potential impacts and
the risks and opportunities described in chapter
“General disclosures” section “Material impacts, risks
and opportunities”, Harvia has conducted several
actions which are continuous and divided and listed
below based on the subtopics defined in the ESRS 1,
Appendix A, that they are most material to.
CORPORATE CULTURE
- Harvia Code of Conduct and responsible business.
The training is part of the new employee onboarding
and Harvia requires completion of the training
bi-annually from all its employees. The online
training platform was piloted at the end of 2023
in the headquarters and will be expanded to cover
also other Harvia units during 2025. The current
completion rate for employees with access to the
training is 70%, which is approximately 26% of all
Group employees. The Group Management Team,
including the CEO, has conducted the Code of
Conduct e-learning program. All Harvia employees
are expected to have the training completed by the
end of 2025.
- Commitment to employee well-being and
satisfaction. Harvia evaluates its corporate culture
by conducting an extensive employee engagement
survey every two years and an employee NPS in the
years between. The employee engagement survey
includes four indices: Commitment, Leadership,
Performance, and Engagement. The results of the
survey provide guidelines for the development of
personnel activities and internal communication,
which play an important role in fostering Harvia’s
corporate culture. In 2024 Harvia conducted
the eNPS survey resulting at 10, which gives the
company a benchmark for the future. The scale
is -100 to 100. The overall response rate declined
from the extensive employee engagement survey
conducted in 2023 by 10 percentage points to 56%.
- Customer satisfaction survey. Harvia strives to
continuously improve its services and operations
and conducts annually a Group wide customer
satisfaction survey for its business-to-business
customers to gain valuable feedback about Harvia as
a business partner. The customer satisfaction survey
was conducted across the Group for the second time
in 2024. The survey was sent to over 11,000 reseller
customers. The response rate was 7%. Overall,
Harvia Group’s customer satisfaction is at a high
level, but there was variation between the brands
and markets. The Group’s average NPS increased
to 71 from 69 in 2023.
MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS
INCLUDING PAYMENT PRACTICES
- Supplier Code of Conduct. 87% of existing suppliers
of goods and services at Harvia have agreed to
comply with the Code of Conduct, which is also a
prerequisite for new suppliers. The company’s goal is
that all suppliers whose annual purchases by Harvia
total at least 20,000 euros have committed to the
Code of Conduct by 2027.
- Supplier visits, audits and assessments. Harvia visits,
audits or assesses its existing and new suppliers
according to company guidelines to gain better
view to manage the supplier’s integrity, to mitigate
risks, identify and seize possible opportunities and
drive positive ESG impact. They also strengthen
the mutual respect, trust and deeper understanding
of the needs and expectations of one another
promoting long-term partnerships.
CORRUPTION AND BRIBERY
- Training. Harvia has an online Code of Conduct
training that all employees are required to complete
bi-annually. The training will be expanded to cover
all Harvia units during 2025
- Whistleblowing channel for reporting possible
grievances. Harvia has a whistleblowing channel
through which Harvia Group employees or external
stakeholders can report any matter they find
unethical or suspected misconduct. Reports can
be made anonymously, and they are treated as
confidential. During 2024, no reports were made
through the whistleblowing channel.
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Targets related to business conduct
In 2021 Harvia set Supplier Code of Conduct
commitment target related to business conduct as part
of Harvia’s Sustainability Program for 2022-2025.
Target
2021
Base
year 2023 2024
Change
to base
year
2027
Target
Suppliers
committed to
Supplier Code
of Conduct (%)
55 74 87 32 100
Supplier Code of Conduct
Harvia requires that all its suppliers act responsibly and
that its suppliers commit to the Harvia Supplier Code
of Conduct, which is divided into ethics, corruption,
labor force, health and safety, and environment.
Commitment to the suppliers own respective code of
conduct is also accepted, when the ethical principles
are similar to Harvia’s Supplier Code of Conduct.
The commitment includes suppliers of materials,
components, goods and services and covers all
Harvia Group companies. The target percentage is the
suppliers committed to the Supplier Code of Conduct
compared to all suppliers with annual purchases
at least 20,000 euros. Local units are responsible
for monitoring if the limit is exceeded based on
the purchases and report to the Group level. The
signed commitments are stored in Group’s contract
management database. Thermasol and Harvia Japan
have not been included in the 2024 reporting but
will be in 2025. The vast majority (87%) of existing
suppliers of goods and services have agreed to
comply with the Harvia Supplier Code of Conduct,
and compliance is a prerequisite for new suppliers.
The company’s goal is that all suppliers whose annual
purchases by Harvia total at least 20,000 euros
have committed to the Code of Conduct by 2027.
Commitment to the Supplier Code of Conduct has
increased by 32% since the base year. The metric
is not validated by an external body other than the
assurance provider.
When setting the target Harvia has considered
alignment with the International Frameworks such
as UN Guiding Principles on Business and Human
Rights (UNGPs), the OECD Guidelines for Multinational
Enterprises, and ILO labor standards. Also, stakeholder
views and expectations have been considered by
involving people at Harvia who regularly interact
with different stakeholders and thus understand their
expectations and needs, but stakeholders have not
been directly involved. Stakeholders expect Harvia to
act responsibly when it comes to any business conduct
-related topics. There have been no changes in the
target or corresponding metrics.
Payment practices
Harvia’s payment terms are typically between 14
to 60 days. 14 days is typical for small size service
providers and entrepreneurs, 30 days to medium-sized
companies and longer than 30 days payment terms
for the remainder. Harvia does not have Group wide
standard payment terms.
The average time Harvia takes to pay an invoice
from the date when the contractual or statutory term
of payment starts to be calculated is estimated to
be close to 30 days. The effort required to collect
this information accurately and reliably in the entire
Group would be disproportionate. Reporting will be
developed to make the information more accessible
in the future.
Harvia is not a party to any legal proceedings due
to late payments.
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Appendices
APPENDIX 1: TABLE OF DUE DILIGENCE MAPPING
CORE ELEMENTS OF DUE DILIGENCE Chapter in the sustainability statement Page
Embedding due diligence in
governance, strategy and business
model
ESRS2 General Disclosures 65-67, 69
G1 Business conduct 106-107
Engaging with affected stakeholders in
all key steps of the due diligence
ESRS2 General disclosure 71-72
G1 Governance 106-107
Identifying and assessing adverse
impacts
ESRS2 General disclosure 81
E1 Climate Change 82-83
E5 Resource use and circular economy 83
G1 Governance 84, 106-107
Taking actions to address those
adverse impacts
E1 Climate Change 87-90
E5 Resource use and circular economy 95
G1 Governance 109
Tracking the effectiveness of these
efforts and communicating
E1 Climate Change 87-93
E5 Resource use and circular economy 95-98
G1 Governance 108-109
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Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS E1 Climate change
E1. ESRS
2 GOV-3
Integration of sustainability-related performance in
incentive schemes 68 Material
E1-1 Transition plan for climate change mitigation 87-88 Material
E1. ESRS
2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model 72-75, 84-85 Material
E1. ESRS
2 IRO-1
Description of the processes to identify and
assess material climate-related impacts, risks and
opportunities 82-83 Material
E1-2
Policies related to climate change mitigation and
adaptation 88-89 Material
E1-3
Actions and resources in relation to climate change
policies 89-90 Material
E1-4
Targets related to climate change mitigation and
adaptation 90 Material
E1-5 Energy consumption and mix 91 Material
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 91 Material
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits - Non-material
E1-8 Internal carbon pricing - Non-material
E1-9
Anticipated financial effects from material physical
and transition risks and potential climate-related
opportunities Phase-in Material
APPENDIX 2: TABLE OF DISCLOSURE REQUIREMENTS IN ESRS COVERED BY
SUSTAINABILITY STATEMENTS
The following table lists the disclosure requirements of the European Sustainability
Reporting Standards (ESRS) that Harvia has followed in preparing this sustainability
statement based on double materiality, as well as information on those
disclosure requirements that Harvia has assessed as immaterial based on double
materiality. In addition, the table indicates the phased-in disclosure requirements
permitted by the ESRS.
The table can be used to navigate to information regarding the disclosure
requirements in the sustainability statement.
Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS 2 General disclosures
BP-1
General basis for preparation of the sustainability
statement 59 Material
BP-2 Disclosures in relation to specific circumstances 59-64 Material
GOV-1
The role of the administrative, management or
supervisory bodies 66-67 Material
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies 67 Material
GOV-3
Integration of sustainability-related performance in
incentive schemes 67-68 Material
GOV-4 Statement on due diligence 68-69, 109 Material
GOV-5
Risk management and internal controls over
sustainability reporting 69 Material
SBM-1 Strategy, business model and value chain 69-71 Material
SBM-2 Interests and views of stakeholders 71-72 Material
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model 72-80 Material
IRO-1
Description of the processes to identify and
assess material climate-related impacts, risks and
opportunities 81-85 Material
IRO-2
Disclosure requirements in ESRS covered by the
company’s sustainability statement 85 Material
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Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS E4 Biodiversity and ecosystems
E4-1
Transition plan and consideration of biodiversity and
ecosystems in strategy and business model - Non-material
E4.
ESRS 2
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model - Material
E4.
ESRS 2
IRO-1
Description of the processes to identify and assess
material biodiversity and ecosystems-related impacts,
risks and opportunities 81-82, 84 Non-material
E4-2 Policies related to biodiversity and ecosystems - Non-material
E4-3
Action and resources related to biodiversity and
ecosystems - Non-material
E4-4 Targets related to biodiversity and ecosystems - Non-material
E4-5
Impact metrics related to biodiversity and ecosystems
change - Non-material
E4-6
Anticipated financial effects from biodiversity and
ecosystem-related risks and opportunities - Non-material
ESRS E5 Resource use and circular economy
E5. ESRS
2 IRO-1
Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities 81-83 Material
E5-1 Policies related to resource use and circular economy 94 Material
E5-2
Actions and resources related to resource use and
circular economy 94 Material
E5-3 Targets related to resource use and circular economy 95 Material
E5-4 Resource inflows 95-96 Material
E5-5 Resource outflows 97-98 Material
E5-6
Anticipated financial effects from resource use
and circular economy-related impacts, risks and
opportunities Phase-in Material
Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS E2 Pollution
E2. ESRS
2 IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities related to
pollution 81-82, 84 Material
E2-1 Policies related to pollution - Non-material
E2-2 Actions and resources related to pollution - Non-material
E2-3 Targets related to pollution - Non-material
E2-4 Pollution of air, water and soil - Non-material
E2-5
Substances of concern and substances of very high
concern - Non-material
E2-6
Anticipated financial effects from pollution-related
impacts, risks and opportunities - Non-material
ESRS E3 Water and marine resources
ESRS 2
IRO-1
Description of the processes to identify and assess
material water and marine resources-related impacts,
risks and opportunities 81-82, 84 Material
E3-1 Policies related to water and marine resources - Non-material
E3-2
Actions and resources related to water and marine
resources - Non-material
E3-3 Targets related to water and marine resources - Non-material
E3-4 Water consumption - Non-material
E3-5
Anticipated financial effects from water and marine
resources-related impacts, risks and opportunities - Non-material
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Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS S2 Workers in the value chain
S2. ESRS
2SBM-2 Interests and views of stakeholders 71-72 Material
S2. ESRS
2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model 72, 78 Material
S2-1 Policies related to value chain workers Phase-in Material
S2-2
Processes for engaging with value chain workers about
impacts Phase-in Material
S2-3
Processes to remediate negative impacts and channels
for value chain workers to raise concerns Phase-in Material
S2-4
Taking action on material impacts on value chain
workers, and approaches to managing material risks
and pursuing material opportunities related to value
chain workers, and effectiveness of those actions Phase-in Material
S2-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material
risks and opportunities Phase-in Material
ESRS S3 Affected communities
ESRS 2
SBM-2 Interests and views of stakeholders 71-72 Material
ESRS 2
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model - Non-material
S3-1 Policies related to affected communities - Non-material
S3-2
Processes for engaging with affected communities
about impacts - Non-material
S3-3
Processes to remediate negative impacts and channels
for affected communities to raise concerns - Non-material
S3-4
Taking action on material impacts on affected
communities, and approaches to managing material
risks and pursuing material opportunities related to
affected communities, and effectiveness of those
actions - Non-material
S3-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material
risks and opportunities - Non-material
Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS S1 Own workforce
S1. ESRS
2 SBM-2 Interests and views of stakeholders 71-72 Material
S1. ESRS
2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model 72-77 Material
S1-1 Policies related to own workforce Phase-in Material
S1-2
Processes for engaging with own workers and workers’
representatives about impacts Phase-in Material
S1-3
Processes to remediate negative impacts and channels
for own workers to raise concerns Phase-in Material
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 Phase-in Material
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material
risks and opportunities Phase-in Material
S1-6 Characteristics of the undertaking’s employees Phase-in Material
S1-7
Characteristics of non-employee workers in the
undertaking’s own workforce Phase-in Material
S1-8 Collective bargaining coverage and social dialogue Phase-in Material
S1-9 Diversity metrics Phase-in Material
S1-10 Adequate wages Phase-in Material
S1-11 Social protection Phase-in Material
S1-12 Persons with disabilities Phase-in Material
S1-13 Training and skills development metrics Phase-in Material
S1-14 Health and safety metrics Phase-in Material
S1-15 Work-life balance metrics Phase-in Material
S1-16
Compensation metrics (pay gap and total
compensation) Phase-in Material
S1-17 Incidents, complaints and severe human rights impacts Phase-in Material
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Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
S4 Consumers and end-users
ESRS 2
SBM-2 Interests and views of stakeholders 71-72 Material
ESRS 2
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model 72-79 Material
S4-1 Policies related to consumers and end-users Phase-in Material
S4-2
Processes for engaging with consumers and end-users
about impacts Phase-in Material
S4-3
Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns Phase-in Material
S4-4
Taking action on material impacts on consumers and
end-users, and approaches to managing material
risks and pursuing material opportunities related to
consumers and end-users, and effectiveness of those
actions Phase-in Material
S4-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material
risks and opportunities Phase-in Material
Datapoint Disclosure requirement
Page number /
Phase-in
Material /
Non-material
ESRS G1 Business conduct
G1. ESRS
GOV-1
The role of the administrative, supervisory and
management bodies 65-66 Material
G1. ESRS
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities 81-82, 84 Material
G1-1
Corporate culture and business conduct policies and
corporate culture 104-107 Material
G1-2 Management of relationships with supplier 108 Material
G1-3 Prevention and detection of corruption and bribery 108-109 Material
G1-4 Confirmed incidents of corruption or bribery 109 Non-material
G1-5 Political influence and lobbying activities - Non-Material
G1-6 Payment practices 110 Material
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Appendix 3: Table of datapoints that derive from other EU legislation
The following table includes all other data points derived from EU legislation listed in Annex B of ESRS 2. The table shows where the data points can be found in Harvia’s
sustainability statement and which data points have been assessed as immaterial based on the double materiality analysis. If Harvia does not yet have information related to a
specific data point, it is marked with a hyphen (-).
Reference to other EU legislation
Disclosure
requirement Datapoint Sustainability information
Location and
page number SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS 2 GOV-1 21 (d) The board’s gender diversity 65 x x
ESRS 2 GOV-1
21 (e) Percentage of board members who are independent 65 x
ESRS 2 GOV-4 30 Statement of due diligence 68-69 x
ESRS 2 SBM-1
40 (d) i Involvement in activities related to fossil fuel Non-material x x x
ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production Non-material x x
ESRS 2 SBM-1
40 (d) iii Involvement in activities related to controversial weapons Non-material x x
ESRS 2 SBM-1
40 (d) iv Involvement in activities related to cultivation and production of tobacco Non-material x
ESRS E1-1
14 Transition plan to reach climate neutrality by 2050 84-85 x
ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned benchmarks Non-material x x
ESRS E1-4
34 GHG emissions reduction targets - x x x
ESRS E1-5
38 Energy consumption from fossil sources disaggregated by sources (only high climate
impact sectors)
91 x
ESRS E1-5 37 Energy consumption and mix 91 x
ESRS E1-5
40-43 Energy intensity associated with activities in high climate impact sectors 91 x
ESRS E1-6
44 Gross Scope 1, 2, 3 and Total GHG emissions 91 x x x
ESRS E1-6
53-55 Gross GHG emissions intensity 92 x x x
ESRS E1-7
56 GHG removals and carbon credits Non-material x
ESRS E1-9
66 Exposure of the benchmark portfolio to climate-related physical risks - x
ESRS E1-9
66 (a); 66
(c)
Disaggregation of monetary amounts by acute and chronic physical risk - x
ESRS E1-9
67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency classes - x
ESRS E1-9
69 Degree of exposure of the portfolio to climate-related opportunities - x
ESRS E2-4
28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation emitted to air,
water and soil
Non-material x
ESRS E3-1
9 Water and marine resources Non-material x
ESRS E3-1
13 Dedicated policy Non-material x
ESRS E3-1
14 Sustainable oceans and seas Non-material x
ESRS E3-4
28 (c) Total water recycled and reused Non-material x
ESRS E3-4
29 Total water consumption in m3 per net revenue on own operations Non-material x
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Reference to other EU legislation
Disclosure
requirement Datapoint Sustainability information
Location and
page number SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS 2 SBM-3
- E4
16 (a) i Non-material x
ESRS 2 SBM-3
- E4
16 (b) Non-material x
ESRS 2 SBM-3
- E4
16 (c) Non-material x
ESRS E4-2
24 (b) Sustainable land / agriculture practices or policies Non-material x
ESRS E4-2
24 (c) Sustainable oceans / seas practices or policies Non-material x
ESRS E4-2
24 (d) Policies to address deforestation x
ESRS E5-5
37 (d) Non-recycled waste 98 x
ESRS E5-5
39 Hazardous waste and radioactive waste 98 x
ESRS 2 SBM-3 - S1
14 (f) Risk of incidents of forced labour - x
ESRS 2 SBM-3 - S1
14 (g) Risks of incidents of child labour - x
ESRS S1-1
20 Human rights policy commitments - x
ESRS S1-1
21 Due diligence policies on issues addressed by the fundamental International Labor
Organisation Conventions
- x
ESRS S1-1
22 Processes and measures for preventing trafficking in human beings - x
ESRS S1-1
23 Workplace accident prevention policy or management system - x
ESRS S1-3
32 (c) Grievance/complaints handling mechanisms - x
ESRS S1-14
88 (b) & (c) Number of fatalities and number and rate of work-related accidents - x x
ESRS S1-14
88 (e) Number of days lost to injuries, accidents, fatalities or illness - x
ESRS S1-16
97 (a) Unadjusted gender pay gap - x x
ESRS S1-16
97 (b) Excessive CEO pay ratio - x
ESRS S1-17
103 (a) Incidents of discrimination - x
ESRS S1-17
104 (a) Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines - x x
ESRS 2 SBM-3 - S2
11 (b) Significant risk of child labour or forced labour in the value chain - x
ESRS S2-1
17 Human rights policy commitments - x
ESRS S2-1
18 Policies related to value chain workers - x
ESRS S2-1
19 Non-respect of UNGPs on Business and Human Rights and OECD guidelines - x x
ESRS S2-1
19 Due diligence policies on issues addressed by the fundamental ILO Conventions - x
ESRS S2-4
36 Human rights issues and incidents connected to its upstream and downstream value
chain
- x
ESRS S3-1
16 Human rights policy commitments - x
ESRS S3-1
17 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD
guidelines
Non-material x x
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Reference to other EU legislation
Disclosure
requirement Datapoint Sustainability information
Location and
page number SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS S3-4
36 Human rights issues and incidents Non-material x
ESRS S4-1
16 Policies related to consumers and end-users - x
ESRS S4-1
17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines - x x
ESRS S4-4
35 Human rights issues and incidents - x
ESRS G1-1
10 (b) Principles for anti-corruption or anti-bribery consistent with the UN Convention against
Corruption
108 x
ESRS G1-1
10 (d) Protection of whistle- blowers 107 x
ESRS G1-4
24 (a) Fines for violation of anti-corruption and anti-bribery laws 109 x x
ESRS G1-4
24 (b) Standards of anti- corruption and anti-bribery - x
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capital on 31 December 2024 was EUR 801.0 million
(508.5) including own shares.
On 6 June 2024, the Board of Directors of Harvia
Plc decided on a directed share issue without
consideration for the payment of rewards earned
under the company’s share-based incentive program.
The share payments concerned the performance
period 2021-2023 of the company’s share-based
incentive program launched in 2021. In the share issue,
865 own shares held by the company were transferred
without consideration to the key employees
participating in the share-based incentive program
in accordance with the program-specific terms and
conditions.
In December 2024, Harvia acquired a total of 11,000
own shares for an average price of EUR 43.88 per
share. The shares were acquired at a market price
between 10 December and 12 December 2024,
through public trading on Nasdaq Helsinki Ltd. The
repurchased shares were acquired based on the
authorization given by the Annual General Meeting
on 26 April 2024 and shall be used as a part of
the company’s incentive program. Following the
repurchase, Harvia Plc holds a total of 15,207 own
shares, corresponding to 0.08% of the total number
of shares.
The number of registered shareholders at the end
of December 2024 was 31,716 (41,328), including
nominee registers. At the end of the review period,
nominee-registered and direct foreign shareholders
held 49.7% (44.1) of the company’s shares. The ten
largest shareholders held a total of 22.6% (21.1) of
Harvia’s shares and votes.
Shareholder profile 31 December 2024 Total % Total pcs
Foreign holding and nominee-registered 49.68 9,268,622
Households 20.66 3,862,834
Companies 14.83 2,772,987
Financial institutions and insurance companies 14.74 2,755,041
General Government 0.01 1,545
Harvia Plc own shares 0.08 15,207
Total 100.00 18,694,236
Share capital and shares
Harvia’s registered share capital is EUR 80,000 and
at the end of the review period, the company held
18,694,236 (December 31, 2023: 18,694,236) shares.
All shares have equal rights to dividends and to the
company assets. The ticker symbol for the shares is
HARVIA and their ISIN code is FI4000306873. Harvia
has one series of shares, and each share entitles to one
vote in the company’s general meeting.
The company's shares are included in a book-entry
system. The share trading volume on Nasdaq Helsinki
in January-December was EUR 311.4 million (205.2)
and 8,089,223 shares (8,997,433). The share’s volume
weighted average price during the review period was
EUR 38.50 (22.81), the highest price was EUR 47.90
(28.08) and the lowest EUR 25.18 (17.41). The closing
price of the share at the end of December 2024 was
EUR 42.85 (27.20). The market value of the share
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Shareholders on 31 December 2024 Pcs
Percentage of
shares and votes
ONVEST OY 821,689 4.40
WESTSTAR OY 569,942 3.05
NORDEA NORDIC SMALL CAP FUND 568,206 3.04
EVLI FINNISH SMALL CAP FUND 558,000 2.98
EVLI FINLAND SELECT FUND 355,563 1.90
TIIPETI OY 342,790 1.83
ELO KESKINÄINEN TYÖELÄKEVAKUUTUSYHTIÖ 276,000 1.48
KESKINÄINEN ELÄKEVAKUUTUSYHTIÖ ILMARINEN 269,820 1.44
KTR-INVEST OY 242,625 1.30
MANTEREENNIEMI OY 214,645 1.15
PAJUHARJU TAPIO OLAVI 175,000 0.94
VESTERINEN ARI JUHANI 149,664 0.80
HARVIA TIMO TAPIO 102,385 0.55
AHONEN KARL DAVID 99,472 0.53
KESKINÄINEN TYÖELÄKEVAKUUTUSYHTIÖ VARMA 80,069 0.43
Total 4,825,870 25.815
* Note that approx. 45% of Harvia's shareholders are nominee-registered, and all the major nominee registered shareholders are not
listed here.
Management holdings
Members of the Board of Directors, CEO, the Group
Management Team, and the companies under their
control owned on 31 December 2024 a total of 507,816
Harvia shares, corresponding to 2.7 percent of shares
and votes in the company. (31 Dec 2023: 568,993
shares and 3.0%)
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Calculation of key figures and reconciliation of alternative performance
measures
Alternative performance measures i.e. performance measures not based on financial
statements standards provide meaningful supplemental information by excluding
items that may not be indicative of the operating result or cash flows of Harvia.
Alternative performance measures enhance comparability from period to period
and are frequently used by analysts, investors and other parties. APMs should not be
considered as a substitute for measures of performance in accordance with the IFRS.
EUR thousand 1-12/2024 1-12/2023
Operating profit 35,486 33,044
Depreciation and amortisation 6,976 6,254
EBITDA 42,445 39,298
Items affecting comparability
Business transactions related expenses 1,565 231
Restructuring expenses 50 395
Total items affecting comparability 1,615 626
Adjusted EBITDA 44,060 39,924
Depreciation and amortisation -6,976 -6,254
Adjusted operating profit 37,100 33,670
Finance costs, net -3,605 -3,511
Adjusted profit before income taxes 33,495 30,159
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CALCULATION OF KEY FIGURES
Key figure Definition
Items affecting comparability Material items outside the ordinary course of business, which relate to i) costs related to the listing ii) strategic development projects, iii)
acquisition and integration related expenses, iv) restructuring expenses and v) net gains or losses on sale of assets and grants received.
Adjusted operating profit Operating profit before items affecting comparability.
Adjusted EBITDA EBITDA before items affecting comparability.
Adjusted profit before income taxes Profit before income taxes excluding items affecting comparability.
Earnings per share, undiluted Profit for the period attributable to the owners of the parent divided by weighted average number of shares outstanding.
Earnings per share, diluted Profit for the period attributable to the owners of the parent divided by weighted average number of shares outstanding taken into consideration
the effects associated with any parent company's obligations regarding the possible share issue in the future.
Net debt Lease liabilities and current and non-current loans from credit institutions less cash and cash equivalents.
Leverage Net debt divided by adjusted EBITDA (12 months).
Net working capital Inventories, trade and other receivables less trade and other payables.
Capital employed excluding goodwill Capital employed excluding goodwill is total equity and net debt less goodwill.
Adjusted return on capital employed (ROCE) Adjusted operating profit (12 months) divided by average capital employed excluding goodwill.
Operating free cash flow Adjusted EBITDA added/subtracted by the change in net working capital in consolidated statement of cash flows less investments in tangible and
intangible assets.
Cash conversion Operating free cash flow divided by adjusted EBITDA.
Equity ratio Total equity divided by total assets less advances received.
Return on Equity (ROE) Profit for the period divided by average total equity
Equity ratio Total equity divided by total assets less advances received.
Return on Equity (ROE) Profit for the period divided by average total equity
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Consolidated financial statements IFRS
Consolidated statement of comprehensive income
EUR thousand Note
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Revenue 2.1 175,206 150,547
Other operating income 2.3 1,001 864
Materials and services 2.3 -62,602 -56,101
Employee benefit expenses 2.3 -35,213 -28,919
Other operating expenses 2.3 -35,929 -27,093
Depreciation and amortization 2.4 -6,976 -6,254
Operating profit 35,486 33,044
Share in profits and losses of associated
companies -76 -242
Finance income 5.4 1,959 795
Finance costs 5.4 -4,601 -3,929
Changes in fair values 5.1 -887 -136
Finance costs, net -3,605 -3,511
Profit before income taxes 31,880 29,533
Income taxes 6.3 -7,638 -6,253
Profit for the period 24,242 23,280
Attributable to:
Owners of the parent 24,242 23,271
Non-controlling interests 0 10
EUR thousand Note
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Other comprehensive income
Items that may be reclassified to profit or loss in
subsequent periods:
Translation differences 6.4 2,778 -1,785
Items that will not be reclassified to profit or loss:
Actuarial gains and losses 5.6 -156 124
Gains and losses on cash flow hedges -4 0
Other comprehensive income, net of tax 2,618 -1,662
Total comprehensive income 26,860 21,619
Attributable to:
Owners of the parent 26,860 21,609
Non-controlling interests*** 0 10
Earnings per share for profit attributable to the
owners of the parent:
Basic EPS (EUR) 2.5 1.30 1.25
Diluted EPS (EUR) 2.5 1.29 1.24
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of financial position
EUR thousand Note 31-Dec-2024 31-Dec-2023
ASSETS
Non-current assets
Intangible assets 3.2 16,874 8,704
Goodwill 3.2 91,046 73,402
Property, plant and equipment 3.3 28,173 26,904
Right-of-use assets 3.4 8,092 2,488
Investments in associated companies 3.1 0 460
Derivative financial instruments 5.1 982 1,869
Deferred tax recevables 6.3 841 1,045
Total non-current assets 146,007 114,872
Current assets
Inventories 4.1 49,151 35,480
Trade and other receivables 4.2 22,278 18,697
Income tax receivables 626 4,634
Cash and cash equivalents 5.2 46,447 40,581
Total current asset 118,502 99,392
Total assets 264,509 214,264
EUR thousand Note 31-Dec-2024 31-Dec-2023
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 6.4 80 80
Other reserves 6.4 35,935 32,414
Retained earnings 6.4 62,583 51,810
Profit for the period 6.4 24,242 23,271
Total equity attributable to owners of the
parent 122,840 107,575
Non-controlling interests 6.4 1,244 1,082
Total equity 124,085 108,656
Liabilities
Non-current liabilities
Loans from credit institutions 5.1 95,400 75,404
Lease liabilities 3.4 7,307 1,981
Derivative financial instruments 5.1 4 0
Deferred tax liabilities 6.3 2,773 1,182
Employee benefit obligations 5.6 1,754 1,671
Other non-current liabilities 5.1 2,965 202
Provisions 3.5 979 277
Total non-current liabilities 111,182 80,716
Current liabilities
Loans from credit institutions 5.1 5 6
Lease liabilities 3.4 951 760
Employee benefit obligations 5.6 159 176
Income tax liabilities 1,359 5,662
Trade and other payables 4.3 26,474 18,045
Provisions 3.5 295 242
Total current liabilities 29,243 24,891
Total liabilities 140,425 105,607
Total equity and liabilities 264,509 214,264
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of changes in equity
EUR thousand Attributable to owners of the parent
Note
Share
capital
Fair value
reserve
Invested unrestricted
equity reserve
Translation
differences
Retained
earnings
Equity attributable to
owners of the parent
Non-controlling
interests Total
Equity at 1 January 2023 80 32,562 865 63,766 97,273 1,072 98,345
Share-based incentive plan 995 995 995
Dividend distribution -11,956 -11,956 -11,956
Share-based payments -346 -346 -346
Total transactions with shareholders 6.4 649 -11,956 -11,307 -11,307
Profit for the period 23,271 23,271 10 23,280
Actuarial gains and losses 5.6 124 124 124
Translation differences 6.4 -1,785 -1,785 -1,785
Total comprehensive income 124 -1,785 23,271 21,609 10 21,619
Equity at 31 December 2023 80 33,334 -921 75,081 107,575 1,082 108,656
Equity at 1 January 2024 80 33,334 -921 75,081 107,575 1,082 108,656
Share-based incentive plan 1,430 1,430 1,430
Dividend distribution -12,709 -12,709 -12,709
Prior year adjustment 210 210 210
Repurchase of own shares -483 -483 -483
Share-based payments -43 -43 -43
Total transactions with shareholders 6.4 903 12,499 -11,595 -11,595
Profit for the period 24,242 24,242 24,242
Acquisitions 163 163
Gains and losses on cash flow hedges, net of tax -4 -4 -4
Actuarial gains and losses 5.6 -156 -156 -156
Translation differences 2,778 2,778 2,778
Total comprehensive income -4 -156 2,778 24,242 26,860 26,860
Equity at 31 December 2024 80 -4 34,081 1,857 86,825 122,840 1,244 124,085
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of cash flows
EUR thousand Note
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Cash flows from operating activities
Profit before taxes 31,880 29,533
Depreciation and amortization 2.4 6,976 6,254
Finance income and finance costs 5.4 3,605 3,511
Other adjustments 163 310
Cash flows before changes in working capital 42,625 39,608
Change in working capital
Increase (-) / decrease (+) in trade and other
receivables 4.2 -589 -1,395
Increase (-) / decrease (+) in inventories 4.1 -8,745 10,108
Increase (+) / decrease (-) in trade and other
payables 4.3 6,418 -912
Cash flows from operating activities before
financial items and taxes 39,709 47,409
Interest and other finance costs paid -56 -26
Interest and other finance income received 188 100
Income taxes paid 6.3 -8,173 -8,343
Net cash from operating activities 31,668 39,139
EUR thousand Note
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Cash flows from investing activities
Purchases of tangible and intangible assets 3.2, 3.3 -6,149 -3,124
Sale of tangible and intangible assets 8 89
Acquisition of subsidiaries, net of cash acquired 3.1 -24,908 -2,801
Dissolution of an associated company, net of
cash 61
Interest and other finance costs received 938
Net cash from investing activities -30,050 -5,835
Cash flows from financing activities
Proceeds from non-current loans 5.1 20,000 925
Repayment of non-current liabilities 5.1 71 -850
Change in current liabilities 5.1 -1 -2,011
Repayment of lease liabilities 3.4 -927 -765
Interest and other finance costs paid -2,727 -2,928
Dividends paid 6.4 -12,709 -11,956
Net cash from financing activities 3,708 -17,585
Net change in cash and cash equivalents 5,325 15,718
Cash and cash equivalents at 1 January 5.2 40,581 25,310
Exchange gains/losses on cash and cash
equivalents 540 -447
Cash and cash equivalents at 31 December 46,447 40,581
The notes are an integral part of these consolidated financial statements.
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Notes to Financial Statements
This section presents the Group’s accounting policies to the extent that they are
not disclosed in other notes. These principles have been applied consistently in all
the periods presented, unless otherwise stated.
Section 1: Basis Of Preparation
- Holding company Harvia US Holdings Inc. and
sauna manufacturing company Harvia US Inc. The
company also sells Harvia sauna products in the
Unites States. The companies were established in
November 2018.
- Harvia Holding GmbH was established in February
2020 and is parent of EOS Saunatechnik GmbH
in Germany. EOS manufactures heaters and other
sauna products. (78.6% acquired on 30 April 2020,
in July 2022 Harvia acquired the minority
shareholding)
- Kirami Oy subgroup manufacturing Finnish still-
water hot tubs (acquired on 28 May 2021)
- Sauna-Eurox and Parhaat Löylyt Oy specializing in
selling heaters stones (acquired on 31 August 2021)
- Harvia Japan Limited, a company selling heaters and
saunas (established in August 2023)
- Phoenix El-Mec srl, a manufacturer of electro-
mechanical timers (acquired on 29 September 2023)
- Holding company TS Spa Holdings LLC (established
in July 2024) and ThermaSol Steam Bath LLC, a
manufacturer of high-end steam showers and steam
rooms (acquired on 31 July 2024).
1.1 GENERAL INFORMATION
Harvia Plc (the “Parent company”) is a Finnish limited
liability company and the parent company of the Harvia
Group (“Harvia”, “Harvia Group” or the “Group”). The
registered address of Harvia Plc is Teollisuustie 1-7,
PO BOX 12, 40951 Muurame, Finland.
Harvia is a leading global sauna and spa company with
five brands well known in the market: Harvia, EOS,
Almost Heaven Saunas, Kirami, and ThermaSol. For
the past 70 years, Harvia has expanded its operations
from the manufacturer of heaters to a provider of wide
range of saunas and spa products. Harvia's products
are exported to over 90 countries. The Group’s product
range includes sauna heaters, sauna rooms, infrared and
steam saunas, steam showers, spa components, control
units, heater stones, sauna accessories and sauna
interior solutions such as sauna benches, audio speakers
and lighting solutions. The Group also provides a limited
range of sauna installation, maintenance and repair
services. At the end of the financial year 2024 the
company had 696 employees (31 December 2023: 605),
of which 255 (238) worked in Finland, 145 (76) in the
United States, 125 (116) in Germany, 61 (67) in Romania,
56 (57) in China and Hong Kong, 34 (31) in Austria,
12 (12) in Italy, 6 (6) in Estonia and 2 (2) in Sweden.
Harvia Plc is the parent company of the Group. The
following subsidiaries are consolidated to the Group’s
financial statements:
- Harvia Group Oy which is the second management
company of the Group
- Harvia Finland Oy, manufacturing heaters and sauna
and steam bath products
- Harvia Austria GmbH (previously Sentiotec
GmbH) subgroup specialised in control units,
sauna products and electric heaters (acquired
on 4 November 2016)
- Harvia (HK) Sauna Co. Ltd subgroup manufacturing
sauna heaters, steam generators and components of
similar equipment
- Harvia Estonia Oü manufacturing steam room
equipment and sauna products
- LLC Harvia RUS, a former sales company. The
company has not been operative since Harvia’s exit
from Russia in 2022.
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The parent company Harvia Plc is a Finnish public
company, established according to the Finnish
legislation. Harvia Plc shares are traded at NASDAQ
OMX Helsinki main list. The consolidated financial
statements are available at the head office at
Teollisuustie 1-7, 40950 Muurame and on the Group's
website harviagroup.com.
The Board of Directors of Harvia Plc has approved
these consolidated financial statements for issue
on 12 February 2025. Under the Finnish Limited
Liability Companies Act, shareholders can approve or
disapprove the consolidated financial statements in
the Annual General Meeting held after the release. The
Annual General Meeting is also entitled to amend the
consolidated financial statements.
1.2 ACCOUNTING POLICIES
The consolidated financial statements of Harvia Group
have been prepared in accordance with International
Financial Accounting Standards (IFRS) as adopted
by the European Union. IFRS Accounting Standards
refer to the standards and interpretations applicable
by corporations set out by the Finnish Accounting
Act and other regulations set out on basis of this
ordinance enforced for application in accordance
with the procedure stipulated in the regulation (EC)
No 1606/2002 of the European Parliament and of
the Council. The notes to the consolidated financial
statements also comply with the Finnish accounting
and corporate legislation complementing the IFRS
Accounting Standards.
The figures presented in the financial statements are
rounded and therefore the sum of individual figures
may differ from the presented sum figure.
How should Harvia Group’s accounting policies be read?
Harvia Group’s accounting policies for the financial
statements are described in conjunction with each note
in order to provide enhanced understanding of each
accounting area. The following table summarizes the
note in which each accounting policy is presented and
the relevant IFRS Accounting Standard.
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Accounting principle Note IFRS standardRevenue 2.1 Revenue IFRS 152.3 Other income and expense itemsEmployee benefits IAS 19 5.6 Defined benefit obligationsBusiness combinations 3.1 Business combinations IFRS 3Intangible assets 3.2 Intangible assets IAS 36, IAS 38Property, plant and equipment 3.3 Property, plant and equipment IAS 16, IAS 36Leases 3.4 Leases IFRS 16Provisions 3.5 Provisions IAS 37Inventories 4.1 Inventories IAS 2Financial assets and liabilities 5.1, 5.2 Financial assets and liabilities IAS 32, IFRS 7, IFRS 13, IFRS 9Financial risk management 5.3 Financial risk management IAS 32, IFRS 7, IFRS 13, IFRS 9Share based payments 6.2 Related party transactions IFRS 2Taxes 6.3 Taxes IAS 12 Shareholder’s equity 6.4 Shareholder’s equity IAS 1
but are not yet effective. The new and amended
standards and interpretations issued by the IASB that
are effective in future periods are not expected to
have a material impact on the consolidated financial
statements of Harvia when adopted. Harvia intends
to adopt these new and amended standards and
interpretations, if applicable, when they become
effective and are endorsed by the EU.
Historical cost convention
The consolidated financial statements of Harvia Group
have been prepared on a historical cost basis, unless
otherwise stated.
Foreign currency translation
Items included in the financial statements of the
Group's entities are measured using the currency of
the primary economic environment in which the entity
operates (the functional currency). The consolidated
financial statements are presented in thousands of
euros unless otherwise stated.
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are recognized
in profit or loss.
The results and financial position of foreign operations
that have a functional currency different from
the presentation currency are translated into the
presentation currency as follows:
- assets and liabilities for each balance sheet
presented are translated at the closing rate at the
date of that balance sheet
- income and expenses for each statement of profit or
loss are translated at average exchange rates, and
- all resulting exchange differences are recognized in
other comprehensive income.
New and amended standards and interpretations
Harvia has not applied any new standards or
interpretations with material impact on consolidated
financial statements.
Harvia has not early adopted any new or amended
standards or interpretations that have been issued
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1.3 CRITICAL ACCOUNTING ESTIMATES AND
SIGNIFICANT MANAGEMENT JUDGMENTS
The Group’s most significant accounting policies
are primarily described together with the applicable
note. The preparation of Harvia Group’s consolidated
financial statements requires the use of estimates,
judgment and assumptions that may affect the
application of accounting policies and the recognized
amounts of assets and liabilities at the date of the
financial statements. In addition, the recognized
amounts of revenue and expenses during the periods
presented are affected. Actual results may differ from
previously made estimates and judgments.
Estimates and judgments are reviewed regularly.
Revisions to accounting estimates are recognized in
the period in which the estimate is revised and in all
subsequent periods.
The sources of uncertainty and management judgment
which have been identified by the Group and which
are considered to fulfill these criteria are presented in
connection to the items considered to be affected. The
table below discloses where to find these descriptions.
Sources of estimation uncertainty and management judgement NoteSegment reporting 2.2Research and development expenses 3.2Provisions 3.5Defined benefit obligations 5.6Share-based payments 6.2Taxes 6.3
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Section 2: Group Performance
This section focuses on the results and performance of the Group. The accompanying
notes on the following pages explain the different components of the Group’s
operating profit and the company’s earnings per share.
2.1 REVENUE
Harvia is the world’s leading sauna and spa company.
The Group’s product range includes sauna heaters,
sauna rooms, infrared and steam saunas, steam showers
and steam rooms, steam sauna and spa components,
Scandinavian hot tubs, control units, sauna accessories
and sauna interior solutions such as sauna benches,
audio speakers and lighting solutions. The Group
also provides a limited range of sauna installation,
maintenance and repair services. In 2024, the biggest
market areas of Harvia were North America and
Continental Europe.
Harvia Group’s revenue consists mainly of sales of
products. Only minor part comes from sales of sauna
installation, maintenance and repair services provided
COMPONENTS OF OPERATING PROFIT
EUR thousand 2024 % of revenue 2023 % of revenueRevenue 175,206 150,547 Other operating income 1,001 1% 864 1%Materials and services -62,602 -36% -56,101 -37%Employee benefit expenses -35,213 -20% -28,919 -19%Other operating expenses -35,929 -21% -27,093 -18%Depreciation and amortisation -6,976 -4% -6,254 -4%Operating profit 35,486 20% 33,044 22%
by Group companies. Harvia sells most of its products
to retailers, distributors and sauna builders. A factor that
unites different customer groups is the long-term nature
of customer relationships. Harvia has customer contracts
with clients, but typically the contracts are short term
(most typical contract type is an annual contract). Long-
term customer relationships are based on customer
loyalty. Harvia’s largest customer relationship is based
on the customer’s group-level framework agreement.
The individual agreements of Group companies with this
customer accounted for a total of approximately 9% of
the Group’s net sales in 2024 (2023: 10%).
Outside Europe, especially in North America and Asia,
the sauna market has developed favorably for the past
several years. The strong growth in North America has
been heavily supported by the growing awareness of
sauna and its health benefits as well as strong consumer
confidence and economic conditions.
In Europe, the market conditions remained rather
challenging despite some continuing positive
development especially in the professional and more
high-end segments. In Northern Europe, the market has
been challenging for long especially in Finland, where low
activity in the construction and housing market as well as
weak consumer confidence have put significant pressure
on our sales throughout the year. Despite the challenges,
the Northern Europe region still managed to deliver slight
growth, driven by Scandinavia and the Baltics.
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2.1.1 ACCOUNTING POLICY
Harvia’s revenue mainly consists of the sales of
sauna and spa products that it has produced. Harvia
sells most of its products to retailers, distributors or
export companies. Sales of goods are recognized
when the control is transferred to the buyer. This
is when the goods have been delivered to the
buyer. Delivery is deemed to have taken place
when the products have been delivered to the
agreed location and the risk of obsolescence and
damage of products has been transferred to the
customer. In addition, for certain contract terms,
a transportation service is considered to be a
separate performance obligation when control to the
goods is transferred to the buyer before the goods
are delivered. However, transportation service is
typically performed during the same day as control
is transferred to the customer and therefore the
revenue from goods and transportation service is
recognized at the same time.
Amounts disclosed as revenue are net of returns,
volume-based marketing subsidies and rebates.
Goods are often sold with volume discounts based
on aggregate sales over a 12-month period. Revenue
from sales is recognized based on the price specified
in the contract, net of the estimated volume-
based discounts. A contract liability is recognized
for expected volume discounts and marketing
subsidies payable to customers in relation to sales
made until the end of the reporting period. Certain
wholesale customers are given a right of return in
respect of certain campaign products if the goods
are not sold within six months after the purchase
or the legislation concerning products will change.
Products directly sold to consumers via online shops
are subject to a 14-day return policy. A contract
liability for the expected refunds to customers is
recognized as adjustment to revenue. Accumulated
experience is used to estimate and provide for the
discounts, volume-based marketing subsidies and
returns, and revenue is only recognized to the extent
that it is highly probable that a significant reversal
will not occur.
As for the sold products, they are usually given a
payment period between 30 and 120 days which
is consistent with the market practice, and thus no
finance element is included in the sales. A receivable
is recognized when the goods are delivered.
This is the point in time that the consideration is
unconditional because only the passage of time is
required before the payment is due.
Minority of Harvia Group’s revenue comes from
rendering services, but mainly from installation and
maintenance services. Revenue from services is
recognized in the accounting period in which the
services are rendered.
Marketing subsidies are allocated to allowances
included in the revenue and marketing costs
included in other expenses. Marketing subsidies
determined as the percentage of sales volume and
against which marketing services are not obtained,
are reducing the revenue. Other marketing subsidies
are allocated to operating expenses.
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Revenue by sales region
In 2024, Harvia changed its revenue reporting to reflect the new organizational structure as shown below.
EUR thousand 2024 % 2023 %1)Northern Europe 43,757 25% 45,447 30%2)Continental Europe 52,686 30% 50,645 34%North America 3)62,049 35% 43,449 29%4)APAC & MEA 16,714 10% 11,007 7%Total 175,206 100% 150,547 100%
1) Finland, Sweden, Denmark, Norway, Iceland, Estonia, Latvia, Lithuania
2) Europe excluding countries specified as Northern Europe
3) The United States and Canada
4) The region Asia-Pacific, Middle East, Africa, and all other countries excluding above
Revenue by product group
EUR thousand 2024 % 2023 %Heating equipment * 94,012 54% 82,128 55%Saunas and scandinavian hot tubs 46,758 27% 42,952 29%Steam products** 10,675 6% 4,573 3%Accessories and heater stones 12,060 7% 8,812 6%Spare parts and services 11,700 7% 12,083 8%Total 175,206 100% 150,547 100%
* Sauna heaters, control units, IR components
** Including steam generators and other steam equipment
Revenue from projects recognized over time was
EUR 0 thousand in 2024 (2023: EUR 653 thousand).
The Group does not disclose transaction price allocated
to fully or partly unfilled performance obligations,
because performance obligation is part of a contract
where contract period less than one year.
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2.2 SEGMENT REPORTING
The Group constitutes a single operating segment.
This is consistent with the way that internal reporting
is provided to the chief operating decision maker
(”CODM”) and the way that chief operating decision
maker determines allocation of resources and assesses
the performance.
2.2.1 SIGNIFICANT MANAGEMENT JUDGEMENT
Determining operating segments
The management of Harvia Group has used
judgement when determining the Group's segment
reporting. Areas requiring judgement have been
the determination of CODM, the decisions made
and reports used when managing the Group.
The Board of Directors has been determined as
the chief operating decision maker. The Board
of Directors, taking into account its composition
and its active participation in key strategic
and operative decision-making, is responsible
for allocating resources and assessing the
performance. The management of Harvia Group,
using its judgement, has determined that the
Group has one operating segment.
The Group’s non-current assets are allocated geographically as follows:
EUR thousand 31-Dec-2024 31-Dec-2023Finland 65,072 82,397Germany 15,486 16,483The United States 60,717 6,483Other European countries 2,884 4,171Asia 1,848 1,964Total non-current assets 146,007 111,498
Revenue by geographical areas has been presented in note 2.1.
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2.3 OPERATING INCOME AND EXPENSES
This note provides information on other components of
operating profit: other operating income, material and
service expenses, employee expenses, other operating
expenses as well as depreciations and amortizations.
Other operating income includes gains on the sale of
property, plants and equipment and sales of scrap
metal, which is generated from production.
Materials and services in the consolidated statement of
comprehensive income consist mainly of purchases of
electricity and electronic components such as heating
elements, control units and wood timber for saunas.
The change in inventories of finished goods and work in
progress will adjust the income statement by the cost
effect of items booked and removed from inventory
The following table presents the different components of employee expenses:
EUR thousand 2024 2023Wages and salaries 29,913 23,889Pension costs 2,496 2,450Other employee expenses 2,804 2,580Total 35,213 28,919
at the end of the period. The most significant items of
other operating expenses relate to sales (as sales freight
costs and sales related commissions) and marketing.
Harvia’s production facilities are characterized by
efficient production. Harvia has a long experience in
manufacturing of heaters and other sauna and spa
products, and the staff is qualified and experienced.
The company’s operations are highly integrated. Own
R&D department is specialized in the development
of production process and products. In Muurame,
company’s own department specialized in tools
and machinery used in production ensures the cost-
effectiveness of the production equipment and
machinery maintenance and repair.
2.3.1 ACCOUNTING POLICY
A defined contribution plan is a pension plan
under which the Group pays fixed contributions
into pension insurances. The Group has no
legal or constructive obligations to pay further
contributions if the insurance does not hold
sufficient assets to pay all employees the benefits
relating to employee service in the current and
prior periods.
Harvia Group employed a total of 696 employees as
at 31 December 2024 (2023: 605 employees). Of
the total average number of employees in 2024, 308
were officers and 393 workers. The continuing strong
growth in North America was reflected in the increasing
personnel in the United States, but was seen also in
Finland, as the majority of the company’s heaters sold
in North America are manufactured in the Muurame
factory. The acquisition of ThermaSol at the end of July
2024 increased the personnel in the United States.
Pension plans of the Group employees in Finland,
Austria, Germany, Romania, China, USA, Hong Kong
and Estonia are defined contribution plans. Harvia has
a defined benefit pension plan in Germany, which is
described in more detail in the note 5.6.
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Other significant expense items are as follows:
Other operating expenses
EUR thousand 2024 2023Sales and marketing* 19,175 14,413Travel and cars 1,883 1,257Plant & machinery maintenance 2,712 2,034Electricity, heating and water 1,910 1,617Audit, accounting, consulting and legal expenses 2,938 1,408Rents 642 495IT and telecommunication 2,068 1,402Voluntary staff expenses 985 762Insurances 943 702Office & administration 1,221 1,146Other** 1,451 1,856Total 35,929 27,093
* Sales and marketing include, among others, warranty costs, sales freight costs, sales commissions, and marketing expenses.
** Other expenses include patent expenses, membership fees, exchange rate differences, and similar.
Audit, accounting, consulting and legal expenses and
other expense items include items that are related
to the Group’s strategic development projects,
acquisitions and loss on sales of assets and affect the
comparability between the different periods.
The auditor’s fees recognized during 2024 to
Deloitte Oy amounted to EUR 241 thousand and to
PricewaterhouseCoopers Oy EUR 10 thousand (In 2023,
fees to PricewaterhouseCoopers: EUR 223 thousand).
Of these, EUR 235 thousand were fees to Deloitte
relating to statutory audit and EUR 10 thousand to
PricewaterhouseCoopers Oy (2023: EUR 197 thousand).
EUR 6 thousand of fees were related to auditor
opinions and certificates (2023: EUR 0 thousand) and
EUR 0 thousand were related to other fees (2023:
EUR 26 thousand). Audit fees paid to other auditors
were EUR 69 thousand (2023: EUR 89 thousand) and
EUR 18 thousand were related to auditor opinions
and certificates (2023: EUR 0 thousand) and EUR 57
thousand were related to other fees. Acquisitions,
mergers within the Group, and the corporate
sustainability reporting directive (CSRD directive) have
increased the auditor’s fees.
Harvia Group’s research and development department
employed an average of 21 persons (2023: 21 persons),
and expensed research and development costs totaled
EUR 1,759 thousand in the financial year 2024 (2023:
EUR 1,714 thousand).
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2.4 DEPRECIATION AND AMORTIZATION
2.4.1 ACCOUNTING POLICY
Property, plant and equipment
Land and buildings are recognized at historical cost.
Land is not depreciated. Buildings are depreciated
over their useful lives.
Machinery and equipment as well as other tangible
assets are depreciated over their useful lives.
Most machinery and equipment are depreciated
in 3 to 10 years and exceptionally long-lasting
machines in 20 years. Useful lives are based on
estimates of the period over which the assets will
generate revenue. Depreciation is recognized on a
straight-line basis based on the cost of the assets
and estimated useful lives. Impairment tests for
depreciable non-current assets are performed if there
are indications of impairment at the balance sheet
date. Land areas are also assessed for any possible
impairment indicators.
The useful lives of the assets are as follows:
- Buildings 15-30 years
- Machinery and equipment 3-20 years
- Other tangible assets 3-5 years
Intangible assets
Purchased and internally generated intangible assets
are recognized at historical cost. Intangible assets
acquired in business combinations are measured
at fair value at acquisition. Intangible assets are
amortized over 10 to 15 years except for capitalized
development costs and software licenses, which are
amortized in 3 to 5 years.
The following table presents depreciation and amortization by asset class:
EUR thousand 2024 2023Depreciation by class Buildings and constructions 1,017 1,040Machinery and equipment 1,923 1,852Other tangible assets 149 111Total property, plant and equipment 3,089 3,003Leased buildings and structures 706 463Leased machinery and equipment 199 220Total right-of-use assets 905 683
EUR thousand 2024 2023Amortization by class Development costs 489 462Customer relationships 1,074 1,204Brand 618 490Technology 111 68Other intangible assets 371 343Impariment charges 318Total intangible assets 2,982 2,567Total depreciation and amortization 6,976 6,254
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2.5 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the
profit for the period attributable to the owners of the
parent company by the weighted average number
of shares outstanding during the financial period.
Diluted earnings per share is calculated on the same
basis as basic earnings per share unless it takes into
consideration the effects associated with any parent
company’s obligations regarding the possible share
issue in the future.
2024 2023Profit for the period attributable to the owners of the parent company, EUR thousand 24,242 23,271Weighted average number of shares outstanding during the financial period, '000 18,689 18,687Basic earnings per share, EUR 1.30 1.25Share-based long-term incentive plan 137 77Weighted average number of shares outstanding during the year, diluted, '000 18,827 18,764Diluted earnings per share, EUR 1.29 1.24
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Section 3: Capital Employed
This section describes the assets that are required to have to run the business and
Harvia’s acquisitions. The information on net working capital is presented in section 4.
3.1 BUSINESS COMBINATIONS
For Harvia, acquisitions are a way to speed up the
implementation of its strategy. In 2024, Harvia
acquired ThermaSol Steam Bath LLC, which is a
leading manufacturer of high-end steam showers and
steam rooms in the United States. The acquisition
complements Harvia Group’s sauna offering in the
3.1.2 ACCOUNTING ESTIMATES AND MANAGEMENT
JUDGEMENT
Net assets acquired through business combinations
are measured at fair value. The measurement of
fair value of the acquired net assets is based on
market value of similar assets (property, plant and
equipment), or an estimate of expected cash flows
(intangible assets). The valuation, which is based on
prevailing repurchase value, expected cash flows
or estimated sales price, requires management
judgment and assumptions. The management trusts
that the applied estimates and assumptions are
sufficiently reliable for determining fair values.
3.1.1 ACCOUNTING POLICY
The acquisition method is applied for business
combinations. The consideration transferred for
the acquisition of a subsidiary is the fair values of
the assets transferred, the liabilities incurred to the
former owners of the acquiree and the shares issued
by the Group. The consideration transferred includes
the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable
assets acquired and identifiable liabilities assumed
in a business combination are measured initially at
their fair values at the acquisition date. Identifiable
assets include tangible assets as well as intangible
assets, such as customer relationships, brand
and technology.
Acquisition related costs are expensed as incurred
and presented as other operating expenses in the
income statement.
attractive steam segment, supporting the company’s
growth in the United States and its leading position as
a global sauna solutions provider. The financial results
of ThermaSol have been consolidated with Harvia’s
figures starting from 31 July 2024.
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ACQUISITIONS IN 2024
Harvia announced on 22 July 2024 that it had signed
an agreement to acquire 100% of the shares of
ThermaSol Steam Bath LLC (“ThermaSol”). ThermaSol
is a leading manufacturer of high-end steam showers
and steam rooms in the United States. The acquisition
complements Harvia Group’s sauna offering in the
attractive steam segment, supporting the company’s
growth in the United States and its leading position as
a global sauna solutions provider. The transaction was
closed on 31 July 2024.
The purchase price was USD 30.4 million. Harvia
financed the acquisition with a bullet loan of
EUR 20 million and with cash funds.
Fixed assets amounting to EUR 0.5 million, net working
capital items amounting to EUR 4.5 million, and cash
and cash equivalents amounting to EUR 1.1 million
were transferred in the ThermaSol acquisition.
EUR 5.8 million in right-of-use assets was recorded
pertaining to a lease agreement. The purchase price
allocation pertaining to the acquisition includes
intangible assets amounting to EUR 8.3 million with
annual amortization of approximately EUR 0.8 million.
According to the purchase price allocation, goodwill
amounted to EUR 16.9 million.
Purchase price allocation of the acquisition is presented
in the following table.
EUR thousandPurchase price 28,639Net identifiable assets acquired Non-current assets Intangible assets 8,251Property, plant and equipment 478Right-of-use assets 5,824Current assets Inventories 4,242Trade and other receivables 1,510Cash and cash equivalents 1,103Total assets 21,409Non-current liabilities Provisions 626Deferred tax liabilities 1,951Lease liabilities 5,406Current liabilities Trade and other payables 1,235Lease liabilities 418Total liabilities 9,637Total net assets acquired 11,772Group’s share of net assets 11,772Goodwill 16,867Cash flow impact EUR thousand Cash consideration of the acquisition 26,011Cash balance acquired -1,103Impact on cash flows - investing activities 24,908
Expenses related to the acquisition totaling
EUR 1.5 million are presented under other operating
expenses and in operating cash flows in the
consolidated statement of cash flows.
Trade and other receivables included trade receivables
with a fair value of EUR 1.3 million. At the date of the
acquisition, the gross contractual amount for trade
receivables was EUR 1.3 million, which is not expected
to include uncollectible receivables.
The goodwill of EUR 16.9 million reflects the value of
know-how and expertise in steam shower and steam
room solutions. The goodwill is not tax deductible.
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3.2 INTANGIBLE ASSETS AND IMPAIRMENT
TESTING
The majority of the goodwill was recognized in
connection to the formation of Harvia group companies
in 2014. In 2024, Goodwill increased due to the
acquisition of ThermaSol. Harvia also updated its
goodwill allocation to cash-generating units by adding
a separate unit for Northern America.
3.2.1 ACCOUNTING POLICY
Goodwill
Goodwill arises on the acquisition of subsidiaries
and represents the excess of the consideration
transferred over the fair value of the identifiable net
assets acquired.
For the purpose of impairment testing, goodwill
acquired in a business combination is allocated to
cash generating units (CGU’s), that are expected to
benefit from the synergies of the combination. This
unit to which the goodwill is allocated represents the
lowest level within the entity at which the goodwill is
monitored for internal management purposes.
Goodwill impairment reviews are undertaken
annually or more frequently if events or changes in
circumstances indicate a potential impairment. The
carrying value of the CGU containing the goodwill is
compared to the recoverable amount, which is the
higher of value in use and the fair value less costs of
disposal. Any impairment is recognized immediately
as an expense and is not subsequently reversed.
Intangible assets
Intangible assets mainly include customer
relationships, brands and technology acquired in
business combinations that are recognized in fair
value at the date of acquisition. These are amortized
on a straight-line basis over 10-15 years. Other
intangible assets also include capitalised development
expenditures and software licenses and are amortized
on a straight-line basis in 3 to 5 years.
Capitalized development costs
Development costs are capitalized when certain
criteria related to economic and technical feasibility
are met and when it is expected that the product will
generate economic benefits in the future. Capitalized
development costs mainly include materials,
supplies and direct labor costs. Development costs
booked earlier as expenses will not be capitalized
later. Intangible assets under development are
not amortized but are tested for impairment at
least annually.
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The following tables present the changes in intangible assets including goodwill during the reported periods:
Development Advance Customer Other intangible EUR thousand Goodwillexpenditurepaymentsrelationships Brand Technologyassets Total2024 Cost at 1 January 73,402 3,771 491 7,391 4,961 746 3,614 94,377Business combinations 17,580 2,920 4,590 1,090 306 26,485Additions 311 1,541 63 1,916Disposals -54 -40 -95Reclassifications 166 -527 409 48Exchange differences 63 4 30 0 98Cost at 31 December 91,046 4,252 1,451 10,311 9,581 1,836 4,352 122,828Accumulated depreciation at 1 January -2,436 -4,818 -1,976 -358 -2,682 -12,271Amortization -489 -1,074 -618 -111 -371 -2,664Disposals 30 30Exchange differences 6 4 -9 -5 0 -5Accumulated depreciation at 31 December 0 -2,919 0 -5,889 -2,603 -475 -3,024 -14,909Net book amount at 1 January 73,402 1,335 491 2,573 2,985 388 932 82,106Net book amount at 31 December 91,046 1,334 1,451 4,422 6,978 1,361 1,328 107,919
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Development Advance Customer Other intangible EUR thousand Goodwillexpenditurepaymentsrelationships Brand Technologyassets Total2023 Cost at 1 January 73,438 3,260 577 7,391 4,981 746 3,213 93,606Business combinations 0Additions 250 368 25 644Disposals 0Reclassifications 271 -455 377 193Exchange differences -36 -9 0 0 -20 0 -1 -66Cost at 31 December 73,402 3,771 491 7,391 4,961 746 3,615 94,377Accumulated depreciation at 1 January -1,983 -3,614 -1,478 -291 -2,339 -9,705Amortization -462 -1,204 -490 -68 -343 -2,567Exchange differences 9 -8 1Accumulated depreciation at 31 December -2436 -4,818 -1,976 -385 -2,682 -12,271Net book amount at 1 January 73,438 1,276 577 3,777 3,503 455 875 83,901Net book amount at 31 December 73,402 1,332 491 2,573 2,985 388 933 82,106
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IMPAIRMENT TEST FOR GOODWILL
The allocation of goodwill to the Group’s cash-
generating units is presented below:
EUR thousand 31-Dec-2024 31-Dec-2023Northern Europe* 42,476 62,403Central Europe 10,899 10,999North America 37,671Total 91,046 73,402
* Former Finnish CGU. Comparison period also included the goodwill of
Harvia US.
In 2024 due to the ThermaSol acquisition, Harvia
updated its goodwill allocation to cash-generating
units by adding a separate unit for Northern America
and updating the units’ names to align with the new
organizational structure. Therefore, to carry out
impairment testing, the management monitors goodwill
at the level of Northern Europe, Central Europe and
North America CGU. As part of the reorganization
of the composition of CGUs, Harvia reallocated the
goodwill of Harvia US Inc from former Finnish CGU to
the new North American CGU alongside goodwill from
ThermaSol acquisition.
The recoverable amount of cash-generating units has
been determined based on value-in-use calculations
using the projected discounted cash flows. These
calculations use pre-tax cash flow projections
based on the budgets and forecasts approved by
the management covering a five-year period. The
goodwill from the acquisition of ThermaSol is included
in the North American CGU and was included in the
impairment test in 2024.
Key assumptions in the projections are the
development of net sales and key cost items, the
discount rate used in the calculation as well as the
cash flow growth rate after the five-year forecast
period. The projections have been prepared to reflect
the past performance and expectations for the future
considering the Group’s market position and the
31-Dec-2024 31-Dec-2023Long-term growth rate 1.0% 1.0%Average revenue growth for the forecast period Northern Europe 7,4% 6.0%Central Europe 7.3% 5.8%North America 21.3%Average EBITDA for the forecast period (% of revenue) Northern Europe 27.0% 25.5%Central Europe 24.9% 23.3%North America 23.4%Pre-tax discount rate Northern Europe 9.4% 11.4%Central Europe 10.8% 11.0%North America 11.5%
As a result of the impairment tests performed, no
impairment loss has been recognized for any period
presented.
general economic environment. Cash flows beyond the
five-year period are extrapolated using the estimated
growth rates. The discount rate used in the impairment
testing is weighted average pre-tax cost of capital
(WACC). The discount rate reflects the total cost of
equity and debt and the market risks related to the
Group.
The key assumptions used for value-in-use calculations and basic information are as follows:
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3.3 PROPERTY, PLANT AND EQUIPMENT
In 2024, Harvia acquired 8.7 hectares of land
surrounding its production facility in West Virginia
and began planning a new warehouse facility for the
area. Additionally, the company made several add-on
investments in its production facilities, including a
layout change and ramp-up of an upgraded, more
automated production line for woodburning heaters in
the Muurame factory.
Harvia’s most significant land areas are located in
Muurame and West Virginia. Harvia’s biggest factory
and office buildings are in Muurame, Finland, where also
the Harvia Group’s management companies operate.
The Group has large production and warehouse
facilities in West Virginia, USA. The production and
office facilities of EOS Saunatechnik GmbH are located
in Driedorf, Germany. The factory in Gheorgheni,
Romania, is owned by a Romanian real estate company,
K&R Imobiliare, which is wholly owned by Harvia
Group. Kirami’s production and office premises are
located in Sastamala, Finland, and Sauna-Eurox’s
premises in Luvia, Finland. The factory in Guangzhou,
China, ThermaSol’s factory in Texas, USA, the factory
in Belluno, Italy and the factory in Tartu, Estonia,
operate on leased premises. Harvia also has significant
production machinery located in the factories
mentioned above.
For depreciations see also note 2.4.
3.3.1 ACCOUNTING POLICY
Property, plant and equipment are presented at
acquisition cost less depreciation and potential
impairment losses. Subsequent costs are included
in the carrying amount when they can be measured
reliably and future economic benefits associated
with the these will flow to the entity.
Significant leasehold improvements are included
in the asset’s carrying amount or are separated as
a separate asset when it is probable that they will
be economically useful in the future and the costs
incurred can be distinguished from normal repair and
maintenance costs.
The Group assesses at every reporting date whether
there is any indication of impairment of an asset.
If there are any indications, the asset is tested for
impairment. An impairment test estimates the
recoverable amount of the asset.
The recoverable amount is the higher of the asset’s
fair value less costs to sell or cash flow based
value-in-use. If the recoverable amount can not
be determined at the level of an individual asset,
the need for impairment is reviewed at the level
of the lowest cash generating unit (CGU), which is
largely independent of other units and its cash flows
can be distinguished from the cash flows of other
similar entities.
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Changes in property, plant and equipment are presented in the following tables for the financial periods presented in the financial statements.
Buildings and Machinery and Other tangible Construction in EUR thousand Landstructuresequipmentassetsprogress Total2024 Cost at 1 Jan 2,083 29,889 24,934 1,871 2,006 60,783Business combinations 18 15 17 50Additions 967 510 1,712 337 707 4,233Disposals -119 -119Reclassifications 471 1,804 1 -2,331 -56Exchange differences 17 183 120 6 326Cost at 31 Dec 3,086 31,067 28,468 2,215 382 65,218Accumulated depreciation at 1 Jan -15,139 -17,348 -1,393 -33,879Depreciation -1,017 -1,923 -149 -3,089Disposals 79 79Reclassifications 0Exchange differences -42 -121 8 -155Accumulated depreciation at 31 Dec -16,198 -19,314 -1,533 0 -37,045Net book amount at 1 Jan 2,083 14,750 7,586 478 2,006 26,904Net book amount at 31 Dec 3,086 14,869 9,154 682 382 28,173
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Buildings and Machinery and Other tangible Construction in EUR thousand Landstructuresequipmentassetsprogress Total2023 Cost at 1 Jan 2,060 29,465 23,590 1,851 1,028 57,994Additions 35 482 656 18 1,945 3,136Disposals -134 -134Reclassifications/Adjustments 62 904 1 -967 0Exchange differences -11 -119 -83 1 -212Cost at 31 Dec 2,083 29,889 24,934 1,871 2,006 60,783Accumulated depreciation at 1 Jan -14,107 -15,509 -1,282 -30,897Depreciation -1,040 -1,852 -111 -3,003Impairment 0Disposals 0Reclassifications 0Exchange differences 8 13 21Accumulated depreciation at 31 Dec -15,139 -17,348 -1,393 0 -33,879Net book amount at 1 Jan 2,060 15,358 8,081 569 1,028 27,097Net book amount at 31 Dec 2,083 14,750 7,586 478 2,006 26,904
3.4 RIGHT-OF-USE ASSETS
IFRS 16 Leases standard specifies the definition
of leases, recognition and valuation of the lease
agreements and disclosures of the leases. According
to the standard, a lease is recognized as a right-of-
use-asset (the right to use the leased asset) and as a
lease liability to pay rentals, recorded under interest-
bearing liabilities.
3.4.1 ACCOUNTING POLICY
According to IFRS 16 Leases standard a lease is
recognized as a right-of-use-asset (the right to
use the leased asset) and as a lease liability to pay
rentals, recorded under interest-bearing liabilities.
Lease liability is calculated discounting the future
lease payments with the incremental borrowing rate.
The Group is implementing the exemptions provided
by the standard and is not recognizing low-value
or short-term leases as right-to-use-assets or lease
liability. The Group applies same discount rate to a
group of similar lease contracts.
Lease period is the non-cancellable period of the
lease plus periods covered by an option to extend
or an option to terminate if the lessee is reasonably
certain to exercise the extension option or not
exercise the termination option. Right-of-use assets
are depreciated over their uselful lives.
Lease liability and interest payment is presented in
cash flow from financing activities.
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The acquisition of ThermaSol significantly increased Harvia’s right-of-use assets and
lease liabilities in 2024 as the acquired company operates on leased premises. Harvia’s
other significant leasing contracts include factories in China and Italy.
Bookings of leases to the balance sheet and profit and loss statement were the
following:
Buildings and Machinery and EUR thousandstructuresequipmentRight-of-use assets Book amount at 1 Jan 2023 1,841 304Additions 671 285Exchange differences 72 Depreciations -463 -220Book value at 31 Dec 2023 2,120 369Book amount at 1 Jan 2024 2,120 369Additions 158 104Acquisitions 6,182 Disposals Exchange differences 65 Depreciations -706 -199Book value at 31 Dec 2024 7,818 274
EUR thousand 2024 2023Lease liabilities Non-current 7,307 1,981Current 951 760Book value at 31 Dec 8,258 2,741
AMOUNTS RECOGNIZED IN PROFIT AND LOSS
EUR thousand 2024 2023Depreciation Buildings and structures -706 -463Machinery and equipment -199 -220 -905 -683Interest expense (included in finance cost) -167 -101Expense relating to short-term and low-value leases (other operating expenses) -642 -495Total amounts recognized in profit and loss -1,714 -1,280
Amounts recorded in balance sheet are considered in the IAS 36 impairment testing.
Cash flows resulting from lease contracts have been disclosed in the consolidated
statement of cash flows and maturities of the lease contracts in note 5.3.
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3.5 PROVISIONS
The Group provides warranties for its products and
recognizes provision for this obligation. The warranty
provision includes all expenses required to settle the
present obligation. The amount of accrued estimated
warranty costs is primarily based on historical
experience and current information on repair costs and
processing costs of the claims.
3.5.2 ACCOUNTING ESTIMATES
The amount of warranty provision involves
uncertainty as estimated warranty claims may
not be realized as predicted. Typically the claims
are realized frontloaded during the warranty
period. Estimates and assumptions are reviewed
quarterly. The differences between actual and
estimated warranty claims may affect the amount
of the provisions to be recognized in future
financial periods.
3.5.1 ACCOUNTING POLICY
Provision is made for estimated warranty claims
in respect of products sold which are still under
warranty at the end of the reporting period. The
management estimates the provision based on
historical warranty claim information and any
recent trends that may suggest future claims
could differ from historical amounts.
Changes in warranty provisions are as follows:
EUR thousand 31-Dec-2024 31-Dec-2023At 1 January 623 623Additions 1,274 519Reversed provisions -623 -623Unused provisions reversedExchange rate differencesAt 31 December 1,274 519of whichcurrent 295 242non-current 979 277Total 1,274 519
Harvia’s provision increased to EUR 1,274 thousand
relating to revenue in 2024 (2023: EUR 519 thousand).
The acquisition of ThermaSol increased the warranty
provision. The provision is divided to current and
non-current liability. Most of the Harvia’s products
sold have two years’ warranty for private use and
one years’ warranty for professional use. Warranty
provision is calculated for external warranty costs, for
employees processing complaints and for warranty
parts. For exported products, no warranty provision is
recognized as under these contracts, the counterparty
is responsible for warranty work.
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Section 4: Net Working Capital
This section describes components of net working capital.
Net working capital management is one of the key elements of Harvia’s cash flow management. At times,
Harvia increases its level of net working capital due to risk management in procurement or preparation for
high-demand seasons.
EUR thousand 31-Dec-2024 31-Dec-2023Net working capital Inventories 49,151 35,480Trade receivables 19,173 16,336Other receivables 3,105 2,361Trade payables -13,070 -8,690Other payables -13,404 -9,355Total 44,955 36,132Change in net working capital in the statement of financial position 8,823 -9,187Items not taken into account in change in net working capital in the statement of cash flows and the effect of which is included elsewhere in the statement of cash flows* -5,907 1,386Change in net working capital in the statement of cash flows** 2,916 -7,801
* The most significant items are related to finance costs, unrealized exchange rate gains and losses, acquisitions and investments.
** An increase in net working capital decreases cash flows, and a decrease in net working capital increases cash flows.
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4.1 INVENTORIES
The inventory of the Group consists of raw materials
such as steel, stone, and wood, work in progress, as
well as finished goods on sale (sauna heaters, barrel
saunas, Scandinavian hot tubs, and other Harvia
Group’s products).
4.1.1 ACCOUNTING POLICY
Materials and supplies, work in progress and finished
goods are measured at the lower of cost and net
realizable value. Cost of work in progress and
finished goods comprises direct materials, direct
labor costs and an appropriate proportion of variable
and fixed overhead expenditure, the latter being
allocated on the basis of normal operating capacity.
The acquisition cost is assigned to individual items
of inventory on the basis of weighted average cost
formula. Rebates and discounts are deducted from
the cost of purchased inventory. Net realizable value
is the estimated selling price in the ordinary course
of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
The inventory is divided as follows:
EUR thousand 31-Dec-2024 31-Dec-2023Materials and supplies 22,684 16,921Work in progress 3,322 3,413Finished goods 23,145 15,145Total 49,151 35,480
Harvia recognized items related to changes
in the value and quantity of inventories in its
profit and loss for a total of EUR 664 thousand
(in 2023: EUR 10,919 thousand). Harvia’s material
and service costs totalled EUR 62,602 thousand
(2023: EUR 56,101 thousand). The inventory value
was reduced by obsolescence reserve booking
of EUR 1,279 thousand (31 December 2023:
EUR 915 thousand).
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4.2 TRADE AND OTHER RECEIVABLES
Trade and other receivables consist of trade
receivables, other receivables (mainly VAT receivables)
and prepayments and accrued income. Income tax
receivables are presented on a separate row in the
consolidated statement of financial position.
Payment terms of trade receivables vary according to
customer type and creditworthiness. Advance payment
is required from certain customers. Information on the
impairment of trade and other receivables and the
Group’s exposure to credit risk is presented in note 5.3.
4.2.1 ACCOUNTING POLICY
Trade receivables are amounts due from customers
for goods sold or services performed in the
ordinary course of business. They are classified as
at amortized cost if collection of the amounts is
expected in one year or less they are classified as
current assets. Otherwise they are presented as
non-current assets. Trade receivables are generally
due for settlement within 30-120 days and therefore
are all classified as current. Impairment and other
accounting policies for trade and other receivables
are outlined in note 5.3.
Other receivables include mainly prepaid expenses
and accrued income from the usual operating
activities of the Group.
The receivables are included in current assets,
except for maturities longer than 12 months after the
end of the reporting period.
The following tables present the different components
of trade and other receivables:
EUR thousand 31-Dec-2024 31-Dec-2023Trade receivables 19,173 16,336Prepayments and accrued income 1,845 1,249Other receivables 1,260 1,112Total 22,27818,697
Material items included in prepayments and
accrued income:
EUR thousand 31-Dec-2024 31-Dec-2023Social costs 13 9Insurances 93 147Advance payments 898 429Other 842 663Total 1,845 1,249
Other accrued income included mainly items related
to materials costs, marketing and IT. Due to the
short-term nature of the current receivables, their
carrying amount is assumed to be the same as their
fair value.
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4.3 TRADE AND OTHER PAYABLES
Trade and other payables include trade payables, other
liabilities, advance payments and accrued expenses
related the usual operating activities of the Group.
The following tables present the different components
of trade and other payables:
EUR thousand 31-Dec-2024 31-Dec-2023Trade payables 13,070 8,690Advance payments 1,745 1,103Accrued expenses 11,246 7,817Other liabilities 413 435Total 26,474 18,045
Trade payables are unsecured and are usually paid
within 30 to 60 days of recognition.
Material items included in accrued expenses:
EUR thousand 31-Dec-2024 31-Dec-2023Accrued personnel costs 5,748 4,631Accrued annual discounts 1,145 1,474Accrued interests 980 83Other 3,373 1,629Total 11,246 7,817
Other accrued expenses included items related to
material costs, marketing and sales commissions. The
carrying amounts of trade and other payables are
assumed to be the same as their fair values, due to
their short-term nature.
4.3.1 ACCOUNTING POLICY
Trade payables are payment obligations arising
from goods or services acquired from suppliers
or service providers in the ordinary course of
business. Trade payables are classified as current
liabilities if payment is due within one year or less.
Trade and other payables are classified as other
financial liabilities at amortized cost.
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Section 5: Net Debt And Contingencies
This section describes how the Group has financed its operations. This section also describes exchange rate, interest rate,
liquidity and credit risks related to financial assets and liabilities. The section also provides information on how the Group
addresses the above mentioned risks.
The following tables present the classification of the
financial liabilities as well as their carrying values:
5.1.1 ACCOUNTING POLICY
Borrowings are recognized initially at fair value,
net of transaction costs incurred. Borrowings
are subsequently carried at amortized cost; any
difference between the proceeds (net of transaction
costs) and the redemption value is recognised in the
income statement over the period of the borrowings
using the effective interest rate method.
Fees paid on the revolving credit facility
arrangements are capitalized as a prepayment for
liquidity services and amortized as expense over the
period of the facility to which it relates, if there is no
certainty that some or all of the facility will be drawn.
This reflects the finance cost of the undrawn facility.
To the extent that it is probable that some or all of
the facility will be drawn the fees are recognized
as transaction costs when the loan is drawn and
recognized in profit and loss using the effective
interest rate method.
Financial instruments measured at fair value
under IFRS 13 are divided into three different
levels according to their valuation principles:
level 1 instruments are valued at the quoted
market price, level 2 instruments are valued using
information other than quoted market prices and
level 3 instruments are valued based solely on
information other than quoted market prices.
5.1 BORROWINGS AND OTHER FINANCIAL
LIABILITIES
In 2024, Harvia withdrew a new loan in the amount of
EUR 20 million to finance the acquisition of ThermaSol.
The new term loan matures in July 2027. In 2023, Harvia
renegotiated the terms of EUR 75.5 million term loans
and EUR 8 million revolving credit limit. At the same
time, the revolving credit limit was increased to EUR 10
million. The Group has entered into interest rate swap
agreements to hedge against interest rate risk arising
from variable rate of bank loans.
Other financial liabilities at EUR thousandamortized cost31-Dec-2024 Liabilities per balance sheet Loans from credit institutions 95,405Lease liabilities 8,258Other non-current liabilities 2,965Trade and other payables 13,483Total 120,111
Financial liabilities at EUR thousandamortized cost31-Dec-2023 Liabilities per balance sheet Loans from credit institutions 75,409Lease liabilities 2,741Other non-current liabilities 202Trade and other payables 9,125Total 87,478
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LOANS FROM CREDIT INSTITUTIONS AND SHAREHOLDER
LOANS
Loans from credit institutions
In 2024, Harvia withdrew a new loan in the amount
of EUR 20,000 thousand to finance the acquisition of
ThermaSol. The new term loan will mature in July 2027.
Harvia had existing term loans totaling EUR 75,500
thousand and a EUR 10,000 thousand revolving credit
limit. Harvia has not utilized the revolving credit limit.
These term loans mature in two installments. The term
loan of EUR 36,500 thousand and the revolving credit
limit of EUR 5,000 thousand mature in December 2026
and the term loan of EUR 39,000 thousand and the
revolving credit limit EUR of 5,000 thousand mature in
March 2027. The nominal interest of the loans is tied to
Euribor, and its margin is tied to the Group’s net debt /
adjusted EBITDA ratio.
Compliance with loan covenants
The bank loans include covenants according to the
financing agreement, such as net debt to adjusted
EBITDA ratio and net interest income. Covenants are
monitored quarterly. The Group has complied with all
covenants related to bank loans in 2024 and 2023.
Fair values
The fair values of non-current borrowings are based on
discounted cash flows using a current borrowing rate.
They are classified as level 2 in the fair value hierarchy
due to the use of unobservable inputs, including own
credit risk.
The Group’s management has determined that there
is no essential difference between carrying value and
fair value. Margins of Harvia's loans are considered to
reflect different conditions and the subordination of the
loans with reasonable accuracy.
DERIVATIVE FINANCIAL INSTRUMENTS
5.1.2 ACCOUNTING POLICY
Derivative financial instruments are initially
recognized at fair value on the date a derivative
contract is entered into and subsequently
measured per contract at their fair value through
profit or loss if they do not qualify for hedge
accounting. If a derivative is designated as a
hedging instrument, its fair value is recognised in
the balance sheet in the fair value reserve. The fair
value of an interest rate swap varies according to
the expectations of the interest rate markets and
the change in value is recognised, on a contract-
by-contract basis, either in the income statement
under changes in the fair value of financial items
or, by using hedge accounting, in the fair value
reserve in equity.
fluctuate due to changes in market interest rates. The
objective is to minimize the effect of interest rate
fluctuations on the Group’s annual result and to manage
exposure to interest rate risk.
Nature of the risk being hedged is the interest rate risk
relating to cash flows from the increase and variability
in 1-month Euribor. This hedge is classified as a cash
flow hedge and it is categorized under Level 2 of the
fair value hierarchy.
There is an economic relationship between the hedged
item and the hedging instrument: The loan interest
payments are linked to 1-month Euribor and derivative
payments received are linked to 1-month Euribor. The
interest rate setting for both the hedging instrument
and the hedged item are defined on the same date.
The effect of credit risk does not dominate the value
changes that result from the economic relationship.
A condition for applying hedge accounting is that
the effect of credit risk does not dominate the value
changes that result from the economic relationship that
is the subject of the hedge. Standard & Poors' long term
rating for the derivative counterparty Danske Bank is
AA-. The credit risk is considered low and does not
dominate the hedge relationship.
The hedge ratio of the hedging relationship is the same
as that resulting from the quantity of the hedged item
that the entity hedges and the quantity of the hedging
instrument that the entity uses to hedge that quantity
of hedged item. The hedge ratio is 1:1. Prospectively the
terms and conditions of the hedged item and the hedge
instruments meet the 1:1 ratio. Harvia will evaluate
qualitatively each quarter that the conditions have not
changed.
The Group uses derivative financial instruments such as
interest rate swaps to hedge its risks associated with
interest rate fluctuations. The fair value of the interest
rate swap fluctuates according to interest rate market
expectations, and the change in value is recorded per
contract in either net financial items as changes in fair
value or by hedging it in the fair value reserve in equity.
At the end of 2024, Harvia negotiated an additional
interest rate swap agreement for the EUR 20 million
loan withdrawn to finance the acquisition of ThermaSol
in July 2024. Harvia is exposed to interest rate risk in
the floating interest rate payments on loans drawn
under the Loan Facility agreement dated 22 July 2024.
The interest rate risk is that the future cash flows will
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The Group had interest rate swap agreements with fair
value of EUR 982 thousand and -4 thousand at the end
of 2024 (2023: EUR 1,869 thousand). Changes in the
fair value of the swap have no cash flow impact. The
nominal values of the interest rate swap agreements
were EUR 36,500 thousand and EUR 20,00 thousand
as at 31 December 2024 (2023: EUR 36,500 thousand).
The interest rate swap agreements mature on 15
December 2026 and 22 July 2027.
The fair value of interest rate swap is calculated as the
present value of the estimated future cash flows based
on observable yield curves. The fair value is on level 2 in
the fair value hierarchy.
OTHER NON-CURRENT LIABILITIES
5.1.3 ACCOUNTING POLICY
Harvia’s other long-term liabilities consist of
redemption and additional purchase price
liabilities related to acquisitions. Redemption
and additional purchase liabilities are initially
recognised at fair value at the date of acquisition
of the subsidiaries. Subsequently, they are
measured at fair value through profit or
loss or equity.
The Group had long-term additional purchase price
liabilities related to acquisitions of EUR 226 thousand
(2023: 202 thousand) related to the Sauna-Eurox
acquisition. The contractual amount of the liabilities
is EUR 250 thousand (2023: 250). Other long-term
liabilities also include EUR 2,739 thousand withheld
from the purchase price related to the ThermaSol
acquisition that will be paid during the next three years.
In 2023, Harvia and the sellers of Kirami agreed that
Harvia will pay the additional purchase price of EUR
2,488 thousand earlier than previously announced, on
21 December 2023. The paid amount is approximately
EUR 1.2 million smaller than the provision Harvia made
in connection with the acquisition. This difference
improved Harvia’s 2023 result. Harvia’s additional
purchase price liabilities in 2023 were linked to the
development of the key performance indicators of the
acquired company (typically to EBITDA).
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5.2 CASH AND CASH EQUIVALENTS
Cash and cash equivalents amounted to EUR
46,447 thousand as at 31 December 2024
(31 December 2023: EUR 40,581 thousand).
5.3.1 ACCOUNTING POLICY
Classification and measurement of financial assets
The Group’s financial assets consist of trade
receivables, certain other receivables and accrued
income as well as cash and cash equivalents. A
financial asset is measured at fair value at initial
recognition, to which are added transaction costs
directly attributable to the acquisition, excluding
trade receivables that are measured at transaction
price when they do not contain a significant financing
component.
Harvia’s management has determined which business
models are applied to the Group’s financial assets at
the date of application of IFRS 9 as of 1 January 2018,
and has classified financial assets into categories
according to IFRS 9. All financial assets of the Group,
excluding possible derivative assets, are classified as
at amortized cost.
Impairment of financial assets
Financial assets consist mainly of trade receivables,
and for the recognition of expected credit losses the
Group applies the simplified approach, which permits
the use of the lifetime expected loss provision for all
trade receivables. To measure the expected credit
losses, trade receivables have been grouped based
on shared credit risk characteristics and the days past
due. Expected credit losses also incorporate forward
looking information.
Classification and measurement of financial liabilities
Loans from credit institutions are recognized initially
at fair value, net of transaction costs incurred.
Borrowings are subsequently carried at amortized
cost; any difference between the proceeds (net
of transaction costs) and the redemption value is
recognized in the income statement over the period
of the borrowings using the effective interest rate
method.
Fees paid on the revolving credit facility
arrangements are capitalized as a prepayment for
liquidity services and amortized as expense over
the period of the facility to which it relates, if there
is no certainty that some or all of the facility will be
drawn.This reflects the finance cost of the undrawn
facility. To the extent that it is probable that some
or all of the facility will be drawn, the fees are partly
recognized as transaction costs, when the loan is
drawn and recognized in the income statement over
the period of the borrowings using the effective
interest rate method.
Derivative financial instruments
Derivative financial instruments are initially
recognized at fair value on the date a derivative
contract is entered into and subsequently measured
per contract at their fair value through profit or
loss if they do not qualify for hedge accounting. If a
derivative is designated as a hedging instrument, its
fair value is recognized in the balance sheet in the
fair value reserve.
In the consolidated statement of cash flow, cash and
cash equivalents include cash in hand and deposits
held at call from banks. The short-term deposits are
considered readily convertible to cash as those have
original maturities of three months or less. Cash and
cash equivalents on the statement of financial
position equals the cash and cash equivalents of
the consolidated statement of cash flows. Cash and
cash equivalents are financial asset and valued at
amortized cost.
5.3 FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT
This note explains Harvia Group’s exposure to financial
risks and how these risks could affect Harvia Group’s
future financial performance. Profit and loss information
for the period has been included where relevant to
add further context.
This note also describes how the Group monitors
its capital structure and what are the targets for
the structure.
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EUR thousand 2024 2023
Amounts recognized in profit or loss
Net foreign exchange gains/losses included in operating income/expenses 56 -9
Net foreign exchange gains/losses included in finance income/costs 451 -277
Total net foreign exchange gains/losses recognized in profit before income tax for the
period 507 -286
Gains/losses recognized in other comprehensive income
Translation differences of foreign operations 2,778 -1,785
The Group’s overall risk management program
focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on
the Group’s financial performance. Derivative financial
instruments are used to hedge certain risk exposures.
The Group’s risk management is carried out by
the finance department under guidelines provided
by the Board of Directors. Finance department
identifies, evaluates and hedges financial risks in close
co-operation with the Group’s business operations.
FOREIGN EXCHANGE RISK
Harvia operates in several countries. In 2024, Harvia
was mainly exposed to transaction risk and translation
risk associated with the US dollar arising when the
parent company’s investments to subsidiaries outside
euro area are converted into euros. Transaction risk
associated with subsidiaries outside the euro area
consists primarily of trade receivables and trade
payables from these subsidiaries arising from the
operational business of the Group companies.
So far transaction risks have not been significant for
the Group and Harvia has not hedged against these
risks by currency derivatives. In other respects, the
Group’s income and expenses arise almost exclusively
in euros and dollars. The Group’s net investment into
units outside the euro area consist of the investments
in subsidiaries in China, Hong Kong, Sweden, Japan,
Russia, Romania and the United States. Foreign
exchange risk related to net investments is not
hedged.
During the financial period, the following foreign
exchange related amounts were recognized in profit
or loss and other comprehensive income:
INTEREST RATE RISK
The Group faces interest rate risk primarily from its
non-current borrowings with variable rates, which
expose it to cash flow interest rate risk. To manage
this risk, Harvia converts a portion of its floating-rate
loans into fixed-rate loans using interest-rate swaps.
As a result, the overall interest rates are lower than
what the Group would have paid if it had borrowed at
fixed rates directly.
Harvia has interest rate swaps with nominal values of
EUR 36.5 million and 20.0 million.
The following table shows the sensitivity analysis of Harvia’s interest-bearing liabilities to a 1% increase in
interest rates:
EUR thousand 2024 2023Interest bearing liabilities 95,405 75,506Leasing liabilities 8,258 2,877Interest rate swap 56,500 36,500Share of liabilities covered with interest rate swaps 55% 47%Impact on interest costs if interest rates were to rise by 1% 1,037 784Interest rate swap -565 -365Total impact on interest costs if interest rates were to rise by 1% 472 419
* The amount of debt to be tested is the nominal value of Harvia’s cash flows related to loan and lease agreements, which is also presented in the reconciliation of
net debt and cash flow.
The Group’s target is keep closer to 60% of its
borrowings at fixed rates and, if necessary, use interest
rate swaps to achieve this. The Group’s variable rate
loans in 2024 and 2023 were mainly denominated
in euro and the interest rate swaps covered 55% of
the principal outstanding at 31 December 2024 and
47% at 31 December 2023. Based on the sensitivity
analysis, if the interest rate on uncovered variable rate
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as most transactions are made with credit cards. Harvia
has no significant concentrations of credit risks due to
the large and geographically dispersed customer base.
borrowings were to increase by one percentage point
with all other variables held constant, the Group’s
interest expense would increase by EUR 488 thousand
(in 2023: EUR 419 thousand).
CREDIT RISK
Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in a
financial loss to the company. Credit risk arises from
cash and cash equivalents, as well as from credit
exposures from customers' outstanding receivables.
Insurance for certain customers and for some
customers advance payments are in use. The credit
risk on cash and cash equivalents is limited because
the counterparties are banks with high credit ratings
assigned by international credit rating agencies. To
spread the credit risk, Harvia deposits its cash reserves
with different banks.
The Group considers that there is evidence of
impairment if any of the following indicators are present:
- significant financial difficulties of the debtor
- probability that the debtor will enter bankruptcy
or financial reorganization, and
- default or delinquency in payments
In certain circumstances, Harvia has supported its
distribution and dealership relationships by accepting
longer than ordinary payment periods and by agreeing
on a new payment plan in respect of receivables due.
Trade receivables increased due to strong demand in
North America supported by the growing awareness
of sauna and its health benefits as well as strong
consumer confidence and economic conditions.
The acquisition of ThermaSol also increased the
amount of accounts receivable in 2024. Typically,
North American customers have short payment times,
During 2024, EUR 96 thousand (2023: EUR 26 thousand) was recognized in profit or loss in relation to credit losses.
The loss allowance on 31 December 2024, EUR 788 thousand (2023: EUR 1,273 thousand), is specified as follows:
31-Dec-24EUR thousand Gross book value Allowance for bad debtNot due 14,895 8Overdue by Less than 30 days 2,578 1030-60 days 1,006 1361-90 days 143 491-180 days 296 30181-360 days 401 100Over 360 days 642 623Total 19,961 788
31-Dec-23EUR thousand Gross book value Allowance for bad debtNot due 12,755 6Overdue by Less than 30 days 2,207 930-60 days 844 1161-90 days 167 491-180 days 70 7181-360 days 338 84Over 360 days 1,228 1,151Total 17,609 1,273
The other classes within other receivables do not
contain essentially impaired or overdue assets. Based
on the credit history of these other classes, it is
expected that these amounts will be received when
due. The Group does not hold any collateral in relation
to these receivables.
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LIQUIDITY RISK
Cash flow forecasting is performed on Group basis.
Group finance department monitors Harvia Group’s
liquidity requirements to ensure it has sufficient
cash to meet operational needs while maintaining
sufficient headroom on its undrawn committed loan
facility so that the Group does not breach loan limits
or covenants on its loan facility. At the end of the
reporting period, Harvia was in clear compliance with
the loan covenants.
The Group has undrawn interest-bearing facilities
(revolving credit facility) of EUR 10,000 thousand as
at 31 December 2024 (EUR 10,000 thousand as at
31 December 2023). The undrawn interest-bearing
facility is available constantly. Operating cash flows
and liquid funds are the main source of financing for
future payments together with possible new debt or
equity financing.
The table below shows future repayments, interest
expenses and capitalized interest expenses of
the Group's financial liabilities divided into maturity
groupings based on the remaining contractual maturity
at the balance sheet date. Harvia has interest rate
swaps with nominal values of EUR 36,500 thousand
and EUR 20,000 thousand that mature on 15 December
2026 and 22 July 2027. Fair value of the interest rate
swap fluctuates according to interest rate market
expectations, and the change in value is recorded in the
net financial items as changes in fair value for the old
agreement, and for the new agreement in the fair value
reserve in equity.
Between 1 and Between 2 and Total contractual EUR thousand Less than 6 months 6-12 months2 years5 years Over 5 yearscash flows Carrying amount31-Dec-2024 Non-derivatives Loans from credit institutions 5 36,500 59,000 95,505 95,405Lease liabilities 583 535 993 2,197 5,474 9,784 8,258Pension liabilities 80 80 155 438 1,099 1,852 1,914Redemption and purchase price liability 250 250 226Other long-term liabilities 913 1826 2,739 2,739Trade payables 13,070 13,070 13,070Non-derivatives 13,988 1,528 39,474 61,635 6,573 123,200 121,612Interest rate swaps Interest rate swaps -612 -619 -1,211 1,463 -979 -979Total derivatives -612 -619 -1,211 1,463 -979 -979
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Between 1 and Between 2 and Total contractual EUR thousand Less than 6 months 6-12 months2 years5 years Over 5 yearscash flows Carrying amount31-Dec-2023 Non-derivatives Loans from credit institutions 6 75,500 75,506 75,409Lease liabilities 355 293 360 1,545 324 2,877 2,741Pension liabilities 88 88 172 490 1,185 2,023 2,071Redemption and purchase price liability 250 250 202Trade payables 8,690 8,690 8,690Non-derivatives 9,139 381 783 77,535 1,509 89,346 89,113Interest rate swaps Interest rate swaps -568 -574 -1,123 395 -1,869 -1,869Total derivatives -568 -574 -1,123 395 -1,869 -1,869
CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to
safeguard the Group’s ability to continue as a going
concern to provide returns and increase the value of
invested capital for shareholders. The Group monitors
the ratio of net debt to adjusted EBITDA and to net
working capital.
Net debt is calculated as loans from credit institutions
(included in current and non-current interest-bearing
liabilities) less cash and cash equivalents. The target
of the net debt and the net debt to EBITDA ratio are
linked to a covenant of borrowing facilities. The ratio of
net debt to EBITDA has an impact on the loan margins
of the Harvia’s loan agreements.
The table below shows the Group's net debt position.
EUR thousand 31-Dec-2024 31-Dec-2023Loans from credit institutions 95,405 75,409Lease liabilities 8,258 2,741Less cash and cash equivalents -46,447 -40,581Net debt 57,216 37,569
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Reconciliation of net debt:
Cash and cash Loans from credit institutions Loans from credit institutions EUR thousandequivalentsdue within 1 yeardue after 1 year Lease liabilities Total net debt1-Jan-2023 25,310 -2,028 -75,389 -2,421 -54,529Cash flows 18,519 2,022 92 765 21,398Acquisitions -2,801 -66 -307 -3,173Exchange differences -447 -447Other non-cash movements -41 -777 -818 -81831-Dec-2023 40,581 -6 -75,404 -2,741 -37,569Cash flows 30,173 1 -19,970 951 11,154Acquisitions -24,908 -6,182 -31,320Dissolution of an associated company 61 61Exchange differences 540 540Other non-cash movements -26 -287 -8431-Dec-2024 46,447 -5 -95,400 -8,258 -57,216
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5.4 FINANCE INCOME AND COSTS
This note presents the finance income and finance
costs of the Group. The Group has interest rate swap
agreements to hedge against interest rate changes
arising from the variable rate external bank loans.
For information about derivatives and financial
liabilities, see note 5.1.
For information about cash and cash equivalents,
see note 5.2.
The Group's interest and other finance income related
mainly to foreign exchange gains, interest income from
trade receivables and gains on valuation of derivative
contracts. They amounted to EUR 1,959 thousand
in 2024 (2023: EUR 2,033 thousand). Finance costs
are related mainly to loans from financial institutions,
exchange rate losses, and losses on the valuation of
derivative contracts. See the following table:
EUR thousand 2024 2023Finance income Interest income 1,126 531Fair value gain 1,238Exchange rate gains 786 259Other finance income 47 5Total 1,959 2,033Finance costs Interest costs -3,405 -2,743Other finance costs for financial liabilities not at fair value through profit or loss -861 -649Exchange rate losses -335 -536Fair value losses on interest rate swaps -887 -1,374Total -5,564 -5,302Finance costs, net -3,529 -3,270
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5.5 COMMITMENTS AND CONTINGENT LIABILITIES
5.6 DEFINED BENEFIT OBLIGATIONS
Defined benefit obligations are recognized according
to IAS 19. Harvia has an unfunded defined benefit
pension plan in Germany. The German pension plan was
acquired on 1 May 2020. Harvia’s other pension plans,
such as statutory Finnish TyEL plan are classified as
defined contribution plans.
The German pension plan is a salary-based plan which
provides old-age, disability and survivor benefits for
plan members. The pension plan adheres to local
legislation and practices. The pension plan includes
pensioners, active and deferred vested plan members.
Defined benefit plans expose Harvia to risks, the most
relevant being the interest risk relating to the discount
rate. If the discount rate decreases, the defined
benefit obligation will increase. Changes in an inflation
assumption or mortality models may also increase the
defined benefit obligation.
This note provides information about items not
recognized in the financial statements as they do not
yet satisfy the recognition criteria in the reporting
period. These include guarantees, pledges, and
contingent liabilities.
EUR thousand 31-Dec-2024 31-Dec-2023Other guarantees: Pledged accounts 19 37Customs guarantee 50 50Total 69 87
OTHER COMMITMENTS
Harvia becomes involved from time to time in various
claims and lawsuits arising in the ordinary course of
its business, such as disputes with customers and
proceedings initiated by public authorities. During
the reporting periods, Harvia has not been a party to
legal, arbitration or administrative proceedings which
could have a significant impact on the Group’s financial
position or profitability.
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The defined benefit expense and other comprehensive income items are as follows:
EUR thousand 2024 2023Net interest 73 70Actuarial gains (-) / losses (+) caused by changes in financial assumptions 66 -36Experience adjustments -149 87Total -11 121
The changes of the defined benefit obligation and net debt recognized in the balance sheet are as follows:
EUR thousand 2024 2023Defined benefit obligation 1 January 2,023 2,071Service cost Net interest 73 70Actuarial gains (-) / losses (+) -84 51Benefits paid -160 -169Total 1,852 2,023
5.6.1 ACCOUNTING POLICY
A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions to an insurance company or a
separate entity fund. The entity will have no legal or
constructive obligation to pay further contributions
if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service
in the current and prior periods. Contributions
to the defined contribution plans are recorded
directly to the profit or loss in the year to which
these contributions relate. Defined benefit plans are
post-employment benefit plans other than defined
contribution plans.
Under defined benefit plans both actuarial and
investment risks are the responsibility of the Group
and the defined benefit obligation is recognized. The
defined benefit obligation represents the present
value of future cash flows from payable benefits,
which are calculated by using the projected unit
credit method. The discount rate used in calculating
the present value of the defined benefit obligation is
based on the market yields of high-quality corporate
bonds with appropriate durations. Pension expenses
are recognized in the profit or loss by allocating
the current service cost over the service lives of
employees based on actuarial calculations. The net
interest is included as part of the personnel expenses.
The liability (or asset) recognized in the consolidated
statement of financial position is the defined
benefit obligation at the closing date less the fair
value of plan assets. Actuarial gains and losses
arising from experience adjustments and changes
in actuarial assumptions are recorded to equity
in other comprehensive income in the period in
which they arise.
The valuation of defined benefit obligation is
based on management’s estimates about actuarial
assumptions such as discount rate, inflation and
future mortality rates.
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Actuarial assumptions used in calculating the defined benefit obligation are as follows:
2024 2023Discount rate 3.33% 3.76%Benefit increase 2.00% 2.00%Salary increase 1.00% 1.00%Turnover rate 0.00% 0.00%Richttafeln Mortality model 2018 G
The sensitivity analysis of the defined benefit obligation is as follows. The sensitivity analysis is based on a change in
one assumption while holding all other assumptions constant:
EUR thousand 2024 2023Impact of the change in the discount rate (+0.50%) on the defined benefit obligation -76 -82Impact of the change in the discount rate (-0.50%) on the defined benefit obligation 82 88
The duration of the defined benefit pension obligation
is approx. 9 years in 2024. The defined benefit plan has
no plan assets.
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Section 6: Other Notes
This section of the notes includes other information that must be disclosed
to comply with accounting standards and other pronouncements.
6.1 GROUP STRUCTURE AND CONSOLIDATION
This note provides information on the Group structure
and accounting principles for consolidation.
6.1.1 ACCOUNTING POLICY
Subsidiaries are all entities over which the Group
has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns
from its involvement with the entity and has the
ability to affect those returns through its power to
direct the activities of the entity. Subsidiaries are
fully consolidated from the date on which control is
transferred to the Group.
Intercompany transactions, balances and unrealized
gains on transactions between Group companies are
eliminated. When needed, the financial statements
of subsidiaries have been adjusted to conform to the
Group’s accounting policies.
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Acquired/ established Parent company Country of incorporation Nature of business Parent ownership (%) Group ownership (%)(month/year)Harvia Plc Finland Parent company Subsidiaries Harvia Group Oy Finland Holding 100 100 4/2014Harvia Finland Oy Finland Manufacturing 100 4/2014Harvia (Hong Kong) Sauna Co. Ltd Hong Kong Sales 100 4/2014Guangzhou City Harvia Sauna Co. Ltd China Manufacturing 100 4/2014Harvia Estonia Oü Estonia Manufacturing 100 12/2014LLC Harvia RUS Russia Not operational 100 6/2015Harvia Austria GmbH (previously Sentiotec GmbH) Austria Sales 100 11/2016Domo Wellness Romania Srl Romania Manufacturing 100 11/2016K&R Imobiliare Romania Real estate 100 11/2016Harvia US Holdings Inc. United States Holding 100 11/2018Harvia US Inc. United States Manufacturing 100 11/2018Harvia Holding GmbH Germany Holding 100 02/2020EOS Saunatechnik GmbH Germany Manufacturing 100 04/2020Kirami Oy Finland Manufacturing 100 05/2021Kirami Ab Sweden Sales 60 05/2021Sauna-Eurox 0y Finland Manufacturing 100 08/2021Parhaat Löylyt Oy Finland Sales 100 08/2021Harvia Japan Limited Japan Sales 51 08/2023Phoenix El-Mec srl Italy Manufacturing 100 09/2023TS Spa Holdings LLC United States Holding 100 07/2024ThermaSol Steam Bath LLC United States Manufacturing 100 07/2024
SUBSIDIARIES
The Group’s subsidiaries as at 31 December 2024 are
set out below. Unless otherwise stated, they have share
capital consisting solely of ordinary shares that are held
directly by the Group, and the proportion of ownership
interests held equals the voting rights held by the Group.
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6.2 RELATED PARTY TRANSACTIONS
This note provides information on Harvia Group’s
related parties and transactions with related parties.
The Group’s related parties include the parent company
and the Group companies mentioned in note 6.1 above.
The related parties include also key management
personnel and their family members as well as
companies controlled by these. Key management
personnel are members of the Board of Directors, the
Chief Executive Officer, and the Management Team.
RELATED PARTY TRANSACTIONS
Harvia’s key management personnel, the members
of the Board of Directors, and their family members
are entitled to purchase sauna products from Harvia
in accordance with the policy applying to the entire
personnel of Harvia.
Transactions with related parties have been made on an
arm’s length basis.
EUR thousand 2024 2023Sales of goods and services 63 86Purchases of goods and services 242 22
6.2.1 ACCOUNTING POLICY
Share-based payments
Share-based incentive plans have been
recognized as an expense during the earnings
period in the income statement item personnel
expenses. The fair value of the arrangement is
the share value at the benefit's grant date. The
amount to be recognized as an expense is based
on an estimate of the number of shares, which
are expected to be earned during the vesting
period. The estimate of the shares earned will
be assessed at every balance sheet date. If the
estimate changes in later periods, the change
shall be adjusted in the income statement at that
period the change is noticed. The contra account
for the shares to be granted according to the
incentive plans is the invested unrestricted equity
reserve. Harvia’s share-based incentive plans
that are paid net in shares after deducting the
withholding tax are recognized fully as share paid
arrangements although Harvia pays the taxes in
cash on behalf of the incentive plan participants.
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MANAGEMENT HOLDINGS
The following table indicates the ownership interests
of the members of the Board of Directors, the Chief
Executive Officer and the members of the Management
Team in the parent company’s shares outstanding
at 31 December 2024:
2024 2023Members of the Board of Directors 0.3% 0.3%Chief Executive Officer 0.0% 0.0%Other Management Team 3.0% 2.8%
REMUNERATION OF MANAGEMENT
The Board of Directors decides on the amount of and
basis for the remuneration of the Chief Executive Officer
(CEO) and the members of the Management Team.
The remuneration of the CEO and the members of the
Management Team consists of a monthly salary plus a
bonus. The bonus to the CEO and the members of the
Management Team is paid based on the achievement
of personal objectives as well as certain relating to
profitability for the financial year. The bonus including
the performance-based bonus and short-term incentive
scheme must not exceed 56% of the fixed salary of the
CEO and of the other members of the Management Team.
The CEO of the Group is entitled to statutory pension,
and the age of retirement is determined in accordance
with the statutory employee pension system. The term
of notice for the CEO has been specified as 6 months,
and the CEO is entitled to salary for the term of notice. If
the company terminates the employment contract of the
CEO, he or she is, under certain conditions, entitled to a
compensation that equals a full 6 months' salary.
KEY MANAGEMENT PERSONNEL COMPENSATION
EUR thousand 2024 2023Chief executive officer Salaries and other short-term employee benefits 581 691Long-term incentive program 0 0Pension costs - defined contribution plans* 105 123Total 686 815
* Includes costs of voluntary pension plan amounting to EUR 0 thousand
in 2024 (2023: EUR 4 thousand).
Other Management Team Salaries and other short-term employee benefits 1,662 1,432Long-term incentive program 62 455Pension costs - defined contribution plans 219 188Total 1,943 2,076
REMUNERATION OF MEMBERS OF THE BOARD OF DIRECTORSEUR thousand 2024 2023Olli Liitola (as of 11 March 2014) 36 61Olbrich Heiner (as of 7 April 2022) 58 39Sanna Suvanto-Harsaae (until 20 April 2023) 0 15Anders Holmen (as of 8 April 2021) 36 43Hille Korhonen (as of 8 April 2021) 40 47Catharina Stackelberg-Hammarén (as of 20 April 2023) 35 25Markus Lengauer (as of 20 April 2023) 40 25Total 246 254
SHARE-BASED INCENTIVE PLAN
Harvia has a share based long-term incentive plan for
the CEO and Management Team members. The plan
forms a part of Harvia Plc’s remuneration program for
its executives, and the aim of the plan is to support
the implementation of the company’s strategy, to align
the interests of the executives with interests of the
shareholders to increase the value of the company, to
improve the performance of the company, and to retain
the executives.
The long-term incentive plan consists of three
performance periods of three calendar years each,
2022-2024 and 2023-2025 and 2024-2026. During
2024 Harvia paid out the rewards regarding the
performance period 2021-2023. The Board of Directors
decides separately for each performance period the
plan participants, performance criteria, and related
targets, as well as the minimum, target, and maximum
reward potentially payable based on target attainment.
In the performance period 2021-2023, the plan
had at most 15 participants and the targets for the
performance period were related to the company's
total shareholder return, revenue growth, sustainability
targets and EBIT margin. The maximum number
of shares in Harvia Plc to be paid based on the
performance period 2021-2023 was 33,500. This
number of shares represents gross earnings, from
which the withholding tax and possibly other applicable
contributions are deducted, and the remaining net
amount was paid in shares. Costs from share-based
incentive plans totaling EUR 1,430 thousand were
recognized as an expense during the financial year.
On 6 June 2024, the Board of Directors of Harvia Plc
decided on a directed share issue without consideration
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earning, from which the withholding tax and possible
other applicable contributions are deducted, and the
remaining net amount is paid in shares. However, the
company has the right to pay the reward fully in cash
under certain circumstances. Potential rewards from
the performance period 2023-2025 will be paid out
during spring 2026.
On 27 March 2024, the Board of Directors of Harvia
Plc decided to continue the Long-term Performance
Share Plan for the Management Team and other key
employees for the performance period 2024-2026.
In the performance period 2024-2026, the plan
has 27 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, CO2 emissions
and EBIT margin. The maximum number of Harvia Plc
shares to be paid based on the performance period
2024-2026 is 68,100. This number of shares represents
the gross earning, from which the withholding tax and
possible other applicable contributions are deducted,
and the remaining net amount is paid in shares.
However, the company has the right to pay the reward
fully in cash under certain circumstances. Potential
rewards from the performance period 2024-2026 will
be paid out during spring 2027.
for the payment of rewards earned under the
company’s share-based incentive program. The
share payments concerned the performance period
2021-2023 of the company’s share-based incentive
program launched in 2021. In the share issue, 865 own
shares held by the company were transferred without
consideration to the key employees participating in the
share-based incentive program in accordance with the
program-specific terms and conditions.
In the performance period 2022-2024, the plan
has 16 participants at most and the targets for the
performance period relate to the company's total
shareholder return, revenue growth, sustainability
targets and EBIT margin. The maximum number
of shares in Harvia Plc to be paid based on the
performance period 2022-2024 is 73,600. Potential
rewards from the performance period 2022-2024 will
be paid out during spring 2025.
In the performance period 2023-2025, the plan
has 16 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, CO2 emissions and
EBIT margin. The maximum number of Harvia Plc shares
to be paid based on the performance period 2023-2025
is 61,600. This number of shares represents the gross
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6.3.1 ACCOUNTING POLICY
The tax expense for the period comprises
current and deferred tax. Tax is recognized in
the consolidated profit or loss statement or if the
tax relates to items recognized in profit and loss
statement or directly in equity, it is recognized
in other comprehensive income or equity
correspondingly.
The current tax on profits for the year is
calculated on the basis of the tax laws enacted
or substantively enacted at the balance sheet
date in the countries where the company and its
subsidiaries operate and generate taxable income.
INCOME TAX EXPENSE
EUR thousand 2024 2023Current tax: Current tax on profits for the year -7,985 -6,448Adjustments in respect to prior years -17 -5Total current tax expense -8,001 -6,452Deferred tax: Change in deferred taxes 363 200Income taxes -7,638 -6,253
RECONCILIATION OF INCOME TAX EXPENSE AND TAXES CALCULATED AT THE FINNISH TAX RATE 20%EUR thousand 2024 2023Profit before tax 31,880 29,533Tax calculated at Finnish tax rate 20% -6,376 -5,907Effect of other tax rates for foreign subsidaries -939 -602Expenses not deductible for tax purposes -328 -252Income not subject to tax -84 353Other items 89 155Taxes in income statement -7,638 -6,253
6.3 TAXES
This note provides an analysis of the Group’s taxes.
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DEFERRED TAXES
6.3.3 MANAGEMENT JUDGEMENT
Determining to which extent deferred tax assets can
be recognized requires management judgment. The
management of Harvia Group has used judgment
when determining if deferred tax asset is recognized
for an unused tax loss carryforward or unused tax
credits. Recognition is done only to the extent that it
is probable that future taxable profits will be available
against which the loss or credit carryforward can
be utilized. The Group estimates positions taken in
the tax return with respect to situations in which
applicable tax regulation is subject to interpretation.
If necessary, the booked amounts are adjusted to
correspond to amounts expected to be paid to the
tax authorities.
Harvia’s tax assets include old tax assets arising from
intra-group interest payments. The deductibility of
these interest expenses is limited by tax legislation.
In 2024 EUR 2,947 thousand of intra-group interests
were deducted in taxation (2023: EUR 3,027
thousand). There were EUR 306 thousand intra-group
interest expenses remaining at 31 December 2024.
There is no time limit for the deduction of net interest
expenses in taxation.
6.3.2 ACCOUNTING POLICY
Deferred income tax is recognized on temporary
differences arising between the tax bases of assets
and liabilities and their carrying amounts in the
consolidated financial statements. However, deferred
tax liabilities are not recognized if they arise from the
initial recognition of goodwill; deferred income tax is
not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than
a business combination that at the time of the
transaction affects neither accounting nor taxable
profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted
or substantively enacted by the balance sheet date
and are expected to apply when the related deferred
income tax asset is realized or the deferred income
tax liability is settled.
Deferred tax assets are recognized only to the extent
that it is probable that future taxable amounts will be
available to utilize those temporary differences.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the
deferred taxes assets and liabilities relate to income
taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities
where there is an intention to settle the balances
on a net basis.
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Harvia has no expiring deferred tax assets. The movement in deferred tax assets and liabilities during the year,
without taking into consideration the offsetting of balances within same tax jurisdiction, is as follows:
Recognized in Recognized Business EUR thousand At 1 Januaryprofit or lossin equitycombinations At 31 December2024 Deferred tax assets Tax losses and net interest costs 642 -589 53Internal margin of inventories 401 173 574Provisions 99 19 163 281Derivative financial instruments 0 1 1Other items 639 324 -149 814Total 1,782 -73 1,723Netting of deferred taxes -737 18 -163 -882Net deferred tax asset 1,045 -73 8412024 Deferred tax liabilities Measurement of acquired net assets at fair value 1,416 -462 -34 2,142 3,062Accumulated depreciation differences 138 71 209Property, plant and equipment 341 -39 34 336Inventories 0 0 47 47Other items 24 -5 -18 1Total 1,919 -436 3,655Netting of deferred taxes -737 18 -163 -882Net deferred tax asset 1,182 -436 2,773
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At 1 Recognized in Recognized Business At 31 EUR thousandJanuaryprofit or lossin equitycombinationsDecember2023 Deferred tax assets Tax losses and net interest costs 1,248 -606 642Internal margin of inventories 364 37 401Provisions 119 -20 99Other items 372 267 639Total 2,103 -322 1,782Netting of deferred taxes -737 -737Net deferred tax asset 1,367 -322 1,0452023 Deferred tax liabilities Measurement of acquired net assets at fair value 1,856 -441 1,416Accumulated depreciation differences 154 -16 138Property, plant and equipment 381 -39 341Other items 19 5 24Total 2,410 -491 1,919Netting of deferred taxes -737 -737Net deferred tax liability 1,673 -491 1,182
The Group has not recognized deferred tax liability
on the undistributed profits of its subsidiaries
in the countries where the dividend distribution
causes tax penalties but dividend distribution is
considered unlikely.
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6.4 EQUITY
This note describes what is included in the equity
of Harvia Group.
The total equity consists of the share capital, the
invested unrestricted equity reserve, currency
translation differences and accumulated profits.
SHARE CAPITAL AND NUMBER OF SHARES
Harvia has one share class, and shares entitle the
holders equal right to dividends and votes in the
general meeting of Harvia.
Number of EUR thousand Share capitalsharesAt 31 December 2023 80 18,694,236At 31 December 2024 80 18,694,236
Harvia Plc held a total of 15,207 own shares at
31 December 2024. The shares have been purchased to
be used in the company's long-term incentive program.
OTHER RESERVES
The following table shows a breakdown of the balance
sheet line item ‘other reserves’ and the movements
in these reserves during the year. A description of
the nature and purpose of each reserve is provided
below the table.
Invested Fair value unrestricted Translation EUR thousandreserveequitydifferences TotalAt 1 January 20230 32,562 865 33,427Share-based incentive plan 995 995Share-based payments -346 -346Actuarial gains and losses 124 124Translation differences -1,785 -1,785At 31 December 2023 0 33,334 -921 32,414Share-based incentive plan 1,430 1,430Repurchase of own shares -483 -483Share-based payments -43 -43Gains and losses on cash flow hedgings, net of tax -4 -4Actuarial gains and losses -156 -156Translation differences 2,778 2,778At 31 December 2024 -4 34,081 1,857 35,935
6.4.1 ACCOUNTING POLICY
Translation differences that arise when translating
the financial statements of subsidiaries are
recognized in other comprehensive income
and accumulated in translation differences
reserve in equity.
Exchange rate differences arising on translation
of the foreign controlled entity are recognized
in other comprehensive income as described
in note 5.3 and accumulated in a separate
reserve within equity. The cumulative amount
is reclassified to profit or loss when the net
investment is disposed of.
INVESTED UNRESTRICTED EQUITY RESERVE
Under the Finnish Companies Act, the subscription
price of new shares is credited to the share capital,
unless it is provided in the share issue resolution that
it is to be credited in full or in part to the invested
unrestricted equity reserve. Contributions to the
reserve for invested unrestricted equity can also be
made without share issues.
TRANSLATION DIFFERENCES
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RETAINED EARNINGS
Movements in retained earnings were as follows:
EUR thousand 2024 2023At 1 January 75,081 63,766Dividend distribution -12,709 -11,956Adjustment of the previous period 210 0Profit for the period 24,242 23,271At 31 December 86,825 75,081
In 2024, Harvia paid a dividend of EUR 0.68 per
share, in total EUR 12,709 thousand. Harvia identified
an overstatement of EUR 210 thousand in operating
expenses for 2023, leading to an adjustment in retained
earnings in 2024. This adjustment is immaterial and does
not require restating the 2023 financial statements.
Harvia Plc’s total unrestricted equity amounts to EUR
81,045,028.97 in total, of which profit for the period
accounts for EUR 8,797,782.38. Harvia targets a regularly
increasing dividend with a bi-annual dividend payout. In
order to determine the amount of dividend, the Board
of Directors has assessed the company’s solvency and
financial standing after the end of the period.
Harvia’s Board of Directors proposes to the Annual
General Meeting that the company distributes
a dividend of EUR 0.75 (0.68) per share, EUR
14,020,677.00 in total, for the financial period ended
31 December 2024. The Board of Directors proposes
the dividend to be paid in two instalments, EUR 0.38
per share in April 2025 and EUR 0.37 per share in
October 2025.
EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Movements in non-controlling interests were as follows:
EUR thousand 2024 2023At 1 January 1,082 1,072Additions 163 0Dividend distribution 0 0Profit for the period 0 10At 31 December 1,244 1,082
The equity attributable to non-controlling interest consists
of the share of minority interests in Kirami Ab and Harvia
Japan Limited of Harvia's profit for the period.
6.5 EVENTS OCCURRING AFTER THE
REPORTING DATE
On 17 January 2025, Harvia published the proposals by the
Shareholders’ Nomination Board to the Annual General
Meeting, planned to be held on 8 April 2025. The Nomination
Board proposes that the number of members of the
Board of Directors will be increased from six to seven. The
Nomination Board also proposes that the current members
Heiner Olbrich, Catharina Stackelberg-Hammarén, Anders
Holmén, Hille Korhonen, Markus Lengauer and Olli Liitola
be re-elected to the Board of Directors. In addition, the
Nomination Board proposes that Petri Castrén be elected as
a new member to the Board of Directors. The Nomination
Board proposes no changes to the monthly remuneration
of the Board of Directors.
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Parent company financial statements FAS
Parent company Profit & Loss Statement
EUR 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Revenue 1,083,600.00 1,083,600.00
Other operating income 31.87 725.81
Staff expenses
Wages and salaries -1,388,701.66 -1,123,073.85
Social security expenses
Pension expenses -201,268.62 -152,829.24
Other social security expenses -21,124.86 -23,827.00
Other operating expenses -1,443,076.15 -1,187,101.86
Depreciation and amortization
Depreciation according to plan -6,820.00 -18,831.01
Operating profit -1,977,359.42 -1,421,337.15
Finance income
Financial income from holdings in group
undertakings 15,000,000.00 15,000,000.00
From group undertakings 3,019,711.35 2,215,581.36
From others 3,985,068.43 1,254,679.23
Finance costs
To group undertakings -665,025.01 -542,524.49
To others -6,065,656.38 -4,582,443.59
Finance income and expenses total 15,274,098.39 13,345,292.51
Profit before income appropriations and taxes 13,296,738.97 11,923,955.36
EUR 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Appropriations
Change in cumulative accelerated depreciation 0.00 29,469.84
Group contribution 6,452,000.00 3,650,000.00
Income taxes -950,956.59 -122,058.64
Profit for the period 18,797,782.38 15,481,366.56
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Parent company Balance Sheet
EUR 1.1.-31.12.2024 1.1.-31.12.2023
ASSETS
Non-current assets
Intangible assets
Other long-term expenses 568.32 7,388.32
Advance payments and construction in process 0.00 109,255.00
Investments
Holdings in group undertakings 85,909,022.95 85,909,022.95
Total non-current assets 85,909,591.27 86,025,666.27
Current assets
Long-term receivables
Receivables from group companies 68,835,451.44 41,085,000.00
Other receivables 982,223.00 1,869,013.00
Short-term receivables
Receivables from group companies 23,714,384.36 19,178,773.95
Other receivables 140,594.60 171,150.80
Prepayments and accrued income 268,779.92 4,068,068.07
Cash and cash equivalents 19,473,525.30 11,969,863.16
Total current asset 113,414,958.62 78,341,868.98
Total assets 199,324,549.89 164,367,535.25
EUR 1.1.-31.12.2024 1.1.-31.12.2023
EQUITY AND LIABILITIES
Equity
Share capital 80,000.00 80,000.00
Fair value reserve -3,554.00 0.00
Reserve for invested unrestricted equity 50,307,317.13 50,790,748.26
Retained earnings 11,939,928.46 9,167,487.52
Profit for the period 18,797,782.38 15,481,366.56
Total equity 81,121,473.97 75,519,602.34
Liabilities
Non-current liabilities
Loans from credit institutions 95,500,000.00 75,500,000.00
Amounts owed to group undertakings 8,000,000.00 8,000,000.00
Other non-current liabilities 3,554.00 0.00
Total non-current liabilities 103,503,554.00 83,500,000.00
Current liabilities
Loans from credit institutions 0.00 0.00
Trade payables 273,308.64 129,600.11
Amounts owed to group undertakings 12,725,829.26 4,711,720.38
Other liabilities 73,233.75 114,080.35
Accrued expenses 1,627,150.27 392,532.07
Total current liabilities 14,699,521.92 5,347,932.91
Total liabilities 118,203,075.92 88,847,932.91
Total equity and liabilities 199,324,549.89 164,367,535.25
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Parent company Cash flow statement
EUR 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Cash flow from operating activities:
Profit (loss) before taxes 13,296,738.97 11,923,955.36
Adjustments to operating profit (+/-) for:
Depreciation and amortization 6,820.00 18,831.01
Unrealised foreign exchange gains and losses 0.00 -26,666.29
Other non-cash income and expenses -15,274,098.39 -13,345,292.51
Financial income and expenses 3,554 0.00
Cash flow before working capital changes -1,966,985.42 -1,428,334.83
Working capital changes:
Increase/decrease in trade an other short-term
interest-free receivables -1,212,282.19 14,325.10
Increase/decrease in short-term interest-free
liabilities 460,293.73 -274,954.18
Change in working capital -2,718,973.88 -1,688,963.91
Operating cash flow before financing items and
taxes -290.68 -163.78
Interest received relating to operating activities 602,186.38 421,486.23
Income taxes paid (-), received (+) 2,863,941.32 -3,561,214.98
Cash flow from operating activities: 746,863.14 -4,828,856.44
EUR 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Cash flow from investments
Purchase of tangible and intangible items (-) 0.00 -20,295.95
Proceeds from sale of tangible and intangible
assets 0.00 89,000.00
Loans granted -26,492,731.71 -510,000.00
Loans reveived or granted (group accounts) 7,997,749.98 1,837,307.03
Repayment of loan receivables 50,000.00 4,568,919.93
Interest received from investments 2,471,937.83 2,123,020.01
Dividends received 15,000,000.00 0.00
Cash flow from investments -973,043.90 8,087,951.02
Cash flows from financing activities
Repurchase of own shares -483,431.13 0.00
Repayment of current interest bearing liabilities 0.00 -2,000,000.00
Proceeds from non-current loans 20,000,000.00 925,225.67
Repayment of non-current loans 0.00 -925,225.67
Interest and other financing expenses paid (-) -2,727,800.35 -3,010,074.86
Dividends paid -12,708,925.62 -11,955,944.32
Group contributions received 3,650,000.00 15,460,000.00
Cash flows from financing activities 7,729,842.90 -1,506,019.18
Net increase (+) / decrease (-) in cash and cash
equivalents 7,503,662.14 1,753,075.40
Cash and cash equivalents at beginning of period 11,969,863.16 10,216,787.76
Cash and cash equivalents at end of period 19,473,525.30 11,969,863.16
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Notes to the financial statements of the parent company
PARENT COMPANY ACCOUNTING POLICIES
Harvia Plc’s Financial Statements are presented
according to the Finnish Account Standards (FAS). The
financial statements are in Euros.
The preparation of Harvia Plc’s financial statements
requires the use of estimates, judgment and
assumptions that may affect the application of
accounting policies and the recognised amounts
of assets and liabilities at the date of the financial
statements. Actual results may differ from previously
made estimates and judgments.
NON-CURRENT ASSETS
Intangible assets are recognized at the acquisition cost
less the depreciation according to plan. Acquisition
costs consist of direct costs of the acquisition. The
depreciation has been calculated on straight-line basis
over the financial use of the asset. The depreciation
period of intangible assets is 3 years.
Investments into Group companies are valued at
acquisition cost or net realizable value, if the investment
value has deteriorated significantly and permanently.
RECEIVABLES
Receivables are valued at acquisition cost or the likely
recoverable value if lower.
INCOME TAXES
Income taxes have been recognized based on the
current year profit according to Finnish tax legislation,
with any adjustments resulting from prior years. The
parent company does not record deferred taxes.
DIVIDENDS
Dividend that the Board of Director has proposed has
not been recorded in the financial statements. The
dividends will be recorded based on the decisions of
Annual General Meeting.
CASH FLOW STATEMENT
The interest payments on the loan taken by the
company have been presented under financing
cash flows in the cash flow statement to ensure
consistency with the presentation in the Group's cash
flow statement.
INTEREST SWAP
The interest rate swaps are recorded at fair value
under the Finnish Accounting Act (1336/1997),
Chapter 5 Section 2 a §.
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NOTES TO THE PROFIT AND LOSS STATEMENT
2024 2023
Notes relating to personnel
Number of personnel at the end of the financial year 2 2
Average number of personnel during the financial year
Officers 2 2
EUR 2024 2023
Manangement compensation
Members of the Board of Directors and CEO 826,362.10 945,700.64
Auditors' fees
Statutory audit 119,272.18 56,102.83
Other services 4,275.00 14,689.50
123,547.18 70,792.33
EUR 2024 2023
Finance income and costs
Other interest income
Group undertakings 3,019,711.35 2,215,581.36
Other than group companies 3,985,068.43 1,254,679.23
Total finance income 7,004,779.78 3,470,260.59
Interest and finance charges
Group undertakings -665,025.01 -542,524.49
Other than group companies -6,065,656.38 -4,582,443.59
Total financial expenses -6,730,681.39 -5,124,968.08
Total financial income and expenses 274,098.39 -1,654,707.49
Income taxes
Income taxes for ordinary business -950,956.59 -122,058.64
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NON-CURRENT ASSETS
EUR 2024 2023
Intangible assets
Acquisition cost at 1 January 2,123,591.25 2,123,591.25
Additions
Acquisition cost at 31 December 2,123,591.25 2,123,591.25
Accumulated amortization at 1 January -2,116,202.93 -2,109,344.60
Amortization for the financial year -6,820.00 -6,858.33
Accumulated amortization at 31 December -2,123,022.93 -2,116,202.93
Advance payments on intangible assets 0,00 109,255.00
Book value 31 December 568.32 116,643.32
Machinery and equipment
Acquisition cost at 1 January 107,497.05 215,251.14
Additions
Disposals 0,00 -107,754.09
Acquisition cost at 31 December 107,497.05 107,497.05
Accumulated depreciation at 1 January -107,497.05 -95,524.37
Depreciation for the financial year 0,00 -11,972.68
Accumulated depreciation at 31 December -107,497.05 -107,497.05
Book value 31 December
Investments
Acquisition cost 1 January 85,909,022.95 85,909,022.95
Acquisition cost 31 December 85,909,022.95 85,909,022.95
Book value 1 January 85,909,022.95 85,909,022.95
Book value 31 December 85,909,022.95 85,909,022.95
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HOLDINGS IN GROUP UNDERTAKINGS
Group companies
Parent ownership
31-Dec-2024
Harvia Group Oy, Muurame 100%
Domo Wellness Romania Srl.
Guangzhou City Harvia Sauna Co. Ltd
Harvia Estonia Oü
Harvia Finland Oy, Muurame
Harvia (HK) Sauna Co. Ltd
Harvia US Holdings Inc.
Harvia US Inc.
K&R Imobiliare
LLC Harvia RUS
Saunamax Oy, merged into Harvia Finland Oy 1 March 2024
Harvia Austria GmbH (former Sentiotec GmbH)
Velha Oy, merged into Harvia Finland Oy 30 November 2024
EOS Saunatechnik GmbH
Kusatek GmbH, merged into EOS Saunatechnik GmbH 1 January 2024
Spatronic GmbH, merged into EOS Saunatechnik GmbH 1 January 2024
Harvia Holding GmbH
Kirami Oy
Kirami Ab
Metagroupp OÜ, company terminated 22 November 2024
Sauna-Eurox 0y
Parhaat Löylyt Oy
Harvia Japan Limited
Phoenix El-Mec Srl
TS Spa Holdings LLC
ThermaSol Steam Bath LLC
All Group companies have been consolidated to the Group consolidated IFRS
financial statements.
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RECEIVABLES
EUR 2024 2023
Long-term receivables
Loans to group companies 68,835,451.44 41,085,000.00
Other receivables
Interest rate swap receivables 982,223.00 1,869,013.00
Total 69,817,674.44 42,954,013.00
Short-term receivables
Receivables from group companies
Trade debtors 1,526,232.89 220,396.00
Loans receivable 0,00 120,000.00
Other receivables 21,452,000.00 18,650,000.00
Prepayments and accrued income 736,151.47 188,377.95
Total 23,714,384.36 19,178,773.95
Receivables from others
Other receivables 140,504.06 171,150.80
Prepayments and accrued income 268,779.92 4,068,068.07
409,283.98 4,239,218.87
Material amounts included in prepayments and accrued income
Insurances 20,591.89 21,848.34
Others 29,144.62 12,278.41
Tax receivables 219,043.41 4,033,941.32
268,779.92 4,068,068.07
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LIABILITIES
EUR 2024 2023
Long-term liabilities
Loans from credit institutions 95,500,000.00 75,500,000.00
Loans from group companies 8,000,000.00 8,000,000.00
3,554.00 0,00
103,503,554.00 83,500,000.00
Loans from group undertakings
Trade creditors 16,358.90 0,00
Other liabilities 12,709,470.36 4,711,720.38
12,725,829.26 4,711,720.38
Liabilities for others
Trade creditors 273,308.64 129,600.11
Other liabilities 73,233.75 114,080.35
Accruals and deferred income 1,627,150.27 392,532.07
1,973,692.66 636,212.53
Material amounts shown under accruals and deferred income
Wages and salaries including social security expenses 558,202.04 233,427.56
Interest expenses 976,345.05 82,799.75
Income taxes 0,00 0,00
Other 92,603.18 76,304.76
1,627,150.27 392,532.07
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EQUITY
EUR 2024 2023
Restricted equity
Subscribed capital 1 January 80,000.00 80,000.00
Subscribed capital 31 December 80,000.00 80,000.00
Fair value reserve 1.1. 0,00 0,00
Additions -3,554.00 0,00
Fair value reserve 31.12. -3,554.00 0,00
Total restricted equity 76,446.00 80,000.00
Unrestricted equity
Reserve for invested unrestricted equity 1 January 50,790,748.26 50,790,748.26
Repurchase of shares -483,431.13 0,00
At 31 December 50,307,317.13 50,790,748.26
Retained earnings from previous financial years 24,648,854.08 21,123,431.84
Dividend distribution -12,708,925.62 -11,955,944.32
Retained earnings from previous financial years 11,939,928.46 9,167,487.52
Profit (loss) for the financial year 18,797,782.38 15,481,366.56
Total unrestricted equity 81,045,027.97 75,439,602.34
Total equity 81,121,473.97 75,519,602.34
Distributable unrestricted equity
Reserve for invested unrestricted equity 50,307,317.13 50,790,748.26
Retained earnings from previous years 11,939,928.46 9,167,487.52
Profit for the financial year 18,797,782.38 15,481,366.56
Distributable unrestricted equity 81,045,027.97 75,439,602.34
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NOTES ON FAIR VALUE MEASUREMENT
Hedged item:
Loan, EUR 36,500,000
Hedge derivative instrument:
Interest rate swap nominal amount EUR 36,500,000,
for the period 21 Jan 2022 to 15 Dec 2026.
The company receives 6 months' Euribor interest
rate and pays fixed interest rate. The fair value of the
contract at the balance sheet date was EUR 982,223.
The cash flows and the fair value adjustment
of the interest rate swap are recognized in the
income statement.
Hedged item:
Loan, EUR 20,000,000
Hedge derivative instrument:
Interest rate swap nominal amount EUR 20,000,000,
for the period 22 Nov 2024 to 22 July 2027.
The company receives 6 months Euribor interest
rate and pays fixed interest rate. The fair value of the
contract at the balance sheet date was EUR -3,554
The cash flows of the interest rate swap are recognized
in the income statement but the fair value adjustment is
recognized in fair value reserve.
Harvia is exposed to interest rate risk related to the
floating interest rate payments of a EUR 20 million term
loan. Interest rate risk refers to the fluctuation of cash
flows due to changes in market interest rates. Harvia
mitigates this risk with an interest rate hedge, aimed at
minimizing the impact of interest rate fluctuations.
GUARANTEES AND COMMITMENTS
EUR 2024 2023
Rental payments under lease contracts
Payable during the following financial year 44,865.96 45,945.96
Payable in later years 34,704.73 81,554.64
79,570.69 127,500.60
Derivatives
Interest rate swap 21-Jan-2022 - 15-Dec-2026
Nominal value 36,500,000.00 36,500,000.00
Present value 982,223.00 1,869,013.00
Interest rate swap 22-Nov-2024 - 22-July-2027
Nominal value 20,000,000.00 0,00
Present value -3,554.00 0,00
There is an economic relationship between the
hedged item and the hedging instrument: The loan
interest payments are linked to 1-month Euribor and
derivative payments received are linked to 1-month
Euribor. The interest rate setting for both hedging
instrument and the hedged item are defined on the
same date.
The effect of credit risk does not dominate the value
changes arising from this financial relationship.
The application of hedge accounting requires that
the impact of credit risk does not dominate the value
changes resulting from the financial relationship being
hedged. Standard & Poor’s long-term credit rating for
the counterparty in the derivatives transaction, Danske
Bank, is AA-. Credit risk is considered low and is not a
dominant factor in the hedge relationship.
The hedge relationship is 1:1, and the terms are assessed
qualitatively on a quarterly basis.
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PROPOSAL BY THE BOARD OF DIRECTORS FOR
DISTRIBUTION OF PROFIT
Harvia Plc’s total unrestricted equity amounts to EUR
81,045,027.38 in total, of which profit for the period
accounts for EUR 18,797,782.38. Harvia targets a
regularly increasing dividend with a bi-annual dividend
payout. In order to determine the amount of dividend,
the Board of Directors has assessed the company’s
solvency and financial standing after the end of the
period.
Harvia’s Board of Directors proposes to the Annual
General Meeting that the company distributes a dividend
of EUR 0.75 (0.68) per share, EUR 14,020,677.00 in total,
for the financial period ended 31 December 2024. The
Board of Directors proposes the dividend to be paid in
two instalments, EUR 0.38 per share in April 2025 and
EUR 0.37 per share in October 2025.
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SIGNATURES FOR THE FINANCIAL STATEMENTS, SUSTAINABILITY STATEMENT AND THE
BOARD OF DIRECTORS’ REPORT
To the best of our knowledge, the consolidated financial statements prepared in accordance with IFRS
Accounting Standards and the parent company financial statements in accordance with Finnish Accounting
Standards (FAS), give a true and fair view of the assets, liabilities, financial position and profit or loss of the
issuer and the undertakings included in the consolidation taken as a whole.
The Board of Director’s report includes a fair review of the development and performance of the business and
the position of the company, and the undertakings included in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties that they face.
The sustainability statement included in the Board of Director’s report is prepared in accordance with
sustainability reporting standards referred to in Chapter 7 of the Finnish Accounting Standards (FAS) and
Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council.
In Helsinki, 12 February 2025
AUDITOR’S NOTE
A report on the audit performed has been issued today.
In Helsinki, 12 February 2025
Deloitte Oy
Authorised Public Audit Firm
Johan Groop
Authorised Public Accountant (KHT)
Heiner Olbrich
Chairman of the Board
Matias Järnefelt
CEO
Olli Liitola
Member of the Board
Anders Holmén
Member of the Board
Hille Korhonen
Member of the Board
Catharina von Stackelberg-Hammarén
Member of the Board
Markus Lengauer
Member of the Board
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AUDITOR’S REPORT (Translation of the Finnish Original)
To the Annual General Meeting of Harvia Plc
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS
OPINION
We have audited the financial statements of Harvia
Plc (business identity code 2612169-5) for the year
ended 31 December 2024. The financial statements
comprise the consolidated statement of financial
position, consolidated statement of comprehensive
income, consolidated statement of changes in equity,
consolidated statement of cash flows and notes,
including material accounting policy information, as
well as the parent company’s balance sheet, profit and
loss statement, cash flow statement and notes.
In our opinion
- the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU
- the financial statements give a true and fair view
of the parent company’s financial performance
and financial position in accordance with the laws
and regulations governing the preparation of
financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
BASIS FOR OPINION
We conducted our audit in accordance with good
auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and
of the group companies in accordance with the
ethical requirements that are applicable in Finland
and are relevant to our audit, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements.
In our best knowledge and understanding, the
non-audit services that we have provided to the parent
company and group companies are in compliance
with laws and regulations applicable in Finland
regarding these services, and we have not provided
any prohibited non-audit services referred to in
Article 5 (1) of regulation (EU) 537/2014. The non-audit
services that we have provided have been disclosed in
note 3 to the consolidated financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis
for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context of
our audit of the financial statements as a whole and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have also addressed the risk of management
override of internal controls. This includes
consideration of whether there was evidence of
management bias that represented a risk of material
misstatement due to fraud.
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KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Valuation of Goodwill
Refer to Note 3.2 to the financial statements
The Company’s evaluation of goodwill for impairment involves the comparison of the
recoverable amount of each applicable cash generating unit (“CGU”), or group of CGUs, to
its carrying value on at least an annual basis, in line with International Accounting Standard
(“IAS”) 36 ‘Impairment of Assets’.
The consolidated goodwill balance is € 91,0 million as of 31 December 2024, representing
34,4 % of the total assets in the balance sheet.
The Company based the recoverable amount on the value in use, which uses a discounted
cash flow model. Management’s discounted cash flow model consists of budgets and financial
estimates for an explicit period of five years and cash flows beyond the five-year period are
extrapolated using estimated growth rates.
We identified the valuation of goodwill as a key audit matter because of the significant
estimates and assumptions management made in the value in use calculation. Auditing the
significant judgements and assumptions management made to estimate the recoverable
amount required a high degree of auditor judgement and increased audit effort, including
the need to involve our valuation specialists.
Our audit procedures focused on evaluating the discount rates, revenue, profit margins and
sales growth rates used in the discounted cash flow model to determine the value in use and
included the following audit procedures, among others:
- We evaluated management’s ability to accurately forecast future revenue, profit
margins and growth rates by performing procedures such as comparing actual results
to management’s historical forecasts.
- We evaluated the reasonableness of management’s revenue and profit margin forecasts
by comparing the forecasts to:
- Historical revenues and profit margins.
- Internal communications to the Board of Directors.
- Forecasted information included in the Company’s earnings releases as well as in analyst
reports for the Company.
- With the assistance of our valuation specialists, we evaluated the mechanical accuracy
of the impairment model and the reasonableness of the valuation methodology.
- With the assistance of our valuation specialists, we assessed the appropriateness of the
discount rates, including by developing a range of independent estimates and comparing
those to the discount rates selected by management; and
- We evaluated the adequacy of the Company’s disclosures against the requirements of IAS 36.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of Article 10(2) relating to the consolidated financial statements or the parent company’s
financial statements.
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RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THE MANAGING DIRECTOR FOR THE
FINANCIAL STATEMENTS
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the
EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements. The
Board of Directors and the Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible
for assessing the parent company’s and the group’s
ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using
the going concern basis of accounting. The financial
statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate
the parent company or the group or cease operations,
or there is no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance
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 good auditing
practice will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and
maintain professional skepticism throughout the
audit. We also:
- Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
- Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s
internal control.
- Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures made
by management.
- Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the
going concern basis of accounting and based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the parent company’s
or the group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the parent company or the group to cease to
continue as a going concern.
- Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events so
that the financial statements give a true and fair view.
- Obtain sufficient appropriate audit evidence
regarding the financial information of the entities or
business activities within the group to express an
opinion on the consolidated financial statements.
We are responsible for the direction, supervision and
performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
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We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence,
and communicate with them all relationships and
other matters that may reasonably be thought to
bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore
the key audit matters. We describe these matters
in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that
a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
OTHER REPORTING REQUIREMENTS
INFORMATION ON OUR AUDIT ENGAGEMENT
We were first appointed as auditors by the Annual
General Meeting on 26 April 2024.
OTHER INFORMATION
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of
Directors and the information included in the Annual
Report but does not include the financial statements
or our auditor’s report thereon. We have obtained the
report of the Board of Directors prior to the date of this
auditor’s report and the Annual Report is expected to
be made available to us after that date.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above and, in doing so, consider whether the
other information is materially inconsistent with the
financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors,
our responsibility also includes considering whether the
report of the Board of Directors has been prepared in
compliance with the applicable provisions, excluding
the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
In our opinion, the information in the report of the
Board of Directors is consistent with the information
in the financial statements and the report of the Board
of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the
sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
If, based on the work we have performed on the
other information that we obtained prior to the date
of this auditor’s report, we conclude that there is a
material misstatement of this other information, we are
required to report that fact. We have nothing to report
in this regard.
Helsinki, 12 February 2025
Deloitte Oy
Audit Firm
Johan Groop
Authorised Public Accountant (KHT)
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194
Independent auditor’s report on the ESEF financial statements of Harvia Plc (Translation of the Finnish Original)
on whether the consolidated financial statements that
are included in the ESEF financial statements have
been tagged, in all material respects, in accordance
with the requirements of Article 4 of the Commission’s
regulatory technical standard.
Our responsibility is to indicate in our opinion to
what extent the assurance has been provided. We
conducted a reasonable assurance engagement in
accordance with International Standard on Assurance
Engagements (ISAE) 3000.
The engagement includes procedures to
obtain evidence on:
- whether the primary financial statements in the
consolidated financial statements that are included
in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
- whether the notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
To the Board of Directors of Harvia Plc
We have performed a reasonable assurance
engagement on the consolidated financial statements
(7437002UKTBOWQQOXL69-2024-12-31-fi.zip) of
Harvia Plc (2612169-5) that have been prepared in
accordance with the Commission’s regulatory technical
standard for the financial year ended 31.12.2024.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND
THE MANAGING DIRECTOR
The Board of Directors and the Managing Director are
responsible for the preparation of the company’s report
of the Board of Directors and financial statements (the
ESEF financial statements) in such a way that they
comply with the requirements of the Commission’s
regulatory technical standard. This responsibility
includes:
- preparing the ESEF financial statements in
XHTML format in accordance with Article 3 of the
Commission’s regulatory technical standard
- tagging the primary financial statements, notes and
company’s identification data in the consolidated
financial statements that are included in the ESEF
financial statements with iXBRL tags in accordance
with Article 4 of the Commission’s regulatory
technical standard and
- ensuring the consistency between ESEF financial
statements and the audited financial statements.
The Board of Directors and the Managing Director
are also responsible for such internal control as they
determine is necessary to enable the preparation
of ESEF financial statements in accordance with
the requirements of the Commission’s regulatory
technical standard.
AUDITOR’S INDEPENDENCE AND QUALITY MANAGEMENT
We are independent of the company in accordance
with the ethical requirements that are applicable in
Finland and are relevant to the engagement we have
performed, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality
Management (ISQM) 1, which requires the firm to
design, implement, and operate a system of quality
management including policies or procedures
regarding compliance with ethical requirements,
professional standards, and applicable legal and
regulatory requirements.
AUDITOR’S RESPONSIBILITIES
Our responsibility is to, in accordance with
Chapter 7, Section 8 of the Securities Markets Act,
provide assurance on the financial statements that have
been prepared in accordance with the Commission’s
regulatory technical standard. We express an opinion
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195
- whether there is consistency between the
ESEF financial statements and the audited
financial statements.
The nature, timing and extent of the selected
procedures depend on the auditor’s judgment. This
includes an assessment of the risk of a material
deviation due to fraud or error from the requirements
of the Commission’s regulatory technical standard.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis
for our opinion.
OPINION
Our opinion pursuant to Chapter 7, Section 8 of the
Securities Markets Act is that the primary financial
statements, notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements of Harvia Plc
(7437002UKTBOWQQOXL69-2024-12-31-fi.zip) for the
financial year ended 31.12.2024 have been tagged, in all
material respects, in accordance with the requirements
of the Commission’s regulatory technical standard.
Our audit opinion on the audit of the consolidated
financial statements of Harvia Plc for the financial year
ended 31.12.2024 has been expressed in our auditor’s
report dated 12.2.2025. With this report we do not
express an opinion on the audit of the consolidated
financial statements nor express another assurance
conclusion.
Helsinki, 13 March 2025
Deloitte Oy
Audit Firm
Johan Groop
Authorised Public Accountant (KHT)
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
196
Assurance report on the sustainability statement (Translation of the Finnish Original)
To the Annual General Meeting of Harvia Plc
We have performed a limited assurance engagement
on the group sustainability statement of Harvia Plc
(2612169-5) that is referred to in Chapter 7 of the
Accounting Act and that is included in the report of the
Board of Directors for the financial year 1.1.-31.12.2024.
OPINION
Based on the procedures we have performed and
the evidence we have obtained, nothing has come to
our attention that causes us to believe that the group
sustainability statement does not comply, in all material
respects, with
- the requirements laid down in Chapter 7 of the
Accounting Act and the sustainability reporting
standards (ESRS);
- the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European
Parliament and of the Council on the
establishment of a framework to facilitate
sustainable investment, and amending Regulation
(EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Harvia
Plc has identified the information for reporting in
accordance with the sustainability reporting standards
(double materiality assessment) and the tagging of
information as referred to in Chapter 7, Section 22 of
the Accounting Act.
Our opinion does not cover the tagging of the group
sustainability statement with digital XBRL sustainability
tags in accordance with Chapter 7, Section 22, Subsection
1(2), of the Accounting Act, because sustainability
reporting companies have not had the possibility to
comply with that provision in the absence of the ESEF
regulation or other European Union legislation.
BASIS FOR OPINION
We performed the assurance of the group sustainability
statement as a limited assurance engagement in
compliance with good assurance practice in Finland
and with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) Assurance
Engagements Other than Audits or Reviews of Historical
Financial Information.
Our responsibilities under this standard are further
described in the Responsibilities of the Authorised
Sustainability Auditor section of our report.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis
for our opinion.
OTHER MATTER
We draw attention to the fact that the group
sustainability statement of Harvia Plc that is referred to
in Chapter 7 of the Accounting Act has been prepared
and assurance has been provided for it for the first time
for the financial year 1.1.-31.12.2024.
Our opinion does not cover the comparative
information that has been presented in the group
sustainability statement. Our opinion is not modified in
respect of this matter.
AUTHORISED GROUP SUSTAINABILITY AUDITOR'S
INDEPENDENCE AND QUALITY MANAGEMENT
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our engagement, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements.
The authorised group sustainability auditor applies
International Standard on Quality Management ISQM 1,
which requires the authorised sustainability audit
firm to design, implement and operate a system of
quality management including policies or procedures
regarding compliance with ethical requirements,
professional standards and applicable legal and
regulatory requirements.
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RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THE MANAGING DIRECTOR
The Board of Directors and the Managing Director of
Harvia Plc are responsible for:
- the group sustainability statement and for its
preparation and presentation in accordance with
the provisions of Chapter 7 of the Accounting Act,
including the process that has been defined in the
sustainability reporting standards and in which the
information for reporting in accordance with the
sustainability reporting standards has been identified
as well as the tagging of information as referred to in
Chapter 7, Section 22 of the Accounting Act and
- the compliance of the group sustainability statement
with the requirements laid down in Article 8 of
the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment
of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088;
- such internal control as the Board of Directors and
the Managing Director determine is necessary to
enable the preparation of a group sustainability
statement that is free from material misstatement,
whether due to fraud or error.
INHERENT LIMITATIONS IN THE PREPARATION
OF A SUSTAINABILITY STATEMENT
In preparing the sustainability statement, the company
is required to conduct a materiality assessment
to identify relevant matters to be reported. This
process involves significant management judgement
and choices. Sue to the nature and characteristics
of sustainability reporting, this type of information
involves estimates and assumptions, as well as
measurement and evaluation uncertainties.
In reporting forward-looking information, management
is required to prepare the forward-looking information
on the basis of disclosed assumptions about events
that may occur in the future and possible future
actions by the Group. The actual outcome is likely to
be different since anticipated events frequently do not
occur as expected.
RESPONSIBILITIES OF THE AUTHORISED GROUP
SUSTAINABILITY AUDITOR
Our responsibility is to perform an assurance
engagement to obtain limited assurance about whether
the group sustainability statement is free from material
misstatement, whether due to fraud or error, and to
issue a limited assurance report that includes our
opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the decisions of users taken on the basis of
the group sustainability statement.
Compliance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised)
requires that we exercise professional judgment and
maintain professional skepticism throughout the
engagement. We also:
- Identify and assess the risks of material misstatement
of the group sustainability statement, whether due
to fraud or error, and obtain an understanding of
internal control relevant to the engagement in order
to design assurance procedures that are appropriate
in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
- Design and perform assurance procedures
responsive to those risks to obtain evidence
that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud
is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
DESCRIPTION OF THE PROCEDURES THAT HAVE BEEN
PERFORMED
The procedures performed in a limited assurance
engagement vary in nature and timing from, and
are less in extent than for, a reasonable assurance
engagement. The nature, timing and extent of
assurance procedures selected depend on professional
judgment, including the assessment of risks of
material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower
than the assurance that would have been obtained had
a reasonable assurance engagement been performed.
OUR PROCEDURES INCLUDED FOR EX. THE FOLLOWING:
- Performed inquiries of the company’s management
and personnel responsible for collecting and
reporting the information contained in the
sustainability statement at the group level and for
subsidiaries, as well as at the different levels and
business areas of the organization.
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- Obtained an understanding of the company’s
sustainability reporting process, internal controls,
and information systems related to the sustainability
reporting process through inquiries.
- Reviewed the supporting documentation and
records prepared by the company, where applicable,
and assessed whether they support the information
included in the sustainability statement.
- Performed site visits at selected locations.
- With respect to the double materiality assessment
process, we evaluated the implementation of the
process conducted by the company in relation to the
requirements of the ESRS standards and assessed
whether the disclosed information on the double
materiality assessment is in accordance with the
ESRS standards.
- Evaluated whether the sustainability statement
meets the requirements of the ESRS standards, in
all material aspects, regarding material sustainability
matters to a significant extent.
- With respect to the EU taxonomy information, we
obtained an understanding of the process by which
the company has identified taxonomy-eligible and
taxonomy-aligned economic activities and assessed
the compliance of the related disclosed information
with the regulations.
Helsinki, 12 February 2025
Deloitte Oy
Authorised Sustainability Audit Firm
Johan Groop
Authorised Sustainability Auditor
Harvia 2024 Strategy Business operations Sustainability Investors Governance Financial statements
199
HARVIA PLC
Teollisuustie 1–7
40950 Muurame, Finland
www.harviagroup.com
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