REPORT OF THE BOARD
OF DIRECTORS AND
FINANCIAL STATEMENTS 2025
Verkkokauppa.com has published its annual reporting package for
2025. The reporting package includes the Financial Statements and the
Report of the Board of Directors including the Sustainability Statement,
the Corporate Governance Statement, the Remuneration Report and the
Company Brochure. The reports are available in Finnish and English, and
they can be read and downloaded separately from Verkkokauppa.com’s
investor site as separate pdf files.
VERKKOKAUPPA.COM’S
ANNUAL REPORTING 2025
COMPANY YEAR 2025
CORPORATE GOVERNANCE
STATEMENT 2025
REPORT OF THE BOARD
OF DIRECTORS AND
FINANCIAL STATEMENTS 2025
VERKKOKAUPPA.COM OYJ
PALKITSEMISRAPORTTI 2025
REMUNERATION REPORT 2025
2
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2025
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2025
REPORT OF THE BOARD OF DIRECTORS .......................... 5
SUSTAINABILITY STATEMENT .......................................... 14
ESRS 2 GENERAL DISCLOSURES ........................................... 14
Basis for preparation .................................................. 14
Governance ............................................................ 14
Strategy ................................................................ 17
Impact, risk and opportunity management ..........................24
ENVIRONMENT ...................................................................34
Information about the taxonomy of sustainable finance ............ 34
E1 – Climate change ...................................................35
E2 – Pollution ......................................................... 43
E5 – Resource use and circular economy ........................... 45
SOCIAL RESPONSIBILITY ......................................................50
S1 – Own workforce .................................................. 50
S2 – Workers in the value chain ....................................... 57
S4 – Consumers and end-users ..................................... 60
GOVERNANCE ...................................................................63
G1 – Business conduct ............................................... 63
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) 2025 ... 65
1 CONSOLIDATED STATEMENT OF INCOME ........................ 65
2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .. 65
3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........ 66
4 CONSOLIDATED CASH FLOW STATEMENT ........................67
5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ........ 68
6 GROUP ACCOUNTING PRINCIPLES ................................ 69
6.1 Basic information on the Company ............................ 69
6.2 Basis of preparation ............................................ 69
6.3 Accounting policies requiring judgment by the management
and key factors of uncertainty related to estimates .......... 69
6.4 Accounting principles for consolidated financial statements ..70
6.5 Effects of IFRS standards that become effective during
or after the financial year ........................................ 71
7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...... 72
7.1 Segment reporting .............................................. 72
7.2 Revenue from contracts with customers ....................... 72
7.3 Other operating income ......................................... 73
7.4 Materials and services ..........................................73
7.5 Employee benefits .............................................. 74
7.6 Remuneration of key management personnel ................. 74
7.7 Depreciation and amortization .................................. 76
7.8 Other operating expenses ......................................76
7.9 Finance income and expenses .................................. 76
7.10 Income taxes .................................................... 77
7.11 Earnings per share ............................................... 77
7.12 Share-based payments ......................................... 78
7.13 Intangible assets ................................................79
7.14 Tangible assets ..................................................82
7.15 Leases .......................................................... 83
7.16 Deferred tax assets and liabilities...............................85
7.17 Trade receivables and other receivables ...................... 86
7.18 Inventory ........................................................ 86
7.19 Cash and cash equivalents ......................................87
7. 20 Equity ............................................................ 87
7.21 Cash flow information .......................................... 88
7.22 Funding ......................................................... 89
7.23 Other current liabilities and accrued liabilities .................92
7.24 Provisions ....................................................... 93
7.25 Related parties ................................................. 93
7.26 Guarantees and commitments ................................ 93
7.27 Subsequent events ............................................. 93
8 FINANCIAL STATEMENTS OF PARENT
COMPANY (FAS) 2025 ............................................ 94
INCOME STATEMENT ................................................... 94
BALANCE SHEET ..........................................................95
CASH FLOW STATEMENT................................................ 96
NOTES TO THE FINANCIAL STATEMENTS 31.12.2025 ................. 97
8.1 Notes on the preparation of the financial statements ..........97
8.2 Revenue ......................................................... 98
8.3 Other operating income ........................................ 98
8.4 Employee benefits ............................................. 98
8.5 Management remuneration .................................... 99
8.6 Depreciation and amortization ................................ 100
8.7 Other operating expenses .................................... 100
8.8 Finance income and expenses ................................ 100
8.9 Income taxes .................................................. 100
8.10 Intangible assets ............................................... 101
8.11 Property, plant and equipment................................. 101
8.12 Investments.....................................................102
8.13 Trade receivables and other receivables ......................102
8.14 Receivables from companies of the same group .............102
8.15 Accruals ........................................................102
8.16 Inventory ........................................................102
8.17 Cash and cash equivalents .....................................102
8.18 Equity ...........................................................102
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2025
8.19 Calculation of distributable funds .............................102
8.20 Appropriations ................................................. 103
8.21 Other current liabilities and accrued liabilities ............... 103
8.22 Liabilities to companies of the same group .................. 103
8.23 Long-term debt capital ........................................ 103
8.24 Provisions ...................................................... 103
8.25 Guarantees and commitments ............................... 103
SIGNATURES FOR THE FINANCIAL STATEMENTS AND
THE BOARD OF DIRECTORS’ REPORT ................................ 104
INDEPENDENT AUDITOR’S REPORT ON THE ESEF FINANCIAL
STATEMENTS OF VERKKOKAUPPA.COM OYJ ................ 105
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT 106
4
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2025
Fiscal year 2025 in brief
In 2025, Verkkokauppa.com returned to growth and significantly
improved its profitability. Revenue increased throughout the year and
accelerated toward the year-end, driven by increased online sales,
strong commercial execution and successful seasonal campaigns. Full
year revenue increased by 12.5 percent to EUR 526.5 million (467.8).
Comparable operating result increased to EUR 14.8 million (1.8), with
profitability improving steadily and culminating in a particularly strong
final quarter supported by a record-breaking Black Friday campaign.
Operational efficiency strengthened substantially. Cost efficiency
improved through systematic measures, working capital was managed
with discipline, and inventory levels remained healthy relative to sales.
Gross margin increased year on year to 17.1 percent (16.2%), supported
by improved commercial terms, more efficient inventory turnover and
dynamic pricing. Development of the online business progressed in line
with the strategy, with online revenue increasing by 18.9 percent and
its share of total revenue rising to 69.6 percent. In particular, fast and
one-hour deliveries supported sales development: one-hour delivery
coverage expanded to two million consumers, and delivery volumes
increased by 55.0 percent year on year. Customer satisfaction remained
at an excellent level.
Strategic initiatives advanced as planned, supporting growth and
profitability. International expansion accelerated, with strong growth
particularly in Central Europe and the Nordics. In September, the
company completed the sale of its consumer finance business to Norion
Bank AB and its payment solutions unit, Walley, for a final sale price of
EUR 32.6 million. The transaction strengthened the company’s balance
sheet and sharpened its strategic focus on core operations.
At the end of the year, Verkkokauppa.com was in a strong financial
position. Improved profitability, a strengthened balance sheet and
consistent strategy execution provide a solid foundation for continued
profitable growth and long-term value creation.
Developments in the operating environment
In 2025, the market environment remained uncertain. Although inflation
eased and interest rate expectations showed modest improvement,
these developments were not sufficient to restore consumer confidence,
and discretionary spending continued to be subdued. Ongoing
labor market uncertainty and higher unemployment levels weighed
on demand, with consumers remaining particularly cautious about
purchases of durable goods.
Price competition in the campaign-driven consumer electronics
market remained intense. As the year progressed, however, the
market began to show gradual signs of recovery, supported by a slight
improvement in purchasing power, category-specific demand drivers,
and a gradual normalization of market conditions.
(Sources: Bank of Finland, Statistics Finland)
Revenue and profitability development
In 2025, the company’s revenue increased by 12.5 percent to EUR
526.5 million (467.8). Growth was supported by increased online sales,
strong commercial execution and successful seasonal campaigns.
At the category level, growth was driven particularly by the IT and
Entertainment categories. In the IT category, strong computer sales
were supported by successful commercial actions and the beginning
of replacement cycles, while TV sales in Finland benefited from the
transition to high definition broadcasting, particularly during the second
quarter. In addition, international sales increased significantly during the
year, by 50.8 percent.
Gross margin increased to 17.1 percent (16.2%), supported by improved
commercial terms, efficient inventory turnover and successful assortment
management.
Personnel expenses decreased by 1.4 percent to EUR 35.4 million
(35.9). Comparable personnel expenses increased by 0.4 percent to EUR
35.4 million (35.2). Other operating expenses increased by 4.6 percent
to EUR 34.4 million (32.9), while comparable other operating expenses
increased by 5.5 percent to EUR 34.2 million (32.4). Fixed costs totaled
EUR 69.8 million (68.8), increasing by 1.5 percent compared with the
comparison period. Comparable fixed costs increased by 2.9 percent
to EUR 69.6 million (67.6). The increase in costs was mainly driven by
expenses required to support higher sales volumes, as well as marketing
investments.
The company’s operating result (EBIT) amounted to EUR 17.4 million
(0.6), representing an increase of EUR 16.8 million compared with the
comparison period. Comparable operating result (comparable EBIT) was
EUR 14.8 million (1.8), increasing by EUR 13.0 million compared to the
previous year.
Items affecting comparability totaled EUR 2.5 million (-1.2), mainly
related to the non-recurring gain from the sale of the consumer finance
business and the administrative fine imposed by the Regional State
Administrative Agency.
The result for the period was EUR 12.4 million ( 0.8).
Earnings per share amounted to EUR 0.27 ( 0.02).
Finance and investments
In 2025, operating cash flow totaled EUR 21.6 million (12.9). Operating
cash flow before the change in working capital was EUR 24.4 million (7.0).
The company's net financial expenses were EUR -2.1 million (-2.2).
REPORT OF THE BOARD OF DIRECTORS
5
REPORT OF THE BOARD OF DIRECTORS
In 2025, investments were EUR 3.2 million (1.8), mainly relating
to IT infrastructure updates and to system investments aimed at
strengthening operational efficiency and enhancing fast-delivery
capabilities. Investments included capitalized wages and salaries
totaling EUR 0.9 million (0.9).
At the end of December, Verkkokauppa.com had a total of EUR 17.4
million (19.0) in interest-bearing bank loans, of which EUR 17 million was
tied to a variable interest rate. In addition, the company had an unutilized
EUR 25 million revolving credit facility, which is valid until June 2027. The
principal of the bank loan is amortized every six months.
On 4 September 2025, Verkkokauppa.com completed the sale of its
consumer finance business to Norion Bank AB and its payment solutions
unit, Walley, for a final sale price of EUR 32.6 million. The transaction
generated a gain of EUR 3.2 million, which is included in other operating
income.
Apart from the non-recurring gain, the transaction is not expected
to have a significant impact on Verkkokauppa.com’s results, but it
significantly strengthens the company’s balance sheet structure.
Verkkokauppa.com also signed a long-term partnership agreement
with Walley to provide consumer financing to its customers,
supporting the company's growth and long-term objectives. Under this
arrangement, Verkkokauppa.com earns commissions on consumer
credit intermediation.
Key figures
2025 2024 2023
Revenue, MEUR 526.5
467.8
502.9
Operating profit, % 3.3%
0.1%
0.9%
Comparable operating result, % 2.8%
0.4%
1.2%
Equity ratio, % 23.1%
16.0%
16.2%
Gearing, % -15.4%
35.2%
21.5%
Investments, MEUR 3.2
1.8
2.4
Cash flow from operations, MEUR 21.6
12.9
20.3
Personnel at the end of the period 594
615
677
Kevents during the fiscal year
Q1 / 2025 Q2 / 2025 Q3 / 2025 Q4 / 2025
On 28 January 2025, the
company’s Shareholders’ Nomination
Board proposed the composition
and remuneration of the Board of
Directors.
On 12 February 2025, the
company’s Board of Directors
resolved on a new matching period
under the performance matching
share plan for the years 2023–2027.
On 24 February 2025, the Helsinki
Administrative Court upheld the
administrative fine imposed on
Verkkokauppa.com by the Data
Protection Ombudsman's Sanctions
Board. The company announced the
administrative fine on 15 March 2024
and recognized a provision for it in its
first quarter 2024 results.
On 8 April 2025, the Annual General
Meeting adopted the annual accounts
for the financial period 1 January – 31
December 2024 and resolved not to
distribute a dividend.
On 29 April 2025, the company
announced that Chief Supply Chain
Officer and Management Team
member, Nina Anttila, has resigned to
pursue a new opportunity with another
company.
On 2 June 2025, the company
announced an agreement under which
it would sell its consumer finance
business to Norion Bank AB and its
payment solutions business unit,
Walley.
On 12 August 2025, the composition
of the Shareholders’ Nomination Board
was announced.
On 3 September 2025, the company
announced the appointment of
Anne-Mari Paapio as Chief Supply
Chain Officer and member of the
Management Team. She assumed the
role on 10 September 2025.
On 4 September 2025, the company
announced the completion of the sale
of its consumer financing business
to Norion Bank AB and its payment
solutions unit, Walley.
On 15 September 2025, the company
updated its disclosure policy.
On 6 October 2025, the company
announced that Chief Strategy and
Technology Officer and Management
Team member, Jyrki Tulokas, had
resigned to pursue a new opportunity
with another company.
On 23 October 2025, the company
announced that its Board of Directors had
decided to commence a share buyback
program of up to EUR 1,125,000. The
repurchased shares will be used for the
company's share-based incentive plans
and other share-based remuneration.
The program commenced on 28 October
2025.
On 30 October 2025, the company
announced that it had received a
notification of the Regional State
Administrative Agency for Southern
Finland’s decision to impose an
administrative fine of EUR 540,000 on
Verkkokauppa.com. The decision is
based on an inspection conducted by the
Regional State Administrative Agency in
2023 concerning the company's practices
related to compliance with the Anti-Money
Laundering Act during the period from
1 September 2020 to 31 August 2023.
On 17 November 2025, the company
announced that Chief Commercial
Officer and Management Team member
Tatu Kaleva had resigned to pursue a new
opportunity with another company.
On 20 November 2025, the company
announced that it had completed its
share buyback program. Between
28 October 2025 and 19 November
2025, Verkkokauppa.com repurchased
250,000 of its own shares at an average
price of EUR 3.94 per share.
On 22 December 2025, the company
announced the appointment of Ville
Sammalkorpi as Chief Strategy and
Technology Officer and member of the
Management Team. He will assume the
role on 2 March 2026.
6
REPORT OF THE BOARD OF DIRECTORS
Personnel
The number of employees decreased compared to the previous year and
was 594 (615) at the end of December 2025. The figure includes both
full-time and part-time employees.
In 2025, the company implemented a renewed organizational structure
and operating model to support strategy execution, business growth and
broader use of technology. The company put the strategy into practice
by clarifying its significance from the personnel’s perspective through
internal communications and leadership training sessions. In addition,
the company strengthened capabilities in agile development, continuous
improvement and customer relationship management. In performance
management, common methods for performance evaluation were
introduced.
The company promoted sustainable HR practices through
systematic inclusion and diversity leadership. Measures included
developing sustainable recruitment practices, mapping the current
state of multilingualism within the work community, and actively
involving employees in activities of the diversity group. In work ability
management, the company implemented the “Hyvän Mielen Verkkis”
program to strengthen leadership capabilities related to mental
well-being. A sense of community was fostered through personnel
events and updates on premises and on-site work practices.
In 2025, the company conducted an employee survey three times. The
results played an important role in developing the employee experience.
Based on the findings, the company further developed remuneration
practices and launched a pilot program focusing on working life skills
to enhance the meaningfulness of work. The survey also continuously
measured the Leadership Index, which improved in 2025 compared to
2024.
Information presented in the notes to the financial
statements
Information on the company’s personnel and related parties is provided
in the Notes to the Financial Statements.
Share trading and shares
Verkkokauppa.com share (VERK) in Nasdaq Helsinki stock exchange in
2025:
No. of shared traded 15,919,329
Share of no. of total shares, % 35.1%
Total value, EUR million 46,472,616
Last, EUR 3.94
High, EUR 4.17
Low, EUR 1.30
Average, EUR 2.92
Verkkokauppa.com market capitalization and shareholders
31 December 2025
Market capitalization (excl. own shares), EUR million 17 7.5
Number of shareholders (of which nominee shareholders) 19,501 (9)
Nominee registrations and direct foreign shareholders, % 10.13
Households, % 48.38
Financial and insurance corporations, % 19.02
Other Finnish investors, % 22.48
On 31 December 2025, the share capital was EUR 100,000 and the total
number of shares in the company was 45,354,532 including 299,336
treasury shares held by the company. The treasury shares have no voting
rights, and no dividend is paid on them. The treasury shares accounted
for 0.66 percent of all shares.
On 28 October 2025, the company commenced a share buyback
program under which it repurchased 250,000 of its own shares at
an average purchase price of EUR 3.94 per share, to be used for
share-based incentive plans and other share-based remuneration. The
program was completed on 19 November 2025.
In 2025, the company transferred a total of 37,009 treasury shares as
part of the remuneration of Board members and key employees.
Distribution of shareholders on 31 December 2025
Size of
shareholding, shares
Number of
shareholders
% of
shareholders
Number
of shares
% of shares
0–100
10,160
52.10%
371,222
0.82%
101–500
5,874
30.12%
1,508,352
3.33%
501–1,000
1,763
9.04%
1,361,994
3.00%
1,001–5,000
1,449
7.4 3%
3,107,095
6.85%
5,001–10,000
137
0.70%
1,021,473
2.25%
10,001–50 000
76
0.39%
1,659,287
3.66%
50,001–100 000
9
0.05%
691,272
1.52%
100,001–
24
0.12%
31,351,655
69.13%
Non-Finnish
shareholders
9
0.05%
4,282,182
9.44%
Total 19,501 100.00% 45,354,532 100.0%
Shareholder breakdown by sector on 31 December 2025
Number of
shareholders
% of
shareholders
Number
of shares
% of shares
Households
19,000
97.43%
21,942,812
48.38%
Pension and
insurance
institutions
11
0.06%
10,252,263
22.60%
Private companies
406
2.08%
2,784,916
6.14%
Fund companies
6
0.03%
4,537,915
10.01%
Other
50
0.26%
1,390,268
3.07%
Non-profit
organizations
19
0.10%
164,176
0.36%
Nominee registered
9
0.05%
4,282,182
9.44%
Total 19,501 100.00% 45,354,532 100.00%
7
REPORT OF THE BOARD OF DIRECTORS
Major shareholders on 31 December 2025
Shareholder Number of shares % of shares
Samuli Seppälä
12,519,000
27.60%
Varma Mutual Pension Insurance Company 4,365,932 9.63%
Evli Finnish Small Cap Fund
3,100,000
6.48%
Ilmarinen Mutual Pension Insurance Company 2,174,309 4.79%
Mandatum Life Insurance Company Limited 2,001,833 4.41%
Nordea Nordic Small Cap Fund 1,418,669 3.13%
Elo Mutual Pension Insurance Company 669,541 1.48%
Skogberg Ville Johannes 634,266 1.40%
Mutual Insurance Company Kaleva
506,325
1.12%
S-Bank Finnish Small Companies Equity Fund 504,337 1.11%
10 biggest shareholders, total 27,894,212 61.50%
Other shareholders 17,460,320 38.50%
Total 45,354,532 100.00%
Flagging notifications
On 26 March 2025, the company received a notification from Evli Plc
pursuant to Chapter 9, Section 5 of the Securities Markets Act, according
to which the combined direct ownership of the company's shares and
votes by Evli-Rahastoyhtiö Oy (100% owned by Evli Plc) had exceeded the
five (5) percent threshold. According to the notification, Evli-Rahastoyhtiö
Oy directly held a total of 2,502,380 shares in Verkkokauppa.com Oyj
on 25 March 2025, corresponding to 5.52 percent of all shares in the
company.
Long-term incentive plans
Verkkokauppa.com’s CEO and members of the Management Team
participate in the company’s share-based incentive plan, which is
implemented as a performance-based share plan. The purpose of the
plan is to support the execution of the company’s strategy, increase
long-term shareholder value, and commit key personnel to the company.
The incentive plan is described in more detail in the notes to the Financial
Statements and in the Remuneration Report, both of which are available
on the company’s investor website.
The Performance Share Plan currently includes three 3-year
performance periods, covering 2023–2025, 2024–2026 and 2025–
2027. On 12 February 2025, the Board of Directors decided to commence
the third performance period, covering the years 2025–2027.
The primary performance measure for each performance period is
Total Shareholder Return (TSR). Any rewards under the plan are paid partly
in Verkkokauppa.com shares and partly in cash, in accordance with the
terms of the plan and the applicable payment schedules. No new shares
are issued in connection with the payment of share-based rewards.
Performance period 2023–2025 2024–2026 2025–2027
Incentive
based on
Total Shareholder
Return, TSR
Total Shareholder
Return, TSR
Total Shareholder
Return, TSR
Potential reward
payment
Will be paid in
Verkkokauppa.com
shares in spring
2026
Will be paid in
Verkkokauppa.com
shares in spring
2027
Will be paid in
Verkkokauppa.com
shares in spring
2028
Participants 3 people
3 people
5 people
Max. number of
shares
101,500*
92,900*
225,400*
* Includes the portion to be paid in cash to cover taxes. The final number of shares depends on the
number of shares acquired by the participants and the achievement of the TSR targets set for
the performance period.
Verkkokauppa.com’s management team
Verkkokauppa.com’s management team during 2025:
Member Until/from
Panu Porkka, Chief Executive Officer
Jesper Blomster, Chief Financial Officer
Nina Anttila, Chief Supply Chain Officer Until 28 Aug 2025
Anne-Mari Paapio, Chief Supply Chain Officer From 10 Sep 2025
Tatu Kaleva, Chief Commercial Officer
Pekka Litmanen, Chief Experience Officer
Satu Berlin, Chief HR Officer
Jyrki Tulokas, Chief Strategy and Technology Officer
Suvituuli Tuukkanen, Chief Marketing, Communications and Sustainability
Officer
Verkkokauppa.com announced on 6 October 2025 that Jyrki Tulokas had
resigned to join another company. Tulokas will continue in his current role
until the end of January 2026. On 22 December 2025, Verkkokauppa.com
announced the appointment of Ville Sammalkorpi as Chief Strategy and
Technology Officer as of 2 March 2026, succeeding Tulokas in the role.
Verkkokauppa.com announced on 17 November 2025 that Tatu Kaleva
had resigned to join another company. Kaleva will leave his current
position no later than May 2026, and his successor, Juha Valtonen, was
announced on 21 January 2026. Valtonen will assume the role of Chief
Commercial Officer no later than October 2026.
Acquisitions and divestments
On 4 September 2025, Verkkokauppa.com announced that it had sold
its consumer financing business to Norion Bank AB and its payment
solutions business unit, Walley, for a final sale price of EUR 32.6 million.
The transaction generated a non-recurring gain of EUR 3.2 million.
Strategy
Verkkokauppa.com’s vision is to create a new normal for buying and
owning products and to act as a market forerunner. The company
strengthens its market position by accelerating the shift to online
shopping, enabled by industry leading delivery speed and a customer
centric operating model. The strategy is built on four cornerstones:
Fastest Fulfilment, Operational Excellence, Curated Assortment and
New Business Models. Together, these cornerstones support growth that
outpaces the market, expansion into new categories and geographies,
and continuous innovation in offering and services.
Fastest Fulfilment – Rapid deliveries accelerating the shift to online
Verkkokauppa.com continues to invest in seamless and convenient
online shopping experiences to drive the transition from traditional retail
to e-commerce. As the only operator in Finland, Verkkokauppa.com
already delivers products to two million consumers within one hour.
In 2025, the company continued to expand its distribution network,
8
REPORT OF THE BOARD OF DIRECTORS
invested in a more seamless online shopping experience and enhanced
internal logistics to enable even faster and more efficient fulfilment.
Curated Assortment – Focusing on core categories with selected
category expansions
The company maintains a strong focus on its core categories—
electronics and home appliances—ensuring they are optimally suitable
for fast deliveries, competitively priced and consistently available. In
2025, Verkkokauppa.com focused on its core categories by offering
the best assortment, with competitive pricing and the best availability.
The company also invested in developing its own brands, enhancing
differentiation while supporting margin growth. This approach ensures
a relevant, high-quality, and commercially effective assortment that
reinforces Verkkokauppa.com’s market position.
New Business Models – Securing growth and profitability through
new opportunities
To drive long-term growth, Verkkokauppa.com actively pursued new
business and market opportunities. In 2025, the company strengthened
its presence in Sweden by initiating a strategic partnership with
Amazon.se and establishing new wholesale collaborations. Retail media
continued to grow as a strategic revenue stream, supported by a broader
customer base and the introduction of new media surfaces through
digital signage across all physical stores. The expansion of the trade-in
service and a wider range of recycled products further advanced the
company’s sustainable and circular economy initiatives.
Operational Excellence – Stronger profitability through platform and
AI-driven development
Verkkokauppa.com continuously develops its operations, platform
and data capabilities to drive efficiency and profitability. In 2025, the
company conducted a comprehensive exploration of AI opportunities
across the organization, identifying several hundred potential use cases
that support operational excellence and improve customer experience.
The company’s flexible platform and in-house software development
expertise enable the adoption of leading technologies from selected
partners. These capabilities form the foundation for the performance
improvements and new solutions that will be built throughout the
strategy period.
Intangible resources
The company’s key intangible resources include committed personnel,
strong in house software development expertise, the capability for agile
development, and the infrastructure that enables fast deliveries. These
resources form the foundation for executing the strategy and maintaining
competitive advantage.
Financial targets
Verkkokauppa.com’s long-term financial targets for the strategy period
2024–2028 are as follows:
1. Annual revenue growth (CAGR) of over 5 percent, faster than
the market
2. Annual operating result margin of over 5 percent by the end of
the strategy period
3. Fixed costs to less than 10 percent of revenue by the end of
the strategy period
4. To pay out 60-80 percent of annual net profit in quarterly
growing dividends
Board authorizations
At the Annual General Meeting held on 8 April 2025, the shareholders
authorized the Board of Directors to resolve on the repurchase of a
maximum of 4,535,453 of the company’s own shares using the company’s
unrestricted equity. The authorization represents approximately ten
percent of the total number of shares in the company and is valid until
the next Annual General Meeting, which is planned to be held on 14 April
2026, however no later than 30 June 2026. The authorization cancels all
previous unused authorizations to repurchase the company’s own shares.
At the same Annual General Meeting, the Board of Directors was
also authorized to decide on a share issue, whereby the Board may, by
one or more decisions, issue a maximum of 4,535,453 shares, either as
new shares or shares held by the company. The authorization represents
approximately ten percent of the total number of shares in the company
and is valid until the next Annual General Meeting, however no later than
30 June 2026. The authorization cancels all previous unused share issue
authorizations. During the financial year, the Board of Directors exercised
the share issue authorization by transferring a total of 37,009 treasury
shares as payment for Board remuneration.
In addition to the above, the Board of Directors has no other valid
authorizations to repurchase the company’s own shares or to issue shares.
Board of Directors
The Annual General Meeting confirmed the number of board members
to be seven, and the following persons were re-elected: Robin Bade,
Henrik Pankakoski, Kati Riikonen, Irmeli Rytkönen, Samuli Seppälä,
Enel Sintonen and Arja Talma.
At the constitutive meeting of the Board of Directors held after the
Annual General Meeting, Arja Talma was elected Chair of the Board. The
compositions of the Board committees were decided to be as follows:
• members of the Remuneration Committee are Arja Talma (Chair),
Robin Bade and Henrik Pankakoski.
• Members of the Audit Committee are Enel Sintonen (Chair), Arja
Talma (Vice Chair), Kati Riikonen and Irmeli Rytkönen.
On 8 April 2025, Verkkokauppa.com published a stock exchange release
on the decisions of the Annual General Meeting and the constitutive
meeting of the Board of Directors. The release is available on the
company's website.
Annual general meeting 2025
The Annual General Meeting was held as a remote meeting in Helsinki on
8 April 2025. The Annual General Meeting adopted the Annual Accounts
for the financial year 2024 and decided not to distribute a dividend,
discharged the members of the Board of Directors and the CEO from
9
REPORT OF THE BOARD OF DIRECTORS
liability for the financial year 2024, approved the Remuneration Report
and adopted the Remuneration Policy, and authorized the Board of
Directors to decide on the repurchase and issuance of Verkkokauppa.
com's own shares. In addition, the Annual General Meeting approved
the proposals of the Shareholders' Nomination Board concerning the
election and remuneration of the Board of Directors. Following the
proposal of the Board of Directors, PricewaterhouseCoopers Oy was
elected as the company's auditor and assurer of sustainability reporting.
Mikko Nieminen, APA, acts as the principal auditor and the principal
sustainability assurance provider.
Corporate governance statement and remuneration
reports
The Corporate Governance Statement will be published in connection
with the company's Financial Statements for 2025 and on the company's
investor website https://investors.verkkokauppa.com/en/corporate_
governance.
Most significant risks and uncertainties
Verkkokauppa.com’s risk management is proactive and part of daily
operations. Risks include threats and opportunities that may impact the
company’s success, financial performance, reputation and sustainability
objectives. Risk management follows the ISO 31000 framework and the
company’s Risk Management Policy under the oversight of the Board of
Directors.
Strategic risks
Strategy execution depends on assumptions about the operating
environment, consumer behavior, technological development and
market dynamics. Delays in adapting to the ongoing shift to online
buying and cross-border e-commerce, changing delivery expectations,
new ways of buying and owning or intensified competition and pricing
pressure may weaken competitiveness and growth. Strategic risks are
monitored through scenario planning, early identification of deviations
and proactive resource allocation.
Macroeconomic and market risks
Macroeconomic and geopolitical developments, such as global trade
tensions, inflation, interest rate changes and market uncertainty, may
affect supply chains, consumer purchasing power and buying behavior.
The consumer electronics market remains highly competitive, with
cross-border e-commerce and direct-to-consumer models intensifying
pricing pressure. Seasonality is significant, with revenue and profitability
concentrated in the fourth quarter. Market conditions are continuously
monitored and commercial actions adjusted accordingly.
Operational risks
Operations depend on the resilience of digital channels, IT systems
and supply chain efficiency, including logistics scalability and partner
performance. Disruptions (e.g., system outages, cyber incidents,
supplier delays) may impair sales or service continuity. Talent acquisition,
omnichannel development and change management are critical for
maintaining operational excellence. Supply chains remain exposed to
geopolitical tensions and geographic concentration of manufacturing,
which may increase availability and cost risks. These risks are mitigated
through resilient supply chain structures, backup systems, business
continuity planning and strengthened technology capabilities. AI-related
risks are governed through a structured model with mandatory impact
assessments.
Compliance, cybersecurity and regulatory risks
Tightening EU regulation increases compliance requirements related to
product safety, sustainability, data protection and artificial intelligence.
The company mitigates these risks by continuously updating processes
and monitoring compliance under its Risk Management Policy.
Evolving cyber threats pose risks to business-critical systems and
personal data, potentially leading to operational disruptions, reputational
damage or regulatory sanctions. These risks are managed through
ISO 27001 and ISO 27701-aligned systems and investments in cyber
preparedness, detection and response capabilities.
Failures in product safety or weaknesses in supply chain quality
assurance could result in financial losses, reputational harm or risks to
customer safety. To address this, own-brand products are developed
to stringent standards, with continuous process improvements,
and sustainability risks are monitored through a double materiality
assessment to identify key sustainability impacts, risks and
opportunities.
Financial risks
Financial risks relate to profitability, capital efficiency, balance sheet
structure, working capital, liquidity, access to funding, covenants, and
credit risks. Inventory turnover, category and pricing decisions and
assortment management are critical to maintaining healthy gross
margins and cash flow. External financing arrangements include
covenants that, if not met, could trigger early repayment or renegotiation.
Risks are managed through structured financial processes, disciplined
inventory control and continuous monitoring of liquidity, credit exposure
and financing conditions. For further information on financial risks, please
refer to the Notes to the Consolidated Financial Statements.
Events after the reporting period
• On 21 January 2026, the company announced the appointment of
Juha Valtonen as Chief Commercial Officer and a member of the
Management Team. He will assume the role no later than October
2026.
• On 23 January 2026, the company’s Shareholders’ Nomination
Board proposed the composition and remuneration of the Board of
Directors.
• On 12 February 2026, the company announced that the Board of
Directors had decided on a new share-based incentive plan for
management.
10
REPORT OF THE BOARD OF DIRECTORS
Board proposal for profit distribution
The Board of Directors proposes to the Annual General Meeting that
a maximum dividend of EUR 0.194 per share be paid based on the
financial statements to be adopted for the financial period ended on 31
December 2025. The remaining profit shall be transferred to the account
for retained earnings. The Board of Directors proposes that the dividend
be paid in four instalments as follows:
The first instalment of EUR 0.047 per share is to be paid to shareholders
registered in the company’s shareholders’ register maintained by
Euroclear Finland Oy on the company’s record date, 16 April 2026. The
Board proposes that the dividend instalment payment date be 23 April
2026.
The Board of Directors further proposes that the Annual General
Meeting authorize the Board of Directors, in its discretion, to resolve on
the distribution of the remaining three instalments. The authorization will
be valid until the opening of the next Annual General Meeting. Unless the
Board of Directors resolves otherwise or applicable laws, regulations,
or the rules of the Finnish book-entry system require otherwise, the
authorization will be used to distribute dividend as follows:
Dividend Preliminary record dates Preliminary payment dates
Maximum of EUR 0.048
20 July 2026
27 July 2026
Maximum of EUR 0.049 26 October 2026 2 November 2026
Maximum of EUR 0.050
16 February 2027
23 February 2027
The Board of Directors would make separate resolutions on the
distribution of each instalment under the authorization. The company
would publicly announce each such resolution and confirm the
record and payment dates in connection with such resolutions. Each
instalment based on the resolution of the Board of Directors will be
paid to shareholders registered in the company’s shareholders’ register
maintained by Euroclear Finland Oy on the record dates of payment. The
Board of Directors proposes that the authorization includes the right for
the Board of Directors to decide on all other terms and conditions related
to the dividend distribution.
As at the date of the proposal for the distribution of profit, 12 February
2026, a total of 45,055,196 shares were held outside the company, and
the corresponding total amount of dividends is EUR 8,740,708.
Verkkokauppa.com Oyj’s distributable funds as at 31 December 2025
amounted to EUR 40,970,139 of which profit for the financial year 2025
amounted to EUR 11,363,113.
Market outlook for 2026
General market demand is expected to recover only gradually in 2026
amid subdued consumer confidence. Private consumption is forecast
to start growing during the year as real earnings increase and the labor
market slowly strengthens. Purchasing power is supported by moderate
inflation, while a high household savings rate enhances consumers’
financial resilience. Competition is expected to remain intense.
Financial guidance for 2026
Verkkokauppa.com expects its revenue and comparable operating result
for 2026 to increase. In 2025, the company's revenue was EUR 526.5
million and comparable operating result was EUR 14.8 million.
Guidance includes uncertainties related to changes in purchasing
power and consumer behavior. Verkkokauppa.com’s business is
seasonal and the company’s revenue and operating profit depend largely
on the sales in the fourth quarter.
Alternative performance measurement
In this release, Verkkokauppa.com Oyj presents certain key figures
that are not accounting measures defined under IFRS and therefore are
considered as Alternative Performance Measures (APM). Verkkokauppa.
com Oyj applies in the reporting of alternative performance measures
the guidelines issued by the European Securities and Market Authority
(ESMA).
Verkkokauppa.com Oyj uses alternative performance measures
to reflect the underlying business performance and to enhance
comparability between financial periods. The company’s management
believes that these key figures provide supplementary information on
the income statement and financial position.
Alternative performance measures do not substitute IFRS key ratios.
Financial key figures
1–12/2025 1–12/2024 1–12/2023
Revenue, million euros 526.5
467.8
502.9
Gross profit, million euros 89.9
75.8
80.9
Gross margin-% 17.1% 16.2% 16.1%
EBITDA, million euros 24.2 7.5 11.1
EBITDA-% 4.6% 1.6% 2.2%
Operating result, million euros 17.4 0.6 4.7
Operating result-% 3.3% 0.1% 0.9%
Comparable operating result, million
euros
14.8
1.8
6.1
Comparable operating result- % 2.8% 0.4% 1.2%
Result for the period, million euros 12.4 -0.8 2.1
Equity ratio, % 23.1% 16.0% 16.2%
Gearing, % -15.4% 35.2% 21.5%
Personnel at the end of the period 594 615 677
11
REPORT OF THE BOARD OF DIRECTORS
Formulas for key ratios
Key ratio Definitions Basis of alternative performance measures adopted
Gross profit Revenue - materials and services
Gross profit shows the profitability of the sales
Gross margin, %
(Revenue - materials and services) /
Revenue
x 100
Gross margin measures the profitability of the sales
of Verkkokauppa.com
EBITDA Operating result + depreciation + amortization
EBITDA shows the operational profitability
EBITDA, %
(Operating result + depreciation + amortization) /
Revenue
x 100
EBITDA measures the operational profitability of
Verkkokauppa.com
Operating result
Result for the period before income taxes and net
finance income and costs
Operating result shows result generated by operating
activities
Operating margin, %
Operating result /
Revenue
x 100
Operating margin measures operational efficiency
of Verkkokauppa.com
Items affecting comparability
Material items that are not part of normal operating activities
such as expenses related to restructuring costs including
workforce redundancy and other restructuring costs,
impairment losses of fixed assets, gain or losses recognized
from disposals of fixed assets/businesses, transaction costs
related to business acquisition, compensations for damages and
legal proceedings
Comparable operating result
Comparable operating result is result adjusted with
items affecting comparability
Comparable operating result allows comparison
of operating result in different periods without the
impact of extraordinary items not related to normal
business operations
Comparable operating result
margin %
Comparable operating result /
revenue
Comparable operating margin measures comparable
operational efficiency of Verkkokauppa.com
Equity ratio, %
Total equity /
Balance sheet total – advance payments received
x 100
Equity ratio measures Verkkokauppa.com’s
solvency, ability to bear losses and ability to meet
commitments in the long run
Interest-bearing net debt
Interest-bearing debts (lease liabilities, loans from financial
institutions) - cash and cash equivalents
Interest-bearing net debt measures
Verkkokauppa.com Group’s indebtedness
Gearing, %
Interest-bearing debts (lease liabilities, loans from financial
institutions) - cash and cash equivalents /
Total equity
x 100
Gearing measures the relation of equity and interest-
bearing net debt of Verkkokauppa.com and shows
the indebtedness of the company
Investments
Increases in intangible assets, property, plant and
equipment during the financial period
Investments provide additional information regarding
operating cash flow demands
Net investments
Investments in intangible and tangible assets - proceeds from the
sale of fixed assets. Net investments do not include non-capitalized /
unfinished acquisitions
Earnings per share, basic
Result for the period attributable to equity holders of the company /
Weighted average number of shares outstanding
Earnings per share measures the result for the
period attributable to equity holders of the Group
Share performance indicators
1–12/2025 1–12/2024 1–12/2023
Basic earnings per share, euros 0.27 -0.02
0.05
Diluted earnings per share, euros 0.27 -0.02
0.05
Number of issued shares 45,355
45,355
45,355
Number of treasury shares, thousands 299 86
146
Weighted average number of shares
outstanding
45,280 45,244
45,209
Dilutes weighted average number of
shares outstanding
45,347 45,287
45,277
Equity per share, € 0.87 0.62
0.63
Dividend per share, €* 0.194 -
-
Payout ratio, % 71% -
-
Effective dividend yield, % 4.92 -
-
Price per earnings ratio (P/E ratio) 14.41 -
-
Lowest share price 1.30 1.27
2.24
Highest share price 4.17 2.71
2.99
Average share price 2.92 2.11
2.64
Period end share price 3.94
1.34
2.60
Market value of the shares at
period end, MEUR
17 7.5 60.5 117.5
Number of traded shares, thousands 15,919 7,472
6,887
Traded shares of all shares, % 35.1% 16.5%
15.2%
* 2025: Board of Directors’ proposal, including authorization for dividend distribution.
12
REPORT OF THE BOARD OF DIRECTORS
Key ratio Definitions Basis of alternative performance measures adopted
Earnings per share, diluted
Result for the period attributable to equity holders of the company /
Weighted average number of shares outstanding
+ dilutive potential shares
Equity per share Equity/ Number of shares at reporting day
Dividend per share Dividend / Number of shares at reporting day revised by share split
Dividend payout ratio, %
Dividend per share revised by share split /
Earnings by share revised by share split
x 100
Effective dividend yield % Dividend per share / Share price at reporting day x 100
Price per earnings ratio (P/E
ratio)
Share price at reporting day /
Earnings per share
Traded shares of all shares, %
The number of traded shares during the reporting period /
The average number of shares during the reporting period
x 100
Reconciliation of alternative key ratios
EUR million 1–12/2025 1–12/2024
Comparable operating result 14.8
1.8
Items affecting comparability
2.5
-1.2
Operating result 17.4 0.6
Items affecting comparability
EUR million 1–12/2025 1–12/2024
Recognition of deferred purchase price - 0.6
The Office of the Data Protection Ombudsman -
An administrative fine and other legal fee
-0.1 -1.0
Restructuring - -0.8
Sale of the consumer finance business 3.2 -
Regional State Administrative Agency (AVI)
administrative penalty and related legal costs
-0.6 -
Items affecting comparability total
2.5 -1.2
13
REPORT OF THE BOARD OF DIRECTORS
ESRS 2 GENERAL DISCLOSURES
Basis for preparation
BP-1 General basis for preparation of sustainability
statements
Verkkokauppa.com's (hereafter the company) Sustainability statement
has been prepared in accordance with the requirements set by the
EU Sustainability Reporting Standards (ESRS) and is a consolidated
Sustainability statement in accordance with Chapter 7 of the Accounting
Act. The scope of the reporting aligns with that of the financial statements
and covers all the companies within the Group. The parent company of
the Group is Verkkokauppa.com Oyj, a Finnish public limited company
whose shares are traded on the Nasdaq Helsinki stock exchange.
The reporting takes into account the company's entire value chain to
the extent that information is available. The value chain is described in
section SBM-1 Strategy, business model and value chain.
The company has not exercised the option to omit information
related to intellectual property, know-how, or innovation results. The
company has not made use of the exemption allowing for the omission
of information relating to ongoing developments or matters under
negotiation in exceptional cases, in accordance with Articles 19a(3) and
29a(3) of Directive 2013/34/EU.
BP-2 Disclosures in relation to specific circumstances
The sustainability statement covers the company's entire value chain.
Quantitative information concerning the beginning and end of the value
chain is reported only for sustainability topic E1 – Climate change, the
metrics, preparation principles, and potential uncertainties of which are
presented in more detail in section E1 – Metrics preparation principles.
The calculation of Scope 3 emissions involves significant uncertainty
due to factors such as long supply chains, and the calculation is based
in part on estimates and extrapolated data (e.g., employee surveys) and
average emission factors. The estimates and assumptions used in the
reporting relate to, for example, the assessment of energy consumption
in buildings, employee surveys, and estimates of product life cycles
(3–10 years).
Some of the scope 3 emissions include data from the beginning and
end of the value chain, which has been estimated using indirect sources
such as average methods and substitute estimates when supplier-
specific data is not available. These include, for example, emissions
from packaging materials and transport, which, however, account for a
very small proportion of total emissions. Data from the largest suppliers
is based on reports, and cost-based estimates are only used for smaller
suppliers. The company is aware that estimates based on indirect
sources may cause uncertainty and will continue to develop supplier
cooperation and obtain first-hand emissions data from major suppliers to
improve accuracy.
The company's reporting of indirect Scope 3 emissions has been
adjusted in terms of comparative data for category 11, Use of sold
products. As a result of the adjustment, the company's reported
emissions in 2024 decreased. The decrease is not due to changes in
operations but to a change in accounting principles. The information is
presented in section E1 – Climate Change under Emission Calculation.
The share of renewable electricity purchased by the company
has been adjusted in terms of comparative data. As a result of the
adjustment, the share of renewable electricity in 2024 decreased to
95%. The information is presented in section E1 Climate Change under
Energy consumption and energy mix.
The share of men and women taking family leave has been updated
for the comparison data. The information is presented in topic S1 Own
workforce under S1-15 Work-life balance metrics.
The average time to pay invoices has been updated for comparative
data due to a refinement in the calculation principles. The information is
presented in topic G1 Business Practices under G1-6 Payment Practices.
The Sustainability statement has been verified by a verification service
provider. No other verification has been applied to the indicators.
The company has not included information based on other legislation
or other sustainability reporting standards or frameworks in its
Sustainability statement.
The use of transitional provisions is presented in section IRO-2
ESRS Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement.
Governance
GOV-1 The role of the administrative, management, and
supervisory bodies
In accordance with the Board's rules of procedure, the company's
Board of Directors supervises the management of the company and
its operations, including matters related to sustainability, and is the
highest authority responsible for the Group's sustainability. The Board of
Directors approves the Group's strategy, the Code of Conduct, policies
and guidelines, and the objectives related to responsible business
operations. The Board of Directors also confirms the double materiality
analysis and the analysis of the company's sustainability-related
impacts, risks and opportunities included therein.
The company’s Board represents a diverse range of expertise and has
a broad professional background, ensuring that work and international
experiences, age, and gender complement and support each other to
enhance the company’s business and shareholder value. The Board and
the Management Team have relevant experience in terms of industries,
products, and geographical locations, as well as appropriate skills and
expertise related to the monitoring of sustainability issues. During the
2025 financial year, the company's Board of Directors consisted of seven
members: four women and three men. Of the Board members, 86% (6
persons) were independent. There is no employee representation on the
Board of Directors or the Management Team.
SUSTAINABILITY STATEME NT
14
REPORT OF THE BOARD OF DIRECTORS
Composition of the Board of Directors:
Arja Talma, Chair
Robin Bade
Henrik Pankakoski
Kati Riikonen
Samuli Seppälä
Irmeli Rytkönen
Enel Sintonen
CEO and composition and position of the Management team:
Panu Porkka, CEO
Jesper Blomster, CFO
Tatu Kaleva, Chief Commercial Officer
Pekka Litmanen, Chief Experience Officer (CXO)
Jyrki Tulokas, Chief Strategy and Technology Officer
Suvituuli Tuukkanen, Chief Marketing, Communications and
Sustainability Officer
Satu Berlin, Chief HR Officer
Anne-Mari Paapio, Chief Supply Chain Officer (as of September 10,
2025)
Nina Anttila, Chief Supply Chain Officer (until August 28, 2025)
Gender distribution of the Board of Directors and Management team
2024 2025
Men Women Ratio Men Women Ratio
Board of Directors 43% 57% 3:4 43% 57% 3:4
CEO and
Management team
62% 38% 5:3 62% 38% 5:3
Reported according to the situation at the end of the year
The Board's Audit Committee acts as a preparatory and monitoring
group that oversees the progress of the company's sustainability work in
according to the objectives set in the Sustainability program, with progress
and monitoring reported to itat least twice a year, considering both
strategic and operational perspectives. The Audit Committee regularly
reports to the Board of Directors on matters discussed at its meetings.
The company's CEO is responsible for the implementation and execution
of the Code of Conduct confirmed by the Board of Directors, policies,
and guidelines, including sustainability goals and action plans, within the
company. The members of the Management Team are responsible for the
implementation of the Code of Conduct and policies in their own areas
of responsibility in accordance with the requirements set by the CEO. In
2025, the Management Team consisted of eight members, all of whom
except the CEO were employees. Sustainability issues are regularly
discussed by the company's Management Team, which was supported in
2025 by two steering groups focusing on sustainability issues.
The Sustainability Steering Group prepares the company's
Sustainability program and objectives and monitors their implementation.
The steering group includes members of the Management team covering
the company’s material sustainability issues, the head of sustainability, and
other individuals in expert roles as needed. The steering group is chaired
by the company's Chief Marketing, Communications and Sustainability
Officer, under whose leadership the sustainability unit is responsible
for coordinating the implementation of the Sustainability program. The
CSRD Steering group supports the company's sustainability reporting
with the task of ensuring the resourcing and compliance of reporting.
Additionally, the group holds preliminary discussions on ESG topics that
support reporting readiness and prepares the necessary materials for
the company’s Audit Committee and Board of Directors. The steering
group is chaired by the company's CFO. The group consists of members
of the Management team and experts who participate in the sustainability
reporting process either directly or indirectly.
The company has extensive expertise related to sustainability,
which supports the supervisory bodies in ensuring that the necessary
information on sustainability issues, as well as identified impacts, risks,
and opportunities, is available.
The company's Board of Directors, Audit Committee, and Manage-
ment Team regularly assess the need to develop expertise in sustain-
ability issues through their roles. Expertise is continuously developed
through training and external experts, ensuring that the governance,
management, and supervisory bodies have up-to-date and diverse
information about material sustainability issues.
GOV-2 Information provided to and sustainability
matters addressed by the company’s administrative,
management and supervisory bodies
As part of the review of the 2025 double materiality analysis process, the
company's Board of Directors and Management Team discussed and
approved the identified impacts, risks, and opportunities related to sustain-
ability issues. Principles, actions, and targets related to sustainability issues
and reporting are reported to the supervisory bodies whenever they are
updated and when new principles, targets, or actions are developed.
In 2025, the company adopted an updated Sustainability program and
practices to monitor the progress of the program and sustainability work.
The Sustainability program and sustainability aspects were discussed at
Board meetings as a separate item and as part of personnel updates, risk
management, the policy process, and policy updates. The integration of
the identified material sustainability matters with the company’s strategy
is presented in the section Impacts of strategy on sustainability issues.
The process to identify material impacts, risks and opportunities is
presented in the section Impact, risk and opportunity management.
During the 2025 financial year, the following sustainability-related topics
were discussed in the meetings of the company's Board of Directors, Audit
Committee, and Remuneration Committee:
1) Board of Directors:
• Update and approval of the double materiality analysis
• Approval of the Sustainability statement
• ESG review
• Human resources and strategy
• Updating and approval of numerous internal policies, such as
updates to the Whistleblowing policy and the Anti-bribery and
corruption policy
2) Audit Committee:
• Sustainability statement
• Monitoring the implementation of internal audit findings related to
sustainability issues
• Risk management, including risks related to data protection,
cybersecurity, and ESG topics
15
REPORT OF THE BOARD OF DIRECTORS
• Review of numerous internal policies
• Various legislative and compliance reviews
3) Remuneration Committee:
• Personnel matters and strategy broadly, such as well-being,
diversity, equity, and inclusion, as well as engagement
The following sustainability-related topics, among others, were discussed
in the Management team meetings:
• Sustainability statement and update of the double materiality analysis
• Monitoring the progress of the Sustainability program
• Supplier Code of Conduct
• EU regulation in the ESG framework, such as the General Product
Safety Regulation
• Circular economy services offered by the company
• EcoVadis sustainability assessment
• Risk management policy and processes, risk reviews
• Cybersecurity, data protection, and information security
• Employee satisfaction survey results, eNPS
• Personnel matters and strategy broadly, such as, occupational
safety, well-being, competence development, diversity, equality, and
inclusion, as well as engagement
GOV-3 Integration of sustainability-related performance
in incentive schemes
The remuneration of the company's governing bodies is based on
the company's remuneration policy. Remuneration Committee of the
company’s Board of Directors prepares the remuneration report for the
board's review, and the board approves it for presentation to the general
meeting. Shareholders make an advisory decision on the report at the
annual general meeting. In accordance with the company’s current
remuneration policy, the remuneration applied in 2025 has supported
the company’s long-term financial success and the creation of share-
holder value.
In 2025, the company's sustainability performance will be included
in the short-term remuneration model for management with a total
weighting of 20%. Performance is assessed with a 10% weighting in
relation to the target of keeping the return rate below one (1) percent
annually for so-called ’chage of minds’, which supports the company's
principle of selling products according to need while reducing customer
returns and waste. In addition, performance is assessed with a 10%
weighting in relation to the implementation of the Compliance program.
The 2025 incentive system did not include targets directly related to
greenhouse gas emissions.
GOV-4 Statement on due diligence
Core elements of due diligence
Paragraphs in the
sustainability statement
Page
numbers
a) Embedding due diligence
in governance, strategy and
business model
General information –
Governance
General information – Strategy
14–16,
17–19
b) Engaging with affected
stakeholders in all key
steps of the due diligence
General information – Strategy
General information –
Impact, risk and opportunity
management
20–22,
24
c) Identifying and assessing
adverse impacts
General information – Strategy
General information –
Impact, risk and opportunity
management
22–23,
24
d) Taking actions to
address those adverse
impacts
E1, E2, E5, S1, S2, S4 – Actions
and resources
G1 – Prevention and detection
of corruption and bribery
37, 43–44,
46 – 47,
52–53, 59,
61, 64
e) Tracking the
effectiveness of these
efforts and communicating
E1, E2, E5, S1, S2, S4 – Targets
(MDR-T, MDR-M)
38–40,
44, 47–49,
54–56 , 59,
62
GOV-5 Risk management and internal controls over
sustainability reporting
Risks related to sustainability reporting are identified, assessed,
evaluated, and managed as part of the company’s comprehensive risk
management work. The company’s Board of Directors has approved
the company’s risk management framework, which is based on the ISO
31000 standard. Risk management is an integral part of the company’s
management system and is managed according to an annual cycle. The
company assesses risks based on their occurrence, probability, and
impact, considering financial aspects as well as impacts on operations,
safety, and strategic objectives.
The Sustainability statement is part of the company's external
reporting, overseen bythe company's CFO. The processes related to
the preparation of the Sustainability statmentt are the responsibility of
the finance department and the sustainability unit, including adhering
to reporting timelines and identifying risks related to sustainability
reporting. The risks related to sustainability reporting identified through
the company’s risk management process concern the adequacy of
the reporting content and ensuring the availability and accuracy of
background information. Appropriate measures are defined for managing
the identified risks in accordance with the risk management process.
To ensure the comprehensiveness of the content and background
information of the sustainability statement, the reporting is carried out by
individuals familiar with the subject, who actively follow applicable directive
standards and legislative developments. Additionally, roles have been
defined to ensure the availability and accuracy of background information,
responsible for collecting and providing the necessary information
and implementing measures to supplement any missing information.
Sustainability reporting is also supported by third-party assurance.
To monitor and further develop the internal control processes of
sustainability reporting, the company has established monitoring
controls, such as the CSRD Steering Group work described in the
section Tasks and responsibilities of the administrative, management
and supervisory bodies. The company continues to develop the internal
control of sustainability reporting as part of its control environment.
Progress in sustainability reporting, the availability of necessary
information, and other observations related to reporting were regularly
reported to the company’s Management Team, Audit Committee, and
Board of Directors as part of status reporting.
16
REPORT OF THE BOARD OF DIRECTORS
Strategy
SBM-1 Strategy, business model and value chain
The company is a Finnish retail company spezializing in consumer
electronics and home and leisure products, primarily operating in Finland.
It serves both consumer and business customers online and through
four stores located in Helsinki, Pirkkala, Raisio, and Oulu. The company's
pick-up warehouses are located in Helsinki and Vantaa. Additionally, the
company cooperates with marketplaces such as Amazon, engages in
wholesale sales, and serves consumers through a direct sales channel in
the EU and EEA regions.
The company's product range includes over 60,000 products, with
more than 2,800 products under its private label brands. The core
categories of the product range are computers and peripherals, TV and
video, mobile devices, and home appliances. Additionally, the company
also offers products from other categories, such as baby products,
sports, and seasonal products. The company's range of services
includes installation, maintenance, and recycling services, a trade-in
service for used consumer electronics, visibility sales, and financing
services provided through its partner Walley.
In 2025, the company's revenue was 526.5 million euros (467.8) and
the net profit was 12.4million euros (-0.8). At the end of the year, the
company had 594 employees (615) of which 578 were in Finland (597), 14
in China (15), and 2 in Hong Kong (3).
The company’s strategy guides its actions in gathering, developing,
and securing production inputs.
• Significant production inputs and resources enabling operations:
Own workforce
• Multichannel marketplace
• Business enablers such as the supply chain and supplier
relationships, local warehouses, delivery methods, and own ERP
system and e-commerce platform
• Intangible assets such as brand and recognition, service concept,
product expertise and assortment management, customer and
transaction data, product information and reviews Financial
resources
• Owners
The added value and benefits produced by the company for stakeholders:
• Employees: Salaries and rewards, career paths and skills
development, community and engagement
• Customers: Wide product range and affordable prices, easy
transactions, personalized customer experience, tailored services
for business of all sizes, customer satisfaction
• Suppliers: Purchases and a modern distribution channel to reach
consumer and business customers
• Owners: Profit
• Society: Taxes and tax-like payments
• Environment: Circular economy products and services to extend
product lifecycles
The company’s suppliers include well-known international electronics
brands and wholesalers in Finland and abroad, as well as smaller
suppliers. The company’s procurement is decentralized and does not
constitute a significant part of any supplier's annual production.
Beginning of the value chain End of the value chain
Raw material
production and
sourcing
Retail services
End-useUseDistributionWarehousingFreight
Production and
assembly
Verkkokauppa.com's
own operations
Value chain
Circular economy products and services
17
REPORT OF THE BOARD OF DIRECTORS
Strategy
Verkkokauppa.com's vision is to create a new norm of buying and
owning and to act as a market forerunner. The company is strengthening
its position by accelerating the shift to online shopping, supported by
the growth of fast deliveries. The cornerstones of Verkkokauppa.com's
strategy are growing the current business faster than the market, new
openings, such as assortment expansion, own brand products and
new markets, significant growth of the services business, and stronger
profitability by continuously developing its own operations and platform.
Impacts of strategy on sustainability issues
A responsible approach is a central part of Verkkokauppa.com's strategy
and vision of creating a new norm for buying and owning. The company’s
sustainability-related targets form the company’s Sustainability
program, which key topics are sustainable consumption based on the
circular economy, ensuring sustainable operations and supply chains,
growth and well-being of the company’s own personnel, and maintaining
exemplary business practices. The program is set for the company’s
2024–2028 strategy period and is aligned with the company’s strategy
and double materiality analysis. The program's targets apply to all
customer segments and geographical areas.
The company has recognized that its strategic selection decisions
have an impact on sustainability issues. The company's extensive
supplier network and focus on consumer electronics require strong
processes to ensure the responsibility of its supply chains. The
company's most significant climate and other environmental impacts
occur at the beginning of the value chain, which is characteristic
of the retail sector, during the various stages of manufacturing the
products sold. Ensuring good working conditions in the value chain also
requires continuous development of processes. The environmental
impacts related to the value chain are specified in the section Detailed
information about the process to identify and assess material impacts,
risks, and opportunities related to the environment and in topic-specific
information.
The company’s strategic target of increasing the share of private label
products in revenue highlights the importance of sustainability issues
related to imports. In turn, the development of the service business,
increases the company’s opportunities to promote circular economy
and thereby reduce several environmental impacts. The sale of used
products and services that promote a circular economy are the most
significant products and services related to the company’s sustainability
targets, although their share of the company’s revenue is currently small.
The company's strategic focus on fast deliveries may increase the
company’s indirect greenhouse gas emissions from distribution in the
short and medium term.
One of the key long-term sustainability challenges is reducing those
indirect value chain emissions with which the company has no direct
connection with, such as those arising from partnerships, as well as
transitioning to a circular economy in a financially sustainable way.
The company considers all markets and customer groups equally
significant in relation to sustainability targets. In terms of circular
economy targets, the key product groups are those whose products
retain significant resale value and whose purchase as used goods is
already partially established, such as laptops and mobile phones.
The objectives, indicators, and 2025 results of the Sustainability
program are summarized in the table below. Additionally, the KPIs, their
background information, and development are described in connection
with the relevant topics.
18
REPORT OF THE BOARD OF DIRECTORS
Verkkokauppa.Com's sustainability program
The company's own sustainability theme ESRS topic Target KPI Result in 2025
PASSIONATELY ON
CUSTOMERS’ SIDE FOR
CIRCULAR FUTURE
E5
1.
Double-digit annual growth in the sales of circular products,
services and solutions
Growth of total net sales from circular products and
services
1%
E5
2.
Extending trade-in service every year to cover relevant part of our
HERO-assortment by 2028
1
Annual growth in the amount of categories covered
with trade-in service
25%
E5
3.
Keeping product return rate under 1%
Product return rate (%) including “change of minds” 0.7%
ENSURING RESPONSIBLE
OPERATIONS AND SUPPLY
CHAINS
E1
4.
Reducing emissions according to science-based targets (SBTi):
• Scope 1 & 2 0 tCO
2
e by 2025
2
•
Scope 3: enganing supliers and partners in SBTi targets, 78% in terms of emissions
by 2030
3
Greenhouse gas emissions, tons of CO
2
e (scopes 1
and 2)
Share of partners committed to SBTi targets,
measured in emissions
Q1–Q2: 6 tCO
2
e
Q3–Q4: 0 tCO
2
e
N/A
4
S2
5.
Ensuring that purchases are made from suppliers who provide
adequate working conditions
Percentage of direct suppliers showing proof
of adequate working conditions
5
N/A
4
FOSTERING WELLBEING
AND SUCCESS OF OWN
PERSONNEL
S1
6.
Improving employee engagement to exceed benchmark by 2028
6
Engagement score 7.0 (7. 2
7
)
S1
7.
Improving employee well-being by 0.1 points annually
Well-being score 7.5 ( 7.7
7
)
S1
8.
Improving experience of diversity and inclusion by 0.1 points
annually
DEIB score 7.9 (8.0
7
)
MAINTAINING EXEMPLARY
BUSINESS CONDUCT
G1
Ensuring compliance by anticipating regulation and promoting a compliance culture throughout the organization.
Performance is monitored as part of operational activities.
1
The HERO product range refers to a well-circulating and online-suitable product selection of approximately 30,000 product codes defined in the company’s strategy.
This range supports the company’s customer value promise of fast deliveries and includes the company's customers’ most desired products.
2
With regard to domestic operations
3
The target set is preliminary. The final formulation of the target requires validation by the SBTi organization to ensure that the target is sufficient from the perspective of the 1.5-degree climate scenario.
4
The company plans to start KPI reporting in 2026
5
For example, in the form of a social responsibility audit
6
The goal is to exceed the benchmark for consumer companies, which is updated annually. In 2025, the benchmark was 7.6.
7
The benchmark is the company's previous year's result. The result for the year is reported as the result of the last measurement of the year.
19
REPORT OF THE BOARD OF DIRECTORS
SBM-2 Interests and views of stakeholders
The company's key stakeholders are its customers, personnel, suppliers,
and other partners, as well asowners and the capital market. In addition,
the company has assessed the key interests, views, and human rights
perspective of its value chain workers.
The company engages in active dialogue with its stakeholders to
strengthen understanding of expectations directed at the company
and consider them in the company’s strategy, business model, and
responsibility program. Feedback from stakeholders is regularly
discussed by the Management team and the Board of directors and is an
integral part of the strategy process.
The company conducts regular surveys on sustainability topics to
map the expectations of consumers and end users. The sustainability
barometer surveys conducted in 2022 and 2024, which addressed
consumer electronics and the sustainability of online stores, each
gathered over ten thousand responses, and their results have been
utilized in updating the company’s strategy, double materiality analysis,
and setting the targets of the Sustainability program as communicated in
the survey.
The company reports on its strategy and progress transparently and
up to date, enabling interested stakeholders to monitor the company's
operations.
20
REPORT OF THE BOARD OF DIRECTORS
Stakeholder engagement
Key stakeholder groups Interaction channels and cooperation
Key stakeholder interests and views and
human rights aspect
1
Meeting stakeholders’ expectations and their impact on the company’s operations,
business model and strategy
2
Customers
• Daily customer encounters
• Contacts through customer service channels
• Social media interactions
• Surveys, customer panels, customer satisfaction
surveys
• Communications, advertising, newsletters
• Sustainability barometer
• Reporting channel
Consumer customers and end users:
• Order arrivals, delivery times and availability, maintenance
and warranty issues
• Product information
• Use of products and services
• Extending product lifespan
• Used products
• Product safety
• Information security and protection
• Accessibility
Corporate customers:
• Sustainability and compliance
Consumer customers and end users:
Development work related to:
• Delivery speed, customer service, availability, displaying availability, maintenance and warranty
services, product data, usability
• Circular economy product and services
• Other measures defined based on the sustainability barometer
• Taking care of product safety and data security
• Accessibility
Corporate customers:
• Sustainability and compliance
Own workforce
• Daily interactions
• Personnel survey and other questionnaires and
participation
• Goal and development discussions
• Weekly newsletters, personnel meetings
• Informative interactions
• Workplace communication and discussion channels
• Supervisor coaching
• Training and personnel briefings
• Idea box for personnel ideas
• Task force
• Reporting channel
• Strategy, strategic communication, and implementation
• Community and team spirit
• Salary and rewards
• Skill development
• Flexibility in working life
• Diversity, equality, and inclusion
• Physical and mental health
• Occupational safety
• Prohibition of harassment and discrimination
• Personnel policy, internal personnel development plan
• Diversity working group
• Pay exceeding the table wages in the collective agreement for the retail sector
• Employee benefits and rewards
• Role classification system
• Guidelines and support for supervisory work and management
• Tribe rules, Code of Ethics for Work Community Communications
• Inclusion and engagement channels
• Supporting growth and development
• Development of leadership and everyday leadership, goal and development discussions
• Flexible working arrangements
• Occupational health services and mental well-being support
• Intervention model on harassment and inappropriate treatment, principles for creating a safer space
Suppliers and
other partners
• Partner meetings and regular interaction
• Trade fairs
• Supplier Code of Conduct and audits
• Product safety monitoring
• Surveys
• Reporting channel
• Code of Conduct and contract terms
• Social responsibility audits
• Emission reductions and emission calculations
• Cooperation and dialogue
• Investments in developing sustainability
• Code of Conduct and contract terms
• Quality and safety of procurement
• Consideration of sustainability criteria in procurement decisions
• Development of sistainability in collaboration, investments, and material choices
Owners and the
capital markets
• Active investor and analyst dialogue: reviews,
meetings, visits, and presilent discussions
• Annual General Meeting
• Annual reporting and interim reports
• Capital market days
• Investor pages, social media channels, press releases
• Investor seminars and events
• Responding to surveys and assessments
• Reporting channel
• Profitable growth of the company's operations
• Supporting the fair valuation of the company's shares
• Dividend payment
• Applying principles of responsible investments
• Implementation of corporate responsibility
• Consistent, reliable, relevant, and up-to-date reporting on the operating environment, the
company’s financial performance, and sustainability issues
• Supporting the correct valuation of the company's shares and paying dividends
• Growing profitably
• Developing operations in accordance with the Sustainability program and achieving sustainability
targets
Other considered stakeholders
Workers in
value chain
Social responsibility audits including employee
interviews
Implementation of labor rights and human rights, such as safe
working conditions, adequate rest, a living wage, prohibitions
of harassment, discrimination, forced labor, and child labor
• Requirements set for suppliers
• Social responsibility audits and readiness for zero tolerance policy in accordance with the Amfori
BSCI program for own imports and private label products
1
Human rights aspects are marked in italics
2
Measures to correct or enable correcting human rights impacts are marked in italics
21
REPORT OF THE BOARD OF DIRECTORS
SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
The company conducted its double materiality analysis for the first
time in early 2024 and updated the analysis in 2025. As a result of the
assessment, seven material ESRS-topics have been identified for the
company: E1 Climate change, E2 Pollution, E5 Circular economy and
resource use, S1 Own workforce, S2 Value chain workers, S4 Customers
and end users, and G1 Business operations. Of these, S1 Own workforce
and S4 Customers and end users are material from both an impact
and financial perspective. G1 Business operations is material from a
financial perspective. The other topics are material only from an impact
perspective.
ESRS Topic
Materiality for
the company
Perspective for materiality
Impact Financial
E1 Climate change
Material
E2 Pollution
Material
E3 Water and marine
resources
E4 Biodiversity and
ecosystems
E5 Resource use and
circular economy
Material
S1 Own workforce
Material
S2 Workers in the value
chain
Material
S3 Affected communities
S4 Customers and end-
users
Material
G1 Business conduct
Material
Responding to material impacts, risks, and opportunities and their
interaction with business and strategy
The company's Sustainability program integrates sustainability aspects
into the company's strategy and guides its implementation in business
operations. The Sustainability program is based on a double materiality
analysis and the company's strategy. The Sustainability program is
presented in the table Verkkokauppa.com's Sustainability program.
22
REPORT OF THE BOARD OF DIRECTORS
Summary of material impacts, risks and opportunities based on a double materiality assessment
ESRS topic Subtopic Impact Risks and opportunities
Location in the
value chain
Time
horizon
E1 Climate change Climate change mitigation
Energy
The procurement and production processes of raw materials, the
transportation of products at different stages of the value chain, and the
energy consumption of electronic products during their use generate
greenhouse gas emissions
Entire value
chain
Short-term
E2 Pollution Pollution of air, water and soil
Hazardous chemicals and heavy metals used in the procurement of raw
materials and during production, as well as electrical and electronic waste,
pollute the air, water, and soil if end-users do not dispose of products properly
Beginning
and end of the
value chain
Short-term
E5 Resource use and
circular economy
Resource inflows including
resource use
Resource outflows related
to products and services
Minimising resource consumption in packaging and other use of materials,
favouring recycled materials, extending product life cycles by offering
circular economy products, services and solutions, and reducing the use of
primary resources through eco-design reduce the use of primary resource
Minimizing packaging materials and optimizing material recyclability reduces
waste
Entire value
chain
Short-term
S1 Own workforce Working conditions
Equal treatment and equal
opportunities for all
Prohibiting discrimination can reduce all forms of harassment, bullying, and
discrimination
Opportunities for professional development can increase commitment, a
sense of meaningfulness in work, and well-being at work
Salaries and employee benefits that exceed industry standards increase and
maintain employee satisfaction and well-being and motivate staff to achieve
the company's goals
Motivated, skilled, and well-being staff can improve efficiency, increase
customer satisfaction and sales, and reduce the likelihood of disability
pensions
Offering opportunities for professional development can improve operational
efficiency and reduce costs
Own activities Short- and
medium-
term
Work accidents and sick leave can increase operating costs
Lack of or inadequate responsible HR practices can increase staff turnover
S2 Workers in
the value chain
Working conditions
Other work-related rights
The company's supplier requirements and monitoring practices encourage
suppliers to improve working conditions and ensure that workers' rights are
respected throughout the value chain
Beginning of the
value chain
Short-term
Violations of workers' rights can have a negative impact on workers and their
families
S4 Consumers
and end-users
Personal safety of
consumers and/or end-users
Social inclusion of consumers
and/or end-users
By enabling equal access to the company's products and services for all
consumer groups, the company has a positive impact on the social inclusion
of consumers
Equal access to products and services for all consumer groups can increase
the company's sales
End of the
value chain
Short-term
A potential neglect of product safety measures may lead to individual
situations where the health or safety of customers is endangered
G1 Business conduct Management of relationships
with suppliers, including
payment practices
Fair business conduct, ethical practices, and due diligence practices can
improve the company's reputation among suppliers and partners and
enhance opportunities for long-term relationships and good commercial
co-operation
Own operations
and the
beginning of the
value chain
Short-term
The positive impacts identified by the company are mainly related to
the company's strategy. The negative impacts identified are mainly
related to the company's industry. The company seeks to mitigate the
identified negative impacts by developing its processes and working
with suppliers and partners. The company estimates that the identified
material risks and opportunities may affect its financial position and cash
flows in the short and medium term as presented in the table. Based on
the assessment of the identified risks and opportunities, no material risks
have been identified that would require significant adjustments to the
carrying amounts of the reported assets or liabilities in the 2025 financial
statements. Risks related to the company's personnel are monitored in
accordance with the company's risk management process and managed
as part of operational processes.
The material impacts, risks, and opportunities and their management
are described in more detail in the relevant sections E1, E2, E5, S1, S2, S4,
and G1. The impacts of the company's strategy on sustainability issues
are described in section SBM-1 Strategy, business model and value
chain.
23
REPORT OF THE BOARD OF DIRECTORS
Impact, risk and opportunity management
IRO-1 Description of the processes to identify and assess
material impacts, risks, and opportunities
In 2025, the company reassessed and refined its double materiality
analysis based on a more detailed understanding of the materiality
process. As a result of the update, two new negative impacts were
identified as material. The company's material topics remained
unchanged, but one new sub-theme was added: S4.2 Personal safety of
consumers and end-users. In connection with the analysis, the company
deepened its climate resilience analysis and refined its scenario
reporting, as described in topic E1 Climate change.
No changes were made to the dual materiality identification and
assessment process compared to the previous year. The company's
Board of Directors approved the updated dual materiality analysis in
autumn 2025.
The process drew on previously collected stakeholder views, internal
expertise from various departments within the organization, and
support from external experts. The analysis considered the company's
sustainability context across the entire value chain, i.e., key characteristics
of its operations, such as its location, industry, and business structure, and
their connection to sustainability factors. The double materiality analysis
proceeded in four stages, starting with mapping the value chain and
progressing to identifying impacts, risks, and opportunities. The process
concluded with workshops, first prioritizing impacts and then focusing on
assessing risks and opportunities.
Impact assessment and prioritization
In assessing and prioritizing impacts, the company examined its actual
and potential impacts on the environment and people throughout
the value chain. The assessment considered impacts on various
stakeholders, covering all activities, business relationships, and
geographical areas. The review included both direct impacts of the
company and indirect impacts arising from business relationships, such
as product manufacturing at the beginning of the value chain.
The process was also supported by essential stakeholder interviews,
particularly to deepen the understanding of the company’s impacts at
the upstream end of the value chain. The assessment was conducted
theme by theme, considering key sub-topics. Impacts were reviewed
over short-, medium-, and long-term periods to determine when different
sustainability factors would tangibly affect the business.
Identified impacts were prioritized based on their relative severity.
Severity was assessed according to ESRS guidelines, considering the
scale, scope, and remendability of the impacts. For potential impacts, their
likelihood was also evaluated. In the case of potential negative human rights
impacts, the severity of the impact takes precedence over its likelihood.
Risk and opportunity assessment and prioritization
In assessing risks and opportunities, the company’s expert teams
conducted targeted evaluations of financial risks and opportunities for
each sustainability theme, considering the identified impacts.
The identification of risks and opportunities examined factors that
affected or were reasonably expected to affect the company’s financial
position, financial performance, cash flows, access to financing, or cost
of capital.
The assessment utilized the risk classification defined in the company's
risk management process to evaluate the significance of risks and
opportunities. For the quantitative assessment of risks and opportunities,
the company’s internal risk matrix was used. The matrix considered
the magnitude and likelihood of impacts, defined in the context of
the company’s business environment and financial objectives. The
magnitude of impacts was assessed on a scale based on the financial
impact on revenue and categorized into five levels according to the
company’s risk management process. The assessment covered short-,
medium- and long-term risk factors.
Scoring
The severity of the impacts was measured on a scale of 1 to 5, with 5 being
the highest value. Similarly, the total score for risks and opportunities was
calculated on a scale of 1–5, with 5 representing the greatest impact,
which was multiplied by the probability. Impacts, risks, and opportunities
with a score of more than 3.75 were identified as material. The company's
management determined the materiality threshold.
Detailed information about the process to identify and assess
material impacts, risks, and opportunities related to the environment
Impacts, risks, and opportunities related to pollution, water resources,
marine resources, resource use, and the circular economy were
identified by screening the company’s assets and operations across the
value chain. To deepen the understanding of impacts at the beginning
of the value chain, the company conducted an interview with a supplier.
The interview aimed to provide a comprehensive view of environmental
impacts and potential social impacts related to production. Additionally,
information was gathered about circular economy perspectives, such
as product lifecycle management and opportunities for improving the
value chain. However, the company has not identified any communities
that would be directly affected by its operations and has therefore not
organized any consultations with communities.
Impacts on water and marine resources were identified at the beginning
of the value chain, where the production of consumer electronics
generates environmental impacts, particularly through the mining of
minerals required for manufacturing. The company does not have its own
production facilities, and its locations are not in high water-risk areas.
Impacts, risks, and opportunities related to biodiversity were identified
at the beginning of the value chain in relation to the raw materials used in
the manufacture of products sold, transportation at various stages of the
value chain, and greenhouse gas emissions generated along the value
chain. Additionally, the company has identified transition and systemic
risks related to biodiversity in connection with logistics routes and
supply chains. The company's sites are not located in or near areas that
are sensitive in terms of biodiversity.
For topics identified as material, information has been specified in
connection with topic-specific information. The company continuously
monitors changes in its operating environment and assesses their impact
on materiality. The double materiality analysis is reviewed annually and
updated as necessary.
24
REPORT OF THE BOARD OF DIRECTORS
IRO-2 Disclosure requirements in ESRS covered
by the undertaking’s Sustainability statement
ESRS 2 – General information
Disclosure
requirement
Description Page number
Additional
information
BP-1 General basis for preparation of sustainability statements 14
BP-2
Disclosures in relation to specific circumstances
14
GOV-1
The role of the administrative, management and supervisory
bodies
14–15
GOV-2
Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and
supervisory bodies
15–16
GOV-3
Integration of sustainability-related performance in incentive
schemes
16
GOV-4
Statement on due diligence 16
GOV-5
Risk management and internal controls over sustainability
reporting
16
SBM-1
Strategy, business model and value chain
17–19
SBM-2 Interests and views of stakeholders 20–21
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
22–23
IRO-1
Description of the processes to identify and assess material
impacts, risks and opportunities
24
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
25–27
E1 – Climate change
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
GOV-3
Integration of sustainability-related performance in incentive
schemes
16
E1-1
Transition plan for climate change mitigation
36
ESRS 2,
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
35–36
ESRS 2,
IRO-1
Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
35
E1-2
Policies related to climate change mitigation and adaptation 36
E1-3
Actions and resources in relation to climate change policies
37
E1-4 Targets related to climate change mitigation and adaptation 38
E1-5
Energy consumption and mix
39
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 40
E1-7
GHG removals and GHG mitigation projects financed through
carbon credits
NA
Not material
E1-8
Internal carbon pricing
N/A
Not material
E1-9
Anticipated financial effects from material physical and
transition risks and potential climate-related opportunities
N/A Phase-in applied
25
REPORT OF THE BOARD OF DIRECTORS
E2 – Pollution
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
IRO-1
Description of the processes to identify and assess material
pollution-related impacts, risks and opportunities
43
E2-1
Policies related to pollution
43
E2-2
Actions and resources related to pollution
43–44
E2-3
Targets related to pollution 44
E2-4
Pollution of air, water and soil
N/A
Not material
E2-5
Substances of concern and substances of very high concern N/A Not material
E2-6
Anticipated financial effects from pollution-related impacts,
risks and opportunities
N/A Not material
E5 – Resource use and circular economy
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
IRO-1
Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and
opportunities
45
E5-1
Policies related to resource use and circular economy 45–46
E5-2
Actions and resources related to resource use and circular
economy
46–47
E5-3
Targets related to resource use and circular economy
47
E5-4 Resource inflows 48
E5-5
Resource outflows
48
E5-6
Anticipated financial effects from resource use and circular
economy-related impacts, risks and opportunities
N/A Phase-in applied
S1 – Own workforce
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
SBM-2
Interests and views of stakeholders 20–21
ESRS 2,
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
22–23
S1-1
Policies related to own workforce 51
S1-2
Processes for engaging with own workers and workers’
representatives about impacts
51–52
S1-3
Processes to remediate negative impacts and channels for own
workers to raise concerns
52
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
52–53
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
53–54
S1-6 Characteristics of the undertaking’s employees 54
S1-7
Characteristics of non-employee workers in the undertaking’s
own workforce
54
S1-8
Collective bargaining coverage and social dialogue
54
S1-9 Diversity metrics 55
S1-10
Adequate wages
55
S1-11
Social protection
55
S1-12
Persons with disabilities N/A
Not material
S1-13
Training and skills development metrics
55
S1-14
Health and safety metrics 55
S1-15
Work-life balance metrics
55
S1-16 Compensation metrics (pay gap and total compensation) 55
S1-17
Incidents, complaints and severe human rights impacts
55–56
26
REPORT OF THE BOARD OF DIRECTORS
S2 – Workers in value chain
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
SBM-3
Interests and views of stakeholders 20–21
S2-1
Material impacts, risks and opportunities and their interaction
with strategy and business model
22–23
S2-2
Policies related to value chain workers 57
S2-3
Processes for engaging with value chain workers about impacts
58
S2-4
Processes to remediate negative impacts and channels for
value chain workers to raise concerns
58
S2-5
Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material
opportunities related to value chain workers, and effectiveness
of those action
59
S2-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
59
S4 – Consumers and end-users
Disclosure
requirement
Description Page number
Additional
information
ESRS 2,
SBM-2
Interests and views of stakeholders 20–21
ESRS 2,
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
22–23
S4-1
Policies related to consumers and end-users
60
S4-2
Processes for engaging with consumers and end-users about
impacts
60–61
S4-3
Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
61
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
61
S4-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
62
G1 – Business conduct
Disclosure
requirement
Description Page number
Additional
information
ESRS,
GOV-1
The role of the administrative, supervisory and management
bodies
14–15
IRO-1
Description of the processes to identify and assess material
impacts, risks and opportunities
24
G1-1
Corporate culture and business conduct policies 63
G1-2
Management of relationships with suppliers
64
G1-3
Prevention and detection of corruption and bribery 64
G1-4
Confirmed incidents of corruption or bribery
64
G1-5 Political influence and lobbying activities N/A
Not material
G1-6
Payment practices
64
27
REPORT OF THE BOARD OF DIRECTORS
List of datapoints in cross-cutting and topical standards derive from EU legislation
Disclosure
Requirement
Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference
Materiality
for Verkko-
kauppa.com
Section and
page number
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) Indicator number 13
of Table #1 of Annex 1
Commission Delegated Regulation (EU)
2020/1816(5), Annex II
15
ESRS 2 GOV-1 Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU) 2020/1816, Annex II
15
ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10
Table #3 of Annex 1
16
ESRS 2 SBM-1 Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453(6)Table 1: Qualitative information
on Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU) 2020/1816, Annex II
X
N/A
ESRS 2 SBM-1 Involvement in activities related to chemical
production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU) 2020/1816, Annex II
X
N/A
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation (EU) 2020/1818(7),
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II
X
N/A
ESRS 2 SBM-1 Involvement in activities related to cultivation
and production of tobacco paragraph 40 (d) iv
Delegated Regulation (EU) 2020/1818, Article
12(1) Delegated Regulation (EU) 2020/1816,
Annex II
X
N/A
ESRS E1-1 Transition plan to reach climate neutrality by
2050 paragraph 14
Regulation
(EU) 2021/1119,
Article 2(1)
36
ESRS E1-1 Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU) 2020/1818,
Article12.1 (d) to (g), and Article 12.2
36
ESRS E1-4 GHG emission reduction targets paragraph
34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 6
38
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors) paragraph 38
Indicator number
5 Table #1 and
Indicator n. 5 Table
#2 of Annex 1
39
28
REPORT OF THE BOARD OF DIRECTORS
Disclosure
Requirement
Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference
Materiality
for Verkko-
kauppa.com
Section and
page number
ESRS E1-5 Energy consumption and mix paragraph 37
Indicator number 5
Table #1 of Annex 1
39
ESRS E1-5 Energy intensity associated with activities
in high climate impact sectors paragraphs
40 to 43
Indicator number 6
Table #1 of Annex 1 39
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number
1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality
of exposures by sector, emissions and residual
maturity
Delegated Regulation (EU) 2020/1818, Article
5(1), 6 and 8(1)
40
ESRS E1-6 Gross GHG emissions intensity paragraphs
53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818, Article
8(1)
40
ESRS E1-7 GHG removals and carbon credits
paragraph 56
Regulation (EU)
2021/1119, Article
2(1)
X
N/A
ESRS E1-9 Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
Delegated Regulation (EU) 2020/1818, Annex II
Delegated Regulation (EU) 2020/1816, Annex II
X
N/A
ESRS E1-9 Disaggregation of monetary amounts
by acute and chronic physical risk
paragraph 66 (a)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47;
X
N/A
ESRS E1-9 Location of significant assets at material
physical risk paragraph 66 (c).
Template 5: Banking book - Climate change
physical risk: Exposures subject to physical risk.
X
N/A
ESRS E1-9 ESRS E1-9 Breakdown of the carrying value
of its real estate assets by energy-efficiency
classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34; Template 2:Banking
book -Climate change transition risk: Loans
collateralised by immovable property - Energy
efficiency of the collateral
X
N/A
ESRS E1-9 Degree of exposure of the portfolio to
climate- related opportunities paragraph 69
Delegated Regulation (EU) 2020/1818, Annex II
X
N/A
ESRS E2-4 Amount of each pollutant listed in Annex II of
the E-PRTR Regulation (European Pollutant
Release and Transfer Register) emitted to air,
water and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
X
N/A
29
REPORT OF THE BOARD OF DIRECTORS
Disclosure
Requirement
Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference
Materiality
for Verkko-
kauppa.com
Section and
page number
ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7
Table #2 of Annex 1
X
N/A
ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8
Table 2 of Annex 1
X
N/A
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator number 12
Table #2 of Annex 1
X
N/A
ESRS E3-4 Total water recycled and reused
paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
X
N/A
ESRS E3-4 Total water consumption in m3 per net
revenue on own operations paragraph 29
Indicator number 6.1
Table #2 of Annex 1
X
N/A
ESRS 2 –
IRO-1 – E4
Paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
27–28
ESRS 2 –
IRO-1 – E4 Paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
27–28
ESRS 2 –
IRO-1 – E4
Paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
27–28
ESRS E4-2
Sustainable land / agriculture practices or
policies paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
X
N/A
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
X
N/A
ESRS E4-2
Policies to address deforestation paragraph
24 (d)
Indicator number 15
Table #2 of Annex 1
X
N/A
ESRS E5-5 Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
48
ESRS E5-5
Hazardous waste and radioactive waste
paragraph 39
Indicator number 9
Table #1 of Annex 1
48
ESRS 2 –
SBM-3 – S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
50
ESRS 2 –
SBM-3 – S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
50
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex I
51
ESRS S1-1
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8, paragraph 21
Delegated Regulation (EU) 2020/1816, Annex II 51
ESRS S1-1
Processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11
Table #3 of Annex I
51
30
REPORT OF THE BOARD OF DIRECTORS
Disclosure
Requirement
Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference
Materiality
for Verkko-
kauppa.com
Section and
page number
ESRS S1-1 Workplace accident prevention policy or
management system paragraph 23
Indicator number 1
Table #3 of Annex I
47
ESRS S1-3 Grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
51
ESRS S1-14
Number of fatalities and number and rate
of work- related accidents paragraph 88 (b)
and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation (EU) 2020/1816, Annex II 55
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
55
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation (EU) 2020/1816, Annex II 55
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
55
ESRS S1-17 Incidents of discrimination paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
55
ESRS S1-17
Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104 (a)
Indicator number
10 Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818 Art 12 (1)
55
ESRS 2 –
SBM-3 – S2
Significant risk of child labour or forced labour
in the value chain paragraph 11 (b)
Indicators number 12
and n. 13 Table #3 of
Annex I
57
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number
9 Table #3 and
Indicator n. 11 Table
#1 of Annex 1
57–58
ESRS S2-1
Policies related to value chain workers
paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
57–58
ESRS S2-1
Non-respect of UNGPs on Business
and Human Rights principles and OECD
guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
57–58
ESRS S2-1
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8, paragraph 19
Delegated Regulation (EU) 2020/1816, Annex II 57–58
ESRS S2-4
Human rights issues and incidents connected
to its upstream and downstream value chain
paragraph 36
Indicator number 14
Table #3 of Annex 1
59
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9
Table #3 of Annex
1 and Indicator
number 11 Table #1 of
Annex 1
X
N/A
31
REPORT OF THE BOARD OF DIRECTORS
Disclosure
Requirement
Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference
Materiality
for Verkko-
kauppa.com
Section and
page number
ESRS S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD
guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
X
N/A
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
X
N/A
ESRS S4-1
Policies related to consumers and end-users
paragraph 16
Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex 1
60
ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
60
ESRS S4-4
Human rights issues and incidents paragraph
35
Indicator number 14
Table #3 of Annex 1
61
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
63
ESRS G1-1
Protection of whistle- blowers paragraph 10
(d)
Indicator number 6
Table #3 of Annex 1
63
ESRS G1-4
Fines for violation of anti- corruption and
anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation (EU) 2020/1816, Annex
II)
64
ESRS G1-4
Standards of anti- corruption and anti- bribery
paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
64
32
REPORT OF THE BOARD OF DIRECTORS
MDR-P Policies adopted to manage material
sustainability matters
The views of key stakeholders have been taken into account in the
formulation of policies. The company's Management Team monitors the
implementation of the policies. More detailed content and application
of the policies are presented in connection with each material topic.
All listed policies are available on the company's website in Finnish and
English, with the exception of the Anti-Corruption and Anti-Bribery Policy,
which is an internal document of the company.
Policy and ESRS topic
1
Main contents Scope Responsibility
Code of Conduct
E1, E2, E5, S1, S2, S4, G1
Defines the company’s way of operating in relation to customer-oriented activities,
communication, marketing, disclosure, personnel and corporate culture, cooperation
with partners, prevention of corruption and bribery, human rights and labor rights,
data security and protection, environment, compliance with laws, and the reporting
channel.
Applies to own workforce and
management and compliance
is also required from the
company’s suppliers and
partners globally
•
The CEO is responsible for implementation and delegates responsibilities to
the Management Team members if necessary
•
The legal unit assists the CEO in updates and changes to the Code of Conduct
•
Approved by the Board
Supplier Code of Conduct
E1, E2, E5, S2
Respect for human rights, themes of social and environmental responsibility, and risk
materials
Entire value chain globally
•
The Chief Commercial Officer is responsible for implementation and compliance
•
Approved by the Board
Environmental policy
E1, E2, E5
Reduction of greenhouse gas emissions, environmental protection and pollution
prevention, packaging and material choices, circular economy and product lifespan
extension, eco-design, waste minimization, and directing waste for reuse.
Principles for identifying, preventing, and mitigating potential and actual harmful
environmental impacts.
Own operations and value chain
globally
•
The Chief Marketing, Communications and Sustainability Officer is responsible for
implementation and compliance
•
Approved by the Management Team
Personnel policy
S1
The operating principles related to the own workforce concerning the identification,
prevention, and mitigation of potential and actual negative impacts on personnel,
compliance with human rights, and the principle of avoiding causing or contributing
to negative human rights impacts
Own operations globally
•
The Chief HR Officer is responsible for implementation and compliance
•
Approved by the Management Team.
Anti-Bribery and
Anti-Corruption Policy
G1
Zero tolerance for bribery, corruption, and other unethical influence; identification
and prevention of corruption and bribery; regulations concerning gifts, hospitality,
product loans, discounts, participation in company trips and sales competitions, as
well as the approval process related to these
Own operations and value chain
globally
•
The CEO is responsible for implementation and compliance supported by
•
the Management Team
•
Approved by the Board
Whistleblowing policy
G1
The principles of the reporting channel available for all stakeholders
Own operations and value chain
globally
•
The CFO is responsible for implementation and compliance
•
Approved by the Board
Risk management policy
G1
The company’s risk management framework for ensuring the achievement of
business objectives, operational continuity, disruption-free functioning, and security,
covering the company’s operating environment, processes, services, projects, and
procurement
Applies to own workforce and
management globally
•
The Chief Information Officer is responsible for reporting identified risks to
the Audit Committee and Board
•
The CEO is responsible for compliance
•
Approved by the Board
Data security policy
G1
A comprehensive information security management system that ensures the
confidentiality, integrity and availability of information that creates a secure
environment for customers and employees
Applies to all employees and
management globally
•
The Chief Information Officer is responsible for implementation and compliance
•
Approved by the Management Team
1
The ESRS topic/s for which the policy addresses the related material impacts, risks and opportunities
33
REPORT OF THE BOARD OF DIRECTORS
ENVIRONMENT
Information about the taxonomy of sustainable finance
The company presents the information required under the EU Taxonomy
for sustainable finance in accordance with the European Commission
Delegated Regulation (EU) 2021/2178 and the amending Delegated
Regulation (EU) 2026/73, applicable as of 1 January 2026.
The EU Taxonomy for sustainable finance is a classification system
designed to direct capital flows towards sustainable investments and to
support the achievement of a climate neutral European Union by 2050.
Activities typical of the retail sector are currently not specifically listed in
the classification system.
In 2025, the company's business consisted of retail sales and the sales
of its supporting services. The company has reviewed its operations to
identify activities in its business that would be eligible and aligned with
taxonomy. The company's interpretation is that a significant part of its
business activities falls outside the scope of the classification system.
The company has not identified any Taxonomy eligible capital
expenditures or operating expenditures for 2025. A portion of the
company’s 2025 revenue, relating to the sale of used consumer
electronics, has been identified as Taxonomy eligible in connection
with circular economy activities. However, the cumulative revenue from
these activities represents less than 10 percent of total revenue, which
is below the materiality threshold defined in the amending regulation.
Consequently, the company does not report the share of Taxonomy
eligible revenue on the basis of non-materiality.
The company reports the summary table required under Delegated
Regulation (EU) 2026/73 (Template 1). Revenue, capital expenditures
(CapEx) and operating expenditures (OpEx) are reported as non
Taxonomy eligible. Reported revenue is consistent with the consolidated
income statement and Note 7.2 of the consolidated financial statements.
Capital expenditures include additions to property, plant and equipment,
intangible assets and right of use assets during the financial year and
reconcile with the additions to right of use assets presented in Notes
7.13–7.15 of the consolidated financial statements.
EU Taxonomy Template 1: Proportion of turnover, CapEx, OpEx
from products or services associated with Taxonomy-eligible
or Taxonomy-aligned economic activities – disclosure covering
year 2025 (summary KPIs)
Financial year 2025
KPI
(1)
Total
(2)
Proportion
of Taxonomy
eligible
activities
(3)
Taxonomy
aligned
activities
(4)
Proportion
of Taxonomy
aligned
activities
(5)
Breakdown by environmental objectives
of Taxonomy aligned activities
Proportion
of enabling
activities
(12)
Proportion of
transitional
activities
(13)
Not assessed
activities
considered
non-material
(14)
Taxonomy
aligned activities
in previous
financial year
(2024)
(15)
Proportion of
Taxonomy aligned
activities in
previous financial
year (2024)
(16)
Climate
Mitigation
(6)
Climate
Adaptation
(7)
Water
(8)
Circular
Economy
(9)
Pollution
(10)
Biodiversity
(11)
EUR m % EUR m % % % % % % % % % % EUR m %
Turnover 526.5 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0 0%
CapEx 3.2 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0 0%
OpEx 6.7 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0 0%
34
REPORT OF THE BOARD OF DIRECTORS
E1 – Climate change
SBM-3 Material impacts, risks, and opportunities related to
climate change mitigation and energy, and their interaction
with strategy and business model
E1.2 Climate change mitigation
Impacts
Opportunities
and risks
Location in
the Value Chain
Management
The procurement and production processes of
raw materials are energy-intensive and cause
significant greenhouse gas emissions
None identified
The beginning of
the value chain
through business
relationships
• Commitment to Science based targets (SBTi)
• Climaterelated requirements for suppliers, including
encouraging them to commit to the SBTi initiative, to set
Science based targets for reducing GHG emissions and
to improve the availability of emissions data, as well as a
requirement to provide information on emissions and climate
targets upon request
• The right to prioritize and select suppliers who are committed
or are committing to the SBTi initiative, as stated in the supplier
guidelines
• Development of the company's own emissions calculation
• Solutions and business models aimed at extending product
life cycles
The transport of products at various stages
of the value chain causes greenhouse gas
emissions (negative actual impact).
None identified
The entire value chain
through business
relationships
• Collaboration with freight and distribution partners to reduce
logistics emissions
• Automation and route optimization
• Minimizing air freight
• Transitioning to renewable fuels in freight transport where
possible
E1.3 Energy
The energy consumption of electronic devices
during their use phase contributes to climate
change and increases greenhouse gas
emissions (negative actual impact)
None identified
End of value chain
• Offering energy-efficient products and developing product
information
•
Guiding customers in the selection and use of energy-efficient
products
IRO-1 Description of the process to identify and
assess material climate-related impacts, risks, and
opportunities
The company has assessed the material sources of emissions
throughout its value chain and identified the material emission categories
to be reported in collaboration with an external expert. The materiality
of emission sources is reviewed annually in connection with emission
calculations. With regard to climate change, the company assesses the
climate resilience of its own operations and the various stages of the
value chain from the perspective of the risks posed by the 1.5-degree
climate scenario. Based on the analysis, no material financial climate
risks have been identified, and the company therefore sees no need
to update its strategy in the 1.5-degree scenario. The risks have been
identified at a general level, and the company has not used a separate
method to identify risks in the climate resilience analysis.
Climate change resilience and scenario analysis
As part of the update of the 2025 double materiality analysis, the
company assessed climate risks in accordance with the 1.5-degree
climate scenario and the climate resilience of its own operations and the
various stages of the value chain from the perspective of the risks posed
by the 1.5-degree climate scenario.
The company determined whether the identified risks are physical
(acute or chronic) climate risks or transition risks (risks related to
regulation, technology, markets, or reputation). The company prepared a
management practice for each climate risk. The time frame of 0–5 years
and the scope covering the entire value chain were consistent with the
double materiality analysis. The company has not identified any material
financial risks or opportunities related to climate change and does not
report on them in its financial reporting.
According to the company's assessment, the physical risks related
to climate change mainly occur at the beginning of the value chain.
Physical risks may occur, for example, as a result of extreme weather
events, which may cause disruptions in the supply chain and require rapid
35
REPORT OF THE BOARD OF DIRECTORS
response measures. Transition risks may arise in connection with supplier
management, for example, as regulations become stricter. The company
estimates that its own operations are not significantly exposed to extreme
weather events caused by climate change due to their location, so physical
risks related to climate change were assessed as not material to its own
operations. Extreme weather events pose physical risks to the production
and transportation of products sold at the beginning of the value chain.
Transition risks were identified in the challenges faced by suppliers in
adapting to emission reduction targets and changing legislation. These
risks were nevertheless assessed as not material, due to the company’s
broad product assortment and its extensive supplier and partner network,
which is spread across multiple geographical regions, providing resilience
also in other areas of the upstream value chain. In addition, the company’s
risk management includes preparedness for supply chain disruptions
by securing alternative partners and transportation routes for potential
contingency situations.
The company estimates that there are uncertainties associated with
the identified risks and that conducting a broader climate scenario
analysis could lead to the identification of potential new climate risks or
a reassessment of the materiality of existing risks. The company reviews
climate risks annually as part of its double materiality assessment and
makes changes as necessary. The scope of possible future resilience
and scenario analyses will also be assessed considering possible
changes in legislation and standards.
E1-1 Transition plan for climate change mitigation
The company considers that it has succeeded in its goal of reducing
its own emissions in Finland to zero by the end of 2025 and therefore
sees no need to draw up a transition plan in this respect. The company
plans to draw up a transition plan or climate roadmap for climate
change mitigation once it has obtained validation for its climate targets,
confirming that they are in line with the Paris Agreement and the EU's
climate targets. The implementation method and scope of the plan will
also be assessed in the future considering possible changes in legislation
and standards.
E1-2 Policies related to climate change mitigation and
adaptation
The company's Operating practices and principles, including Guidelines
on environmental impacts, are described in the company's Code of
Conduct. The company's Operating principles related to climate change
mitigation, energy efficiency, and the adoption of renewable energy are
specified in the company's Environmental Policy.
The key content of the Environmental Policy with regard to climate
change covers the commitment to the goals of the international
climate conference. The company conducts an annual carbon footprint
calculation covering the entire value chain and develops its emissions
calculations in order to be prepared to set absolute emissions reduction
targets.
In its Environmental Policy, the company is committed to reducing
emissions from its own operations by investing in energy efficiency,
primarily by purchasing electricity, heating and cooling energy produced
from renewable energy and promoting the use of renewable energy in
the properties it leases.
In addition, the company is committed to reducing logistics emissions
in cooperation with its freight and distribution partners, minimizing air
freight shipments, and switching to renewable fuels for freight transport
whenever possible.
Requirements concerning climate and energy issues for suppliers were
specified during the reporting year and are expressed in the company's
Supplier Code of Conduct. The company encourages its suppliers to
commit to the SBTi initiative to set their own science-based targets for
reducing greenhouse gas emissions and to improve the availability of
emissions data. Failure to commit may affect the selection of suppliers,
the continuation of cooperation, or the renewal of contracts. Suppliers
should seek ways to reduce their energy consumption and greenhouse
gas emissions and favor the use of renewable energy where possible.
The scope, responsibilities, and availability of the company's policies
are presented in the section MDR-P Policies adopted to manage material
sustainability matters.
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REPORT OF THE BOARD OF DIRECTORS
E1-3 Actions and resources in relation to climate change
policies
Emissions reduction method Action Time horizon Scope
GHG
Scope
Achieved or anticipated greenhouse gas
emission reduction
Transition to emission-
free energy sources
Procurement of renewable
electricity, district heating,
and district cooling
2021–2025 Own operations in Finland 1 and 2
Achieved: emissions have decreased by 99%
(-571 tCO
2
e) compared to the baseline year
2019
Information on the distribution of the
reductions at the activity or measure level is
not available
Improving energy
efficiency
Switch to LED technology
Implementation of an
energy management
system
Engaging suppliers and
partners in emission
reduction
Engaging suppliers and
partners in climate targets
2024–2028
Suppliers at the beginning of
the value chain and partners
worldwide
3
Information on the distribution of the
reductions has not been assessed
Other actions
Discontinuation of regular
advertising leaflet from
the beginning of 2025
2021–2025 End of the value chain 3
Emissions have decreased by 98% (-1,211
tCOe) compared to the 2021 baseline year,
when the emissions from the advertising
leaflet were 1,237 tCOe
The company reports on indirect scope 3 emission reductions to the extent available
Actions to reduce emissions from own operations
During the reporting year, the company continued to implement its
Environmental Policy to reduce emissions from its own operations. All
purchased electricity, district heating, and district cooling used in the
company's operations in Finland will be emission-free from summer
2025 onwards. The electricity purchased by the company itself was
EPD-certified electricity produced from renewable energy. The company
is committed to purchasing solar power at those locations where it is
available. From the beginning of 2025, the company's cooling will be
produced using renewable energy sources. The company is constantly
looking for ways to improve energy efficiency.
Actions to reduce indirect emissions
The company aims to reduce indirect emissions in the value chain by
engaging suppliers and partners in emission reduction efforts. In early
2025, the company committed to science-based climate targets (SBTi),
which the company believes will support its ability to achieve its goal.
The company has not yet specified measures to reduce emissions or
means of decarbonization.
During the reporting year, the company conducted a study on
its suppliers' commitment to SBTi -climate targets and developed
its capacity to collect supplier- and brand-specific data, thereby
strengthening its capabilities for implementing, monitoring, and
reporting on SBTi -targets. During the reporting year, the company
prepared for the start of the validation process for its climate targets. The
company updated its Supplier Code of Conduct, including requirements
for suppliers regarding climate and energy issues.
During the reporting year, the company continued its development
work to refine its emissions calculations and set absolute emissions
targets. The company's goal is to refine its calculations and make
the emissions caused by product manufacturing visible in product
information, which requires better availability of product-specific
emissions data. The company has not yet set an absolute target for
reducing indirect scope 3 emissions, as the company's emissions
calculation is currently based largely on estimates. In 2025, the
company's scope 3 emissions increased by 23% from the previous year
and amounted to 212,993 tCO
2
. The increase in emissions was due to
growth in revenue, particularly from increased sales of televisions and
computers.
Resources for climate change mitigation
Working time has been allocated within the procurement, logistics
and sustainability functions to prevent and mitigate the negative
environmental impacts of the company’s own operations and value
chain. The implementation of the planned development measures
did not result in significant capital expenditures (CapEx) or operating
expenses (OpEx) during the reporting year, and no separate CapEx plans
have been prepared for emission reduction measures. The medium-term
resources are planned to be further specified in accordance with the
timetable described in section E1-1 Transition plan for climate change
mitigation.
The company does not have significant greenhouse gas or energy-
intensive assets that would cause greenhouse gas emissions lock-in and
transition risk for achieving emissions reduction targets.
37
REPORT OF THE BOARD OF DIRECTORS
E1-4 Targets related to climate change mitigation and
adaptation
Target KPI
Result
2025
Target
result
Target
year
Reducing emissions
from own operations
(scope 1 and 2)
1
Greenhouse gas
emissions, tons of
CO
2
e (scopes 1 and 2)
Q1–Q2:
6 tCOe
Q3–Q4:
0 tCOe
0
2025
Enganing supliers
and partners in SBTi
targets, 78% in terms of
emissions by 20303
Share of partners
committed to SBTi
targets, measured in
emissions
N/A
2
78%
3
2030
1
For domestic operations
2
The company plans to start KPI reporting in 2026
3
The target set is preliminary. The final formulation of the target requires validation by the SBTi
organization to ensure that the target is sufficient from the perspective of the 1.5°C climate
scenario.
Additionally, the company believes that its circular economy targets
help manage the negative impacts related to climate change, as
extending product lifecycles reduces the need for manufacturing new
products, thereby reducing greenhouse gas emissions from raw material
procurement and production processes. The circular economy targets
and progress in them are described in section E5 – Resource Use and
Circular Economy.
Progress towards targets
The company's own emissions decreased by 79% from the previous year
and were minimal, 6 tCOe , which according to the Finnish Environment
Institute corresponds to the average annual emissions of approximately
one Finnish person. These emissions have decreased by 99% compared
to the reference year 2019. The company's domestic operations did
not generate any emissions in the second half of the reporting year.
The company considers that it has succeeded in its goal of reducing
its domestic emissions to zero by 2025. During the reporting year, the
company strengthened its capabilities to report on the achievement of
its climate goals for the value chain starting in 2026.
MDR-T Tracking effectiveness of policies and actions through
targets
The company's greenhouse gas emission reduction target for its
own operations is absolute and applies to the company's domestic
operations. The reason for this limitation is that the target was set before
the company's foreign operations were acquired and the emissions from
these operations are negligible. The target is compared to the base year
2019, when the company began calculating emissions and when the
company's market-based emissions from its own operations were 581
tCO2e. The target does not specify separate reduction percentages for
scope 1 or scope 2 emissions. Section E1-6 reports the company's scope
1 and scope 2 emissions globally, with a base year of 2024.
The value chain target is relative and covers the company's indirect
emissions from products sold and their transportation globally. The
company plans to start KPI reporting in 2026. No separate base year or
value has been defined for the value chain target. Critical assumptions
regarding greenhouse gas emission reduction targets consider that
growth in sales volumes will increase total emissions.
The targets were set based on the views of stakeholders on the
impacts of climate change and considering the key expectations
of customers and suppliers, as described in the table Stakeholder
engagement.
The company has not specifically assessed how the targets consider
the broader context of sustainable development or the local situation in
the area affected.
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REPORT OF THE BOARD OF DIRECTORS
E1-5 Energy consumption and mix
Energy consumption and mix 2024
1
2025
Consumption of fuel derived from coal and coal products
(MWh)
2
0 0
Consumption of fuel derived from crude oil and oil products
(MWh)
2
7 4
Fuel consumption from natural gas (MWh)
2
0
0
Fuel consumption from other fossil sources (MWh)
2
0 0
Consumption of purchased or acquired electricity, heat,
steam, and cooling from fossil sources (MWh)
383 75
Total fossil energy consumption (MWh) 390 79
Share of consumption from nuclear sources of total energy
consumption (%)
6% 1%
Consumption from nuclear sources (MWh)
886 201
Share of consumption from nuclear sources of total energy
consumption (%)
14% 4%
Fuel consumption for renewable sources, including biomass
(also comprising industrial and municipal waste of biological
origin, biogas, renewable hydrogen, etc.) (MWh)
0 0
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources (MWh)
4,939 5,451
The consumption of self-generated non-fuel renewable
energy (MWh)
0 0
Total renewable energy consumption (MWh) 4,939 5,451
Share of renewable sources of total energy
consumption (%)
79% 95%
Total energy consumption (MWh)
6,215
5,731
1
The consumption data for 2024 has been adjusted retrospectively based on more accurate
information obtained later, and some of the energy consumption data has been specified in
accordance with the original guarantee of origin certificate.
2
The company will report a breakdown of its consumption of different fossil fuels for the first
time in 2025. The data for 2024 has been reported retrospectively.
Energy intensity per net revenue 2024 2025
Total energy consumption from activities in high climate
impact sectors per net revenue (MWh)
6,215 5,731
Energy intensity (MWh/thousand euros) 0.013 0.011
Net revenue used to calculate energy intensity
(thousand euros)
467,829 526,489
Total net revenue (in the financial statements) 467,829 526,489
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REPORT OF THE BOARD OF DIRECTORS
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Retrospective Milestones and target years
2
Base year
(2024)
Comparative
2024 2025
Year-
on-year
change (%) 2025 2030 2050
Annual %
target /
Base year
2
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
eq)
1
2 2 1 -42% 0 0 0 N/A
Percentage of Scope 1 GHG emissions from regulated emission trading
schemes (%)
0 0 0 N/A 0 0 0 N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 176 176 263 49% N/A N/A N/A N/A
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 38 38 12 -69% 0 0 0 N/A
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions (tCO
2
-eq)
172,765
172,765
212,993
23%
N/A
N/A
N/A
N/A
1 Purchased goods and services 145,283 145,283 183,370 26% N/A N/A N/A N/A
2 Capital goods 0 0 45 N/A N/A N/A N/A N/A
3 Fuel and energy-related activities (not included in scope 1 or scope 2
emissions)
215 215 274 27% N/A N/A N/A N/A
4 Upstream transportation and distribution 1,114 1,114 1,031 -7% N/A N/A N/A N/A
5 Waste generated in operations 33 33 14 -57% N/A N/A N/A N/A
6 Business traveling 125 125 104 -16% N/A N/A N/A N/A
7 Employee commuting 240 240 276 15% N/A N/A N/A N/A
9 Downstream transportation 2,047 2,047 2,234 9% N/A N/A N/A N/A
11 Use of sold products
1
23,137 23,137 25,565 10% N/A N/A N/A N/A
12 End-of-life treatment of sold products 571 571 80 -86% N/A N/A N/A N/A
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
-eq) 172,941 172,941 213,256 23% N/A N/A N/A N/A
Total GHG (market-based) (tCO
2
eq) 172,803 172,803 213,005 23% N/A N/A N/A N/A
1
Emissions data for 2024 has been adjusted to ensure comparability. Further details are provided in section E1 – Indicator development principles.
2
The reporting schedule and monitoring of emission targets are presented in section E1-4 Targets related to climate change mitigation and adaptation.
GHG intensity per net revenue 2024 2025
Total GHG emissions (location-based) per net revenue (tCO
2
-eq./thousand euros)
1
0.37 0.41
Total GHG emissions (market-based) per net revenue (tCO
2
-eq./thousand euros)
1
0.37 0.40
Net revenue used to calculate GHG intensity (thousand euros) 467,829 526,489
Total net revenue (in financial statements) 467,829 526,489
1
The baseline year intensity figures have been restated based on the updated 2024 emissions data
E1 – REPORTING PRINCIPLES FOR METRICS
The company's operations are classified under industry category G,
Wholesale and retail trade, which is one of the industries with a significant
impact on the climate.
Energy consumption
The company reports purchased electricity, heating and cooling
for all its locations, excluding the Hong Kong office, which has two
employees and is considered not material. The company does not itself
produce electricity, heat, or cooling. Data on purchased electricity,
heating, and cooling is collected from meters at the company's
locations, and details as well as energy sources , are obtained directly
from the electricity suppliers' online portals or from reports provided
by property representatives, and for the operations in China, from
invoices. The company does not have a reporting system for calculating
energy consumption. The share of renewable energy is calculated by
dividing the amount of energy from renewable sources by total energy
consumption.
The consumption data for 2024 has been adjusted retrospectively
based on more accurate information obtained, and some of the energy
consumption data has been specified in accordance with the original
guarantee of origin certificate. The adjustments have no impact on the
company's emissions. The share of renewable electricity purchased by
the company in 2024 was 95% instead of the previously reported 100%.
The share of renewable energy in total consumption was 81% instead of
the previously reported 83%. The share of energy from nuclear sources
in total consumption was 14% instead of the previously reported 12%.
Estimations in energy consumption data and possible limitations
of calculation principles
In locations where energy consumption data pertains to the entire
property or shopping center, and the company only rents a part of the
property, the company’s share of energy consumption is calculated
based on the rented square meters. The data for rented square meters
is provided by property representatives. If data for a specific month is
40
REPORT OF THE BOARD OF DIRECTORS
unavailable from the supplier or online portals, consumption is estimated
based on the data available from the previous or following month.
The share of renewable electricity is based on guarantee of origin
certificates. If the electricity’s origin is not specified in the guarantee
of origin certificates, or if its origin cannot otherwise be verified, it is
assumed that no renewable electricity is used.
The underlying assumption for the electricity consumption metrics
is that the data collected from portals and suppliers is comprehensive,
realistically representing the company’s energy consumption and origin.
However, the company acknowledges that there may be uncertainties in
the data.
Emissions calculation
The company's greenhouse gas emissions are calculated in accordance
with the Greenhouse Gas (GHG) Protocol. The reporting scope is based
on operational control and includes all the Group's locations except for
the Hong Kong office, which has two employees and is considered not
material. The reporting covers direct greenhouse gas emissions (scope
1), indirect emissions from the purchase of electricity, heating, and
cooling (scope 2), and indirect emissions that occur in the value chain
(scope 3).
The company reports emissions in carbon dioxide equivalents (CO
2
e).
A carbon dioxide equivalent is a common unit that refers to different
greenhouse gases included in the GHG Protocol (CO
2
, CH
4
, N
2
O, HFCs,
PFCs, SF
6
, and NF
3
).
The company does not have a separate reporting system for
calculating scope 1, 2, or 3 emissions.
99.78% of Scope 3 emissions are calculated based on primary
data, such as sales volumes, supplier reports, and data obtained from
company’s own systems. Only 0.25% is based on secondary data,
such as estimates in euros. Despite the high share of primary data,
uncertainties remain in the calculations, as the emission factors are
defined at the main category level and may not accurately reflect the
emissions of individual products. The calculation provides a good overall
picture, but it may not capture the actual emissions of specific products,
which highlights the need for further development work in the future.
In 2025, the company updated its emission factors to refine the
calculation and improve reliability. Some of the factors have been
changed from a quantity-based factor to a mass-based factor, which
increases the accuracy of the calculation but affects the comparability of
the figures. As a result of the update, waste emission factors decreased
significantly, which led to a significant reduction in emissions related to
the company's waste and the end-of-life of sold products compared to
the previous year (categories 5 and 12).
Direct greenhouse gas emissions (scope 1)
Scope 1 emissions cover all the company’s direct greenhouse gas
emissions. Direct carbon dioxide emissions occur only at the Helsinki
location, which has a backup generator and sprinkler system that
require fuel replenishment approximately every other year (stationary
combustion). Emissions are calculated by multiplying the amount of
fuel purchased during the year in liters by the emission factor specific
to the type of fuel. The emission factor is based on the emission factor
for light fuel oil according to the fuel classification of Statistics Finland.
The company does not have biogenic Scope 1 carbon dioxide emissions.
In addition, the company had one vehicle in use, which was sold in the
summer of 2025. The vehicle's emissions were not taken into account in
the 2024 Sustainability statement. The emissions caused by the vehicle
have been taken into account in the 2025 calculation and also adjusted to
the 2024 data to ensure comparability. The scope 1 emissions reported
in the 2024 Sustainability statement were 1 tCOe. The adjusted scope 1
emissions were 1.6 tCOe. The impact on total emissions was minor.
Carbon dioxide and other greenhouse gas emissions from emissions
trading systems are not included in Scope 1 emission calculations, as the
company does not have such operations.
Indirect greenhouse gas emissions (scope 2)
Scope 2 emissions include indirect greenhouse gas emissions from
the production of purchased electricity, heating, and cooling. The
company does not produce electricity, heat, or cooling itself. Scope 2
emissions are calculated using the amount of purchased electricity (in
megawatt-hours) and regional emission factors. The regional emissions
of purchased electricity are calculated using the average emission
factor for electricity produced in Finland (Fingrid) and the emission
factor for electricity produced in Guangdong province for the China
office. All electricity purchased for operations in Finland is emission-
free. The electricity used at the Helsinki, Raisio, and Pirkkala offices
is produced from 100% renewable energy. The electricity used at the
Oulu site is produced using hydro and nuclear power, the proportions
of which vary from year to year, with the final distribution determined
retrospectively once all production and consumption data has been
checked at the end of the year. In 2025, the distribution was 67% nuclear
power and 33% hydropower. The purchased thermal energy is district
heating produced with renewable energy at the Helsinki, Raisio, and
Oulu sites. Heat production at the Pirkkala site has been partly based
on conventional district heating, but from June 2025, the site will switch
entirely to renewable district heating. The Helsinki site uses district
cooling produced from renewable energy. When calculating heating and
cooling, region-specific emission factors reported by energy companies
or municipalities are used where necessary, corresponding to the type of
heating used at the site. The company does not have biogenic Scope 2
carbon dioxide emissions.
Indirect greenhouse gas emissions (scope 3)
Scope 3 emissions are reported on the basis of the GHG Protocol and
are based on 15 subcategories, which the company reports as follows:
Category 1: Emission calculations are based on the Average-data
method defined by the GHG Protocol, where the quantity or mass of
products at the combined category level is multiplied by the product-
specific emission factor. The quantities and masses of sold products are
based on data from the Group’s internal systems. Additionally, emissions
from packaging materials are considered in this category. Emissions
from packaging materials are calculated by multiplying the kilograms of
materials bymaterial-specific emission factors. Packaging material data
from the largest suppliers is obtained from supplier reports. Emissions
from smaller suppliers are estimated based on costs.
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REPORT OF THE BOARD OF DIRECTORS
Category 2: This category includes greenhouse gas emissions from the
procurement of materials for physical capital investments during the
reporting year. The materiality of the category is reviewed annually. In
2024, there were no significant investments in this category. In 2025, the
investments included a pallet conveyor and transport chute introduced
by the company. The emission calculation for the investment is based
on the material quantities provided by the supplier, multiplied by the
applicable emission factors for each material type.
Category 3: The calculation is based on fuel and energy-related
activities, including the extraction, production, and transportation of
energy sources used by the organization. Emissions are calculated using
actual fuel consumption and heating consumption (collected for scope 1
and 2 emissions). The company uses national average emission factors
published in Finland for upstream and transmission losses in electricity
and district heating. Electricity calculations are based on real-time values
from Fingrid and the Energy Authority, and district heating calculations
are based on Statistics Finland and industry average production and
transmission loss factors.
Category 4: Calculation is based on the delivery date, and reported
emissions are mainly based on emission reports submitted by the largest
suppliers. All transports carried out under the company's own transport
agreements have been taken into account in the emission calculation.
Emissions from transports for which suppliers are responsible have been
estimated based on transport costs. The calculation does not cover
transports for which the suppliers are responsible in cases where the
share of transports has not been specified in the invoicing. Emissions in
this category have been calculated in essence using emission factors
that comply with the well-to-wheel (WtW) principles.
Category 5: Emissions from the company's waste are mainly based
on reports obtained from portals maintained by external operators and
from property representatives. The underlying assumption is that the
information collected from the portals and suppliers is comprehensive
and represents the company's waste data realistically. If emission data
is not available from a site, it is calculated by multiplying the amount of
waste generated (in tons) by Defra's (UK Department for Environment,
Food and Rural Affairs) waste category-specific emission factors.
Category 6: Emissions are calculated based on flights, train and taxi
journeys, mileage allowances, and hotel stays recorded in the company's
travel expense system. Emissions are determined by multiplying the
length of the journeys and the number of hotel stays by Defra's emission
factors.
Category 7: The calculation is based on estimates of the distance
traveled and the mode of transport (e.g., car, bus, or subway). The data
is collected by distributing a survey to Finnish employees annually,
and the data is extrapolated to cover all Finnish employees, taking into
account the proportion of the workforce that has the opportunity to work
remotely. Emissions from car travel are calculated using Defra emission
factors, which follow the well-to-wheel (WtW) principle.
Category 9: Based mainly on emission reports from major suppliers.
Emissions in this category are essentially calculated using emission
factors that comply with well-to-wheel (WtW) principles.
Category 11: The calculation is based on estimates of the annual
electricity consumption and life cycle (3–10 years) of consumer
electronics products sold. Emissions are calculated using the emission
factor for electricity produced in Finland (Fingrid).
In 2025, the company refined the data sources it uses and the
estimated energy consumption data for some of its products. To ensure
comparability, the company adjusted the comparative data for 2024.
As a result of the adjustment, the emissions reported in category 11
decreased by 49%, totaling 22,119 tons. The emissions reported in
category 11 in the 2024 Sustainability statement were 45,257 tCOe. The
adjusted category 11 emissions were 23,137 tCOe. The impact on the
company's total emissions was -11%. The total location-based emissions
reported in the 2024 Sustainability statement were 195,061 tCOe.
Adjusted total emissions were 172,942 tCOe. Adjusted total emissions
also take into account the adjustment of scope 1 emissions.
Category 12: The calculation is based on the estimated disposal and
recycling of products sold (in kilograms) during the reporting year.
Various emission factors from Defra and ADEME (French Agency
for Ecological Transition) are used to calculate emissions for waste
categories: energy, WEEE (Waste Electrical and Electronic Equipment),
paper, cardboard, and plastic.
Materiality of Scope 3 categories and Estimations in emission
data and possible limitations of calculation principles
Based on the company's materiality assessment of Scope 3 emissions,
subcategories 8, 10, and 13–15 were not material to the company
during the reporting period. The company does not have any significant
owned or leased assets that are not included in the scope 1 and scope
2 calculations. The company's products are ready for use without
further processing or refining. The company does not have franchising
operations. The company does not own investments that should be
included in the scope of category 15.
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REPORT OF THE BOARD OF DIRECTORS
E2 – Pollution
SBM-3 Material impacts, risks, and
opportunities related to pollution
E2.1–3 Pollution of air, water, and soil
Impacts
Opportunities
and risks
Location in
the Value Chain
Management
Hazardous chemicals and heavy metals used
in raw material sourcing and production pollute
the air, water, and soil (negative actual impact)
None identified
Beginning of
the value chain
through business
relationships
• Environmental practice requirements for suppliers, including
the requirement to consider environmental aspects in the
supply chain
• Environmental aspects considered as part of audits for private
label suppliers
Toxic substances in electrical and electronic
waste at the end of the value chain increase the
risk of hazardous substances ending up in water
and soil if end users do not dispose of products
properly (negative actual impact)
None identified
End of the value chain
through business
relationships
• Guiding and encouraging customers to recycle properly
• Accepting waste electrical and electronic equipment (WEEE),
batteries, and accumulators beyond producer responsibility
requirements
• Implementing due diligence in selecting recycling partners
• Solutions and business models aimed at extending product
life cycles
IRO-1 Description of the processes to identify and
assess material pollution-related impacts, risks, and
opportunities
Actual and potential impacts, risks, and opportunities related to pollution
were identified by screening the company's assets and operations
across the value chain to the extent that the company has visibility. The
screening did not include fieldwork.
E2-1 Policies related to pollution
The company's environmental impact guidelines are described as part of
the company's Code of Conduct. The principles related to environmental
pollution are specified in the company's Environmental Policy and
Supplier Code of Conduct.
In accordance with its Environmental Policy, the company is
committed to protecting the environment and preventing air, water,
and soil pollution at the beginning and end of the value chain. The
company's identified material impacts related to pollution concern the
beginning and end of the company's value chain, not the company's own
operations.
The Supplier Code of Conduct specifies the requirements set for
suppliers regarding chemicals and hazardous substances, emissions,
and wastewater, the requirement to develop and implement procedures
and practices for handling air, water, and soil pollution, the requirement
to commit to the environmental requirements of the Amfori BSCI Code of
Conduct, and to consider environmental aspects in the supply chain as
well. The company’s operating principles regarding pollution generally
consider mitigating, preventing and limiting the negative impacts of air,
water and soil pollution at the beginning and the end of the value chain,
including the substitution and minimization of substances of concern
in accordance with EU chemical legislation. The principles do not
specifically mention the elimination of substances of very high concern
or the prevention of incidents and emergencies, but managing and
limiting impacts on people and the environment regarding environmental
impacts is part of the policy. The company's operating principles
regarding pollution do not include information on contaminants or
substances of particular concern.
Suppliers are a key stakeholder group in relation to these principles.
Their interests have been taken into account in that Amfori BSCI has
involved stakeholders in the development of the Amfori BSCI Code of
Conduct, which are included in the Supplier Code of Conduct and on
which the company's operating principles regarding pollution are based.
The scope, responsibilities, and availability of the company's policies
are presented in the section MDR-P Policies adopted to manage material
sustainability matters.
E2-2 Actions and resources related to pollution
Action Time horizon Scope Expected outcome
Preparing the
company’s
Environmental Policy
in 2024 and its
implementation
2024–2028
Own activities and
value chain globally
Management of
negative impacts
related to pollution
Instructing
customers on the
proper disposal of
products
2024–2028
Own operations and
end of value chain
Management of
negative impacts
related to pollution
The company recognizes that negative environmental impacts, such as
environmental pollution, arise at the beginning of its value chains, and
they need to be addressed by raising awareness and finding ways to
influence them. The company has not developed an action plan and does
not currently plan actions to prevent pollution. Instead, the company
focuses its resources on advancing other environmental targets.
Procedures to prevent and mitigate the value chain’s negative
environmental impacts is carried out as part of procurement and logistics
planning, with time allocated to these functions within the purchasing,
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REPORT OF THE BOARD OF DIRECTORS
logistics and sustainability organizations. The company has not yet
allocated significant human or financial resources specifically to pollution
control.
The company monitors the implementation of environmental
requirements set for suppliers through audits of its private label
suppliers that are essentially social responsibility audits but which
include an overview of environmental practices, such as procedures for
identifying environmental impacts, compliance with local environmental
legislation, environmental permits and licenses, water use, and waste
management in a way that does not cause environmental pollution.
The impacts related to the end of the value chain, i.e. the disposal of
electronic devices, are managed by guiding and encouraging customers
to properly recycle electrical and electronic equipment, batteries, and
hazardous substances, and by receiving electronic waste (WEEE),
batteries, and accumulators in accordance with and exceeding producer
responsibility, also offering the possibility to recycle large household
appliances without an obligation to purchase. The company exercises
due diligence in selecting recycling partners to ensure that recycling is
carried out in compliance with requirements.In addition, the company
offers circular economy services with the aim of extending the life cycle
of functional electronic equipment and preventing premature disposal of
products. To support the prevention of pollution at the end of the value
chain, the company ensures the safe handling, storage, and disposal of
chemicals, hazardous substances, and waste in its own operations.
Instructing customers on the proper disposal of products – actions
and resources 2025
During the reporting year, measures were implemented to develop the
skills of all personnel in promoting the appropriate and safe recycling
of electrical and electronic waste (WEEE) and hazardous waste. The
company's WEEE guidelines were updated, online training was provided
for personnel, and the topics were communicated through internal
channels. In addition, responsibilities were clarified with regard to the
subject. The aim of these measures is to ensure the correct sorting of
equipment and hazardous waste that is disposed of from the company's
own operations and returned by customers, and to strengthen the
capabilities of store personnel in particular in providing guidance to
customers. The implementation of the planned development measures
did not result in significant capital expenditure (CapEx) or operating
expenditure (OpEx) during the reporting year, and no separate CapEx
plans have been drawn up for the measures.
E2-3 Targets related to pollution
The company has not set specific targets for the prevention of pollution
of air, water, and soil in accordance with ESRS standards. For the time
being, the company does not monitor the effectiveness of its operating
principles in relation to material sustainability impacts, risks, and
opportunities concerning pollution. The company does not plan to
set targets for the 2024–2028 strategy period due to the difficulty of
measuring the impacts, as they are concentrated at the beginning and
end of the value chain. The company believes that promoting goals
related to climate change mitigation and the circular economy can
contribute to a more accurate understanding of the downstream value
chain and thus support the setting of pollution-related goals in the future.
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REPORT OF THE BOARD OF DIRECTORS
E5 – Resource use and circular economy
SBM-3 Material impacts, risks and opportunities
related to resource use and circular economy
E5.1 Resource inflows, including resource use
Impacts
Opportunities
and risks
Location in
the Value Chain
Management
Minimizing resource consumption in packaging
and other material use, and favoring recycled
materials reduces the use of primary resources
(positive actual impact)
None identified
Own operations
and the beginning
of the value chain
through business
relationships
• Policies and practices regarding packaging and material
choices
E5.2 Resource outflows related to products and services
Extending product life cycles by offering
circular economy products, services, and
solutions reduces the use of primary resources
(positive actual impact)
None identified
Own operations and
end of the value chain
• Offering used and refurbished consumer electronics products
as an alternative to purchasing new products
• Trade-in and buy-back services, sale of returned devices
through outlets, repair services, spare parts supply, extended
warranties, and development of new circular economy
services, provision of circular economy services online
Extending product life cycles through eco-
design reduces the use of primary resources
(positive actual impact)
None identified
Entire value chain
through own
operations and
business relationships
• Improving product durability, repairability, energy efficiency,
resource use, recycled material content, and recyclability
Minimizing packaging materials and optimizing
material recyclability reduces waste (positive
actual impact)
None identified
Own operations and
end of the value chain
• Minimizing the use of packaging materials
• Use of recyclable packaging materials
IRO-1 Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities
Actual and potential impacts, risks, and opportunities related to resource
use were identified by screening the company's assets and operations
across the value chain to the extent that the company has visibility. The
screening did not include fieldwork. The communities affected have not
been identified and therefore not consulted. With regard to the impacts
related to the circular economy, the review focused in particular on the
impacts arising from the company's own operations and was carried out
from the perspective of the product life cycle.
E5-1 Policies related to resource use and circular
economy
The company's guidelines concerning environmental impacts are
described as part of the company's Code of Conduct. The company's
operating principles related to resource use and the circular economy
are specified in the company's Environmental Policy and Supplier Code
of Conduct. The Environmental Policy guides the company's operations
in the management of material sustainability issues, which in this context
include resource inflows, including resource use, and resource outflows
related to products and services. The key content of the Environmental
Policy in terms of resource use and the circular economy is packaging
and material choices, the circular economy and extending product life
cycles, eco-design, and minimizing waste and directing it to reuse. The
more detailed content of the principles is presented by theme below.
The scope, responsibilities, and availability of the company's policies
are presented in the section MDR-P Policies adopted to manage material
sustainability matters..
Packaging and material choices
The company considers environmental impacts in its packaging
solutions, which include packaging for online and in-store purchases and
packaging materials for internal transportation. The use of packaging
materials is minimized, and over-packaging is avoided while ensuring
that the packaging protects the product to minimize product waste. The
company prefers renewable materials to plastic and recycled materials
to virgin materials. In terms of circular economy goals, recycled plastic
collected from consumers (post-consumer recycled) is considered the
primary option, with plastic made from industrial side streams (post-
industrial recycled) and recycled plastic from the pre-consumer stage
(pre-consumer recycled) as secondary options. The company favours
paper and cardboard with sustainability certificate. The company is
committed to reducing plastic shopping bags and does not use PVC
plastic. The company ensures that the materials it uses are recyclable
and develops its sorting instructions. Additionally, the company
sets environmental requirements for its suppliers regarding product
packaging, which are recorded in the Supplier Code of Conduct.
Circular economy and extending product lifecycles
In accordance with its Environmental policy, offering products and
services that promote the circular economy is an important part of the
company’s vision of creating the new normal for buying and owning. The
lifecycles of consumer electronics products are extended by offering
maintenance, repair, and trade-in services, for example, as well as spare
parts and refurbished products as an alternative to buying new products,
replacing the use of primary resources with secondary resources. As
an online retailer, the company’s goal is to move the circular economy
online, lowering the threshold for engaging in circular economy activities.
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REPORT OF THE BOARD OF DIRECTORS
Eco-design
the company’s goal is to consider eco-design principles in its selection,
including developing product durability, reparability, energy efficiency,
resource use, the proportion of recycled materials, and recyclability.
Additionally, the company sets requirements for its suppliers regarding
eco-design and lifecycle thinking in the supplier principles.
Waste minimization and steering towards reuse
the company optimizes its waste management according to the waste
hierarchy and helps its customers properly recycle devices that have
reached the end of their life to reuse valuable materials and safely handle
hazardous waste.
E5-2 Actions and resources in relation to resource use
and circular economy
Raportointivuonna Yhtiö laati ympäristöpolitiikan sisältäen linjaukset
koskien kiertotaloutta ja tuotteiden elinkaarien pidentämistä, pakkaus- ja
materiaalivalintoja sekä jätteiden minimointia ja ohjausta uusiokäyttöön.
Actions Time horizon Scope Expected outcome
Development of
packaging and material
choices as well as data
collection
2024–2028
Entire value
chain globally
Reducing the use of
virgin materials
Development of
circular economy
products and service
offerings
2024–2028
Entire value
chain globally
Double-digit annual
growth in the sales
of circular products,
services and solutions
Selling products that
customers actually
need, ensuring product
quality and developing
product information
2021–2028
Own operations
Keeping the product
return rate under 1%
Packaging and material choices – actions 2025
The company continued actions in line with the packaging and material
choice guidelines recorded in the Environmental policy by developing
the proportion and quality of recycled materials used in packaging.
These changes reduce the use of primary resources. The company's
paper consumption decreased by 332 tons from the previous year due
to the discontinuation of its regularly published advertising leaflet. As
a result of this change, the company's use of primary resources was
halved and the proportion of recycled materials increased by 43% to
70% in 2025.
The company continued its strategy of investing in fast deliveries,
which means increasing the share of deliveries which utilize automated
warehouse, packaging machine, and fast deliveries, which is expected
to reduce the use of packaging materials in the short, medium, and
long term. These practices apply to all customers and reduce the use of
primary resources.
The company is developing data collection related to packaging
materials to improve the reliability of information about the proportion of
recycled material.
Circular economy and extending product lifecycles – actions 2025
The company offers used products as an alternative to purchasing
new products. Used devices are offered to customers as part of the
company's normal selection, in addition to which products returned
by customers are sold at outlet stores and online outlet. During the
reporting year, the company continued to offer a range of used and
refurbished devices in the categories of laptops, desktop computers,
peripherals, tablets, phones, and audio. At the end of the year, new
computer peripherals, components, and audio products were launched,
availability was improved, and preparations were made for the expansion
of operations in 2026.
During the reporting year, the company continued to expand and
develop its trade-in service, which promotes the circular economy.
The service allows consumer customers to resell their functional used
electronic devices in exchange for credit. The service can be used
entirely online, which the company expects to lower the threshold
for putting functional used devices into circulation and promote
opportunities to extend the life cycles of electronic devices. During 2025,
the service covered phones, laptops, smartwatches, and tablets, as well
as cameras and photographic equipment from selected brands, which
were launched as a new category during the reporting year. At the end of
2025, the service was unavailable, except for cameras and photographic
equipment, due to a transfer of the financing service provider. The
service is being further developed to restore it to use. Demand and
sales for the buyback service offered to corporate customers grew
significantly, although its share of total business remained small. The
company continued to develop and expand the maintenance services
and spare parts supply for its private label products to new product
groups. The television maintenance business launched in the previous
year was expanded to full scale during the reporting year. Additionally,
preparations were made to launch a maintenance service for small
household appliances. Maintenance services are provided for the
company's private label phones, bicycles, electric bicycles, electric
scooters, and snow blowers, as well as washing machines, dishwashers,
and dryers in the Helsinki metropolitan area, Turku, and Tampere. These
measures support the circular economy and reduce the use of primary
resources in the value chain in the short, medium and long term.
Minimizing the return percentage – actions 2025
The company’s principle is to sell products that customers actually and
provide comprehensive product information to support purchasing
decisions while minimizing customer returns and waste. This principle
was upheld through internal communication, as part of the Code of
Conduct training, and by developing product information. During the
reporting year, product information management and PIM data quality
were improved. Development work will continue in 2026, and the
company expects that improved product information will help customers
find products that are even more suitable for them, which will also have a
positive impact on the number of product returns.
During the reporting year, the company's after-sales marketing
operations began a process improvement initiative, which uses
automation to improve, among other things, the processing time for
service cases and provide customers with better visibility into the
progress of the service process. The development work also reduces
manual work, enables the identification of potential operating errors and
the prevention of resulting maintenance, and guides the processing of
46
REPORT OF THE BOARD OF DIRECTORS
returns more efficiently. The development work is expected to reduce
product waste, speed up maintenance and return processing, and have a
positive impact on the return and maintenance rate.
Resourcing related to resource use and circular economy
One person-year was allocated in the reporting year to the continuous
development and integration of the “Vaihtokauppa” trade-in service into
a broader circular economy strategy.
In other respects, work related to resource use and the circular
economy to leverage the value chain’s positive environmental impacts is
carried out as part of procurement, indirect procurement, sales, logistics
planning, marketing and facility services, with time allocated to the task.
E5-3 Targets related to resource use and circular
economy
Target KPI indicator Result 2025 Target result Target year
Double-digit annual
growth in the sales
of circular products,
services and
solutions
Growth of total net
sales from circular
products and
services
1
+ 1%
> 10%
Continuous
annual
monitoring
Extending trade-in
service every year
to cover relevant
part of our HERO-
assortment by
2028
2
Annual growth
in the amount of
categories covered
with trade-in
service
+ 25%
Positive
growth
Continuous
annual
monitoring
Keeping product
return rate
Product return
rate (%) including
“change of minds”
0.7%
< 1%
Continuous
annual
monitoring
1
Growth in sales of circular economy products, services, and solutions, including sales of
refurbished products, trade-in and buyback services, outlet sales for categories B, C, and D,
product-as-a-service sales, repair services, extended warranties, and other circular economy
services not yet published
2
The HERO product range refers to a well-circulating and online-suitable product selection
of approximately 30,000 product codes defined in the company’s strategy. This range
supports the company’s customer value promise of fast deliveries and includes the company's
customers’ most desired products. The company's goal is to increase the share of the product
range covered by the exchange service each year and to develop the service so that the
product categories represented in the company's HERO range are covered by the trade-in
service by the end of 2028, where applicable. Suitability will be assessed on the basis of,
among other things, the aftermarketability of the product category. The company plans to
define the target in more detail in 2026 in connection with the relaunch of the trade-in service.
Progress in target
Sales of the company's circular economy products, services, and
solutions grew by 1%, falling short of the target of double-digit annual
growth. The achievement of the target was slowed down by challenges
related to the productization of refurbished products, a decline in outlet
sales in the early part of the year due to low customer return rates, and the
temporary closure of the trade-in service due to a corporate acquisition.
The company is preparing to strengthen the growth of circular economy
products, services, and solutions in 2026.
During the year, the company's trade-in service was expanded to
include cameras and photographic equipment.
In 2025, the company's return rate remained below 1% in line with its
target and was 0.7% (0.7).
MDR-T Tracking effectiveness of policies and actions through tar-
gets
The objectives are based on promoting the positive effects of resource
use and the circular economy.The goals related to growing the circular
economy business and the trade-in service are linked to increasing
product design based on the circular economy and minimizing primary
raw materials at the beginning of the value chain. The intended impact is
to reduce the need to manufacture new products by extending product
life cycles and building a functioning secondary market to encourage
circular economy-based product design. The targets are reported
starting in 2025 and the results will be compared to the previous year. No
separate base year or value has been defined for the targets.
The return rate target is related to resource use and circular economy
considerations at the beginning and end of the value chain, as well as
prevention at the waste hierarchy level. The intended impact is to support
the company's operating principle of selling products that customers
actually need and thus reducing customer returns and waste related
to so-called “change of minds”. The target is ongoing in nature and no
separate base year or value has been defined for it.
All the company's goals related to the use of resources and the circular
economy are set by the company itself and are not based on scientific
evidence. The targets are relative. The scope of the targets for growth
in sales of circular economy products, services, and solutions and for
the return rate covers the company's global sales. The target for the
coverage of the trade-in service applies to the company's operations in
Finland.
The return rate reported by the company covers product returns in
situations where the customer returns the product unused or after a
maximum trial period of 32 days. As part of its Sustainability program,
the company has changed the metric reported from the previous year,
when the company reported the total return rate including not only
so-called "change of minds” but also the proportion of service cases.
Going forward, the company will monitor the metrics separately due to
the different calculation methods used for each metric. The service rate
is calculated by comparing the proportion of service cases during the
warranty period to the number of units sold during the year. In 2025, the
company's service rate was 0.1%.
The objectives were defined based on the views of stakeholders on
the circular economy and considering the key expectations of customers
and suppliers, as described in the table Stakeholder interaction. The
company has not specifically assessed the consistency of the targets
with national, EU, or international policy objectives, nor how the targets
consider the broader context of sustainable development or the local
situation in the area affected.
The targets are voluntary and not required by law. The company does
not currently have any ESRS-compliant targets that address the increase
in the use of recycled materials, the sustainable procurement and use
of renewable resources, or waste management. On the other hand,
the company reports on actions in line with its Environmental Policy
to develop packaging and material choices related to the sustainable
procurement and use of renewable resources.
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REPORT OF THE BOARD OF DIRECTORS
E5-4 Resource inflows
Description of the company's material resource inflows
The resource inflows reported by the company are relatively minor:
The company's main business is retail, and the company does not have
its own manufacturing operations, so the company does not report
resource inflows related to the manufacture of products sold. The
company's significant resource inflows are therefore only packaging
materials, which are primarily used for packaging online purchases, and
paper used for advertising leaflets. The company's material resource
inflows do not include biological materials. Resource use is described in
more detail in the Actions and resources in relation to resource use and
circular economy.
Resource inflows (packaging materials and advertising leaflet)
The overall total weight, metric tons 2024 2025
Cardboard 194 216
Plastic
27
29
Paper
379
46
Total
599 291
The proportion of certified packaging material (FSC certification) was 2%
(3). The company received information about the proportion of certified
material from only one supplier.
Use of recycled components
2024 2025
Weight,
metric
tons
Percentage of total
resource inflows (%)
Weight,
metric
tons
Percentage of
total resource
inflows (%)
Recycled packaging
materials
159 27 215 74
The proportion of recyclable raw materials in packaging materials was
100%.
E5-5 Resource outflows
Waste streams relevant to the company's industry or operations include
wood waste, cardboard, and electronic waste. Wood waste consists of
pallets used in transport, which are directed for reuse but appear as a
significant waste stream due to their weight.
The company's core business is retail, and it does not have its own
manufacturing operations. Therefore, the company does not treat
the products it sells as resource outflows and does not report on the
expected sustainability of the products it places on the market relative to
the industry average, the reparability of the products, or the proportion of
recyclable materials in the products.
The company has the possibility to indirectly influence the lifecycle and
repairability of the products it places on the market. The use of resources
and measures to extend product lifecycles and promoterepairability are
described in more detail in the E5-2 Actions and resources related to
resource use and circular economy section.
Waste generated
Metric tons 2024 2025
Waste diverted from disposal 1,582 1,815
Waste directed to disposal
0
1
Waste generated 1,582 1,816
Summary
Total amount of waste
1,582
1,816
Total amount of hazardous waste 10 7
Total amount of non-recycled waste 110 122
Percentage of non-recycled waste
7% 7%
Waste diverted from disposal by recovery operation
Metric tons 2024 2025
Hazardous waste
Preparation for reuse
0
0
Recycling
0
0
Other recovery options 10
7
Total 10 7
Non-hazardous waste
Preparation for reuse
747
863
Recycling 715 824
Other recovery options
110
121
Total 1,572 1,808
Waste directed for disposal by waste treatment type
Metric tons 2024 2025
Hazardous waste
Incineration (without energy recovery) 0
0
Landfill
0
0
Other disposal operations
0
0
Total
0 0
Non-hazardous waste
Incineration (without energy recovery)
0
0
Landfill 0 0
Other disposal operations 0
1
Total
0 1
48
REPORT OF THE BOARD OF DIRECTORS
E5 – REPORTING PRINCIPLES FOR METRICS
Resource inflows – packaging materials
The data on packaging materials (in metric tons) is collected from the
company’s largest suppliers, covering an estimated 99% of all packaging
materials used. The data includes the amounts of materials reported by
the suppliers and the proportions of recycled materials.
The consumption of recycled materials in metric tons is calculated
based on the percentages reported by the suppliers from the total
material consumption for each material. If the supplier has not provided
information about the proportion of recycled materials, it is assumed that
the material does not contain recycled material.
The proportion of materials certified through packaging material
certification systems is based on information provided by the suppliers.
Potential limitations in packaging material calculation principles
The underlying assumption in the calculations is that the information
provided by the largest suppliers is comprehensive and realistically
represents the company’s use of packaging materials. In cases where
third-party data is unavailable, the missing information is primarily
estimated based on the data from the preceding or following month
to ensure comprehensive data. The company continuously strives to
improve the coverage and accuracy of data collection.
Resource outflows - non-hazardous and hazardous waste
The company's Wwaste management policy follows the waste hierarchy,
where the primary goal is to prevent waste generation, followed by
promoting the reuse and recycling of materials. The company's main
waste streams consist of ordinary waste generated at the premises, such
as cardboard and packaging materials, pallets used for transportation,
and electronic waste (WEEE) and batteries collected from all premises,
consumers, and maintenance operations, which are classified as
hazardous waste.
All waste generated at the company's premises is either recycled,
reused, or directed for energy recovery. No waste is sent to landfill. The
company does not produce or handle radioactive waste.
Potential limitations in waste accounting
Waste data is collected from portals maintained by external operators
and based on supplier reports. The weights of property waste, hazardous
waste, and WEEE (Waste Electrical and Electronic Equipment) are based
on actual weight measurements. Pallets are reported in units, with their
weight estimated in metric tons according to different pallet types.
In cases where third-party data is unavailable, missing information is
primarily estimated based on the data from the preceding or following
month to ensure comprehensive waste data reporting.
Hazardous waste is overseen in accordance with applicable laws
and environmental regulations.
The company’s total amount of non-recycled waste includes ordinary
waste directed to incineration for energy recovery. The company’s
recycling rate includes all other waste categories, including pallets.
Wooden pallets used in transport can be reused multiple times, and
as heavy material, they have a significant impact on the company’s
recycling rate.
The company's waste accumulation calculation is based on data
collected from portals and suppliers on property waste, pallets,
hazardous waste, and electronic waste (WEEE). This data is assumed
to be comprehensive and to represent the company's waste volumes
realistically. However, the company recognizes that the data may contain
uncertainties.
The waste volumes of the Oulu and Pirkkala offices have been
apportioned based on the floor area of the premises.
49
REPORT OF THE BOARD OF DIRECTORS
SOCIAL RESPONSIBILITY
S1 – Own workforce
SBM-3 Material impacts, risks and opportunities related
to own workforce
S1.1 Working conditions
Impacts Risks and opportunities Location in the Value Chain Management
Paying wages and providing employee benefits that
exceed industry standards enhance and maintain
employee satisfaction and well-being, and motivate
staff to work towards the company’s targets (positive
actual impact)
Providing opportunities for professional development through
skill enhancement can improve operational efficiency and reduce
costs (positive actual impact)
A motivated, skilled, and healthy workforce enables efficient
operations, thereby reducing costs, improving customer
satisfaction, increasing sales, and decreasing the likelihood of
disability pensions (positive actual impact)
Own operations • Employee training
• Mentoring program
• Regular goal and development discussions
• Internal career paths
• Coaching leadership
Work accidents and sick leaves can increase operational costs
(negative actual impact)
Own operations • Coaching leadership
• Paying wages above the retail sector’s collective agreement rates, including
the company’s own 6.67% bonus, paying the capital city wage level
throughout Finland, and practices favorable to employees regarding annual
raises and training
• Comprehensive employee benefits
• Monitoring sick leave, regularly assessing safety risks and hazards with the
occupational safety representative
• Training supervisors in safety management
The lack or insufficiency of sustainable and responsible HR
practices can increase employee turnover, which may raise costs,
complicate recruitment, and damage the brand (potential negative
impact)
Own operations • Consistent and robust HR practices
• The company’s values defined together with employees and fostering a
responsible organizational cultureEmphasizing equality
S1.2 Equal treatment and equal opportunities for all
Opportunities for professional development increase
commitment, the sense of meaningful work, and
well-being at work for example through perceived
competence(positive actual impact)
A motivated, skilled, and healthy workforce enables efficient
operations, thereby reducing costs, improving customer
satisfaction, increasing sales, and decreasing the likelihood of
disability pensions (positive actual impact)
Own operations • Employee training
• Mentoring program
• Regular goal and development discussions
• Internal career paths
• Coaching leadership
Prohibiting discrimination reduces all forms of
harassment, bullying, and discrimination (positive actual
impact)
Own operations • Prohibition of discrimination in Code of Conduct and Personnel policy
• Internal personnel development plan to promote and maintain equality and
equity
• Role classification system based on job demands
• Anti-discrimination recruitment practices and supervisor orientation
• Diversity working group activities
50
REPORT OF THE BOARD OF DIRECTORS
IRO-1 Process to identify and assess material impacts,
risks, and opportunities related to own workforce
The company employs people in sales and logistics positions as well as in
office work. In its double materiality analysis, the company has assessed
the impacts, risks, and opportunities related to its own workforce,
including significant risks related to forced labor and child labor, focusing
on all employee groups in all employment relationships. The results apply
to the entire workforce, and the analysis did not identify any impacts,
risks, or opportunities specific to any particular employee group. The
company assesses the negative impacts on employees, its locations and
job functions by conducting regular statutory workplace surveys and
risk and hazard assessments, as well as employee surveys, the results of
which are reviewed at the company level and by department.
The risks facing the company's own workforce are related to the
company's dependence on the well-being and work input of its
workforce. It has been identified as a risk that if workforce practices are
inadequate, this may result in significant financial risks.
The positive impacts related to the company's own workforce
are primarily related to the achievement of the company's strategic
objectives, but not directly to the company's operating model. The
company has not identified any material impacts, risks, or opportunities
related to forced labor or child labor in connection with the company's
operations or type of business. The company's operations are mainly
located in Finland, and the company has no significant operations
in high-risk countries or its own production. The company's limited
activities outside Finland are office-work in nature.
The company has not identified any impacts, risks, or opportunities
related to non-employees.
S1-1 Policies related to own workforce
The company's practices and principles, including its operating
principles for managing material sustainability issues related to its
own workforce, are described in the company's Code of Conduct and
specified in the company's Personnel policy. Additionally, the company’s
operations are guided by applicable legislation.
The company believes that its own workforce plays a key role in
achieving its business objectives. In line with the values defined together
with its personnel, the company fosters a bold, agile, and transparent
organizational culture and invests in a communal atmosphere, which
strengthens the positive effects on its workforce.
In accordance with its Code of Conduct, the company respects and
promotes internationally recognized human rights. This also relates
to its own workforce. As outlined in more detail in its Personnel policy,
the company avoids causing or contributing to adverse human rights
impacts and addresses any potential impacts. The company does not
tolerate human trafficking or the use of child labor or forced labor. The
company upholds the right to fair working conditions, a healthy and
safe working environment, reasonable working hours, and adequate
compensation for work. The company respects employees’ freedom of
association and the right to collective bargaining.
In line with its Personnel policy, the company does not tolerate any
form of discrimination, harassment, or unequal treatment based on race
or ethnic origin, skin color, gender, sexual orientation, gender identity,
gender expression, disability, age, religion or belief, political opinions,
trade union activity, national or social origin, educational background,
nationality, language, economic status, health, appearance, family
relationships, family responsibilities, or any other personal reason. A
model for addressing harassment and inappropriate behavior is in place,
and employees are instructed to rase any issues. Cases are promptly
addressed on discovery, and all reports are handled fairly, impartially, and
confidentially. The company has principles for creating a safer space to
ensure that everyone can feel mentally and physically safe without fear
of discrimination, harassment or bullying. The experience of diversity
and equality is monitored as part of employee surveys.
In accordance with its Code of Conduct, the company’s operations are
guided by international declarations, agreements, and recommendations,
such as the UN Universal Declaration of Human Rights and the Convention
on the Rights of the Child, the ILO Convention on Fundamental Principles
and Rights at Work, the OECD Guidelines for Multinational Enterprises,
and the UN Guiding Principles on Business and Human Rights. The
company’s Code of Conduct related to its own workforce are derived
from internationally recognized standards and the UN Guiding Principles
on Business and Human Rights and, in the company’s interpretation, are
in line with them.
The company has an occupational safety program, with the main
target of preventing workplace accidents and developing occupational
safety work, including an annual assessment of risks and hazards
in all operations. These plans and programs are developed in
collaboration with employee representatives and are a significant part of
communication with the company’s own workforce.
Knowledge and respect for human rights and labor rights are ensured
through annual Code of Conduct training, which is required for all
employees. Additionally, training is available to employees to promote
diversity and inclusion, and various models are in place to address
potential issues. Measures to remedy and/or enable the remediation of
human rights impacts related to our own workforce are specified in the
Stakeholder Engagement table.
The scope, responsibilities, and availability of the company's policies
are presented in the MDR-P Policies adopted to manage material
sustainability matters section.
S1-2 Employee engagement and dialogue
In addition to daily interactions, the company's general processes for
communication with employees and their representatives include a
employee survey conducted 3–4 times a year, a target and development
discussion process, the internal personnel development plan, the
equality and non-discrimination plan, the occupational safety program,
the activities of the diversity group, various training sessions and
coaching, the reporting channel, employee information session, and
readiness group activities. The company involves engaging employees
in the planning and development of operations both directly and through
employee representatives and considering employees’ perspectives
in decisions and actions related to the workforce and operational
development. The company has shop stewards and occupational safety
51
REPORT OF THE BOARD OF DIRECTORS
representatives at each location. Senior employees are represented
by a trust representative. Informative cooperation negotiations are
widely and purposefully utilized. The company maintains continuous
and transparent dialogue between the employer and employee
representatives through regular discussions.
• Quarterly discussions are held between the CEO, the Chief HR
Officer, selected Management Team members, and employee
representatives about the company’s development prospects,
financial situation, workplace rules, practices and principles,
workforce utilization, employee structure, skill development,
maintaining and promoting well-being, and other current issues from
the last quarter.
• The HR manager conducts a status review with shop stewards 2–4
times a month on current issues.
• If necessary, changes are negotiated with employee representatives
before implementation.
The Chief HR Officer has operational responsibility for communication
and incorporating the results into the company’s practices.
The company applies the collective agreement between the retail
employers’ association and the service sector union to the extent
applicable to the workforce, and the dialogue model of the collective
agreement to the entire staff. The effectiveness of communication is
demonstrated by various agreements and results that have arisen from
employee initiatives.
The perspectives of the company’s workforce on diversity and
inclusion are measured as part of the employee survey, which allows
free-form anonymous feedback. Statutory workplace surveys also
address inclusion and diversity. Additionally, both the company’s own
and external workforce can use the company’s reporting channel. The
diversity group’s activities support increasing awareness of diversity,
equity, and inclusion.
S1-3 Channels for own workers to raise concerns
The company encourages its employees to voice concerns and seek
advice in unclear situations. The primary contact for employees is their
immediate supervisor. Alternatively, suspected misconduct or concerns
can be reported to the HR department or company Management Team.
Additionally, employees have the option of making anonymous reports
through the reporting channel. Cases that do not come through the
reporting channel and internal investigations are part of the normal
work of human resources and are not included in the statistics. HR and
employee representatives monitor the effectiveness of the measures.
In addition, employees have the opportunity to express their views
anonymously through employee surveys. There are separate reporting
channels for concerns related to information security and facility
security, which the company has established independently.
The company supports the use of reporting channels in the workplace
by providing training and informing employees about the existence and
use of the channels, ensuring that everyone has sufficient knowledge
of these options. Awareness of the existence of the channels and the
possibility of using them is ensured through mandatory annual training
on Code of Conduct and information security, as well as through the
development of supervisor skills. Additionally, the company has policies
in place to protect individuals who use reporting channels or complaint
mechanisms from retaliation. The reporting channel and related
practices are described in more detail in the section Mechanisms for
identifying, reporting, and investigating concerns.
S1-4 Actions and resources related to own workforce
Action Time horizon Scope Expected outcome
Promoting working
conditions and
occupational safety
2024–2028
Own
operations
globally
•
Improving employee well-
being by 0.1 points annually
Promoting equal
opportunities
for all and skill
development
2024–2028
Own
operations
globally
•
Improving employee
engagement to exceed
benchmark by 2028
•
Improving experience of
diversity and inclusion by
0.1 points annually
Promoting working conditions and occupational safety – 2025
actions and resourcing
The company focuses on long-term activities that promote health
and safety. Sick leave is monitored. Occupational safety risks and
hazards are regularly assessed in cooperation with occupational safety
representatives. Data is utilized in data-driven management. The focus
of occupational health services is on prevention.
Coaching leadership, supporting mental well-being, early intervention
discussions, zero tolerance of harassment and inappropriate behavior,
communicating about occupational safety and preventing work-related
retirement risks are tangible measures to ensure and strengthen well-
being. The company invests in comprehensive mental health support
to reduce mental health-related sick leave, aiming for less than three
workdays per person per year. The measures include increasing
supervisors’ skills, targeted training, and communication about the
importance of mental healthcare and the available mental health support
options. For employees with identified reduced work capacity, a personal
advancement plan is created.
During the reporting year, the company launched a mental well-being
program that includes communication, webinars, and supervisor training
to support everyday management and the ability to discuss mental
well-being issues. The company introduced a work ability management
system for supervisors, which standardizes practices and supports early
response to signs of reduced work ability.
52
REPORT OF THE BOARD OF DIRECTORS
To improve occupational safety, the company launched a campaign
with the goal of halving the number of occupational accidents.
Additionally, an accident insurer reporting system was surveyed
and decided to be introduced, enabling rapid response to near-miss
situations and ensuring that information is communicated to the right
parties without delay.
Resources for developing well-being and occupational safety are
primarily allocated to supervisory work, training and the time used for
daily management. The well-being and occupational safety specialist
in the HR department covers both operational and strategic tasks,
including close cooperation with various stakeholders, collaboration with
occupational safety representatives and interdepartmental cooperation.
The company monitors the effectiveness of its measures using the KPI
indicator for employee well-being in the company's personnel survey
and by monitoring the number of occupational accidents and sick leave.
Promoting equality and skill development – 2025 actions and
resourcing
Actions to develop skills included regular goal and development
discussions offered to every employee in an employment relationship,
various employee training courses, an internal mentoring program
involving around ten people, and career path development.
In 2025, the specific focus areas for skill development were
the development of work-life skills, training for supervisors on
employment lifecycle processes, covering performance management,
target setting, managers’ rights and obligations, initiating difficult
discussions, and responsible recruitment; as well as the provision of
formal qualification-based studies. The company launched a work-life
skills development programme targeted at knowledge workers. In
addition, competence was developed in corporate sales skills and agile
development. Product and service training was provided to store and
customer service personnel. In 2025, equality and non-discrimination
were promoted in accordance with the company's equality and
non-discrimination plan. The company's diversity working group met on
monthly basis and continued its efforts to raise awareness of diversity
and equality through communication. During the reporting year, the
company conducted a survey of the current state of language and
cultural competence with the aim of assessing the readiness to expand
the company's operating languages.
As a measure against harassment, a survey on harassment and
inappropriate behavior was conducted among employees working in
customer service, expanding the information obtained in the statutory
workplace survey and personnel surveys. A list of measures was drawn
up based on the results of the survey.
The job requirement classification system used by the company
helps to promote equal pay and equal career advancement. In 2025,
the company continued to train supervisors in the job requirement
classification system, and the system has become an established part of
recruitment and performance management.
The company has allocated resources equivalent to approximately
one person-year to skills development and promoting diversity.
A work community development plan covering the entire workforce
is drawn up annually, setting out the annual goals and measures for
developing and maintaining the skills and well-being of the personnel.
Employee representatives participate in the preparation of the
development plan to ensure that the plan takes into account the views
of relevant stakeholders. Through the development plan, the company
aims to ensure that its measures and practices do not have any
significant negative effects on its own workforce, and to strengthen and
benefit from the identified opportunities related to its own employees. In
addition, the annual equality and non-discrimination plan describes the
measures and objectives for promoting equality and non-discrimination.
The company monitors the effectiveness of these measures through
its personnel survey.
S1-5 Targets related to own employees
Target KPI
Result
2024
Result
2025
Target
result Target year
Improving employee
engagement to exceed
benchmark
1
Engagement
score
7. 2 7.0 > 7.6
1
2028
Improving employee
well-being by 0.1 points
annually
Well-being
score
7.7 7.5 7.8
2
Continuous
annual
monitoring
Developing experience
of diversity and
inclusion by 0.1 points
annually
DEIB-score 8.0 7.9 8.1
2
Continuous
annual
monitoring
1
The goal is to exceed the current benchmark for consumer companies in 2028. The benchmark
is updated annually. In 2025, it was 7.6.
2
The company's previous year's result +0.1 points
The targets are measured using the company's employee survey KPI
indicators, which are based on the combined results of several questions
or statements.
Questions measuring employee engagement: Likelihood of recom-
mending the company as a place to work, likelihood of recommending the
company's products or services to friends/network, likelihood of staying
with the company in a situation where the same job would be offered in
another organization, satisfaction with working for the company.
Statements measuring employee well-being: Workload requirements
are manageable, Employee health and well-being are important to
the company, Feeling able to take time off work when feeling unwell,
Competing demands of the job are easily manageable, Work ability
currently meets the demands of the job, Ability to manage one's own
mental well-being.
Questions and statements measuring experience of diversity and
inclusion: Satisfaction with how the company supports diversity and
inclusion, Belief that the company would respond appropriately to cases
of discrimination, Sense of belonging to a group within the company,
The company is a harassment-free workplace, The company accepts
everyone for who they are, regardless of their background.
53
REPORT OF THE BOARD OF DIRECTORS
In addition to the objectives of the responsibility program, the company
actively monitors the personnel-related indicators reported in this section.
Progress towards targets
KPI indicators are based on a personnel survey conducted 3–4 times
a year and measure the experience of personnel. The results of the last
measurement of the year are reported as the results for the year. The KPI
measuring employee engagement rose in the middle of the year but fell
in the last measurement and remained below the target. According to
the company's assessment, the decline in the result was partly due to the
reorganization of operations at the end of the previous year and the low
number of personnel in store operations.
The KPI measuring employee well-being declined from the previous
year and fell short of the target. Although efforts to support superiors
were increased, they were not yet reflected in a decrease in sick leave
during the reporting year. According to the company's assessment,
situations related to challenges in coping and mental health have been
responded to more quickly and timely support has been ensured.
The KPI measuring diversity and inclusion rose to the target level in the
mid-year measurement, but fell in the final measurement and fell short of
the target.
MDR-T Tracking effectiveness of policies and actions through targets
The objectives are based on promoting positive impacts and
opportunities for the company's own workforce and mitigating risks.
The targets apply to the company's entire workforce. The base year for
the targets is 2024. The targets are measured in relation to the previous
year.
The results of personnel surveys were used in setting the objectives,
which were defined in cooperation with personnel representatives,
setting objectives that support the company's vision of promoting the
well-being and growth of its own workforce.
The company has not specifically assessed the consistency of the
targets with national, EU, or international policy objectives, nor how the
targets take into account the broader context of sustainable development
or the local situation in the area affected.
S1-6 Characteristics of the company's employees
Number of employees
Gender 2024 2025
Men
452
429
Women 163 165
Total
615 594
Number of employees
Country 2024 2025
Finland
597
578
China
18
16
Total
615 594
2024 2025
Women Men Total Women Men Total
Number of employees
163
452
615
165
429
594
Number of permanent
employees
144
421
565
144
404
548
Number of temporary
employees
19
31
50
21
25
46
Number of non-guaranteed
hours employees
0
0
0
0
0
0
Number of full-time
employees
108
358
466
113
331
444
Number of part-time
employees
55
94
149
52
98
150
All figures are presented as numbers of persons
The main reasons for fixed-term employment are seasonality 33% (28)
and substitution 48% (58). On average, fixed-term employees accounted
for about 9% (9) of the company's workforce, which is significantly below
the national level (20%) (21). Source: Statistics Finland's Labor Force
Survey 2009–2024.
In 2025, the number of employees who left the company was 116 (162),
and the turnover rate was 19.3% (25.5%). All figures provided match the
figures in the financial statement figures.
S1-7 Characteristics of non-employee workers
The company uses temporary agency workers in its supply chains,
stores, and in the Customer Success and After Sales teams, in
accordance with the principles agreed separately with employee
representatives. Temporary agency labour is used to ensure adequate
capacity, for example to cover sick leave or to respond to sudden
increases in workload. Temporary agency workers fall under the
company’s managerial responsibility, within which the practices and
guidelines applied to them are consistent with those applied to the
company’s own employees.
As of 31 December 2025, there were a total of 237 (156) non-employees,
including 11 (7) independent contractors and 224 (146) workers primarily
from companies engaged in employment activities. Additionally, there
were two (three) interns.
S1-8 Collective bargaining coverage and social dialogue
Collective Bargaining Coverage Social dialogue
Coverage
rate
Employees – EEA
(For countries
with >50 empl.
representing >10%
total empl.)
Employees – non-EEA
(Estimate for regions
with >50 empl.
representing >10%
total empl)
Workplace
representation
(EEA only)
(For countries
with >50 empl.
representing >10%
total empl)
0–19%
20–39%
40–59%
60–79% Finland (Finland)
80–100% Finland (Finland)
Figures in parentheses refer to 2024 comparative data
As operations are solely based in Finland, there has been no need to
establish agreements with a European Works Council (EWC), a Societas
Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE)
Works Council.
54
REPORT OF THE BOARD OF DIRECTORS
S1-9 Diversity metrics
2024 2025
Top management Headcount Percentage Headcount Percentage
Women 3 37.5 3 37. 5
Men 5 62.5 5 62.5
2024 2025
Personnel by age group Headcount Percentage Headcount Percentage
Under 30 years 136 22.1 120 20.2
30–50 years
460
74.8
448
74.4
Over 50 years 19 3.1 26 4
S1-10 Adequate wages
The company ensures that all employees are paid wages that meet or
exceed the terms of the collective agreement. Salary payments exceed
the table wages specified in the collective agreement for the retail sector
through the company's own practices. These include a 6.67% company-
specific supplement, the uniform application of the capital region salary
level in all locations in Finland, and procedures that are in the interests
of employees with regard to annual salary increases and training
opportunities.
S1-11 Social protection
All the company’s employees are covered by social protection against
income loss due to major life events, either through public programs
or benefits provided by the company. These life events include illness,
unemployment, work-related injury and disability, parental leave, and
retirement. The protection occurs either through public programs or
benefits offered by the company.
S1-13 Training and Skills Development metrics
Share of employees participating in regular performance and career
development reviews
Gender 2024 2025
Women 88% 77%
Men
94%
90%
Average number of training hours per employee (hours)
Gender 2024 2025
Women
5.6
7.5
Men 5.6 7.9
S1-14 Health and safety metrics
2024 2025
Share of employees with employment contracts covered
by occupational health services (%)
100% 100%
Number of fatalities due to work-related injuries and
occupational health issues
0 0
Occupational accidents
17
18
Accident frequency
1
10.3
8.4
Number of occupational health issues (occupational
disease)
0 0
Number of workdays lost due to
work-related accidents
30 18
1
The company reports the accident frequency for accidents resulting in sick leave, of which
there were 7 cases in 2025
S1-15 Work-life balance metrics
Family-related leave 2024 2025
Share of employees entitled to take family-related leave 100% 100%
Percentage of employees entitled to take family-related
leave who took parental leave
16.9%
1
16.4%
Men who have taken family leave
16%
2
16%
Women who have taken family leave
19%
2
17%
1
The data has been updated to include the company's employees in China
2
The data has been updated due to a refinement in the calculation principles
S1-16 Remuneration metrics (pay gap and total
remuneration)
2024 2025
Gender pay gap (percentage)
1
1.7%
2
1.8%
Ratio of the highest paid individual to the median annual
remuneration for all employees
12.1 10.7
1
The KPI covers the company's employees in Finland. For the company as a whole, the
aggregated gender pay gap was 6.0% in 2025. According to the company's assessment, the
company-level figure does not reflect the actual situation, as it is distorted by the significant
difference in pay levels between Finland and China, as well as the opposite gender distribution
between the company’s operations in Finland and China.
2
The gender pay gap figure contains uncertainty for 2024 because the calculation method was
refined from Q3 onwards to be more accurate and in line with ESRS guidelines.
The gender pay gap is mainly explained by certain individual roles.
S1-17 Incidents, complaints, and severe human rights
impacts
No concerns were reported through the company’s reporting channel in,
either by the company's own workforce or other stakeholders (2024: 0).
The company has not identified any serious human rights cases during
the reporting period (2024: 0). The company has not paid any related
fines, penalties, or compensations during the reporting period (2024: 0).
All forms of harassment, bullying, or discrimination are strictly
prohibited, as defined in the Code of Conduct and Personnel policy.
Personnel are instructed to report any incidents by contacting, for
example, their supervisor, a shop steward, the HR department, or
55
REPORT OF THE BOARD OF DIRECTORS
management. Incidents are addressed immediately when they arise,
and confidential hearings are held to investigate the situation. Cases are
primarily resolved by supervisors, and only some cases are brought to
the attention of the HR department, so there is no accurate monitoring
of the number of cases and, therefore, the company does not report the
total number of discrimination or harassment cases reported during the
reporting period. During the reporting year, some cases of harassment
that were not reported through the reporting channel were handled in
accordance with the company's processes. The cases were not serious
in nature.
S1 REPORTING PRINCIPLES FOR METRICS
S1-6 Characteristics of the company's Employees
The figures presented in the table are accurate. The figures are taken
from a continuously updated HR system, and the numbers presented
in the table are reported as the number of employees at the end of the
reporting period.
S1-7 Characteristics of non-employee workers
The figures come from a continuously updated HR system, and the
numbers presented are reported as the number of employees at the end
of the reporting period. The number of non-employees does not change
significantly during the period. A large proportion of them are people
provided by companies engaged in employment activities, who are used
as needed, particularly to balance unpredictable workloads.
S1-8 Collective bargaining coverage and social dialogue
The figures presented in the table are accurate. The figures come from
a continuously maintained HR system, and the numbers presented
in the table are reported as the number of employees at the end of the
reporting period.
S1-9 Diversity metrics
The definition of senior management is one level below the administrative
and supervisory bodies (the Management team).
The figures presented in the table are accurate. The figures come
from a continuously maintained HR system, and the numbers presented
in the table are reported as the number of employees at the end of the
reporting period.
S1-13 Training and Skills Development metrics
The number of training hours is based partly on estimates and partly on
the assumption that the number of hours is the same for both genders.
Where accurate data was available, the gender distribution was
balanced.
S1-14 Health and safety metrics
The accident frequency rate is calculated by dividing the number
of accidents at work resulting in sick leave by the number of hours
worked and multiplying the result by one million. According to ESRS
requirements, the indicator must include all accidents that occurred
during the reporting year, of which there were 18 in 2025, resulting in an
accident frequency of 21.5 in 2025. However, the company estimates
that this does not give a true picture of the company's situation, as the
accidents without absence were very minor: they did not require first aid
or a visit to the doctor and did not result in any restrictions on work ability,
transferred work tasks, or absences.
The figures come from the continuously maintained HR system, the
occupational health care system, and the occupational accident insurer's
system. The company complies with Finnish law, which stipulates that
occupational health care is available to everyone. For other figures, the
number of occupational accidents and work-related health problems
comes from occupational health care and the occupational accident
insurer. The number of working hours required for calculating the
accident frequency comes from a continuously maintained HR system.
S1-15 Work-life balance metrics
The figures presented in the table are accurate. The figures come from
a continuously maintained HR system, and the numbers presented in
the first table are reported as the number of employees at the end of the
reporting period. The number of employees on family leave is presented
for the entire reporting period. The percentage of employees on family
leave has been updated to include the company's employees in China for
the comparison data. In 2024, the percentage was 16.9% instead of the
previously reported 17.4%. The calculation method for the percentage
of men and women who took family leave has been changed, and the
comparison data has been updated. The updated indicator shows the
percentage of men/women who took family leave out of all male/female
employees of the company.
S1-16 Remuneration metrics (pay gap and total remuneration)
The figures presented in the table are accurate. The figures come from
a continuously maintained HR system, and the numbers presented in
the table have been calculated from the total salaries for the reporting
period.
S1-17 Incidents, complaints, and severe human rights impacts
The key figures include reports received through the reporting channel
and serious cases brought to the attention of HR.
The calculation takes into account the company's employees working in
both Finland and China. For China, actual working hours are not available,
so the estimate is based on available employment contract data. In
the figures for 2024, Chinese employees are not included in the S1-14
accident frequency indicator. The figures for 2025 also include Chinese
employees.
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REPORT OF THE BOARD OF DIRECTORS
S2 – Workers in the value chain
SBM-3 Material impacts, opportunities, and risks related
to workers in the value chain
S2.1 Working conditions
S2.2 Equal treatment and opportunities for all
S2.3 Other work-related rights
Impacts
Opportunities
and risks
Location in the value
chain
Management
The company's supplier requirements and
monitoring practices encourage suppliers to
improve working conditions and ensure that
workers' rights are respected in the value chain,
compared to a situation where the supplier
would only co-operate with non-EU operators
(actual positive impact)
None identified
Beginning of
the value chain
through business
relationships
• Due diligence in the selection of suppliers
• Supplier requirements
• Monitoring of working conditions for own imports and private
label products through the Amfori BSCI program, which
promotes sustainable trade, including social responsibility
audits and readiness for the program's zero-tolerance policy,
as well as efforts to provide suppliers with tools for developing
their responsibility work, such as a development plan based on
audit results and training
S2.1 Working conditions
Violations of employee rights can have a
negative impact on employees and their
families. The company has a Supplier Code of
Conduct and requirements for suppliers, but the
company cannot completely eliminate the risk
of challenges related to working conditions in its
supply chains (potential negative human rights
impact)
None identified
Beginning of the value
chain through business
relationships
• As above
The positive effects are seen to result from development work in the
Supplier Code of Conduct and procurement practices. This applies
in particular to value chain workers working for direct suppliers, but
suppliers are also required to apply the same practices to their own
supply chains. On the other hand, the company has identified potential
negative impacts related to working conditions, as it cannot completely
eliminate the risk of challenges related to working conditions in its
supply chains. Potential negative human rights impacts may be
directed to the realization of labor rights and human rights, such as safe
working conditions, adequate rest, a living wage, and the prohibition of
harassment, discrimination, forced labor, and child labor, as described in
the Stakeholder Engagement table. The impacts relate to all employees
in the value chain through business relationships. The materiality
assessment includes uncertainties regarding workers at the beginning of
the value chain, over whom the company does not have full visibility.
The company has not identified any material risks or opportunities
related to workers in the value chain, nor any dependencies on the
company's strategy or business model. The company's assessment
of the vulnerability of different employee groups to negative impacts is
based on the Amfori BSCI program, whose Code of Conduct specifically
define the special protection of young workers based on the vulnerability
of this employee group, as well as specific measures to safeguard the
rights of migrant and seasonal workers.
The impacts on workers in the value chain are caused by the
company's business model in such a way that the products sold by
the company, especially consumer electronics, are concentrated in
countries with a high risk of human rights and labor rights violations,
including the risk of child labor or forced labor, based on the Amfori
BSCI risk classification and World Bank indicators. The company has not
specifically assessed the extent to which the risk of child labor or forced
labor is significant or whether the negative impacts are widespread
or systemic in the contexts in which the company operates, makes
purchases, or has other business relationships.
S2-1 Policies related to value chain workers
The policies for managing sustainability issues related to value chain
workers are described as part of the company's Code of Conduct and
specified in the Supplier Code of Conduct, which broadly covers human
rights, social and environmental responsibility, and risk materials, for
example. In terms of social responsibility, the covered topics include
governance practices and supply chain management, employee
engagement and protection, the right to organize and negotiate,
prohibition of discrimination, violence, and harassment, fair wages,
reasonable working hours, occupational health and safety, prohibition
of child labor, special protection for young workers, prohibition of
precarious employment, prohibition of forced labor, human trafficking
and smuggling, environmental protection, and ethical business practices,
in accordance with the principles of Amfori BSCI. The Code of Conduct
and related requirements guide the company's operations in terms of
identified positive impacts on employees in the value chain and potential
negative impacts, focusing on the themes of working conditions, equal
treatment and equal opportunities for all, and other work-related rights.
The company respects and promotes internationally recognized
human rights. This includes workers in the value chain. Respect for
human rights is documented in the company’s Code of Conduct and
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REPORT OF THE BOARD OF DIRECTORS
the Supplier Code of Conduct. Additionally, the requirement to respect
human rights and labor rights has been specified in the Supplier Code
of Conduct, considering cooperation with partners in countries where
human rights and labor rights are not sufficiently protected by law.
Furthermore, the Supplier Code of Conduct states that the company’s
operations are guided by international declarations, agreements, and
recommendations such as the UN Universal Declaration of Human
Rights and the Convention on the Rights of the Child, the ILO Convention
on Fundamental Principles and Rights at Work, the OECD Guidelines for
Multinational Enterprises, and the UN Guiding Principles on Business
and Human Rights, according to which the company is committed to
identifying, preventing and mitigating potential adverse human rights
impacts related to business operations.
The company exercises due diligence in selecting its suppliers and
aims for long-term partnerships. The company has been a member of the
Amfori BSCI program since 2021, which promotes sustainable trade, and
is committed to the BSCI principles and the continuous improvement
model, as well as to identifying, preventing, and mitigating potential and
actual adverse social impacts. The company requires all its suppliers
to comply with the company’s Code of Conduct and to commit to the
Supplier Code of Conduct, which includes the Amfori BSCI principles
and is part of the contract terms. The Supplier Code of Conduct covers
all the company’s suppliers, regardless of geographical location. The
company does not have its own production facilities. The company
complies with all applicable trade sanctions and customs import and
export regulations.
Suppliers and value chain employees globally are a key stakeholder
group in the Code of Conduct. Their interests have been considered,
considering that Amfori BSCI has involved stakeholders in drafting the
Amfori BSCI Code of Conduct, which is part of the company’s Supplier
Code of Conduct. The Amfori BSCI Code of Conduct is available to value
chain workers in all manufacturing factories subject to BSCI audits.
During the reporting year, the company did not become aware of
any adverse decisions regarding cases related to workers in the value
chain at the beginning and end of the value chain, where the UN Guiding
Principles on Business and Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work, or the OECD Guidelines for
Multinational Enterprises were not followed.
The scope, responsibilities, and availability of the company's policies
are presented in the MDR-P Policies adopted to manage material
sustainability matters section.
S2-2, S2-3 Engagement with value chain workers and
channels for raising concerns
Engagement with workers in the value chain is continuous and
occurs indirectly through supplier representatives, and for suppliers
manufacturing the company’s private label products, also through
third-party social responsibility audits. The company leverages its
membership of the Amfori BSCI program, a leading industry initiative
promoting sustainable trade, for communication. The company’s Chief
Commercial Officer, who is part of the executive Management Team,
is responsible for ensuring that communication takes place and that
the results are considered in the company’s practices. The operational
responsibility for hearing value chain employees through audit data
lies with the quality assurance employees within the purchasing
organization. The company ensures that they have up-to-date expertise
to properly fulfil their roles.
Most of the company’s private label products are manufactured
in countries with a considerable risk of human rights and labor rights
violations, based on Amfori BSCI risk country classifications and
World Bank indicators. The company requires suppliers of its private
label products operating in high-risk countries to provide evidence or
consent to an Amfori BSCI audit or another reliable third-party social
responsibility audit before placing an order. Suppliers must prepare a
corrective action plan for all significant findings in the audits, and in the
case of a failed audit, new orders can only be placed once the critical
deficiencies leading to the failure have been corrected.
The Amfori BSCI program includes a zero-tolerance model for cases
where the auditor finds evidence of issues such as child labor, forced
labor, inhumane treatment, occupational health or safety violations that
pose an immediate danger to life, health, or safety, or unethical behaviour
such as bribery or concealment by the auditor. In such situations, a
rapid alert program is initiated, where companies associated with the
manufacturing facility in question are immediately informed of the
suspected violations, and a process to rectify the situation is initiated.
During the reporting year, the company was not made aware of any
zero-tolerance cases, nor was it involved in any related investigation or
remediation programs that would have offered or supported corrective
actions for those harmed by the impacts.
Through the observations made by the auditor and the employee
interviews conducted as part of the audit, the company obtains
information about the situation of value chain employees. According to
the BSCI program’s principles, employee rights and various occupational
safety information, must be clearly visible to employees in a language
they understand. Additionally, the supplier must provide its employees
with a grievance mechanism and communicate about it. The compliance
of the grievance mechanism is verified in the audit. The company
considers the measures to remedy the negative impacts of processes
to be sufficiently effective. The company monitors the effectiveness
of actions and initiatives in delivering results for value chain workers
through its Amfori BSCI membership. The company does not specifically
monitor the awareness or trust of value chain employees in reporting
channels.
The company’s own reporting channel for raising concerns is available
to anyone if required, including value chain workers or their legal
representatives. Information about the reporting channel can be found in
the company’s Code of Conduct and Supplier Code of Conduct, which
are available on the company’s website in Finnish and English. The
company has whistleblower protection principles in place, which are
expressed in the company’s Whistleblowing policy.
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REPORT OF THE BOARD OF DIRECTORS
S2-4 Actions and resources related to value chain workers
Actions Time horizon Scope Expected outcome
Development
of monitoring
compliance
2024–2028 Beginning of
the value chain
globally
Ensuring that purchases are
made from direct suppliers
showing proofof adequate
working conditions
The company manages material impacts on value chain workers by
exercising due diligence in supplier selection, setting requirements for
its suppliers, and being a member of the Amfori BSCI program.
The company reviews the necessary measures to mitigate potential
negative impacts as part of the company’s sustainability work and the
setting of Sustainability program targets. The Supplier Code of Conduct
is reviewed and updated regularly. The process for setting responsibility
targets is described in the sectionThe role of the administrative,
management, and supervisory bodies.
Additionally, the company reviews the necessary measures to
mitigate any negative impacts in connection with the regular updates of
the Supplier Code of Conduct.
Monitoring supplier compliance – 2025 actions and resourcing
In the reporting period, the company carried out further development
work to improve the monitoring of supplier compliance. The measures
included general improvements to the procurement process, including
the development of process descriptions and documentation,
technical development of the supplier database, reform of contract
management, definition of performance evaluation, and identification
of supplier information. This development work supports the assurance
of compliance by both suppliers and the products sold. At the end of
the year, preparations were made to expand technical capabilities for
collecting sustainability data, harmonizing data collection, and improving
and streamlining data monitoring and measurement with the support of
the system.
In the reporting year, the company updated its Supplier Code of
Conduct. The update supports data collection and reporting in line with
sustainability goals and considers the 2024 update to the Sustainability
program, which expanded the goal of ensuring adequate working
conditions for value chain workers to cover all direct suppliers in addition
to private label brands and own imports. The aim is to ensure responsible
procurement and adequate and safe working conditions throughout
the supply chain. Additionally, clarifications were made in the update to
ensure that the principles correspond in all respects to the impacts, risks,
and opportunities identified in the double materiality analysis throughout
the value chain. The Code of Conduct will be implemented at the same
time as the company's other renewed operating models. Additionally,
in the reporting year, the company has reviewed and updated the
procurement process for its private label brands and the operating
models related to the process. In renewing the process, operating
models, and guidelines, the aim has been to consider as extensively as
possible the new and upcoming requirements for due diligence.
In the reporting year, the company continued active supplier selection
and evaluation work. Reducing the number of suppliers contributes to the
company's ability to communicate and monitor its sustainability goals for
workers in the value chain.
The company's efforts to monitor the effectiveness of the requirements
set for suppliers in 2025 will focus on the value chains of its private label
brands and other imports, where it has relatively greater influence than in
the case of international brands. Sustainability topics are part of contract
negotiations.
Working hours have been allocated in the purchasing, logistics,
and sustainability organizations to prevent and mitigate the negative
impacts of the value chain and to leverage its positive impacts. In the
reporting year, the company strengthened its resources by recruiting
a new manager whose responsibilities include responsibility and
regulatory issues related to products and the supply chain, such as
monitoring regulations, the development of procurement processes
and guidelines, the training of procurement teams in responsibility
issues, and cooperation with suppliers. Additionally, resources were
allocated to system development to improve technical capabilities. The
implementation of the planned development measures did not require
capital expenditure (CapEx) or significant operating expenditure (OpEx).
S2-5 Targets related to value chain workers
Target KPI
Result
2025
Target
Ensure that purchases are
made from suppliers who
provide adequate working
conditions
Percentage of direct
suppliers showing proof
of adequate working
conditions, for example in
the form of an approved
social responsibility audit
N/A
1
100%
1
The company plans to start KPI reporting in 2026
MDR-T Tracking effectiveness of policies and actions through
targets
The target is to promote positive impacts on value chain workers and
mitigate potential negative human rights impacts. No specific base
year or value has been defined for the target. The target is relative and
applies to the company's beginning of the value chain in terms of direct
suppliers. In 2025, the wording of the target was clarified to reflect the
requirement to present a valid and approved audit result when placing
an order. The company plans to start KPI reporting in 2026 once the
technical development of the supplier database has been completed,
after which progress will be monitored annually through KPI reporting.
The targets were set based on the views of stakeholders on the
impacts on the value chain, considering the key interests and views of
value chain workers and human rights perspectives, as described in
the table Stakeholder engagement. Communication with value chain
workers, which also concerns the setting of targets, is described in the
section S2-2, S2-3 Engagement with value chain workers and channels
for raising concerns.
The company has not specifically assessed the consistency of the
objectives with national, EU, or international policy objectives, nor how
the objectives consider the broader context of sustainable development
or the local situation in the area affected.
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REPORT OF THE BOARD OF DIRECTORS
S4 – Consumers and end-users
SBM-3 Material impacts, risks, and opportunities related to
consumers and end-users, and their interaction with strategy
and business model
S4.3 Social inclusion of consumers and/or end- users:
Impacts Opportunities and risks
Location in the
value chain
Management
Enabling equal access to the company’s
products and services for all consumer
groups, can positively contribute to social
inclusion among consumers (positive
actual impact)
Equal access to products
and services for all consumer
groups can increase the
company's sales (positive
actual impact)
End of the
value chain
• The company’s products and services are equally
accessible to all consumer groups through the online
service, including essential products such as mobile
phones, customer service, and circular economy
services
• Home deliveries
• Fast deliveries
• Accessibility of the online store
S4.2 Personal safety of consumers and end-users
A possible neglect of product safety
measures, for example those related
to product characteristics or safety
instructions, may lead to isolated situations
in which a customer’s health or safety
is put at risk. For example, products
containing batteries carry a fire risk, and
failure to comply with safety measures
could potentially cause harm to a
customer’s health or safety (a potential
negative human rights impact)
None identified End of the
value chain
• Compliance assurance process for all private label
products
• Product knowledge and identification of product risks
• Monitoring and minimising recalls and responding to
potential deficiencies
The topics identified in the materiality process apply to all consumers
and end-users. The company strives to mitigate the identified negative
impacts of its operations by focusing on product quality and monitoring
product compliance and responsibility with the aim of ensuring an
efficient and responsible procurement process.
S4-1 Policies related to consumers and endusers
The company's policies relating to consumers and end-users are set out
in the company's Code of Conduct and, with regard to privacy, specified
in the Information security policy and privacy statement, covering all
customers and end-users.
In accordance with its Code of Conduct, the company treats and
serves all customers equally, ensures the safety of its customers'
transactions in stores and online, and ensures the safety and compliance
of the products sold. In line with its Code of Conduct, the company
respects and promotes internationally recognized human rights. This
also applies to customers, and the company does not tolerate any
discrimination against or harassment of customers. Customer data
and other personal information are kept confidential. Measures to
address and/or enable the correction of human rights impacts related to
consumers and end-users are detailed in the Stakeholder Dialogue table.
According to its Data privacy statement, the company is committed
to protecting its customers' privacy and offers them the opportunity to
influence the processing of their personal data. The company’s Code of
Conduct related to consumers and end-users is guided by internationally
recognized norms concerning consumers and/or end-users and the UN
Guiding Principles on Business and Human Rights, and in the company’s
interpretation, is in accordance with them.
The scope, responsibilities, and availability of the company's policies
are presented in the section MDR-P Policies adopted to manage material
sustainability matters.
In the reporting year, the company was unaware of any adverse
decisions regarding cases related to consumers and/or end-users at
the end of the value, where the UN Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental Principles and Rights
at Work, and the OECD Guidelines for Multinational Enterprises were not
followed. In the reporting year, the company announced the decision
of the Helsinki Administrative Court, which upheld the administrative
penalty imposed on the company by the Data Protection Ombudsman.
According to the Administrative Court, the company had failed to specify
the retention period for its online store customers' customer data as
defined in the EU Data Protection Regulation. The Administrative Court's
decision is not final. The company has applied for leave to appeal to the
Supreme Administrative Court.
S4-2 Processes for engaging with consumers and end-
users about impacts
The company is in constant and active direct interaction with consumers
and end-users in many ways and consider the views of consumers
and end-users in the company's strategy and in setting sustainability
goals, as described in section SBM-2 Stakeholder interests and views.
Vulnerable persons are not specifically considered in communications.
Equal access to the company's products and services is part of the
company's marketing and customer experience, which widely promotes
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REPORT OF THE BOARD OF DIRECTORS
the possibility of different delivery methods for customers, including
door-to-door deliveries and fast deliveries that promote accessibility.
The effectiveness of communication is monitored through customer
surveys. According to a survey conducted at the end of the reporting
year, awareness of the company's one-hour deliveries was 32% among
Finns.
The company engages in dialogue with customers and monitors
customer-related incidents through customer service contacts and the
reporting channel, including any individual incidents in which the health
or safety of customers is compromised due to negligence in product
safety measures. If any product safety deficiencies are identified, the
company initiates a recall process in which customers are contacted as
specified in the process.
As part of the product conformity assessment process, products
undergo a risk assessment process. The risk assessment process may
result in a need to communicate information about the safe use of the
product. The company ensures that such information is available to the
end customer when making a product purchase decision, both in the
online store and in the store. The company's Chief Experience Officer has
the ultimate operational responsibility for ensuring that communication
with customers takes place and that the results are taken into account in
the company's operating practices.
S4-3 Channels for consumers and end-users to raise
concerns
If a consumer or end-user observes illegal activity or activity that
seriously violates the company's Code of Conduct or other guidelines,
they can contact the company's management directly through the
company's reporting channel or make a report either under their own
name or anonymously. The procedures and processes for the reporting
procedure and channel are described in the company's guidelines
and policy on reporting misconduct and in section G1 Mechanisms for
identifying, reporting, and investigating concerns of this report. The
reporting channel is not primarily intended for communication with
consumers and end-users, although it is also available to them. The
company has not made a separate assessment of the extent to which
consumers and end-users trust the reporting channel.
In addition to the reporting channel, customers have numerous
low-threshold ways to contact the company and express their views.
The company believes that, if necessary, a customer or end-user
can be guided to use the official channel after initially contacting
customer service, social media, or a company employee, for example.
The company has a policy in place to protect whistleblowers, which
is outlined in the company's policy on reporting misconduct. The
company's customer service is prepared to handle possible cases where
a consumer has suffered some kind of health damage in connection with
the use of a product purchased from the company, for example due to
the incomplete application of the instructions for use. The company
handles cases on a case-by-case basis in accordance with a predefined
operating model. Potential cases are documented and used as a basis
for assessing development measures to improve product safety.
S4-4 Actions and resources related to consumers and
end-users
Action Time horizon Scope Expected outcome
Improving delivery
speed to ensure equal
access for consumer
groups to the
company's products
and services
2024–2028
Own operations
and the end of
the value chain
in Finland
90% of households in
mainland Finland will be
reached with next-day
deliveries by the end of
2028
Ensuring and
continuously
developing product
safety
2024–2028
Own operations
No recalls of private
labels or own imports
The company enables equal access to its products and services for all
consumer groups, which is expected to positively contribute to social
inclusion among consumers and increase the company's sales. The
company's products and services are equally available to all consumer
groups in brick-and-mortar stores and online. The company has
developed and continues to develop delivery speed and the availability
of fast deliveries, as well as the accessibility of online shopping, making
products and services available to everyone. The company verifies
product compliance through various means. The product compliance
assessment process includes reviewing product documentation, third-
party product testing, shipment monitoring, and self-monitoring. The
verification methods used are determined on a risk basis. The company
has identified factors such as product characteristics and the target user
group as factors affecting the level of risk.
The effectiveness of the measures is assessed by monitoring the
number of recalls of private labels and own imports, as well as through
customer service channels and contacts via the reporting channel.
Resourcing related to consumers and end-users – 2025 actions and
resourcing
The company focused a significant portion of its strategic development
resources and commercial and operational development investments
on improving delivery speed. The development and continuous
improvement of fast and easy multi-channel services are strategic
priorities that extend to all the company's operations. As a result,
an increasing proportion of customer transactions and purchasing
processes are carried out through fast delivery and transaction methods,
enabling an efficient service experience for all customer groups. Fast
deliveries were also actively marketed.
Additionally, in the reporting year, consumer access to products
and services was improved by completing a development project that
strengthened the accessibility of the company's online store and support
websites based on an accessibility assessment conducted by a third
party.
Work to leverage significant opportunities targeting consumers and
end-users is carried out primarily as part of sales and marketing, logistics
planning, and system development, and resources in terms of working
time, operating expenses, and capital expenditure have been allocated
to these activities.
In the reporting year, the company developed and refined the
compliance assurance process and operating guidelines for all its
private label products. Work to ensure and develop product safety is
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REPORT OF THE BOARD OF DIRECTORS
carried out primarily in the company's procurement organization and
logistics operations and working hours and operating expenses have
been allocated to this work, with additional resources allocated in the
reporting year.
S4-5 Targets related to consumers and end-users
Target KPI
Result
2025
Target
result
Target year
90% of households in
mainland Finland will
be reached with next-
day deliveries
Percentage of
households that can
be reached with next-
day deliveries
80% 90%
2028
No recalls of private
labels or own imports
Number of recalls
(units)
0 0
Continuous
annual
monitoring
Progress in target
In the reporting year, 80% of households in mainland Finland were able
to receive next-day deliveries when orders were placed during daytime
hours on weekdays. The target is progressing as planned and reflects the
speed of the company's warehouse and order processing procedures
as well as the extent and efficiency of its logistics partners' delivery
network. The company assesses the effectiveness of its measures in
relation to the target by, among other things, monitoring the proportion
of fast deliveries. In 2025, the share of next-day and faster deliveries of
all orders increased to 71% (65).
The company succeeded in its recall target in 2025 and did not have
any recalls concerning its private labels or other imports. In the reporting
year, the company was unaware of any cases of negligence in product
safety measures that would have caused serious harm to customer
health or safety.
MDR-T Tracking effectiveness of policies and actions
through targets
The target for next-day deliveries is based on promoting positive impacts
on consumers and/or end-users and managing opportunities. The target
is strategic. No separate base year or value has been defined for the
target. The target is relative and its scope of application is the end of the
value chain and the company's operations in mainland Finland.
The targer concerning recalls is based on mitigating potential negative
impacts. The target is operational and continuous, and no separate base
year or value has been defined for it. The target is absolute and covers
all products sold under the company's private labels and other products
imported by the company in all countries where the company operates.
Consumers and end-users were not specifically consulted when setting
the target. The key interests and views of customers and end-users were
considered when defining the targets, as well as human rights perspectives,
as described in the Stakeholder engagement table. The consideration of
stakeholder perspectives in setting strategic targets is described in section
SBM-2 Stakeholder Interests and Views. Communication with customers
in general is described in more detail in Processes for engaging with
consumers and end-users about impacts section.
The company has not specifically assessed the consistency of its
objectives with national, EU, or international policy objectives, nor how
the objectives consider the broader context of sustainable development
or the local situation in the area affected.
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REPORT OF THE BOARD OF DIRECTORS
GOVERNANCE
G1 – Business conduct
IRO-1 Material impacts, risks and opportunities related to
business conduct
G1.5 Management of relationships with suppliers including payment practices
Impacts Opportunities and risks Location in the value chain Management
None identified
Fair business conduct, ethical practices and proven
rigorous risk management practices throughout the supply
chain can improve reputation with suppliers and partners
improving the chances for long relationships and good
commercial co-operation
Own operations and the
beginning of the value
chain through business
relationships
The company’s policies, such as the Code
of Conduct, Risk management policy,
Whistleblowing policy, Anti-corruption and
anti-bribery policy, Related party policy, and
related practices and their training
G1-1 Corporate culture and business conduct policies
The company's Code of Conduct and values define its way of operating
and apply to its entire own workforce and management. The Code of
Conduct has been approved by the company’s Board, and it covers
the company’s principles and practices regarding customer-oriented
operations, communication, marketing, information disclosure, personnel
and corporate culture, cooperation with partners, the prevention of
corruption and bribery, human rights and labor rights, information security
and privacy, the environment, compliance with laws, and the reporting
channel. The Code of Conduct is complemented and specified by the
company’s policies. The company complies with applicable sanctions
legislation and has drawn up specific internal guidelines to ensure
appropriate wholesale and travel sales. The company's Anti-corruption
and anti-bribery policy covers the key requirements of the UN Convention
and, in the company's view, complies with the Convention.
In line with the values defined together with its personnel, the company
fosters a bold, agile, and transparent organizational culture and invests
in a communal atmosphere. The goal of the company's HR team is to
enable both a good employee experience and the creation of a corporate
culture that is visible to customers.
One of the themes of the company's Sustainability program is to
strengthen a responsible and inclusive work culture and community,
through continuous learning, diversity, high-quality leadership, and
ensuring physical and mental well-being. Targets and metrics have
been defined for the themes of the Sustainability program, and their
implementation is monitored. The theme includes targets related to
organizational culture, which are measured by the metrics of regularly
conducted employee surveys. These targets and indicators are
presented in section S1-5 Targets related to own employees.
The company has not set any results-oriented targets directly related
to the governance, management, and control structures for sustainability
issues in accordance with the ESRS GOV-1 standard. Sustainable
development management is integrated into the company's general
management processes and strategy implementation, the progress of
which is monitored using non-separate performance metrics.
Mechanisms for identifying, reporting, and investigating concerns
The company has a policy on reporting misconduct that describes how
employees, customers, or other stakeholders can report activities that
they suspect are contrary to the law or the company's Code of Conduct
or guidelines. The policy also describes how the company will respond to
such reports.
The company provides several different channels for reporting
misconduct. Concerns or suspicions of misconduct in the company's
operations should primarily be raised with the employee's own
supervisor, the company's human resources department or other similar
department, management, or any other appropriate contact person. If
the whistleblower believes that the matter cannot be dealt with through
any other available channel, they may use a reporting channel managed
by an external partner. This channel allows concerns to be reported
confidentially and, if desired, anonymously. Reports can be made in
Finnish or English.
The company is committed to investigating all reports thoroughly and
taking the necessary measures regardless of the channel used to make
the contact. Reports are assessed and investigated in a manner that
is independent, fair, and impartial to all parties, protecting the privacy
of both the reporter and the subject of the report. The processing of
personal data complies with the obligations of the Data Protection Act.
Information about the report will only be shared within the company with
those persons who absolutely need it. If necessary, external experts, such
as a lawyer or auditor, may be involved in the investigation. The person
under suspicion will not be involved in the investigation of the report.
Reports made through the reporting channel are handled by the
company's CFO, HR Director, and Legal Director, who report all reports
of misconduct they receive to the company's CEO and the Audit
Committee of the Board of Directors.
The company has a strict policy of not tolerating any form of retaliation
against persons who have made reports in good faith. The company also
prohibits any retaliation against its employees who provide information,
facilitate the provision of information, or assist in an investigation by
the company or a competent authority into suspected misconduct.
If a whistleblower becomes aware that they are being subjected to
retaliation for making a report of misconduct in good faith, they may
report the retaliation to the company in the same manner as any other
report of misconduct.
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REPORT OF THE BOARD OF DIRECTORS
Authority processes
In 2025, the Regional State Administrative Agency for Southern
Finland imposed an administrative fine of EUR 540,000 concerning
the company's practices related to compliance with the Anti-Money
Laundering Act during the period from 1 September 2020 to 31 August
2023. Following the audit, the company has tightened its operating
models. The company takes anti-money laundering extremely seriously
and actively participates in efforts to combat money laundering and the
grey economy.
G1-2 Management of relationships with suppliers
The company’s supplier collaboration practices are described in
section S2 Workers in the value chain. Environmental criteria were not
direct criteria for supplier selection in the reporting year. The company
recognizes the importance of environmental criteria and plans to develop
processes to better consider them in the medium term.
Principles to prevent payment delays, especially for smes
The company treats all its suppliers equally and does not categorize
them in distinct groups. The accounts payable unit of the finance
department's accounting team actively monitors open invoices and
promotes the payment of invoices from the oldest due date to prevent
payment delays. All invoices received in accounting are paid according
to the payment days defined by the company.
G1-3 Prevention and detection of corruption and bribery
The company's operating principles for the prevention of corruption and
bribery are stated in the company's Code of Conduct and specified in the
company's Anti-corruption and anti-bribery policy. The company does
not tolerate any form of bribery, corruption, or other unethical influence in
its business. The policy is designed to help identify and prevent situations
where there is a risk of unethical influence. The policy provides guidlines
on how company’s employees and management are allowed to accept
or give gifts, hospitality, product loans, or discounts, participate in trips
or sales competitions, and defines the company's approval process for
them. Additionally, the policy outlines practices such as avoiding conflict
of interest and interactions with authorities.
The company strives to develop its ability to identify potential cases
of corruption or bribery through training and risk management. The
company's principles for combating corruption and bribery are covered
in mandatory annual online training on Code of Conduct, which targets
the entire workforce, including the company's Management team and
CEO. Training was not provided to board members by the company.
The training covers all sections of the Code of Conduct, including topics
related to the Anti-corruption and anti-bribery policy, as well as the
whistleblowing procedure in situations where an employee suspects
misconduct. The company has identified procurement and corporate
sales as the functions most susceptible to corruption and bribery. The
training program covers 100% of the functions assessed as susceptible
to corruption. The sustainability and legal units are responsible for
keeping the training content up to date. The goal of the training is for the
entire workforce to understand and recognize the risks of corruption and
bribery related to their work and to commit to the company's Code of
Conduct. Additionally, corruption-related risks are assessed annually by
each department as part of risk management.
company employees, customers, or other stakeholders can report
their suspicions of corruption or bribery in accordance with the
company's policy on reporting misconduct. The company's legal unit
regularly reports any violations of the principles to the Audit committee
and the Board of directors, as well as to the Audit committee regarding
corrective measures and ongoing investigations.
The scope, responsibilities, and availability of the company's policies
are presented in the section MDR-P Policies adopted to manage material
sustainability matters.
G1-4 Incidents of corruption or bribery
In 2025, the company was unaware of any cases (2024: none), legal
actions or investigations related to corruption involving the company.
In 2025, there were no lawsuits or judgments related to violations of
competition law regulations, cartels, or abuse of a dominant market
position (2024: none).
G1-6 Payment practices
The average time taken by the company to pay an invoice from the date
the contractual or statutory payment term begins was 47 (57) days. The
average is calculated based on the number of days from the document
date of all invoices for the year to the actual payment date. The standard
payment term in the company’s general purchasing terms is 60 days
net, but this is assessed on a case-by-case basis for example, for smaller
suppliers. The company has specific payment dates for paying invoices.
If the due date falls on a weekend, the invoice is paid on the next payment
day, on a weekday. In 2025, 97% (95) of payments were made within the
agreed payment terms, including invoices paid no more than three days
after the due date.
The company has no pending legal proceedings due to late payments.
G1 REPORTING PRINCIPLES FOR METRICS
G1-6 Payment practices
The average time to pay invoices has been updated for comparative data
due to a refinement in the calculation principles. The updated indicator
considers purchase invoices paid in the reporting year. Previously, the
indicator considered invoices by date. In 2024, the average time was 57
days, compared to the previously reported 55 days.
64
REPORT OF THE BOARD OF DIRECTORS
1 CONSOLIDATED STATEMENT OF INCOME 2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR thousand 2025 2024
Profit for the financial year 12,383 -803
Other comprehensive income items:
Conversion differences -101 62
Comprehensive income for the financial year 12,283 -741
Comprehensive income for the financial year attributable to
Equity holders of the company 12 283 -741
EUR thousand Note 2025 2024
Revenue
7.2
Other operating income
7.3
Materials and services
7.4
-436,565
-392,057
Employee benefit expenses
7.5
-35,401
-35,918
Depreciation and amortization
7.7
-6,847
-6,919
Other operating expenses
7.8
-34,442
-32,923
Operating profit
Finance income
7.9
Finance expenses
7.9
-2,588
-2,431
Profit before income taxes 15,281 -1,426
Income taxes
7.10, 7.16
-2,898
Profit for the financial year 12,383 -803
Profit for the financial year attributable to
Equity holders of the company 12,383
-803
Earnings per share calculated from the profit attributable to equity holders
Earnings per share, basic (EUR)
7.11
-0.02
Earnings per share, diluted (EUR)
7.11
-0.02
The notes are an integral part of these financial statements.
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) 2025
65
CONSOLIDATED FINANCIAL STATEMENTS 2025
3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR thousand Note 31 Dec 2025 31 Dec 2024
Non-current assets
Intangible assets
7.13
Goodwill
7.13
Property, plant and equipment
7.14
Right-of-use assets
7.15
Deferred tax assets
7.16
Trade receivables
7.17
Other non-current receivables
7.17
Non-current assets, total 36,351 45,573
Current assets
Inventories
7.18
Trade receivables
7.17
Other receivables
7.17
Income tax receivables
7.17
Accrued income
7.17
Cash and cash equivalents
7.19
Current assets, total 136,824 132,529
Total assets 173,175 178,102
EUR thousand Note 31 Dec 2025 31 Dec 2024
Equity
Share capital
Treasury shares
-1,263 -470
Invested unrestricted equity fund
Translation differences
-12 74
Retained earnings
Profit for the period
-803
Total equity
7.20
Non-current liabilities
Lease liabilities
7.15
Deferred tax liabilities
Liabilities to credit institiutions
7.22.2
Provisions
7.24
Non-current liabilities, total 35,280 39,931
Current liabilities
Lease liabilities
7.15
Liabilities to credit institutions
7.22.2
Advance payments received
7.23
Trade payables
Other current liabilities
7.23
Accrued liabilities
7.23
Provisions
7.23
Income tax liabilities
Current liabilities, total 98,523 110,266
Total liabilities 133,803 150,197
Total equity and liabilities 173,175 178,102
The notes are an integral part of these financial statements.
66
CONSOLIDATED FINANCIAL STATEMENTS 2025
4 CONSOLIDATED CASH FLOW STATEMENT
EUR thousand Note 2025 2024
Cash flow from operating activities
Result before income taxes
-1,426
Depreciation and impairment
7.7
Finance income and costs
7.9
Other adjustments
-516
Cash flow before change in working capital
Change in working capital
Increase (-)/decrease (+) in non-current non-interest-bearing
trade receivables
Increase (-)/decrease (+) in trade and other receivables
Increase (-)/decrease (+) in inventories
-13,773
Increase (+)/decrease (-) in current liabilities
-12,715
-7,075
Cash flow before financial items and taxes
Interest paid
-1,445
-1,861
Interest received
Interest of lease liabilities
-1,149
-745
Income tax paid
-2,049
-46
Cash flow from operating activities
Cash flow from investing activities
Purchases of property, plant and equipment
-1,477
-775
Proceeds from property, plant and equipment
Purchases of intangible assets
-1,300
-992
Cash flow from investing activities -2,770 -1,766
EUR thousand Note 2025 2024
Cash flow from financing activities
Lease liabilities payments
-4,294 -5,149
Lease compensation
Acquisition of treasury shares
-992
Proceeds from long-term loans
Payments of long-term loans
-17,500
Proceeds from short-term loans
Payments of short-term loans
-2,000 -10,808
Cash flow from financing activities -7,064 -7,458
Increase (+) / decrease (-) in cash and cash equivalents 11,745 3,678
Cash and cash equivalents at beginning of the financial year
Translation differences
-56 29
Cash and cash equivalents at end of the financial year
7.19
The notes are an integral part of these financial statements.
67
CONSOLIDATED FINANCIAL STATEMENTS 2025
A
Share capital
B
Treasury shares
C
Invested unrestricted equity fund
D
Fair value reserve
E
Retained earnings
F
Total equity
EUR thousand A B C D E F
Equity 1 Jan 2025 100 -470 26,896 0 1,379 27,905
Profit for the period
Transaction differences
Comprehensive income for the period, total
Acquisition of treasury shares
Disposal of treasury shares -Board fees
Share-based incentives
Transactions with owners, total - -793 0 0 -22 -815
Equity 31 Dec 2025 100 -1,263 26,896 0 13,639 39,372
EUR thousand A B C D E F
Equity 1 Jan 2024 100 -786 27,599 0 1,565 28,479
Result for the period
Transaction differences
Comprehensive income for the period, total
Transfers between items
Disposal of treasury shares -Board fees
Share-based incentives
Transactions with owners, total - 316 -704 0 555 167
Equity 31 Dec 2024 100 -470 26,896 0 1,379 27,905
5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
68
CONSOLIDATED FINANCIAL STATEMENTS 2025
69
CONSOLIDATED FINANCIAL STATEMENTS 2025
70
CONSOLIDATED FINANCIAL STATEMENTS 2025
71
CONSOLIDATED FINANCIAL STATEMENTS 2025
7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
72
CONSOLIDATED FINANCIAL STATEMENTS 2025
73
CONSOLIDATED FINANCIAL STATEMENTS 2025
74
CONSOLIDATED FINANCIAL STATEMENTS 2025
75
CONSOLIDATED FINANCIAL STATEMENTS 2025
76
CONSOLIDATED FINANCIAL STATEMENTS 2025
77
CONSOLIDATED FINANCIAL STATEMENTS 2025
78
CONSOLIDATED FINANCIAL STATEMENTS 2025
79
CONSOLIDATED FINANCIAL STATEMENTS 2025
80
CONSOLIDATED FINANCIAL STATEMENTS 2025
81
CONSOLIDATED FINANCIAL STATEMENTS 2025
82
CONSOLIDATED FINANCIAL STATEMENTS 2025
83
CONSOLIDATED FINANCIAL STATEMENTS 2025
84
CONSOLIDATED FINANCIAL STATEMENTS 2025
85
CONSOLIDATED FINANCIAL STATEMENTS 2025
86
CONSOLIDATED FINANCIAL STATEMENTS 2025
87
CONSOLIDATED FINANCIAL STATEMENTS 2025
88
CONSOLIDATED FINANCIAL STATEMENTS 2025
89
CONSOLIDATED FINANCIAL STATEMENTS 2025
90
CONSOLIDATED FINANCIAL STATEMENTS 2025
91
CONSOLIDATED FINANCIAL STATEMENTS 2025
92
CONSOLIDATED FINANCIAL STATEMENTS 2025
93
CONSOLIDATED FINANCIAL STATEMENTS 2025
8 FINANCIAL STATEMENTS OF PARENT COMPANY (FAS) 2025
INCOME STATEMENT
EUR thousand Note 2025 2024
Revenue
8.2
524,720 466,485
Other operating income
8.3
4,501 636
Materials and services
Materials and services
Purchases during the year -446,283
-376,957
Change in inventories 14,174
-11,490
External services -3,209
-2,600
Materials and services total -435,317 -391,047
Employee benefit expenses
Salaries and fees
8.4, 8.5
-27,486
-28,067
Social security
Pension expenses
8.4, 8.5
-4,871
-5,022
Other social security expenses
8.4, 8.5
-835
-681
Employee benefit expenses total -33,193 -33,770
Depreciation and amortization
Depreciation according to plan
8.6
-2,543
-2,392
Depreciation and amortization total -2,543 -2,392
Other operating expenses
8.7
-41,219 -40,548
Operating result 16,949 -635
EUR thousand Note 2025 2024
Financial income and expenses
Other interest and financing income
From companies of the same group
8.8
27 27
From others
8.8
477 394
Interest expenses and other financial expenses
For others
8.8
-1,442 -1,675
Financial income and expenses total -938 -1,254
Result before appropriations and taxes 16,011 -1,889
Appropriations
Change in depreciation reserve
8.20
-803 -183
Group contribution -1,261
00
Appropriations total -2,065 -183
Income taxes
Taxes for the financial year
8.9
-2,530 -
Taxes of previous fiscal years
8.9
-54 -3
Result for the financial year 11,363 -2,076
94
FINANCIAL STATEMENTS (FAS)
ASSETS
EUR thousand Note 2025 2024
NON-CURRENT ASSETS
Intangible assets
Development costs
8.10
955
506
Immaterial rights
8.10
0
1
Other intangible assets
8.10
2,770
3,000
Prepaid expenses
8.10
465
782
Total intangible assets 4,191 4,289
Tangible assets
Land and water areas
8.11
2
2
Machines and hardware
8.11
6,015
4,328
Other tangible assets
8.11
222
317
Advance payments and unfinished purchases
8.11
31
817
Total tangible assets 6,270 5,464
Investments
Shares in companies of the same group
8.12
6,149
6,049
Other shares and participations 0
0
Total investments 6,149 6,049
NON-CURRENT ASSETS TOTAL 16,610 15,803
CURRENT ASSETS
Inventories
8.16
65,502 51,328
Long-term receivables
Accounts receivable
8.13
-
6,618
Receivables from companies of the same group
8.14
1,830
1,830
Other receivables
8.13
471
492
Total long-term receivables 2,301 8,940
Short-term receivables
Accounts receivable
8.13
5,604
30,475
Receivables from companies of the same group
8.14
1,327
725
Other receivables
8.15
4,735
4,413
Accruals
8.15
12,897
10,058
Total short-term receivables 24,564 45,671
Cash and cash equivalents
8.17
45,568 34,439
CURRENT ASSETS TOTAL 137,935 140,378
ASSETS TOTAL 154,545 156,181
EQUITY AND LIABILITIES
EUR thousand Note 2025 2024
EQUITY
Share capital
100
100
Invested unrestricted equity fund
27,493
27,493
Retained earnings
3,070
6,131
Result for the financial year
11,363
-2,076
Total equity
8.18
42,025 31,648
Appropriations
Depreciation difference
8.20
2,179
1,376
Appropriations total 2,179 1,376
Provisions
Other provisions
8.24
342
302
Provisions total 342 302
Long-term liabilities
Long-term debt
Loans from financial institutions
8.23
15,378
17,000
Total long-term liabilities 15,378 17,000
Short-term debt
Loans from financial institutions
8.21
2,094
2,000
Received prepayments
4,136
5,110
Trade payables
58,549
68,591
Liabilities to companies of the same group
8.22
1,422
-
Other short-term liabilities
8.21
11,076
10,702
Accrued liabilities
8.21
16,817
19,451
Income tax liabilities
8.21
527
-
Total short-term liabilities 94,621 105,855
LIABILITIES TOTAL 109,999 122,855
EQUITY AND LIABILITIES TOTAL 154,545 156,181
BALANCE SHEET
95
FINANCIAL STATEMENTS (FAS)
EUR thousand 2025 2024
Cash flow from operating activities
Result before income taxes 13,947
-2,072
Adjustments
Depreciations and amortizations 2,543
2,392
Finance income and expense 938
1,254
Other adjustments -144
1,052
Cash flow before change in working capital 17,283 1,052
Change in working capital
Increase (-)/decrease (+) in non-current non-interest-bearing receivables 6,639
1,086
Increase (-)/decrease (+) in trade and other receivables 21,108
5,143
Increase (-) /decrease (+) in inventories -14,174
11,490
Increase (+) /decrease (-) in accounts payable and other current liabilities -11,849
-6,245
Cash flow before financial items and taxes 19,007 12,525
Interest paid -705
-1,513
Other finance expenses paid -743
-337
Interest received 504
421
Income tax paid -2,057
-41
Cash flow from operating activities 16,006 11,056
CASH FLOW STATEMENT
EUR thousand 2025 2024
Cash flow from investing activities
Investments in reserve for invested non-restricted equity capital -100
-1,200
Purchase of property, pland and equipment -1,477
-775
Sales proceeds from tangible assets -1,300
-992
Cash flow from investing activities -2,877 -2,966
Cash flow from financing activities
Withdrawals of long-term loans -
18,000
Repayments of long-term loans -
-17,500
Withdrawals of short-term loans -
8,000
Repayments of short-term loans -2,000
-10,750
Cash flow from financing activities -2,000 -2,250
Increase (+) / decrease (-) in cash and cash equivalents 11,129 5,840
Cash and cash equivalents at beginning of financial year 34,439
28,600
Cash and cash equivalents at end of reporting period 45,568
34,439
96
FINANCIAL STATEMENTS (FAS)
8.1 Notes on the preparation of the financial
statements
Verkkokauppa.com Oyj is the parent company of the group, which is
headquartered in Helsinki, Finland.
Verkkokauppa.com Oyj’s financial statements have been prepared
in accordance with local requirements and those generally accepted in
Finland in accordance with accounting principles (Finnish Accounting
Standards, FAS). The financial statements are presented in euros.
When preparing the financial statements, the company’s management
is required, in accordance with accordance with applicable regulations
and good accounting practice, to make estimates and assumptions that
affect the valuation and timing of recognition of items in the financial
statements. Realized figures may differ from the estimates made.
Net sales
Net sales is calculated by deducting direct taxes and other sales related
adjustments from gross sales. Credit losses are reported in other
operational expenses.
The company sells various types of in-store, online and media advertising
visibility to suppliers, and some suppliers pay marketing support based on
the company’s own marketing services agreed upon jointly. The company
recognises the related income as revenue, and the corresponding
purchases are presented under purchases in the income statement.
Income from customer financing services is included in revenue.
Revenue recognition
Revenue is recognized at the time of product delivery.
Items in foreign currencies
Transactions in currencies other than EUR are translated using the
transaction date exchange rate.
At year-end, the outstanding foreign currency receivables and liabilities
are translated to EUR using the closing date average exchange rates.
Exchange differences arising from the valuation of trade receivables
are recorded as adjustments to sales, and exchange differences arising
from the valuation of trade payables are recorded as adjustments to
purchases. Exchange differences arising from the valuation of other
receivables and liabilities are recorded in financial exchange differences.
Other operating income
Other operating income includes, among other items, gains on disposal
of fixed assets and income from subleasing.
Intangible and tangible assets
Intangible and tangible assets are measured at their historical cost, less
depreciation according to plan. Planned depreciation is recorded on a
straight-line basis over the useful life of an asset. IT-applications produced
for the company’s own use have been capitalized in other intangible
assets and include the direct personnel costs of the development work.
These related staff expenses have been reclassified from the profit and
loss statement into other intangible assets. The book value of the fixed
assets does not contain any appreciations. Maintenance and repair
expenses are recognized as expenses in the financial year in which
they occur. Significant refurbishment costs for rented apartments are
capitalized as tangible assets and depreciated over their useful life.
The carrying value of land and water areas as well as the carrying
value of other tangible assets are based on historical costs.
No write-downs have been done on land and water areas.
The company has capitalized development costs in accordance with
Section 5:8 of the Accounting Act.
The periods for planned depreciations are as follows:
Intangible rights 5 years
Research and Development 3–5 years
Machinery and Equipment 3–10 years
Upgrades to premises 5–10 years
Accounts receivables
The expected credit losses are deducted from the value of the trade
receivables.
The expected credit losses are recognised based on the ageing and
the origin of the trade receivable.
All over 90 days past-due trade receivables are recognised entirely as
credit lossess.
Receivables from companies of the same group
The company has given a loan to a company belonging to the group. The
amount of the loan is 1,830,000 euros. The loan and its interest are paid
back at once on the repayment date. The loan period was originally one
year, but the repayment date has been postponed by updating the loan
terms to June 2022, December 2023, December 2024, and December
2025. The current repayment date is 31 December 2027. The interest
rate on the loan is 1.50%. The loan is unsecured.
Other receivables
Payment card receivables are presented under other receivables in the
balance sheet.
Income taxes
The income taxes include taxes based on the Verkkokauppa.com Oyj’s
taxable result.
Deferred taxes
Deferred taxes are not booked in the financial statements.
Provisions
The Company recognizes a provision for product warranties it has
granted. The provision is estimated based on historical warranty costs
and assumptions regarding the failure rate of products sold.
NOTES TO THE FINANCIAL STATEMENTS 31.12.2025
97
FINANCIAL STATEMENTS (FAS)
Inventory valuation
Inventories are stated in the balance sheet at their acquisition cost or at
the lower acquisition price and probable selling price.
Group contribution
The company has given its subsidiary e-ville.com distribution Oy a
group contribution of 1,261,454.00 euros.
Share incentive system
The company has a performance-based share incentive plan for the
years 2023–2027. The Rewards paid under the plan are settled by the
end of May of the year following the end of each earning period. A portion
of the share reward is withheld in cash to cover the taxes and tax-like
charges incurred by the participants. In the parent company’s financial
statements, this portion is measured at the fair value of the shares at
the grant date and recognized as personnel expenses upon delivery of
the shares. Further details on the plan are provided in the consolidated
financial statements under Note 7.12 Share-based Payments.
8.2 Revenue
Geographical distribution of revenue
EUR thousand 2025 2024
Finland 487,090
439,987
EU 29,961
25,286
Rest of the world 7,669
1,212
Revenue by external customer location 524,720 466,485
8.3 Other operating income
EUR thousand 2025 2024
Lease income from subleasing right-of-use
assets
359
132
Other income 4,141
504
Other operating income, total 4,501 636
On September 4, 2025, Verkkokauppa.com Oyj completed the sale
of its consumer finance business to Norion Bank AB and its payment
solution unit, Walley. The final price of the transaction was 32.6 million
euros. The transaction generated a gain on disposal of 3.2 million euros,
which is included in the item Other income.
8.4 Employee benefits
EUR thousand 2025 2024
Salaries and fees
28,321 28,846
Statutory pension costs 5,022 5,165
Other personnel-related costs
860 701
Total personnel costs before activation 34,204
34,712
Capitalized employee benefits for
the financial year
Wages and salaries -835 -779
Statutory pension costs
-150 -143
Other personal costs
-25 -20
Capitalized employee benefits for
the financial year
-1,010
-942
Total personnel expenses 33,193 33,770
The capitalized personnel costs mainly relate to the development of the
Company’s enterprise resource planning system, which is described
in more detail in Note 8.10 Intangible Assets, as well as to the logistics
automation of the Jätkäsaari warehouse.
2025 2024
Average number of personnel
in the financial year
588
631
The number of personnel includes both full-time and part-time employees.
The figure does not include temporary agency workers.
Information on the management’s employment benefits is presented
in Note Management remuneration 8.5.
98
FINANCIAL STATEMENTS (FAS)
8.5 Management remuneration
EUR Thousand CEO
Manage-
ment team
2025,
total CEO
Manage-
ment team
2024,
total
Short-term
employee
benefits
Fixed basic
salaries and
fringe benefits
424 1,283 1,706
434
1,448
1,882
Incentive bonus 19 86 105
55
90
146
Statutory
pension
78 240 317 86 239
325
Share-based
payments
Share-based
payments
50 32 82 30 27
56
Total
570 1,640 2,210 605 1,804 2,409
Shareholding,
pcs
119,000
98,651 217,651
119,000
44,352 163,352
% of shares 0.26% 0.22% 0.48% 0.26% 0.10% 0.36%
The table above presents the salaries and fees of the CEO and the
Executive Management Team, as well as the number of shares held and
their ownership as a percentage of the total share capital. The amounts
presented are on an accrual basis. Share-based payments are based on
the year-end estimate of their expected outcome. The accrual-based
share-based payment includes the expense recognised for the financial
year regardless of the timing of the share transfer.
Board fees
During the financial year 2025, the company transferred 37,009 (59,374)
treasury shares for the payment of the fees.
EUR thousand 2025 2024
Board members 31 Dec 2025
Arja Talma, Chair of the Board,
Chair of the Remuneration Committee
106
88
Samuli Seppälä 44 35
Robin Bade 48 39
Kati Riikonen 50 41
Henrik Pankakoski 48 39
Enel Sintonen, Chair of the Audit Committee 56 38
Irmeli Rytkönen 50 32
Former Board members
Johan Ryding (until 4 April 2024) - 9
Kai Seikku (until 4 April 2024) - 9
Remuneration of Board of Directors, total 400 330
Board members’ shareholdings on 31.12.
Shareholding, pcs 2025 2024
Arja Talma, Chair of the Board,
Chair of the Remuneration Committee
65,391 54,817
Samuli Seppälä 12,519,000
13,347,000
Robin Bade 19,116 13,829
Kati Riikonen 19,116 13,829
Henrik Pankakoski 19,116 13,829
Enel Sintonen, Chair of the Audit Committee
11,946
6,659
Irmeli Rytkönen 11,946 6,659
Remuneration of Board of Directors, total 12,665,631 13,456,622
% of shares 2025 2024
Arja Talma, Chair of the Board,
Chair of the Remuneration Committee
0.14% 0.12%
Samuli Seppälä 27.60% 29.43%
Robin Bade 0.04% 0.03%
Kati Riikonen 0.04% 0.03%
Henrik Pankakoski 0.04% 0.03%
Enel Sintonen, Chair of the Audit Committee
0.03%
0.01%
Irmeli Rytkönen 0.03% 0.01%
Remuneration of Board of Directors, total 27.92% 29.66%
The tables above show board members shareholdings in number of
shares and ownership interests.
99
FINANCIAL STATEMENTS (FAS)
8.6 Depreciation and amortization
EUR thousand 2025 2024
Intangible assets
Development costs 374 456
Other intangible assets 1,025 825
Amortization of intangible assets, total 1,398 1,281
Tangible assets
Machinery and equipment 1,030 999
Other tangible assets 114 112
Depreciation of tangible assets, total 1,144 1,111
Depreciation and amortization, total 2,543 2,392
8.7 Other operating expenses
EUR thousand 2025 2024
Premises maintenance and operation expenses 12,056 12,383
Financial transactions expenses 2,195
1,553
Marketing 7,804
6,900
Administrative services 11,728 10,250
Other expenses 7,436 9,462
Other operating expenses, total 41,219 40,548
Auditor fees
EUR thousand 2025 2024
Statutory audit 158 170
Assignments referred to in § 1.1,2 of the Audit Act
Rewards for assurance of sustainability
reporting
102 13
Other assignments referred to in the
aforementioned section of the law
11 10
Fees for other services 11 -
Auditors’ fees, total 282 193
The auditing firm chosen by the general meeting is Pricewaterhouse-
Coopers Oy. The non-auditing services performed by Pricewaterhouse-
Coopers Oy totalled 125 thousand euros.
8.8 Finance income and expenses
Finance income
EUR thousand 2025 2024
Interest income 477 394
Interest income from companies of
the same group
27
27
Total
504 421
Finance expenses
EUR thousand 2025 2024
Other interest expenses -27 174
Other finance expenses 712 311
Exchange rate differences on cash and cash
equivalents
31 26
Interest on financial institution loans
726 1,165
Total
1,442 1,675
In addition to financial income and costs, exchange rate differences
have been recognized as adjustments to purchases for the financial
year.
8.9 Income taxes
EUR thousand 2025 2024
Current taxes 2,530
0
Taxes for previous accounting periods 54 3
Income taxes, total 2,584 3
100
FINANCIAL STATEMENTS (FAS)
8.10 Intangible assets
EUR thousand
Development
costs
Other intangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2025 4,360 5,608 782 10,751
Increases - - 1,300 1,300
Transfers between items 823 794 -1,617 -
Cost 31 Dec 2025 5,183 6,403 465 12,051
Accumulated amortization and impairment 1 Jan 2025
-3,855 -2,607 - -6,462
Amortization for the financial year -374 -1,025 - -1,398
Accumulated amortization and impairment 31 Dec 2025
-4,228 -3,632 - -7,860
Carrying amount 1 Jan 2025 506 3,000 782 4,289
Carrying amount 31 Dec 2025 955 2,771 465 4,191
EUR thousand
Development
costs
Other intangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2024
4,165
5,252
343
9,759
Increases
195
147 649 992
Transfers between items
-
209 -209 -
Cost 31 Dec 2024
4,360
5,608 782 10,751
Accumulated amortization and impairment 1 Jan 2024
-3,398
-1,782 - -5,181
Amortization for the financial year
-456
-825 - -1,281
Accumulated amortization and impairment 31 Dec 2024
-3,855
-2,607 - -6,462
Carrying amount 1 Jan 2024 766 3,470 343 4,579
Carrying amount 31 Dec 2024 506 3,000 782 4,289
8.11 Property, plant and equipment
EUR thousand Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress Total
Cost 1 Jan 2025
2 13,982 3,169 817 17,971
Increases
- 1,029 19 903 1,951
Disposals
- -1 - - -1
Transfers between items
- 1,690 - -1,690 -
Cost 31 Dec 2025
2 16,700 3,189 31 19,921
Accumulated depreciation 1 Jan 2025
- -9,655 -2,852 -12,507
Depreciation for the financial year
- -1,030 -114 -1,144
Accumulated depreciation 31 Dec 2025
- -10,685 -2,966 -13,651
Carrying amount 1 Jan 2025 2 4,328 317 817 5,464
Carrying amount 31 Dec 2025 2 6,015 222 31 6,270
EUR thousand Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress
Total
Cost 1 Jan 2024
2 13,421 3,054 720 17,196
Increases
- 562 38 175 775
Transfers between items
- - 78 -78 -
Cost 31 Dec 2024
2 13,982 3,169 817 17,971
Accumulated depreciation 1 Jan 2024
- -8,656 -2,740 - -11,396
Depreciation for the financial year
- -999 -112 - -1,111
Accumulated depreciation 31 Dec 2024
- -9,655 -2,852 - -12,507
Carrying amount 1 Jan 2024 2 4,764 314 720 5,800
Carrying amount 31 Dec 2024 2 4,328 317 817 5,464
101
FINANCIAL STATEMENTS (FAS)
8.12 Investments
EUR thousand 31.12.2025 31.12.2024
Holdings in group companies
Aqcuisition costs 1.1. 6,049
6,249
Increases 100
800
Decreases -
-1,000
Carrying amount 31 Dec 6,149 6,049
Ownership of shares% Country
Arc Distribution Oy Finland 100%
100%
e-ville.com distribution Oy Finland 100%
100%
Digi Electronics Ltd Hong Kong 100%
100%
Digital Trading (shenzhen) Co. Ltd China 100%
100%
8.13 Trade receivables and other receivables
EUR thousand 2025 2024
Non-current
Trade receivables -
6,618
Other non-current receivables 471
492
Non-current receivables, total 471 7,110
Current
Trade receivables 5,604
30,475
Other receivables 4,735
4,413
Current receivables, total 10,339 34,888
Non-current and current receivables, total 10,810 41,998
8.14 Receivables from companies of the same group
EUR thousand 2025 2024
Group loan receivables, long-term 1,830 1,830
Group accounts receivable 1,222 639
Group accruals -
7
Group interest receivables 106 78
Receivables from companies of the same
group total
3,157 2,555
8.15 Accruals
EUR thousand 2025 2024
Accruals
Other accruals 748 1,010
Accrued invoices 1,540 1,373
Support for purchases 10,609 7,676
Accruals 12,897 10,058
8.16 Inventory
EUR thousand 2025 2024
Goods 65,502 51,328
Total 65,502 51,328
8.17 Cash and cash equivalents
EUR thousand 2025 2024
Cash in hand and at banks 45,568 34,439
Total 45,568 34,439
8.18 Equity
EUR thousand 2025 2024
Equity 1.1. 100 100
Equity 31.12. 100 100
Invested unrestricted equity fund at the
beginning of the period
27,493 28,196
Transfer to retained earnings - -704
Invested unrestricted equity fund at
the end of the period 31.12.
27,493 27,493
Profit/Loss of the accounting period 1.1. 4,056 5,428
Transfer to retained earnings - 704
Acquisition of own shares -986 -
Transfer of own shares 200 -
Share payment -200 -
The result of the financial year 11,363 -2,076
Profit/Loss of the accounting period 31.12.
14,433 4,056
Equity total 42,025 31,648
Restricted equity at the end of the period 100 100
Unrestricted equity at the end of the period 41,925 31,548
Unrestricted and restricted equity total 42,025 31,648
8.19 Calculation of distributable funds
EUR thousand 2025 2024
Invested unrestricted equity fund 27,493 27,493
Result from Previous years 3,070 6,131
Capitalization of development costs -955 -1,155
Result of the accounting period 11,363 -2,076
Distributable funds total 40,970 30,393
102
FINANCIAL STATEMENTS (FAS)
8.20 Appropriations
EUR thousand 2025 2024
Appropriations 1 Jan 1,376
1,193
Increases in appropriations 803
183
Appropriations 31 Dec 2,179 1,376
8.21 Other current liabilities and accrued liabilities
EUR thousand 2025 2024
Accrued personnel expenses 7,4 68
6,749
Other accrued liabilities 5,034
7,965
Items on delivery 3,053
3,625
Accrued purchases 1,374
1,185
Withholding tax liability 736
708
VAT liability 10,228
9,922
Income tax liability
527
0
Other current liabilities and accrued
liabilities, total
28,420 30,153
8.22 Liabilities to companies of the same group
EUR thousand 2025 2024
Group accounts payable 160
-
Group accrued liabilities 1,261
-
Liabilities to companies of the same group 1,422 -
8.23 Long-term debt capital
EUR thousand 2025 2024
Loans from financial institutions 15,378
17,000
Long-term debt capital 15,378 17,000
8.24 Provisions
EUR thousand 2025 2024
Provisions 1 Jan 302 1,008
Increases in provisions 39 -
Decreases in provisions - -705
Provisions 31 Dec 342 302
8.25 Guarantees and commitments
EUR thousand 2025 2024
Collateral given for own commitments
Mortgages -
27,001
Guarantees 1,218
1,345
Other commitments and contingent liabilities
Leasing liabilities 311 25
Rent liabilities 27,810 39,340
Guarantees and commitments 29,339 67,711
Credit limit agreements
The total amount of the credit limit 25,000
25,000
Credit limit in use 0
0
Other limits
The total amount of the issued limit 6,000
6,000
Limit in use 1,218 1,630
The total amount of the granted credit limit is EUR 31 million, of which
the amount shown above was in use at the end of the financial period.
Secured loans include covenant conditions. The agreed special
conditions are related to the group’s solvency and liquidity and are
determined based on the net debt/EBITDA ratio and the net debt ratio.
Violation of covenants can increase financing costs or lead to the
termination of loans. The covenant conditions have been met and are
being monitored. The covenant terms of financial institution loans are
explained in more detail in note 7.22.2 of the consolidated financial
statements.
103
FINANCIAL STATEMENTS (FAS)
SIGNATURES FOR THE FINANCIAL STATEMENTS AND THE BOARD OF DIRECTORS’ REPORT
Arja Talma
Chair of the Board
Robin Bade
Board member
Henrik Pankakoski
Board member
Irmeli Rytkönen
Board member
Panu Porkka
CEO
Samuli Seppälä
Board member
Enel Sintonen
Board member
Kati Riikonen
Board member
The financial statement prepared in compliance with the applicable
financial statement regulations give a true and fair view of the assets,
liabilities, financial position, and profit or loss of the company and the
group formed by the entities included in its consolidated financial
statements.
The Report by the Board of Directors presents a fair review of the
development and performance of, on the one hand, the company,
and on the other hand, the companies included in its consolidated
financial statements, as well as a description of the significant risks and
uncertainties and the company’s position.
The sustainability statement included in the Report by the Board
of Directors has been prepared in compliance with the sustainability
reporting standards referred to in chapter 7, section 2, paragraph 8 of
the Finnish Accounting Act, as well as Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council (Taxonomy
Regulation).
Helsinki 12
th
March 2026
104
SIGNATURES FOR THE FINANCIAL STATEMENTS AND THE BOARD OF DIRECTORS’ REPORT
We have performed a reasonable assurance engagement on the
financial statements (743700QZE6B52SHHTV75-2025-12-31-1-en.zip)
of Verkkokauppa.com Oyj (business identity code 1456344-5) that have
been prepared in accordance with the Commission’s regulatory technical
standard for the financial year 01.01.2025-31.12.2025.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director are responsible for the
preparation of the company’s report of 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 the ESEF financial statements and
the audited financial statements.
The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable
the preparation of ESEF financial statements in accordance 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 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 (Revised).
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
• 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 Verkkokauppa.com Oyj (743700QZE6B52SHHTV75-
2025-12-31-1-en.zip) for the financial year 01.01.2025–31.12.2025 have been
tagged, in all material respects, in accordance with the requirements of the
Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of
Verkkokauppa.com Oyj for the financial year 01.01.2025–31.12.2025 has
been expressed in our auditor’s report dated 12.03.2026. With this report
we do not express an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki 12 March 2026
PricewaterhouseCoopers Oy
Authorised Public Accountants
Mikko Nieminen
Authorised Public Accountant (KHT)
INDEPENDENT AUDITOR’S REPORT ON THE ESEF FINANCIAL STATEMENTS OF
VERKKOKAUPPA.COM OYJ (Translation of the Finnish Original)
To the Board of Directors of Verkkokauppa.com Oyj
105
INDEPENDENT AUDITOR’S REPORT ON THE ESEF FINANCIAL STATEMENTS OF VERKKOKAUPPA.COM OYj
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT
(Translation of the Finnish Original)
To the Annual General Meeting of Verkkokauppa.com Oyj
We have performed a limited assurance engagement on the group
sustainability report of Verkkokauppa.com Oyj (business identity code
1456344-5) 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 reporting
period 1.1–31.12.2025.
Opinion
Based on the procedures we have performed and the evidence we have
obtained, nothing has come to our attention that causes us to believe
that the group sustainability report does not comply, in all material
respects, with
1) the requirements laid down in Chapter 7 of the Accounting Act
and the sustainability reporting standards (ESRS), and
2) the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Verkkokauppa.com
Oyj has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability
report with digital XBRL sustainability tags in accordance with
Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because
sustainability reporting companies have not had the possibility to
comply with that requirement in the absence of requirements for the
tagging of sustainability information in the ESEF regulation or other
European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability report 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 Group Sustainability Auditor section
of our report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
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.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director of Verkkokauppa.com
Oyj are responsible for:
• the group sustainability report and for its preparation and
presentation in accordance with the provisions of Chapter 7 of the
Accounting Act, including the process that has been defined in the
sustainability reporting standards and in which the information for
reporting in accordance with the sustainability reporting standards
has been identified,
• the compliance of the group sustainability report with the
requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088, and for
• such internal control as the Board of Directors and the Managing
Director determine is necessary to enable the preparation of a
group sustainability report that is free from material misstatement,
whether due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability
Report
In reporting forward-looking information in accordance with ESRS,
management of the Company is required to prepare the forward-looking
information on the basis of assumptions that have been disclosed in
the sustainability report about events that may occur in the future and
possible future actions by the Group. Actual out-comes are likely to be
different since anticipated events frequently do not occur as expected.
106
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT
Responsibilities of the Authorised Group Sustainability
Auditor
Our responsibility is to perform an assurance engagement to obtain
limited assurance about whether the group sustainability report 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 report.
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 report, 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 example the following:
• We interviewed the the individuals responsible for collecting and
reporting the information contained in the group sustainability
report at the group level to gain an understanding of the
sustainability reporting process and the related internal controls
and information systems.
• We familiarised ourselves with the background documentation and
records prepared by the company where applicable, and assessed
whether they support the information contained in the group
sustainability report.
• We assessed the company’s double materiality assessment
process in relation to the requirements of the ESRS standards, as
well as whether the information provided about the assessment
process complies with the ESRS standards.
• We assessed whether the sustainability information contained in
the group sustainability report complies with the ESRS standards.
• Regarding the EU taxonomy information, we gained an
understanding of the process by which the company has identified
the group’s taxonomy-eligible and taxonomy-aligned economic
activities, and we assessed the compliance of the information
provided with the regulations.
Helsinki 12 March 2026
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Mikko Nieminen
Authorised Sustainability Auditor
107
ASSURANCE REPORT ON THE SUSTAINABILITY REPORT
VERKKOKAUPPA.COM
is an e-commerce pioneer that stands passionately on the customer’s side.
Verkkokauppa.com accelerates the transition of commerce to online with
Finland’s fastest deliveries and ultimate convenience. The company leads
the way by offering one-hour deliveries to approximately 2 million customers,
a winning assortment and probably always cheaper prices. Every day, the
company strives to find more streamlined ways to surpass its customers’
expectations and to create a new norm for buying and owning.
Verkkokauppa.com was founded in 1992 and has been online since day one. The company’s
revenue in 2025 was EUR 526.5 million and it employs around 600 people. Verkkokauppa.com’s
shares are listed on the Nasdaq Helsinki stock exchange.
linkedin.com/company/verkkokauppa.com
facebook.com/verkkokauppacom/