ANNUAL REPORT
This is Suominen
Net sales, EUR million
462.3
Employees
736
Comparable EBITDA,
EUR million
17.0
Share of new products
of net sales
34%
Suominen manufactures nonwovens as roll
goods for wipes and other applications. Our
vision is to be the frontrunner for nonwovens
innovation and sustainability. The end products
made of Suominen’s nonwovens are present in
people’s daily life worldwide. Suominen’s net
sales in 2024 were EUR 462.3 million, and we
have over 700 professionals working in Europe
and in the Americas. Suominen’s shares are listed
on Nasdaq Helsinki.
This is Suominen…2
Suominen today…3
President & CEO’s review…4
Financial targets…7
Key figures…8
How Suominen creates value…9
Operating environment…12
Strategy…14
Sustainability at Suominen...17
Corporate Governance…21
Corporate Governance Statement…22
Remuneration Report…32
Tax management, tax strategy and footprint...41
Board of Directors…43
Executive Management Team…44
Report by the Board of Directors and Financial Information…45
Report by the Board of Directors…48
Consolidated financial statements (IFRS)…119
Key ratios per share…184
Parent company financial statement (FAS)…188
Proposal by the Board of Directors for distribution of funds…201
Auditor’s report…202
Assurance report on the Sustainability Statement…206
Independent auditor’s report on ESEF consilidated financial
statements…209
Key ratios…211
Information for shareholders…217
Contents
This is
Suominen
Suominen today…3
President & CEO’s review…4
Financial targets…7
Key figures…8
How Suominen creates value…9
Operating environment…12
Strategy…14
Sustainability at Suominen…17
2 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
FINLAND 155
Nakkila
Helsinki, Head office
ITALY 103
Cressa
SPAIN 71
Alicante
BRAZIL 62
Paulínia
USA 345
Green Bay
Windsor Locks
Bethune
Suominen today
Suominen manufactures nonwovens as roll goods for
wipes and other applications. The end products made
of Suominen’s nonwovens are present in people’s daily
life worldwide. Suominen’s net sales in 2024 were
EUR 462.3 million, and we have over 700 professionals
working in Europe and in the Americas. Suominen’s
shares are listed on Nasdaq Helsinki.
Suominen has two business areas, the Americas and
EMEA. In 2024, net sales of the Americas business area
amounted to EUR 287.9 million and the EMEA business
area to EUR 174.4 million.
1_columns
EMEA 38%
38
Americas 62%
62
Net sales by business area
EMEA 38%
Americas 62%
462.3
EUR million
1
Suominen has two
business areas, the
Americas and EMEA.
3Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
In 2024 we encountered both successes and
difficult moments. We saw gradual improvement
driven by both commercial and operational
excellence in the beginning of the year, but the
second half of the year was challenging for us.
President &
CEO’s review
4 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
We encountered operational issues and took immediate
actions to address them. The recovery was fast and
there was no impact on our customer relationships.
Nevertheless, we endured unplanned production
downtime and additional expenses.
Regardless of the challenges, we reached our EBITDA
guidance, as our comparable EBITDA increased from the
previous year and was EUR 17.0 million (+8%). The main
contributor to the improvement was higher sales margins
Comparable EBITDA,
EUR million
17.0
Share of new products of
net sales was
34%
Net sales, EUR million
462.3
Sales of sustainable products
increased*
87%
* Compared to base year 2019
driven by the actions we took in commercial excellence.
Our net sales in 2024 were EUR 462.3 million (+2.5%).
We will continue to take determined actions to improve
our financial and operational efficiency.
Sustainability and innovation at the core of
everything we do
The cornerstones of our strategy are sustainability and
innovations, and we continuously develop our capabilities,
We will continue to take
determined actions to
improve our financial and
operational efficiency.
5Suominen Annual Report 2024
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offerings and operations accordingly – especially in terms
of sustainability.
Sustainability is a priority for our customers and
other stakeholders alike. The wiping materials for the
nonwovens market is evolving rapidly and growing fast,
with a strong shift toward more sustainable alternatives.
Aligned with our strategy, we have set targets to increase
sales of sustainable products and to continuously develop
new environmentally friendly nonwoven materials.
We strive to enable our customers to enhance their
sustainability efforts mainly through our new product
offering and contribute to a more sustainable future. In
2024, we increased the sales of sustainable products by
87%, exceeding our target of a 50% increase compared to
the base year 2019. Our target is also to launch over 10
sustainable products annually, and in 2024, we launched
11 such products.
Aligned with our strategy and vision to be the
frontrunner in sustainability and innovation in the
nonwoven arena, we made investments during the year
to enhance our capabilities in sustainable products.
In August, we announced an investment for a new
production line at our site in Alicante, Spain. The EUR
20 million investment addresses the growing demand
for sustainable nonwovens in Europe, with completion
expected at the end of 2025. Earlier, in May, we
announced plans to upgrade a production line in Bethune,
South Carolina, USA, further strengthening our leadership
and capabilities in sustainable nonwovens in the Americas
market. The project is on track, targeted to be completed
in the first half of 2025.
Our strong ability to innovate and respond to market
needs and trends is reflected in the share of new products
of our net sales, which is 34%. By new products, we mean
products launched less than three years ago.
Occupational safety is a priority for us, and our goal is
zero accidents. In 2024, we had 4 lost time accidents.
We initiated a safety awareness campaign to highlight the
importance of safety procedures.
Strengthening employee engagement is another key
people-related target for us. In 2024, we conducted our
fifth consecutive global employee engagement survey.
The response rate was good, and the results help us
identify factors that are positively affecting employee
engagement as well as areas where we still have
opportunities for improvement.
In 2024, we took part in the EcoVadis sustainability
assessment for the third time and improved our score
from silver to gold level. The result places Suominen in the
top 1% of companies in the manufacture of other textiles
industry and in the top 5% of all companies in all industries
rated by EcoVadis.
Towards the future
Looking ahead, we see that the market demand continues
to be solid. However, the competition has tightened due
to the geopolitical tensions and increased imports from
low-cost countries. We have a comprehensive portfolio
of new products which partly mitigates the effects of the
imports and we are currently investing in our product lines
to be able to further increase the share of new and more
sustainable products in our sales mix. We continue to
improve the overall effectiveness of our organization and
ways of working.
I want to extend my heartfelt thanks to our shareholders,
customers, and partners for their invaluable collaboration.
Above all, I want to express my gratitude to our employees
for their commitment and contributions. Together, with
determination and a shared vision, I am confident that we
will continue to achieve our goals and reach new heights.
Tommi Björnman
President & CEO
In 2024, we took part in
the EcoVadis sustainability
assessment for the third time
and improved our score from
silver to gold level.
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EBITDA margin
by 2025:
above
12%
Net sales growth
during the period:
above relevant
market growth
Gearing
during
the period:
40–80%
including the effect of
IFRS 16 Leases
2_columns
Net sales
2022 493.3
2023 450.9
2024 462.3
Net sales, EUR million
0
100
200
300
400
500
2022 2023 2024
462.3
450.9
493.3
EUR
million
1
17.0
0
1
2
3
4
5
0
5
10
15
20
2022
2023
2024
15.8
15.3
3_columns and line
2022 15.3 3.1
2023 15.8 3.5
2024 3.7
EUR
million %
Comparable EBITDA and EBITDA margin
3_2024 column
2024
17
2
4_columns
Gearing, %
2022 37.4
2023 35.3
2024 51.7
Gearing, %
0
10
20
30
40
50
60
2022 2023 2024
51.7
35.3
37.4
4
Financial targets
Targets 2020–2025
How to get there?
GROWTH PROFITABILITY GEARING
Focus on fast-growing sustainable products
category
Innovation and launching of new products to
capture market share
Targeted investments to improve capabilities
and increase capacity
Effective utilization of production lines
Margin improvement through new products
as well as production and raw material
efficiency
Continued fixed cost control
Balanced investment plan
Healthy cash flow from operations
7Suominen Annual Report 2024
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Key figures
FINANCIAL 2024 2023
Net sales, EUR million 462.3 450.9
Comparable EBITDA, EUR million 17.0 15.8
EBITDA, EUR million 17.2 11.2
Comparable operating profit, EUR million -1.4 -2.8
Profit for the period, EUR million -5.3 -12.8
Earnings per share, EUR -0.09 -0.22
Dividend, EUR 0.00* 0.10
Cash flow from operations, EUR million 3.9 30.7
Cash flow from operations per share, EUR 0.07 0.53
Capital expenditure, EUR million 16.0 11.2
Equity ratio, % 37.9 39.5
Equity per share, EUR 2.04 2.17
Gearing, % 51.7 35.3
Return on invested capital (ROI), % -0.7 -4.1
EMPLOYEES 2024 2023
Number of employees 736 673
Number of lost time accidents 4 6
ENVIRONMENT 2024 2023
Energy consumption, MWh 524,735 490,558
Greenhouse gas emissions, tons of CO₂ eq. 94,800 95,916
**
Water intake, ML 7,490 6,825
Process waste to landfill, tons 5,337 5,081
* Proposal by the Board of Directors to the Annual General Meeting
** Restated
2_columns
Net sales
2022 493.3
2023 450.9
2024 462.3
Net sales, EUR million
0
100
200
300
400
500
2022 2023 2024
462.3
450.9
493.3
EUR
million
1
4_columns
Gearing, %
2022 37.4
2023 35.3
2024 51.7
Gearing, %
0
10
20
30
40
50
60
2022 2023 2024
51.7
35.3
37.4
3
5_columns
Comparable operating profit,
EUR million
2022 -4.2
2023 -2.8
2024 -1.4
Comparable operating profit,
EUR million
-10
-5
0
5
10
2022 2023 2024
-1.4
-2.8
-4.2
5
-5.3
-0.40
-0.20
0.00
0.20
0.40
-20
-10
0
10
20
2022 2023 2024
-12.8
-13.9
6_columns and line
Profit for
the period
Earnings
per share,
EUR
2022
-13.9
-0.24
2023
-12.8
-0.22
2024
-0.09
Profit for the period, EUR million and
earnings per share, EUR
EUR
Earnings per share, EUR
EUR
million
6_2024 column
Profit for
the period
2024
-5.3
-12.8
6
3.9
0.00
0.25
0.50
0.75
1.00
0
10
20
30
40
2022
2023
2024
30.7
14.0
7_columns and line
Cash flow
from
operations
Cash flow
from
operations
per share,
EUR
2022 14.0 0.24
2023 30.7 0.53
2024
0.07
Cash flow from operations, EUR million and
cash flow from operations per share, EUR
EUR
Cash flow from operations per share, EUR
EUR
million
7_2024 column
Cash flow
from
operations
2024
3.9
7
8_columns
Dividend per
share, EUR
2022 0.10
2023 0.10
2024 0.00
Dividend per share, EUR
0.00
0.02
0.04
0.06
0.08
0.10
2022 2023 2024
0.00
0.10
0.10
* Proposal by the Board of Directors to
the Annual General Meeting
*
8
8 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
In-house
converting or
external converter,
e.g., wet wipe
manufacturer
Fiber producer
Nonwovens
manufacturer,
Suominen
Brand owner
Consumer
Primary
production
Private label
Retailer
How Suominen creates value
Suominen is a nonwovens manufacturer
operating in global markets. Suominen
creates value by taking fiber raw materials
and turning them into nonwovens
that our customers convert into both
consumer and professional end products.
9Suominen Annual Report 2024
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Value creation model
FINANCIAL RESOURCES
- Total equity: EUR 117.6 million
- Total liabilities: EUR 192.8 million
NATURAL RESOURCES
- Water 7,489,778 m
3
- Raw materials
- Plant-based 62%
- Fossil-based 37%
- Reused/recycled 1%
- Total energy consumption 524,735 MWh
- Renewable sources 22%
- Fossil sources 70%
- Nuclear sources 8%
INTELLECTUAL CAPABILITIES
- Suominen brand and our way of operating
- R&D expenses EUR 4.0 million
- 14 R&D professionals
- 58 granted and 12 pending patents
- 58 trademarks and design patents
- Piloting facilities
- Technical know-how
- IT systems
SOCIAL RELATIONSHIPS
- Customer and supplier relations
- R&D cooperation with stakeholders
- Manufacturing partners
- Professional networks
- Start-up network
- Memberships in associations
- Local communities
MANUFACTURING RESOURCES
- Geographically and technically broad
manufacturing base
736 employees
7 production plants
on three continents
Net sales
EUR 462.3 million
SUOMINEN’S STRATEGY:
Growth and profitability
through sustainability,
customer focus and efficiency
We will grow by creating innovative and more
sustainable nonwovens for our customers
and improve our profitability through more
efficient operations and a high performance
culture. Our main focus is on wipes. We will
strengthen our capabilities in Europe and
Americas, and evaluate opportunities in Asia.
Inputs Suominen
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CUSTOMERS
- Innovations and new products
- Improved product performance
- Suominen brand value
- Customer satisfaction
EMPLOYEES
- Wages and salaries EUR 46.6 million
- Professional development
- Fair employment practices and equal opportunities
- Safe workplace
PARTNERS
- Spend on materials and services EUR 345.3 million
- Business growth
- Ethical business
- Interest to creditors
SHAREHOLDERS
- Board of Directors proposes that no dividend
shall be distributed for the financial year 2024
ENVIRONMENT
- Waste and emission load from operations
and end products
- Sustainable product portfolio includes
compostable and dispersible end products
- No untreated water discharge
SOCIETY
- Corporate income tax EUR +0.1 million
- Employment
PRODUCTS AND SOLUTIONS
- Nonwovens for wipes and other applications
WASTE
- Waste to landfill 5,337 metric tons
EMISSIONS
- Direct greenhouse gas emissions
48,926 metric tons of CO₂ eq.
- Indirect greenhouse gas emissions
45,874 metric tons of CO₂ eq.
WATER
- Treated water from operations
How does the model work?
The value creation model describes Suominen’s value
creation process: the resources we utilize in executing our
strategy, the outputs and, ultimately, the impacts of our
business activities.
The model describes Suominen’s business on a high
level, meaning that only the most essential matters are
presented. Still, not all matters bear equal importance, nor
is their respective relevance presented in the model.
In the value creation model, inputs are what we utilize
in our business activities. The Suominen section describes
Suominen’s business operations and strategy. Outputs
are the outcomes of our business activities, and impacts
describe how our business activities affect the world
around us.
Outputs
Impacts
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Operating environment
Suominen is a global market leader in nonwovens for wipes and ranks
among the largest producers of spunlace nonwovens worldwide.
Suominen’s main market areas are Europe and North America. Suominen
also maintains a strong presence in the South American market.
Market characteristics
Europe
In Europe, all consumer wipe categories
are highly fragmented and competitive.
Private labels are gaining share in the
European market.
EU’s Single-Use Plastics Directive and the
proposed Directive on Green Claims are
important drivers towards sustainability for
the nonwovens industry.
The leading trends in Europe are
sustainability (e.g. carbon reduction
targets, circular economy, plastic-free
materials) and ethical living (e.g. cruelty-
free, vegan).
North America
North America is the largest consumer
market for wipes. All categories are
growing with particularly strong growth
in private labels. Household products have
a fairly big share in the wipes market.
Several states in the US have passed or
introduced bills to demand appropriate
disposal labeling to wipes packages.
The leading trends are transparency in
the value chain and natural ingredients.
South America
The South American market is dominated
by the baby wipes category and branded
players, but other segments are growing.
Rising consumer awareness, high focus
on sustainability and reducing single-use
plastic products are the leading trends.
Net sales of the EMEA business area
were EUR 174.4 million, corresponding
to 38% of Suominen’s net sales in 2024.
Suominen has one site each in Italy, Spain
and Finland. Suominen’s headquarters is
in Finland. In 2024, Suominen had 329
employees in Europe.
Net sales of the Americas business area
were EUR 287.9 million, corresponding
to 62% of Suominen’s net sales in 2024.
Suominen has three sites in USA and one
in Brazil. In 2024, Suominen had 407
employees in the Americas.
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The global demand for nonwovens is growing
consistently. The growth depends mainly on consumer
demand, which is a combination of the general economic
situation and consumers’ confidence in their personal
finances. However, the demand for fast-moving
consumer goods – that is, end products for which most
of Suominen’s products are used – is not very cyclical in
nature. The growth in the demand for nonwovens has
typically exceeded the growth of gross domestic product
by a few percentage points.
The importance of sustainability
continues to grow
Megatrends such as climate change and environmental
degradation drive us to minimize the environmental
impacts of our operations, improve our raw material
efficiency and introduce an increasing range of sustainable
products to the market.
The market for sustainable nonwovens is growing
globally and especially in Europe and North America.
Legislation and regulations as well as consumer behavior
are driving the market towards more sustainable products.
In Europe, one of the most significant changes in the
operating environment is the European Plastic Strategy
and European Commission’s Single-Use Plastics Directive
(SUPD). The directive aims to protect the environment
and reduce marine pollution. SUPD impacts many end
products made of nonwovens as they are traditionally
made at least partially from raw materials containing
plastic. Labeling requirements under the Directive for
single-use products containing plastic entered into
force in 2021.
Initiatives similar to SUPD have also emerged in
other regions as concerns over sewer blockages and
marine pollution caused by, among other reasons, the
inappropriate disposal of nonwoven products have
increased.
The need for more ecological and sustainable
nonwoven products is clear, and Suominen is well
positioned to respond to the growing demand, supporting
customers in creating more sustainable product offerings.
Demographic megatrends support our growth
Demographic megatrends, such as population growth, a
growing middle class, aging populations and a growing
focus on health and well-being, are driving nonwovens
growth forecasts due to their influence on consumer
behavior. There is a direct correlation between the rise in
the standard of living and demand for hygiene products.
Beyond essential commodities, consumers are showing
a growing preference for solutions that simplify daily
routines. For instance, the rising use of moist toilet tissue
wipes exemplifies this trend. Similarly, the demand for
general-purpose wipes has grown, fueled by increased
travel and the lasting impacts of the pandemic.
New needs are emerging with aging populations
and changing healthcare models. The demand for
nonwovens used in medical applications and incontinence
products is increasing. On the other hand, the need to
find cost-effective solutions to combat bacteria and
viruses is also contributing to the increase in demand for
nonwovens in the healthcare sector.
Economic and geopolitical instabilities
cause uncertainties
The nonwovens market continues to have a healthy
growth above GDP, but markets are facing uncertainty
due to the global geopolitical situation and shifting
export balance. However, Suominen’s global production
platform positions the company well in chosen target
markets and the comprehensive portfolio of new products
differentiates the company from the competition.
While Suominen closely monitors market trends and
customer dynamics, global economic uncertainties
and fierce competition create challenges for long-term
forecasting. Historically, demand for wipes has remained
steady despite economic fluctuations, but shifting
consumer preferences and spending habits require
increased focus and attention.
13Suominen Annual Report 2024
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We pursue growth by creating innovative
and sustainable nonwovens for our
customers and improve our profitability
through more efficient operations and a
high performance culture. Our focus is
on wiping materials. We strengthen our
capabilities in Europe and the Americas
and evaluate our opportunities in adjacent
markets and in Asia.
We execute our strategy and aim
to achieve our vision through our five
strategic focus areas. We implement our
Sustainability Agenda as an integral part of
our strategy.
Operational excellence
We continuously improve the efficiency
and quality of our operations, promote
occupational health and safety and foster
accountability and cost awareness across
the organization.
Safety is our highest priority, and we
are dedicated to ensuring the health and
well-being of our employees. We foster
a strong safety culture and emphasize
preventive measures through open
dialogue and continuous engagement.
In 2024, we initiated a safety campaign
to highlight the importance of safety
procedures.
We continue to enhance efficiency and
performance by systematically developing
our people, processes and operations.
We have launched several efficiency and
capability initiatives and actively share
best practices between our sites to drive
improvement in this area.
Sustainability leadership
We leverage our innovation and piloting
capabilities, pioneering fiber-based
nonwovens know-how and our unique
asset base to achieve a leading position in
the sustainable nonwovens market. Our
target is to use all resources efficiently
and to operate with the smallest possible
impacts on the environment.
The demand for sustainable products
is rapidly increasing, driven by legislation
and customers’ growing preference for
more sustainable choices. Suominen leads
the market change by actively developing
and introducing new innovative and
sustainable products. In 2024, we launched
11 sustainable products and the sales
of sustainable products increased 87%
compared to the base year of 2019.
Differentiate with innovation and
commercial excellence
We offer best-in-class products and build
close relationships and collaboration with
Strategy
Our vision is to be the frontrunner for nonwovens innovation and sustainability.
Our strategic target is to grow and improve profitability through sustainability,
customer focus and efficiency aiming for profitable growth.
Our target is to use resources
efficiently and to operate with
the smallest possible impacts
on the environment.
14 Suominen Annual Report 2024
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Strategic
focus areas
Operational
excellence
Sustainability
leadership
Dierentiate
with innovation
and commercial
excellence
Great place
to work
Dual operating
model
Values
Ownership Teamwork Performance Integrity
Mission
Enabling our customers to win
by creating quality nonwovens
Strategy: Growth and profitability through sustainability, customer focus and efficiency
We will grow by creating innovative and more sustainable nonwovens for our customers and improve our
profitability through more ecient operations and a high performance culture. Our main focus is on wipes.
We will strengthen our capabilities in Europe and Americas, and evaluate opportunities in Asia.
Vision
Frontrunner for nonwovens
innovation and sustainability
our key customers. Our versatile and experienced R&D
team together with our pilot line capabilities enable our
industry-leading innovation and product development. A
close collaboration with customers plays an important role
in our innovation work. The share of new products of our
net sales reflects our strong ability to innovate and meet
the market needs – in 2024, the share of new products
was 34% of our net sales.
Great place to work
We concentrate on harnessing the organization’s positive
energy, passion and commitment to deliver results.
We systematically develop employee engagement and
implement targeted actions based on our global employee
engagement survey. In 2024, we conducted the survey for
the fifth consecutive year and the results identified both
positive areas and opportunities for improvement.
15Suominen Annual Report 2024
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We strive to build a high-performance culture in which
people are encouraged to exceed expectations and are
enabled to perform to their full potential. In 2024, we
continued to support the development of our personnel
and teams with various development and training
programs.
Dual operating model
We optimize our operations through an operating model
in two customer focused regions – Americas and EMEA.
During the year, we continued to strengthen our
capabilities in sustainable products by announcing
investments to our sites in Alicante, Spain and Bethune,
United States. We have continued to enhance our
supply chain management and operations planning to
further optimize our processes and achieve world-class
performance.
Investment projects in Bethune, South
Carolina, US and Alicante, Spain to
strengthen capabilities and capacity in
sustainable products
11 sustainable product launches
Sales of sustainable products increased
87% compared to base year 2019
Strategic highlights of the year
Gold level rating from the third
EcoVadis sustainability assessment
Share of new products:
34% of net sales
Greenhouse gas emissions
decreased 24% per ton of product
compared to base year 2019
16 Suominen Annual Report 2024
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Sustainability
at Suominen
Sustainability is at the core of our
strategy and business. Our vision is
to be the frontrunner in nonwovens
innovation and sustainability.
Sustainability is an integral part of all
our operations.
To increase transparency in ESG matters, Suominen
participates in both internal and external assessments.
Suominen participated in the EcoVadis assessment for
the third time in 2024 and achieved a gold level rating.
The result places Suominen in the top 1% of companies
within the manufacture of other textiles industry and in
the top 5% of all companies across all industries assessed
by EcoVadis. This year’s improvements primarily focused
on environmental topics, labor and human rights, and
sustainable procurement compared to the previous year.
In addition, Suominen maintains an ESG Index, launched
in 2022, which provides a comprehensive overview of
our sustainability work. The Index highlights both our
strengths and areas for improvement. The index concept
is continuously developed to reflect the dynamic and
evolving nature of sustainability.
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
17Suominen Annual Report 2024
Performance against the 2020–2025 targets in 2024
INDICATOR TARGET FOR 2025 RESULT
People
and safety
Lost time accidents 0 4 in 2024
Employee engagement index 73% 67% in 2024
Sustainable
nonwovens
Number of sustainable
product launches¹
Over 10 per year 11 in 2024
Sales of sustainable products 50% increase in sales compared to
the base year 2019
87% increase compared
to the base year 2019
Corporate
citizenship
Coverage of renewed
Code of Conduct
100% of existing employees
and new hires
92% of all employees trained
at the end of 2024
Supplier assessment Raw material suppliers assessed
against supplier code
(based on risk assessment)
Our primary raw material
suppliers cover 93% of our
raw material purchases (in
tons). 91% of the purchased
raw material tons from these
primary suppliers, comes from
suppliers, with a valid EcoVadis
ESG assessment in place.
Low impact
manufacturing
Energy consumption
(GJ/t of product)
20% reduction
compared
to the base year 2019
Increased compared
to the base year 2019
Process waste to landfill
(kg/t of product)
20% reduction
compared
to the base year 2019
Increased compared
to the base year 2019
Water consumption
(m
3
/t of product)
20% reduction
compared
to the base year 2019
Increased compared
to the base year 2019
Greenhouse gas emissions
(t/t of product)
20% reduction compared
to the base year 2019
2
24% reduction compared
to the base year 2019
¹ Sustainable product launches include new sustainable product launches, re-launches and concepts related to sustainable products.
² Target is set for Scope 1 and 2 emissions (emissions from our own operations and purchased energy generation).
Sustainability Agenda
The Sustainability Agenda crystallizes Suominen’s
sustainability themes and targets. The agenda focuses on
four themes, People and safety, Sustainable nonwovens,
Low impact manufacturing and Corporate citizenship.
In 2024, Suominen worked to renew the Agenda and
define new KPIs for the period 2025-2030. This report
details our performance against the 2020–2025 targets
and introduces the updated agenda for 2025–2030.
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Sustainability Agenda 2025–2030
Suominen’s Sustainability Agenda 2025–2030 was
published in March 2025. The Agenda is built around four
key themes that reflect the most important topics for the
company and its stakeholders. The themes are based on
Suominen’s double materiality assessment, completed
in 2024, which reaffirmed that the themes from previous
period of the Sustainability Agenda (2020–2025) remained
relevant. Thus, we will continue strengthening our position
in these topics.
Suominen has set KPI’s for each theme and will develop
action plans to achieve these goals. Progress will be
monitored regularly and reported annually. We will
strengthen internal sustainability awareness and embed
sustainability into all processes.
Sustainable nonwovens
People and safety
Low impact manufacturing
Corporate citizenship
We continue
to strengthen
our safety culture.
We promote human rights,
equal opportunities for all
employees, and building a
high-performance culture.
We innovate new
sustainable nonwovens
and support our customers
in their commitment
to sustainability.
We commit to decreasing the
environmental impacts of our
operations and supply chain.
We promote responsible business
practices and communicate
transparently about our
operations.
Sustainability is the
core principle of all
our functions.
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Most relevant UN Sustainable Development
Goals for Suominen
The Sustainable Development Goals (SDG) adopted by the
United Nations in 2015 define international sustainable
development focus areas and goals. We have identified five
SDG’s which cover the areas where we can make the biggest
contribution, and our sustainability agenda guides our work
towards these goals.
Renewed sustainability reporting
Suominen has been reporting on sustainability for over ten years. The 2024 report is the first one made in accordance
with the EU’s Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards
(ESRS). The new CSRD reporting requirements have defined the structure and content of the report. Please find
Suominen’s sustainability statement as part of the Report by the Board of Directors.
SDG 7: Affordable and clean energy
We focus on improving energy efficiency and finding alternative
low-carbon energy resources. Our energy initiatives also
support our goal of reducing greenhouse gases emitted from
our operations. The majority of our production sites have shifted entirely to
fossil-free electricity, and we are actively exploring similar opportunities for
our remaining sites.
SDG 8: Decent work and economic growth
We promote responsible business practices throughout the
value chain, and we do not tolerate any kind of slavery, forced
or child labor or human trafficking in our own or our suppliers’
operations. We promote equal opportunities for all. Our principle is “equal
pay for equal contribution”. A safe workplace is one of our top priorities
and we are continuously striving to improve our safety culture to achieve
an accident-free workplace.
SDG 10: Reduced inequalities
We are committed to offering a fair workplace with equal
opportunities for everyone. We do not tolerate any kind of
discrimination, including discrimination based on age, gender,
religion, or ethnic origin. When making employee-related decisions,
for example when recruiting, promoting, rewarding, or developing our
personnel, we pay special attention to equality and inclusion.
SDG 12: Responsible consumption and production
We are committed to innovating products with minimized
negative environmental impacts. Our goal is to use natural
resources as efficiently as possible and strive for minimization
of waste from our production and finding alternative outlets for non-
recyclable waste. We continuously explore diverse sustainable raw material
alternatives from virgin and recycled sources.
SDG 13: Climate action
We are committed to continuously improving our production
efficiency and the efficient utilization of natural resources.
We strive to reduce the climate impacts caused by our
operations. We assess the carbon footprint of our products across the entire
value chain and develop solutions with a reduced climate impact.
Sustainability agenda 2025–2030 KPI’s
People & Safety
- Zero lost time accidents (LTA)
- Diversity, equity & inclusion (DEI) index 80%
Low impact manufacturing
- Reducing scope 1, 2 and 3 greenhouse gas
emissions with limiting global warming to 1.5°C
in line with the Paris Agreement
- Zero manufacturing waste to landfill
Sustainable nonwovens
- More than two thirds of consumed raw materials
are from plant-based resources
- More than half of our new R&D initiatives focus
on advancing the development of sustainable
products
Corporate citizenship
- All qualified raw material suppliers assessed
against Suominen’s sustainability criteria
- All employees have completed Suominen’s
sustainability training program
The agenda was approved by the Executive
Management Team and the Board of Directors.
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Suominen Corporation (“Suominen” or the “Company”)
complies with the Finnish Corporate Governance
Code 2025 (the “Code”) issued by the Securities Market
Association. The Code is available on the internet at
www.cgfinland.fi.
This Corporate Governance Statement (the “Statement”)
is published separately from the report by the Board
of Directors. This Statement has been published
simultaneously with the Financial Statements and Report
by the Board of Directors as a stock exchange release, and
it is available also on Suominen’s website at
www.suominen.fi.
The Audit Committee and the Board of Directors of
Suominen (the “Board”) have reviewed this Statement.
Corporate Governance
Statement of Suominen
Corporation for 2024
The Statement will not be updated during the financial
year, but up-to-date information on its various topics is
available on Suominen’s website at www.suominen.fi.
Suominen’s governing bodies
Suominen’s decision-making bodies are the General
Meeting of Shareholders, the Board with its two permanent
Committees and one temporary Committee, and the
President & CEO (the “CEO”), supported by the Executive
Management Team. Suominen’s decision-making bodies
and their duties and responsibilities are governed by
applicable Finnish laws and regulations, the Code, the
Company’s Articles of Association, and the Charters of
the Board and its Committees.
Auditor
Audit
Committee
Personnel &
Remuneration
Committee
Strategy
Committee
General Meeting of Shareholders
President & CEO
Executive Management Team
Board of Directors
Shareholders’
Nomination
Board
Internal
Audit
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General Meeting of Shareholders
Suominen’s highest decision-making body is the General
Meeting of Shareholders, where shareholders exercise
their decision-making power.
The Annual General Meeting is held annually by the end
of April on a date determined by the Board. It decides
on the matters stipulated in the Finnish Limited Liability
Companies Act and Suominen’s Articles of Association.
Such matters include:
- adoption of the financial statements,
- use of the profit shown on the balance sheet,
- election of the Chair and members of the Board and
decision on their remuneration,
- discharging the members of the Board and the CEO
from liability, and
- election of the auditor and decision on the auditor’s
compensation.
Suominen publishes a notice of the General Meeting on
the Company’s website no earlier than two months and no
later than three weeks prior to the meeting, however, at
least nine days prior to the record date of the meeting. In
order to participate in the General Meeting, a shareholder
must inform the Company of the participation at the
latest on the date mentioned in the notice of the General
Meeting. The date may not be earlier than ten days before
the meeting.
Annual General Meeting in 2024
The Annual General Meeting was held in Helsinki on April
4, 2024. A total of 34 shareholders representing 64% of
the Company’s shares and votes were represented in the
meeting. The Annual General Meeting documents are
available on Suominen’s website at www.suominen.fi.
Shareholders’ Nomination Board
Suominen has a permanent Shareholders’ Nomination
Board established by the 2013 Annual General Meeting.
The Nomination Board is responsible for preparing
and presenting to the Annual General Meeting and,
if necessary, to an Extraordinary General Meeting,
proposals on the remuneration of the Board, the number
of members of the Board and on the members and the
Chair of the Board. In addition, the Nomination Board
is responsible for seeking potential successors for the
Board members.
The Nomination Board submits its proposals on the
number of members, composition and remuneration
of the Board to Suominen’s Board of Directors annually
no later than on February 1, prior to the Annual
General Meeting.
The Nomination Board consists of four members, three
of which are appointed annually by the Company’s three
largest shareholders who appoint one member each. The
largest shareholders are determined annually on the basis
of the registered holdings in the Company’s shareholders’
register held by Euroclear Finland Ltd on the first working
day in September. The Chair of Suominen’s Board of
Directors serves as the fourth member of the Nomination
Board. The Nomination Board elects the Chair of the
Nomination Board from among its members.
The members of the Nomination Board shall be
independent of the Company, and a person belonging
to the Company’s operative management cannot be a
member of the Nomination Board.
Nomination Board in 2024
Shareholders’ representatives on the Nomination
Board were determined based on share ownership
on September 2, 2024, by the following three largest
registered shareholders of the Company:
Shareholder Representative Member since Born Gender Education Main occupation
Ahlstrom Capital B.V. Jyrki Vainionpää 2024,
Chair since 2024
1976 Male M.Sc. (Econ.) President and CEO, A. Ahlström Oy
Etola Group Oy Mikael Etola 2021 1977 Male M.Sc. (Econ.) CEO, Etola Group Oy
Oy Etra Invest Ab Peter Seligson 2024
(advisory role in 2023)
1964 Male Lic. oec. (HSG) Chair of the Board of Directors,
A. Ahlström Oy
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Charles Héaulmé, Chair of Suominen’s Board of
Directors, acted as the fourth member of the Nomination
Board.
In 2024 the Nomination Board convened three times.
The attendance rate at the meetings was 100%.
Board of Directors
The main objective of the Board is to direct Suominen’s
strategy in a way that, in the long run, it enables the
delivery of the financial targets set for Suominen and
maximizes shareholder value while simultaneously taking
into account the expectations of key stakeholders.
The Board is responsible for the administration and
proper organization of Suominen’s operations and for
making decisions on matters that are likely to have a major
impact on the Company. The Board convenes according
to an annual meeting plan.
The Chair and members of the Board are elected by the
General Meeting of Shareholders. Pursuant to the Articles
of Association of the Company, the Board shall have at
least three and no more than seven members.
Main duties
The duties of the Board are defined in Finnish laws and
regulations, Suominen’s Articles of Association, the Finnish
Corporate Governance Code and the Charter
of Suominen’s Board of Directors. The main duties are
the following:
- to approve the Company’s strategy and oversee its
implementation,
- to approve the Company’s long-term targets and
monitor their implementation,
- to approve the Company’s annual business plan and
sustainability agenda,
- to approve the Code of Conduct and key corporate
policies,
- to approve major business acquisitions, divestments,
investments and expenditures,
- to approve major external funding (both debt and
equity), capitalization of subsidiaries, and guarantees and
mortgages,
- to decide on the appointment and dismissal of the
CEO and other members of the Executive Management
Team and to decide on their terms of employment and
remuneration,
- to approve the Company’s organizational structure,
- to monitor and supervise the Company’s performance
and to ensure the effectiveness of its management,
- to ensure continuity of business operations by
overseeing the succession planning of the Executive
Management Team,
- to decide on the Company’s share-based long term
incentive schemes,
- to approve the Remuneration Policy and the
Remuneration Report,
- to approve the Company’s financial reports, including
annual accounts, interim reports, report by the Board
of Directors and financial statement releases, and the
Corporate Governance Statement,
- to ensure that the Company has adequate planning,
information and control systems and resources for
monitoring results and managing risks,
- to monitor evaluation and management of significant
risks relating to Suominen’s strategy and business
operations,
- to convene General Meetings of Shareholders,
- to establish a dividend policy and make a proposal on
the distribution of dividend,
- to make a proposal concerning the election of the
auditor and the auditing fees, and
- to make other proposals to General Meetings of
Shareholders.
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Board of Directors in 2024
The 2024 Annual General Meeting elected six members to the Board.
The term of office of the members of the Board ends at the close of the Annual General Meeting 2025.
Board member Member since Born Gender Nationality Education Main occupation
Share ownership
on December 31,
2024
Charles Héaulmé 2024,
Chair since 2024
1966 Male French B.Sc. (Business Adm.) CEO, Huhtamäki Oyj
(until January 14, 2025)
19,902
Andreas Ahlström 2015,
Deputy Chair since 2020
1976 Male Finnish M.Sc. (Econ. and
Business Adm.)
CEO, Ahlström
Invest B.V.
30,989
Aaron Barsness 2022 1973 Male U.S. and
Swedish
BA (Biology and
Environmental Studies)
CMO, Fazer Group 8,723
Björn Borgman 2020 1975 Male Swedish M.Sc. (Industrial
Engineering)
CEO, HL Display AB 28,166
Nina Linander 2020 1959 Female Swedish B.Sc. (Econ.), MBA Board professional 31,828
Laura Remes 2023 1980 Female Finnish M.Sc. (Tech.) VP, Strategy and
Business Development,
UPM Fibres
6,220
Until April 4, 2024
Jaakko Eskola 2021, Chair 1958 Male Finnish M.Sc. (Eng.) Board professional
Independence of the Board members
The Board has evaluated the independence of its
members. All members are independent of the Company.
All members are also independent of the significant
shareholders of the Company, with the exception of
Andreas Ahlström. The largest shareholder of Suominen
Corporation, Ahlstrom Capital B.V., is part of the
A. Ahlström Group. Andreas Ahlström acts currently as
the CEO of Ahlström Invest B.V., which is an associated
company of A. Ahlström Group.
Meeting practice
The Board convenes under the direction of the Chair of
the Board or, if the Chair is unable to attend, the Deputy
Chair of the Board. Principally the matters are presented
by the CEO of the Company.
In 2024 the Board convened 15 times, of which five
times were per capsulam. The attendance rate at the
meetings was 98.9%. The participation of each individual
member is presented in the following table.
Name Participation
Charles Héaulmé Chair 14/14
Andreas Ahlström Deputy Chair 15/15
Aaron Barsness Member 15/15
Björn Borgman Member 14/15
Nina Linander Member 15/15
Laura Remes Member 15/15
Until April 4, 2024
Jaakko Eskola Chair 1/1
Board evaluation
The Board conducted an annual self-assessment of
its operations and working methods during the year
2024. The assessment was conducted internally. The
results of the assessment were reviewed and discussed
within the Board. The results were also presented to the
Shareholders’ Nomination Board.
Additionally, at the end of most of its meetings, the
Board assesses the preparations for the meeting, the
course of the meeting and its own operations in line with
the principle of continuous development.
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Board diversity principles
At Suominen, diversity has been recognized as an essential
success factor. Diversity in the Board’s competencies,
experience and opinions promotes openness to new
ideas and helps the Board in effectively supporting and
challenging the Company’s management. Furthermore,
diversity promotes open discussion and integrity
in decision making, good corporate governance,
and effective supervision of both the Board and the
management, and it also supports succession planning.
The Shareholders’ Nomination Board evaluates the
number of members and composition of the Board and
its competence requirements in light of the present
and future needs of the Company. When assessing
the composition of the Board, the Nomination Board
considers, among other things, whether the Board
possesses a broad range of business knowledge and
members representing both genders and various ages. It
is Suominen’s objective to have both men and women on
its Board.
It is fundamental that the Nomination Board’s final
proposal on the board composition to the General
Meeting of Shareholders is based on the qualifications and
competencies of each candidate. In addition, candidates
must also have the possibility to devote sufficient amount
of time to Board work.
The objectives concerning the diversity of the Board
as set out in the Board diversity principles have been
achieved well. With regards to diversity in terms of
gender, both genders are represented in the Board. The
composition of the Board represents a broad range of
business knowledge and competencies and qualifications
to address the needs of the Company.
Board committees
The Board has two permanent committees: the Audit
Committee and the Personnel and Remuneration
Committee. In its meeting on December 13, 2023, the
Board established a temporary Strategy Committee, which
shall remain in place until otherwise decided by the Board.
All three Committees report to the Board on their activities
after each Committee meeting.
Audit Committee
The Audit Committee assists the Board in supervising the
Company’s governance, accounting, financial reporting
and internal control systems and in monitoring the
activities of the internal and external audit. The Audit
Committee prepares for the Board matters that fall under
its areas of responsibility, but it does not have autonomous
decision-making power unless the Board resolves
otherwise on certain individual matters.
The Chair and members of the Audit Committee are
elected annually by the Board from among its members.
The Committee comprises at least three members. The
members of the Audit Committee must be independent
of the Company, and at least one member must also be
independent of the Company’s significant shareholders.
Audit Committee in 2024
The Audit Committee in 2024 consisted of Nina Linander
(Chair), Andreas Ahlström and Laura Remes.
In 2024 the Audit Committee convened four times.
The attendance rate at the meetings was 100%. The
participation of each individual member is presented in the
following table.
9_pie
Males 67% 67
Females
33%
33
Gender
Males 67%
Females 33%
9
10_pie
41–50 years 50% 50
51–60 years 33% 33
61–70 years 17% 17
Age
41–50 years 50%
51–60 years 33%
61–70 years 17%
10
11_pie
Less than 1 year 17% 17
1–4 years 33% 33
4–8 years 33% 33
More than 8 years 17% 17
Tenure
Less than 1 year 17%
1–4 years 33%
4–8 years 33%
More than 8 years 17%
11
Board Diversity
(December 31, 2024)
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Name Participation
Nina Linander Chair 4/4
Andreas Ahlström Member 4/4
Laura Remes Member 4/4
Personnel and Remuneration Committee
The Personnel and Remuneration Committee assists
the Board by preparing remuneration and appointment
matters concerning the Company’s CEO and other
Executive Management Team members. The Committee
prepares for the Board matters that fall under its areas of
responsibility, but it does not have independent decision-
making power unless the Board resolves otherwise on
certain individual matters.
The Chair and members of the Personnel and
Remuneration Committee are elected annually by
the Board from among its members. The Committee
comprises at least three members. The members of
the Personnel and Remuneration Committee must be
independent of the Company.
Personnel and Remuneration Committee in 2024
The Personnel and Remuneration Committee in 2024
consisted of Charles Héaulmé (Chair, from April 4,
2024 onwards), Aaron Barsness and Björn Borgman.
Jaakko Eskola acted as the Chair of the Personnel and
Remuneration Committee until April 4, 2024.
In 2024 the Personnel and Remuneration Committee
convened three times. The attendance rate at the
meetings was 100%. The participation of each individual
member is presented in the following table.
Name Participation
Charles Héaulmé Chair 3/3
Aaron Barsness Member 3/3
Björn Borgman Member 3/3
Until April 4, 2024
Jaakko Eskola Chair 0/0
Strategy Committee
The Strategy Committee supports and advises the Board
and the Company’s management in strategic decisions
and initiatives and in other matters pertaining to the
Company’s strategy. The Committee’s role is advisory, and
it has no decision-making power with respect to strategic
decisions.
The Chair and members of the Strategy Committee are
elected annually by the Board from among its members.
The Committee comprises at least three members.
Strategy Committee in 2024
The Strategy Committee in 2024 consisted of Laura Remes
(Chair), Andreas Ahlström and Aaron Barsness.
In 2024 the Strategy Committee convened four times.
The attendance rate at the meetings was 100%. The
participation of each individual member is presented in the
following table.
Name Participation
Laura Remes Chair 4/4
Andreas Ahlström Member 4/4
Aaron Barsness Member 4/4
President & CEO
The CEO (Managing Director) of Suominen is appointed
by the Board. The CEO is responsible for the day-to-day
operations of the Company in accordance with the Finnish
Limited Liability Companies Act and the guidelines and
instructions provided by the Board, and for ensuring that
the Company’s accounting practices comply with the law
and that its assets are reliably managed pursuant to the
Limited Liability Companies Act. Furthermore, the CEO
is in charge of the day-to-day management of the entire
Suominen Group.
The CEO acts as the Chair of the Executive Management
Team and as the immediate supervisor of the Executive
Management Team members.
Tommi Björnman serves as Suominen’s President
and CEO.
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Executive Management Team
The CEO is supported by the Executive Management Team. In 2024 the Executive Management Team consisted of:
Executive Management
Team member
Member
since Born Gender Nationality Education Position
Share ownership on
December 31, 2024
Tommi Björnman 2023 1966 Male Finnish M.Sc. (Industrial
Engineering and
Management)
President & CEO 39,556
Janne Silonsaari 2023 1980 Male Finnish M.Sc. (Econ. and
Business Adm.)
CFO -
Jonni Friman 2023 1971 Male Finnish
and
Swedish
M.Sc. (Industrial
Engineering and
Management)
EVP, Transformation
Management Office
-
Markku Koivisto 2017 1971 Male Finnish M.Sc. (Tech.) EVP, EMEA & CTO
(acted as Interim EVP,
Americas August 26,
2024 - January 5, 2025)
53,172
Until May 30, 2024
Klaus Korhonen 2019 1974 Male Finnish LL.M. EVP, HR & Legal
Until August 25, 2024
Thomas Olsen 2023 1965 Male U.S. MBA EVP, Americas
Suominen’s operative organization
Suominen’s operative organization consists of two
business areas, EMEA and Americas, and global functions
supporting the business. The Company only has one
operating segment.
Main features of internal control
procedures and risk management
systems
Internal control
The main objective of internal controls at Suominen is to
ensure reliable financial reporting and compliance with
applicable laws, regulations, and internal policies and
principles. Moreover, internal controls aim to ensure the
efficiency of the Company’s processes and that its assets
are appropriately safeguarded.
Control environment
Internal controls are embedded in the activities of
Suominen’s organization. Controlling is executed in
connection with the steering of business processes,
supported by comprehensive reporting.
The foundation of the internal control processes is
based on the Company’s Code of Conduct, corporate
culture and values, policies, guidelines and instructions,
and the ways of working adopted by the Company’s
management and employees. The responsibility structure
of the Company is based on authority inherent in the
positions and work descriptions, segregation of duties and
the “four-eyes” and “one-over” decision-making principles.
Effective internal control requires that duties are properly
allocated to employees and potential conflicts of interests
are identified and eliminated. In cascading the principles
within the organization, honesty, transparency and
working in teams are integral elements of establishing high
ethical standards throughout the Company. A satisfactory
control environment is ensured through internal analyses
and evaluations of key processes.
Nominated process owners are responsible for ensuring
that efficient internal process controls are defined and
implemented across the organization.
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The ICT function ensures that the security checks of ICT
systems throughout the Suominen Group are functioning
and conducted at a sufficient level.
Control activities
Internal control activities are in place, among other things,
to verify that the Company’s financial reports provide a
true and fair view of the Company’s financial position. It is
the duty of the Board and the CEO to organize the internal
control activities.
In practice, control activities are conducted in the
meetings of the Board and management teams, where
results of the Company’s operations and activities are
reviewed. The Company’s Finance function and the
Group’s controller network support and coordinate the
financial management and control of the activities of the
entire Suominen Group.
Internal control at Suominen has been decentralized
across global functions that monitor compliance with
the operating guidelines concerning their areas of
responsibility approved by the Board. In addition to
the Group-level guidance, control measures are also
taken at the business area and plant level. Control
measures include both general and more detailed control
procedures aimed at preventing, revealing and correcting
errors and deviations.
In day-to-day business operations, several control
activities are exercised in order to prevent potential errors
and deviations in financial reporting and to help reveal
and correct any identified deviations or errors. Suominen
categorizes its control activities into three categories.
Documented instructions help the organization
standardize the monitoring of tasks. Continuous and
regular reporting providing feedback on the performance
of the global functions and each Group company ensures
that instructions and defined processes are followed. In
critical processes, specific authorizations are implemented
in the workflow for security and verification purposes.
The need for separate evaluations, as well as their
scope and frequency, is determined by assessing the risks
and effectiveness of ongoing control and monitoring
processes. Information security and related control
activities play a key role when features of ICT systems are
being defined and applied.
Information and communication
The Company’s Financial Manual, policies approved by
the Board and other guidelines and instructions relating to
financial reporting are updated and communicated on a
regular basis by the management to all relevant employees,
and these are also available on the Company’s intranet.
In addition, a standard reporting package is used by the
business areas and Group companies.
Group management and business area management
conduct monthly reviews that include an analysis of the
defined performance metrics and indicators, which enable
the management to better understand the underlying
performance of the Company. The Board members receive
a monthly report on the Company’s result and financial
position.
Monitoring
The Audit Committee is responsible for monitoring the
efficiency of the Company’s internal controls. Global
function and business area management and controller
functions are responsible for the ongoing monitoring
of control activities. The Company’s Finance function
monitors the operations and processes of the Group
companies and the accuracy of external and internal
financial reporting.
Regular inspections by quality auditors and customer
audit personnel also cover the internal controls of key
business processes.
Risk management
Risk management is an integral part of running the business
of Suominen, and the identification and assessment of risks
is an essential element of internal control. The aim is to
focus on material risks that are significant from a business
perspective.
The risk management process is based on Suominen’s
Risk Management Policy, which is approved and regularly
reviewed by the Board. The process consists of steps
to identify, assess, respond, monitor and report risks.
Identification and assessment of risks involves a dynamic
and iterative process to identify and evaluate risks, and
it provides the foundation for defining and monitoring
mitigative actions for each identified risk. A risk owner
is assigned to each identified risk. The most significant
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This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
risks are reported annually to the Audit Committee and
additionally to the Board as needed.
Risks relating to financial reporting are managed in
accordance with the risk management process outlined
in the Risk Management Policy. Risks pertaining to
financial reporting are identified and evaluated addressing
the risks in the most relevant parts of the financial
reporting process. Based on this evaluation, appropriate
mitigation measures are defined and their effectiveness is
continuously monitored.
The responsibilities relating to risk management are
outlined in the Risk Management Policy. The Board is
responsible for monitoring the evaluation and management
of significant risks relating to Suominen’s strategy and
business operations. The Audit Committee assists the
Board in its duties relating to risk management and is
responsible for monitoring the risk management processes
and practices. The CEO has the overall responsibility
for risk management at Suominen and is supported by
the Executive Management Team members, who are
responsible for identifying and assessing risks within their
own area of responsibility.
Audit
Internal audit
Suominen has retained an external party to execute internal
audits within the Company. The audit topics are determined
by the Audit Committee based on recommendations by
the management. Any material findings are reported to the
Audit Committee, the CEO, the Executive Management
Team and other relevant management.
External audit
According to its Articles of Association, Suominen has
one auditor which must be an entity of Certified Public
Accountants approved by the Finnish Central Chamber
of Commerce. The term of the auditor shall expire at the
end of the first Annual General Meeting of Shareholders
following the election. The auditors and the Audit
Committee agree annually on an audit plan.
Audit in 2024
The Annual General Meeting held on April 4, 2024,
re-elected Ernst & Young Oy, Authorized Public Accountant
firm, as the auditor of the Company. Ernst & Young Oy
appointed Toni Halonen, Authorized Public Accountant, as
the principally responsible auditor of the Company.
Audit fees in 2024
Auditor's fees and services, Suominen Group EUR thousand
Auditing 619
Non-audit related fees (tax and other consulting fees) 24
Total 642
Insider management
Suominen complies with the EU Market Abuse Regulation
(“MAR”), the Finnish Securities Markets Act and the
regulations and guidelines issued by the Finnish Financial
Supervisory Authority and Nasdaq Helsinki Ltd. In addition,
the Board has approved and regularly reviews Suominen’s
Insider Policy, which informs the governing bodies and
employees of Suominen and its Group companies of the
regulations in force pertaining to insider trading.
Management transactions
Suominen has in accordance with MAR determined that
members of the Board, the CEO and other members of
the Executive Management Team (collectively “Directors”)
and their closely associated persons have the duty to
notify Suominen and the Finnish Financial Supervisory
Authority of transactions made by them or on their behalf
on Suominen’s financial instruments. Suominen maintains
a list of the Company’s Directors and their closely
associated persons and publishes the transactions notified
to it as stock exchange releases.
Stock exchange releases on the transaction notifications
of Directors and their closely associated persons can be
found on Suominen’s website at www.suominen.fi.
Closed period
Suominen observes a closed period, which begins 30
calendar days before the publication of an interim report,
half-year report or financial statements release and ends at
the end of the day of publication of such report or release.
During the closed period, Directors and certain other
Suominen employees that are involved in the preparation
of financial reports or otherwise have access to sensitive
30 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
financial information of Suominen (“Core Persons”) may
not trade or conduct transactions on their account or
for the account of another, directly or indirectly, relating
to a financial instrument of the Company. The timing of
closed periods can be found on Suominen’s website at
www.suominen.fi.
During a closed period, trading with Suominen’s financial
instruments by Directors and Core Persons is allowed only
in certain exceptional situations. An exception can only be
applied where the Director or Core Person can show that
the transaction cannot be conducted at some other point
in time than during the closed period, and the Director
or Core Person is not in possession of inside information.
Any exception to the trading restriction during the closed
period requires prior approval by the Company for the
transaction in question.
Trading by Directors and Core Persons
Directors and Core Persons must, in addition to abiding by
the trading restriction during the closed period, time their
trading so that it does not weaken the general trust in the
securities market. Suominen recommends that Directors
and Core Persons make long-term investments in the
Company’s shares and other financial instruments. It is
also recommended to time the trading to a point in time
when the market has as complete knowledge as possible
on the factors affecting the value of the share or the
financial instrument.
Monitoring and control
The Insider Officer of Suominen is the Company’s Chief
Financial Officer. The Insider Officer is responsible for
administration of the Company’s insider matters.
Without limiting the obligations arising from MAR, the
Securities Markets Act or other applicable regulations, the
Company’s insider administration is responsible for internal
communications and training concerning insider issues,
preparing and maintaining lists of Directors and their
closely associated persons and Core Persons, receiving
notifications concerning the transactions of Directors
and their closely associated persons and publishing
the related stock exchange releases, preparing and
maintaining project-specific insider lists, and monitoring
insider matters.
Principles for related party transactions
Suominen complies with applicable laws, regulations
and standards regarding related party transactions
and follows the requirements set for monitoring,
assessment, decision-making and reporting of related
party transactions. The Board has approved and regularly
reviews Suominen’s Related Party Policy, which defines
the principles for monitoring and assessing related
party transactions.
Suominen has defined the members of the Board, the
CEO and other members of the Executive Management
Team and their closely associated persons and entities as
related parties of the Company and maintains a list of such
persons and entities.
The Company can carry out transactions with its
related parties provided that such transactions are made
within the Company’s ordinary course of business and
on customary, arm’s-length terms. The Board approves
related party transactions that are made either outside the
Company’s ordinary course of business or on other than
customary, arm’s-length terms.
Related party transactions are monitored regularly by
the Company’s Finance function as part of the Company’s
normal reporting and monitoring procedures. Members
of the Board and the Executive Management Team are
obligated to report any planned or executed related party
transactions to the Company’s Chief Financial Officer
without undue delay.
31Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Remuneration Report
of Suominen Corporation
Remuneration Policy at a glance
According to the Remuneration Policy (the “Remuneration Policy” or
“Policy”) for Governing Bodies of Suominen Corporation (“Suominen” or
the “Company”) approved by the Annual General Meeting (the “AGM”) on
April 4, 2024, Suominen’s aim is to offer a framework for remuneration
that incentivizes to pursue towards the Company’s long-term financial
performance and shareholder value creation.
The General Meeting determines the remuneration of the Board of
Directors (the “Board”). The Shareholders’ Nomination Board prepares
the proposal for the General Meeting.
The President & CEO’s (the “CEO”) remuneration consists of a fixed
base salary (including fringe benefits) and variable incentives. Variable
incentives can be short-term, such as cash bonuses, or long-term, such
as share-based incentive plans. Share-based incentive plans can be used
for rewarding for performance and/or for retention purposes. The aim
of the Board is that variable remuneration shall form a significant portion
of the annual remuneration opportunity at the target level granted to
the CEO. On average, variable incentives shall at target level be equal
to the CEO’s fixed annual salary. If performance exceeds the Board’s
expectations, the variable incentives shall exceed the fixed annual salary.
The Board may deviate from the Policy in certain exceptional situations.
To read the full Policy, please visit our website:
www.suominen.fi/investors/corporate-governance/remuneration/.
2024 CEO remuneration at a glance
Tommi Björnman acted as the Company’s CEO in 2024. There were no
changes in the CEO’s compensation structure in 2024.
Total remuneration paid for the CEO includes base salary, benefits,
supplementary pension contributions, short-term incentive (STI) for
2023, resulted in pay-out, which was made in 2024 and Matching
restricted share plan (“MRSP”) vesting period June 1, 2023 –
June 1, 2024.
With the exception of Matching restricted share plan (“MRSP”), the CEO
did not receive any LTI payments in 2024.
The remuneration earned by Tommi Björnman in 2024 payable in
2025 consists of reward under Global STI Plan 2024. The outcome
from Global STI Plan 2024 was EUR 67,992.
32 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
1. Introduction
This Remuneration Report (the “Report”) is based on
the Finnish Corporate Governance Code 2020 of the
Securities Market Association and provides the details
of the remuneration paid to members of the Board and
the CEO. The Board’s Personnel and Remuneration
Committee (the “PRC”) has reviewed the Report, and it
has been approved by the Board on March 4, 2025. This
Report provides information on the remuneration paid
during the financial year 2024. For updated information
on the Board and executive remuneration, please visit our
website: www.suominen.fi/en/investors/corporate-
governance/remuneration.
1.1 Remuneration at Suominen
The aim of Suominen’s Remuneration Policy is to offer a
framework for remuneration that incentivizes to pursue
towards the Company’s long-term financial performance
and shareholder value creation. The Policy provides the
Company with the principles for offering remuneration
that attracts, motivates, and retains the best possible
management and Board members who drive Suominen’s
performance and strategy in alignment with essential
stakeholder interests. The Policy’s goal is to ensure that
the philosophy of paying for performance is applied to
Suominen’s remuneration.
The Policy has the following guiding principles:
- Total remuneration opportunity shall be competitive
enough in relation to the market.
- Performance-based incentives form a significant part
of the CEO’s total target remuneration in order to
emphasize a strong pay-for-performance alignment.
- Majority of the performance-based incentives emphasize
long-term, rather than short-term performance and
have a straight link to shareholder value.
- Share ownership requirement is set for the CEO in order
to ensure balanced risk taking.
According to the Policy, Suominen aims to offer the
CEO a remuneration structure that incentivizes towards
the achievement of Suominen’s strategic targets and
long-term shareholder value creation. Suominen
utilizes both short-term and long-term performance-
based incentives for which the Board annually selects
appropriate performance metrics that steer towards the
implementation of Suominen’s strategy and achievement
of sustainable financial results in a competitive market.
The Policy is aligned with the remuneration principles
applied to all Suominen employees. The remuneration
shall be fair and reflect the competencies required to fulfill
the requirements of each position. Pay-for-performance
philosophy is widely followed in Suominen, and many
of the performance metrics in the CEO’s incentive plans
are concurrently used in employees’ incentive plans.
However, a more significant portion of the CEO’s total
compensation is tied to performance-based incentives,
as the Company aims to ensure a strong link between
executive remuneration and the Company performance.
Strengthens our
culture, values,
and supports
shareholder value
creation
Attracts, motivates,
and retains our
management and
employees
Promotes strategy
execution and is in
line with our long-
term financial goals
Supports the pay-
for-performance
philosophy
SUOMINEN REMUNERATION
33Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
This section presents a comparison between the
remuneration of the CEO and the Board, the average
employee remuneration and the Company performance
for the financial years 2020 to 2024.
During the last five years, remuneration for the CEO
and our employees (on average) has been quite well
in alignment with the Company’s performance. When
interpreting the figures in the table below, it is good to
note the following:
1. For the CEO, the figures represent remuneration
paid during that financial year, and a portion of such
remuneration may have been earned during the
previous year or years.
2. Employee pay figures, however, are accrual-based
figures from financial statements meaning that some of
the wages and salaries (for example bonuses) have been
earned, but not paid during that year.
3. The average employee pay fluctuates in accordance
with the Company’s performance, but to a lesser
degree than executive pay, as a smaller portion of total
remuneration consists of variable remuneration.
4. The Board members do not participate in any incentive
schemes, and correspondingly the Board remuneration
has remained rather stable with occasional increases to
annual and meeting fees. Variation mainly occurs due
to different number of Board and Committee meetings
during the year.
1.2 Pay-for-performance during the preceding five years
34 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Remuneration development and company performance 2020–2024
2020 2021 2022 2023 2024
CEO (Tommi Björnman, as of April 1, 2023) total remuneration¹
(EUR thousand) 385.2 604.2
Interim CEO (Klaus Korhonen, from November 30, 2022 to March
31, 2023) fixed remuneration² (EUR thousand) 20.4 62.4
Previous CEO (Petri Helsky) total remuneration³ (EUR thousand) 745.4 957.9 1,118.9
Index⁴ 100% 129% 153% 60% 81%
Employee pay (average)⁵
(EUR thousand) 59.9 53.4 58.9 63.9 66.9
Index⁴ 100% 89% 98% 107% 112%
Total Board remuneration⁶
(EUR thousand) 275.3 258.4 285.0 289.0 332.0
Index⁴ 100% 94% 104% 105% 121%
Charles Héaulmé 81.0
Jaakko Eskola 69.9 75.0 76.0 0.5
Andreas Ahlström 38.0 35.7 39.0 38.5 56.0
Björn Borgman 33.3 35.4 39.5 41.5 44.0
Nina Linander 43.5 46.8 52.5 52.5 56.6
Aaron Barsness 40.0 42.0 49.5
Laura Remes 37.0 44.5
Laura Raitio 38.0 35.7 39.0 1.5
Sari Pajari-Sederholm 37.3 34.9
Jan Johansson 76.3
Risto Anttonen 4.5
Hannu Kasurinen 4.5
3-year TSR⁷
(%) 12% 126% 41% -35% -45%
Share price development⁸
(EUR) 4.90 4.82 2.86 2.70 2.38
Index⁴ 100% 98% 58% 55% 49%
Comparable EBITDA
(EUR million) 60.9 47.0 15.3 15.8* 17.0
Index⁴ 100% 77% 25% 26% 28%
¹ CEO total remuneration includes all payments made to the CEO during the financial year.
² Previous Interim CEO Klaus Korhonen’s remuneration in 2022 and 2023 is from the period he acted as the interim CEO and includes only the fixed salary during the stated period.
³ Previous CEO Petri Helsky’s remuneration in 2020–2022 includes all payments made to the CEO during the period he acted as the CEO.
⁴ First year (2020) in the time-series set at 100%.
⁵ Employee pay is the wages and salaries of our personnel from the Financial Statements divided by the average number of employees.
⁶ Total Board remuneration includes all payments made to the Board during the financial year.
⁷ Total Shareholder Return (share price increase plus dividend yield) is calculated based on 3-month closing average prior to the end of the financial year. For example, the 3-year TSR for
2024 is calculated as (Q4/2024 average share price - Q4/2021 average share price) ÷ Q4/2021 average share price + (paid dividends in 2022, 2023 and 2024) ÷ Q4/2021 average share
price.
⁸ Share price development is calculated based on 3-month closing average prior to the end of the financial year.
* In the Remuneration report in year 2023 the Comparable EBITDA has been reported as 15.9. The correct amount is 15.8.
35Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
As stated in the Remuneration Policy, the General Meeting
determines the remuneration paid to the members of the
Board in advance, for one year at a time. Shareholders’
Nomination Board prepares independently a proposal on
the remuneration of the Board to be presented for the
General Meeting.
The basis for determination of the Board remuneration is
to ensure that the remuneration is competitive in relation
to the market and that the remuneration reflects the
competencies and efforts required from the members of
the Board to fulfill their duties.
Suominen’s AGM held on April 4, 2024, resolved to
increase the annual remuneration payable to the members
of the Board. The current remuneration is as follows:
- The Chair is paid an annual fee of EUR 74,000.
- The Deputy Chair is paid an annual fee of EUR 45,000.
- Other Board members are paid an annual fee of
EUR 35,000.
- Chair of the Audit Committee is paid an additional fee
of EUR 10,000.
- Further, the members of the Board receive a fee for
each Board and Committee meeting as follows:
- EUR 500 for each meeting held in the home country
of the respective member
- EUR 1,000 for each meeting held elsewhere than in
the home country of the respective member
- EUR 500 for each meeting attended by telephone or
other electronic means.
2. Remuneration of the Board of Directors
for the preceding financial year
At the AGM on April 4, 2024, 95,7% of the votes cast were
in favor of the Remuneration Report 2023. The PRC and
the Board have considered the feedback provided by the
shareholders at the AGM.
During 2024, Suominen has not exercised any rights to
reclaim (clawback) or cancel (malus) any paid or unpaid
incentives. Also, there was no need to deviate from the
Remuneration Policy during 2024.
1.3 Information on the previous vote for the Remuneration Report and any
deviations or clawbacks made
36 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Remuneration of the Board of Directors in 2024
Annual
remuneration
paid in cash
(EUR)
Value of
the annual
remuneration
paid in shares
(EUR)
Annual
remuneration
paid in shares
(nr of shares)
Meeting
fees
(EUR)
Total
(EUR)
Charles Héaulmé
(as of April, 2024)
Chair 55,433.62 18,566.38 6,902 7,000 81,000
Jaakko Eskola
(until April 4, 2024)
Chair 500 500
Andreas Ahlström Deputy Chair 33,710.07 11,289.93 4,197 11,000 56,000
Aaron Barsness Member 26,219.84 8,780.16 3,264 14,500 49,500
Björn Borgman Member 26,219.84 8,780.16 3,264 9,000 44,000
Nina Linander* Member 33,710.07 11,289.93 4,197 11,500 56,500
Laura Remes Member 26,219.84 8,780.16 3,264 9,500 44,500
* Chair of the Audit Committee; including an additional fee of EUR 10,000
Remuneration of the members of the Board of Directors, including the value of the remuneration paid in Suominen
shares, totaled EUR 332,000 in 2024.
Additionally, compensation for expenses has been paid in accordance with the Company’s travel policy.
75% of the annual fee was paid in cash and 25% in
Suominen’s shares. The shares were transferred out of the
own shares held by the Company by the decision of the
Board on May 16, 2024.
Members of the Board are not employees of Suominen
and do not participate in any Suominen incentive
scheme or pension arrangement. In accordance with the
pension laws in Sweden, the fees paid to the Swedish
members of the Board are subject to employment
pension contributions. All payments to the members of
the Board during 2024 have been in compliance with the
Remuneration Policy. In 2024, the following fees were paid
to the members of the Board:
37Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Tommi Björnman acted as the Company’s CEO in 2024.
In 2024, Tommi Björnman’s remuneration consisted of
fixed base salary (including fringe benefits), supplementary
pension, and variable incentives including rewards from
the Global STI Plan 2023 and share-based incentive
Matching restricted share plan (“MRSP”).
With the exception of Matching restricted share plan
(“MRSP”), CEO did not receive any LTI payments in 2024.
In 2024, Tommi Björnman was paid a total remuneration
of EUR 657,300, consisting of fixed salary and benefits of
EUR 604,170, a cash bonus from the Global STI Plan 2023
of EUR 58,242, a reward from Matching restricted share
plan (“MRSP”) of EUR 54,422 and a supplementary pension
payment of EUR 53,130.
In 2024, Tommi Björnman earned the following variable
incentives which are to be paid in 2025: The reward from
the Global STI 2024 was based on Group EBITDA (Earnings
before interest, taxes, depreciation, amortization, 50%
weight), Group CM (Contribution margin, 20% weight),
Group RME (Raw material efficiency, 10% weight) and
personal targets (20% weight). The outcome for these
targets in total was between threshold and target equaling
to EUR 67,992.
STI 2024 KPIs and achievement for the CEO
1
KPI Weight Achievement
Group EBITDA 50% Between threshold and target
Group CM 20% Between threshold and target
Group RME 10% Below threshold
Personal targets 20% Between target and maximum
Total 100% Between threshold and target
1
To be paid during 2025
3. Remuneration of the President & CEO
for the preceding financial year
12_pie
Base + benefits 75%
75
Non-statutory pension
8%
8
STI 9%
9
Matching restricted
share plan ("MRSP")
8
Total CEO pay in 2024 in proportions
Base + benefits 75%
Non-statutory pension 8%
STI 9%
Matching restricted share plan ("MRSP") 8%
12
0
20
40
60
80
100
120
140
160
2020 2021 2022 2023 2024
Share price (index)
Comparable EBITDA (index)
CEO remuneration (index)
13_columns and line
Share
price
(index)
Comparab
le EBITDA
(index)
CEO
remunerati
on (index)
2020
100 100 100
2021
98 77 129
2022
58 25 153
2023
55 26 60
2024
49 28 81
%
Company performance and
CEO remuneration 2020–2024
13
38 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Base salary +
benefits
Paid in 2024
(including
holiday pay):
Base salary:
EUR 480,489
Benefits:
EUR 11,017
The purpose is to provide fixed remuneration that
is competitive with the external market
and reflects the scale and complexity of the
Company’s business. Base salary includes taxable
fringe benefits, such as company car, lunch, and
telephone. Base salary is determined based on
a variety of factors, such as market level and the
individual’s skills and experience. Base salary is
typically reviewed annually.
Complies with the Policy: The CEO is eligible for
benefits such as company car, health insurance,
lunch, and telephone.
Supplementary
pension
arrangement
Paid in 2024:
EUR 53,130
The purpose is to provide a competitive level of
retirement income. The supplementary pension
plan is a defined-contribution pension scheme.
The pension allowance is determined based on
the CEO’s annual base salary.
Complies with the Policy: The CEO participates
in a non-statutory supplementary defined
contribution pension plan. The Company’s
contribution was 11.5% of the annual base salary in
2024. Pension starts from the age of 63.
Cash bonus
(short-term
remuneration)
Earned from
financial year
2023 (Global
STI 2023,
paid in 2024:
EUR 58,242
Earned from
financial year
2024 (Global
STI 2024), to be
paid in 2025:
EUR 67,992
The purpose is to steer towards and reward for
the achievement of short-term financial and
operational performance and to support the
delivery of the business strategy. Performance is
measured over one year and the cash bonus is
paid after the year end. The cash bonus is paid in
cash based on achieved one-year performance.
Complies with the Policy: Maximum STI% in 2024
was 60% of the annual base salary (excluding
holiday pay).
CEO Tommi Björnman’s remuneration in 2024 is further described in the table below.
39Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Share-based
incentive plans
(long-term
remuneration)
Earned from
Matching
restricted share
plan (“MRSP”)
June 1, 2023–
June 1, 2024,
paid in 2024:
EUR 54,422
With the
exception
of Matching
restricted share
plan (“MRSP”), no
LTI paid in 2024.
The purpose is to reward for the delivery of
long-term shareholder value, to align the CEO’s
interests with those of the shareholders and to
increase the value of the Company by offering
a share ownership-based reward structure. The
CEO may have share-based incentive plans, which
reward for the Company’s performance, or which
are used for retention purposes.
Currently Suominen’s performance-based long-
term incentive mechanism is a share-based plan,
which offers the CEO the opportunity of earning
a predetermined number of Suominen shares as
a reward. Payment of the reward is dependent on
the achievement of performance targets set by
the Board and continued employment.
The Board resolves the maximum number of
shares that can be earned from the plan. Long-
term incentive awards are denominated in number
of Suominen shares but paid in shares and cash
intending to cover the taxes that incur from the
receipt of shares.
Complies with the Policy: The CEO is eligible in
an MRSP plan, the aim of which is to align the
objectives of the shareholders and the CEO in
order to increase the value of Suominen in the
long-term, to retain the CEO at the Company,
and to offer him a competitive reward plan that is
based on acquiring, receiving and accumulating
the Company’s shares. Under the plan, the CEO is
expected to own or acquire up to 30,000 shares
of the Company. The Company will match the
share investment by way of the CEO receiving,
without consideration, up to 60,000 matching
shares (gross including also the proportion to
be paid in cash). The plan includes three vesting
periods, June 1, 2023–June 1, 2024, June 1,
2023–June 1, 2025 and June 1, 2023–June 1,
2026. The potential reward will be paid partly
in shares and partly in cash in three equal
installments after each vesting period, provided
that the CEO’s service in the Company is in force
at the time of the reward payment.
The CEO is eligible in the LTI Performance Period
2023–2025. His maximum earning opportunity
under the LTI plan equals to 168,500 shares
(gross) of the Company. The performance metric
in the plan is relative total shareholder return.
The possible reward under the plan will be paid in
spring 2026.
The CEO is eligible in the LTI Performance Period
2024–2026. His maximum earning opportunity
under the LTI plan equals to 213,231 shares (gross)
of the Company. The performance metrics in
the plan are absolute total shareholder return,
relative total shareholder return and raw material
efficiency. The possible reward under the plan will
be paid in spring 2027.
Share
ownership
prerequisite
The CEO must hold 50% of the net number of
shares given based on long-term performance-
based plan, until his or her shareholding in total
corresponds to the value of his/her annual
gross salary for the calendar year preceding the
payment of the reward. Such number of shares
must be held as long as his or her service in the
Company continues.
Complies with the Policy: The CEO has not sold
any shares received from the Matching Restricted
Share Plan (“MRSP”) vesting period 2023–2024.
40 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Tax management,
tax strategy and footprint
Tax management and tax strategy
Suominen Group (Suominen) has a tax policy as well
as tax guidelines approved by the Board of Directors
of Suominen. All Suominen group companies must
comply with the policy and guidelines. The Chief
Financial Officer (CFO) of Suominen as well as the
Group finance organization are responsible for the
overall tax management and planning. Day-to-day local
tax management is decentralized within the finance
organizations of the subsidiaries in the countries where
Suominen operates.
In line with its Code of Conduct, Suominen is committed
to operating in a responsible way and to complying with
ethically acceptable principles in all its activities. This
includes fulfilling all reporting requirements and paying all
legally imposed direct, indirect, and other taxes. Suominen
aims to fully comply with all statutory requirements and
compliance deadlines in the countries where it operates.
Suominen seeks to carry out reasonable and fair tax
planning and tax compliance in a manner that enables it
to maintain a stable and supportable tax position. When it
comes to the Group’s tax obligations, the main target is to
identify and acknowledge the fiscal status and obligations of
the Group in advance. No artificial tax driven arrangements
are carried out and all transactions are business driven.
Suominen’s objective in tax risk management is to avoid
retroactive changes to the tax positions it has taken in any
of its filings in all the jurisdictions it operates in, as well
as to avoid retroactive tax payments, interest payments
and any tax payment related penalties. Therefore,
Suominen’s objective is that it will not take or enter into
tax positions which are not considered supportable.
However, as Suominen’s objective is also to optimize its
tax charge in all jurisdictions it operates, it can be possible
that in certain situations Suominen takes or enters into
a tax position which is not fully certain. In that case, the
uncertain positions are evaluated by considering the risks
and rewards related to the tax position. The decision of
whether to enter into the uncertain tax position is made
based on a risk analysis.
Tax footprint
Suominen’s tax footprint represents the economic
impact on society arising from Suominen’s operations
in the countries where it operates. Suominen’s business
operations result in liabilities to pay taxes and similar
payments, as well as in a liability to collect and remit taxes
and similar payments that arise purely from the business
activities of the group companies.
Suominen’s tax footprint arises purely from the business
operations in the countries where it operates and
Suominen has not entered into any arrangements aiming
to change or rearrange its tax burden from what arises
from normal business operations. The trading of goods
between Suominen group companies is extremely limited,
and basically the group companies sell the products they
manufacture directly to the end customer. Due to the
business model, Suominen pays corporate income taxes
in the countries where the value from its production
is created.
The group companies receiving intra-group services are
charged a service fee. The pricing of the service fee is in
line with the arm’s length principle.
Suominen has companies only in those five countries –
Brazil, Finland, Italy, Spain and the United States – where
it has both production and sales operations. In respect of
taxes and similar payments, Suominen applies the laws and
regulations of each country.
The main markets of the Finnish group companies of
Suominen are abroad. Due to this, the export sales of
these companies significantly exceed their domestic
sales. No value added tax is levied on export sales, which
leads into a situation where the Finnish group companies’
deductible value added tax on their purchases subject
to value added tax is considerably higher than the value
added tax they remit based on their taxable sales. As a
result, Suominen receives a refund of value added tax in
Finland.
Suominen’s tax footprint includes not only the taxes and
similar payments that are group companies’ costs but also
the taxes and similar payments which the group companies
41Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Taxes and similar payments borne
2024 2023
EUR thousand Finland Other countries Finland Other countries
Corporate income tax, tax on profit -1,387 -1,211 321 -2,195
Property taxes -84 -1,255 -82 -1,704
Employer contributions and taxes -1,920 -11,079 -1,823 -10,338
VAT as expense -22 -10 -18 -5
Custom duties on export* − 0 − −
Custom duties on import* -259 -1,461 -286 -939
Excise duties -83 -526 -52 -378
Other taxes and similar payments -49 -258 -42 -276
Received tax credits − 257 − 1,134
TOTAL -3,805 -15,545 -1,983 -14,701
Taxes and similar payments collected and paid
2024 2023
EUR thousand Finland Other countries Finland Other countries
Net VAT 3,444 -11,858 3,498 -13,439
Payroll taxes and similar payments collected
and paid -3,502 -9,857 -3,956 -9,513
Withholding taxes on various payments -178 -131 -186 -153
TOTAL -237 -21,846 -644 -23,106
* Custom Duties are borne by the company importing or exporting goods. Custom Duties are not collected and/or paid by some other taxpayer. For these reasons Custom Duties are
reported as taxes borne.
collect and remit, such as indirect taxes. Deferred taxes,
which arise from the timing differences between taxation
and accounting and are recognized in the financial
statements, are not included in the tax footprint.
In 2024, Suominen employed on average 689 people
(FTEs) in its operations. As a result, Suominen generated
a positive economic contribution to the surrounding
society in the form of employees’ income taxes, as well
as social security contributions by both the company and
the employees. Thus, Suominen’s tax footprint includes
also the collected and remitted employees’ income taxes
as well as social security contributions, but the employer’s
taxes are clearly separated from the employees’ taxes and
payments in the report.
Suominen’s corporate income taxes are significantly
affected by tax losses generated in certain countries
where Suominen operates. Based on local tax laws and
regulations, tax losses are normally carried forward and
deducted from the taxable profits generated in the future.
Suominen is subject to group tax consolidation methods
in several countries based on each country’s tax laws and
regulations, which effectively means that Suominen’s
local companies are taxed on the local consolidated
taxable income.
Suominen’s corporate income tax paid in Finland is also
affected by withholding taxes collected in the country of
origin on the taxable income. As the income received is
from countries with which Finland has tax treaties to avoid
double taxation, these withholding taxes are credited in
the Finnish corporate taxation.
The group companies also pay property and real
estate taxes based on the land and buildings they own,
environmental and energy taxes as well as different
fiscal payments levied, for example, on manufacturing
operations. Suominen does not consider these as indirect
taxes to be collected and remitted but as taxes that are
costs for the group companies.
Certain countries where Suominen operates grant
eligible companies tax credits for example in the form
of additional depreciation and amortization of assets.
The granted tax credits can in some countries be used in
offsetting them against different tax or similar payments.
42 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Jaakko Eskola acted as the Chair of the Board until April 4, 2024.
More detailed, up-to-date information on the principal working experience and positions of trust of the members of the Board
is available at www.suominen.fi. Information on the Board’s remuneration is included in Suominen’s Remuneration Report.
* Shareholding refers to shares and share-based rights of each director and the corporations over which he/she exercises control on December 31, 2024.
Board of Directors
DECEMBER 31, 2024
CHARLES HÉAULMÉ
b. 1966
B. Sc. (Business Administration)
President and CEO, Huhtamäki Oyj
(until January 14, 2025)
Member of the Board since 2024
Chair of the Board since 2024
Independent member
Shareholding*:
19,902 Suominen shares
AARON BARSNESS
b. 1973
BA (Biology and Environmental
Studies)
CMO, Fazer Group
Member of the Board since 2022
Independent member
Shareholding*:
8,723 Suominen shares
BJÖRN BORGMAN
b. 1975
M.Sc. (Industrial Engineering)
CEO, HL Display AB
Member of the Board since 2020
Independent member
Shareholding*:
28,166 Suominen shares
ANDREAS AHLSTRÖM
b. 1976
M.Sc. (Economics and Business
Administration)
CEO, Ahlström Invest B.V.
Member of the Board since 2015
Deputy Chair of the Board since 2020
Non-independent member
Shareholding*:
30,989 Suominen shares
LAURA REMES
b. 1980
M.Sc. (Technology)
Vice President, Strategy and Business
Development, UPM Fibres
Member of the Board since 2023
Independent member
Shareholding*:
6,220 Suominen shares
NINA LINANDER
b. 1959
B.Sc. (Economics), MBA
Member of the Board since 2020
Independent member
Shareholding*:
31,828 Suominen shares
43Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Executive Management Team
DECEMBER 31, 2024
JONNI FRIMAN
EVP, Transformation Management
Office
b. 1971
M.Sc. (Industrial Engineering and
Management)
Joined Suominen in 2023
Shareholding*: –
TOMMI BJÖRNMAN
President & CEO
b. 1966
M.Sc. (Industrial Engineering and
Management)
Joined Suominen in 2023
Shareholding*:
39,556 Suominen shares
JANNE SILONSAARI
CFO
b. 1980
M.Sc. (Economics and Business
Administration)
Joined Suominen in 2023
Shareholding*: –
MARKKU KOIVISTO
EVP, EMEA & CTO
b. 1971
M.Sc. (Technology)
Joined Suominen in 2017
Shareholding*:
53,172 Suominen shares
Klaus Korhonen, EVP, HR & Legal, was a member of the Executive Management Team until May 30, 2024 and left the company on June 28, 2024.
Thomas Olsen acted as EVP, Americas and member of the Executive Management Team until August 25, 2024. Markku Koivisto acted as interim
EVP, Americas between August 26, 2024 – January 5, 2025. Mark Ushpol was appointed as the EVP, Americas and member of the Executive
Management Team on December 5, 2024 and started in the role on January 6, 2025.
Minna Rouru was appointed as the Chief People & Communications Officer and member of the Executive Management Team on October 21,
2024 and she started in the role on January 20, 2025.
Darryl Fournier was appointed as the Chief Operating Officer and member of the Executive Management Team on January 27, 2025 and he
started in the role on February 10, 2025.
More detailed, up-to-date information on the principal working experience, positions of trust and remuneration of the members of
Suominen’s Executive Team is available at www.suominen.fi.
* Shareholding refers to the shares and share-based rights of each executive and the corporations over which he/she exercises control on December 31, 2024.
44 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Report by
the Board of
Directors and
Financial
Information
Report by the Board of Directors…48
Consolidated financial statements (IFRS)…119
Parent company financial statements (FAS)…188
Auditor’s report…202
Assurance report on the Sustainability Statement…206
Independent auditor’s report on ESEF consolidated financial statements…209
Key ratios…211
Report by
the Board
of Directors
and Financial
Information
JANUARY 1DECEMBER 31, 2024
REPORT BY THE BOARD OF DIRECTORS…48
Highlights of Suominen’s financial year 2024…48
Shares and governance…51
Composition of the Nomination Board…54
Changes in the Executive team…54
Annual General Meeting…54
Corporate Governance Statement and
Remuneration Report…55
Business risks and uncertainties…55
Business environment…57
Sustainability statement…59
Basis for preparation…59
Governance…60
Strategy…63
Impacts, risks and opportunities…67
Suominen’s EU taxonomy report…71
Climate change…77
Pollution…84
Water…86
Resource use and circular economy…89
Own workforce…94
Business conduct…101
Appendix…106
Information on the separate financial statements
of the parent company…116
Outlook…116
Proposal by the Board of Directors for the use
of the profit…116
Events after the reporting period…116
46 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
CONSOLIDATED FINANCIAL STATEMENTS
(IFRS)…119
Consolidated statement of financial position…119
Consolidated statement of profit or loss…120
Consolidated statement of other comprehensive
income…120
Consolidated statement of changes in equity…121
Consolidated statement of cash flows…122
Notes to the consolidated financial statements…123
1. Material accounting policy information
– consolidated financial statements…123
2. Accounting estimates and judgements…126
3. Financial risk management…127
4. Management of capital…134
5. Goodwill…135
6. Intangible assets…137
7. Property, plant and equipment…139
8. Group companies…141
9. Equity instruments…142
10. Inventories…143
11. Trade and other receivables…144
12. Financial instruments…147
13. Equity and information on Suominen share…150
14. Interest-bearing liabilities…154
15. Provisions…157
16. Trade payables and other liabilities…158
17. Fair value hierarchy…159
18. Revenue from contracts with customers…160
19. Segment reporting and entity-wide disclosures…162
20. Other operating income and expenses…163
21. Leases and right-of-use assets…164
22. Fees paid to auditors…167
23. Employee benefits…168
24. Depreciation, amortization and impairment
of assets…170
25. Financial income and expenses…171
26. Income taxes…172
27. Share-based payments…176
28. Earnings per share…178
29. Adjustments to statement of cash flows…178
30. Information about key management personnel…179
31. Contingent liabilities…181
32. Events after the reporting period…182
Key ratios per share…184
Calculation of key ratios per share…185
PARENT COMPANY FINANCIAL
STATEMENTS (FAS)…188
Income statement…188
Balance sheet…189
Cash flow statement…191
Notes…192
AUDITOR’S REPORT…202
ASSURANCE REPORT ON THE SUSTAINABILITY
STATEMENT…206
INDEPENDENT AUDITOR’S REPORT ON ESEF
CONSOLIDATED FINANCIAL STATEMENTS...209
KEY RATIOS…211
Calculation of key ratios…212
47Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Highlights of Suominen’s
financial year 2024
- Net sales increased by 2.5% and were EUR 462.3 million (450.9)
- Comparable EBITDA improved to EUR 17.0 million (15.8)
- Cash flow from operations totaled to EUR 3.9 million (30.7)
- Board of Directors proposes to the Annual General meeting that no dividend shall be distributed
for the financial year 2024
Report by the Board
of Directors 2024
Key figures 2024 2023 2022
Net sales, EUR million 462.3 450.9 493.3
Comparable EBITDA, EUR million 17.0 15.8 15.3
EBITDA, EUR million 17.2 11.2 14.3
Comparable operating profit, EUR million -1.4 -2.8 -4.2
Operating profit, EUR million -1.3 -7.5 -9.0
Profit for the period, EUR million -5.3 -12.8 -13.9
Earnings per share, basic, EUR -0.09 -0.22 -0.24
Earnings per share, diluted, EUR -0.09 -0.22 -0.24
Cash flow from operations per share, EUR 0.07 0.53 0.24
Return on invested capital, rolling 12 months, % -0.7 -4.1 -4.2
Gearing, % 51.7 35.3 37.4
Dividend per share, EUR* 0.00 0.10 0.10
* 2024 the proposal of the Board of Directors to Annual General Meeting
The figures shown in brackets refer to the performance in 2023, unless otherwise stated.
Net sales
In 2024, Suominen’s net sales increased by 2.5% from
the comparison period to EUR 462.3 million (450.9). The
increase in sales was driven by higher sales volumes offset
by lower sales prices resulting from lower raw material
prices. Currencies impacted net sales negatively by
EUR 1.8 million.
Net sales of Americas business area were EUR 287.9
million (288.0) and net sales of EMEA business area
EUR 174.4 million (162.8).
EBITDA, operating profit and result
Comparable EBITDA (earnings before interest, taxes,
depreciation and amortization) was EUR 17.0 million (15.8).
EBITDA was EUR 17.2 million (11.2). The main contributor
48 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
to the improvement was higher sales margins driven by
the actions we took in commercial excellence. Currencies
impacted EBITDA negatively by EUR 0.8 million.
Comparable operating profit amounted to EUR -1.4
million (-2.8). Operating profit amounted to EUR -1.3
million (-7.5). Items affecting comparability of EBITDA and
operating profit were EUR +0.2 million (-4.8), related to
the closure of Mozzate plant as well as to the restructuring
program initiated in May.
In 2024, profit before income taxes was EUR -5.3 million
(-13.5). Income taxes for the financial year were EUR +0.1
million (+0.7).
The profit for the period was EUR -5.3 million (-12.8).
Net sales, EBITDA and operating profit
EUR thousand 2024 2023 2022
Net sales 462,318 450,851 493,298
Comparable EBITDA 17,001 15,813 15,257
EBITDA 17,174 11,163 14,287
Comparable operating profit -1,426 -2,750 -4,163
Operating profit -1,257 -7,517 -8,958
Financing
The Group’s net interest-bearing liabilities, calculated with
the nominal value of the interest-bearing liabilities at the
end of the review period, December 31, 2024, amounted
to EUR 60.8 million (44.1). Gearing was 51.7% (35.3%) and
equity ratio 37.9% (39.5%).
In 2024, net financial expenses were EUR -4.1 million
(-6.0), or 0.9% (1.3%) of net sales. Net effect of changes
in foreign exchange rates in financial items was EUR 1.0
million (-0.6).
Cash flow from operations in 2024 was EUR 3.9 million
(30.7). Cash flow from operations per share in 2024 was
EUR 0.07 (0.53). The financial items in the cash flow from
operations, in total EUR -5.0 million (-5.0), were principally
impacted by the interests paid during the reporting period.
The change in the net working capital in 2024 was EUR 5.9
million negative (EUR 25.7 million positive) mainly due to
more cash being tied up to inventory.
Capital expenditure
In 2024, the gross capital expenditure totaled EUR 16.0
million (11.2) and the largest items were related to the
growth investment initiatives Bethune, USA and Alicante,
Spain. Other investments were mainly for maintenance.
In 2024 Suominen announced two large investments
which strengthen its capabilities in sustainable products.
In May, Suominen announced an approximately EUR 10
million investment in enhancing and upgrading one of
the production lines in Bethune, South Carolina, USA. The
investment project will be completed in the first half of
2025. In August, Suominen announced of an investment
in a new production line to its site in Alicante, Spain. The
total value of the investment is approximately EUR 20
million and the investment project will be completed in
the second half of 2025.
Depreciations and amortizations were EUR -18.4 million
(-18.6) and impairment losses were EUR -0.0 million (-0.1).
Capital expenditure and depreciation, amortization
and impairment losses
EUR thousand 2024 2023 2022
Gross capital expenditure 16,004 11,223 9,712
% of net sales 3.5 2.5 2.0
Depreciation, amortization and
impairment losses -18,428 -18,680 -23,245
Key ratios
2024 2023 2022
Return on equity (ROE), % -4.4 -9.6 -8.8
Return on invested capital (ROI), % -0.7 -4.1 -4.2
Equity ratio, % 37.9 39.5 42.5
Interest-bearing net debt,
EUR million* 60.8 44.1 54.6
Capital employed, EUR million 178.0 168.4 199.8
Gearing, % 51.7 35.3 37.4
* At nominal value
Key ratios per share
2024 2023 2022
Earnings per share, EUR, basic -0.09 -0.22 -0.24
Earnings per share, EUR, diluted -0.09 -0.22 -0.24
49Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Quarterly development 2024 2024
EUR thousand 10–12 7–9 4–6 1–3
January 1−
December 31,
2024
Net sales 118,510 111,553 118,668 113,587 462,318
Comparable EBITDA 4,231 3,305 4,982 4,484 17,001
as % of net sales 3.6 3.0 4.2 3.9 3.7
Items affecting comparability 1,135 72 -1,224 190 173
EBITDA 5,365 3,377 3,758 4,673 17,174
as % of net sales 4.5 3.0 3.2 4.1 3.7
Comparable operating profit -265 -1,481 408 -88 -1,426
as % of net sales -0.2 -1.3 0.3 -0.1 -0.3
Items affecting comparability 1,135 72 -1,224 186 169
Operating profit 869 -1,409 -816 99 -1,257
as % of net sales 0.7 -1.3 -0.7 0.1 -0.3
Net financial items -275 -1,926 -1,095 -790 -4,086
Profit before income taxes 595 -3,335 -1,911 -691 -5,343
as % of net sales 0.5 -3.0 -1.6 -0.6 -1.2
Research and development
At Suominen, research and development activities
are organized into R&D function. In the end of 2024,
R&D function had 14 (14) employees. Research and
development expenses amounted to EUR 4.0 million (3.9),
corresponding to 0.9% (0.9%) of net sales.
Suominen’s vision is to be the frontrunner for
nonwovens innovation and sustainability. In addition, one
of the five focus areas of the strategy is to differentiate
with innovation and commercial excellence. Legislation
and consumer behavior drive for more sustainable
products and we continuously develop new products
made of renewable, recycled, compostable or plastic-free
materials to meet the market needs.
Suominen Corporation, the parent company of the
Group, owns all business-related patents and related
technologies, know-how, processes, recipes and all
other solutions developed by Suominen Corporation. The
company is targeting to have extensive industrial rights to
the nonwoven-based solutions and technologies as well
as test and pilot equipment needed. This way it can offer
best possible support to the Group companies to satisfy
the current and future customer needs.
Key ratios per share
2024 2023 2022
Cash flow from operations per
share, EUR 0.07 0.53 0.24
Equity per share, EUR 2.04 2.17 2.54
Price per earnings per share
(P/E) ratio -24.9 -12.9 -12.4
Dividend per share, total, EUR* 0.00 0.10 0.10
Dividend payout ratio, % N/A -45.1 -41.4
Dividend yield, % N/A 3.51 3.33
* 2024 the proposal of the Board of Directors to Annual General Meeting
Additional key ratios per share and calculation of the
key ratios are presented in the consolidated financial
statements.
Key ratios per share are share issue adjusted. Definitions
for key ratios per share are presented in the consolidated
financial statements. Key ratios are alternative
performance measures and the definitions of them are
presented in the Annual Report.
50 Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Shares and
governance
Share capital
The number of Suominen’s registered shares was
58,259,219 on December 31, 2024, equaling to a share
capital of EUR 11,860,056.00. Suominen has one series of
shares. Each share carries one vote in the Shareholders’
Meeting and right to an equally-sized dividend.
Suominen’s shares are affiliated in a book-entry system.
Share trading and price
The number of Suominen Corporation shares (SUY1V)
traded on Nasdaq Helsinki from January 1 to December
31, 2024, was 951,426 shares, accounting for 1.7% of the
average number of shares (excluding treasury shares). The
highest price was EUR 2.93, the lowest EUR 1.96, and the
volume-weighted average price EUR 2.53. The closing
price at the beginning of the review period, on January
2, 2024, was EUR 2.78 and the closing price on the last
trading date of the review period, on December 30,
2024, was EUR 2.28. The market capitalization (excluding
treasury shares) was EUR 131.6 million on December
31, 2024.
Authorizations of the Board of Directors
The AGM held on April 4, 2024, authorized the Board
of Directors to decide on repurchasing a maximum
of 1,000,000 company’s own shares. The company’s
own shares shall be repurchased otherwise than in
proportion to the holdings of the shareholders by using
the non-restricted equity through trading on regulated
market organized by Nasdaq Helsinki Ltd at the market
price prevailing at the time of acquisition. The shares shall
be repurchased and paid in accordance with the rules of
Nasdaq Helsinki Ltd and Euroclear Finland Ltd.
The shares shall be repurchased to be used in the
company’s share-based incentive programs, in order to
disburse the remuneration of the members of the Board of
Directors, for use as consideration in acquisitions related
to the company’s business, or to be held by the company,
to be conveyed by other means or to be cancelled.
The Board of Directors shall decide on other terms and
conditions related to the repurchase of the company’s
own shares. The repurchase authorization is valid until
June 30, 2025, and it revokes all earlier authorizations to
repurchase company’s own shares.
The AGM authorized the Board of Directors to decide
on the share issue, conveying the company’s own shares
held by the company and/or granting of options and other
special rights referred to in Chapter 10, Section 1 of the
Companies Act.
By virtue of the proposed authorization, the Board
of Directors may, by one or several resolutions, issue a
maximum of 5,000,000 shares. The share issue and shares
granted by virtue of options and other special rights are
included in the aforementioned maximum number. Option
and other special rights may not be granted as a part of
the company’s remuneration system.
The share issue can be made either against payment or
without payment and can also be directed to the company
itself. The authorization entitles the Board of Directors to
issue the shares also otherwise than in proportion to the
shareholdings of the shareholders (directed share issue).
The authorization can be used to carry out acquisitions or
other arrangements related to the company’s business, to
finance investments, to improve the company’s financial
structure, as part of the company’s remuneration system
or to pay the share proportion of the remuneration of the
members of the Board of Directors or for other purposes
decided by the Board of Directors.
The authorizations shall revoke all earlier authorizations
regarding share issue and issuance of special rights
Personnel
During 2024, Suominen employed 689 FTEs (682)
on average, and 722 (659) FTEs at the end of 2024.
The increase is mainly in the operations function.
Personnel related key ratios
2024 2023 2022
Average number of personnel
(FTEs - full time equivalent) 689 682 707
Wages and salaries, EUR thousand -46,621 -43,598 -41,660
51Suominen Annual Report 2024
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
entitling to shares. The Board of Directors shall
decide on all other terms and conditions related to
the authorizations. The authorizations are valid until
June 30, 2025.
In accordance with the resolution by the Annual
General Meeting, in total 25,088 shares were transferred
in May to the members of the Board of Directors as their
remuneration payable in shares.
As a part of the CEO’s share-based payment plan vested,
in total 9,556 shares were transferred to the CEO in June.
After these transactions, the maximum amount of the
authorization is 4,965,356 shares in aggregate.
Remuneration of the Board payable
in shares
The Annual General Meeting held on April 4, 2024, decided
that 75% of the annual remuneration of the members of
the Board of Directors is paid in cash and 25% in Suominen
Corporation’s shares.
The number of shares forming the remuneration portion
payable in shares was determined based on the share
value in the stock exchange trading maintained by Nasdaq
Helsinki Ltd, calculated as the trade volume-weighted
average quotation of the share during the two-week
period immediately following the date on which the
Interim Report of January–March 2024 of the company
was published. The shares were given out of the treasury
shares held by the company by the decision of the Board
of Directors on May 16, 2024.
Share-based incentive plans for the
management and key employees valid
in 2024
The Group management and key employees participate
in the company’s share-based long-term incentive plans.
The plans are described in more detail in the Financial
Statements and in the Remuneration Report, available on
the company’s website www.suominen.fi.
Company’s Performance Share Plan currently includes
three 3-year performance periods, calendar years
2022–2024, 2023–2025 and 2024–2026. The aim of
the Performance Share Plan is to combine the objectives
of the shareholders and the persons participating in the
plan in order to increase the value of the company in
long-term, to build loyalty to the company and to offer
them competitive reward plans based on earning and
accumulating the company’s shares.
Performance Share Plan: Ongoing performance periods
Performance period 2022–2024 2023–2025 2024–2026
Incentive based on Total Shareholder Return (TSR) Total Shareholder Return (TSR) Absolute Total Shareholder Return
(40%), Relative Total Shareholder
Return (40%) and operative
performance and sustainability goal
(20%)
Potential reward payment Will be paid partly in Suominen
shares and partly in cash in spring
2025
Will be paid partly in Suominen
shares and partly in cash in spring
2026
Will be paid partly in Suominen
shares and partly in cash in spring
2027
Participants 16 people 17 people 22 people
Maximum number of shares 130,500 500,500 845,191
The President & CEO of the company must hold 50% of
the net number of shares given on the basis of the plan,
as long as his or her shareholding in total corresponds to
the value of his or her annual gross salary. A member of
the Executive Team must hold 50% of the net number of
shares given on the basis of the plan, as long as his or her
shareholding in total corresponds to the value of half of
his or her annual gross salary. Such a number of shares
must be held as long as the participant’s employment or
service in a group company continues.
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The President & CEO’s share-based
incentive plan
The Board of Directors of Suominen Corporation resolved
on May 19, 2023, to establish a new share-based incentive
plan for the company’s President & CEO. The aim of
the plan is to align the objectives of the shareholders
and the President & CEO in order to increase the value
of Suominen in the long-term, to retain the President
& CEO at the company, and to offer him a competitive
reward plan that is based on acquiring, receiving and
accumulating the company’s shares.
Under the plan the President & CEO is expected to own
or acquire up to 30,000 shares of Suominen Corporation
at a price formed in public trading on Nasdaq Helsinki.
Suominen will match the share investment by way of
the President & CEO receiving, without consideration,
up to 60,000 matching shares (gross, including also the
proportion to be paid in cash).
The plan includes three vesting periods, June 1,
2023–June 1, 2024, June 1, 2023–June 1, 2025, and
June 1, 2023–June 1, 2026. The potential reward will
be paid partly in shares and partly in cash in three equal
installments after each vesting period, provided that the
President & CEO’s service in the company is in force at
the time of the reward payment. The cash proportion is
intended to cover taxes and tax-related costs arising from
the rewards to the President & CEO.
The first vesting period ended in June 2024, and in total
9,556 shares were transferred to the CEO.
Shareholders
At the end of the review period, on December 31, 2024,
Suominen Corporation had in total 4,813 shareholders.
Suominen is not aware of any shareholder agreements
related with the shareholding or use of voting rights.
Share ownership is presented in the consolidated financial
statements in Note 13. Related parties’ share ownership
is presented in Note 30 in the consolidated financial
statements.
Treasury shares
On December 31, 2024, Suominen Corporation held
532,116 treasury shares.
In accordance with the resolution by the Annual
General Meeting, in total 25,088 shares were transferred
in May to the members of the Board of Directors as their
remuneration payable in shares.
As a part of the CEO’s share-based payment plan vested,
in total 9,556 shares were transferred to the CEO in June.
Notifications under Chapter 9, Section 5
of the Securities Market Act
During the review period Suominen received no
notifications under Chapter 9, Section 5 of the Securities
Market Act.
Information pursuant to Decree 1020/2012 by
the Ministry of Finance, not presented in the
consolidated financial statements
There are neither restrictions of transfer nor redemption
or approval clauses related to the shares of Suominen
Corporation or securities entitling to shares.
Suominen Corporation is not participating in any
arrangements where the financial rights related to a share
or a security entitling to hold a share would have been
separated.
In accordance with the Articles of Association of
Suominen Corporation and the Companies Act, the
Shareholders’ Meeting elects the Board of Directors. In
accordance with the Articles of Association, the Board
of Directors decides on the nomination of the President
& CEO. The Articles of Association includes no specific
stipulation on altering the Articles of Association.
Shareholders’ Meeting decides on share issues and
acquisition of own shares, in accordance with the Limited
Liability Companies Act.
The members of the Board of Directors have no specific
contracts with the company regarding compensation in
case a member resigns, is dismissed or his/her task ceases
to exist due to a public tender offer. The President & CEO
had no separate contract to be applied if his contract
would have been terminated due to a public tender offer.
The principal terms and conditions of the service contract
of the President & CEO are presented in Note 30 of the
consolidated financial statements and in the Remuneration
Report 2024 of Suominen Corporation.
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Composition of the Nomination Board
Suominen’s three largest registered shareholders Ahlstrom
Capital B.V., Etola Group Oy and Oy Etra Invest Ab have
nominated the following members to the Shareholders’
Nomination Board:
- Jyrki Vainionpää, President & CEO of A. Ahlström Oy,
as a member appointed by Ahlstrom Capital B.V.
- Mikael Etola, CEO of Etola Group Oy, as a member
appointed by Etola Group Oy
- Peter Seligson, Chair of the Board of Directors of
A. Ahlström Oy, as a member appointed by Oy Etra
Invest Ab
Charles Héaulmé, Chair of Suominen’s Board of Directors,
serves as the fourth member of the Nomination Board.
The shareholders entitled to appoint members to the
Nomination Board were determined on the basis of the
registered holdings in the company’s shareholders’ register
on September 2, 2024.
In its organizing meeting on September 19, 2024, the
Nomination Board elected Jyrki Vainionpää as the Chair of
the Nomination Board.
Changes in the Executive team
On May 31, 2024, Suominen announced that Klaus
Korhonen, EVP, HR & Legal will leave the company.
On August 26, 2024, Suominen announced that Thomas
Olsen, EVP, Americas will leave the company. Markku
Koivisto was appointed as interim EVP, Americas in
addition to his current role as EVP, EMEA and CTO.
On October 21, 2024, Suominen announced that Minna
Rouru, M.Sc. Social Sciences, was appointed Chief People
& Communications Officer at Suominen. She became
a member of Suominen’s Executive Management Team
and reports to President and CEO Tommi Björnman. Mrs.
Rouru started in her new position in January, 2025.
On December 5, 2024, Suominen announced that Mark
Ushpol was appointed EVP, Americas business area. He is a
member of Suominen’s Executive Management Team and
reports to President and CEO Tommi Björnman. He started
in his new position on January 6, 2025.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen
Corporation was held on April 4, 2024.
The AGM adopted the Financial Statements for 2023
and discharged the members of the Board of Directors
and the President and CEO from liability for the 2023
financial year.
The AGM resolved to approve the Remuneration
Report for the company’s governing bodies for 2023. The
resolution made is advisory. The AGM resolved to support
the Remuneration Policy for the company’s governing
bodies. The resolution made is advisory. The AGM
approved the Board of Directors’ proposals concerning
the authorization for the Board to decide on repurchasing
of the company’s shares as well as issuance of shares
and granting of options and other special rights entitling
to shares.
The AGM confirmed the remuneration of the Board of
Directors. The Chair will be paid an annual fee of EUR
74,000, the Deputy Chair an annual fee of EUR 45,000
and other Board members an annual fee of EUR 35,000.
Chair of the Audit Committee will be paid an additional
fee of EUR 10,000. Further, the members of the Board
will receive a fee for each Board and Committee meeting
as follows: EUR 500 for each meeting held in the home
country of the respective member, EUR 1,000 for each
meeting held elsewhere than in the home country of
the respective member and EUR 500 for each meeting
attended by telephone or other electronic means.
75% of the annual fee is paid in cash and 25% in
Suominen Corporation’s shares. Compensation for
expenses is paid in accordance with the company’s valid
travel policy.
The AGM decided that the number of Board members
remains unchanged at six (6). Mr. Andreas Ahlström, Mr.
Aaron Barsness, Mr. Björn Borgman, Ms. Nina Linander
and Ms. Laura Remes were re-elected as members of the
Board. Mr. Charles Héaulmé was elected as a new member
of the Board. Mr. Charles Héaulmé was elected as the
Chair of the Board of Directors.
Ernst & Young Oy, Authorised Public Accountant
firm, was re-elected as the auditor of the company for
the next term of office in accordance with the Articles
of Association. Ernst & Young Oy appointed Mr. Toni
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Halonen, Authorised Public Accountant, as the principally
responsible auditor of the company.
Suominen published a stock exchange release on
April 4, 2024, concerning the resolutions of the Annual
General Meeting and the organizing meeting of the Board
of Directors.
In compliance with the resolution of the Annual General
Meeting, on April 15, 2024, Suominen paid out dividends
in total of EUR 5.8 million for 2023, corresponding to
EUR 0.10 per share.
Organizing meeting and permanent
committees of the Board of Directors
In its organizing meeting held after the AGM, the Board
of Directors elected Andreas Ahlström as Deputy Chair of
the Board.
The Board of Directors elected from among its members
the members for the Audit Committee, Personnel and
Remuneration Committee and Strategy Committee.
Nina Linander was re-elected as the Chair of the Audit
Committee and Andreas Ahlström and Laura Remes were
re-elected as members. Charles Héaulmé was elected as
the Chair of the Personnel and Remuneration Committee
and Björn Borgman and Aaron Barsness were re-elected
as members. Laura Remes was re-elected as the Chair of
the Strategy Committee and Andreas Ahlström and Aaron
Barsness were re-elected as members.
Corporate Governance Statement and
Remuneration Report
The Corporate Governance Statement 2024 and
Remuneration Report 2024 have been disclosed
separately from this Report by the Board of Directors
at www.suominen.fi/investors/corporate-governance.
Both are included also in the company’s Annual
Report 2024.
Business risks and
uncertainties
Manufacturing risks
Suominen has production plants in several European
countries, United States and Brazil. Interruptions at the
plants caused for example by machinery breakdown can
cause production losses and delivery problems. Ongoing
maintenance and investments aiming to extend the
lifetime of the assets are an essential part of ensuring the
operational efficiency of the existing production lines.
Suominen’s operations could be disrupted due to
abrupt and unforeseen events beyond the company’s
control, such as power outages or fire and water damage.
Suominen may not be able to control such events through
predictive actions, which could lead to interruptions
in business. Risks of this type are insured in order to
guarantee the continuity of operations. As Suominen
has valid property damage and business interruption
insurances, it is expected that the damage would be
compensated, and the financial losses caused by the
interruption of business would be covered.
Suominen uses certain technologies in its production.
In the management’s view, the chosen technologies
are competitive and there is no need to make major
investments in new technologies. However, it cannot be
excluded that the company’s technology choices could
prove wrong, and the development of new or substitute
technologies would then require investments.
Competition
Suominen has numerous regional, national and global
competitors in its different product groups. Products
based on new technologies and imports from countries
of lower production costs may reduce Suominen’s
competitive edge. If Suominen is not able to compete
with an attractive product offering, it may lose some of its
market share. Competition may lead to increased pricing
pressure on the company’s products.
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Price and availability of raw materials
Suominen purchases significant amounts of pulp- and
oil-based raw materials. Raw materials are the largest cost
item for operations. Changes in the global market prices
of raw materials can have an impact on the company’s
profitability. Suominen’s stocks equal two to four weeks’
consumption and it generally takes two to five months for
raw material price changes to be reflected in Suominen’s
customer pricing either through automatic pricing
mechanisms or negotiated price changes.
Extended interruptions in the supply of Suominen’s
main raw materials could disrupt production and have
a negative impact on the Group’s overall business
operations. As Suominen sources most of its raw materials
from a number of major international suppliers, significant
interruptions in the production of the majority of
Suominen’s products are unlikely.
Price and availability of energy
Energy costs represent a significant portion of Suominen’s
production costs. Suominen consumes mainly electricity
and gas. Higher prices as well as reduced availability of
energy could have an impact on Suominen’s profitability
through increased production costs.
Market and customer risks
Suominen’s customer base is fairly concentrated, which
increases the potential impact of changes in customer
specific sales volumes. In 2024, the Group’s ten largest
customers accounted for 69.4% (69.9%) of the Group’s net
sales. Long-term contracts are preferred with the largest
customers. In practice, the customer relationships are
long-term and last for several years. Customer-related
credit risks are managed in accordance with a credit
policy approved by the Board of Directors. Credit limits are
confirmed for customers on the basis of credit ratings and
customer history.
The demand for Suominen’s products depends on
possible changes in consumer preferences. Historically,
such changes have had mainly a positive impact on
Suominen, as they have resulted in the growing demand
for products made of nonwovens. However, certain
factors, including consumers’ attitude towards the use of
products made even partially of oil-based raw materials,
or their perception on the sustainability of disposable
products in general, might change the consumers’
buying habits. Suominen monitors the consumer trends
proactively and develops its product offering accordingly.
The company has had biodegradable, 100% plant-based
nonwovens in its portfolio for over 15 years and hence
is well positioned to respond to changes in customer
preferences related to sustainability and climate change.
Generally, the demand for nonwovens for wipes has
been resilient to changing economic conditions. However,
it is conceivable that high consumer price inflation could
lead to decline in end consumer demand for wiping
products as the consumers’ available income effectively
decreases.
Regarding the war in Ukraine, the direct impact to
Suominen’s business is minor as we have no customers
nor suppliers in Russia, Belarus or Ukraine. Suominen
is mostly affected by the indirect economic impacts of
the war.
The instabilities in different parts of the world continue
to cause general uncertainty.
Changes in legislation, political
environment, or economic conditions
Suominen’s business and products can be affected
directly or indirectly by political decisions and changes
in government regulations for example in areas such as
environmental policy or waste legislation. An example of
such legislation is the EU’s Single-Use Plastics Directive
that focuses on reducing marine litter. The potential exists
for similar regulations to expand worldwide. This creates
demand for more sustainable products, and Suominen is
well placed to respond to this increasing demand.
Global political developments could have an adverse
effect on Suominen. For instance, a political decision that
constrains the global free trade may significantly impact
the availability and price of certain raw materials, which
would in turn affect Suominen’s business and profitability.
Suominen’s geographical and customer-industry diversity
provide partial protection against this risk.
The relevance of the United States in Suominen’s
business operations increases the significance of the
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exchange rate risk related to USD in the Group’s total
foreign exchange position. Suominen manages its foreign
exchange position in accordance with its hedging policy.
The risks that are characteristic to South American
region, including significant changes in political
environment or exchange rates, could have an impact on
Suominen’s operations in Brazil.
Investments
Suominen continuously invests in its manufacturing
facilities. The deployment of the investments may delay
from what was planned, the costs of the investments may
increase from what has been expected or the investments
may create less business benefits than anticipated. The
deployment phase of investments may cause temporary
interruptions in operations.
Cyber and information security
Suominen’s operations are dependent on the integrity,
security and stable operation of its information and
communication systems and software as well as on
the successful management of cyber attack risks. If
Suominen’s information and communication systems
and software were to become unusable or significantly
impaired for an extended period of time, or the cyber
attack risks are realized, Suominen’s reputation as well
as ability to deliver products at the appointed time, order
raw materials and handle inventory could be adversely
impacted.
Financial risks
The Group is exposed to several financial risks, such as
foreign exchange, interest rate, counterparty, liquidity
and credit risks. The Group’s financial risks are managed
in line with a policy confirmed by the Board of Directors.
The financial risks are described in the Note 3 of the
consolidated financial statements.
Suominen is subject to corporate income taxes in
numerous jurisdictions. Significant judgment is required
to determine the total amount of corporate income tax at
Group level. There are many transactions and calculations
that leave room for uncertainty as to the final amount of
the income tax. Tax risks relate also to changes in tax rates
or tax legislation or misinterpretations, and materialization
of the risks could result in increased payments or
sanctions by the tax authorities, which in turn could
lead to financial loss. Deferred tax assets included in the
statement of financial position require that the deferred tax
assets can be recovered against the future taxable income.
Suominen performs goodwill impairment testing
annually. In impairment testing the recoverable amounts
are determined as the value in use, which comprises of
the discounted projected future cash flows. Actual cash
flows can differ from the discounted projected future cash
flows. Uncertainties related to the projected future cash
flows include, among others, the long economic useful life
of the assets and changes in the forecast sales prices of
Suominen’s products, production costs as well as discount
rates used in testing. Due to the uncertainty inherent in the
future, it is possible that Suominen’s recoverable amounts
will be insufficient to cover the carrying amounts of assets,
particularly goodwill. If this happens, it will be necessary to
recognize an impairment loss, which, when implemented,
will weaken the result and equity. Goodwill impairment
testing has been described in the consolidated financial
statements.
Non-financial risks and their management are described
in the CSRD section of this report.
Business environment
Suominen’s nonwovens are, for the most part, used in
daily consumer goods such as wet wipes as well as in
hygiene and medical products. In these target markets
of Suominen the general economic situation determines
the development of consumer demand even though the
demand for consumer goods is not very cyclical in nature.
North America and Europe are the largest market areas
for Suominen. In addition, the company operates in the
South American markets. The growth in the demand for
nonwovens has typically exceeded the growth of gross
domestic product by a couple of percentage points.
We follow closely market development and signals
from our customers, but the overall global economic
uncertainty and fierce competition continue to make
the longer-term visibility challenging. It remains to be
seen how the current economic climate impacts the end
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consumer demand and consumer preferences regarding
wipes. Historically, the wipes market has been rather
steady despite the general economic situation.
Instabilities in the Middle East, the war in Ukraine
and other geopolitical tensions continue to generate
uncertainty globally. Possible impacts to Suominen as
a company are expected to be mainly indirect. However,
possible effects on raw material and logistic costs would
impact Suominen directly. We continue to monitor
the situations.
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change. The source of uncertainty is the availability of data
from our upstream and downstream value chain.
Information subject to phase-in under standards E4
(Biodiversity and ecosystems), S1 (Own workforce), S2
(Workers in the value chain) and S4 (Consumers and
end-users) has been omitted in this statement on the
basis on Suominen Corporate not exceeding the average
number of 750 employees.
For the topic Own workforce, we have identified the
following material sub-topics for Suominen: working
conditions and equal treatment and opportunities for all.
Despite the phased-in implementation, we have partially
disclosed S1 information under Own workforce. Brief
description of policies, actions, targets and metrics are
reported under Own workforce. The following metrics
are phased-in and have not been disclosed in this
report: adequate wages, non-employees, training hours,
work-related ill health, work-life balance and gender
pay gap.
Material impacts, risks and opportunities related to
Biodiversity and ecosystems, Workers in the value chain
and Consumers and end-users are disclosed in Statement
of material impacts, risks and opportunities. A brief
description of the relevant targets, policies, actions and
metrics related to Biodiversity and ecosystems, Workers in
the value chain as well as Consumers and end-users can
be found below.
For the topic Biodiversity and ecosystems, we have
identified the following material sub-topics for Suominen:
direct impact drivers of biodiversity loss and impacts and
dependencies on ecosystems services. Biodiversity and
ecosystems are heavily connected with our business
model, since we are dependent on wood-based materials.
Direct impact drivers of biodiversity loss are partially
included in our Health & Safety, Environment and Quality
(HSEQ) Policy in terms of climate change, resource use
and pollution. We have not yet defined any biodiversity
and ecosystems related targets, actions or metrics.
For the topic Workers in the value chain, we have
identified the following material sub-topics for Suominen:
working conditions, equal treatment and opportunities for
Basis for preparation
General basis for preparation
Suominen publishes its sustainability statement as part
of its Report by the Board of Directors. This sustainability
statement is prepared in accordance with the Finnish
Accounting Act, European Sustainability Reporting
Standards (ESRS) and EU Taxonomy regulation.
The reporting period for all presented data is one
calendar year (January 1–December 31, 2024) as with
financial reporting. The statement is compiled for the
whole Suominen Group as with financial reporting.
Suominen’s sustainability reporting is based on our
double materiality assessment. Suominen renewed its
materiality assessment during 2023–2024 to comply with
the requirements of ESRS. Further information on the
double materiality process can be found in Description
of the processes to identify and assess material impacts,
risks and opportunities. The sustainability statement is
extended to include information on the material impacts,
risks and opportunities connected with Suominen’s direct
and indirect business relationships in the upstream and/or
downstream value chain. Upstream and downstream value
chain information related to policies, actions and targets
has been limited to information available in-house. Apart
from scope 3 emissions, upstream and downstream value
chain information related to metrics has been omitted.
No classified or sensitive information or information on
intellectual property, know-how or results of innovation
has been omitted from this report.
Specific circumstances
Disclosure requirements with a reference to the
financial statements include the following: E1-5, E1-6
and S1-6. Scope 3 emissions data from the upstream
and downstream value chain includes estimated data
using indirect sources, such as sector-averages. The
assumptions made are described in detail under Climate
Sustainability statement
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all and other work-related rights. We promote responsible
business practices in our supply chain and have a Supplier
Code of Conduct in place. Actions taken to identify,
monitor and prevent potential adverse impacts in our
supply chain include the establishment of a process to
assess our raw material suppliers, which is included as a
target in our Sustainability Agenda for 2020–2025 as well
as for 2025–2030.
For the topic Consumers and end-users, we have
identified the following material sub-topic for Suominen:
personal safety of consumers and end-users. Product
quality and safety are the key aspect of our business
model and strategy, and they are included in our HSEQ
Policy. In line with our HSEQ policy, we take responsibility
for the quality and continuous improvement of our
work and our products, and we strive to achieve our
goal of zero defects. Actions taken to identify, monitor
and prevent potential adverse impacts to consumers
and end-users include promotion of our Quality
Culture, ensuring compliance with laws and regulations,
continuous improvement and engagement with suppliers
and customers. We have not yet set any measurable
time-bound out come-oriented targets or metrics to
reduce our greenhouse gas emissions, which will be set
in 2025.
Governance
Governance roles and responsibilities
Suominen’s administrative, management and supervisory
bodies include our Board of Directors and Executive
Management Team. Both the Board and the Executive
Management Team have members with long-term
experience and expertise in the nonwoven or fiber-based
product industry and of operating in Suominen’s target
markets. The extensive experience of our Board
and Executive Management Team members offer also
insight into many sustainability-related topics such as
the identified material impacts, risks and opportunities.
The Executive Management Team’s experience of the
nonwoven industry is also valuable for integrating
sustainability into Suominen’s operations throughout
the organization.
The management of impacts, risks and opportunities are
integrated with our internal processes related to strategy,
compliance, reporting and data management. Our strategy
is under the responsibility of the Board and the Executive
Management Team, and it is closely connected with
our ambition of minimizing our environmental impacts,
mitigating financial risks and pursuing the financial
opportunities related to sustainable nonwovens and
business practices. Topics related to our material impacts,
risks and opportunities, strategy and target progression
are presented to the Board or the Executive Management
Team regularly. The Board and the Executive Management
Team both have responsibility related to the oversight of
impacts, risks and opportunities and related issues.
Board of Directors
The highest decision-making body in sustainability
and climate-related matters, covering also risks and
opportunities, is the Board of Directors. The Board is
responsible for the administration and proper organization
of Suominen’s operations and for making decisions on
matters that are likely to have a major impact on the
Company. The Board had six members at the end of
2024, 83% of which are independent from Suominen.
There are no executive members or representation of
employees and other workers in the Board. The Board’s
gender diversity was 33% in 2024. The gender diversity
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was calculated as an average ratio of female to male
board member.
The Board approves Suominen’s Sustainability Agenda,
including sustainability-related targets and policies.
Progress in sustainability targets is reported to the Board
regularly. Progress reports are presented by the President
& CEO or the Chief Financial Officer (CFO). The Board
regularly reviews and approves the key company policies
related to Business Conduct.
In addition, sustainability is discussed in the Audit
Committee quarterly and the Audit Committee receives
progress reports on sustainability reporting. The Chair and
members of the Audit Committee are elected annually
by the Board from among its members. The Committee
comprises of at least three members. The members of the
Audit Committee must be independent of the Company,
and at least one member must also be independent of the
Company’s significant shareholders. The Audit Committee
reports on its actions to the Board of Directors.
The Audit Committee reviewed Suominen’s double
materiality assessment and the list of material impacts,
risks and opportunities in May 2024. The approved
impacts, risks and opportunities cover all the material
impacts, risks and opportunities identified in the double
materiality assessment and presented in this report. The
Audit Committee also assists the Board in supervising
the company’s corporate governance and legal and
compliance related matters. All reports made through the
SpeakUp Line are reported to the Audit Committee.
The expertise of the Board of Directors is ensured in the
recruitment process. When assessing the composition of
the Board, the Shareholders’ Nomination Board considers,
among other things, whether the Board possesses a broad
range of business knowledge. If additional expertise is
required, internal or external experts are brought in.
To ensure sufficient sustainability-related expertise,
the Audit Committee monitors the company’s reporting
capabilities, competence and resources, and reports
to the Board of Directors. Matter specialists are invited
to participate in discussions if required. The Board of
Directors may then instruct the CEO to take necessary
actions to improve reporting capabilities.
Executive Management Team
The Executive Management Team (EMT) consisted of
four members at the end of 2024, chaired by the CEO.
The Executive Management Team member diversity
metrics are disclosed in Own workforce. The Sustainability
Agenda, related targets and supporting policies and
processes, are owned by the Executive Management
Team. The Executive Management Team is responsible
for the Sustainability Agenda. Sustainability & Marketing
function, which currently operates under the CFO,
has responsibility for implementing and reporting the
Sustainability Agenda. Suominen’s operations and support
functions are responsible for implementing the Group
level sustainability initiatives to meet the targets. The
CFO is responsible for sustainability reporting as well as
the Group’s Enterprise Risk Management process, which
includes sustainability-related risks.
The Group’s Enterprise Risk Management process
is conducted on an annual basis. The work is led by
the CFO, however, involving all EMT members as well
as key business units and functions. In addition, key
members of the EMT were involved in the double
materiality process to identify and rate impacts, risks,
and opportunities. The overall results were validated by
the whole EMT. Sustainability is on the agenda of the
Executive Management Team on a regular basis, which
enables effective management of sustainability. Subject
matter experts are invited to participate in discussions if
required. The President & CEO has ultimate responsibility
for sustainability and reporting to the Board.
The CFO, supported by the General Counsel, is
responsible for Legal & Compliance. The CFO reports
to the CEO and updates the CEO and the Executive
Management Team on legal and compliance related topics
on a regular basis as well as brings issues to light when
necessary. The CFO and the General Counsel give updates
to the Audit Committee quarterly and to the Board of
Directors as needed on legal and compliance related
matters. The Executive Management Team participates in
internal trainings on legal and compliance related topics.
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Integration of sustainability-related
performance in incentive schemes
Suominen has both short- and long-term performance-
based incentives for which the Board annually selects
appropriate performance metrics that steer towards the
implementation of Suominen’s strategy and achievement
of sustainability and financial results. Members of the
Board are not employees of Suominen and do not
participate in any Suominen incentive scheme or pension
arrangement. Pay-for-performance philosophy is widely
followed at Suominen, and many of the performance
metrics in the CEO’s incentive plans are concurrently
used in employees’ incentive plans. However, a more
significant portion of the CEO’s total compensation is tied
to performance-based incentives, as the Company aims to
ensure a strong link between executive remuneration and
the financial performance of the company.
Raw material efficiency is considered as a performance
benchmark and is included in Suominen’s remuneration
policies. In 2024, we included raw material efficiency
(RME) both in the short- and long-term incentive plans
of managerial positions. The proportion of variable
remuneration dependent on the RME is 10% for the
short-term and 20% for the long-term incentive plans.
Suominen has not integrated climate change related
performance, such as GHG emission reductions, in its
incentive schemes.
Statement on due diligence
We have partially adopted due diligence processes in our
operations. The main aspects are related to a number of
cross-cutting and topical disclosures. Below is presented
a mapping of the core elements of due diligence in this
sustainability statement.
Core elements of due diligence Pages
Embedding due diligence in governance, strategy
and business model 63, 101–105
Engaging with affected stakeholders in all key steps
of the due diligence
65, 95–96,
102–104
Identifying and assessing adverse impacts
64–68, 94,
103–105
Taking actions to address those adverse impacts
96–99,
103–105
Tracking the effectiveness of these efforts and
communicating
96–99,
101–105
Risk management and internal controls
over sustainability reporting
Suominen does not have a separate risk management
process for sustainability reporting. However, Suominen
identifies and mitigates risks throughout the year to ensure
completeness and conformity of data and efficiency of the
reporting process. Identified risks related to sustainability
reporting are incorporated into relevant internal functions
and processes where appropriate, such as policies,
principles, risk management and internal controls.
Significant findings are reported to the CFO, who then
reports the findings to the EMT if necessary.
Increasing reporting requirements from legislation has
been recognized as a risk, which is regularly followed,
and the requirements are being implemented in various
functions at Suominen. Conformity of data has also
been recognized as a risk, since data is collected on
site-level. To mitigate this risk, site-specific data needed
for sustainability reporting is collected on site level and
consolidated by Suominen group sustainability function.
The conformity and completeness of the data is reviewed
by the group sustainability function. The data collection
process is designed to be uniform to ensure all data from
different sites is collected in the same format and level of
detail. Sustainability data management will be improved
by introducing new software in 2025 to support data
collection.
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Strategy
General strategy
The cornerstones of our strategy are sustainability
and innovations, and we continuously develop our
offerings and operations accordingly. Suominen’s
overall sustainability-related goal and vision is to
be the frontrunner in nonwovens innovation and
sustainability and to grow and improve profitability
through sustainability, customer focus and efficiency.
We pursue growth by creating innovative and more
sustainable nonwovens for our customers and improve
our profitability through more efficient operations and
a high-performance culture. Our goal is also to use
resources efficiently and to operate with the smallest
possible impacts on the environment. Our sustainability
goals impact our product portfolio and operations globally
and are related to all our significant markets and customer
groups. The main challenge for implementing our
strategy could be if the expectations and interests of our
stakeholders, such as customers, investors or consumers,
shift away from sustainability. Other challenges might be
high raw material costs, or if new legislation that does not
support our ambitions in sustainability, is introduced.
Suominen’s Sustainability Agenda defines and
highlights our sustainability themes and targets. The
Agenda is approved by the Board of Directors, and its
progress in different areas is regularly monitored. The
Board approved the Sustainability Agenda 2025–2030
in 2025. Metrics for the new Agenda have been defined
and the implementation plan will be created in 2025.
The Sustainability Agenda for 2025–2030 will have the
same four themes as in the previous agenda which are
People and safety, Sustainable nonwovens, Low impact
manufacturing and Corporate citizenship. We have set
outcome-oriented targets related to these sustainability
themes, except for targets to reduce our greenhouse
gas emissions, which will be set in 2025. The targets are
described in detail respectively under the topic-specific
ESRS disclosures.
Business model and value chain
Suominen manufactures nonwovens as roll goods for
wipes and other applications. Our vision is to be the
frontrunner for nonwovens innovation and sustainability.
Suominen creates value by taking fiber raw materials and
turning them into nonwovens that our customers convert
into both consumer and professional end products. The
end products made of Suominen’s nonwovens are present
in people’s daily life worldwide. There have been no
significant changes in our product offering since the last
reporting period.
In accordance with our value creation model, our
inputs can be divided into financial resources, natural
resources, intellectual capabilities, social relationships
and manufacturing resources. Our approach to gathering,
developing and securing these inputs relates to our
vision to be the frontrunner in nonwovens innovation
and sustainability and a trustworthy partner. We also aim
to minimize availability issues by being close to our key
customers and by sourcing most of our raw materials
from a number of major international suppliers. Our
outputs include products and solutions, waste, emissions
and water. Suominen’s nonwovens create value for
our customers and end-users by offering safe and
high-quality wiping, medical and hygiene products and
diverse sustainable alternatives, including biodegradable,
compostable and plastic-free products and products
manufactured using recycled materials.
Our position in our value chain is in between raw
material suppliers and our customers, who convert our
products into their end-products. Our main actors in our
upstream value chain include our suppliers. The majority
of our raw material suppliers provide fossil- and/or plant-
based raw materials for production. Our main actors
in our downstream value chain include transportation
companies, our customers, product end-users and
waste operators.
Suominen has two main market areas, Europe and the
Americas, and a total of over 700 employees. Number of
employees by geographical area is reported under Own
workforce.
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Stakeholder engagement
Suominen’s stakeholders are entities or individuals that
have an impact on or are impacted by our business. Our
stakeholder groups differ greatly, and thus the focus areas
and the channels of communication vary according to
each groups’ interests and needs. The purpose of the
stakeholder engagement is to provide important insights
into the expectations and concerns our stakeholders have
and help us to identify the opportunities and risks in our
operating environment. We want to engage in open and
continuous dialogue with our stakeholders and strive for
transparent communication through various channels.
Continuous interaction with our stakeholders is also
a key aspect in Suominen’s approach to sustainability.
The views and interests of stakeholders regarding
material sustainability related impacts are presented to
management and the Board of Directors to serve as a basis
for decision-making.
Stakeholder groups and their expectations, along
with the engagement channels in use and the effect on
Suominen’s strategy and business models are presented in
the table below.
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Stakeholder group Expectations and interests
Meeting stakeholder expectations /
Outcome of engagement Engagement types/channels
Employees - Safe working environment
- Compensation and benefits
- Development opportunities
- Equal treatment
- Well-being and positive workplace
culture
- Strong safety culture, including
Behavior Based Safety program, Life
Saving Rules, and the ISO 45001
standard certifications
- Fair and equal compensation and
benefits
- Performance Development Process
including individual competence
development plans
- Recruitment policy, HR principles
- Open communication
- Code of Conduct
- Daily interaction
- Global intranet and internal
newsletter
- Global employee engagement survey
and local pulse surveys
- Performance development
discussions
- Stakeholder survey
- Trainings and e-Learning platform
Suppliers - Long-term partnership
- Open communication and
cooperation
- Payment for materials and services
- Continuous cooperation
- Smooth and efficient raw material
quality assurance process
- Supplier Code of Conduct
- General Terms and Conditions of
Purchase
- Meetings and other direct contacts
- Requests for tender and contracts
- Stakeholder survey
Customers - Product quality and safety
- Innovation and product development
- Reducing environmental impact
- Responsible fiber sourcing
- Value for the customer
- Long-term partnership
- Cost-competitiveness
- Quality and safety assurance through
audits and certifications
- Sustainable product portfolio
and product development with
customers
- Low impact manufacturing including
resource efficiency targets
- Development of expertise
- Continuous cooperation and on-site
visits
- Participation in exhibitions and trade
fairs
- Code of Conduct
- Meetings and other direct contacts
- Exhibitions and other industry events
and industry media
- External communication, e.g.,
customer newsletter
- Audits and certificates
- Customer and stakeholder surveys
- Customer service
- Requests for tender and contracts
Investors,
shareholders,
analysts
- Market value and dividends
- Sustainable growth
- Accurate, consistent, and reliable
information
- Risk assessment and management
- Innovation and product development
- Sustainability
- Communication in accordance with
Finnish legislation, EU directives,
stock exchange rules and other
regulations
- Implementation of our strategy
aiming for growth and profitability
- Implementation of our Sustainability
Agenda
- Transparent reporting, sustainability
reporting in accordance with CSRD
- Code of Conduct
- General Meetings of shareholders
- Quarterly and annual reporting
- Stock exchange and press releases
- Shareholder and analyst events
- Website and other digital channels
- Stakeholder survey
Political decision-
makers, public
authorities, NGO
- Regulatory compliance
- Responsible supply chain
- Responsible operations
- Compliance with laws and
regulations
- Whistleblowing channel
- Sustainability reporting in
accordance with CSRD
- Code of Conduct
- Reporting and other external
communication
- Direct contacts
- Stakeholder survey
Society and local
communities
- Jobs and fair employment practices
- Responsible and sustainable
production
- Regulatory compliance
- Tax contribution
- Employment and fair compensation
- Recruitment policy and HR principles
- Low impact manufacturing including
resource efficiency targets
- Good corporate citizenship
- Tax contribution
- Code of Conduct
- Media
- Reporting and other external
communication
- Stakeholder survey
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Statement of material impacts,
risks and opportunities
Suominen has identified material impacts, risks and
opportunities related to the following sustainability
topics: climate change, pollution, water, biodiversity and
ecosystems, resource use and circular economy, own
workforce, workers in the value chain, consumers and
end-users and business conduct. All identified material
impacts, risks and opportunities are covered by ESRS
Disclosure Requirements, and no additional entity-specific
sustainability matters were identified to be material. As an
entity-specific disclosure, we have disclosed our Business
conduct-related targets.
Suominen has identified material negative actual or
potential impacts related to the environment and people.
Our most severe negative impacts are related to our
emissions, water consumption, resource use intensity,
single-use nature of the end-products made from our
products, our contribution to drivers of biodiversity
loss, and potential microplastic pollution from disposal
of our plastic-based products. We also identified
significant positive impacts that our operations have
on the environment and people. Most of these positive
impacts are related to the sustainability of our product
portfolio and our existing policies and processes.
Our most significant financial risks related to
sustainability issues originate from the changing
regulatory landscape and the increasing expectations
of our customers and investors. Since sustainability is a
cornerstone of Suominen’s strategy, we also identified
significant opportunities that the sustainability transition
can offer us.
No material risks or opportunities were identified for
which there is a significant risk of a material adjustment
within the next annual reporting period to the carrying
amounts of assets and liabilities reported in the related
financial statements.
The impacts, risks and opportunities assessed to be
material for Suominen are presented under the topic-
specific ESRS disclosures. Impacts, risks and opportunities
related to Biodiversity and ecosystems, Workers in the
value chain and Consumers and end-users, which are
subject to phase-in and do not have topic-specific
chapters, are presented in the table below.
Phased-in impacts, risks and opportunities
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Biodiversity and
ecosystems
- Dependency on plant-
based raw materials
- Some materials sourced
from high-risk countries
- Contribution to climate
change, natural resource
use, and indirectly
land-use change and
deforestation
- Moving away from fossil-
based raw materials to
plant-based raw materials
- Products made of
responsibly sourced raw
materials in portfolio
- Use of FSC
®
-, PEFC- and
SFI
®
certified materials
- Reputational risks
- Increasing expectations in
the value chain
- Dependency on plant-
based raw materials
- Future legislation related
to plant-based raw
materials
Workers in the
value chain
- Possible violations of
legislation and Supplier
Code of Conduct in the
supply chain
- Mandatory Supplier Code
of Conduct in place
promoting good practices
- EcoVadis rating system in
place
- Employee and contractor
safety increasing
profitability and good
reputation
Consumers and
end-users
- Possible safety
shortcomings of medical
and hygiene products
- Safety of medical and
hygiene product
- Product quality and safety
problems
- Reputational risks
- Product quality and safety
as a selling point
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Changes to material impacts,
risks and opportunities
Suominen conducted its first double materiality
assessment in 2024. Our previous materiality assessment
was conducted in 2019. The scope of the 2019 materiality
assessment was different from the double materiality
assessment and the results are not directly comparable.
Statement of interaction with strategy and
business model
We expect sustainability transition and our material
impacts, risks and opportunities to have a significant
effect on our business model, value chain, strategy and
decision making. Our strategy is closely connected with
our ambition of minimizing our environmental impacts,
mitigating financial risks and pursuing the financial
opportunities related to sustainable nonwovens and
business practices. As a response to the effect that these
material impacts, risks and opportunities can have on
Suominen and our value chain, we began the work to
update our Sustainability Agenda in 2024.
Value chain mapping was carried out in 2024, and we
will continue analyzing the results and utilizing them in
our raw material sourcing practices and renewing the
sustainability due diligence process further in 2025.
More detailed information regarding the interaction of
material impacts, risks and opportunities with our strategy
and business model, and where in our value chain they are
concentrated, is presented under the topic-specific ESRS
disclosures. Brief description of the interaction of material
impacts, risks and opportunities with our strategy and
business related to Biodiversity and ecosystems, Workers
in the value chain and Consumers and end-users, which
are subject to phase-in and do not have topic-specific
chapters, is disclosed under Basis for preparation.
Resilience analysis
The resilience of our strategy and business model in
relation to our impacts, risks and opportunities will be
assessed with a resilience analysis in 2025.
Impacts, risks and opportunities
Description of the processes to identify
and assess material impacts, risks and
opportunities
General process
The process of identifying and assessing material impacts,
risks and opportunities through a double materiality
assessment followed the requirements of the European
Sustainability Reporting Standards. The double materiality
assessment was carried out in the beginning of 2024 with
an external partner. The scope of the double materiality
assessment included all Suominen’s operations and
geographies and our key business relationships within
our value chain. Below is a detailed description of how
material impacts, risks and opportunities for Suominen
were identified and assessed.
Stakeholder engagement
The key first step of the double materiality assessment
process was to identify our affected stakeholders and
users of Suominen’s sustainability statements to gain
understanding of their views on Suominen’s impacts, risks
and opportunities. The identification process included
mapping of our value chain, which provided valuable
information on our key stakeholders in both upstream and
downstream of our value chain. The following stakeholder
groups were identified as key stakeholders to be engaged
during the process: our own employees and management
team, our customers, end-users of our products,
shareholders and suppliers.
The engagement methods included an online survey
sent to our own employees and selected customers and
suppliers, a management team workshop, and interviews
with a customer, a shareholder and two suppliers.
End-users of our products could not be directly reached
during the engagement, but the impacts affecting them
were discussed internally and with our customers.
Impact, risk and opportunity identification
Utilizing our subject matter experts and the views of our
key stakeholders, a list of potential material impacts, risks
and opportunities was drafted. The list of sustainability
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matters in ESRS 1 was used to ensure that all key
sustainability matters were included in the assessment.
No sector specific sustainability matters were identified.
The list included actual and potential positive and negative
impacts which we are involved through our own activities
or because of our business relationships. Financial risks
and opportunities were identified in connection with
impacts, dependencies and other external drivers.
Impact, risk and opportunity prioritization and
materiality scoring
After potentially material impacts, risks and opportunities
were identified, they were prioritized to assess the
preliminary materiality of different sustainability matters.
The prioritization was based on the stakeholder
engagement and our own views on materiality. The
final materiality was assessed by carrying out materiality
scoring. The materiality of negative impacts was assessed
based on their severity (considering scope, scale and
irremediability) and of positive impacts based on their
scope and scale. For potential impacts, the likelihood was
also assessed. The materiality of risks and opportunities
was assessed based on their magnitude and likelihood.
The scale, scope, irremediability, likelihood and
magnitude were assessed on a 1 to 5 qualitative
scale, which were then used to calculate the overall
materiality score for each impact, risk and opportunity.
The magnitude and likelihood criteria were based on
our existing Enterprise Risk Management processes and
thresholds. The scale, scope and irremediability criteria
were developed for the purpose of the double materiality
assessment. The materiality of sustainability topics and
sub-topics were determined by the highest score within
that topic or sub-topic. This approach was chosen to
ensure that no topics or sub-topics with material impacts,
risks or opportunities were considered as immaterial. The
important, significant and critical materiality levels were
deemed as material, while the informative and minimal
materiality levels were considered as immaterial. The
double materiality assessment results were reviewed by
the Audit Committee and validated by the whole Executive
Management Team.
The sustainability-related risks in connection with
the double materiality assessment have been partially
integrated with Suominen’s overall Enterprise Risk
Management processes. The double materiality process
focused solely on risks related to sustainability matters.
The process to identify, assess and manage opportunities
is directly linked to our strategy development and
decision making.
Topic-specific processes
Identifying and assessing material impacts,
risks, and opportunities related to climate
change
To identify all impacts, risks and opportunities related to
climate change, Suominen’s business activities and the
upstream and downstream value chains were analyzed.
Suominen’s climate-related impacts were assessed on the
basis of the results of the 2022 greenhouse gas emissions
calculations. Climate related physical and transition risks
in Suominen’s value chain were preliminary screened and
analyzed during the double materiality assessment based
on our expertise and the knowledge of our stakeholders.
A more detailed climate risk assessment including a
scenario analysis will be conducted in conjunction with
the resilience analysis for climate change in 2025.
Identifying and assessing material impacts,
risks, and opportunities related to pollution
To identify all impacts, risks and opportunities related to
pollution, Suominen’s business activities and the upstream
and downstream value chains were screened and
analyzed. Impacts, risks and opportunities were identified
based on our expertise and the knowledge of our
stakeholders. No consultations with affected communities
were carried out.
Identifying and assessing material impacts,
risks, and opportunities related to water and
marine resources
To identify all impacts, risks and opportunities related
to water and marine resources, Suominen’s business
activities and the upstream and downstream value chains
were analyzed. Impacts, risks and opportunities were
identified based on our expertise and the knowledge of
our stakeholders.
Suominen has evaluated the scarcity of water at our
sites by using the World Resources Institute’s Water Risk
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Atlas. One of our production sites is in a high-risk area
where water can be considered a scarce resource. No
consultations with affected communities were carried out.
Identifying and assessing material impacts,
risks, and opportunities related to biodiversity
and ecosystems
To identify all impacts, risks and opportunities related
to biodiversity and ecosystems, Suominen’s business
activities and the upstream and downstream value chains
were analyzed. While fossil-based fiber supply chains
were also identified to have biodiversity impacts, due to
the nature of wood-based raw materials, a special focus
was given to our wood-based fiber supply chains when
assessing biodiversity-related impacts. We assessed
the origin of our wood-based materials and identified
high-risk countries. Impacts, risks and opportunities
were identified on the basis of our expertise and the
knowledge of our stakeholders. Risk identification
included assessment of our dependencies on biodiversity
and ecosystems and their services. The double materiality
assessment did not include a separate assessment of
transition, physical or systemic risks. No consultations with
affected communities were carried out.
We screened our sites for biodiversity-sensitive areas
using the Integrated Biodiversity Assessment Tool (IBAT)
data map in 2024. None of our sites are located in or
near a biodiversity-sensitive area. Therefore, we have
concluded that it is not currently necessary to implement
biodiversity mitigation measures at our sites.
Identifying and assessing material impacts,
risks, and opportunities related to resource use
and circular economy
To identify all impacts, risks and opportunities related
to resource use and circular economy, Suominen’s
business activities and the upstream and downstream
value chains were screened and analyzed. The screening
was conducted qualitatively using information of our
inputs and outputs, including the geographical source of
procured raw materials, and views of our stakeholders.
Impacts, risks and opportunities were identified based on
the screening and Suominen’s expertise. No consultations
with affected communities were carried out.
Identifying and assessing material
impacts, risks, and opportunities related
to business conduct
To identify all impacts, risks and opportunities related to
business conduct, Suominen’s business activities and the
upstream and downstream value chains were screened
and analyzed. Impacts, risks and opportunities were
identified on the basis of our expertise and the views of
our stakeholders. The scope of the analysis included all
our geographical locations and activities, including our
relationships with our key stakeholders, such as suppliers,
customers and shareholders.
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Results of the double materiality assessment
ESRS Sustainability topics Impact materiality level Financial materiality level
Material topics
E1 Climate change Critical Critical
E2 Pollution Critical Important
E3 Water and marine resources Critical Important
E4 Biodiversity and ecosystems Critical Significant
E5 Resource use and circular economy Critical Critical
S1 Own workforce Significant Critical
S2 Workers in the value chain Significant Important
S4 Consumers and end-users Critical Critical
G1 Business conduct Significant Significant
Immaterial topic
S3 Affected communities Informative Minimal
The material topics will be reviewed annually to assess
their topicality and validity. The double materiality
assessment will be conducted according to the
significance of changes in the organization or in the
value chain (such as changes in geographies, operations,
resources, products and/or any other changes affecting
our material impacts, risks or opportunities).
Immaterial sustainability topics
The sustainability topic Affected communities was
assessed to be immaterial for us. Potential negative and
positive impacts and financial risks related to raw material
sourcing and its effects on local communities in our
value chain were identified during the double materiality
assessment. However, since we have sustainable supply
chain practices (described in Business conduct) in place,
these impacts and risks were not assessed to be material,
and the likelihood of the potential negative impacts and
related financial risks was assessed to be very unlikely. We
continue to monitor our impacts on affected communities
by including the topic in future revisions of the double
materiality assessment.
Determining disclosures
The material information to be disclosed was determined
based on the material impacts, risks and opportunities
identified and assessed during the double materiality
assessment. When determining disclosing information
on metrics, the materiality of related impacts, risks and
opportunities was reviewed. Based on their materiality,
the materiality of Disclosure Requirements (DR) and
further Data Points (DP) were assessed. If the DR and
DP were assessed to be material, the information was
disclosed. The disclosure determination process followed
the workflow presented in ESRS 1 Appendix E. Content
index of disclosure requirements as well as Table of all the
datapoints deriving from other EU legislation can be found
at the end of this Sustainability statement.
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Suominen’s EU taxonomy report
The EU sustainable finance taxonomy is a classification
system that provides a common understanding of
economic activities that make a substantial contribution
to the EU’s environmental goals by providing consistent
and objective criteria. In the first phase, criteria have been
set for the sectors that are the most relevant for achieving
climate neutrality and delivering on the climate change
adaptation. This includes sectors such as energy, forestry,
manufacturing, transportation and construction.
In 2024, non-financial companies were required to
disclose the proportion of taxonomy-aligned, taxonomy-
eligible and taxonomy-non-eligible economic activities
of their total net sales, capital expenditure (CapEx) and
operational expenditure (OpEx) for all six environmental
objectives. In 2024, 100% of Suominen’s net sales were
non-eligible, of CapEx 5.3% was taxonomy-eligible
and none taxonomy-aligned and of OpEx 12.3% was
taxonomy-eligible and none taxonomy-aligned. The 100%
of CapEx and majority of the Suominen’s reported eligible
OpEx (>98%) in 2024 were related to Climate Change
Mitigation objective. A small fraction (<2% in total) of the
eligible OpEx were related to Protection and Restoration
of Biodiversity and Ecosystems, Pollution Prevention and
Control as well as Sustainable Use and Protection of Water
and Marine Resources.
In 2024, the technical screening criteria were
not completely fulfilled for any of the identified
eligible activities and therefore none of the activities
were reported to be aligned. One major cause for
non-alignment is the climate risk assessment, which has
not been carried out systematically for all operations.
Climate resilience analysis, is planned to be carried out
during 2025 for Suominen sites, will include climate risk
assessment for each site.
Suominen’s sole business is the manufacturing and sale
of nonwovens for which no technical screening criteria
have been defined in the EU taxonomy so far. Hence no
proportion of Suominen’s net sales is taxonomy-eligible.
Similarly, as Suominen’s capital expenditure and operations
are mostly related to nonwovens production activities, the
majority of Suominen’s CapEx and OpEx is not taxonomy-
eligible.
At Suominen we believe that our ambitious targets to
reduce our greenhouse gas emissions and continuous
work to improve emissions calculations to cover the
whole value chain, our comprehensive sustainable
product offering and our continuous work to explore new
innovative fibers to be able to offer even more sustainable
and low-carbon nonwoven products represents our
contribution to climate change mitigation and adaptation.
We are continuously striving in product development to
improve our operations in a way that also supports the
achievement of our environmental goals.
Suominen’s taxonomy-eligible activities are mainly
capital expenditure or maintenance expenditure related
to energy efficiency of the buildings (activities 7.2, 7.3,
7,5, 7.6 and 9.3), maintenance and leasing of electric cars
and forklifts (activities 3.3, 3.6 and 6.5), as well as close to
market research and development (9.1) activities.
In addition, the following activities related to production
were evaluated to be EU taxonomy-eligible even though
the manufacture of non-wovens is not:
- Investments and maintenance expenses related to
wastewater collection and treatment (activities 5.3. and
5.4.) as well as freshwater collection and supply (activities
5.1. and 5.2.). The investments and maintenance expenses
of water supply and wastewater treatment were evaluated
to fall in the description of listed activities and support the
sustainability goals and therefore to be taxonomy-eligible.
In addition, some maintenance costs related to leakage
control equipment have been reported under activity
1.1. Manufacture, installation and associated services for
leakage control technologies enabling leakage reduction
and prevention in water supply systems.
- Share of non-hazardous waste expenditures prior
to transportation, recycling or reuse (activities 5.5 and
5.9). The OpEx allocated to these activities includes
only the waste treatment or transportation cost which
support recyclability of the materials and the goals set
in the EU Taxonomy regulation. In addition, treatment
and transportation costs related to hazardous waste,
which fulfils the description in activities 2.1. Collection
and transport of hazardous waste and 2.2. Treatment of
hazardous waste are reported as taxonomy-eligible costs.
Suominen has reviewed its total CapEx and OpEx and
allocated them to taxonomy-eligible and taxonomy-non-
eligible activities. The allocation of CapEx and OpEx to
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taxonomy-eligible and taxonomy-non-eligible activities is
made based on the taxonomy-eligible activities described
in the Climate Delegated Act 2021/2139 and its Annexes
as well as the amendments given in the regulation (EU)
2023/2485. The assessment of whether a taxonomy-
eligible activity is also a taxonomy-aligned activity is based
on the technical screening criteria as stated in the Annexes
of the Climate Delegated Act 2021/2139 as well as on the
compliance criteria set out in Regulation (EU) 2020/852
Article 3. Each taxonomy-eligible economic activity has
been evaluated for alignment using the relevant criteria,
and in the case of non-compliance, the activity has not
been categorized as taxonomy-aligned.
Each Suominen site is responsible for completing the
valuation of eligibility and alignment of its own activities.
Suominen has a web-based tool to support in the
valuation process. Group functions are responsible for
providing common working guidelines and definitions.
Valuations of activities and figures in the taxonomy report
are validated at Group level.
Regarding minimum social safeguards, Suominen
respects and supports the OECD Guidelines for
Multinational Enterprises, United Nations (UN) Guiding
principles on Business and Human Rights and the
International Labor Organization (ILO) Declaration on the
Fundamental Principles and Rights at Work. Suominen has
assessed compliance with the safeguards also through
ensuring the existence of processes covering human
rights, corruption, taxation, and fair competition and
addressing cases of violations if any arise.
Total CapEx has been calculated as defined in Annex I of
Commission Delegated Regulation (EU) 2021/2178 (KPIs
of Non-financial Undertakings), and it includes additions
to property, plant and equipment (as defined in IAS 16),
intangible assets (as defined in IAS 38) and in right-of-use
assets (as defined in IFRS 16).
Total CapEx, EUR thousand 2024 2023
Increases in property, plant and
equipment 15,895 11,054
Increases in intangible assets 109 169
Not internally
generated
Increases in right-of use assets 2,580 2,410
Total 18,584 13,633
The numerator used in calculation of the proportion of
taxonomy-aligned CapEx is defined as CapEx related to
assets or processes that are associated with taxonomy-
aligned economic activities or related to the purchase of
output from taxonomy-aligned economic activities as well
as to individual measures enabling the activities to become
low-carbon or to lead to greenhouse gas reductions.
Total OpEx has been calculated as defined in Annex
I of Commission Delegated Regulation (EU) 2021/2178
(KPIs of Non-financial Undertakings), and it includes
direct non-capitalized costs, that relate to research and
development activities, building renovation measures,
short-term lease, maintenance and repair, and any other
direct expenditures relating to the day-to-day servicing
of assets of property, plant and equipment by Suominen
or third party to whom activities are outsourced that
are necessary to ensure the continued and effective
functioning of our assets.
The numerator used in calculation of the proportion
of taxonomy-aligned OpEx is defined as expenditure,
including direct research and development expenses,
related to assets or processes associated with taxonomy-
aligned economic activities. In addition, expenditure
related to the purchase of output from taxonomy-aligned
economic activities and to individual measures, which
enable the activities to become low-carbon or to lead
to greenhouse gas reductions, is included in taxonomy-
eligible and taxonomy-aligned OpEx.
The operational expenditure was EUR 30,280 thousand
in 2024 (27,595).
To ensure that CapEx and OpEx are included only in
one economic activity (to avoid double counting), the
total of allocated expenditure is reconciled with the total
unallocated expenditure.
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Turnover
Financial year 2024 Year Substantial Contribution Criteria DNSH Criteria (do no significant harm)
Economic activities Code(s) Turnover
Proportion
of turnover
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Minimum
safeguards
Proportion of
Taxonomy aligned
(A.1.) or -eligible
(A.2.) turnover,
2023
Category
enabling
activity
Category
transitional
activity
EUR
thousand % Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities 0%
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
Turnover Environmentally sustainable activities
(Taxonomy-aligned) (A.1) 0 0% 0% 0% 0% 0% 0% 0%
Of which enabling 0 0% 0% 0% 0% 0% 0% 0% E
Of which transitional 0 0% 0% T
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Turnover of Taxonomy eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%
A. Turnover of Taxonomy-eligible activities (A.1+A.2) 0 0% 0% 0% 0% 0% 0% 0%
B. Taxonomy-Non-Eligible Activities
Turnover of Taxonomy non-eligible activities 462,318 100%
Total 462,318 100%
Proportion of turnover / Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 0%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
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Capital expenditure
Financial year 2024 Year Substantial Contribution Criteria DNSH Criteria (do no significant harm)
Economic activities Code(s) CapEx
Proportion
of CapEx,
2024
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Minimum
safeguards
Proportion of
Taxonomy aligned
(A.1) or
eligible (A.2)
CapEx, 2023
Category
enabling
activity
Category
transitional
activity
EUR
thousand % Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
CapEx Environmentally sustainable activities
(Taxonomy-aligned) (A.1) 0 0% 0% 0% 0% 0% 0% 0%
Of which enabling 0 0% 0% 0% 0% 0% 0% 0% E
Of which transitional 0 0% T
A.2 Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Renovation of existing buildings CCM 7.2. 320 2% EL N/EL N/EL N/EL N/EL N/EL 8%
Close to market research, development and
innovation CCM 9.1. 36 0% EL N/EL N/EL N/EL N/EL N/EL 1%
Installation, maintenance and repair of energy
efficiency equipment CCM 7.3. 377 2% EL N/EL N/EL N/EL N/EL N/EL 1%
Transport by motorbikes, passenger cars and
commercial vehicles CCM 6.5. 120 1% EL N/EL N/EL N/EL N/EL N/EL 1%
Manufacture of other low carbon technologies CCM 3.6. 61 0% EL N/EL N/EL N/EL N/EL N/EL 1%
Renewal of water collection, treatment and supply
systems CCM 5.2. 24 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Construction, extension and operation of water
collection, treatment and supply systems CCM 5.1. 41 0% EL N/EL N/EL N/EL N/EL N/EL 0%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 979 5% 5% 0% 0% 0% 0% 0% 12%
A. CapEx of Taxonomy eligible activities (A.1 + A.2) 979 5% 5% 0% 0% 0% 0% 0%
B. Taxonomy-Non-Eligible Activities
CapEx of Taxonomy-non eligible activities 17,605 95%
Total 18,584 100%
Proportion of CapEx / Total CapEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 5%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
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Operational expenditure
Financial year 2024 Year Substantial Contribution Criteria DNSH Criteria (do no significant harm)
Economic activities Code(s) OpEx
Proportion
of OpEx
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaptation Water Pollution
Circular
economy Biodiversity
Minimum
safeguards
Proportion of
Taxonomy aligned
(A.1.) or
-eligible (A.2.)
OpEx, 2023
Category
(enabling
activity)
Category
(transitional
activity)
EUR
thousand % Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y;N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities
A.1 Environmentally sustainable activities
(Taxonomy-aligned)
OpEx Environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0%
Of which enabling
0 0% 0% 0% 0% 0% 0% 0% E
Of which transitional
0 0% 0% T
A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Renovation of existing buildings
CCM 7.2. 401 1% EL N/EL N/EL N/EL N/EL N/EL 1%
Manufacture of low carbon technologies for
transport
CCM 3.3. 417 1% EL N/EL N/EL N/EL N/EL N/EL 0%
Close to market research, development and
innovation
CCM 9.1. 1,877 6% EL N/EL N/EL N/EL N/EL N/EL 12%
Installation, maintenance and repair of renewable
energy technologies
CCM 7.6. 3 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Installation, maintenance and repair of energy
efficiency equipment
CCM 7.3. 59 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Collection and transport of non-hazardous waste
in source segregated fractions
CCM 5.5. 85 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Hotels, holidays, camping grounds and similar
accommodation
BIO 2.1. 22 0% N/EL N/EL N/EL N/EL N/EL EL 0%
Collection and transport of hazardous waste
PPC 2.1. 3 0% N/EL N/EL N/EL EL N/EL N/EL 0%
Renewal of wastewater collection and treatment
CCM 5.4. 498 2% EL N/EL N/EL N/EL N/EL N/EL 0%
Professional services related to energy
performance of buildings
CCM 9.3. 7 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Installation, maintenance and repair of instruments
and devices for measuring, regulation and
controlling energy performance of buildings
CCM 7.5. 30 0% EL N/EL N/EL N/EL N/EL N/EL 0%
Manufacture, installation and associated services
for leakage control technologies enabling leakage
reduction and prevention in water supply systems
WTR 1.1. 23 0% N/EL N/EL EL N/EL N/EL N/EL 0%
Material recovery from non-hazardous waste
CCM 5.9. 262 1% EL N/EL N/EL N/EL N/EL N/EL 0%
Renewal of water collection, treatment and supply
systems
CCM 5.2. 36 0% EL N/EL N/EL N/EL N/EL N/EL 1%
Treatment of hazardous waste
PPC 2.4. 1 0% N/EL N/EL N/EL EL N/EL N/EL 0%
OpEx Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (A.2)
3,722 12% 12% 0% 0% 0% 0% 0% 14%
A. OpEx of Taxonomy eligible activities (A.1+A.2)
3,722 12% 12% 0% 0% 0% 0% 0%
B. Taxonomy-Non-Eligible Activities
OpEx of Taxonomy-non eligible activities
26,558 88%
Total
30,280 100%
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 12%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
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Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity
or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety
upgrades, using best available technologies.
NO
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
NO
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity
using fossil gaseous fuels.
NO
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
NO
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
NO
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Climate change
Our material impacts, risks and opportunities related to climate change
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Climate change - Scope 1, 2 & 3
greenhouse gas
emissions
- High energy and
fuel consumption in
operations
- Majority of purchased
electricity from non-
renewable sources
- Sustainable products in
portfolio
- Raising awareness in our
value chain
- Solar panels at Alicante
site generating
renewable energy
- Increasing regulatory
requirements
- Increasing expectations
in value chain
- Investments in
production lines and
supply chains
- Supply chain disruptions
due to extreme weather
events
- Sites impacted by
extreme weather events
- Increasing energy prices
- Increasing demand
in products with low
carbon footprint
- Increasing funding and
support for sustainable
products
- Access to inexpensive
fossil-free energy
- Increasing energy
efficiency
- Nearshoring and
reshoring as an
adaptation measure
Interaction with strategy and
business model
The cornerstones of our strategy are sustainability and
innovations, and we continuously develop our offerings
and operations accordingly. Sustainability is important also
to our customers and other stakeholders, as the markets
are rapidly shifting towards more sustainable alternatives.
Suominen is committed to reducing the greenhouse
gases emitted due to our operations by improving
energy efficiency and finding alternative low-carbon
energy sources. We are promoting the development of
sustainable products by calculating the carbon footprint
of our products and developing solutions with a smaller
climate impact.
Material climate-related negative impacts from
Suominen’s own activities include Scope 1 and 2
emissions, energy and fuel consumption and the current
energy mix. Comparably, material positive impacts include
sustainable products in Suominen’s portfolio and solar
panels at Alicante site in Spain. Material impacts Suominen
is involved with through business relationships include the
negative impact of Scope 3 emissions from our upstream
and downstream value chain and the positive impact of
raising climate awareness.
Greenhouse gas emissions contribute to global
warming, which negatively affect people and the
environment in a variety of ways. Our energy use
contribute to our greenhouse gas emissions. Our positive
impacts, such as sustainable products and solar panels
mitigate these negative impacts and climate change. We
can also influence stakeholders and contribute to climate
change mitigation by raising awareness in our value chain.
All our material impacts can materialize within a short
time horizon.
Material climate-related risks from Suominen’s own
activities include sustainability related investment needs
and our sites affected by extreme weather events. Risks
Suominen is involved with through business relationships
in the upstream value chain include increasing regulatory
requirements, increasing energy prices and supply chain
disruptions due to extreme weather events. Risks in the
downstream value chain include increasing expectations
of sustainability, particularly through our customers
and investors.
Our efforts towards a more sustainable portfolio and
climate change mitigation can offer financial opportunities
for Suominen. Opportunities arise in our upstream value
chain, through increasing funding and access to clean
energy, or in our downstream value chain, through
increasing demand in low carbon footprint products from
our customers. We can create opportunities also through
our own activities by increasing the energy efficiency of
our operations.
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One of the four themes of our Sustainability Agenda
for 2020–2025 as well as for 2025–2030, low impact
manufacturing, considers the impact we have on climate.
We continuously strive to decrease environmental impacts
of our operations, and in 2025, we will set a target related
to our greenhouse gas emissions in line with limiting
global warming to 1.5°C.
Climate-related risks and resilience
Climate-related risks identified in the double materiality
assessment include both transition and physical risks.
Transition risks include increasing regulatory requirements,
increasing customer expectations, new investment needs
and increasing energy prices. Physical climate risks include
supply chain disruptions and site damages due to extreme
weather events.
The resilience of our strategy and business model
in relation to climate change will be assessed with a
resilience analysis in 2025. The resilience analysis will
include a more detailed climate risk assessment including
a scenario analysis.
Transition plan for climate
change mitigation
Suominen plans to develop a transition plan for climate
change mitigation in accordance with the E1 in 2025.
Policies related to climate change
Health, Safety, Environment and Quality
(HSEQ) Policy
Climate change is included under Suominen Group HSEQ
Policy. The purpose of the Policy is to further define
Suominen’s commitment to Health & Safety, Environment
and Quality (HSEQ) and to establish harmonized HSEQ
principles for all Suominen sites. The Policy is applicable
to all Suominen Group companies, sites and employees.
We also commit to respect the International Chamber of
Commerce’s (ICC) principles of sustainable development
in our HSEQ Policy.
All our sites’ environmental management systems
are certified according to the ISO 14001 standard.
Our production sites in Alicante (Spain), Cressa (Italy),
Green Bay (USA), and Nakkila (Finland) have energy
management systems certified according to the ISO
50001 standard. In addition to the listed standards, local
environmental policies are in place at all our production
sites. The Director of HSEQ & Continuous Improvement
of Suominen is accountable for the implementation of the
HSEQ Policy.
Suominen is committed to continuously improving
our production efficiency and the efficient utilization of
natural resources and we strive to reduce the climate
impacts caused by our operations. The HSEQ Policy
addresses climate change mitigation, energy efficiency
and renewable energy deployment.
Suominen has no specific climate change adaptation
policy in place. However, climate change adaptation is
supported through our HSEQ Policy (health & safety)
and risk management processes. Suominen manages
climate related risks with appropriate precautions, business
continuity plans and insurances. As an example, risks
relating to continuity of raw material supply are managed
by working with multiple international suppliers, and risks
relating to the company’s own manufacturing facilities are
reduced for example by Suominen’s geographical diversity.
Actions and resources related to
climate change
Use of renewable energy
As a part of our actions on reducing greenhouse gas
emissions, all our European sites have shifted entirely
to fossil-free electricity since 2021. Our Paulínia site in
Brazil shifted to fossil-free electricity in 2023 and our
Bethune site in the United States partially in 2024. This
shift has been a remarkable step towards our greenhouse
gas reduction target. Suominen is examining similar
opportunities for its other sites in North America. We
also have solar panels in Alicante, Spain, producing
renewable electricity for the site. These panels account
for approximately 5% of the total energy usage at the site.
Suominen is evaluating opportunities for more solar panel
investments.
With the use of renewable electricity, we have been
able to reduce our Scope 2 greenhouse gas emissions at
Bethune site by 41% in 2024 compared to 2023. Suominen
has also signed a long-term contract on an electric boiler
for steam generation at our Nakkila site in Finland in
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2024, which will be implemented in fall 2025. The electric
boiler is expected to reduce the use of wood chips at
Nakkila site. The impact of the electric boiler on Nakkila
sites biogenic Scope 2 greenhouse gas emissions will be
evaluated more in detail as the project proceeds. These
investments do not qualify as financially significant.
Energy efficiency
No significant energy efficiency related actions to prevent,
mitigate or remediate impacts or to address risks have
been taken in 2024. Suominen continues to monitor our
energy consumption and assess the need for any energy-
related actions.
Suominen has identified one potential medium-term
investment that would significantly improve the energy
efficiency of production in our value chain. No specific
capital expenditures or other financial resources have yet
been allocated related to the investment.
Targets related to climate change
In line with our strategy and HSEQ policy, our
Sustainability Agenda for 2020–2025 has set targets and
key performance indicators related to climate change.
The targets relate to our material negative impacts of
greenhouse gas emissions and energy consumption and
the scope covers all our production sites and operations.
The targets are set by us voluntarily and are not required
by legislation. The Sustainability Agendas were formulated
based on materiality assessments, which included input
from our stakeholders. Our 2025–2030 Sustainability
Agenda targets to reduce our greenhouse gas emissions
will be set in 2025.
Sustainability Agenda 2020–2025
Our climate change mitigation target is 20% reduction
in greenhouse gas emissions, which consists of Scope
1 and 2, per ton of product by 2025, the baseline being
2019. The target progression is presented indexed,
where the base year (2019) is set at 1. The share of
Scope 1 and Scope 2 emissions of our total emissions is
disclosed under Greenhouse gas emissions. In 2024, we
achieved our target as the progress was 24% reduction of
greenhouse gas emissions per ton of product compared
to the base year 2019. Our actions towards the target are
disclosed under Actions and resources related to climate
change per decarbonization lever.
Our energy target is 20% reduction in energy
consumption per ton of product by 2025, the baseline
being 2019. The target progression is presented indexed,
where the base year (2019) is set at 1. In 2024, Suominen
did not make progress in its energy reduction target.
Our actions towards the target are disclosed under
Actions and resources related to climate change per
decarbonization lever.
The Sustainability Agenda 2020–2025 targets have been
set based on the environmental data gathered from our
sites and are not based on any scientific publications.
Sustainability Agenda 2025–2030
Our climate change mitigation target will be to reduce
our GHG emissions in line with the Paris Agreement,
targeting to limit global warming to 1.5°C above
pre-industrial levels. Decreasing GHG emissions is crucial
for minimizing the risks and impacts of climate change,
such as extreme weather events, rising sea levels, and the
loss of biodiversity. By committing to 1.5°C science-based
GHG reduction targets, Suominen strengthens its position
to lead in sustainable nonwovens and to meet customer
expectations. Suominen will be setting its GHG reduction
targets in 2025.
Suominen’s Sustainability Agenda 2025–2030 does not
include measurable time-bound outcome-oriented targets
for energy or climate adaptation. One of the objectives
of target setting for Suominen’s Sustainability Agenda
2025–2030 was to focus our targets on the environmental
matters seen as most material. A target was set for reducing
landfill waste and in 2025 GHG emission reduction targets
will be set. No targets were set for energy consumption
and climate change adaptation because those were not
seen as significant matters as reducing GHG emissions or
landfill waste. Thus, no measurable time-bound outcome-
Progress of climate-related targets 2019 2020 2021 2022 2023 2024
Greenhouse gas emissions per ton of product (indexed) 1 0.92 0.90 0.79 0.82 0.76
Energy consumption per ton of product (indexed) 1 0.93 0.94 0.99 1.01 1.01
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oriented targets were seen necessary for these topics
specifically. Nevertheless, alternative fossil-free energy
sources and improving energy efficiency are an important
part of reducing our GHG emissions and achieving our GHG
target. We also continuously track the effectiveness of our
HSEQ policy by monitoring our energy consumption and by
assessing climate change-related risks in our Enterprise Risk
Management processes.
Energy consumption and mix
Our energy consumption consists of the usage of gas
for heat and steam generation, and the use of purchased
electricity and steam. We also produce electricity
using solar panels at one site. Suominen is evaluating
opportunities for more solar panel investments.
Consolidated energy data covers all our production
units. Headquarters in Espoo, Finland and Mozzate office
in Italy are excluded from this data since their energy use is
insignificant compared to the energy use at our production
sites. Consolidated energy data is collected monthly from
Suominen’s production units, based on energy meters and
invoices. For the Windsor Locks site in the United States,
only consumption data of Suominen’s production lines is
taken into account in the energy consumption figures.
Energy consumption and mix 2024
1. Fuel consumption from coal and coal products (MWh) 0
2. Fuel consumption from crude oil and petroleum products (MWh) 545
3. Fuel consumption from natural gas (MWh) 252,327
4. Fuel consumption from other fossil sources (MWh) 1,037
5. Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 111,486
6. Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 365,395
Share of fossil sources in total energy consumption (%) 70
7. Consumption from nuclear sources (MWh) 44,406
Share of consumption from nuclear sources in total energy consumption (%) 8
8. Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin,
biogas, renewable hydrogen, etc.) (MWh) 0
9. Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 111,348
10. The consumption of self-generated non-fuel renewable energy (MWh) 1,579
11. Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 112,927
Share of renewable sources in total energy consumption (%) 22
12. Total unallocated energy consumption (MWh) 2,007
Share of unallocated sources in total energy consumption (%) 0.4
Total energy consumption (MWh) (calculated as the sum of lines 6, 7, 11 and 12) 524,735
Energy production 2024
Non-renewable energy production (MWh) 0
Renewable energy production (MWh) 1,579
Energy intensity based on net sales
Suominen operates in the following high climate impact
sector: Manufacture of nonwovens and articles made from
nonwovens, except apparel (NACE Code 13.95). Sectors
with a high climate impact are listed in NACE sections A–H
and L (as defined in Commission Delegated Regulation
(EU) 2022/1288). All of Suominen’s revenue is connected
to this high climate impact sector. The energy intensity has
been calculated by dividing the total energy consumption
from activities in the high climate impact sector by our
total net sales (in the consolidated statement of profit or
loss of the consolidated financial statements).
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Energy intensity based on net sales 2024
Total energy consumption from activities in high climate
impact sectors per net sales from activities in high climate
impact sectors (MWh/EUR) 0.00114
Greenhouse gas emissions
Suominen reports its direct greenhouse gas emissions
(Scope 1), its indirect greenhouse gas emissions from
purchased energy production (Scope 2) and other indirect
greenhouse gas emissions (Scope 3) according to the
Greenhouse gas protocol. Direct Scope 1 greenhouse
gases originate from the consumption of fossil fuels used
mainly for the generation of process heat. Indirect Scope
2 emissions related to energy production are caused by
the production of purchased electricity and steam. Other
indirect Scope 3 emissions are caused by those activities
we are indirectly responsible for in the whole value chain.
In 2024, Suominen´s total GHG emissions (market-based)
increased by 10% compared to previous year. Total GHG
emissions from Scope 1 and 2 (market-based) stayed
almost on the same level (decrease of 1%) in 2024. The
GHG emissions from Scope 3 have increased by 12%
compared to 2023. The increase in Scope 3 emissions
was mainly driven by increased production volumes and
updated emission factors.
Greenhouse gas emissions, milestones and targets
Retrospective Milestones and target years
Base year 2023 2024
Change
% 2024 /
2023 2025 2030 (2050)
Annual %
target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO₂eq) N/A 44,495 48,926 10% N/A N/A N/A N/A
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%) N/A 0 0 0% N/A N/A N/A N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions
(tCO₂eq) N/A 65,124 67,195 3% N/A N/A N/A N/A
Gross market-based Scope 2 GHG emissions
(tCO₂eq) N/A 51,421 45,874 -11% N/A N/A N/A N/A
Significant scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions
(tCO₂eq) N/A 530,123 592,316 12% N/A N/A N/A N/A
1. Purchased goods and services N/A 399,133 455,117 14% N/A N/A N/A N/A
2. Capital goods N/A 2,817 4,025 43% N/A N/A N/A N/A
3. Fuel and energy-related activities (not included in
Scope1 or Scope 2) N/A 18,908 19,899 5% N/A N/A N/A N/A
4. Upstream transportation and distribution N/A 36,351 38,250 5% N/A N/A N/A N/A
5. Waste generated in operations N/A 3,881 4,010 3% N/A N/A N/A N/A
6. Business traveling N/A 1,112 1,133 2% N/A N/A N/A N/A
7. Employee commuting N/A 1,271 1,451 14% N/A N/A N/A N/A
9. Downstream transportation N/A 8,762 8,837 1% N/A N/A N/A N/A
10. Processing of sold products N/A 23,049 25,620 11% N/A N/A N/A N/A
12. End-of-life treatment of sold products N/A 33,446 32,493 -3% N/A N/A N/A N/A
13. Downstream leased assets N/A 1,394 1,480 6% N/A N/A N/A N/A
Total GHG emissions
Total GHG emissions (location-based) (tCO₂eq) N/A 639,742 708,437 11% N/A N/A N/A N/A
Total GHG emissions (market-based) (tCO₂eq) N/A 626,039 687,116 10% N/A N/A N/A N/A
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Greenhouse gas emission calculation
methodology and assumptions
Suominen calculates its Scope 1, 2 and 3 greenhouse gas
emissions according to the Greenhouse gas protocol
“A Corporate Accounting and Reporting Standard”
and “Corporate Value Chain (Scope 3) Accounting
and Reporting Standard”. Suominen reports with an
Operational control approach. Scope 3 data is based
on consumption and spend information as well as
estimations.
Suominen’s direct (Scope 1) greenhouse gas emissions
are from the sources controlled by Suominen. No Scope 1
biogenic emissions are generated from our operations as
only fossils fuels are used.
Suominen’s indirect (Scope 2) greenhouse gas emissions
cover emissions from purchased electricity and steam.
Biogenic emissions (Scope 2) are generated at one site,
in Nakkila, where the purchased steam is produced by
burning woodchips. The impact of the electric boiler on
the biogenic Scope 2 GHG emissions will be evaluated
more in detail as the project proceeds. Market-based
emissions are used for target setting and following our
progress. Greenhouse Gas Protocol’s calculation hierarchy
and related emission factors are used for the calculation
of market- and location-based methods. Market-based
emission factors are mainly derived from the local
suppliers or when appropriate residual mixes (RE-DISS
project) are used. Our sites using fossil-free electricity
have certificates from local suppliers about the origin
of the energy. Emission factors used for location-based
emissions are derived from the US national statistics
(such as eGRID database) and for all other production
sites country-based databases were used. The figures for
2023 Scope 2 emissions from Windsor Locks have been
restated.
Suominen calculated its Scope 3 emissions for the
second time in 2024. Calculations were based on the
Greenhouse Gas Protocol. In 2024, Scope 3 greenhouse
gas emission calculation was revised, and some emission
factors were updated. The figures presented for 2023
Scope 3 emissions have been restated. The Scope 3
calculation includes 15 different emissions categories in
total, and all of these were evaluated whether they were
relevant to Suominen. 11 categories were deemed material
and included into calculations. Excluded categories
were from the upstream side: leased assets and from
the downstream side: use of sold goods, franchising,
and investments. The relevance of emission sources was
determined together with an external consultant. 40% of
Scope 3 greenhouse gas emissions were calculated using
primary data obtained from suppliers or other value chain
partners. Due to the limited availability of data, Suominen
does not calculate scope 3 biogenic emissions.
The greenhouse gas emission category 1 is called
Purchased goods and services. Purchased goods are
calculated based on material amounts (mass) from an
internal spend report, which is based on invoices. Raw
material emissions are calculated by using supplier-
specific emission factors or with emission factors from the
Ecoinvent database, which represent the average country-
specific or global production-related emissions for the raw
material. The emissions arising from other production-
related materials are calculated with Defra or Ecoinvent
emission factors. Purchased services are based on spend
data, and emission factors are applied from Exiobase
database.
Emission calculation for capital goods (category 2) is
based on spend data on investments. Emissions factors are
from Exiobase.
For purchased energy, under fuel- and energy-related
activities (category 3), the emissions are calculated based
on the energy amounts reported in Scope 1 and 2 as
well as fuel usage for company vehicles. Defra emissions
factors are mainly used. For electricity, transmission losses
and residual mixes are included.
Data for upstream and downstream transportation
and distribution (categories 4 and 9) is from an internal
reporting system (SAP), and the calculation methodology
is based on tonkilometers. Upstream and downstream
categorization is done based on Incoterms of each
shipment. Calculations are based on Defra factors.
Global waste calculations use mainly Defra factors, and
waste generated in Finland is based on factors provided by
local institutes and studies.
For business travel (category 6), the data is based on
reports from several travel agency service providers.
Calculations are based on Defra conversion factors.
WTT emissions are included, and air travels include
RF emissions.
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Employee commuting (category 7) is based on
personnel data from Suominen’s internal HR system. The
calculations take into account that white collars work
partly remotely and during each workday while blue
collars work fully at the sites. Commuting calculations
include the full route from employees’ home to working
facility and the return home. Defra factors are used, and
WTT emissions are included.
Processing of sold goods (category 10) is based on
the volume of sold products to customers. Accurate
emissions were calculated for those products sold for
which customer-specific primary data were available.
If customer-specific primary data was not available, an
average value calculated from customer emission factors
was used.
End-of-life treatment of sold goods (category 12)
is based on volumes sold to clients categorized into
estimated end-use applications and disposal method
for use case. Emissions factors used are the same as in
category 5.
Downstream leased assets (category 13) include
Suominen’s rental properties leased to two parties in
Bethune. Calculations are based on consumption data,
energy sources are asset specific, and factors are obtained
from Defra database.
Greenhouse gas intensity based on net sales
The GHG intensity has been calculated by dividing the
total GHG emissions (both location- and market-based) by
the total net sales (in the consolidated statement of profit
or loss in the consolidated financial statements).
GHG intensity based on net sales 2024
Total GHG emissions (location-based) per net sales
(tCO₂eq/EUR) 0.00153
Total GHG emissions (market-based) per net sales
(tCO₂eq/EUR) 0.00149
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Pollution
Our material impacts, risks and opportunities related to pollution
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Pollution - Possible microplastics
from products
- Plastic-free products in
portfolio
- Continuous R&D of
plastic-free products
- Monitoring of discharge
waters
- Ban of plastics and
increasing regulation on
microplastics
- Innovations regarding
microplastics
Interaction with strategy and
business model
Suominen does not produce any significant pollution in
our own operations. As water is an essential resource for
Suominen, we regularly monitor our water discharges at
all sites to minimize our environmental impacts related
to water pollution. Plastic pollution in water has become
a major environmental concern, causing governments
to introduce regulations on plastic usage and waste.
Disposability is a feature that is essential for the end use
of many of our products, for example hygiene products,
and for this reason Suominen is continuously developing
plastic-free products, resulting in avoidance of potential
microplastic pollution happening in our downstream
value chain.
Material pollution-related positive impacts from
Suominen’s own activities include the plastic-free
products in Suominen’s portfolio, our continuous research
and development of plastic-free products and discharge
water monitoring. Material impacts Suominen is involved
with through business relationships include the possible
microplastic pollution caused by improper disposal of
our products by the end-users. Possible microplastic
pollution from our products can negatively affect people
and the environment, as microplastics can accumulate to
organisms. Our plastic-free products and the continuous
research and development in this area can reduce the
pollution of microplastics from nonwovens globally.
All our material impacts can materialize within a short
time horizon.
Material financial risks Suominen is involved with
through business relationships in the upstream value chain
include ban of plastics and increasing regulation through
regulatory bodies.
Opportunities related to innovation regarding
microplastics arise from our own development activities,
as well as from the operational environment in which
we operate.
One of the four themes of our Sustainability Agenda
for 2020–2025 as well as for 2025–2030 is low impact
manufacturing as we continuously strive to decrease
negative environmental impacts of our operations and
supply chain. We have not set pollution-specific targets,
since pollution has not been identified as a focus point
for our actions. Our other targets related to low impact
manufacturing also contribute to minimization of
pollution.
Policies related to pollution
Pollution is included under Suominen Group HSEQ Policy.
The purpose and general information of the HSEQ Policy
is disclosed under Climate change.
Suominen strives to ensure that proper initiatives are
taken at all organizational levels to prevent pollution,
reduce environmental impact and to adopt a continuous
improvement model to successfully manage the
environmental matters at all locations.
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Actions and resources related to
pollution
Two significant investments are currently underway
contributing to the mitigation of negative impacts
and financial risks related to microplastics. We are
strengthening our sustainable, non-plastic production
at our Bethune site by developing and upgrading one of
our production lines. The total value of the investment
is approximately EUR 10 million and the investment
project will be completed in the first half of 2025. We are
also investing in a new production line at our Alicante
site, which will increase Suominen’s Card-Pulp-Card
(CPC) capacity. The total value of the investment is
approximately EUR 20 million and the investment project
will be completed in the second half of 2025.
Targets related to pollution
Suominen’s Sustainability Agendas 2020–2025 and
2025–2030 do not include pollution-related targets. One
of the objectives of the target resetting carried out during
the development of Suominen’s Sustainability Agenda
2025–2030 was to focus our targets on the environmental
matters seen as most material. Pollution is not seen as
significant as other environmental matters, and thus no
measurable, time-bound outcome-oriented targets were
seen necessary. A target was set for reducing landfill
waste, and in 2025 GHG, emission reduction targets will
be set. Landfill waste is closely linked with pollution and it
is disclosed under Resource use and circular economy.
Nevertheless, water pollution of our outflow water is
monitored on site level to make sure our operations are
aligned with our HSEQ Policy and local environmental
policies and legislation. Processes and indicators related to
water monitoring are described in Pollution of water.
Pollution
Pollution of water
We regularly monitor our water discharges at each site
to minimize our environmental impacts related to water
pollution. The pollutants monitored at our sites vary
depending on the requirements set by environmental
permits, local policies or legislation. All our water
monitoring is carried out by an independent third party
and the monitoring frequency varies between sites.
The pollution data is collected on site-level from water
monitoring reports and consolidated on group level. The
Windsor Locks site is excluded from water pollution data,
since the site is operated jointly with Ahlstrom, there is no
line-specific water monitoring in place and the operational
control of water treatment is with Ahlstrom.
In 2024, no exceedance of the applicable threshold
values of water pollutants listed in Annex II of Regulation
(EC) No 166/2006 of the European Parliament and of the
Council (European Pollutant Release and Transfer Register
“EPRTR Regulation”) were monitored.
Microplastics
Suominen manufactures nonwovens, part of which are
made from oil-based raw materials and therefore contain
plastic. The nonwovens produced by Suominen are
further processed into single-use products, such as wipes.
Eventually, the nonwoven end product will end up as
waste. If the product is disposed improperly, microplastics
may unintentionally be released into the environment.
The potential microplastic pollution and disposal of end
products occur in our downstream value chain in the
hands of product end users, such as consumers. For this
reason, estimating the amount of microplastics released
from our nonwovens robustly is not possible. We aim to
minimize the possible microplastic pollution occurring in
our value chain by developing our plastic-free offering and
engaging in other research and development activities.
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Water
Our material impacts, risks and opportunities related to water
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Water - High water consumption
in operations
- 90% of water returned
to water bodies or
sanitary sewer systems
- Water reuse processes
- Increasing water price
in Spain
- Increasing water scarcity
in Spain
Interaction with strategy and
business model
Water is an essential resource for Suominen, as it is used in
nonwovens production processes to bind fibers together
into nonwoven fabrics. Approximately 90% of the water
taken into our processes is discharged back to water
bodies or sanitary sewer systems, which means that only
10% of our water intake is consumed in our production
processes, mainly through evaporation. The wetlaid
production technology that is used at two Suominen
production sites requires significantly more water than
other production technologies. Wetlaid production
accounts for 82% of Suominen’s total water intake.
Material water-related impacts from Suominen’s
own activities include the negative impact of water
consumption and the positive impacts of 90% water
return rate and water reuse processes. Production of
wood-based fibers is often also water intensive; thus,
water consumption is also significant in our upstream
value chain. High water consumption can affect water
availability negatively especially in areas with water
scarcity. Our 90% return rate and reuse processes can
affect water availability positively and increase the
resilience of the water systems against water shortages.
All our material impacts can materialize within a short
time horizon.
All our material water-related financial risks are related
to Suominen’s own activities, as they concern our Alicante
site, which is located within a high-risk area where water
can be considered a scarce resource. No water-related
material opportunities were identified during the double
materiality assessment.
One of the four themes of our Sustainability Agenda
for 2020–2025 as well as for 2025–2030, low impact
manufacturing, considers the impact we have on
water. We continuously strive to decrease the negative
environmental impacts of our operations.
Policies related to water
Water is included under Suominen Group HSEQ Policy.
The purpose and general information of the HSEQ Policy
is disclosed under Climate change.
Resource efficiency is a key part of the Policy, and in
compliance with it, Suominen is committed to reducing
water usage, using water efficiently and minimizing water
pollution by continuously developing its production
processes and employing the best available methods and
technologies. Suominen is dedicated to full compliance
with local and international laws and regulations related
to the protection of the environment. Our water use
and discharges are regulated by national or regional
authorities, and we constantly monitor the quality of
discharged water. All water is treated in either our own or
municipal water treatment sites before being discharged.
Suominen has evaluated the scarcity of water at our sites
by using the World Resources Institute’s Water Risk Atlas.
One of our production sites is located in a high-risk area
where water can be considered a scarce resource. The
water intake of this site accounts for approximately 1% of
Suominen’s total water intake (2024). The site is covered
by the Suominen Group HSEQ Policy.
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Actions and resources related to water
No significant water-related actions to prevent, mitigate
or remediate impacts or to address risks have been
taken in 2024. Suominen continues to monitor our
water consumption and assess the need for any water-
related actions.
Suominen re-evaluates the scarcity of water at our sites
by using the World Resources Institute’s Water Risk Atlas
regularly, most recently in 2024. No specific actions have
been taken at our site located in a high-risk area in 2024.
Suominen has identified one potential medium-term
investment that would significantly improve the water
efficiency of production in our value chain. No specific
capital expenditures or other financial resources have yet
been allocated related to the investment.
Targets related to water
Sustainability Agenda 2020–2025
In line with our strategy and HSEQ policy, our
Sustainability Agenda 2020–2025 has set targets and key
performance indicators related to our water consumption.
The target relates to our material negative impact of
water consumption, and the scope covers our production
sites including the site located within a high-risk area.
The target is set by us voluntarily and is not required by
legislation. The Sustainability Agenda 2020–2025 was
formulated based on a materiality assessment, which
included input from our stakeholders. The Sustainability
Agenda 2020–2025 target has been set based on the
environmental data gathered from our sites and is not
based on any scientific publications.
Our target is 20% reduction in water consumption per
ton of production by 2025, the baseline being 2019. The
target progression is presented indexed, where the base
year (2019) is set at 1.
In 2024, Suominen’s water consumption increased
by 2% per ton of product, compared to the base year
2019. Thus, Suominen did not make progress in its water
consumption reduction target.
Sustainability Agenda 2025–2030
Suominen’s Sustainability Agenda 2025–2030 does not
include water-related targets. One of the objectives of
the target resetting carried out during the development
of Suominen’s Sustainability Agenda 2025–2030 was
to focus our targets on the environmental matters seen
as most material. Water was not seen as significant
as greenhouse gas emissions or waste, and thus no
measurable time-bound outcome-oriented targets were
seen necessary. Nevertheless, we continuously track
the effectiveness of our HSEQ policy in relation to our
water consumption. Processes and indicators related
to water consumption monitoring are described in
Water consumption.
Water consumption
Consolidated water data covers all our production units.
Headquarters and Mozzate office are excluded from this
data, since the water used is insignificant compared to the
water used at our production sites. We measure our water
inflows (water withdrawals and municipal water supply),
water consumption and water outflows (water discharges)
separately for each site. The measurement methods
vary between sites from inflow and outflow meters to
estimations based on purchases. Water consumption is
calculated on site level based on the difference between
inflow water and outflow water.
We are not able to measure our recycled or reused
water in operations, but we have estimated the amount
separately for each site. The water recycled and reused
has been estimated based on the share of total water
intake which can be reused or recycled in our processes.
We report the share of reused or recycled water and not
the actual amount of water circulated in our processes
repeatedly before we discharge it as wastewater. The
estimations have been carried out based on calculations
of, for example, water balance, reclaimed water and
process water demand. The estimation methodology
varies between sites since their water flow processes are
different. We aim to further analyze our water balance
Progress of water-related targets 2019 2020 2021 2022 2023 2024
Water consumption per ton of product (indexed) 1 0.88 0.80 0.94 0.99 1.02
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in 2025 in order to increase the estimation accuracy of
recycled or reused water.
Water metrics 2024
Water consumption (1,000 m
3
) 1,030
Water consumption in areas of water risk (1,000 m
3
) 66
Water recycled and reused (1,000 m
3
) 3,042
Water intensity (m
3
/M EUR net sales) 2,229
Water withdrawals from surface water (1,000 m
3
) 4,483
Water withdrawals from ground water (1,000 m
3
) 2,348
Water discharges (1,000 m
3
) 6,459
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Resource use and circular economy
Our material impacts, risks and opportunities related
to resource use and circular economy
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Resource use and circular
economy
- Resource use intensive
operations
- Use of fossil-based
materials
- Single-use and non-
reusable products
- Challenging product
circularity
- Landfill waste generated
in operations
- Possible overuse of
materials through
unoptimized
manufacturing
processes in the future
- Use of recycled
materials
- Resource efficient
products in portfolio
- Continuous R&D
supporting material
efficiency
- Collaboration within
value chain
- Possibility to contribute
to circular economy by
increasing recyclability
of products
- Biodegradable and
compostable products
in portfolio
- Possibility to contribute
to circular economy
by selling nonwoven
generated in
manufacturing, which
does not fulfill our own
quality requirements, for
reuse
- Rapid market changes
away from plastic-based
materials
- Changing consumer
preferences
- Increasing raw material
prices
- Increasing
environmental concerns
from stakeholders
towards plastic-based
and single-use products
- Raw materials from
recycled sources or new
innovative sources
- Raw materials from
renewable sources
- Increasing production
efficiency
- Increasing demand in
plastic-free products
- Circular business
models and products
creating new business
opportunities
- Increasing demand
in biodegradable and
compostable products
Interaction with strategy and
business model
Raw materials play a vital role in our business since they
account for around 70% of our expenses. Suominen uses
different fiber materials, such as cellulose-based fibers
including lyocell, viscose and pulp and fossil-based fibers
such as polypropylene, and polyester, in the production of
nonwovens. Suominen is constantly looking for solutions
to decrease the environmental impact of nonwoven
products throughout the value chain. We actively evaluate
new, innovative, and sustainable fibers for our products.
We have a strong focus on efficient utilization of raw
materials, and we continuously work to improve our
material efficiency even further.
Most of our resource use and circular economy
related material impacts are associated with our own
activities. Material impacts related to Suominen’s
business relationships include the negative impact of
waste generated from our single-used products by the
end users, and the positive impacts from collaboration
and the possibility to sell nonwoven generated in
manufacturing, which does not fulfill our own product
quality requirements, to our business partners for reuse,
increasing circularity and decreasing landfill waste.
Our resource use intensity affects the environment
negatively by consuming natural resources and
causing emissions. This is also impacted by our use of
non-renewable materials, circularity challenges and
potentially less efficient production processes. Landfill
waste from our production can cause local pollution and
soil contamination, and the disposal of our single-used
end products made from Suominen’s nonwovens can
cause littering if not disposed correctly or properly.
Our positive impacts, such as the use of renewable
and recycled materials and continuous research and
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development, mitigate these negative impacts. We
are reducing the waste load of nonwovens with our
biodegradable and compostable products and our own
operations by actively reducing landfill waste. Our actual
material impacts can materialize within a short time
horizon, while our potential impact can materialize within
a medium time horizon.
Risks which arise in the context of our business
relationships in the upstream value chain include
increasing raw material prices from our suppliers. Risks
which arise in the context of our business relationships
in the downstream value chain include changing the
market environment, changing consumer preferences
and increasing environmental concerns from stakeholders
towards plastic-based and single-use products. Resource
use and circular economy related material opportunities
Suominen is involved with through our own activities
include our efforts towards more sustainable products
and material efficiency. Increasing demand for sustainable
products from our customers in our downstream value
chain creates opportunities and supports mitigation of
financial risks.
One of the four themes of our Sustainability Agenda
for 2020–2025 as well as for 2025–2030, low impact
manufacturing, considers the impact we have on circular
economy and waste. We continuously strive to decrease
the environmental impacts of our operations, and we have
set targets related to our raw material use, landfill waste
and sustainable product sales and development.
Policies related to resource use and
circular economy
Resource use and waste is included under Suominen
Group HSEQ Policy. The purpose and general information
of the HSEQ Policy is disclosed under Climate change.
Resource efficiency is a key part of the Policy, and
in compliance with it, Suominen is committed to
continuously improve our production efficiency and the
efficient utilization of natural resources. Raw material
suppliers are required to sign and comply with Suominen’s
Supplier Code of Conduct. More information on supplier
engagement is reported under Business conduct. We
support responsible forest management practices, and
offer nonwovens produced from FSC
®
, PEFC, and SFI
®
certified raw materials.
The HSEQ Policy addresses most of our material
impacts, risks and opportunities connected with our
operations and in our upstream and downstream value
chain. The HSEQ Policy does not currently address the
impacts, risks and opportunities related to transitioning
away from the use of virgin resources or including relative
increases in use of secondary (recycled) resources.
Actions and resources related to
resource use and circular economy
In 2024, Suominen invested and took into use one
recycling unit in its Bethune plant. The investment did
not qualify as financially significant. No other significant
resource use and circular economy related actions to
prevent, mitigate or remediate impacts or to address risks
or opportunities have been taken in 2024. Suominen
continues to monitor our resource efficiency and
circularity and develop recycling solutions to achieve
greater raw material efficiency in the future.
Targets related to resource use and
circular economy
In line with our strategy and HSEQ policy, our Sustainability
Agenda for 2020–2025 as well as for 2025–2030 set
targets and key performance indicators related to our
products, raw material use and manufacturing waste.
The targets relate to our material negative impact of
resource use and landfill waste and our material positive
impact and opportunity of sustainable products. The
targets cover all our production sites. The targets are
set by us voluntarily and are not required by legislation.
The Sustainability Agendas were formulated based on
materiality assessments, which included input from our
stakeholders. The targets have been set based on the
environmental data gathered from our sites and are not
based on scientific publications.
Sustainability Agenda 2020–2025
Suominen has three targets related to resource use and
circular economy. Suominen’s product-related targets
are to increase the sales of sustainable products by 50%
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compared to the base year 2019 and to launch over 10
sustainable products per year. Suominen’s sustainable
products have to fulfill at least one of the following
criteria: products are made of renewable, plastic-free or
partially recycled raw materials or being compostable
or dispersible nonwovens. Sustainable product launches
include new sustainable product launches, re-launches
and concepts related to sustainable products. In 2024,
we increased the sales of sustainable products by 87%
compared to 2019, exceeding our target. We launched ten
new sustainable products and one sustainable concept
supporting sustainable products resulting in the total
of 11 sustainable product launches in 2024, exceeding
our target.
Regarding manufacturing waste, our target is a 20%
reduction in waste to landfill per ton of product by 2025,
the baseline being 2019. The target is related to recycling
and recovery levels of the waste hierarchy laid down in
the EU waste framework directive. The target progression
is presented indexed, where the base year (2019) is set at
1. In 2024, Suominen did not make progress in its waste
to landfill reduction target and the amount of landfill
waste was increased. Reducing landfill waste is essential
for Suominen’s raw material efficiency and therefore it
continues to be one of the key targets in our Sustainability
Agenda 2025-2030.
Sustainability Agenda 2025–2030
Developing sustainable products is at the core of our
research and development (R&D) activities. We direct more
than half of our new R&D initiatives to support testing new
raw materials and the development of new sustainable
products (e.g. Green Lab compostability center), services
and processes. Target progression is followed as a relative
target, new R&D initiatives focusing on advancing the
development of sustainable products, compared to the
total number of new R&D initiatives.
Regarding our material use, we aim that more than
two thirds of consumed raw materials will be from plant-
Progress of resource use and circular economy related targets 2019 2020 2021 2022 2023 2024
Sales increase of sustainable products (%) - 22.5 47 99 79 87
Number of sustainable product launches - 9 16 12 12 11
Waste to landfill per ton of product (indexed) 1 1.49 1.27 1.47 1.43 1.41
based resources by 2030. Raw materials play a vital
role in the manufacturing of nonwovens. By prioritizing
sustainable virgin and recycled plant-based raw materials,
Suominen strengthens its offering on sustainable and
high-performing products to reduce dependence on
non-renewable raw materials. Target progression is
followed as a relative target, plant-based raw material
use compared to total raw material use. The percentage
is absolute volume based and the measuring unit for raw
material use is tons.
Regarding manufacturing waste, our target is zero
nonwoven manufacturing waste to landfill by 2030.
Suominen aims to ensure that all nonwoven waste
generated during the manufacturing process is completely
diverted from landfills through methods and levels of the
waste hierarchy laid down in the EU waste framework
directive such as improving production efficiency,
recycling, reusing, or utilizing waste in energy production.
By eliminating nonwoven manufacturing waste to
landfill, Suominen reduces its emissions and overall
environmental impact. Along with process improvements,
this commitment also enhances the efficient use of raw
materials and energy. The target progression is absolute
volume based and the measuring unit for landfill waste
is tons.
The Sustainability Agenda 2025–2030 does not directly
include separate targets related to increase of circular
material use rate or minimization of raw material use, but
the Sustainability Agenda targets indirectly support these
goals as well. Circulating hygiene and medical products
is often challenging, which limits our possibilities to set
measurable, outcome-oriented targets related to these
topics. However, we are constantly researching, piloting
and developing new sustainable material solutions.
Resource inflows
The main resources used in our operations include
different fiber materials, such as cellulose-based fibers,
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polypropylene, and polyester. We have categorized our
resource inflows into plant-based raw materials, fossil-
based raw materials, secondary reused or recycled raw
materials and other raw materials. Plant-based raw
materials include raw materials manufactured using
biological materials, such as wood, and fossil-based raw
materials respectively include materials manufactured
using fossil materials, such as oil. Secondary reused
or recycled raw materials are raw materials purchased
from external sources which are by majority or entirely
manufactured using secondary sources which would
otherwise end up as waste. Other raw materials include
materials such as colorants and pigments.
In 2024, the share of plant-based raw materials was 62%,
with most of them being cellulosic fibers such as viscose
and pulp. Sustainably sourced wood-based materials
include FSC
®
, PEFC, and SFI
®
certified raw materials. In
addition to renewable fibers, we also provide nonwovens
made from other sustainable sources such as PLA or
recycled PET. A great example of a frontrunner product
in terms of sustainability is HYDRASPUN
®
Circula, our first
nonwoven made from recycled paper.
Water is an essential resource for Suominen, as it is used
in our nonwovens production processes to bind fibers
together into nonwoven fabrics. Our water consumption
is disclosed under Water. Packaging materials were not
assessed to be material for Suominen, since their share in
our material use is minimal.
Inflows of key material streams 2024
Plant-based raw materials (tons) 86,935
Fossil-based raw materials (tons) 52,115
Other raw materials (tons) 150
Sustainably sourced plant-based materials (%) 54
Secondary reused or recycled plant-based materials (tons) 0
Secondary reused or recycled fossil-based materials (tons) 1,836
Secondary reused or recycled materials (%) 1
Total raw materials (tons) 141,036
Consolidated resource inflow data covers all our
production units. Headquarters and Mozzate office are
excluded from this data, since the resources used are
insignificant compared to the resources used at our
production sites. Consolidated inflow data is collected
on a monthly basis from Suominen’s production sites,
based on invoices and consumption information, while
some information is based on separately collected
statistics or estimations. For the Windsor Locks site, only
inflow data with regard to Suominen’s production lines is
taken into account in the environmental figures. Inflow
material streams are only calculated into one category,
i.e. secondary reused or recycled materials are only
included in secondary reused or recycled material metrics
regardless of whether they are plant-based or fossil-based.
Suominen also has internal cycles for raw material reuse,
which are not included in the metrics.
Resource outflows
Products
Suominen manufactures nonwovens as roll goods for
wipes and other applications. After Suominen’s production
site, nonwovens will be converted into end-products by
our customers. Suominen’s nonwovens are, for the most
part, used in daily consumer goods such as wet wipes as
well as in hygiene and medical products. Suominen has a
particular portfolio of sustainable products manufactured
by a variety of technologies. Our key products that are
designed according to the circular principles (including
recycling and recirculation in the biological cycle), are
biodegradable, compostable, dispersible or made from
recycled materials.
The BIOLACE
®
and HYDRASPUN
®
product families of
nonwovens are produced solely from renewable raw
materials, such as plant-based fibers. Suominen has
evaluated that the BIOLACE
®
and HYDRASPUN
®
products
will biodegrade and compost like the fibers from which
they are made of since their manufacturing does not
require any binders or chemicals that could potentially
interfere with the process. If additional chemicals are
added to these raw materials, the final product needs to
be re-evaluated according to certification criteria.
Suominen’s products made from 100% renewable
materials are 100% recyclable by recirculation in the
biological cycle. Nonwovens manufactured by Suominen
are not available for consumers as end-products.
Suominen’s products will be converted to the
end-products by our customers, which will affect the
recyclability of the end-products.
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Waste
The waste fractions generated in Suominen’s own
operations originate from the nonwoven production
process (e.g. trim waste) and packaging of nonwoven roll
goods. Suominen’s waste fractions are mainly classified as
non-hazardous waste. Small amounts of hazardous waste
are generated from our production, mainly from the use
of certain colorants and binders. In waste management,
Suominen’s priority is to prevent waste generation in the
first place by improving material efficiency. We actively
work with different partners to increase the reuse and
recycling opportunities for our waste.
We contribute to circular economy by selling nonwoven
generated in manufacturing, which does not fulfill our own
product quality requirements, to our business partners for
reuse. These outflows are reported under other recovery
operations.
Non-hazardous manufacturing waste 2024
Preparation for reuse (tons) 9
Recycling (tons) 3,450
Other recovery operations (tons) 1,713
Energy recovery (tons) 1,391
Incineration (tons) 0
Landfill (tons) 5,337
Total non-hazardous manufacturing waste (tons) 11,900
Hazardous manufacturing waste 2024
Preparation for reuse (tons) 0.181
Recycling (tons) 3.176
Energy recovery (tons) 1,001
Incineration (tons) 0
Landfill (tons) 0.4
Total hazardous manufacturing waste (tons) 4.758
Total manufacturing waste 2024
Total manufacturing waste (tons) 11,904
Total non-recycled manufacturing waste (tons) 8,452
Total non-recycled manufacturing waste (%) 71
Manufacturing waste by composition 2024
Plant-based fiber waste (tons) 7,606
Fossil-based fiber waste (tons) 4,250
Other waste (tons) 48
Consolidated waste data covers all our production sites.
Headquarters and Mozzate office are excluded from
this data, since the amount of waste is insignificant
compared to the waste produced at our production sites.
Consolidated waste data is collected on a monthly basis
from Suominen’s production sites based on invoices and
estimations. For the Windsor Locks site, only waste data
with regard to Suominen’s production lines is taken into
account in the environmental figures. We have categorized
our manufacturing waste composition into plant-based
fiber waste (waste from plant-based fibers, such as
viscose, pulp, etc.), fossil-based fiber waste (waste from
fossil-based fibers, such as polyester, etc.) and other waste
(waste from other sources that does not fit in the previous
two categories), since majority of our manufacturing
waste is fiber waste.
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Own workforce
Our material impacts, risks and opportunities related to own workforce
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Own workforce - Possible work-related
accidents
- Investments in health
and safety
- All employees covered
by occupational health
care
- Promotion of employee
well-being
- Trainings and skill
development
- Possible work-related
accidents
- Poor employee
well-being affecting
productivity
- Poor employer
reputation decreasing
access to workforce
- Employee and
contractor safety
increasing profitability
- Employee well-being
increasing productivity
- Good employer
reputation increasing
access to workforce
- Trainings and skill
development creating
new business
opportunities
Interaction with strategy and
business model
Suominen has over 700 employees representing more
than a dozen nationalities, working either at one of
our seven sites across three continents or at our head
office in Finland. Occupational safety and the overall
well-being of employees is a priority for Suominen. We
invest in increasing employee engagement, continue
to build a high-performance culture and continue to
strengthen our safety culture. We have not identified any
significant risk of incidents of forced labor or child labor in
Suominen’s operations.
Suominen is involved with all of our material impacts
through our own activities. Our impacts can affect the
physical and mental well-being of all our own employees
and non-employees, including blue-collar and white-
collar employees. Suominen does not have a significant
number of non-employees working at our sites. We will
define our non-employees in 2025 and report accordingly
in 2026. Our blue-collar employees are more susceptible
to possible work-related accidents. Our material negative
impact of possible work-related accidents is related to
individual incidents that can occur at our production sites.
Our material positive impacts are a result of our corporate
culture and affect all our employees and non-employees.
All our material impacts can materialize within a short
time horizon.
All our material own workforce-related financial risks
and opportunities are related to Suominen’s own activities,
as they concern our own processes and employee
management. All of our material financial risks and
opportunities are related to our material impacts and
emphasize our dependency on our own employees’ safety
and well-being.
None of our material risks and opportunities arising
from impacts and dependencies on people in our own
workforce relate to specific groups of people.
One of the four themes of our Sustainability Agenda for
2020–2025 as well as for 2025–2030, people and safety,
considers the impact we have on our own workforce. We
continuously invest in increasing employee engagement,
continue to build a high-performance culture and to
strengthen our safety culture. We have set targets related
to health and safety, as well as diversity.
Policies related to own workforce
Suominen has multiple policies related to our own
workforce in place to mitigate any negative impacts and
to promote our positive impacts related to topics such
as occupational safety and employee engagement. We
invest in increasing employee engagement and our safety
culture, which are the key people-related targets in our
Sustainability Agenda. More information on employee
engagement is described under Employee engagement.
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Code of Conduct
Own workforce is included under Suominen Code of
Conduct. The purpose and general information of the
Code of Conduct is disclosed under Business conduct. We
have specific commitments related to our own workforce
in our Code of Conduct, including ”A fair and respectful
workplace” and “Health, safety, and wellbeing”. Our Code
of Conduct is also in place to eliminate discrimination,
including harassment and to promote equal opportunities
and other ways to advance diversity and inclusion. The
Code of Conduct covers the following grounds for
discrimination: age, gender, religion, ethnic or national
origin, sexual orientation, political opinion, disability, or
any other characteristic protected under the applicable
law. Our Code of Conduct training is mandatory for
all employees, and employees must retake the course
every other year. Code of Conduct training is part of
our onboarding process. We also have human rights
commitments in both Code of Conduct and our Human
Rights Policy.
HSEQ Policy
Health and safety is included under Suominen Group
HSEQ Policy. The purpose and general information of the
HSEQ Policy is disclosed under Climate change.
In the HSEQ Policy, Suominen is committed to providing
a safe and healthy working environment for all employees,
contractors, and others working for us. All Suominen
Group companies and employees are expected to respect
and comply with all applicable laws and regulations,
either local or international, and to contribute to a safe
working environment every day. Suominen is committed
to achieving zero accidents at all of its sites. To achieve
this target, Suominen commits to implement programs
to engage employees, contractors, suppliers and visitors
to guarantee safe and healthy working conditions and
behavior models.
It is required that all Suominen employees fully respect
the established Life Saving Rules as well as all good
practices existing at the different locations. Safety culture
is continuously promoted among all employees in order
to ensure proper safety behavior. Suominen also promotes
the continuous improvement model to successfully
manage safety and to encourage participation and
consultation from all employees.
Human Rights Policy
The purpose of the Human Rights Policy is to reaffirm
Suominen’s commitment to respecting human rights.
The Policy complements our Code of Conduct and
related policies. The Human Rights Policy applies globally
to all Suominen Group companies. The Policy focuses
on human rights topics which are most relevant to our
business and operations: Safe and healthy workplace,
Diversity, equity and inclusion (DEI), Freedom of
association and fair employment practices, Forced labor
and child labor and Human rights in our supply chain.
The Policy states that Suominen is committed to taking
appropriate action to remediate situations where our
activities have caused or contributed to an adverse human
rights impact. The Chief People & Communications Officer
of Suominen is accountable for the implementation of the
Human Rights Policy.
Suominen respects and supports the protection of
internationally proclaimed human rights, such as those
described in the Universal Declaration of Human Rights,
the International Covenant on Civil and Political Rights, the
International Covenant on Economic, Social and Cultural
Rights, and the International Labor Organization’s (ILO)
Declaration on the Fundamental Principles and Rights at
Work. Suominen is committed to the OECD Guidelines for
Multinational Enterprises, the UN Global Compact, and the
UN Guiding Principles on Business and Human Rights.
Recruitment Policy
The purpose of the Recruitment Policy is to outline our
preferred hiring practices and principles for attracting and
selecting internal and external job candidates, promote
consistency in our recruiting process across all countries,
and define the approval rights related to recruitments
at Suominen. All in all, the purpose is to ensure that
our recruitment activities are performed in an effective,
efficient, fair, and compliant way which promotes our
employer brand. The Recruitment Policy was updated in
2024 to further emphasize the importance of diversity,
equity and inclusion (DEI). The Recruitment Policy is
followed globally by every Suominen Group company, and
every employee involved in recruitment. The Chief People
& Communications Officer of Suominen is accountable for
the implementation of the Recruitment Policy.
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Employee engagement
We engage with our employees through several channels,
including daily interactions, our global intranet and
local intranets and internal newsletter, global employee
engagement surveys and local pulse surveys, performance
development discussions and trainings. The Chief People
& Communications Officer of Suominen has operational
responsibility for ensuring that employee engagement is
carried out and appropriate actions planned respectively.
Increasing employee engagement was one of our
key people-related targets in our Sustainability Agenda
for 2020-2025. We conducted a global employee
engagement survey for a fifth consecutive year in 2024.
The response rate for the survey remained at a strong
level and was 79%. The survey results identified both
positive areas and opportunities for improvement. In the
2024 survey, we saw improvement in many of the survey
areas. The most significant improvement appeared in
service and quality focus as well as innovation. Feedback
and recognition has been identified as an area for further
development in the previous surveys, and the recent
results confirm us that we have taken effective steps in
the right direction as the results improved slightly. On
the other hand, employees’ confidence in the company’s
future success decreased slightly from 2023. The
survey results are used as a basis for our people-related
development work. Team-specific results are shared with
the team leaders, who will then review and discuss them
within their teams.
Based on the results, on top of Group level action
plan, each site and function leader will create a targeted,
actionable development plan for their respective
organizations and will follow up on the progress. In 2024
we piloted a pulse survey in one of our productions site
related to competence development and this was used
as a baseline to decide further development. Based on
the global results, our employee engagement index is
67%, which is one percentage point higher than in the
previous survey. The index is a combination of questions
concerning our people’s likelihood of recommending
and staying in the company, organizational pride, and
commitment. The result means that 67% of the survey
participants responded favorably to those questions.
Suominen has various channels for our employees for
raising concerns, including a SpeakUp Line hosted by an
independent third party. SpeakUp Line and SpeakUp Policy
are described in more detail in Business conduct.
Actions related to own workforce
Suominen has policies and management systems in
place to prevent health and safety incidents, which can
have a negative impact on our own workforce. The
implementation of these policies and management
systems includes actions, such as implementing programs,
increasing competence and by anticipating accidents
before they happen.
Targets related to own workforce
In line with our strategy and policies, our Sustainability
Agenda for 2020–2025 as well as for 2025–2030 has
set targets and key performance indicators related to
our own workforce. The targets relate to our material
potential negative impact of work-related accidents as
well as our positive impacts of investments in health
and safety and employee well-being and are related to
managing our material risks and pursuing our material
opportunities. The scope of the targets cover all our
employees and production sites globally. The targets are
set by us voluntarily and are not required by legislation.
The Sustainability Agendas were formulated based on
materiality assessments, which included input from our
stakeholders, including our own workforce. The targets
have been set based on the data gathered from our sites
and are not based on any scientific publications.
Sustainability Agenda 2020–2025
Our health and safety target is zero lost time accidents
annually. In 2024, 4 lost time accidents (LTA) occurred at
Suominen sites, and 4 out of our seven sites were able
to reach the zero LTA target in 2024. There has been no
significant change in the lost time accidents from the last
reporting period.
Our engagement target is that our engagement index
will be 73% by 2025. We conducted for the fifth time a
global employee engagement survey in 2024, and based
on the results our employee engagement index was 67%.
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There has been no significant change in the engagement
index from the last reporting period.
Sustainability Agenda 2025–2030
Our health and safety target is zero lost time accidents
(LTA) annually. Ensuring the safety and well-being of
Suominen’s employees is our top priority and main goal.
We are dedicated to preventing accidents and fostering a
robust safety culture. LTA target progression is followed as
an absolute number of lost time accidents.
We are also pursuing diversity, equity and inclusion (DEI)
index of 80% by 2030. Suominen’s way of working is to
promote human rights and equal opportunities for all
employees. We aim to improve our DEI index by improving
open and honest two-way communication and making
sure employees are rewarded equally and fairly. We are
building a culture of diversity, where ideas and opinions
can be shared without the fear of negative consequences.
During the target setting, our own employees were invited
to participate in a survey where the status of diversity,
equity and inclusion (DEI) was investigated.
DEI index progression is followed as a relative target.
DEI index is based on the share of positive responses
to selected DEI related questions in Suominen’s Annual
Engagement survey open for all employees.
Our employees
Suominen has over 700 employees representing more
than a dozen nationalities, working either at one of our
seven sites across three continents or at our headquarters
in Finland. Metrics related to our employees are reported
by headcount and represent the situation at the end
of 2024.
Employee headcount by gender 2024
Male 545
Female 191
Other 0
Not reported 0
Total employees 736
Employee headcount by country 2024
Finland 155
USA 345
Italy 103
Spain 71
Brazil 62
Employee turnover 2024
The total number of employees who have left Suominen 191
Employee turnover rate 26%
Progress of own workforce related targets 2019 2020 2021 2022 2023 2024
Lost time accidents 6 LTA 1 LTA 4 LTA 2 LTA 6 LTA 4 LTA
Employee engagement index - 69% 66% 65% 66% 67%
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Employee headcount by contract type, broken down by gender 2024
Male Female Other Not reported Total
Number of employees (headcount) 545 191 0 0 736
Number of permanent employees (headcount) 517 180 0 0 697
Number of temporary employees (headcount) 28 11 0 0 39
Number of non-guaranteed hours employees (headcount) 6 5 0 0 11
Number of full-time employees (headcount) 532 178 0 0 710
Number of part-time employees (headcount) 7 8 0 0 15
Employee headcount by contract type, broken down by region 2024
Europe Americas
Number of employees (headcount) 329 407
Number of permanent employees (headcount) 300 397
Number of temporary employees (headcount) 29 10
Number of non-guaranteed hours employees (headcount) 11 0
Number of full-time employees (headcount) 312 398
Number of part-time employees (headcount) 6 9
The employee turnover rate has been calculated
by dividing the number of employees who have left
Suominen (regardless of reason) with the total headcount.
Information regarding the total number of personnel is
reported as full-time equivalent (FTE) in our consolidated
financial statements, and more detailed human resources
data is derived from separately collected statistics.
Information can be found in Note 23 of the consolidated
financial statements.
Our non-employees
Suominen does not have a significant number of
non-employees working at our sites. The Windsor
Locks site in Connecticut, USA, is operated jointly with
Ahlstrom Oyj (former Ahlstrom-Munksjö Oyj). Ahlstrom
is responsible for the H&S management systems at the
site and all the blue-collar employees are employed
by Ahlstrom. Thus, the blue-collar employees are not
considered as Suominen’s employees or non-employees
and are excluded from metrics. We will define our
non-employees in 2025 and report accordingly in the
sustainability statement for the financial year 2025.
Diversity
We recognize the business benefits of having a diverse
workforce and are committed to offering a fair workplace
with equal opportunities for everyone. We do not tolerate
any kind of discrimination, including discrimination based
on age, gender, religion, or ethnic origin. When making
employee-related decisions, for example when recruiting,
promoting, rewarding, or developing our personnel, we
pay special attention to equality and inclusion.
Diversity of Executive Team 2024
By age group Male (%) Female (%)
Under 30 0 0
30–50 25 0
Over 50 75 0
Diversity of employees 2024
By age group Male (%) Female (%)
Under 30 8 3
30–50 37 15
Over 50 29 8
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Training and skills development
Career development and identifying and developing the
competencies that are essential in reaching our strategic
objectives have been identified as areas for improvement
in our previous global employee engagement surveys. In
2024, we continued to execute Suominen’s competency
framework to systematically support our employees in their
professional development. The framework also strengthens
our processes for recruitment and succession planning and
enables the mapping of competencies. We offered trainings
to have a good quality development and career aspiration
discussions to all our white-collar employees. In addition,
we enhanced our competence and leadership capabilities
by increasing human resources to build and support both
individual and organizational development.
We continued to support the development of our
personnel with various development and training
programs that the manager and the employee have
identified together in their development discussions.
Trainings during the year included management trainings
and various quality, safety and process trainings for
targeted roles. In 2024 we launched a compulsory
training path for all white-collar managers, which includes
topics such as psychological safety, giving and receiving
feedback and coaching essentials. The completion of
training path will be followed up during 2025. Additionally,
we launched onboarding paths for all white-collar
employees and white-collar managers and a supporting
eLearning for managers to organize a proper onboarding
for new employees.
In 2024, the low percentage of blue-collar female
participation in performance and career development
reviews was due to low female headcount in
production sites.
Performance and career
development reviews
2024
Male (%) Female (%)
Percentage of employees that
participated in regular performance
and career development reviews
(white-collar) 86 90
Percentage of employees that
participated in regular performance
and career development reviews
(blue-collar) 57 22
Health and safety
The health and safety of Suominen’s employees is
our key priority. We focus on accident prevention and
building a strong safety culture. Safety is one of our key
people-related targets, and our aim is to have zero lost
time accidents.
Main type of injuries for employees are strains, cuts and
bruising and majority are related to hands. Work-related
incidents are entered into an internal safety system.
Incidents are reviewed in safety and production meetings,
depending on site, where corrective actions are discussed,
including root causes and corrective actions. Information
about incidents is shared across plants to foster
pre-emptive actions. Hazards posing a risk for injury are
identified as a part of safety walks and safety assessments,
which take into consideration severeness and likelihood.
Our health & safety management systems are audited at
every site on a regular basis.
All of our employees are covered by our health and
safety management system. The safety management
systems are certified according to the ISO 45001 standard
in all of our seven sites (the production area of Windsor
Locks site is certified according to ISO 45001 by Ahlstrom).
Health and safety 2024
Percentage of own workers who are covered by health and
safety management system 100%
Number of fatalities as a result of work-related injuries 0
Rate of fatalities as a result of work-related injuries 0
Number of high-consequence injuries 0
Rate of high-consequence injuries 0
Number of recordable work-related injuries 25
Rate of recordable work-related injuries 19.2
Lost time accidents (LTA) 4
Rate of lost time accidents (LTA) 3.1
Number of days lost to work-related injuries and fatalities 32
This data represents the situation at the end of 2024.
Incident data is collected continuously, using the
group-wide accident reporting system covering all
Suominen employees.
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Compensation
Suominen strives to establish fair and competitive
employee compensation in each local market within
our global operations to effectively attract, retain, and
motivate our talented workforce. The annual total
remuneration ratio of our highest paid individual, President
& CEO, to the annual total compensation of our median
employee (excluding the highest paid individual) was 13.9%
in 2024.
Our median employee was identified using Suominen’s
globally employed personnel (full-time, part-time,
temporary, and seasonal employees) employed on
December 31, 2024. To identify our median employee
compensation, we used Suominen’s entire employee
population on December 31, 2024, and measured
compensation based on base pay, short and long-term
incentive bonus payments, taxable benefits, extras,
overtime and possible one-time bonuses. Payments paid
in foreign currency were converted to EUR based on the
exchange rates on December 31, 2024.
Incidents, complaints and severe human
rights impacts
According to our Code of Conduct, we do not tolerate
any kind of discrimination, including discrimination
due to age, gender, religion, ethnic or national origin,
sexual orientation, political opinion, disability, or any
other characteristic protected under the applicable law.
One incident of discrimination was reported during
the reporting period. No severe human rights incidents
connected to Suominen’s workforce occurred in the
reporting period.
Incidents and complaints 2024
Number of incidents of discrimination 1
Number of complaints filed through channels for own
workers to raise concerns 1
Number of complaints filed to National Contact Points for
OECD Multinational Enterprises 0
Amount of material fines, penalties, and compensation for
damages as result of violations regarding social and human
rights factors 0
Number of severe human rights issues and incidents
connected to own workforce 0
Number of severe human rights issues and incidents
connected to own workforce that are violations of UN
Global Compact Principles and OECD Guidelines for
Multinational Enterprises 0
Amount of material fines, penalties, and compensation for
severe human rights issues and incidents connected to
own workforce 0
Number of severe human rights cases where undertaking
played role securing remedy for those affected 0
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Business conduct
Our material impacts, risks and opportunities related to business conduct
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Business conduct - Promoting sustainability
in our corporate culture
with Code of Conduct
and Sustainability
Agenda
- Anti-bribery and anti-
corruption trainings held
regularly
- Supplier Code of
Conduct and EcoVadis
in place
- Payment practices
negotiated with
suppliers
- Internal and external
whistleblowing channels
in place
- Good corporate culture
improves reputation
- Our sustainability vision
attracts more investors
Interaction with strategy and
business model
Suominen operates responsibly and consistently
throughout the world. We promote responsible operations
in our supply chain and in society at large by respecting
human rights, minimizing the environmental impact of
our own operations and being a good corporate citizen.
We adhere to high ethical standards in all our activities.
We collaborate with a significant number of stakeholders
in multicultural environments every day. We develop our
business relationships in a fair and responsible way and
strive for transparency in our communication.
We are committed to full compliance with all applicable
national and international laws, regulations, and generally
accepted practices and refrain from all unfair business
practices, such as fraud, corruption, and bribery. Suominen
is committed to the UN Global Compact corporate
responsibility initiative and its principles in the areas of
human rights, labor, environment, and anti-corruption. We
have supported the initiative since 2020.
Suominen is involved with all our material business
conduct related impacts through our own activities. These
positive impacts are created by following our policies and
principles, such as Code of Conduct, Gift, Entertainment
and Anti-bribery Policy, SpeakUp Policy, Purchasing Policy
and the related internal trainings. Our sustainable sourcing
practices, fair payment practices, the use of EcoVadis
and our Supplier Code of Conduct promote sustainable
business conduct in our value chain creating a positive
impact on society.
We didn’t identify any material negative impacts related
to G1 standard (Business conduct). All our material impacts
can materialize within a short time horizon.
All our material business conduct-related financial
opportunities are related to our business relationships.
Good corporate culture and sustainability vision can
improve our reputation and increase our attractiveness to
employees, customers and investors. We didn’t identify
any material financial risks related to business conduct.
One of the four themes defined in our Sustainability
Agenda for 2020–2025 as well as for 2025–2030
is corporate citizenship. We promote responsible
business practices in our operations and supply chain
and communicate openly and transparently about our
operations. We have set targets related to raw material
supplier assessments and promoting sustainability in our
own operations.
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Policies related to business conduct
Our daily operations are guided by Suominen’s Code of
Conduct and other policies described below, which are
the cornerstones of our fair and sustainable business
practices. We promote our corporate culture in our
operations and supply chain by respecting human rights
and by adhering to high ethical standards in all our
activities. We also communicate openly and transparently
about our operations and frequently train our employees
on our Code of Conduct.
We continue to evaluate and develop our corporate
citizenship by reviewing our policies and bringing them
to the Board for review and approval every two years. We
also monitor our performance in business conduct via the
Sustainability Agenda and quarterly compliance reviews.
Code of Conduct
The Code of Conduct sets out Suominen’s expectations
for doing business responsibly, ethically, and consistently
according to our values, our policies, and the law. Among
the key issues addressed by the Code of Conduct are fair
business practices, financial regulations, human rights,
and the environment. The Code has been adopted by
Suominen Corporation and its subsidiaries, and it applies
to all employees, globally. Our Code of Conduct training
is mandatory for all employees, and employees need to
retake the course every other year. The CEO of Suominen
is accountable for the implementation of the Code
of Conduct.
Supplier Code of Conduct
Requirements for Suominen’s suppliers are described
in the Supplier Code of Conduct, which addresses
issues such as human rights, wages and working hours,
child labor and forced labor, corruption and bribery,
and the environment. As stated in our Supplier Code of
Conduct, we expect our suppliers and business partners
to understand and comply with all applicable laws and
regulations and to apply the same social, legal, and ethical
standards as Suominen.
Suominen’s Supplier Code of Conduct outlines that
suppliers are expected to continuously monitor their
compliance with the Code. Suominen may request the
supplier to verify its compliance with the Supplier Code
through a self-assessment questionnaire, third-party
assessment, and/or on-site audit. The supplier shall
cooperate with any such requests and audits. The Code
also sets out how suppliers and their representatives can
report actual or potential misconduct. The reports can
be done via the reporting channels set out in the Supplier
Code. The VP Sourcing of Suominen is accountable for
the implementation of the Supplier Code of Conduct.
Gift, Entertainment and Anti-bribery Policy
The purpose of the Gift, Entertainment and Anti-bribery
Policy is to further specify the requirements of our Code
of Conduct and provide guidance for compliance with
all applicable anti-bribery and anti-corruption laws, and
to outline what gifts and entertainment are allowed. The
Policy serves as a minimum standard, and compliance with
it by all Suominen employees is mandatory at all times. In
jurisdictions where local anti-bribery or anti-corruption
laws set stricter rules than those set out in the Policy,
the stricter rules must prevail. Our Gift, Entertainment
and Anti-bribery Policy is in line with the United Nations
Convention against Corruption. The General Counsel
of Suominen is accountable for the implementation
of the Gift, Entertainment and Anti-bribery Policy. We
have identified our white-collar employees to be at-risk
in respect of corruption and bribery. Due to this, the
Anti-Bribery and Corruption e-Learning is mandatory for
all white-collar employees.
SpeakUp Policy
The SpeakUp Policy explains how concerns about
suspected misconduct regarding any violation of law
or severe violation of the Code of Conduct or any
supplementing Group policies can be raised in confidence
and without fear of retaliation. It outlines the channels for
raising concerns of suspected misconduct and the roles
and responsibilities within the Group for handling reports
of suspected misconduct. The SpeakUp Policy applies to
all Suominen employees and is offered in all Suominen
local languages. The General Counsel is accountable for
the implementation of the SpeakUp Policy.
The Code of Conduct training, which is mandatory
for all employees, includes information on how to
raise concerns of suspected misconduct. Our Code of
Conduct and the SpeakUp Policy allows employees to
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raise concerns about suspected misconduct through a
variety of channels. The channels include the employees’
supervisor, HR or other specialist department and
the SpeakUp Line. The SpeakUp Line is hosted by an
independent third party and is available at all times for
raising concerns confidentially and in the employees’ own
language. The SpeakUp Line enables misconducts and
concerns to be reported anonymously.
Review and investigation of concerns are conducted in
an independent, fair and unbiased manner with respect
to all parties involved, in accordance with relevant laws
and principles. Where the identity of the reporting person
is known, this will be protected to the extent possible.
This means that information about concerns will only
be shared with a limited number of people on a strict
need-to-know basis. Information will only be disclosed
outside this small group if Suominen is required to do so
by law or an important public interest is at stake.
All reports coming in through the SpeakUp Line are
reviewed by the General Counsel and the CFO (the
”Compliance Officers”). The Compliance Officers present a
summary of the reports to the Audit Committee quarterly
in their regular meetings and report all severe cases
immediately to the Chair of the Audit Committee. The
Compliance Officers take part in the anti-corruption and
bribery training mandatory for all white-collar employees
and additional training material is offered by the SpeakUp
Line provider.
Suominen has a strict policy of non-retaliation against
anyone who raises a compliance concern in good faith.
The right of non-retaliation is guaranteed under the Code
of Conduct and may be guaranteed also by applicable
national laws.
Purchasing Policy
The purpose of the Purchasing Policy is to describe
Suominen’s principles and roles and responsibilities for
sourcing and purchasing of goods and services from
third-party suppliers. Following generally accepted and
consistent purchasing practices and principles ensures
that all purchases are made in an ethical manner and
align with Suominen’s values and objectives. The Policy
applies to all Suominen employees and all sourcing and
purchasing at Suominen regardless of the type of goods or
services. VP Sourcing of Suominen is accountable for the
implementation of the Purchasing Policy.
Targets related to business conduct
As an entity specific disclosure, Suominen discloses its
targets and progress related to business conduct. In line
with our strategy and business conduct-related policies,
our Sustainability Agenda for 2020–2025 as well as
for 2025–2030 has set targets and key performance
indicators related to our corporate citizenship. The targets
relate to our positive impacts of promoting sustainability
through our Code of Conduct and management of our
supplier relationships. The Sustainability Agendas were
formulated based on materiality assessments, which
included input from our stakeholders. The targets are set
by us voluntarily and are not required by legislation.
Sustainability Agenda 2020–2025
Suominen’s target is 100% training coverage of the
renewed Code of Conduct within existing employees
and new hires. Our second target is that our raw material
suppliers are assessed against the Supplier Code of
Progress of business
conduct related
targets 2019 2020 2021 2022 2023 2024
Code of Conduct
training coverage (%)
- Code of Conduct
renewed
82% 95% 94% 92%
Supplier assessment:
Raw material suppliers
assessed against
supplier code (based on
risk assessment)
- Auditing process
planning
ongoing
Establishing
auditing process
proceeded as
planned
Establishing
auditing process
proceeded as
planned
Process
established
Our primary raw material
suppliers cover 93% of our
raw material purchases (in
tons). 91% of the purchased
raw material tons from these
primary suppliers, comes from
suppliers, with a valid EcoVadis
ESG assessment in place.
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Conduct by 2025. By the end of 2024, 92% of Suominen’s
employees had completed the Code of Conduct training.
Suominen established a supplier sustainability assessment
process in 2024. In accordance with the process, all raw
material suppliers were invited to complete a sustainability
assessment through EcoVadis, and corrective actions are
subsequently defined to address any identified issues.
Ecovadis sustainability questionnaire consists of four
categories: Environment, Labor & Human Rights, Ethics,
and Sustainable Procurement. In 2024, our primary
raw material suppliers covered 93% of our raw material
purchases (in tons). 91% of the purchased raw material
tons from these primary suppliers, came from suppliers,
with a valid EcoVadis ESG assessment in place.
Sustainability Agenda 2025–2030
Our target is that all employees have completed
Suominen’s sustainability training program by 2030.
In addition, our target is that all qualified raw material
suppliers have been assessed against Suominen’s
sustainability criteria by 2030.
Sustainability is the core principle of all our functions.
Our goal is to ensure that every employee, regardless
of their role or function, understands and contributes
to our sustainability objectives. Sustainability is not just
a corporate responsibility but a collective effort that
requires the active participation of everyone. To achieve
this goal, we will provide comprehensive trainings to all
our employees to increase the sustainability awareness
in our company. The target includes all existing and new
employees who have started working for Suominen
between Q1 to Q3 of the year reported. Target progression
is followed as a relative target, employees who have
completed the sustainability training program, compared
to total number employees.
By assessing raw material suppliers on their
environmental, social, and governance (ESG) practices,
Suominen can identify and mitigate potential risks such
as harmful environmental practices, unethical labor
conditions, or regulatory breaches. Sustainability due
diligence is a proactive approach and helps to avoid supply
chain disruptions and safeguards the Group’s reputation.
Moreover, investors, customers, legislators, employees,
and other stakeholders are increasingly demanding
accountability for social and environmental impacts.
Target progression is followed as a relative target, qualified
raw material suppliers who have been assessed against
sustainability criteria, compared to the total number of
qualified raw material suppliers.
In order to assess our qualified raw material suppliers,
we will renew our sustainability due diligence process
2025 onwards. The existing supplier management process
is described in the Raw Material Suppliers -section.
Management of relationships with
suppliers
Procurement is the responsibility of Group functions and
more specifically the Sourcing function. The goal is to
select business partners carefully and collaborate only
with those who conduct business ethically and responsibly
and share Suominen’s values. Sourcing is guided by
Suominen’s Purchasing Policy, which covers the sourcing
and purchasing of goods and services.
Raw material suppliers are required to sign and comply
with Suominen’s Supplier Code of Conduct. The purpose
of the Supplier Code of Conduct is to explain Suominen’s
expectations for doing business responsibly and ethically
and to set the standards for conducting business
with Suominen.
Raw material suppliers
Suominen’s current due diligence process for managing
sustainable raw material sourcing consists of two
elements: country risk assessment and a sustainability
questionnaire.
We assess our potential new raw material suppliers with
a country risk assessment. The assessment is designed to
outline a standardized method for assessing the likelihood
that a potential supplier may have insufficient sustainable
practices in place to minimize potential risks to Suominen
and its stakeholders and so that precautions can be taken
to reduce risks. We identify and consider potential hazards
and impacts concerning the environment, labor & human
rights, and ethics, based on the geographic location and
geopolitical and governmental practices.
Every raw material supplier is required to complete
trial runs for quality and performance to ensure their raw
materials meet or exceed our standards to become a
qualified raw material supplier.
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All qualified raw material suppliers will be invited and
encouraged to participate in an annual sustainability
questionnaire with EcoVadis. The resulting scorecard
disclosing an overall score is published internally.
Quarterly, Suominen monitors supplier scorecards, taking
the opportunity to engage with suppliers who score less
than the average industry score. In such a case, Suominen
will initiate a corrective action plan (CAP) to address
unacceptable scores and encourage the supplier to make
improvements.
We are going to revisit this sustainability due diligence
process for raw material sourcing and develop it further as
part of our 2025–2030 Sustainability Agenda.
Prevention of late payments
Suominen has established internal processes related to
handling and approval of payments, which are used and
updated continuously.
Prevention and detection of corruption
and bribery
Suominen is committed to complying with all applicable
laws and responsible business practices. Suominen’s
operations are ethical and transparent, and we expect also
our suppliers and business partners to comply with the law
and apply the same ethical standards as Suominen.
Suominen’s Code of Conduct and Gift, Entertainment
and Anti-bribery Policy guide our principles and processes
regarding the prevention of corruption and bribery. All
employees are expected to be aware of and comply with
applicable laws and regulations and are instructed to seek
legal advice if in doubt. Any employee who becomes
aware of an actual or potential violation of the Code of
Conduct has the responsibility to report the matter via
the available channels, such as the SpeakUp Line. Every
reported suspected misconduct is investigated. Our
policies are described in more detail in Policies related to
business conduct.
Our Code of Conduct training is mandatory for all
employees and an e-Learning course on Anti-bribery and
Corruption is mandatory for all white-collar employees.
100% of functions-at-risk are covered by these training
programs and the training extends to all members of
the Executive Management Team. At the end of 2024,
92% of all employees had completed the Code of
Conduct training.
We select our business partners carefully and
collaborate only with those who conduct business
ethically and responsibly. We expect our suppliers and the
business partners that act on our behalf to understand
and comply with all applicable laws and regulations and to
apply the same ethical standards that Suominen practices.
Misconduct can be reported by our business partners via
the reporting channels set out in the Supplier Code.
Incidents of corruption or bribery
In 2024 there were no identified corruption or bribery
cases. There were no convictions or fines for violation of
anti-corruption and anti-bribery laws and no actions were
taken to address breaches in procedures and standards
of anti-corruption and anti-bribery. The numbers include
incidents involving actors in our value chain where
Suominen or its employees are directly involved.
Incidents of corruption or bribery 2024
Number of incidents of corruption or bribery 0
Number of convictions for violation of anti-corruption and
anti-bribery laws 0
Amount of fines issued for violation of anti-corruption and
anti-bribery laws (EUR) 0
Payment practices with suppliers
Suominen follows established and consistent market
practices when agreeing on payment terms with its
suppliers. Payment terms are determined based on the
company’s working capital requirements, local market
practices, and applicable legislation. The type of contract,
delivery terms, and delivery method also influence the
determination of payment terms. Suominen strives to
comply with the agreed payment terms with suppliers in
accordance with its internal payment processes.
The average time it takes for Suominen to pay an invoice
from the date when the contractual or statutory term of
payment calculation begins was 47 days in 2024.
Suominen is not a party to any legal proceedings
currently outstanding for late payments.
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Appendix
Content index of disclosure requirements Page
ESRS 2 General disclosures
BP-1 General basis for preparation of the sustainability statements 59
BP-2 Disclosures in relation to specific circumstances 59–60,
65–66
GOV-1 The role of the administrative, management and supervisory bodies 60–61
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and
supervisory bodies
60–61
GOV-3 Integration of sustainability-related performance in incentive schemes 62
GOV-4 Due diligence 62
GOV-5 Risk management and internal controls over sustainability reporting 62
SBM-1 Market position, strategy, business model(s) and value chain 63
SBM-2 Interests and views of stakeholders 64
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 65–67,
77–78, 84,
86, 89, 94,
101
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 67–70
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statements 70,
106–115
E1 Climate change
SBM-3 Material impacts, risks and opportunities and their interaction of with strategy and business model 77–78
E1-1 Transition plan for climate change mitigation 78
E1-2 Policies related to climate change mitigation and adaptation 78
E1-3 Actions and resources in relation to climate change policies 78–79
E1-4 Targets related to climate change mitigation and adaptation 79–80
E1-5 Energy consumption and mix 80–81
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 81–83
E2 Pollution
E2-1 Policies related to pollution 84
E2-2 Actions and resources related to pollution 85
E2-3 Targets related to pollution 85
E2-4 Pollution of air, water and soil 85
E3 Water and marine resources
E3-1 Policies related to water and marine resources 86
E3-2 Actions and resources related to water and marine resources 87
E3-3 Targets related to water and marine resources 87
E3-4 Water consumption 87–88
E5 Resource use and circular economy
E5-1 Policies related to resource use and circular economy 90
E5-2 Actions and resources related to resource use and circular economy 90
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Content index of disclosure requirements Page
E5-3 Targets related to resource use and circular economy 90–91
E5-4 Resource inflows 92
E5-5 Resource outflows 92–93
S1 Own workforce
SBM-3 Material impacts, risks and opportunities and their interaction of with strategy and business model 94
S1-1 Policies related to own workforce 95–96
S1-2 Processes for engaging with own workforce and workers’ representatives about impacts 96
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns 96,
102–103
S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of those actions
96
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and
opportunities
96–97
S1-6 Characteristics of the undertaking’s employees 96–98
S1-7 Characteristics of non-employees in the undertaking’s own workforce 98
S1-9 Diversity metrics 98
S1-13 Training and skills development metrics 99
S1-14 Health and safety metrics 99
S1-16 Remuneration metrics (pay gap and total remuneration) 100
S1-17 Incidents, complaints and severe human rights impacts 100
G1 Business conduct
G1-1 Business conduct policies and corporate culture 102–103
G1-2 Management of relationships with suppliers 103
G1-3 Prevention and detection of corruption and bribery 104
G1-4 Confirmed incidents of corruption or bribery 105
G1-6 Payment practices 105
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Table of all the datapoints deriving from other EU legislation:
Disclosure Requirement and
related data point
Sustainability
statement p. SFDR reference Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference
ESRS 2 GOV-1
Board’s gender diversity
Paragraph 21 (d)
60 Indicator number
13 of Table #1 of
Annex 1
Commission
Delegated
Regulation (EU)
2020/1816, Annex II
Percentage of board members
who are independent
Paragraph 21 (e)
60 Commission
Delegated
Regulation (EU)
2020/1816, Annex II
ESRS 2 GOV-4
Statement on due diligence
Paragraph 30
62 Indicator number 10
Table #3 of Annex 1
ERS 2 SBM-1
Involvement in activities related
to fossil fuel activities
Paragraph 40 (d) i
Not material Indicators number 4
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Table 1: Qualitative
information on
Environmental
risk and Table
2: Qualitative
information on
Social risk
Delegated
Regulation (EU)
2020/1816, Annex II
Involvement in activities related
to chemical production
Paragraph 40 (d) ii
Not material Indicator number 9
Table #2 of Annex 1
Delegated
Regulation (EU)
2020/1816, Annex II
Involvement in activities related
to controversial weapons
Paragraph 40 (d) iii
Not material Indicator number 14
Table #1 of Annex 1
Delegated
Regulation (EU)
2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
Involvement in activities related
to cultivation and production of
tobacco
Paragraph 40 (d) iv
Not material Delegated
Regulation (EU)
2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
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Disclosure Requirement and
related data point
Sustainability
statement p. SFDR reference Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference
ESRS E1-1
Transition plan to reach climate
neutrality by 2050
Paragraph 14
79–80 Regulation
(EU) 2021/1119,
Article 2(1)
Undertakings excluded from
Paris-aligned Benchmarks
Paragraph 16 (g)
79–80 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
ESRS E1-4
GHG emission reduction targets
Paragraph 34
79–80 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
ESRS E1-5
Energy consumption from
fossil sources disaggregated
by sources (only high climate
impact sectors)
Paragraph 38
80 Indicator number
5 Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Energy consumption and mix
Paragraph 37
80 Indicator number 5
Table #1 of Annex 1
Energy intensity associated with
activities in high climate impact
sectors
Paragraph 40 to 43
81 Indicator number 6
Table #1 of Annex 1
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Disclosure Requirement and
related data point
Sustainability
statement p. SFDR reference Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference
ESRS E1-6
Gross Scope 1, 2, 3 and Total
GHG emissions
Paragraph 44
81–83 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)
Gross GHG emissions intensity
Paragraphs 53 to 55
83 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)
ESRS E1-7
GHG removals and carbon
credits
Paragraph 56
Not material Regulation
(EU) 2021/1119,
Article 2(1)
ESRS E1-9
Exposure of the benchmark
portfolio to climate-related
physical risks
Paragraph 66
Phased-in
disclosure
Delegated
Regulation (EU)
2020/1818, Annex
II Delegated
Regulation (EU)
2020/1816, Annex II
Disaggregation of monetary
amounts by acute and chronic
physical risk
Paragraph 66 (a)
Location of significant assets at
material physical risk
Paragraph 66 (c)
Phased-in
disclosure
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46
and 47; Template
5: Banking book
- Climate change
physical risk:
Exposures subject
to physical risk.
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Disclosure Requirement and
related data point
Sustainability
statement p. SFDR reference Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference
Breakdown of the carrying
value of its real estate assets by
energy-efficiency classes
Paragraph 67 (c)
Phased-in
disclosure
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraph 34;
Template 2:
Banking book
-Climate change
transition
risk: Loans
collateralized
by immovable
property - Energy
efficiency of the
collateral
Degree of exposure of the
portfolio to climate related
opportunities
Paragraph 69
Phased-in
disclosure
Delegated
Regulation (EU)
2020/1818, Annex II
ESRS E2-4
Amount of each pollutant
listed in Annex II of the EPRTR
Regulation (European Pollutant
Release and Transfer Register)
emitted to air, water and soil
Paragraph 28
85 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
ESRS E3-1
Water and marine resources
Paragraph 9
86–87 Indicator number 7
Table #2 of Annex 1
Dedicated policy
Paragraph 13
86 Indicator number 8
Table 2 of Annex 1
Sustainable oceans and seas
Paragraph 14
Not material Indicator number 12
Table #2 of Annex 1
ESRS E3-4
Total water recycled and reused
Paragraph 28 (c)
87–88 Indicator number
6.2 Table #2 of
Annex 1
Total water consumption in m
3
per net sales on own operations
Paragraph 29
88 Indicator number
6.1 Table #2 of
Annex 1
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reference
ESRS 2 IRO-1 E4
Paragraph 16 (a) i 69 Indicator number 7
Table #1 of Annex 1
Paragraph 16 (b) 69 Indicator number 10
Table #2 of Annex 1
Paragraph 16 (c) 69 Indicator number 14
Table #2 of Annex 1
ESRS E4-2
Sustainable land / agriculture
practices or policies
Paragraph 24 (b)
Phased-in
disclosure
Indicator number 11
Table #2 of Annex 1
Sustainable oceans / seas
practices or policies
Paragraph 24 (c)
Not material Indicator number 12
Table #2 of Annex 1
Policies to address deforestation
Paragraph 24 (d)
Phased-in
disclosure
Indicator number 15
Table #2 of Annex 1
ESRS E5-5
Non-recycled waste
Paragraph 37 (d)
93 Indicator number 13
Table #2 of Annex 1
Hazardous waste and
radioactive waste
Paragraph 39
93 Indicator number 9
Table #1 of Annex 1
ESRS 2 SBM-3 S1
Risk of incidents of forced
labour
Paragraph 14 (f)
94 Indicator number 13
Table #3 of Annex I
Risk of incidents of child labour
Paragraph 14 (g)
94 Indicator number 12
Table #3 of Annex I
ESRS S1-1
Human rights policy
commitments
Paragraph 20
95 Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex I
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
Paragraph 21
95 Delegated
Regulation (EU)
2020/1816, Annex II
Processes and measures for
preventing trafficking in human
beings
Paragraph 22
95 Indicator number 11
Table #3 of Annex I
Workplace accident prevention
policy or management system
Paragraph 23
99 Indicator number 1
Table #3 of Annex I
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reference
ESRS S1-3
Grievance/ complaints handling
mechanisms
Paragraph 32 (c)
102 Indicator number 5
Table #3 of Annex I
ESRS S1-14
Number of fatalities and
number and rate of work-
related accidents
Paragraph 88 (b) and (c)
99 Indicator number 2
Table #3 of Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Number of days lost to injuries,
accidents, fatalities or illness
Paragraph 88 (e)
99 Indicator number 3
Table #3 of Annex I
ESRS S1-16
Unadjusted gender pay gap
Paragraph 97 (a)
Phased-in
disclosure
Indicator number 12
Table #1 of Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Excessive CEO pay ratio
Paragraph 97 (b)
100 Indicator number 8
Table #3 of Annex I
ESRS S1-17
Incidents of discrimination
Paragraph 103 (a)
100 Indicator number 7
Table #3 of Annex I
Non-respect of UNGPs on
Business and Human Rights and
OECD
Paragraph 104 (a)
100 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)
ESRS 2 SBM-3 S2
Significant risk of child labour or
forced labour in the value chain
Paragraph 11 (b)
Phased-in
disclosure
Indicators number
12 and n. 13 Table
#3 of Annex I
ESRS S2-1
Human rights policy
commitments
Paragraph 17
Phased-in
disclosure
Indicator number
9 Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Policies related to value chain
workers
Paragraph 18
Phased-in
disclosure
Indicator number 11
and n. 4 Table #3 of
Annex 1
Non-respect of UNGPs on
Business and Human Rights
principles and OECD guidelines
Paragraph 19
Phased-in
disclosure
Indicator number 10
Table #1 of Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art
12 (1)
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Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
Paragraph 19
Phased-in
disclosure
Delegated
Regulation (EU)
2020/1816, Annex II
ESRS S2-4
Human rights issues and
incidents connected to its
upstream and downstream
value chain
Paragraph 36
Phased-in
disclosure
Indicator number 14
Table #3 of Annex 1
ESRS S3-1
Human rights policy
commitments
Paragraph 16
Not material Indicator number 9
Table #3 of Annex
1 and Indicator
number 11 Table #1
of Annex 1
Non-respect of UNGPs on
Business and Human Rights,
ILO principles or and OECD
guidelines
Paragraph 17
Not material Indicator number 10
Table #1 Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art
12 (1)
ESRS S3-4
Human rights issues and
incidents
Paragraph 36
Not material Indicator number 14
Table #3 of Annex 1
ESRS S4-1
Policies related to consumers
and end-users
Paragraph 16
Phased-in
disclosure
Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex 1
Non-respect of UNGPs on
Business and Human Rights and
OECD guidelines
Paragraph 17
Phased-in
disclosure
Indicator number 10
Table #1 of Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art
12 (1)
ESRS S4-4
Human rights issues and
incidents
Paragraph 35
Phased-in
disclosure
Indicator number 14
Table #3 of Annex 1
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reference
ESRS G1-1
United Nations Convention
against Corruption
Paragraph 10 (b)
102 Indicator number 15
Table #3 of Annex 1
Protection of whistleblowers
Paragraph 10 (d)
102 Indicator number 6
Table #3 of Annex 1
ESRS G1-4
Fines for violation of anti-
corruption and anti-bribery laws
Paragraph 24 (a)
105 Indicator number 17
Table #3 of Annex 1
Delegated
Regulation (EU)
2020/1816,
Annex II)
Standards of anticorruption and
anti-bribery
Paragraph 24 (b)
104–105 Indicator number 16
Table #3 of Annex 1
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Information on the
separate financial
statements of the
parent company
Key ratios of the parent company
EUR thousand 2024 2023 2022
Net sales 28,363 23,264 22,610
Operating profit/loss 2,357 384 -1,491
% of net sales 8.3 1.7 -6.6
Net financial expenses 10,967 6,712 11,069
Profit/loss before appropriations
and income taxes 13,325 7,096 9,578
Profit/loss for the period 8,226 6,017 7,988
Return on invested capital, % 4.3 3.5 1.5
Salaries -4,382 -4,021 -4,573
Average number of personnel 35 35 31
The separate financial statements of Suominen
Corporation have been prepared according to the Finnish
Accounting Act, the Accounting Decree and other laws
and regulations relating to financial statements (FAS). The
consolidated financial statements of Suominen group
have been prepared in compliance with the International
Financial Reporting Standards (IFRS).
Net sales of Suominen Corporation were EUR 28.4
million (23.3) and operating profit EUR 2.4 million (0.4).
Net financial expenses were EUR +11.0 million (+6.7).
Profit for the period was EUR 8.2 million (6.0). There are
no related party loans except loans to other Suominen
group companies.
In the financial year 2024, the parent company had on
average 35 (35) employees and at the end of the year
33 (37) employees.
Outlook
Suominen expects that its comparable EBITDA (earnings
before interest, taxes, depreciation and amortization)
in 2025 will improve from 2024. In 2024, Suominen’s
comparable EBITDA was EUR 17.0 million.
Proposal by the
Board of Directors
for the use of
the profit
The profit of the financial year 2024 of Suominen
Corporation, the parent company of Suominen Group,
was EUR 8,226,169.47. The funds distributable as dividends,
including the profit for the period, were EUR 18,795,433
and total distributable funds were EUR 94,487,769.
The Board of Directors proposes that no dividend shall
be distributed for the financial year 2024 and that the
profit shall be transferred to retained earnings.
Events after the
reporting period
Commencement of a new plan period in the
share-based long-term incentive plan for
management and key employees
Suominen announced on January 27, 2025, that the Board
of Directors of Suominen Corporation has decided on the
commencement of a new long-term incentive plan period
covering the years 2025–2027 for management and key
employees.
The purpose of the plan is to align the interests of the
company’s shareholders and key employees to increase
the company’s value in the long-term, to commit key
employees to implement the company’s strategy,
objectives and long-term interest, and to reward them for
high performance.
The performance criteria of the performance period
2025–2027 are tied to Absolute Total Shareholder Return
(weight 40%) covering the years 2025–2027, Relative
Total Shareholder Return (weight 40%) covering the years
2025–2027, and operative performance and sustainability
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goal (weight 20%) covering the year 2025 and measuring
the company’s target to improve its raw material
efficiency. The potential rewards from the plan will be paid
after the end of the performance period.
The value of the rewards to be paid on the basis of
the plan corresponds to a maximum total of 1,375,431
shares of Suominen, including also the proportion to be
paid in cash. The target group in the performance period
2025–2027 consists of 28 key employees, including the
President & CEO and other members of the Executive
Management Team.
The potential reward will be paid partly in Suominen’s
shares and partly in cash. The cash proportion of the
reward is intended to cover taxes and statutory social
security contributions arising from the reward to the key
employee. As a rule, no reward will be paid if the key
employee’s employment or director contract terminates
before the reward payment.
The Executive Management Team member must hold
50% of the received shares until the value of the Executive
Management Team member’s total shareholding in
Suominen equals to 50% of the member’s annual gross
salary for the calendar year preceding the payment of
the reward. Respectively, the President & CEO must hold
50% of the received shares until the value of the President
& CEO’s total shareholding in Suominen equals to the
value of the President & CEO’s annual gross salary for the
calendar year preceding the payment of the reward. Such
number of Suominen shares must be held as long as the
membership in the Executive Management Team or the
position as the President & CEO continues.
Darryl Fournier appointed as the COO of Suominen
Suominen announced on January 27, 2025, that Darryl
Fournier has been appointed as the Chief Operating
Officer at Suominen. He became a member of Suominen’s
Executive Management Team and reports to President &
CEO Tommi Björnman. Fournier started in his new position
on February 10, 2025.
Proposals of the nomination board to the AGM 2025
The Shareholders’ Nomination Board of Suominen
Corporation proposes to the Annual General Meeting
2025 that the number of Board members will be increased
from six to seven.
The Nomination Board proposes to the Annual General
Meeting that Andreas Ahlström, Björn Borgman, Charles
Héaulmé, Nina Linander and Laura Remes would be
re-elected as members of the Board of Directors and that
Gail Ciccione and Maija Joutsenkoski would be elected as
new members of the Board of Directors.
Out of the current Board members, Aaron Barsness,
has informed that he is not available for re-election to the
Board of Directors.
Gail Ciccione (b. 1960, BBA, U.S. citizen) is currently the
business owner of Trinity Operations Partner, LLC. Prior
to that, she has held a number of executive positions at
Laborie Medical Technologies, Becton Dickinson and
Kimberly-Clark.
Maija Joutsenkoski (b. 1981, M.Sc. (Technology), Finnish
citizen) currently works as an Investment Director at A.
Ahlström Corporation. Prior to that, she has held a number
of executive and other positions at CapMan Buyout, UPM,
Nordic Capital and Goldman Sachs.
All candidates have given their consent to the election.
All candidates are independent of the company. All
candidates are independent of the company’s significant
shareholders, with the exceptions of Andreas Ahlström
and Maija Joutsenkoski. The largest shareholder of
Suominen Corporation, Ahlstrom Capital B.V., is part of
the A. Ahlström Group. Andreas Ahlström acts currently
as the CEO of Ahlström Invest B.V., which is an associated
company of A. Ahlström Group. Maija Joutsenkoski acts as
the Investment Director at A. Ahlström Corporation, which
is the parent company of Ahlstrom Capital B.V.
The Nomination Board proposes to the Annual General
Meeting that Charles Héaulmé would be re-elected as the
Chair of the Board of Directors.
With regard to the election procedure for the members
of the Board of Directors, the Nomination Board
recommends that the shareholders take a position on the
proposal as a whole at the Annual General Meeting. In
preparing its proposals the Nomination Board, in addition
to ensuring that individual board member candidates
possess the required competences, has determined
that the proposed Board of Directors as a whole has the
best possible expertise for the company and that the
composition of the Board of Directors meets the other
requirements of the Finnish Corporate Governance Code
for listed companies.
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Proposal on the Board remuneration
The Nomination Board proposes that the remuneration of
the Board of Directors remains unchanged and would be
as follows: the Chair would be paid an annual fee of EUR
74,000, the Deputy Chair an annual fee of EUR 45,000 and
other Board members an annual fee of EUR 35,000. The
Nomination Board also proposes that the additional fee
paid to the Chair of the Audit Committee would remain
unchanged and be EUR 10,000.
Further, the Nomination Board proposes that the fees
payable for each Board and Committee meeting would
remain unchanged and be as follows: EUR 500 for each
meeting held in the home country of the respective
member, EUR 1,000 for each meeting held elsewhere
than in the home country of the respective member and
EUR 500 for each meeting attended by telephone or
other electronic means. No fee is paid for decisions made
without convening a meeting.
75% of the annual fees is paid in cash and 25% in
Suominen Corporation’s shares. The shares will be
transferred out of the own shares held by the company by
the decision of the Board of Directors within two weeks
from the date on which the interim report of January–
March 2025 of the company is published.
Compensation for expenses will be paid in accordance
with the company’s valid travel policy.
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Note
December 31,
2024
December 31,
2023
ASSETS
Non-current assets
Goodwill 5 15,496 15,496
Intangible assets 6 2,754 6,084
Property, plant and equipment 7 120,356 112,727
Right-of-use assets 21 11,003 11,109
Equity instruments 9 421 421
Other non-current receivables 11 158 83
Deferred tax assets 26 2,269 2,048
Total non-current assets 152,457 147,967
Current assets
Inventories 10 47,470 37,914
Trade receivables 11 62,477 62,325
Other current receivables 11 6,119 7,345
Assets for current tax 26 514 2,128
Cash and cash equivalents 41,340 58,755
Total current assets 157,919 168,467
TOTAL ASSETS 310,376 316,434
Note
December 31,
2024
December 31,
2023
EQUITY AND LIABILITIES
Equity
Share capital 13 11,860 11,860
Share premium account 24,681 24,681
Reserve for invested unrestricted
equity 75,692 75,692
Fair value and other reserves 436 316
Exchange differences 3,312 111
Retained earnings 1,626 12,251
Total equity attributable to owners
of the parent 117,608 124,912
Liabilities
Non-current liabilities
Deferred tax liabilities 26 7,990 9,362
Liabilities from defined benefit plans 23 189 179
Non-current provisions 15 588 564
Non-current lease liabilities 14 9,277 9,711
Debenture bonds 14 49,606 49,449
Total non-current liabilities 67,650 69,265
Current liabilities
Current provisions 15 178 3,870
Current lease liabilities 14 2,877 3,117
Other current interest-bearing
liabilities 14 40,000 40,000
Liabilities for current tax 26 214 148
Trade payables and other current
liabilities 16 81,849 75,122
Total current liabilities 125,118 122,257
Total liabilities 192,768 191,522
TOTAL EQUITY AND LIABILITIES 310,376 316,434
Consolidated financial
statements (IFRS) 2024
Consolidated statement of financial position
EUR thousand
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Note
January 1 –
December 31,
2024
January 1 –
December 31,
2023
Net sales 18 462,318 450,851
Cost of goods sold -432,589 -428,122
Gross profit 29,729 22,729
Other operating income 20 4,952 4,802
Sales, marketing and administration
expenses -32,068 -28,497
Research and development
expenses -4,023 -3,851
Other operating expenses 20 152 -2,700
Operating profit -1,257 -7,517
Net financial expenses 25 -4,086 -5,987
Profit before income taxes -5,343 -13,504
Income taxes 26 53 719
Profit for the period -5,290 -12,786
Earnings per share, EUR 28
Basic -0.09 -0.22
Diluted -0.09 -0.22
January 1 –
December 31,
2024
January 1 –
December 31,
2023
Profit for the period -5,290 -12,786
Other comprehensive income:
Other comprehensive income that will
be subsequently reclassified to profit
or loss:
Exchange differences 3,949 -2,991
Income taxes related to other
comprehensive income -749 424
Total 3,201 -2,567
Other comprehensive income that will
not be subsequently reclassified to
profit or loss:
Remeasurements of defined
benefit plans -11 -22
Total -11 -22
Total other comprehensive income 3,190 -2,589
Total comprehensive income for the
period -2,100 -15,375
Consolidated statement
of profit or loss
EUR thousand
Consolidated statement
of comprehensive income
EUR thousand
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Share capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Exchange
differences
Fair value and
other reserves
Retained
earnings
Total equity
attributable
to owners of
the parent
Equity January 1, 2024 11,860 24,681 75,692 111 316 12,251 124,912
Profit for the period − − − − − -5,290 -5,290
Other comprehensive income − − − 3,201 − -11 3,190
Total comprehensive income − − − 3,201 − -5,301 -2,100
Distribution of dividend − − − − − -5,769 -5,769
Share-based payments − − − − − 511 511
Conveyance of treasury shares − − − − − 54 54
Transfers − − − − 120 -120 −
Equity December 31, 2024 11,860 24,681 75,692 3,312 436 1,626 117,608
Share capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Exchange
differences
Fair value and
other reserves
Retained
earnings
Total equity
attributable
to owners of
the parent
Equity January 1, 2023 11,860 24,681 75,692 2,678 265 30,740 145,916
Profit for the period − − − − − -12,786 -12,786
Other comprehensive income − − − -2,567 − -22 -2,589
Total comprehensive income − − − -2,567 − -12,808 -15,375
Distribution of dividend − − − − − -5,767 -5,767
Share-based payments − − − − − 88 88
Conveyance of treasury shares − − − − − 49 49
Transfers − − − − 51 -51 −
Equity December 31, 2023 11,860 24,681 75,692 111 316 12,251 124,912
Consolidated statement of changes in equity
EUR thousand
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Note
January 1−December 31,
2024
January 1−December 31,
2023
Cash flow from operations
Profit for the period -5,290 -12,786
Total adjustments to profit for the period 29 21,244 26,612
Cash flow before changes in net working capital 15,954 13,826
Change in net working capital -5,931 25,703
Financial items -4,975 -4,954
Income taxes -1,191 -3,851
Cash flow from operations 3,857 30,724
Cash flow from investments
Investments in property, plant and equipment and intangible assets -14,391 -11,062
Sales proceeds from property, plant and equipment and intangible assets 114 36
Cash flow from investments -14,277 -11,027
Cash flow from financing
Drawdown of current interest-bearing liabilities 14 160,000 240,000
Repayment of current interest-bearing liabilities 14 -163,312 -243,271
Distribution of dividend -5,769 -5,767
Cash flow from financing -9,081 -9,038
Change in cash and cash equivalents -19,501 10,659
Cash and cash equivalents at the beginning of the period 58,755 49,508
Effect of changes in exchange rates 2,086 -1,412
Change in cash and cash equivalents -19,501 10,659
Cash and cash equivalents at the end of the period 41,340 58,755
Consolidated statement of cash flows
EUR thousand
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Key ratios per share
Key ratios per share are share-issue adjusted.
2024 2023 2022
Earnings per share, EUR -0.09 -0.22 -0.24
Earnings per share, EUR, diluted -0.09 -0.22 -0.24
Cash flow from operations per share, EUR 0.07 0.53 0.24
Equity per share, EUR 2.04 2.17 2.54
Price per earnings per share (P/E) ratio -24.87 -12.85 -12.43
Dividend payout ratio, % N/A -45.1 -41.4
Dividend yield, % N/A 3.51 3.33
Number of shares, end of period, excluding treasury shares 57,727,103 57,692,459 57,480,727
Average number of shares excluding treasury shares 57,713,587 57,656,044 57,439,615
Average share-issue adjusted number of shares excluding treasury shares 57,713,587 57,656,044 57,439,615
Share price, end of period, EUR 2.28 2.85 3.00
Share price, period low, EUR 1.96 2.48 2.36
Share price, period high, EUR 2.93 3.48 5.27
Volume-weighted average price during the period, EUR 2.53 2.85 3.57
Market capitalization, EUR million 131.6 164.4 172.4
Number of traded shares during the period 951,426 2,743,668 10,902,032
Number of traded shares during the period, % of average number of shares (share turnover) 1.7 4.8 19.0
* Proposal by the Board of Directors to the Annual General Meeting
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Calculation of key ratios per share
Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in
Finland or alternative performance measures (cash flow from operations per share).
Earnings per share
Basic earnings per share (EPS) =
Profit for the period
Share-issue adjusted average number of shares
excluding treasury shares
Diluted earnings per share (EPS) =
Profit for the period
Average diluted share-issue adjusted number of shares
excluding treasury shares
Calculation of earnings per share is disclosed in Note 28.
Cash flow from operations per share
Cash flow from operations per share =
Cash flow from operations
Share-issue adjusted number of shares excluding treasury
hares, end of the reporting period
Equity per share
Equity per share =
Total equity attributable to owners of the parent
Share-issue adjusted number of shares excluding treasury
shares, end of the reporting period
2024 2023
Cash flow from operations, EUR thousand 3,857 30,724
Share-issue adjusted number of shares excluding treasury shares, end of
the reporting period 57,727,103 57,692,459
Cash flow from operations per share, EUR 0.07 0.53
2024 2023
Total equity attributable to owners of the parent, EUR thousand 117,608 124,912
Share-issue adjusted number of shares excluding treasury shares, end of
the reporting period 57,727,103 57,692,459
Equity per share, EUR 2.04 2.17
Reference
Consolidated statement of cash flows
Note 13
Reference
Consolidated statement of
financial position
Note 13
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Dividend yield, %
Dividend yield, % =
Dividend per share x 100
Share price at end of the period
Dividend payout ratio, %
Dividend payout ratio, % =
Dividend per share x 100
Basic earnings per share
Price per earnings per share (P/E)
Price per earnings per share (P/E) =
Share price at end of the period
Basic earnings per share
2024 2023
Dividend per share x 100 0.00 10.00
Share price at end of the period, EUR 2.28 2.85
Dividend yield, % N/A 3.51
2024 2023
Dividend per share x 100 0.00 10.00
Basic earnings per share, EUR -0.09 -0.22
Dividend payout ratio, % N/A -45.1
2024 2023
Share price at end of the period, EUR 2.28 2.85
Basic earnings per share, EUR -0.09 -0.22
Price per earnings per share (P/E) -24.87 -12.85
Reference
The proposal by the Board
Note 28
Reference
Note 13
Reference
Note 13
Note 28
Market capitalization
Market capitalization =
Number of shares at the end of reporting period excluding treasury
shares x share price at the end of period
2024 2023
Number of shares at the end of reporting period excluding treasury shares 57,727,103 57,692,459
Share price at end of the period, EUR 2.28 2.85
Market capitalization, EUR million 131.6 164.4
Reference
Note 13
Note 13
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Share turnover
Share turnover =
The proportion of number of shares traded during the period to
weighted average number of shares excluding treasury shares
2024 2023
Number of shares traded during the period 951,426 2,743,668
Average number of shares excluding treasury shares 57,713,587 57,656,044
Share turnover, % 1.7 4.8
Reference
Note 13
Note 13
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Income statement
EUR
Note
January 1−December 31,
2024
January 1−December 31,
2023
Net sales 28,362,537.37 23,263,727.25
Cost of goods sold -3,786,863.40 -3,737,356.29
Gross profit 24,575,673.97 19,526,370.96
Other operating income 2 382,008.70 389,985.58
Sales and marketing expenses -1,651,006.71 -1,771,352.90
Research and development -1,073,766.16 -1,124,270.20
Administration expenses -10,798,106.62 -9,210,342.61
Other operating expenses 2 -9,077,480.29 -7,426,244.77
Operating profit 2,357,322.89 384,146.06
Financial income 6 15,885,810.36 14,634,238.97
Financial expenses 6 -4,918,556.92 -7,922,088.66
Total financial income and expenses 10,967,253.44 6,712,150.31
Profit before appropriations and income taxes 13,324,576.33 7,096,296.37
Change in depreciation difference 7 174,088.55 81,620.37
Group contributions 7 -3 635 000.00 -1,125,000.00
Income taxes 8 -1,637,495.41 -35,792.08
Profit for the period 8,226,169.47 6,017,124.66
Parent company financial
statements (FAS)
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Balance sheet
EUR
Note December 31, 2024 December 31, 2023
ASSETS
Non-current assets
Intangible assets 5, 9 2,576,497.98 5,038,299.43
Tangible assets 5, 10 1,212,515.69 750,812.36
Investments
Shares in subsidiaries 11 113,363,783.56 113,363,783.56
Other investments 11 192.06 192.06
Loan receivables
Loan receivables from group companies 12 89,220,975.84 86,478,329.49
Total non-current assets 206,373,965.13 205,631,416.90
Current assets
Loan receivables
Loan receivables from group companies 12 14,403,916.05 4,000,000.00
Trade receivables 12 69,346.49 70,002.42
Other current receivables 12 1,702,708.74 2,920,280.88
Cash and cash equivalents 37,799,925.53 53,688,029.66
Total current assets 53,975,896.81 60,678,312.96
TOTAL ASSETS 260,349,861.94 266,309,729.86
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EUR
Note December 31, 2024 December 31, 2023
EQUITY AND LIABILITIES
Equity
Share capital 14 11,860,056.00 11,860,056.00
Share premium account 24,680,587.83 24,680,587.83
Reserve for invested unrestricted equity 75,692,335.90 75,692,335.90
Retained earnings 10,569,263.75 10,321,384.99
Profit for the period 8,226,169.47 6,017,124.66
Total equity 13 131,028,412.95 128,571,489.38
Untaxed reserves
Depreciation difference 1,020,412.03 1,194,500.58
Liabilities
Non-current liabilities
Interest-bearing liabilities
Debentures 15 50,000,000.00 50,000,000.00
Total non-current liabilities 50,000,000.00 50,000,000.00
Current liabilities
Interest-bearing liabilities
Loans from financial institutions 15 40,000,000.00 40,000,000.00
Current loans from group companies 15 30,676,964.77 42,145,925.92
Trade payables and other current liabilities 16 7,624,072.19 4,397,813.98
Total current liabilities 78,301,036.96 86,543,739.90
Total liabilities 128,301,036.96 136,543,739.90
TOTAL EQUITY AND LIABILITIES 260,349,861.94 266,309,729.86
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Cash flow statement
EUR thousand
Note
January 1−December 31,
2024
January 1−December 31,
2023
Cash flow from operations
Profit for the period 8,226 6,017
Adjustments to profit for the period 18 -3,243 -2,843
Cash flow from operations before change in net working capital 4,983 3,174
Increase (-) or decrease (+) in trade and other receivables -109 -23
Increase (+) or decrease (-) in interest-free current liabilities 687 -597
Cash flow from operations before payments of financial items and income taxes 5,560 2,554
Paid and received interests and other financial items 3,977 1,535
Group contribution paid -1,125 −
Paid income taxes -329 -1,079
Cash flow from operations 8,083 3,010
Cash flow from investments
Capital expenditure 9, 10 -641 -478
Proceeds from sale of fixed assets 9, 10 2 −
Dividend income from subsidiaries 6 2,374 5,891
Cash flow from investments 1,735 5,413
Cash flow from financing
Change in current interest-bearing liabilities 15 -12,899 6,573
Change in non-current loan receivables 1,000 -16,537
Change in current loan receivables -10,404 19,639
Distribution of dividend 13 -5,769 -5,767
Cash flow from financing -28,072 3,908
Change in cash and cash equivalents -18,253 12,332
Cash and cash equivalents 1 January 53,688 42,441
Exchange difference on cash and cash equivalents 2,365 -1,084
Change in cash and cash equivalents -18,253 12,332
Cash and cash equivalents 31 December 37,800 53,688
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NOTE 1 Accounting policies
Suominen Corporation is a public limited liability company
organized under the laws of the Republic of Finland and
domiciled in Helsinki, Finland (address: Keilaranta 13 A,
02150 Espoo, Finland). Suominen’s shares are publicly
traded in Nasdaq Helsinki Ltd. (Mid Cap). Suominen
Corporation is the parent company of the Group.
The financial statements of Suominen Corporation
are prepared in accordance with Finnish Accounting
Standards (FAS). The consolidated financial statements of
Suominen Group are prepared in accordance with IFRS
Accounting Standards, and Suominen Corporation applies
in its separate financial statements the same accounting
principles as Suominen Group to the extent it is possible
within the framework of Finnish accounting practice. The
accounting principles of Suominen Group are presented in
the notes to the consolidated financial statements.
The main differences in the accounting principles
between Suominen Corporation’s separate financial
statements and Suominen Group’s consolidated financial
statements are presented beside.
Net sales
Net sales consist of sales of services to group companies
and of royalty income.
Financial assets and liabilities and
derivative instruments
Financial assets and liabilities are recognized at cost or at
cost less impairment losses.
Leases
Lease payments are recognized as lease expenses. Leasing
obligations are presented as contingent liabilities.
Debentures
Debentures are presented at nominal value in the balance
sheet, and periodized transaction costs are recognized in
prepayments.
Untaxed reserves
Untaxed reserves consist of a depreciation difference.
This difference between scheduled depreciation and
amortization and the depreciation and amortization
deducted in arriving to taxable profit is presented as
a separate item in the income statement and in the
balance sheet.
Group contributions
Group contributions given are presented as appropriations.
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NOTE 2 Other operating income
and expenses
EUR thousand
January 1−
December 31,
2024
January 1−
December 31,
2023
Other operating income
Operating subsidies and grants
received 276 140
Other operating income from
group companies 98 −
Other operating income 8 250
Total 382 390
Other operating expenses
Services purchased from group
companies -9,051 -7,426
Other operating expenses -27 0
Total -9,077 -7,426
NOTE 3 Personnel expenses
EUR thousand
January 1−
December 31,
2024
January 1−
December 31,
2023
Salaries -4,382 -4,021
Pension expenses -735 -673
Other personnel costs -170 -181
Total -5,286 -4,875
Average number of personnel 35 35
Number of personnel, end of
period 33 37
Management remuneration
Management remuneration is presented in Note 30 of
the consolidated financial statements.
NOTE 4 Audit fees
EUR thousand
January 1−
December 31,
2024
January 1−
December 31,
2023
Statutory audit -267 -159
Other services -20 -4
Total -287 -163
Ernst & Young Oy (EY) has been acting as the principal
auditor of the Group and the parent company since the
Annual General Meeting of 2015.
NOTE 5 Depreciation, amortization
and impairment
EUR thousand
January 1−
December 31,
2024
January 1−
December 31,
2023
Depreciation, amortization and
impairment by function
Cost of goods sold -959 -1,063
Sales and marketing expenses -442 -461
Research and development -105 -108
Administration expenses -1,120 -1,158
Total -2,626 -2,790
Depreciation, amortization and
impairment by asset category
Machinery and equipment -55 -40
Intangible rights -2,571 -2,750
Total -2,626 -2,790
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NOTE 6 Financial income and expenses
EUR thousand
January 1−December 31,
2024
January 1−December 31,
2023
Interest income from others 7,494 7,421
Dividend income from group companies 1,255 1,225
Other financial income from group companies 2,374 5,891
Other financial income from group companies 84 97
Net currency exchange differences 4,678 -2,649
Interest expenses to group companies -454 -525
Interest expenses to others -3,225 -3,294
Other financial expenses to others -1,239 -1,454
Total 10,967 6,712
NOTE 7 Appropriations
EUR thousand
January 1−December 31,
2024
January 1−December 31,
2023
Increase (-) or decrease (+) in cumulative depreciation difference 174 82
Given group contributions -3,635 -1,125
Total -3,461 -1,043
NOTE 8 Income taxes
EUR thousand
January 1−December 31,
2024
January 1−December 31,
2023
Income taxes for the financial year -1,665 -32
Withholding taxes and other direct taxes -3 −
Income taxes from previous years 31 -4
Total -1,637 -36
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NOTE 9 Intangible assets
EUR thousand
Intangible rights
Advance payments
and construction
in progress Total 2024 Total 2023
Acquisition cost January 1 21,258 36 21,295 21,565
Additions 78 32 109 151
Decreases and disposals -1,834 − -1,834 -422
Reclassifications 6 -6 − −
Acquisition cost December 31 19,507 62 19,570 21,295
Accumulated amortization January 1 -16,256 − -16,256 -13,928
Amortization for the period -2,571 − -2,571 -2,750
Decreases and disposals 1,834 − 1,834 422
Accumulated amortization December 31 -16,993 − -16,993 -16,256
Carrying amount December 31 2,514 62 2,576 5,038
NOTE 10 Tangible assets
EUR thousand
Land and
water areas
Machinery and
equipment
Other tangible
assets
Advance payments
and construction
in progress Total 2024 Total 2023
Acquisition cost January 1 0 308 31 668 1,007 676
Additions − 62 1 456 518 332
Decreases and disposals − -79 -13 − -92 -1
Reclassifications − 108 52 -160 − −
Acquisition cost December 31 0 398 70 964 1,433 1,007
Accumulated depreciation
January 1 − -243 -13 − -256 -217
Depreciation for the period − -50 -4 − -55 -40
Decreases and disposals − 77 13 − 90 1
Accumulated depreciation
December 31 − -216 -4 − -220 -256
Carrying amount December 31 0 182 66 964 1,213 751
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NOTE 11 Investments
EUR thousand
Shares in group
companies
Other
investments Total 2024 Total 2023
Carrying amount January 1 113,364 0 113,364 113,364
Carrying amount December 31 113,364 0 113,364 113,364
Group companies are presented in Note 8 of the consolidated financial statements.
Share of shares
and votes, %
Number
of shares
Nominal value
of shares,
EUR thousand
Carrying amount
of shares,
EUR thousand
Equity of
the company,
EUR thousand
Profit/loss in
the latest financial
statements,
EUR thousand
Kiinteistö Oy Killinpolku,
Virrat, Finland 25.0 1 8 0 N/A N/A
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NOTE 12 Receivables
EUR thousand
December 31, 2024 December 31, 2023
Non-current receivables from group companies
Interest-bearing receivables 89,221 86,478
Total 89,221 86,478
Total non-current receivables 89,221 86,478
Current receivables
Other receivables 121 79
Prepaid expenses and accrued income
Income taxes 233 1,449
Transaction costs of loans 624 735
Prepaid expenses 725 657
Total prepaid expenses and accrued income 1,582 2,841
Current receivables from group companies
Trade receivables 69 70
Interest-bearing receivables 14,404 4,000
Total 14,473 4,070
Total other current receivables 16,176 6,990
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NOTE 13 Equity
EUR thousand
December 31, 2024 December 31, 2023
Share capital January 1 and December 31 11,860 11,860
Share premium account January 1 and December 31 24,681 24,681
Reserve for invested unrestricted equity January 1 and December 31 75,692 75,692
Retained earnings January 1 16,339 16,088
Distribution of dividend -5,769 -5,767
Retained earnings December 31 10,569 10,321
Profit for the period 8,226 6,017
Equity December 31 131,028 128,571
Distributable funds
EUR December 31, 2024
Retained earnings December 31 10,569,264
Reserve for invested unrestricted equity 31.12. 75,692,336
Profit for the period 8,226,169
Distributable funds 94,487,769
Funds available for dividend distribution
EUR
Retained earnings December 31 10,569,264
Profit for the period 8,226,169
Funds available for dividend distribution 18,795,433
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NOTE 14 Share capital
Share capital and shares are presented in Note 13 of the
consolidated financial statements.
NOTE 15 Interest-bearing liabilities
EUR thousand
December 31,
2024
December 31,
2023
Non-current interest-bearing
liabilities
Debentures 50,000 50,000
Total non-current interest-bearing
liabilities 50,000 50,000
Current interest-bearing liabilities
Loans from financial institutions 40,000 40,000
Loans from group companies 30,677 42,146
Total current interest-bearing
liabilities 70,677 82,146
Total interest-bearing liabilities 120,677 132 146
Repayments of external non-current interest-bearing liabilities
2025 2026 2027 2028 2029
Debentures − − 50,000 − −
NOTE 16 Interest-free liabilities
EUR thousand
December 31,
2024
December 31,
2023
Current interest-free liabilities
Trade payables 1,744 1,245
Income tax liability 92 −
Other current liabilities 144 154
Total current interest-free liabilities 1,979 1,399
Accrued expenses
Accrued interest expenses 578 626
Accrued personnel expenses 894 894
Other accrued expenses 538 353
Total accrued expenses 2,010 1,874
Liabilities to group companies
Other liabilities to group companies 3,635 1,125
Total 3,635 1,125
Total current interest-free liabilities 7,624 4,398
NOTE 17 Contingent liabilities
EUR thousand
December 31,
2024
December 31,
2023
Guarantees
On behalf of group companies 11,558 12,888
On own behalf 84 −
Total 11,642 12,888
Guarantees on behalf of group companies are guarantees
given to suppliers and lessors.
Rental and leasing obligations
Falling due within next 12 months 333 221
Falling due later 1,212 1,360
Total 1,545 1,581
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NOTE 18 Adjustments to cash flow statement
EUR thousand
January 1−
December 31,
2024
January 1−
December 31,
2023
Adjustment to profit / loss for the period
Change in depreciation difference -174 -82
Group contributions 3,635 1,125
Financial income and expenses -10,967 -6,712
Income taxes 1,637 36
Depreciation and amortization 2,626 2,790
Total adjustments to profit for the period -3,243 -2,843
Company information
Homepage of reporting entity www.suominen.fi
LEI code of reporting entity 743700Z1BNFYR9PRDF52
Name of reporting entity or other means of identification Suominen Oyj
Domicile of entity Helsinki
Legal form of entity Public limited liability company
Country of incorporation Finland
Address of entity’s registered office Keilaranta 13 A, 02150 Espoo , Finland
Principal place of business Espoo
Description of nature of entity’s operations and principal activities Manufacturing of nonwovens as roll goods for wipes and
Name of parent entity Suomi nen Oyj
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Proposal by the board of
directors for distribution
of funds
The profit of the financial year 2024 of Suominen
Corporation, the parent company of Suominen Group,
was EUR 8,226,169.47. The funds distributable as dividends,
including the profit for the period, were EUR 18,795,433
and total distributable funds were EUR 94,487,769.
The Board of Directors proposes that no dividend shall
be distributed for the financial year 2024 and that the
profit shall be transferred to retained earnings.
There have been no significant changes in the
company’s financial position after the end of the
review period.
The financial statements of Suominen Corporation
are prepared in accordance with Finnish Accounting
Standards (FAS). The consolidated financial statements
of Suominen Group are prepared in accordance with
IFRS accounting standards. The financial statements
of Suominen Corporation as well as the consolidated
Charles Héaulmé
Chair of the Board
Aaron Barsness
Tommi Björnman
President and CEO
Andreas Ahlström
Nina Linander
Björn Borgman
Laura Remes
financial statements give a true and fair view of both
Suominen Corporation’s and the group companies’ assets,
obligations, financial position and profit or loss.
Suominen Corporation’s Report by the Board of
Directors includes a commentary which gives a true view
of the business development and result of Suominen
Corporation and its group companies as well as a
description of material business risks and uncertainties
and of the state of the company.
The sustainability report included in Suominen
Corporation’s Report by the Board of Directors is
prepared in accordance with Chapter 7 of the Finnish
Accounting Act and Article 8 of the taxonomy regulation
by European Union.
Espoo March 4th, 2025
201Suominen Annual Report 2024
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Report on the Audit of the Financial
Statements
Opinion
We have audited the financial statements of Suominen
Corporation (business identity code 1680141-9) for
the year ended 31 December, 2024. The financial
statements comprise the consolidated balance sheet,
income statement, statement of comprehensive income,
statement of changes in equity, statement of cash
flows and notes, including material accounting policy
information, as well as the parent company’s balance
sheet, income statement, statement of cash flows
and notes.
In our opinion
- the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU.
- the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for opinion
auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company
and group companies are in compliance with laws and
regulations applicable in Finland regarding these services,
and we have not provided any prohibited non-audit
services referred to in Article 5(1) of regulation (EU)
537/2014. The non-audit services that we have provided
have been disclosed in Note 22 to the consolidated
financial statements and Note 4 to the parent company
financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures,
including the procedures performed to address the
matters below, provide the basis for our audit opinion on
the accompanying financial statements.
We have also addressed the risk of management
override of internal controls. This includes consideration
of whether there was evidence of management bias that
represented a risk of material misstatement due to fraud.
Auditor’s report (Translation of the Finnish original)
To the Annual General Meeting of Suominen Corporation
202 Suominen Annual Report 2024
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KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Revenue recognition
We refer to the Group’s Note 18
Revenues of Suominen Group consist entirely of sales
of nonwovens to customers. Revenue from customer
contracts is recognised at a point in time, when the
control of the underlying products has been transferred
to the customer, typically at the time when the products
are shipped from Suominen’s factory.
Revenue is a key performance measure used by the
Group, which could create an incentive for premature
revenue recognition.
Revenue recognition was determined to be a key audit
matter and a significant risk of material misstatement
referred to in EU Regulation No 537/2014, point (c) of
Article 10(2) due to the risk related to incorrect timing
(cut-off) of revenue recognition.
Our audit procedures to address the risk of material
misstatement relating to revenue recognition, included,
among others:
- assessing the Group’s accounting policies over
- revenue recognition and comparing them with
- applicable accounting standards;
- assessing the revenue recognition process and
methodologies and testing controls where applicable;
- obtaining confirmations of accounts receivable
balances from customers and analyzed credit invoices
issued after the balance sheet date;
- testing revenue recognition on sample basis and
performing substantive analytical procedures including
sales cut-off procedures and
- assessing the Group’s disclosures in respect
of revenues.
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Responsibilities of the Board of Directors
and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view in
accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply
with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such
internal control as they determine is necessary to enable
the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible for
assessing the parent company’s and the Group’s ability
to continue as going concern, disclosing, as applicable,
matters relating to going concern and using the going
concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting
unless there is an intention to liquidate the parent
company or the Group or cease operations, or there is no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
- Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of
the parent company’s or the Group’s internal control.
- Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
- Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the parent company’s or the
Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or
the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events so that the financial
statements give a true and fair view.
- Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the Group as a basis for forming an opinion on the
204 Suominen Annual Report 2024
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group financial statements. We are responsible for the
direction, supervision and review of the audit work
performed for purposes of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant ethical
requirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were of
most significance in the audit of the financial statements
of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other reporting requirements
Information on our audit engagement
We were first appointed as auditors by the Annual
General Meeting on March 19, 2015, and our appointment
represents a total period of uninterrupted engagement of
10 years.
Other information
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of Directors
and the information included in the Annual Report, but
does not include the financial statements and our auditor’s
report thereon. We have obtained the report of the Board
of Directors prior to the date of this auditor’s report, and
the Annual Report is expected to be made available to us
after that date.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information identified
above and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect
to report of the Board of Directors, our responsibility
also includes considering whether the report of the
Board of Directors has been prepared in compliance with
the applicable provisions, excluding the sustainability
report information on which there are provisions in
Chapter 7 of the Accounting Act and in the sustainability
reporting standards.
In our opinion, the information in the report of the
Board of Directors is consistent with the information
in the financial statements and the report of the Board
of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the
sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki March 4, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Assurance report
on the Sustainability
Statement (Translation of the Finnish original)
To the Annual General Meeting of Suominen Corporation
We have performed a limited assurance engagement
on the group sustainability statement of Suominen
Corporation (1680141-9) that is referred to in Chapter 7 of
the Accounting Act and that is included in the report of the
Board of Directors for the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and
the evidence we have obtained, nothing has come to
our attention that causes us to believe that the group
sustainability statement does not comply, in all material
respects, with
1) the requirements laid down in Chapter 7 of the
Accounting Act and the sustainability reporting
standards (ESRS);
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
Suominen Corporation has identified the information for
reporting in accordance with the sustainability reporting
standards (double materiality assessment) and the tagging
of information as referred to in Chapter 7, Section 22 of
the Accounting Act.
Our opinion does not cover the tagging of the group
sustainability statement with digital XBRL sustainability tags
in accordance with Chapter 7, Section 22, Subsection 1(2),
of the Accounting Act, because sustainability reporting
companies have not had the possibility to comply with
that provision in the absence of the ESEF regulation or
other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability
statement as a limited assurance engagement in
compliance with good assurance practice in Finland
and with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) Assurance
Engagements Other than Audits or Reviews of Historical
Financial Information.
Our responsibilities under this standard are further
described in the Responsibilities of the Group Sustainability
Auditor section of our report.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Other Matter
We draw attention to the fact that the group sustainability
statement of Suominen Corporation that is referred to in
Chapter 7 of the Accounting Act has been prepared and
assurance has been provided for it for the first time for the
financial year 1.1.–31.12.2024. Our opinion does not cover
the comparative information that has been presented
in the group sustainability statement. Our opinion is not
modified in respect of this matter.
206 Suominen Annual Report 2024
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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 group sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires
the 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
Suominen Corporation are responsible for:
- the group sustainability statement and for its preparation
and presentation in accordance with the provisions
of Chapter 7 of the Accounting Act, including the
process that has been defined in the sustainability
reporting standards and in which the information for
reporting in accordance with the sustainability reporting
standards has been identified as well as the tagging of
information as referred to in Chapter 7, Section 22 of
the Accounting Act and
- the compliance of the group sustainability statement
with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament
and of the Council on the establishment of a framework
to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088;
- such internal control as the Board of Directors and the
Managing Director determine is necessary to enable
the preparation of a group sustainability statement that
is free from material misstatement, whether due to
fraud or error.
Inherent Limitations in the Preparation of
a Sustainability Statement
The preparation of the group sustainability statement
requires a materiality assessment from the company in
order to identify relevant disclosures. This significantly
involves management judgment and choices. Group
Sustainability reporting is also characterized by estimates
and assumptions, as well as measurement and estimation
uncertainty.
The determination of greenhouse gases is subject to
inherent uncertainty due to the incomplete scientific data
used to determine the emission factors and the numerical
values needed to combine emissions of different gases.
In addition, when reporting forward-looking information,
the company must make assumptions about possible
future events and disclose the company’s possible future
actions in relation to these events. The actual outcome
may be different because predicted events do not always
occur as expected.
Responsibilities of the Group Sustainability
Auditor
Our responsibility is to perform an assurance engagement
to obtain limited assurance about whether the group
sustainability statement is free from material misstatement,
whether due to fraud or error, and to issue a limited
assurance report that includes our opinion. Misstatements
can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably
be expected to influence the decisions of users taken on
the basis of the group sustainability statement.
Compliance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised) requires
that we exercise professional judgment and maintain
professional skepticism throughout the engagement.
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We also:
- Identify and assess the risks of material misstatement of
the group sustainability statement, whether due to fraud
or error, and obtain an understanding of internal control
relevant to the engagement in order to design assurance
procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s
internal control.
- Design and perform assurance procedures responsive
to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have
Been Performed
The procedures performed in a limited assurance
engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement.
The nature, timing and extent of assurance procedures
selected depend on professional judgment, including
the assessment of risks of material misstatement,
whether due to fraud or error. Consequently, the level of
assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement
been performed.
Our procedures included for ex. the following:
- We have interviewed the key persons responsible for
collecting and reporting the information included in the
group sustainability statement.
- Through interviews, we gained an understanding of
the group’s control environment related to the group
sustainability reporting process.
- We evaluated the implementation of the company’s
double materiality assessment process against the
requirements of ESRS standards and the compliance
of the information provided for the double materiality
assessment with ESRS standards.
- We assessed whether the group sustainability statement
in material respect meets the requirements of ESRS
standards for material sustainability topics:
- We have tested the accuracy of the information
presented in the group sustainability statement by
comparing the information on a sample basis with
supporting company documentation.
- We have on a sample basis performed analytical
assurance procedures and related inquiries,
recalculation and inspected documentation, as well as
tested data aggregation to assess the accuracy of the
group sustainability statement.
- We gained an understanding of the process by which a
company has defined taxonomy-eligible and taxonomy-
aligned economic activities and evaluate the regulatory
compliance of the information provided.
Helsinki 4.3.2025
Ernst & Young Oy
Authorized Sustainability Audit Firm
Toni Halonen
Authorized Sustainability Auditor
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We have performed a reasonable assurance engagement
on the financial statements 743700z1bnfyr9prdf52-
2024-12-31-fi.zip of Suominen Corporation (y-identifier:
1680141-9) that have been prepared in accordance with
the Commission’s regulatory technical standard for the
financial year ended 31.12.2024.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the company’s report
of Board of Directors and financial statements (the ESEF
financial statements) in such a way that they comply with
the requirements of the Commission’s regulatory technical
standard. This responsibility includes:
- preparing the ESEF financial statements in XHTML
format in accordance with Article 3 of the Commission’s
regulatory technical standard
- tagging the primary financial statements, notes and
company’s identification data in the consolidated
financial statements that are included in the ESEF
financial statements with iXBRL tags in accordance
with Article 4 of the Commission’s regulatory technical
standard and
- ensuring the consistency between the ESEF financial
statements and the audited financial statements
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial
statements in accordance the requirements of the
Commission’s regulatory technical standard.
Auditor’s Independence and
Quality Management
We are independent of the company in accordance with
the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The firm applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance
with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7,
Section 8 of the Securities Markets Act, provide assurance
on the financial statements that have been prepared in
accordance with the Commission’s technical regulatory
standard. We express an opinion on whether the
consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material
respects, in accordance with the requirements of Article 4
of the Commission’s regulatory technical standard.
Independent Auditor’s
Report on the ESEF
Consolidated Financial
Statements of Suominen
Corporation (Translation of the Finnish original)
To the Board of Directors of Suominen Corporation
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Our responsibility is to indicate in our opinion to what
extent the assurance has been provided. We conducted
a reasonable assurance engagement in accordance
with International Standard on Assurance Engagements
(ISAE) 3000.
The engagement includes procedures to obtain
evidence on:
- whether the primary financial statements in the
consolidated financial statements that are included
in the ESEF financial statements have been tagged, in
all material respects, with iXBRL tags in accordance
with the requirements of Article 4 of the Commission’s
regulatory technical standard and
- whether the notes and company’s identification data in
the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in
all material respects, with iXBRL tags in accordance
with the requirements of Article 4 of the Commission’s
regulatory technical standard and
- whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature, timing and extent of the selected procedures
depend on the auditor’s judgement. This includes an
assessment of the risk of material deviations due to fraud
or error from the requirements of the Commission’s
technical regulatory standard.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the
Securities Markets Act is that the primary financial
statements, notes and company’s identification data in
the consolidated financial statements that are included in
the ESEF financial statements of Suominen Corporation
743700z1bnfyr9prdf52-2024-12-31-fi.zip for the financial
year ended 31.12.2024 have been tagged, in all material
respects, in accordance with the requirements of the
Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial
statements of Suominen Corporation for the financial
year ended 31.12.2024 has been expressed in our auditor’s
report 4.3.2025. With this report we do not express
an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki 28.3.2025
Ernst & Young Oy
Authorized Public Accountant
Toni Halonen
Authorized Public Accountant
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Key ratios
2024 2023 2022
Net sales, EUR million 462.3 450.9 493.3
Comparable operating profit, EUR million -1.4 -2.8 -4.2
% of net sales -0.3 -0.6 -0.8
Operating profit, EUR million, -1.3 -7.5 -9.0
% of net sales -0.3 -1.7 -1.8
Comparable EBITDA, EUR million 17.0 15.8 15.3
% of net sales 3.7 3.5 3.1
EBITDA, EUR million 17.2 11.2 14.3
% of net sales 3.7 2.5 2.9
Profit before income taxes, EUR million -5.3 -13.5 -11.9
% of net sales -1.2 -3.0 -2.4
Profit for the period, EUR million -5.3 -12.8 -13.9
% of net sales -1.1 -2.8 -2.8
Cash flow from operations, EUR million 3.9 30.7 14.0
Total assets, EUR million 310.4 316.4 343.4
Return on equity (ROE), % -4.4 -9.6 -8.8
Return on invested capital (ROI), % -0.7 -4.1 -4.2
Equity ratio, % 37.9 39.5 42.5
Interest-bearing net debt, EUR million 60.8 44.1 54.6
Capital employed, EUR million 178.0 168.4 199.8
Gearing, % 51.7 35.3 37.4
Gross capital expenditure, EUR million 16.0 11.2 9.7
% of net sales 3.5 2.5 2.0
Depreciation, amortization and impairment losses, EUR million -18.4 -18.7 -23.2
Expenditure on research and development, EUR million 4.0 3.9 3.5
as % of net sales 0.9 0.9 0.7
Average number of personnel (FTE - full time equivalent) 689 682 707
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Calculation of key ratios
Some of Suominen’s key ratios are alternative performance measures. An alternative performance measure is a key ratio
which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures
provides useful information for example to investors regarding the Group’s financial and operating performance and
makes it easier to make comparisons between the reporting periods.
Operating profit and comparable operating profit
Operating profit, or earnings before interest and taxes (EBIT) is an important measure of profitability as by ignoring
income taxes and financial items it focuses solely on the company’s ability to generate profit from operations.
Operating profit is presented as a separate line item in the consolidated statement of profit or loss.
Operating profit (EBIT) = Profit before income taxes + net financial expenses
Comparable operating profit
(comparable EBIT)
=
Profit before income taxes + net financial expenses,
adjusted with items affecting comparability
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating
profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to
affect comparability between reporting periods. These items include, among others, impairment losses or reversals of
impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets
and restructuring costs. In 2024 and 2023, items affecting comparability of result were expenses and impairment losses
arising from the closure of the production lines in Italy. In addition, in 2024 the items affecting comparability included
restructuring expenses.
EUR thousand 2024 2023
Operating profit -1,257 -7,517
+ Dismissal costs affecting comparability 1,605 2,207
+ Restoration costs affecting comparability / reversals of restoration
provisions -1,435 2,344
+ Other costs affecting comparability 4 116
+ Other operating income, affecting comparability -305 −
+ Impairment losses of property, plant and equipment,
affecting comparability of result − 8
+ Impairment losses of right-of-use assets, affecting comparability of result 3 108
+ Impairment losses of inventories and reversals of the impairment losses,
affecting comparability of result -41 -16
Comparable operating profit -1,426 -2,750
Reference
Consolidated statement of profit or loss
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EUR thousand 2024 2023
Operating profit -1,257 -7,517
+ Depreciation, amortization and impairment losses 18,431 18,680
EBITDA 17,174 11,163
EBITDA 17,174 11,163
+ Dismissal costs affecting comparability 1,605 2,207
+ Restoration costs affecting comparability / reversals of restoration
provisions -1,435 2,344
+ Other costs affecting comparability 4 116
+ Other operating income, affecting comparability -305 −
+ Impairment losses of inventories and reversals of the impairment losses,
affecting comparability of result -41 -16
Comparable EBITDA 17,001 15,813
Reference
Consolidated statement of profit or loss
Note 24
EBITDA and comparable EBITDA
EBITDA is an important measure that focuses on the operating performance excluding the effect of depreciation
and amortization, financial items and income taxes, in other words what is the margin on net sales after deducting
operating expenses.
In order to improve the comparability of result between reporting periods, Suominen presents comparable EBITDA as
an alternative performance measure. EBITDA is adjusted with material items that are considered to affect comparability
between reporting periods. These items include, among others, gains or losses from the sales of property, plant
and equipment or intangible assets or other assets and restructuring costs. In 2024 and 2023, the items affecting
comparability of EBITDA were the expenses and impairment losses of inventory arising from the closure of the
production lines in Italy. In addition, in 2024 the items affecting comparability included restructuring expenses.
EBITDA = EBIT + depreciation, amortization and impairment losses
Comparable EBITDA =
EBIT + depreciation, amortization and impairment losses,
adjusted with items affecting comparability
Gross capital expenditure
Suominen considers gross capital expenditure as a relevant measure in order to understand for example how the
Group maintains and renews its production machinery and facilities. The gross investments do not include increases in
right-of-use assets.
Gross capital expenditure includes also capitalized borrowing costs.
EUR thousand 2024 2023
Increases in intangible assets 109 169
Increases in property, plant and equipment 15,895 11,054
Gross capital expenditure 16,004 11,223
Reference
Note 6
Note 7
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Cash and cash equivalents
Cash and cash equivalents = Cash + other financial assets
Interest-bearing net debt
Suominen considers interest-bearing net debt to be an important measure for investors to be able to understand the
Group’s indebtedness. It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized
cost but also at nominal value gives relevant additional information to the investors.
Interest-bearing net debt =
Interest-bearing liabilities at nominal value - interest-bearing
receivables - cash and cash equivalents
EUR thousand 2024 2023
Interest-bearing liabilities 101,760 102,278
Tender and issuance costs of the debentures 394 551
Cash and cash equivalents -41,340 -58,755
Interest-bearing net debt 60,815 44,074
Interest-bearing liabilities 101,760 102,278
Tender and issuance costs of the debentures 394 551
Nominal value of interest-bearing liabilities 102,154 102,828
Reference
Note 14
Consolidated statement of financial position
Note 14
Note 14
Return on equity (ROE), %
The return on equity is one of the most important profitability ratios used by owners and investors. The ratio measures
the ability of a company to generate profits from its shareholders’ investments in the company and it defines the yield
on the company’s equity during the reporting period.
Return on equity (ROE), % =
Profit for the reporting period (rolling 12 months) x 100
Total equity attributable to owners of the parent (quarterly average)
EUR thousand 2024 2023
Profit for the reporting period (rolling 12 months) -5,290 -12,786
Total equity attributable to owners of the parent December 31, 2023 / 2022 124,912 145,916
Total equity attributable to owners of the parent March 31, 2024 / 2023 126,045 140,131
Total equity attributable to owners of the parent June 30, 2024 / 2023 118,081 127,236
Total equity attributable to owners of the parent September 30, 2024 / 2023 110,781 130,283
Total equity attributable to owners of the parent December 31, 2024 / 2023 117,608 124,912
Average 119,485 133,695
Return on equity (ROE), % -4.4 -9.6
Reference
Consolidated statement of profit or loss
Consolidated statement of financial position
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Invested capital
Invested capital =
Total equity + interest-bearing liabilities
- cash and cash equivalents
EUR thousand 2024 2023
Total equity attributable to owners of the parent 117,608 124,912
Interest-bearing liabilities 101,760 102,278
Cash and cash equivalents -41,340 -58,755
Invested capital 178,028 168,435
Reference
Consolidated statement of financial position
Note 14
Consolidated statement of financial position
Return on invested capital (ROI), %
Return on invested capital is one of the most important key ratios. It measures the relative profitability of the company,
ie. the yield on the capital invested in the company.
Return on invested capital (ROI), % =
Operating profit (rolling 12 months) x 100
Invested capital, quarterly average
EUR thousand 2024 2023
Operating profit (rolling 12 months) -1,257 -7,517
Invested capital December 31, 2023 / 2022 168,435 199,773
Invested capital March 31, 2024 / 2023 174,706 194,290
Invested capital June 30, 2024 / 2023 174,218 182,005
Invested capital September 30, 2024 / 2023 173,650 181,914
Invested capital December 31, 2024 / 2023 178,028 168,435
Average 173,807 185,283
Return on invested capital (ROI), % -0.7 -4.1
Reference
Consolidated statement of profit or loss
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Equity ratio, %
Equity ratio is an important key ratio as it measures the solidity of the company, the company’s tolerance for losses
and ability to cover its long-term commitments. The performance measure shows how much of the company’s assets
are financed with equity. The equity creates a buffer against potential losses, and equity ratio represents the level of
this buffer.
Equity ratio, % =
Total equity attributable to owners of the parent x 100
Total assets - advances received
Gearing, %
Gearing represents the ratio between the equity invested by the owners of the company and the interest-bearing
liabilities borrowed from financiers. Gearing is an important performance measure in assessing the financial position
of a company. A high gearing is a risk factor which might limit the possibilities for growth of a company and narrow its
financial freedom.
Gearing, % =
Interest-bearing net debt x 100
Total equity
EUR thousand 2024 2023
Total equity attributable to owners of the parent 117,608 124,912
Total assets 310,376 316,434
Advances received -31 -104
310,345 316,330
Equity ratio, % 37.9 39.5
EUR thousand 2024 2023
Interest-bearing net debt 60,815 44,074
Total equity attributable to owners of the parent 117,608 124,912
Gearing, % 51.7 35.3
Reference
Consolidated statement of financial position
Consolidated statement of financial position
Note 16
Reference
Consolidated statement of financial position
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Information for shareholders
Financial calendar
Suominen will publish its Financial Statements
Release, Half Year Financial Report and two
Interim Reports in 2025 as follows:
March 5, 2025 Financial Statements Release
for 2024
May 7, 2025 Interim Report for
January–March 2025
August 7, 2025 Half-Year Financial Report for
January–June 2025
October 29, 2025 Interim Report for
January–September 2025
The Annual General Meeting
Notice is given to the shareholders of Suominen
Corporation to the Annual General Meeting to be held
on April 25, 2025, at 12:00 noon (EEST) at Messukeskus
(Holiday Inn Helsinki – Expo entrance) at the address
Rautatieläisenkatu 3, 00520, Helsinki, Finland. The
reception of persons who have registered for the meeting
will commence at 11:00 a.m. After the meeting, coffee
is served, and the shareholders have the opportunity to
meet the company’s management. Notice to the Annual
General Meeting has been announced as a stock exchange
release on March 5, 2025. All materials to the Annual
General meeting are available on the company’s website
www.suominen.fi/agm.
Shareholders who are registered in the shareholders’
register of Euroclear Finland Ltd. on the record date of the
General Meeting April 11, 2025 are entitled to participate
in the General Meeting. Any shareholder whose company
shares are recorded in their personal Finnish book-entry
account is automatically included in the company’s
shareholders’ register.
Registration for the General Meeting commenced on
March 12, 2024 at 4:00 p.m. (EET). A shareholder who is
registered in the company’s shareholders’ register and
wishes to participate in the General Meeting must register
for the meeting no later than April 17, 2025, by 4:00 p.m.
(EEST), by which time the registration must be received. A
shareholder can register for the General Meeting:
a) Via the company’s website www.suominen.fi/agm.
Electronic registration requires strong identification of
the shareholder or their legal representative or proxy
with a Finnish, Swedish, or Danish bank ID, or a mobile
certificate.
b) By e-mail or mail. A shareholder registering for
the General Meeting by e-mail or regular mail
shall submit a registration and advance voting
form which is available on the company’s website
www.suominen.fi/agm, or equivalent information to
the address agm@innovatics.fi, or by regular mail to
Innovatics Oy to the address Innovatics Oy, General
Meeting / Suominen Corporation, Ratamestarinkatu 13
A, 00520 Helsinki, Finland.
The shareholder and their representative are required to
provide necessary information, such as the shareholder’s
name, date of birth or business ID, phone number and/
or e-mail, address, the name of any assistant or proxy
representative and the proxy representative’s date of birth,
phone number and/or e-mail. The personal data provided
to Suominen Corporation is only used in connection with
the General Meeting and the processing of the necessary
registrations related thereto.
The shareholder and their representative or proxy
holder must be able to prove their identity and/or right of
representation at the meeting.
Further information on registration and advance voting
is available to all shareholders on the company’s website
www.suominen.fi/agm.
217Suominen Annual Report 2024
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Proposal on distribution of funds
The Board of Directors proposes to the Annual General
Meeting that no dividend be paid based on the adopted
balance sheet regarding the financial year of 2024 and
that the distributable funds be left in the company’s
unrestricted equity.
Investor relations
Janne Silonsaari, CFO
puh. +358 50 409 9264
janne.silonsaari@suominencorp.com
Request for management appointments:
Kati Junnila, Executive Assistant
tel. +358 10 214 3268
kati.junnila@suominencorp.com
Silent period
Suominen observes a 30-day silent period prior to
the publishing of its financial result. During this time
Suominen does not comment on the Company’s financial
performance, markets, its future outlook or business
prospects. During this time Suominen’s management
and other employees do not meet with representatives
of capital markets or financial media. Exceptions to this
principle are the General Meetings of Shareholders, which
may be held during a silent period, and the publication of
a stock exchange release required by regulations and the
communications relating thereto. In case of an event that
requires disclosure during a silent period, Suominen shall
publish the information without delay in accordance with
the duty of disclosure and applicable regulations and shall
determine on a case-by-case basis whether interviews
will be given on the matter while limiting any such
communication to the event in question. The IR calendar
available on the Company’s website includes the dates of
the silent periods.
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SUOMINEN CORPORATION
Head Office
Keilaranta 13 A
FI-02150 Espoo
Tel. +358 10 214 300
communications@suominencorp.com
Detailed contact information
to Suominen locations worldwide
is available at www.suominen.fi
www.suominen.fi
X: @SuominenCorp
LinkedIn: Suominen Corporation