2016 Responsibility report

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Responsibility at Finavia A part of society Safety Staff wellbeing Environmental responsibility GRI Development of Helsinki Airport The large-scale Helsinki Airport development programme is proceeding according to plan. The year 2016 saw the start of the work to enlarge the non-Schengen terminal, in which a novel contract model is used. Finavia’s objective is to strengthen the position of Helsinki Airport among international airports and as an important hub between Europe and Asia. With this in mind, Finavia launched an ambitious investment programme totalling EUR 900 million in 2013 to enlarge the airport and improve its operations by the year 2020. As part of the programme, Finavia intends to enlarge the non-Schengen terminal of Helsinki Airport by 103,000 square metres. The aim is to increase transfer capacity and improve service levels. When the work is complete, Helsinki Airport will be able to serve more than 20 million passengers each year. In 2016, Finavia allocated a total of about EUR 105 million to the development programme (excluding operative investments). New investment decisions totalling to about EUR 124 million were also made during the year. As part of the development programme, Finavia has established direct contractual relationships with building contractors, planning and building consultancy firms, as well as suppliers of passenger control systems, passenger bridges and baggage handling systems. In 2016, we entered into a framework agreement with Thyssen- Krupp Airport Systems, which will supply new types of mobile passenger bridges for the enlarged terminal. The extension of the terminal involves a large number of partners The Helsinki Airport development programme is on schedule. The most important step in 2016 was beginning the construction of the terminal extension. The year also saw the completion of the extension of the parking garage P5, while new passenger waiting areas and departure gates were also opened. The work on the south wing extension of the terminal will be completed in 2017, when a new terminal section with new passenger bridges will be put into use. There are two main contractors in the project. The terminal extension is being carried out as a project management contract with Lemminkäinen, while the apron contract will be carried out as an alliance project, in cooperation with Destia. The total value of the contracts is about EUR 260 million. The work is carried out in stages and the cost, timetable, safety and quality targets laid out for the partners, as well as the incentives for them are incorporated in the contracts. Because of the staged nature of the programme, Finavia is able to conclude new investment contracts with its partners as the work progresses. Read more about the economic impacts of the Helsinki Airport development programme. In 2016, we spent about EUR 105 million in investments for the development programme (excluding operational investments). Responsibility indicators have also been set for the programme In the management of the Helsinki Airport development programme, Finavia will pay attention to the following responsibility criteria and the indicators set for them: Social responsibility • Safety: Occupational health and safety, aviation safety, safety of the individuals using the airport and working there • Disruption caused to passengers during the work at the terminal • Air traffic delays • Combating the grey economy, requirements to subcontractors (max. three contract chains) • Employment impacts (during the work, permanent impacts) Financial responsibility • Domestic content • Tax footprint • Central government revenue • Description of the value chain • Purchases Environmental responsibility • Soil recycling • Soil findings (contaminated or valuable soil) • Run-off waters (impact on groundwater) • Energy consumption • Waste • Biodiversity • Noise control • Construction materials • Energy solutions Responsibility report 2016 14
Responsibility at Finavia A part of society Safety Staff wellbeing Environmental responsibility GRI Procurement principles Responsibility guides Finavia’s cooperation with its suppliers and partners. We aim for open and efficient cooperation, which is beneficial to both parties. T Finavia’s network of suppliers and partners is crucial for attaining our business objectives. Procurement responsibilities and procedures are specified in the procurement policy. We expect our suppliers to abide by applicable laws, regulations and good trading practices, as well as sustainable development and responsibility principles. All our procurement is subject to tendering and complies with the Utilities Act (349/2007) and related decree (614/2007). Contracting and service procurement adheres to the Act on the Contractor’s Obligations and Liability when Work is Contracted Out. One of the Act’s goals is to combat the black economy. Procurement also observes good trading practices, the EU Regulation provisions regarding the ‘Known Supplier’ status and the Finavia Code of Conduct. We expect our suppliers to observe applicable laws, regulations and good trading practices, as well as sustainable development principles and responsibility. Quality monitored throughout contract period We address the technical or service level requirements with the supplier during tendering. Price and quality are often graded separately, and we underline one of them, depending on the type of the procurement. In line with Finavia’s strategy, the emphasis in procurement has been on purchases of materials and services connected with the customer path. We focus specifically on service quality, definition of service levels, cost-efficiency and responsibility in purchases along the customer path. In 2016, we placed a great deal of emphasis on environmental responsibility criteria applied to purchases. We started preparing our Supplier Code of Conduct and worked on our environmental responsibility criteria in areas such as IT purchases. The purchases of the new terminal signs and displays at Helsinki Airport were the main area in which the criteria were applied during the year. Centralised and localised procurement Our airport network covers a large geographical area, and procurement is both centralised and localised. Tendering is coordinated by the Procurement Department: it defines the procurement procedure with the businesses and implements tendering to find the best and most suitable contract suppliers. A lighter version of the supplier contract is signed with local suppliers in the case of procurements of minor monetary value. Environmental impacts of Finavia’s purchases Finavia is constantly working to expand the scope of responsible purchases and to apply more specific responsibility criteria to its purchases. Purchases and the management of the supply chain are central to responsibility at Finavia. With the aim of developing the area of responsible purchases, Finavia has prepared an action plan until the year 2020, which covers all areas of responsibility: economic responsibility, environmental responsibility and social responsibility. In 2016, Finavia introduced more detailed criteria for environmentally responsible purchases as part of a more comprehensive action plan. During the year in review, the criteria were applied to personnel transport and to the purchases of the video walls and displays in the new terminal section at Helsinki Airport. Next year, the criteria will be extensively applied to IM purchases in particular. In 2017, our aim is to purchase on a more centralised basis and identify the purchases with the most significant impacts in such areas as electricity and water consumption. Life-cycle costs will be a consideration in all Finavia’s purchases. We will also support Finavia’s targets, for example, in the reduction in the amount of waste,in addition, we will require that our suppliers have environmental programmes and will engaged in a closer dialogue with our suppliers on environmental targets. In 2017, Finavia will use the following indicators to assess the environmental impacts of its purchases • Carbon dioxide emissions of the business passengers using our airports • The number of competitive tendering processes in which consideration has been given to life-cycle costs of the purchases • Consideration of environmental impacts in the ABC analysis used for assessing the criticality of purchases • Summary of purchases in which environmental factors have been a consideration Responsibility report 2016 15
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2016 Responsibility report

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