Task Force on Climate-related Financial Disclosures

• The sustainability governance and management model, including climate-related topics, is defined in Sanoma’s Sustainability and Human Rights Policy. From the sustainability governance perspective, Sanoma’s administrative body is the Board of Directors, the management body the President and CEO supported by the EMT, and the supervisory body the Board of Directors’ Audit Committee.
• Sanoma’s Board of Directors is responsible for the approval of strategic sustainability guidelines and sustainability management model, the appropriate arrangement of the control of the sustainability reporting and its assurance, the oversight of sustainability-related impacts, risks and opportunities, the approval of the Sustainability and Human Rights Policy, the approval of the statutory Sustainability Statement, and the review of the double materiality assessment process and the approval of its outcomes.
• The Audit Committee acts as Sanoma’s Sustainability Committee and supports the Board in overseeing sustainability-related impacts, risks and opportunities. The Audit Committee reviews Sanoma’s sustainability progress and monitors the implementation of the Sustainability Strategy through regular updates it receives from the management.

• The President and CEO is responsible for the implementation of strategic sustainability guidelines. The EMT supports the President and CEO in assessing and validating sustainability-related impacts, risks and opportunities and outlining Sanoma’s strategic approach to sustainability, managing sustainability development, and monitoring regularly how sustainability is reflected in the business units. The effectiveness of the sustainability-related policies, actions, metrics and targets are integrated into the sustainability scorecard that is monitored annually by the Board of Directors, Audit Committee and the EMT.
• The Chief Financial Officer (CFO), who is a member of the EMT, is responsible for sustainability on the management level.
• The Chief Sustainability Officer (CSO), reporting to the CFO, together with the Sustainability Managers leads the planning and implementation of Sanoma's Sustainability Strategy. In addition, they support the Group and SBUs in target achievement, project implementation and communications. The CSO also supports the Group's overall risk management process by monitoring emerging risks, including those related to climate change. In cooperation with the business units, procurement and other internal and external stakeholders, the CSO controls sustainability and climate-related risks.
• The Chief Procurement Officer (CPO) is responsible for implementing the Sanoma Sustainability Strategy throughout the supply chain. Approximately 95% of Sanoma’s emissions result from the value chain and supplier engagement and selection plays a key role in reaching Sanoma's targets. The CPO assesses and manages climate-related risks and opportunities together with the Procurement Management Team, the CSO and Sustainability Team. Together, they collect emission data annually from the suppliers for Scope 3 emission calculations and engage with suppliers to communicate Sanoma's climate targets and ensure cooperation to meet targets. 
• The Sustainability and Ethics Working Group consists of selected members across the Group representing all material
  sustainability topics. It evaluates sustainability-related impacts, risks and opportunities, monitors the implementation of the
  Sustainability Strategy and coordinates related development work and actions as well as ethics and compliance.

• Our commitment to transparency means we annually participate and report on our climate-related risks and opportunities in our CDP disclosure. We publish our submission for the CDP Climate and Forest investor questionnaires each year. Sanoma’s latest response is available in the Sustainability and ESG reporting section.
• Climate-related risks and opportunities affect Sanoma’s business primarily through resource use, energy consumption and the supply chain, with physical risks such as flooding potentially disrupting operations and transition risks (e.g. regulation and input availability) influencing costs and demand.
• To mitigate climate risks, these factors are integrated into Sanoma’s strategy and business model through its Sustainability Strategy and climate transition plan, including alignment with a 1.5°C pathway, emissions reduction targets and increasing digitalisation of products.

• Protecting the climate and environment is one of the six key themes of the Sustainability Strategy. Sanoma’s climate targets have been validated by
  the Science Based Targets initiative (SBTi), confirming Sanoma’s emission reduction targets are aligned with the SBTi 1.5-degree criteria to limit global warming in line with the Paris Agreement. Learn more about our targets in Vital environment.

• Sanoma identifies and assesses climate-related risks and opportunities through its double materiality assessment, which is aligned with ESRS requirements and integrated with its enterprise risk management processes, covering own operations as well as upstream and downstream value chains.
• The assessment includes both physical and transition risks, analysed annually across short-, medium- and long-term horizons, supported by climate scenario analysis (e.g. 1.5°C and higher warming scenarios) to evaluate potential impacts on operations, supply chain and market demand.
• Risks and opportunities are prioritised based on their financial significance, likelihood and severity, and embedded into Sanoma’s sustainability management model, which ensures that actions, KPIs and targets are defined and monitored.
• Management of climate-related risks is integrated into the implementation of Sanoma's Sustainabilioty Strategy, including measures such as regulatory compliance, supplier engagement, emissions reduction actions, and operational risk mitigation.

• Sanoma manages climate-related risks through its sustainability management model, where mitigation actions are defined, implemented and monitored based on the results of the double materiality assessment. This includes measures such as ensuring regulatory compliance, reducing emissions, engaging suppliers to lower value chain impacts, and implementing operational controls (e.g. response plans and insurance) to address physical risks.
• The processes for identifying, assessing and managing climate-related risks are fully integrated into Sanoma’s overall risk management and strategy processes, combining the double materiality assessment with the enterprise risk management framework.
• Climate risks are assessed using consistent criteria (e.g. likelihood, financial significance and time horizon) and embedded into decision-making through governance structures, including oversight by the Executive Management Team, Audit Committee and Board.
• Our sustainability-related risks and the process  for identifying, assessing and managing these risks are described in more detail in our Sustainability Statement and our CDP Climate reporting. These document are available in the Sustainability and ESG reporting section. 

• Sanoma calculates its emissions according to the GHG protocol for Scopes 1, 2 and 3 and uses this information to assess climate-related risks as well as to reduce GHG emissions. In both own operations and the value chain, increasing stakeholder interest and regulation creates both risks and opportunities.
• Approximately 95% of Sanoma’s emissions result from the supply chain (Scope 3) and active supplier cooperation is key in reducing emissions. These risks mainly relate to carbon pricing mechanisms and our ability to control the use of energy and emissions of third-party suppliers. In its own operations, Sanoma continues to invests in energy and material efficiency as well as use of carbon neutral energy. Sanoma uses purchased electricity in its printing and office facilities, as well as for digital services and technological solutions, and it may not be able to directly impact the mix of energy sources used.
• A full disclosure of Sanoma’s Scope 1, 2 and 3 emissions can be found in the latest Sustainability Statement.

Vital environment is one of the six key themes of Sanoma’s Sustainability Strategy. The Science Based Targets initiative (SBTi) has approved Sanoma’s near-term science-based emission reduction targets for own operations (Scope 1 and 2) and value chain (Scope 3). This validation confirms that Sanoma’s climate strategy and business model are compatible with the transition to a sustainable economy and limiting of global warming to 1.5°C in line with the Paris Agreement.

• Our target is to reduce Scope 1 and 2 in our own operations’ GHG emissions by 42% by 2030 from a 2021 base year. 
• Our target is to reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel and energy related activities and upstream transportation and distribution by 38% by 2030 from a 2021 base year.

Learn more about our targets and performance in Vital environment.