Environmental and corporate responsibility

Environmental responsibility

Responsibility covers the entire supply chain
Tulikivi’s operations are based on the efficient use of its own soapstone reserves and secondary industrial streams in Finland. We operate systematically to protect the envi-ronment and ensure the sustainable use of natural resources. All Tulikivi employees take environmental matters into account in their daily work and act responsibly for the benefit of the environment.

Tulikivi is committed to the goals of the UN 2030 Agenda for Sustainable Develop-ment. Tulikivi has been granted an ISO 9001 quality certificate, and we intend to in-troduce the ISO 14001 environmental management system in 2022.

The goal of our environmental work is to improve the company’s ability to use natural resources sparingly, and to manage processes and products in a way that minimises their impact on the environment. We also work to minimise environmental loads at every stage of a product’s lifecycle. In the production chain, materials, energy con-sumption and transport together account for a significant proportion of the environ-mental impact of our products.

We also take environmental issues and potential risks into account in all of our agree-ments. We increase our suppliers’ awareness of their environmental responsibilities and help them act in accordance with the principles of sustainable development. Our goal is to ensure that our products are as durable as possible and that they are safe to use.

Fireplaces are an important part of the climate solution
Nowadays, climate change is a big driver in everything people do. We continuously de-velop our operations from the perspective of mitigating climate change and adapting to it. In order to achieve the EU’s climate goals, fossil fuels must be replaced. Fireplac-es can play a key role in the climate solution. Our raw materials are sourced where we manufacture our products, and this is a good starting point for minimising our carbon footprint. Also, transporting products from the factory to customers usually causes relatively few emissions.

The use of bioenergy-consuming fireplaces as a heating source instead of electricity, heating oil or gas helps to cut the CO2 emissions of energy generation, thus offsetting the carbon footprint of fireplace production. Tulikivi’s fireplaces already beat the strict emissions standards of the Ecodesign Directive, and we are continuing our research into even cleaner combustion.

The raw materials used at Tulikivi’s production plants include soapstone, natural stone and ceramics. In quarrying and the related operations Tulikivi complies with the best environmental practices identified in the production of natural stone products. Tulikivi monitors the environmental impact of quarrying and complies with the officially ap-proved supervision programmes. Naturally, all of Tulikivi Corporation’s operational quarries and production plants have valid mining and environmental permits.

Tulikivi has drawn up an operating principles document for its quarries, on the basis of which we conduct regular analyses of operating risks, taking into account both safety and environmental considerations. Landscaping is carried out as part of normal quar-rying operations and at quarries that have been discontinued.

No substances that are hazardous to the environment are used in the processing of soapstone, and none arise in the manufacturing process. The production plants use closed process water circulation. We actively seek applications for secondary produc-tion streams.

Up to 80 per cent recycled material
To improve material efficiency, Tulikivi utilises by-products from other parts of the ce-ramics industry as a raw material for its ceramic fireplaces. In the Kermansavi fireplace collection that was renewed in 2021, the proportion of recycled materials will increase to approximately 80 per cent of the raw materials used in the fireplace bodies. The materials and components used in the products are tested regularly and the products must pass type approval tests. Tulikivi’s soapstone has been approved as a material that can come into contact with food, for example.

All of Tulikivi’s sites have a waste sorting system, the purpose of which is to reduce the amount of landfill waste and to reuse as much waste as possible in energy production and for other purposes. Recyclable waste (e.g. board and paper) is sent for recycling via normal waste management. Tulikivi has joined the Environmental Register of Pack-aging PYR Ltd and is a member of SELT (Electrical and Electronic Equipment Producers’ Association).

We regularly monitor and assess the environmental impact of our operations. In 2022, we will determine the carbon footprint of our own operations in greater detail and de-fine a timetable for achieving carbon neutrality. In 2021, we minimised the use of heating oil at the Juuka plants and offices by introducing heat pumps as the main sys-tem of heating.

Social responsibility

Personnel wellbeing ensures the high quality of products
Tulikivi is a responsible employer and its products are safe, durable and of high quality. We are committed to observing the internationally recognised principles of the UN Convention on Human Rights. In 2022, we will introduce the UN Guiding Principles on business and human rights to all of our processes.

Reliable partners are vital for successful operations. When selecting partners, Tulikivi considers all aspects of responsibility and monitors compliance with them regularly throughout every agreement period. Tulikivi requires its partners to demand responsi-ble operations throughout their own procurement chains.

Tulikivi’s products are manufactured in Finland by its own committed personnel. We want to ensure our employees’ wellbeing and that their work is meaningful to them and that they want to become even better at what they do. The commitment of our employees to their work and their expertise ensure the quality of our products. The overall success of the delivery is ensured by an expert fireplace installer and sales net-work.

The Tulikivi Group employed an average of 204 (192 in 2020) people during the finan-cial year. The average was calculated according to the period of employment.

Tulikivi systematically promotes the equality and non-discrimination of its employees. Harassment, bullying and abuse are not acceptable in the working community. We do not allow discrimination on the basis of age, opinion, religion, gender, sexual orienta-tion, health status or other personal characteristics in recruitment or during employ-ment.

Ensuring expertise through continuous training
The company supports the objectives of continuous learning through on-the-job learn-ing and training. Personnel training focused on managing the current status. This in-cludes acquiring skills required under legislation or other regulations (such as GDPR), and first aid and occupational safety training. On-the-job learning remains the most important form of learning in the company. Apprenticeship training is used increasing-ly and at the end of the year two employees were being provided with such training.

The expertise of fireplace and other installers and sales network personnel is main-tained with continuous training on topical matters. In addition, sales network person-nel were provided technical and other sales training in 2021. Training was also provid-ed on how to utilise the network in sales and customer service, and in data security matters.

Tulikivi works actively to minimise sickness absences and to maintain working capacity and motivation at a good level. The focus of our occupational health service is on pre-ventive actions, but basic medical care focusing on occupational health is also part of occupational healthcare. Under our early intervention model, we review employees’ working capacity together with them after every 40 hours of sickness absence over a 12-month monitoring period. Workplace reports were completed in the various places of operation in cooperation with occupational healthcare and the Finnish Institute of Occupational Health. Further development of occupational health services is planned in 2022.

In our scheme to promote personnel initiatives, a total of 41 (53) new initiatives were submitted during 2021. The frequency of accidents was 19 (24) accidents per million working hours. In 2022, a project to improve occupational safety will be carried out together with our insurance company Fennia and our pension insurance company Elo. The goal is zero incidents.

Interaction keeps you up to date
In its operating environment Tulikivi fosters a sense of community in many ways and wants to maintain an open dialogue with all stakeholders. The company is very visible in many areas in Juuka and Heinävesi where its plants are located. Tulikivi employees have an important role in local sports and cultural and other activities. The company has supported the Vaarojen Maraton running event organised at Koli since the very first event and has been active in developing tourism in the Koli region. The municipali-ty of Heinävesi has joined the region of North Karelia and this will have a positive influ-ence on the company’s opportunities to contribute to the development of tourism in the region.

Tulikivi Corporation is a member of several organisations and forums that promote the company’s operating conditions. They include KIVI – Stone from Finland (former Finn-ish Natural Stone Association), the Chemical Industry Federation of Finland, Nuohous-alan Keskusliitto (Central union of chimney sweeps), The Finnish Family Firms Associa-tion, Confederation of Finnish Construction Industries RT (CFCI),the Association for Finnish Work, Tulisija- ja savupiippuyhdistys TSY (Association of manufacturers of fire-places and chimneys), TTS, the Finnish Clean Energy Association, the Finnish Investor Relations Society, the Chemical Industry Federation of Finland, the Securities Market Association, the HKI-Verband, and Teknikföretagens Branschgruppen.

Financial responsibility

Good governance supports success
Tulikivi is a listed family company that seeks good financial profitability and operates on a long-term basis and appreciates its stakeholders. In accordance with good corpo-rate governance, the company respects the rights of its shareholders and engages in diligent and timely financial reporting. Auditing, internal control, risk management and compliance have been arranged appropriately and adequately. Management and ad-ministration have been organised in such a way that they support successful manage-ment and responsible financial administration.

Tulikivi’s starting point in all of its operations is to avoid such situations that would put the reliability of the company’s operations at risk on the basis of an external evalua-tion. We do not accept the grey economy in any part of our operating chain. Tulikivi has zero tolerance for any form of bribery and corruption.

Many ways to fund society
Tulikivi’s operations have significant effects on many stakeholder groups: customers, suppliers, service providers, employees, investors and the public sector. The direct fi-nancial impact of Tulikivi’s operations on stakeholders consisted of the following in 2021:
Customers generated total net sales of EUR 33.5 (29.2) million. This consisted of Tulikivi and Kermansavi fireplaces, natural stone products, sauna heaters and product-related services sold to customers.

Suppliers of goods and semifinished products were paid EUR 7.3 (6.5) million and ser-vice providers were paid EUR 10.8 (9.4) million. The company paid EUR 0.4 (0.2) mil-lion for machinery and equipment.

Employees’ salaries and bonuses totalled EUR 9.1 (8.5) million, and the associated pension and other insurance contributions were EUR 1.8 (1.8) million.

Finance providers were paid EUR 0.6 (0.8) million net in interest and other financial expenses.

Shareholders were paid no dividends for 2021.

In 2022, we will develop our company’s corporate social responsibility (CSR) and re-new ESG reporting on the various elements of responsibility.