SUSTAINABILITY REPORTING PRINCIPLES

SATOs annual report is also its sustainability report. This is our fourth GRI-compliant sustainability report (GRI-G3 in 2014, GRI-G4 in 2015 and 2016) and our first in line with the new GRI Standards. The aim of the sustainability report is to openly provide our stakeholders with information about our operations, to create value for them in the short, medium and long terms.

The report has been prepared in line with the Core level of the international Global Reporting Initiative guidelines. It is also compliant with the industry-specific guidelines for the construction and real estate sector (CRESS). The report covers the universal standards of the GRI guidelines, as well as the topic-specific standards, which consist of descriptions of management practices and indicators for topics identified as material for SATO.

In comparison with previous years, we have added information related to SATOs other material sustainability topics in accordance with the GRI Standards. Any changes in the earlier reported information are shown in connection with the figures and factual content.

SUSTAINABILITY BASED ON MATERIALITY

In 2015, we engaged in extensive online discussions with our stakeholders to identify key issues related to our business operations for each stakeholder group. Representatives of various stakeholder groups raised issues that should be associated with sustainability in our operations. The dialogue was implemented as an online think tank, with more than 600 participants from all key stakeholder groups. SATOs management evaluated the themes raised in the dialogue in terms of business impact, and identified five main themes and 11 material topics. In 2017, our materiality analysis was updated in terms of terminology, and the location of apartments was included as a material topic in line with our renewed strategy, which was introduced in 2016.

The effects of the material topics on stakeholders are defined under Customers, PersonnelPartnersEnvironment and Finances. The material topics and their boundaries can be found in the GRI section under Material topics and boundaries. The comparison of the content of the report with the GRI standards is indicated in the GRI content index. A summary of our sustainability goals and measures, and their connection to the UN Sustainable Development Goals, is presented on the Achievements of goals 2017 page.

TOWARDS INTEGRATED REPORTING

Our sustainable operating principles lay the foundation for sustainable and profitable business operations over the long term. We work to continuously develop our sustainability reporting, and are transitioning towards integrated annual reporting. In the 2017 annual report, integrated reporting has been applied to the descriptions of the effects of SATOs value creation, business operations and governance.

The report will be published online in Finnish and English. The boundaries for the calculation of key figures are mainly based on information concerning the SATO Group and the rental apartments it owns in Finland.

The information concerning environmental responsibility in the report has been verified by a third party. The following information has been confirmed by KPMG Oy Ab:

  • The indicators presented in the tables of the SATO's Value Creation / Environment section:
    • Energy (GRI 302-1, 302-4, CRE1, CRE4)
    • Water (GRI 303-1, CRE2)
    • Emissions (GRI 305-1, 305-2, 305-3, 305-5, CRE3)
    • Effluents and waste (GRI 306-2)
  • Indicators presented in GRI index table:
    • Environmental compliance (GRI 307-1)
    • Supplier environmental assessment (GRI 308-1)
    • Land degradation, contamination and remediation (CRE5)