SUSTAINABILITY:
Systematic work for sustainable corporation
SUSTAINABILITY:
Systematic work for sustainable corporation
Edita Group helps its customers communicate more efficiently and provides them with reliable printed and digital information. Edita Prima specializes in customer communication services for companies and organizations. Edita Publishing produces learning materials, web services, books, and training services to support the work of teachers and lawyers. It is right to say that our businesses have impact on our society in many ways.
Sustainability
We in Edita Group aim to have a positive impact on society and to run our business in a sustainable way. Creating value for and maintaining the trust of our stakeholders is in the core of our operations. We seek to work in close collaboration with our clients to provide them with solutions that drive their growth and increase their customers’ satisfaction.
Edita Group’s sustainability activities correspond to the areas of environmental and social responsibility and good governance that form the basis of our sustainability approach (ESG). Edita Group also strives to maintain goodfinancial position that supports sustainable business. This includes financial responsibility and being a good corporate citizen.
We comply with legal requirements and transparency in our operations and have a proven track record of systematic sustainable work since the beginning of the 1990s.
Our Code of Business Ethics guides the activities of every Edita Group employee in relation to all our stakeholders: employees, customers, business partners and the owner. We also expect our business partners to comply with our ethical guidelines.
We are committed to run our businesses in a sustainable way and to respect environmental and social responsibility and ensure good governance in all our operations.
Environmental responsibility:
Reducing carbon footprint
We reduce our own and customers’ environmental impact by investing in sustainable operations and services.
In our production activities the environmental work is systematic and focused on continuous improvement. One important step in reducing our carbon footprint has been the transition to electricity from renewable sources. We have centralized our operations and increased our use of premises in and efficient way. This has led to increased energy efficiency and improved management of the office practices.
Social responsibility:
Culture of growth and collaboration
We are committed to building a growth culture providing employees with learning opportunities, nurturing their talent, offering inspirational leadership and fair rewards for achievement. We believe that individuals with diverse backgrounds and experience, working together in an environment built on trust and transparency, are essential to our success.
We encourage employees to collaborate with each other to strengthen our culture and ability to meet customer needs. Our Guiding Principles are an essential part of our daily work, and they guide our behaviour and develop our culture towards a desired ethical direction
Good governance:
Transparent operation
Edita Group follows principles of good corporate governance. Our goal is to show integrity, transparency and accountability in all our operations. We comply with legal requirements and are honest and transparent when communicating about our business.
Financial responsibility:
Profitable growth
We aim to conduct our business in a profitable way and provide our stakeholders with reliable and high-quality products and services in order to sustain long-term relationships with them. We run our business efficiently aiming for long-term profitability and growth. Efficient internal control safeguards reliable information, and regular risk monitoring enables us to react and manage risks in time.
Environmental responsibility:
Reducing carbon footprint
We reduce our own and customers’ environmental impact by investing in sustainable operations and services.
In our production activities the environmental work is systematic and focused on continuous improvement. One important step in reducing our carbon footprint has been the transition to electricity from renewable sources. We have centralized our operations and increased our use of premises in and efficient way. This has led to increased energy efficiency and improved management of the office practices.
Social responsibility:
Culture of growth and collaboration
We are committed to building a growth culture providing employees with learning opportunities, nurturing their talent, offering inspirational leadership and fair rewards for achievement. We believe that individuals with diverse backgrounds and experience, working together in an environment built on trust and transparency, are essential to our success.
We encourage employees to collaborate with each other to strengthen our culture and ability to meet customer needs. Our Guiding Principles are an essential part of our daily work, and they guide our behaviour and develop our culture towards a desired ethical direction
Good governance:
Transparent operation
Edita Group follows principles of good corporate governance. Our goal is to show integrity, transparency and accountability in all our operations. We comply with legal requirements and are honest and transparent when communicating about our business.
Financial responsibility:
Profitable growth
We aim to conduct our business in a profitable way and provide our stakeholders with reliable and high-quality products and services in order to sustain long-term relationships with them. We run our business efficiently aiming for long-term profitability and growth. Efficient internal control safeguards reliable information, and regular risk monitoring enables us to react and manage risks in time.
Maintaining the trust of stakeholders
Maintaining the trust of stakeholders
Edita Group wants to operate in a way that helps us maintain the trust of our stakeholders. We always seek to work ethically, responsibly and in line with our Guiding Principles with our stakeholders.
Employees
Edita Group aims to be an attractive and responsible employer. We are committed to promote
a good dynamic workplace and to create interesting career and development opportunities for our people.
We appreciate employees that demonstrate self-leadership, accountability and collaboration and believe that good leadership and a strong organizational culture are the cornerstones for employee engagement and high performance. We respect an employee’s right to balance their private and professional lives and believe it helps us attract and retain competent people.
Customers
Ongoing dialogue with customers is part of the fundamental nature of our business. We have daily dialogue with customers about their needs and expectations.
We aim for honest and accurate communication about our customers’ business as well as the services and products we create for them. We always seek a customer’s approval before openly discussing or publicizing a service we have created for them.
Partners
We treat our suppliers and sub-contractors equally and seek for cooperation build on trust and confidentiality. We focus for objective assessment of price, quality, and reliability in competition. We expect our partners to comply with our code of conduct and to oppose illegal and unethical labor practices as do we.
Owner
Edita Group Plc is a Finnish public limited company owned by the Finnish state that holds 100 percent of the shares. The owner is represented as member of Edita Group’s Board of Directors and regularly receives information about our business in the form of financial reports.
Monitoring risks proactively
Monitoring risks proactively
Risk management is an inseparable part of Edita Group’s strategic planning and operational goal setting. Risk management is based on an organization-wide approach to identifying, assessing, managing, and monitoring various risks.
The executives are responsible for managing risks related to corporate responsibility and reacting accordingly. Edita Group’s board of directors has approved the risk management methods applied by the executives. The executives assess the likelihood and significance of each risk. The Board of Directors also monitors and assesses risks that have been categorized as significant.
Financial risks
Regular monitoring of financial risks helps us to identify risks related to our business operations and react to them in advance. A risk can be anything that might have an impact on the company’s ability to meet its business objectives.
People
Our most important non-financial risks are related to people. These risks include:
- Management and the key people who work closely with key customers deciding to leave the company.
- Challenges in recruiting talented specialists with right cultural fit and managers who can develop the business and are good leaders.
- Failure in engaging the key people.
- Occupational risks related to printing, such as accidents, chemical leaks or fires at production plant.
We manage people-related risks by implementing good employee experience and talent attraction. In addition, we focus on employee and leadership development. We work for enhancing a collaborative growth culture, nurturing and inspiring leadership and efficient talent development and recruitment practices. We maintain good lines of communication, communicating as openly as possible, and enhance employees’ involvement in developing our business.
Environmental risks
A fire or a chemical leak at a production plant could damage the environment. We consider our other environmental risks to be minor.
Environmental risks are mainly managed through various environmental management systems, such as compliance with the ISO14001 standard; our production company follows procedures established in environmental management systems to identify and prevent potential emergency situations and accidents that could harm the environment. These procedures are audited annually by accredited third parties. The companies regularly review and test their emergency preparedness and response procedures.
Climate change
Climate change is not a substantial risk for our business. Nevertheless, we find combating climate change very important as it is the greatest threat to sustainable development globally.
We have managed to reduce our climate impact significantly since 2008 when we began assessing the ways in which our business contributes to climate change.
In 2009, we started taking measures to reduce our carbon-dioxide emissions and began compensating for a proportion of these emissions. Further information can be found on the environmental responsibility section.
Financial responsibility
- Governance
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Enviromental
responsibility -
Social
responsibility -
Financial
responsibility
Towards
sustainable
cooperation
with
stakeholders
The aim of Edita Group is to run its business in a profitable way, which helps us conduct reliable and long-term cooperation with our key stakeholders, employees, customers and the owner. Important stakeholders also include partners, service providers, investors and the countries and municipalities in which we operate. Edita Group consists of two business areas: Edita Prima and Edita Publishing.
Edita Group follows the principles of good corporate governance. Financial management is based on the Group’s policies, effective risk management and the principles of internal control.
Financial performance during the reporting period
In 2021, the Group continued to develop its business operations and structures to improve efficiency and better respond to changes in customer needs. Business continuity and employee safety were strongly in focus due to the COVID-19 pandemic. In the first half of 2022, the Group has undergone a major change due to the divestment of the Nordic Morning business area. The Group Management Team has focused on leading the change and forming the new Edita Group.
To grow and succeed in the future, the Group will continue to develop its offerings and processes, invest in developing its people and ways of working, and enhance the cost efficiency of its operations.
Edita Group’s reported financial performance is focused on its continuing operations, i.e., Edita Prima, Edita Publishing, and the parent company Edita Group Plc. The Group had an extended accounting year, covering 18 months between 1 January 2021 and 30 June 2022. The comparison period in the financial statements is the calendar year 2020. Edita Group’s net revenue from its continuing operations was EUR 87.3 (44.2) million and adjusted EBIT EUR 2.3 (-1.1) million. The Group’s financial performance is explained in full in its Financial Statements from 1 January 2021 to 30 June 2022, which can be found here.
Internal control and risk management
Edita Group aims to effectively secure the profitability of its business operations through good governance, active internal controls, and risk management.
Every year, the Group conducts risk analyses in conjunction with budgeting. Risks are reported and dealt with immediately. The Board of Directors did not issue a separate assignment for the reporting period regarding internal control.
| Added value of continuing operations in accounting year 1 January 2021 - 30 June 2022 | EUR 1000 |
|---|---|
|
Net revenue |
87 261 |
|
Other operating income |
1 482 |
|
Materials and services |
45 645 |
|
Employee benefits expenses |
20 320 |
|
Other operating expenses |
18 153 |
|
Dividends to shareholders |
|
|
Interests and other financial costs paid to providers of capital |
424 |
|
Income tax, real estate tax, and employer charges |
534 |
|
Value added taxes remitted to tax authorities |
4 948 |
Conducting profitable business
Conducting profitable business
Added value for stakeholders
We provide stakeholders with added value in order to sustain long-term relationships
Strong financial position
We run business efficiently, aiming for long-term profitability.
Internal control and risk management
Efficient internal control safeguards reliable information, and regular risk monitoring enables us to react and manage risks in time.
Tax policy and operating
principles
Edita Group pays taxes on its business income to each operating country, in compliance with local laws and regulations. The Group follows the guidelines for state majority-owned companies on country-by-country tax reporting given in 2022.
More information on the Group’s tax policy and operating principles is presented in the table below.
After the changes in the Group’s structure and divesting the Nordic Morning business area, Edita Group’s main markets are located in Finland. It has no legal entities or business in other countries, or countries considered a tax haven. The Group’s aim is to secure and increase shareholder value through profitable and efficiently managed business operations.
The Group’s tax policy is also aimed at securing shareholder value by ensuring that the local tax legislation of each operating country is always complied with, and that taxes are paid to the country in question.
In tax matters that are open to interpretation or are otherwise complicated, support is obtained from external tax advisors or the tax authorities, who are requested to provide rulings and advice in advance.
The Group’s objective is to handle its taxes and other levies appropriately, in as timely a manner as possible, and in full compliance with the law.
Edita Group’s transfer pricing policy defines the pricing principles for the Group’s internal cross-border trading. The transfer pricing policy is in line with current official guidelines and legislation.
Tax report
Tax report
Edita Group pays direct taxes on earnings and property. The Group also influences the economies of the operating countries through indirect taxes, such as value added tax (VAT), as well as other similar charges, such as the employer’s contributions and social security premiums that the Group collects on behalf of governments.
In the reporting period 1 January 2021–30 June 2022, the Group’s profit before taxes from its continuing operations was EUR 0.2 (-2.0) million. The Group’s income taxes from continuing operations were EUR -0.4 (0.3) million.
At the end of the extended financial year, deferred tax assets stood at EUR 0.4 (0.5) million. There were no deferred tax liabilities. In accordance with the company’s principals of cautiousness, the Group does not book any deferred tax receivables from loss-making accounting periods.
Of the taxes paid for the financial year, the most significant item was statutory employer’s contributions at EUR 0.3 (0.1) million (continuing operations).
Of the taxes remitted for the extended financial year, VAT payments totaled EUR 4.9 (2.6) million and withholding taxes EUR 5.5 (2.6) million (continuing operations).
In addition, the Group also pays additional mandatory contributions, other tax-related contributions, and indirect taxes associated with its purchases, such as energy taxes and insurance taxes.
Tax contribution
| EUR 1000 | Continuing operations | |
|---|---|---|
|
|
1 Jan 2021 – 30 June 2022 |
2020 |
|
Turnover |
87 261 |
44 199 |
|
Profit Before Tax |
162 |
-2 016 |
|
Utilized tax losses |
|
|
|
Personnel |
185 |
193 |
| Taxes borne | ||
|---|---|---|
|
Corporate income tax |
179 |
92 |
|
Employment taxes |
265 |
142 |
|
Taxes on property |
90 |
90 |
|
Other taxes |
|
|
| Taxes collected | ||
|---|---|---|
|
Payroll taxes |
5 516 |
2 636 |
|
Tax at source |
|
24 |
|
Sales VAT |
23 304 |
11 257 |
|
VAT, purchases |
-18 356 |
-8 620 |
|
VAT, returns |
|
|
|
VAT, payments |
4 948 |
2 627 |
*Extended 18 months financial year from 1 January 2021 to 30 June 2022