SUSTAINABILITY REPORT FOUR R E AS ON S | 30. 4. 2021
CONTENTS BUSINESS PRESENTATION
3
RESPONSIBLE CONSUMPTION AND PRODUCTION RAW MATERIALS
32 34
Our story
4
Our four reasons
5
What does vegan mean in hair cosmetics?
35
Miraculos Oy
6
Annual Report 2020
36
Action plan for 2021
36
From the CEO OUR SUSTAINABILITY APPROACH
7 8
PACKAGING
37
Operating environment and megatrends
9
Our accomplishments in 2020
38
UN Sustainable Development Goals
11
Use of plastic in retail products
39
Transmeri Group’s sustainability themes
12
Use of plastic in technical products
Ethical principles in Transmeri Group
13
Our actions in 2021
Four Reasons’s sustainability themes
15
Our sustainability goals
16
Highlights of 2020
17
Stakeholder cooperation
18
PRODUCTION Our accomplishments in 2020 Our actions in 2020 Product use
41 42 43 44 44 45
HEALTH AND WELL-BEING
19
Our accomplishments in 2020
46
Consumers and society
21
Our actions in 2021
46
Annual Report 2020
22
Action plan for 2021
23
Customers Annual Report 2020 Action plan for 2021 Personnel
24 25 27 28
Annual Report 2020
29
Action plan for 2021
31
Disposing of our products
47
Our accomplishments in 2020
48
Our actions in 2020
48
CLIMATE ACTIONS How is carbon neutrality defined? Our climate goals and actions Calculation and Baseline
49 50 51 52
2
B U S I N E S S P R E S E N TAT I O N
3
OUR STORY When was the last time you stopped for a moment to think about what is beautiful to you? Today, every hair and beauty brand tells you that you are enough and you are beautiful. The slogans do their best but are drowned out by pictureperfect models and other hype. Instead of wanting to do their hair in the pursuit of beauty, people want to do their hair to look like themselves. For this, we offer the best tools while trying to fix the biggest problem in the industry. Four Reasons is a Finnish beauty industry rebel that stands up for diversity. Our goal is to help everyone to feel great by just being themselves and to break the narrow mold of beauty one better hair day at a time. We hope you stand with us.
Four Reasons Sustainability Report 2021 > Business Presentation > Our story
4
OUR FOUR REASONS
The foundation of our operations is the four reasons that make up our brand promise: We Love the Real You.
#1 PEOPLE
#2 PASSION
#3 AUTHENTICITY
#4 YOU
We are a diverse bunch of rebels. We come noisy, composed, vivacious, funny, analytical, creative, a little odd and very weird. All wonderful. You’ll fit right in.
When dozens of the most skilled in their craft do things together and really love their jobs, the end result fits the bill. We have a passion for this. It’s the best.
To us, authenticity means integrity, transparency, and the courage to be your true self. We tell it like it is and make products that are simple and that actually work.
We know life can be wonderful, sad, fun, dull, simple, and complex. We want to turn your bad hair days into good and your good hair days into even better. It is important to us that you feel your best by just being you.
Four Reasons Sustainability Report 2021 > Business Presentation > Our four reasons
5
MIRACULOS OY Established in 1997, Miraculos Oy is the largest company in Finland specializing in the sales, marketing and import of the hair salon sector’s products and services. Our own brand, Four Reasons, is the most successful line of salon cosmetics by many indicators; more than half of Finnish women use products of the range and, in addition to Finland, it’s available in 15 export countries. In addition to the Four Reasons products and training services aimed at professional hair stylists, our product range includes popular international hair cosmetics brands, such as Paul Mitchell and Olaplex. Miraculos is part of the family-owned Finnish Transmeri Group with a turnover of EUR 222 million in 2020. In all, the group employs more than 750 people.
Four Reasons Sustainability Report 2021 > Business Presentation > Miraculos Oy
6
FROM THE CEO
Since its establishment in 1997, Four Reasons has forged its own path. We have swum against the stream, boldly done things our way and embraced our uniqueness while ignoring beauty standards.
products from raw materials to packaging,
AIMING TO BREAK THE MOLD OF BEAUTY
a lot to be done, but we’re taking steps in the
production and use of the product as well as disposing of the packaging. We have already made many right choices, for instance, by selecting bio-based plastic made of recycled material as our packaging material and by making all of our products vegan. There’s still correct direction every day.
When we started our brand renewal in 2018, we decided to take a step forward for diversity and advance ourselves to the forefront of the hair salon sector to defend everyone’s right to feel beautiful. We studied the use of hair products in Finland and other Nordic countries and noticed how significant hair can be in getting people in the right mood and even boosting their confidence. Good hair speaks louder than words, and that’s the truth! However, still in the 2020s, many players in the beauty industry keep propping up unrealistic beauty ideals with their advertising, pushing us to transform ourselves into something we are not. We want to break this mold of beauty, and we’re challenging all players in the industry to together create imagery that celebrates the diversity of all us humans. Until now, we have taken careful first steps and gathered our courage but now it’s time to call up the troops and start a rebellion!
THE MOST INSPIRING WORKPLACE IN THE FINNISH BEAUTY INDUSTRY In two decades, with hard work, we have become the most successful hair salon sector business in Finland with the most satisfied customers in the industry. We are more a family than a business, which is probably why we have also grown into a working community awarded as the most inspiring workplace in the Finnish beauty industry. Behind our greatest achievements, you will find a group of professionals who are passionate about what they do and striving towards
SUSTAINABLE PRODUCTS THROUGHOUT THE LIFE CYCLE
the same goal. You rarely hear of anyone
Hair products or even hairdressing services are not necessities – people
each other to grow, develop and give our best!
making it solely on their own. We all need
could probably survive without them. That is why it’s especially important to produce them in a way that is sustainable also for the environ-
That is why I hope you stand with us.
ment. We participate in the global climate efforts and have a systematic journey planned towards carbon-neutral operations. Our ambitious
Jyrki Hakala
goal is to make our operations carbon-neutral by 2029.
CEO
In our sustainability work, we consider the overall life cycle of our
Four Reasons Sustainability Report 2021 > Business Presentation > From the CEO
7
O U R S U S TA I N A B I L I T Y APPROACH
8
OPERATING ENVIRONMENT AND MEGATRENDS In 2020, the COVID-19 pandemic took the whole world by surprise and transformed the daily lives of each and every one of us. At the same time, it also expedited a societal change that had been waiting to happen. Many changes in our attitude, consumption behavior and ways of working that took place during the year are here to stay as part of our new daily life. According to the annual Euromonitor study, consumers’ interest in and willingness to use their power has increased strongly over the course of the past year. Businesses and other social players are expected to provide increased transparency and concrete actions to avoid environmental catastrophes and to mitigate social injustice. In our business development and sustainability work, we consider megatrends shaping consumer behavior:
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Operating environment and megatrends
9
AWARE CONSUMERS COMFORT
Financial uncertainty leads
RESPONSIBILITY AND SUSTAINABILITY
The restrictions caused by
Before the COVID-19 pan-
ward planning in consumer
Digital devices and the
demic, consumers’ greatest
behavior. The transforma-
virtual world have become
Mental well-being has
choices are more often dic-
causes for concern related
tion expedited the growth of
an inseparable part of our
become the key indicator of
tated by the product’s value
to the environment were the
digital services and online
daily life. Through them,
good health pursued by all
for money and, on the other
use of plastic and climate
shopping. A generational
we are always in contact
consumers. The pandemic
hand, its impacts on well-be-
change. With the pandem-
gap can be seen in purchase
with others without actually
wreaks health-related and
ing and the environment
ic, attention was turned
behavior: younger people
being physically close. The
financial uncertainty and a
– however, people are not
to the social responsibility
prefer digital channels
limits of digital and physical
sense of insecurity, taking its
willing to make sustainable
of businesses. As a whole,
whereas the more aged
interaction are dissolving:
toll on our mental well-be-
choices if product quality is
consumers’ requirements
appreciate face-to-face
the younger generation no
ing. Consumers are always
compromised. We can influ-
for businesses’ environmen-
human contact. Regardless
longer knows the boundary
on the lookout for new
ence the experienced quality
tal and corporate social
of channel and age group,
between these two. Consum-
solutions to support their life
of the product significantly
responsibility increased,
consumers always expect
ers expect all the products
management and to im-
by investing in the shopping
and consumers make more
their shopping experience to
and services they use to be
prove their personal health
experience in both physical
value-based choices.
be smooth and comfortable.
available via digital devices.
and well-being.
and digital service channels.
the pandemic increased for-
consumers to make more
DIGITAL REALITY RESILIENCE
carefully considered purchase decisions. Consumption
Sources: Euromonitor 2020, Four Reasons Nordic Consumer study 2020 Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Operating environment and megatrends
10
UN SUSTAINABLE DEVELOPMENT G OALS At the latest, the crisis caused by the COVID-19 pandemic has forced people, businesses and those in power around the world to think of solutions to our world’s great problems regarding the environment and inequality. The UN Sustainable Development Program sets ambitious goals for this, and reaching them requires cooperation and commitment from all levels of society. Four Reasons is part of these efforts with every corner of its heart.
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > UN Sustainable Development Goals
11
TRANSMERI GROUP’S SUSTAINABILITY THEMES Corporate social responsibility is an integral part of Transmeri Group’s ownership strategy steered by the company’s owners from the group companies’ boards of directors. Transmeri Group’s three sustainability themes are • Work and economic growth with dignity • Climate actions • Cooperation and partnership
”For us, corporate social responsibility means looking after people and the environment together with our partners.”
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Transmeri Group’s sustainability themes
12
ETHICAL PRINCIPLES OF TRANSMERI GROUP As part of Transmeri Group, Four Reasons is committed
customers and other stakeholders. The ethical principles
to conducting its business in an ethical and sustainable
support us in our continuous work to earn and maintain
manner, and it expects a similar level of commitment from
the trust of the surrounding society, and they represent the
its partners. We comply with the ethical principles created
values of our Group.
by Transmeri Group that are based on internationally
All employees of Transmeri Group, including those of
recognized norms, guidelines and principles by the United
Four Reasons, must comply with these ethical principles de-
Nations (UN), International Labour Organization (ILO) and
spite the status of the employee in the organization or the
Organisation for Economic Co-operation and Develop-
nature of the employment. In addition to our employees,
ment (OECD). Our ethical principles are guided by the ten
our ethical principles also apply to external parties, such as
principles of the UN Global Compact Initiative.
subcontractors, intermediaries and consultant that work
These ethical principles compile guidelines of the kind of business we want to conduct and what kinds of expec-
in cooperation with or on behalf of Four Reasons or other
ETHICAL PRINCIPLES:
1. R espect for human rights and dignity
2. A dherence to laws and regulations 3. P rohibition of the use of child labor 4. P rohibition of forced labor and disciplinary action 5. D ecent working conditions and wages 6. P revention of discrimination
Transmeri Group companies.
tations we meet in our daily work with each other, our
7. T he right to organize and unionize 8. E nsuring occupational health and safety 9. P rotection of the environment
GOALS AND INDICATORS Goal 1: 100% of our personnel have been trained about the ethical principles of our Group and our company.
Goal 2: 100% of our suppliers are committed to our Supplier Code of Conduct by 2025
10. E nsuring data privacy and protection 11. E thical business practices
Indicator: the accomplishment marks of personnel’s Code of Conduct: the percentage of active employees who have received a training about the ethical principles Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Ethical principles of Transmeri Group
13
OUR ACCOMPLISHMENTS IN 2020 In 2020, trainings about Transmeri Group’s Code of Conduct were organized for the entire personnel and accomplishment marks were collected regarding the attending of the training. All of the personnel committed to complying the Code of Conduct. Transmeri Group produced a Supplier Code of Conduct for all group companies. We listed the key partners in our value chain within the scope of the agreement and defined persons responsible for partners.
OUR ACTIONS IN 2021 In 2021, the Code of Conduct training will be included in the orientation of new employees, which is when the accomplishment marks, used to monitor if the goal is achieved, will be collected. Over the course of the year, we will train the persons responsible about the Supplier Code of Conduct. We will create a supplier-specific schedule in which we expect the supplier to commit to our Code of Conduct. Persons responsible will communicate the Code of Conduct to the suppliers and ensure that they are committed to it.
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Ethical principles of Transmeri Group
14
OUR SUSTAINABILITY THEMES At Four Reasons, we have selected three themes from the UN Sustainable Development Goals that are relevant to our business operations and through which we can best impact matters that our stakeholders value. In our sustainability work, we will focus especially on these themes: • Health and well-being • Responsible consumption • Climate actions Corporate social responsibility is an integral part of our business operations and our strategy. It’s daily choices and concrete actions for our shared future.
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Four Reasons’s sustainability themes
15
OUR SUSTAINABILITY GOALS
HEALTH AND WELL-BEING
RESPONSIBLE CONSUMPTION
Breaking the mold of beauty
Personnel 100% committed to the Code of Conduct
The healthiest customers in the hair salon sector
Suppliers 100% committed to the Supplier Code of Conduct
The most inspiring workplace in the Finnish beauty industry
Sustainable product selection taking into account environmental aspects from the entire life cycle of the product
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Four Reasons’s sustainability themes
CLIMATE ACTIONS Carbon neutrality by the end of 2029
16
HIGHLIGHTS OF 2020 • Transmeri Group’s ownership strategy was released: sustainability and responsibility were placed at the core of the entire group’s operations • We trained our entire personnel about the Code of Conduct being prepared in the Group
HEALTH AND WELL-BEING • At the threshold of the pandemic, we set ensuring the health of our personnel as a priority: we switched to remote work, expanded our occupational healthcare, provided face masks and disinfectants for the use of our personnel • We provided support for professional hair stylists: freeof-charge online trainings, extended payment terms, decreased the minimum freight level, free-of-charge online shopping service to support additional sales • We took part in the Mielinauha fundraising organized by MIELI Mental Health Finland that maintains national crisis helplines
RESPONSIBLE CONSUMPTION
CLIMATE ACTIONS
• We reached one of our important goals: Four Reasons products were renewed to be 100% vegan
• We took first steps in sustainability reporting and starting our emissions calculations
• The packaging material of 57 different product items was replaced with bio-based, recyclable plastic
• Our direct emissions decreased by 9,4 %.
• Sales batch boxes were replaced with boxes containing 75% recycled cardboard and packaging tape was switched from plastic to paper tape • We created recycling instructions for our products on our website and packaging and actively communicated them
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Highlights of 2020
17
STAKEHOLDER COOPERATION We engage in a continuous dialogue with our important stakeholders to better understand their needs and expectations and hopes for us. We do this with different customer, market and brand studies and by maintaining a dialogue in our own communications channels as well as in all of our daily face-to-face encounters. We utilize the feedback we collect in the continuous development of our products and services as well as our operations.
CONSUMERS
EMPLOYEES
PARTNERS
For consumers, hair care is a daily routine,
Our personnel are a tight-knit and result-ori-
Our key partners include factories and suppli-
above all. Despite that, the stakes are high:
ented working community that has a passion-
ers as well as distributors of our products who
the daily gamble is looking like yourself. The
ate approach to hair cosmetics and the hair
expect long-term cooperation, continuity and
core role of hair products is to make everyday
salon sector. Above all, our employees value
reliability from us. Our other partners include
life easier and help get a good vibe: in other
our company’s continuous, customer-oriented
transport companies and businesses providing
words, to create a good hair day. The product
development and our operating culture, with
research, consultation, design and market-
and packaging must be sustainable but not at
no unnecessary red tape and where everyone’s
ing services. As a business that buys services,
the cost of the product’s quality. Our users ap-
voice is heard. They expect fair and just com-
ethical and reliable business operations are
preciate our products’ value for money and our
pensation, equal treatment and personal de-
expected of us.
groundbreaking and courageous approach to
velopment opportunities from their employer.
beauty care that they can identify with.
CUSTOMERS
OWNERS & THE BOARD OF DIRECTORS
For professional hair stylists, hair products are
Our owners expect our business to turn a profit
a mix of passion, daily tools and an extension
in the long term and they steer us towards
to their own craft. Products must be 100%
sustainable decisions with their ownership
reliable and safe but also economical with
strategy. Our owners specifically want to focus
a pleasant user experience. In addition to
on business opportunities that create a better
functional products, our customers expect
future for humanity and the entire planet.
comprehensive service from us to support their
Sustainability is expected to steer the daily
business: personal service, fast deliveries, train-
development of our business operations.
Our key stakeholders and their expectations
ing to develop the professional competence of
for us:
hair stylists and marketing that promotes the sales of the hair salon.
Four Reasons Sustainability Report 2021 > Our Sustainability Approach > Stakeholder cooperation
18
H E A LT H A N D W E L L - B E I N G 19
Hair is part of our identity. It expresses our own personality and lifestyle, and often also different stages in life, the peaks and the valleys. Hair care is a way of maintaining and highlighting the individual strengths of your appearance that reinforce your positive self-image and confidence. In principle, hair is a light and fun thing. That is why it’s a shame that the beauty industry is among the most significant reasons for pressure related to the way we look: it produces advertising and imagery that is cut out for increasing our uncertainty and dissatisfaction with ourselves. Almost every hair and beauty brand tells you that you are enough and you are beautiful but also uses images of only a certain type of person, the type that fits into the very narrow mold of beauty used in their advertising. The goal of the Four Reasons community is to break this narrow mold of beauty that we are forcefully squeezed into time and time again and help everyone feel great by being who they are. Four Reasons Sustainability Report 2021 > Health and Well-being
20
CONSUMERS AND SOCIETY
GOALS AND INDICATORS Four Reasons is a Finnish beauty industry rebel that stands up for diversity.
Our goal is to break the mold of beauty that we have been forcefully squeezed into over time and help everyone feel great by being who they are.
Indicator: annual brand study used to measure brand relevance for our target group
Four Reasons Sustainability Report 2021 > Health and Well-being > Consumers and society > Goals and indicators
21
ANNUAL REPORT 2020 For us, 2020 was a year of soul-searching. We had already decided to advance ourselves to the forefront of the hair salon sector to stand up for diversity. But now we’ve stopped to think about what that actually means. What kinds of influencing opportunities do we have? And what do the members of our community expect from us?
and clean, I feel good about myself.”
THE NORDIC CONSUMER
achieve a better version of ourselves with
To respond to these questions, we listened to
tool for acceptance.
“My hair is an important part of my looks.
of the beauty and hair salon sector, and we
ADVERTISING AS A MEANS OF INFLUENCING
were startled by the conflict between what
In the Four Reasons brand advertising, we
We also looked into the brand advertising
we do and what we say in our industry. On the surface, it seems that all businesses in the beauty sector want to encourage people to feel beautiful in their own skin and sufficient just as they are. “You are enough.” “You are worth it.” “Diversity is beautiful.” However, the world of images built by beauty brands is a whole different kind of a reality: the industry uses models that fit a very narrow ideal of beauty, which makes the rest of us try to beauty products. Beauty products are sold as a But the imagery of our sector represents an
qualitative study in the Nordic countries and
ideal of beauty that is utterly unattainable for
find out about consumer habits related to hair
the majority of people. Of course, because what
products together with consumers’ values and
we see in photos is not reality. In photos, models
attitudes behind the use of the products. The
pose as stands for the beauty products they use,
study strengthened our observation that the
leading us to believe that if you buy this prod-
use of hair products is linked to a daily routine
uct, you will be one step closer to your beauty.
with the primary purpose of “making you look
The dialogue with our consumers helped
like yourself”. When your hair is on point, daily
us understand how conflicted the ideas about
life rolls a bit smoother, and it gives you that
hair and hair products of those who use the
little confidence boost.
products are with the advertising produced
tionship with their hair: ”When my hair is looking good, it is easier to smile and feel good.” “When my hair smells good
daily hair problems.
It means a lot to me to take good care of it.”
those who use our products. We conducted a
This is how consumers described their rela-
provide, instead, solutions that genuinely solve
by the players in the sector. We strongly feel that cosmetics brands and hair salon services should come down from their ivory tower of beauty ideals to the daily life of their users and
Four Reasons Sustainability Report 2021 > Health and Well-being > Consumers and society > Annual Report 2020
continued along our selected path as a promoter of diversity and self-compassion. The previous year, we organized the Puhu itsellesi kauniisti (“We Love the Real You”) campaign, which led to almost 10 000 new visitors to our website writing an encouraging aphorism for themselves. This year, we continued spreading the message of the campaign on social media and in blog content we produced. We paid special attention to living up to our words: we chose models with personal faces who consumers can identify with and did brand collaboration with partners who share our values. We started the most significant brand collaboration with one of Finland’s most successful star singers, Saara Aalto. We showed our support to minorities facing
Our year of soul-searching led us
systematic discrimination as part of the Black
to the point where we understand
Lives Matter movement by sharing antiracist
that we still have so much to learn
information in our social media channels.
and an extremely high mountain to
We also donated to the Mielinauha fund-
climb to make a true change in the
raising organized by MIELI Mental Health
beauty sector. But our enthusiasm for
Finland to collect funds for providing acute
learning and developing has been
help during the pandemic. We donated some
ignited. We keep on developing while
of the profits of the Four Reasons Profession-
listening to the users of our products
al product line to charity and increased the
and responding to their needs and
visibility of the campaign in our media and
hopes.
through our hair salon customers. 22
ACTION PLAN FOR 2021 We admit that we are incomplete. Our goal
understanding and internal growth. We are
selves making mistakes while reaching for it.
organizing training about inequality for our
Over the years, the mold of beauty has been
entire personnel with the goal of increasing
ingrained so deep in our brain that changing
understanding about the discrimination faced
it takes tremendous courage and skill. But we
by minorities and shaking loose everyone’s
are only human, always stumbling in front of
own values and attitudes. We will provide in-
this major challenge.
depth training for the use of the Four Reasons
Every photo we post and every advertising
image concept and tone of voice aimed at
content we distribute shapes the reality of the
breaking the mold of beauty for everyone
people around us for its part. As a corporate
working with content production and direct
citizen reaching millions of people, we bear
customer contact.
a high responsibility for the products and mar-
Four Reasons Sustainability Report 2021 > Health and Well-being > Consumers and society > Action plan for 2021
As a result, 2021 will be a year of increasing
is massive, and we continuously catch our-
In our marketing communications, we are
keting content we produce and share. That
breaking the mold of beauty most visibly with
is why our key actions for 2021 are focused
the launch of the Four Reasons Original product
on clarifying our business’s internal rules and
line. The “Stay Weird” campaign encourages
operating principles and ensuring that they
you to set yourself free of pressure related to
are understood and shared by all of our em-
the way you look and enjoy life just as weird as
ployees.
you are. The same theme continues on a daily
We want to be a rebel in the beauty in-
basis in our social media channels, our website
dustry that stands up for diversity. However,
and in the channels of our influencer partners.
inequality and systematic discrimination of
In addition, the renewed product packaging of
minorities are ingrained so deep in our culture
the Four Reasons Original line includes empow-
and our unconscious ways of working that we
ering messages with a twinkle in the eye that
require a lot more training and education to
encourage users to believe in themselves and
better understand the problem and to do the
set themselves free of beauty standards also
right thing.
when it comes to daily hair care routines.
23
CUSTOMERS Professional hair stylists play a key role in enabling the good hair days of their customers. However, a hair stylist’s work is never about only the hair: the social interaction of a hair salon visit is just as integral a part of the service experience as the hair is. You can confide in your go-to hair stylist about personal, even difficult, matters like in a close friend. Long-term, trusting customer relationships bring an enormous amount of content and significance to the work of a hair stylist. In addition to physical strain, the work of the hair stylist is often also mentally straining. The Four Reasons principle has always been to provide professional hair stylists with extensive service – not only exceptional products but also services that support the business operations of hair stylist entrepreneurs. As a partner of professional hair stylists, we feel it’s our responsibility to ensure that hair stylists aren’t worn down by their work. Investing in well-being is particularly important in the current situation as the COVID-19 pandemic has increased the financial and mental load of hair stylists significantly.
GOALS AND INDICATORS Our goal is to have the healthiest customers in the hair salon sector Factors contributing to well-being*: • health • financial well-being • experienced well-being Indicator: annual survey for professional hair stylists used to measure the factors contributing to well-being, a) financial well-being b) health/work ability c) experienced well-being *Source: The Finnish Institute for Health and Welfare
Four Reasons Sustainability Report 2021 > Health and Well-being > Customers > Goals and indicators
24
ANNUAL REPORT 2020 In our operations, our goal of having the healthiest customers in the hair salon sector means that we make choices that promote the financial, physical and mental well-being and health of professional hair stylists.
their safety and hygiene arrangements. The
HEALTH AND WORK ABILITY
related to our operations. During the ear-
We engage in continuous product develop-
we minimized customer contacts and as
ment in which we pay special attention to preventing hair stylists’ occupational diseases. We try to avoid raw materials and consistencies that create allergies and skin or respiratory tract symptoms within the boundaries set by the products’ purpose of use and characteristics. Examples of the results of our development work include our fragrance-free Four Reasons Optima hair color line, our dust-free Four Reasons Bleach and our fragrance-free Four Reasons No Nothing product line developed in collaboration with the Allergy, Skin and Asthma Federation. The latter was launched in 2020. Since the outbreak of the pandemic in spring 2020, hair salons experienced the need to pay special attention to preventing the immediate health risks of hair styling work. According to a survey we conducted in June in the hair salon sector, almost all hair salons reported making at least some changes to
most common procedures were related to hand hygiene and more efficient cleaning. For our part, we supported the implementation of new hygiene practices in hair salons by adding cleaning and hygiene products, such as face masks, visors and hand sanitizers, in our selection and instruction our customers in how to use them. We adapted our own business operations to minimize any immediate risk of infection ly stages of the outbreak of the pandemic, we got more information, we continued our normal customer work within the set safety and hygiene guidelines. We cancelled large public events and replaced them with digital trainings. The sector quickly acquired the new remote way of training: our training sessions reached more than 8,000 participants.
FINANCIAL WELL-BEING According to a survey we conducted in June in the hair salon sector, the restrictions to prevent the spreading of COVID-19 were seen as cancelled appointments in hair salons. In the survey, about 50% of the stylists reported that their flow of customers had either severely diminished or completely dried up. However, customer flow completely drying up was rarer (12%) in hair salons with Four Reasons as their primary wholesaler (20% of other wholesalers’ customers).
Four Reasons Sustainability Report 2021 > Health and Well-being > Customers > Annual Report 2020
25
MIELINAUHA.FI
Näytä, että kuuntelet. Nyt tarvitaan lähimmäistä, joka kuuntelee. Four Reasons -kampaamot tukevat kotimaista kriisiauttamista.
opportunity to sell hair products represented
in three respondents saw increased free time
June, survived the COVID-19 crisis without
Very few salons, only about one in ten by
by us without committing any of their own
also as a positive thing.
financial losses. Those that survived with lesser
capital in their stock. The use of the service
financial damage was clearly higher (57%)
requires that the hair stylists be Four Reasons
concerned about the future of their own hair
zine, podcast and website content to support
among the hair salons who used Four Rea-
customers but there are no extra costs: we at
salon. One in three were worried about dimin-
the mental well-being of hair stylists together
sons as their primary wholesaler (47% of other
Four Reasons are responsible for the online
ishing mental well-being or finances and/or
with different experts, such as MIELI Mental
wholesalers’ customers). The result can be
store logistics, payment traffic, maintenance
the postponement of future investments. One
Health Finland. We also provided a media
explained by the extended payment terms we
and development. Several hundred profes-
in five predict that their customer volumes will
platform for the sector’s internal interaction
offered to our customers during the COVID-19
sional hair stylists started using the service
have been reduced in the long run as a result
and peer support. We facilitated the sector’s
crisis, which was clearly less common with the
during the first year of operations and at best,
of the COVID-19 pandemic. Those with the
discussion on social media in the blog of our
customers of other wholesalers.
hair stylist entrepreneurs made thousands of
least experience in the hair salon sector had
customer magazine where we provided sector
euros without any additional charges through
the bleakest views of their future.
entrepreneurs space to express their views.
In addition, we alleviated the financial distress of our customers by lowering the
the service.
minimum freight order and providing all of our online trainings for hair stylists free of charge. As part of our free online trainings, we provided sales and marketing training aimed at improving profitability for hair stylists. To support the sales and digitalization of hair stylists, we launched a new online store service in the spring. It provides hair stylists the
MENTAL/EXPERIENCED WELL-BEING Despite their financial losses, our survey shows that nearly all hair stylists have also found a positive side to the crisis – from the perspective of leisure and work. COVID-19 forced hair stylists working long hours to stop. Almost two
Four Reasons Sustainability Report 2021 > Health and Well-being > Customers > Annual Report 2020
Almost one in two respondents were
Stylists who had used their time in the
The spring was in many hair salons a time of crisis, and we wanted to support it also on a mental level. We produced customer maga-
Over the course of the year, we heard from
spring slowed down by the pandemic to
the Managing Director of the successful Sirpa
develop their business operations by means
Mansner chain Nina Olander, Harri Åkerberg,
of digitalization services had a more positive
who was awarded in international hair salon
view of the future than the average. Examples
sector competitions, and the brand ambas-
included starting product sales through an
sador of our competitor SIM Finland Senni
online store or increasing digital marketing.
Koskivirta.
These were the actions we actively supported through our online store and training services.
26
Photo by Starabia, Helsinki
ACTION PLAN FOR 2021 To best respond to our customers’ needs and hopes, we are conducting a well-being survey for professional hair stylists, which we will utilize when planning our operations. We continue our selected line as a partner promoting the financial benefit of hair stylists by offering products and services at a smart price, profitably for all parties. We are always planning new campaigns to promote hair stylists’ sales, and we promote the sales of our products in hair salons by providing sales promotion and marketing materials for hair salons free of charge. We are always growing our brand awareness, and we produce extensive visibility for our campaigns. We also hold on to the fast deliveries appreciated by our customers because they enable minimizing our customers’ capital tied down in stock. Our network of sales consultants covers the entire country and helps hair stylists with product sales, presentation and portfolio manage-
Photo by Viivi & Wagner, Kiiminki
ment. For our part, we try to promote hair stylists’ work ability and coping at work by ensuring that they have the necessary tools at their disposal and the expertise to continue in their profession until retire-
Photo by Starabia, Helsinki
Photo by Nella Ahonen,Ylöjärven Hiuskulma
ment. In the current situation, the focus of our operations is focused on preventing the spreading of the pandemic in hair salons by ensuring that our personnel wear protective gear in contact with customers and by providing hygiene products for hair stylists to use. Our training team guides hair stylists in the use of our products with salon trainings and video and webinar trainings that make our use and technique product trainings available to all. We will continue our freeof-charge online trainings and provide hair stylists every other week the opportunity to develop their professional expertise at no charge at all. We listen to our customers’ hopes and needs and continuously develop our training selection based on their feedback. The purpose of our trainings is to support the overall well-being of our customers.
Four Reasons Sustainability Report 2021 > Health and Well-being > Customers > Action plan for 2021
27
PERSONNEL At Four Reasons, we’re more than a regular working community. We are more of a family and a band of rebels, a true motley crew. We come noisy, composed, vivacious, funny, analytical, creative, a little odd and very weird. When dozens of top talents from their respective sectors work together and really love what they do, it can be seen in the result. We are proud of the acknowledgement we have received in our employee satisfaction survey for many years in a row: we are among Finland’s most inspiring workplaces. The PeoplePower index measured in the survey depicts employee engagement, leadership and performance that together depict personnel commitment to their work and place of work. The AAA results we reached in the survey are validated day in, day out in our daily work and encounters.
GOALS AND INDICATORS Our goal is to be the most inspiring workplace in the Finnish beauty industry
Indicator: the PeoplePower index measured with the annual employee satisfaction survey, which measures employee commitment, leadership and performance
Four Reasons Sustainability Report 2021 > Health and Well-being > Personnel > Goals and indicators
28
ANNUAL REPORT 2020 The PeoplePower index measured with an em-
During the exceptional year of COVID-19,
ployee satisfaction survey measures employee
we focused especially on safeguarding the
commitment, leadership and performance
health of our employees. During the outbreak
in the entire organization and on the level of
of the epidemic, we tried to anticipate our
different departments and units. The latest
precautions and cancelled our training tour
employee satisfaction survey in Transmeri
that had started in the spring and other train-
Group was conducted in 2019. Then, 63.6% of
ing events, for example. We moved from the
Miraculos personnel responded to the survey,
office to remote work and put in place com-
and we reached the best AAA level in the
mon safety and hygiene practices for those
measurement, improving our result from the
in office and field work. We provided face
previous year. We exceeded the benchmark
masks and hand sanitizers for our personnel’s
in every section of the survey, and the result
constant use free of charge. The accessibility
landed us an acknowledgement as one of
of the Group’s occupational healthcare was
Finland’s most inspiring workplaces. In 2020,
further improved with remote appointments.
we continued developing our work community
The pandemic wreaking uncertainty and
based on the results of the employee satisfac-
insecurity increased the mental load of our
tion survey.
work. On the level of the entire Group and the company, we engaged in activities to support
PERFORMANCE When measured in performance, we did exceptionally well in the employee satisfaction survey: we reached a statistically significant difference when compared to the benchmark in almost all sections. We scored best in work arrangements and the efficiency of departments’ operations, continuous development and implementing new ways of working, competitive salary level and appropriate tools. The personnel also experienced our decision making as efficient, with minimal red tape in
coping at work. The occupational healthcare of the group companies was expanded to cover occupational psychologist’s services, group managers received peer support for remote management and shared remote online exercise classes were offered to employees. Departments organized remote coffee hours and discussed new communication and interaction methods for the department’s internal communications.
LEADERSHIP
the business. As a development target, unclari-
According to the employee satisfaction survey,
ty related to who makes the decisions on what
our personnel rank our business’s leadership
was raised.
culture very high. Compared to other com-
Four Reasons Sustainability Report 2021 > Health and Well-being > Personnel > Annual Report 2020
29
panies, our personnel feel more strongly that the strategy and outlook have been communicated well and changes implemented in an excellent manner. The personnel also feel that they are heard when decisions are being made that affect them and that work performance is compensated fairly and equally. When considering immediate supervisors, employees think that giving feedback on work and acknowledgement on a job well done, as well as the orientation of new duties, has been organized particularly well. As physical distance increased, we felt it was important to pay more attention to maintaining and improving our personnel’s opportunities to participate and interact. Departments launched new remote meeting practices. We also launched a company-wide initiative box with the idea of promoting personnel to actively share their development ideas.
COMMITMENT A high level of employee commitment can be seen in the employee satisfaction survey as an excellent employer image. According to the survey, our personnel feel that the company has developed in the right direction. Employees know the company’s values and goals and feel they are worth striving towards. Employees feel that they are treated fairly and equally and that their professional development is supported. Development targets raised in the survey included the flow of information between departments and the high stress level of the work. In 2020, we continued to work on our internationalization strategy in close collaboration between different departments. The strategy and the development projects were communicated to the personnel as the work progressed. We also invested in the development of the company’s internal processes and inter-departmental flow of information.
Four Reasons Sustainability Report 2021 > Health and Well-being > Personnel > Annual Report 2020
30
ACTION PLAN FOR 2021 The year 2021 is shadowed by the global uncertainty caused by the COVID-19 pandemic and concerns over our health and future. But for Four Reasons, this is a year of significant development investments and building our future. We won’t hit the brakes, on the contrary: we’ll put the pedal to the metal. The COVID-19 pandemic is creating a serious health threat in the entire society, which we will take into account by keeping up with the safety and hygiene practices we implemented last year together with our expanded occupational healthcare services. We are looking after our personnel’s coping at work by paying special attention to departments’ internal interaction and immediate managerial work. The significance of leadership and managerial work is emphasized even further under exceptional circumstances. We want to invest in an excellent managerial work and provide those in managerial roles the opportunity to attend a training program aiming at the completion of the specialist vocational qualification in business management. We will also continue the peer support groups for managers organized by HR. In addition to managers, all employees have the opportunity to further educate themselves. The Transmeri Group Academy provides a diverse training selection, and the personnel have their say in the courses available. In addition to joint trainings, we support individual training needs that are charted in the performance reviews with managers. In 2021, we will determinately further the company’s development projects aiming at the future. The most significant of these are implementing our new brand strategy, system development projects aimed at digitizing our processes and improving our distributor cooperation. These development projects help us to provide the best service for our customers in the future and to create preconditions for growing our business outside the Finnish borders.
Four Reasons Sustainability Report 2021 > Health and Well-being > Personnel > Action plan for 2021
31
RESPONSIBLE CONSUMPTION AND PRODUCTION 32
PRODUCT LIFE CYCLE Our product portfolio consists of technical products designed for professional hair stylists and hair products sold to consumers. From the Four Reasons product portfolio, it’s easy to find suitable hair products for all hair types and the needs for all types of hair and scalp. Four Reasons products are made of vegan raw materials, and their packaging is as environmentally friendly as possible. The quality, safety and sustainability of our products is important for us. We engage in long-term work to ensure and develop the sustainability of our procurement chain, raw materials and packaging. Our goal is to enable sustainable choices for our customer, taking into account environmental aspects from the entire lifecycle of the product.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle
33
RAW MATERIALS GOALS AND INDICATORS
Goal: 100% vegan products.
Indicator: The percentage of vegan Four Reasons products out of the entire Four Reasons product line
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Raw materials
34
WHAT DOES VEGAN MEAN IN HAIR COSMETICS? Vegan cosmetics refer to products that do not contain any animal or animal-derived ingredients. Typical animal ingredients used in hair cosmetics include silk, keratin, collagen, lanolin, beeswax and animal-derived proteins and extracts. These raw materials are used for their conditioning and repairing qualities that add sheen to the hair as well as to add a certain structure to the product consistency. However, there have been vegan, plant-based or synthetic alternatives for animal ingredients used in hair cosmetics for a long time. Vegan ingredients should not be confused with cruelty-free ingredients. Vegan refers to the origin of the raw material whereas the latter refers to the testing and development process of the ingredient. In our products, we use raw materials from known European suppliers. According to EU legislation, testing these raw materials on animals has been banned since 2009. We do not test, and we do not have anyone else test Four Reasons products or their ingredients, on animals. The ingredients used in hair cosmetics have been listed in the INCI list as per the EU cosmetics regulations. It’s good to be aware that the INCI name of the ingredient doesn’t necessarily indicate whether the ingredient is animal-derived, vegan, plant-based or synthetic: they all can have the same INCI name.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Raw materials
35
ANNUAL REPORT 2020
ACTIONS IN 2021
In 2018, we set a goal of giving up animal ingredients in our products by
In 2021, we will develop replacing products
the end of 2020. This meant replacing hydrolyzed keratin, hydrolyzed
for the market for our KC Perm Keratin curling
silk protein and lanolin with vegan ingredients. Keratin and lanolin are
products and clear our stock of already dis-
ingredients extracted from wool. Hydrolyzed silk protein, on the other
continued products that contain non-vegan
hand, comes from the cocoon of the silk butterfly’s larvae.
ingredients.
In 2020, we introduced to the market the Four Reasons No Nothing
We will continue to develop and produce
product line, which we had transformed into 100% vegan, and also
new vegan hair cosmetics innovations by
completed the renewal of the Four Reasons Original product line. Our
growing the 100% vegan Four Reasons hair
other product lines were either already vegan or their composition
product line.
was renewed to be vegan before the start of the year. This means that by the end of the year, the entire Four Reasons product line had been renewed to be vegan. However, in late 2020, our own product selection still featured some non-vegan products whose manufacturing had been discontinued previously. These products will be removed from our selection once the stocks have run out. Non-vegan products in our stock: KC Professional Color Mask Treatment products (contain hydrolyzed keratin) Conditioner of KC Professional Four Reasons Take Away Color products (contains hydrolyzed keratin) KC Perm Keratin 0, 1 and 2 (contains hydrolyzed keratin) KC Bleach Cream (contains beeswax)
”By the end of the year, the entire Four Reasons product line had been renewed to be vegan.”
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Raw materials
36
PACKAGING GOALS AND INDICATORS
Goal 1: Decreasing the amount of packaging waste Indicator: The amount of packaging waste in relation to turnover
Goal 2: Promoting the circular economy For our Four Reasons products, we select only 100% recyclable packaging materials.
Goal 3: Decreasing the use of virgin materials For our Four Reasons products, we select only packaging materials that are made of recyclable materials, bio-based or based on other renewable resources. Indicator: Percentage of Four Reasons products packed in bio-based packaging or packaging decreasing the use of fossil virgin plastic/other virgin material.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
37
OUR ACCOMPLISHMENTS IN 2020 In 2020, we continued the brand renewal work that we started already in 2018, during which our KC Professional products are moved under the Four Reasons brand. An important part of this project has been our mission to find the most environmentally friendly alternatives for all our product packaging without compromising the products’ characteristics or user experience. We study packaging alternatives from the perspective of the packaging material’s environmental friendliness as well as recyclability, aiming at decreasing the use of virgin materials and 100% recyclability. By the end of 2020, the packaging of our entire product portfolio had undergone the renewal process, 99% of our packaging were recyclable when empty and 35% of the plastic packaging of our retail products were either recycled or bioplastic. In addition to the plastic waste generated by our product packaging, we aim to minimize other waste caused by our operations. For instance, we have replaced the plastic shrink film used in sales batch packaging with a box made of recycled cardboard. Cardboard boxes used in product shipments are also 85% recycled cardboard, the printed reclaimed paper used to fill the transportation boxes is 100% made of recycled materials and the packaging tape is recycled paper. Our shipments may not be the prettiest but it’s not our style to spoil the environment to please the eye – beauty doesn’t come in one shape and size, and this applies to packaging, too! Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
38
USE OF PLASTIC IN RETAIL PRODUCTS Cleanse and care products and some styling
products as well as some styling and finish-
products are typically packed in plastic. Plastic
ing products, such as hair waxes and styling
has many qualities that speak for its use in
sprays. Since the packaging renewal initiated
hair cosmetics packaging. It’s light, durable,
in 2018, we have moved on to using recycled
flexible and fairly cheap – these are qualities
plastic, bioplastic or plastic reclaimed from
that facilitate in the transport of the product
the sea in all plastic packaging, if possible.
and improve the user experience. However,
In 2020, we cut the use of virgin packaging
plastic doesn’t break down and degrade in
plastic by producing approximately 270,000
nature and oil is used as its main raw material,
packages made of recycled or bioplastic.
which make it an environmental issue. Over the past years, more environmentally
In 2020, we launched the renewed Four Reasons No Nothing product line, in which
friendly plastic alternatives to virgin, oil-based
all plastic packaging is made of sugar-
plastic have entered the market. These include
cane-based bioplastic. In practice, all
packaging made of partially or entirely out of
shampoos, conditioners, the styling spray
recycled plastic and plastic packaging made
and hair wax of the line were dressed up in
of different bio-based raw materials. Reusing
new bioplastic packaging. The Four Reasons
plastic is already one solution to the world’s
Original product packaging went through
waste problem, and the raw materials of
the same renewal: sugarcane-based bioplas-
bio-based plastic can be used to significantly
tic was selected also as the material for the
decrease the carbon dioxide emissions from
line’s plastic bottles, jars and tubes. At the
packaging.
same time, communications promoting the
The Four Reasons product portfolio uses plastic in the packaging of cleanse and care
recycling of the products were added to the packaging.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
39
THE USE OF PLASTIC IN THE FOUR REASONS PRODUCT PACKAGING IN LATE 2020
FOUR REASONS PROFESSIONAL • Bottles for cleanse and care products and Salt Mist are made of 100% recycled plastic but we will move gradually to bio-based sugarcane-based packaging • Wax jars are made of bio-based sugarcane plastic • Plastic parts in packaging of styling and finishing products are made 100% of recyclable plastic • Packaging is 100% recyclable
FOUR REASONS NATURE • All bottles are made of recycled plastic and packaging adhesives of cellulose-based plastic • The Rebuild Treatment jar is made of bio-based sugarcane plastic • Packaging is 100% recyclable
FOUR REASONS NO NOTHING • The bottles of cleanse and care products and Stylish Mist are made of bio-based sugarcane plastic • The wax jar is made of bio-based sugarcane plastic • Plastic parts in packaging of styling and finishing products are made 100% of recyclable plastic
FOUR REASONS ORIGINAL • The bottles of cleanse and care
FOUR REASONS COLOR MASK • No corresponding alternative
products are made of bio-based
has been found for virgin plastic
sugarcane plastic
packaging without compromising
• The plastic bottles and caps of styling and finishing products are made of bio-based sugarcane
the product’s qualities or user experience • Packaging is 100% recyclable
plastic • Packaging is 100% recyclable
• Packaging is 100% recyclable
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
40
USE OF PLASTIC IN TECHNICAL PRODUCTS In hair cosmetics, technical products refer to
The packaging of the Four Reasons technical
the products used by professional hair stylists,
products use plastic in the caps of hair color
such as hair colors, developers and bleaching
tubes, developers and bleaching and curling
and curling agents. When measured by sales
agents. The use of plastic in these packaging
volume, hair colors are the largest product
is supported by many factors: the purpose of
group, and they are typically packed in an alu- the packaging is to protect the product and minum tube. When coloring hair, the developer, for these products, plastic has been deemed or hydrogen peroxide, mixed with the hair color to have the best qualities for that, at least for is often packed in plastic, which is excellent
now. However, our goal is to cut the use of virgin
for protecting the product and maintaining
plastic also in our technical products and to
its qualities during transport and storage.
increase the use of recycled materials. In 2020,
Plastic and different combinations of plastic
we renewed the packaging of our bleach
and other packaging materials are most often
products into packaging that reduces the use
used also in the packaging of other technical
of plastic and improves recyclability.
products.
CASE: THE PACKAGING RENEWAL OF FOUR REASONS BLEACHES The packaging materials of our bleaches to be launched in
To improve the environmental
2021 were updated in 2020. Of
friendliness of our products, we
our bleaches, Ultralift 9+ and
decided to give up the branded
Multibleach were packed in
bleach packaging completely,
resealable bags made of alumi-
because their issues included
num and plastic. The bag had a
plastic consumption and poor
durable structure, and packing it
recyclability. We replaced them
in freight boxes was effective since
with 100% recyclable, light and
the product didn’t take up a lot of
air-tight transport packages from
space. However, the bag made of
which the bleaching powder is
aluminum and plastic was mixed
emptied into each bleach’s own,
waste, so it could not be sorted as metal or plastic recycling. KC Bleach was sold in two
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
ing waste compared to the bags.
We replaced them with 100% recyclable, light and air-tight transport packages.
reusable container in the hair salon. The packaging renewal decreases
kinds of packages: in plastic bags
both the use of plastic and the
and jars. The plastic bag was
carbon dioxide emissions from
light to transport but broke easily
transport as the packaging fits
during transportation, which is
into a smaller space than before.
why it had to be double packed in
With the renewal, we will also sig-
another plastic bag. The bleach
nificantly decrease the amount of
jars, on the other hand, accumu-
mixed waste accumulated in hair
lated significantly more packag-
salons.
41
OUR ACTIONS IN 2021 Our journey towards more sustainable packaging continues. Charting environmentally friendly packaging is part of our product development process, whether it concerns launching a new product or renewing the packaging of existing products. In 2021, we will introduce to the market the Four Reasons Original product line packed in bioplastic, the Four Reasons Original Scalp product line packed in recycled plastic and PEFC certified cardboard and the Four Reasons Original Takeaway Color product line packed in FSC certified cardboard. We will continue to chart especially the packaging materials of our technical products from the environmental perspective. We will begin replacing the aluminum in the Four Reasons Optima hair color tubes with recycled aluminum in 2021.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Packaging
42
PRODUCTION GOALS AND INDICATORS
Goal 1: All plants that produce Four Reasons products have ISO 22716 certification that ensures that all stages of the production and after it are conducted according to the standards of good manufacturing practice. Goal 2: 100% of our suppliers are committed to our Supplier Code of Conduct by 2025. Goal 3: We aim to increase local manufacturing and production at plants with ISO 14001 environmental certification.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Production
43
OUR ACCOMPLISHMENTS IN 2020 The quality of our products and production according to good manufacturing practice is the starting point of our product development. We manufacture products only at ISO 22716 certified plants, which can verify operations according to good manufacturing practice. In addition, the majority of Four Reasons products made in 2020 were produced in plants with ISO 9001 certification and/or ISO 14001 environmental certification.
CASE STUDY: TRANSMERI LOGISTICS MANUFACTURES WITH RENEWABLE ENERGY Four Reasons cleanse and care products are produced in Finland at the Transmeri Logistics Oy plant, which transferred to using 100% certified wind power in 2020.
OUR ACTIONS IN 2021 In 2021, we will chart opportunities for local production on a productspecific basis. We communicate our Code of Conduct to all of our suppliers and ensure that our production chain is committed to our ethical principles. Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Production
44
PRODUCT USE GOALS AND INDICATORS
A product that matches your needs and is used until the last drop is a sustainable purchase. Our goal is to reduce the number of hitand-miss purchases by our customers to help them choose the correct product.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Product use
45
OUR ACCOMPLISHMENTS IN 2020
OUR ACTIONS IN 2021
During the year, we renewed our product
bleach products in Finnish and English. Video
packaging and using our four reasons, we clarified the hair problems the product can be used to solve and for what kind of hair it is best suited. We also renewed our website we use to communicate the different characteristics and purpose of use of products to consumers. We initiated regular free-of-charge online trainings for professional hair stylists to support the use of our products in the daily work at hair salons. A total of 35 online trainings were organized, and they were attended by 6,200 people. In addition to digital trainings, we trained approximately 500 professional hair stylists in their own salons to use our products. Alongside product training courses, we also provided different trainings and showcases that maintain and develop hair stylists’ expertise. They were attended by approximately 1,500 Finnish professional hair stylists.
In 2021, we will launch a new video training set for our Four Reasons Luxima hair color line and trainings enable correct use of our products, which decreases hair dying mistakes at hair salons and resulting excessive use of products. We will continue to provide free-of-charge online trainings for professional hair stylists regularly every other week, and we’ll also provide business training courses and other training events supporting the use of our products. In addition to our training selection, we produce social media content supporting the use of our products on an almost daily basis and help in the daily life of hair salon work through our multi-channel customer service. We also aim to decrease the number of consumers’ hit-and-miss purchases by producing content on our website, social media and product sales points to help consumers choose the correct products and use them as instructed.
In addition to our main market area Finland, we are also ensuring the sufficient product knowledge of the sales, marketing and training organizations in our export countries by producing production information in English and organizing training courses and meetings.
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Product use
46
DISPOSING OF OUR PRODUCTS GOALS AND INDICATORS
Goal 1: We minimize loss caused by our operations Indicator: Comparing the number of products disposed of at an annual level
Goal 2: We promote the circular economy by drawing up recycling instructions for all of our products in our product packaging and/or website Indicator: Percentage of products with recycling instructions in the product packaging and the percentage of products with recycling instructions on our website
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Disposing of our products
47
OUR ACCOMPLISHMENTS IN 2020 In 2020, we reached the final stretch of the
SHAMPOOS AND CONDITIONERS
ucts are moved under the Four Reasons brand. In addition to the brand renewal, products
• Recycled as plastic waste after a quick rinse
PLASTIC PACKAGING
• Packages containing product belong to mixed waste
STYLING PRODUCTS, ALUMINUM PACKAGING
atically to minimize waste during the project. al of our products, we added symbols that
OUR ACTIONS IN 2021 We will continue the packaging renewal connected to our brand renewal, and we will take our stocks into account in the scheduling of the packaging renewal’s scheduling and aim
have been discontinued and renewed systemIn connection with the packaging renew-
• Pumps are sorted as mixed waste
STYLING PRODUCTS,
brand renewal work we started already in 2018 during which our KC Professional prod-
• Recycled as plastic waste after a quick rinse
• Completely empty aerosol packaging can be placed in metal recycling
to minimize packaging and product loss. We
• Aerosol bottles containing the product must be sorted as hazardous waste
packaging that is renewed this year.
will add recycling symbols to all of our product We will continue our communications that promote product recycling and add prod-
HAIR COLORS
facilitate recycling to our product packaging. We always add information about packaging
• Hair color tubes must be completely emptied using a tube squeezer, after which they can be placed in metal recycling
uct-specific recycling instructions on our website alongside the general recycling instructions.
• Liquid hair color is hazardous waste, dried hair color mixed waste
material and the recyclability of the packaging in new packages.
• Cardboard boxes of hair colors can be placed in cardboard recycling BLEACHES CURLING AGENTS
• Recycled as plastic waste after a quick rinse • Products containing curling agents are hazardous waste • A completely empty and washed package can be placed in plastic recycling
DEVELOPERS
• Products containing curling agents are hazardous waste • A completely empty and washed package can be placed in plastic recycling
TRANSPORT BOXES AND PACKAGING MATERIALS
• Packaging cardboard and tape as well as brown paper can be sorted as cardboard recycling • Packing lists, campaign ads and other paper material belongs to paper recycling
Four Reasons Sustainability Report 2021 > Responsible Consumption and Production > Product life cycle > Disposing of our products
48
C L I M AT E A C T I O N S 49
Climate change is a threat that affects the entire humanity and the planet. We cannot turn back time and make it disappear but we should use all possible methods to mitigate it. The goal of the Intergovernmental Panel on Climate Change (IPCC) is to limit climate warming to 1.5 degrees Celsius by reducing greenhouse gas emissions. The goal stated in the Paris Climate Agreement is reaching carbon neutrality by 2050. However, the current actions are not sufficient: success requires effort from all operators in society. At Four Reasons, we participate in the global climate efforts and have a systematic journey planned towards carbon-neutral operations.
Four Reasons Sustainability Report 2021 > Climate Actions
HOW IS CARBON NEUTRALITY DEFINED? Carbon neutrality refers to a situation in which
gas emissions with the Climate Commitment,
the maximum amount of carbon dioxide
which focuses on direct emissions from the
emissions does not exceed the amount of car-
company’s operations, emissions from goods
bon dioxide that can be sequestered from the
transport and emissions for personal transport.
air in carbon reservoirs or sinks. This means
The shared climate goal of the entire Trans-
that carbon-neutral activities do not promote
meri Group is to make its properties, trans-
global warming. To achieve carbon neutrality,
port and traffic carbon-neutral by 2035. The
the primary thing to do is to cut back emis-
goal has been limited to include these three
sions by using renewable energy sources or by
sections because decreasing the use of fossil
improving energy efficiency. Produced emis-
fuels is the single most important way to stop
sions can also be compensated by sequester-
climate change and in our operations, these
ing an amount of carbon dioxide matching
areas are the best ways to affect the use of
the emissions from the atmosphere.
fossil fuels. Four Reasons aims to reach the goal
According to the GHG-Protocol (Green-
faster than the speed of the Group, already by
house Gas Protocol) developed to calculate
the end of 2029. Our primary action is always
environmental impacts, emissions are divided
reducing the carbon dioxide emissions gener-
into three scopes: Scope 1, Scope 2 and Scope
ated by our business operations but, if neces-
3. Finland Chamber of Commerce guides
sary, we will also compensate emissions caused
Finnish companies in reducing greenhouse
by our operations or generate carbon offsets.
50
OUR CLIMATE GOALS AND ACTIONS
SCOPE 2: DEFINITION Indirect emissions from bought energy refer to the emissions caused by electricity, steam, heating and cooling purchased for the organization’s own use. Emissions are caused by the use of fuels at energy production plants, which is why they are “indirect”
SCOPE 1 AND 2: AIMING FOR CARBON NEUTRALITY BY THE END OF 2024 In 2020, we started our emissions calculation and investigated the opportunities to reduce the emissions caused by our operations.
SCOPE 1: DEFINITION Direct greenhouse gas emissions caused by emission sources that are owned or managed by the organization. Examples:
in relation to the “direct” emissions of Scope 1.
SCOPE 2: ACTIONS In 2020, our calculated electricity consumption increased by
i)
Energy production in properties
approximately 5 per cent from the previous year but, in reality,
ii)
Emissions from vehicles
no significant changes took place in the electricity consumption.
iii) Intentional or accidental leaks
The difference in calculations is caused by the measuring meth-
iv) Own production process if it includes the release of
od, in which the electricity consumption of our rental storage is
greenhouse gases
calculated as a percentage of the total electricity consumption of the storage hall surrounding it, which increased in 2020. The
SCOPE 1: ACTIONS Four Reasons is a sales and marketing organization that does not own any property or handle its own manufacturing. As a result, the most significant action in line with Scope 1 to cut down the
electricity consumption of our office premises decreased by approximately 13 per cent due to increased remote work. In 2021, we will chart alternatives for the energy used in our facilities, or office and storage premises, and negotiate with our lessors about environmentally friendly energy solutions.
carbon dioxide emissions from our own operations is to decrease the emissions from vehicles owned by us.
Miraculos’s carbon footprint (tCO2e)
In 2020, we reduced the use of fuel by approximately ten per
250,00
cent from the previous year. The most significant reason for the
200,00
emission reduction was the decrease of sales agents and trainers’ work-related driving due to the COVID-19 pandemic. In addition
150,00
to that, we also paid attention to making driving plans more
100,00
efficient. In 2021, we switched to using biodiesel in cars owned by the company, and we recently started a gradual change towards electric cars.
50,00 0,00 2019 Direct emissions (Scope 1)
Four Reasons Sustainability Report 2021 > Climate Actions > Our Climate Goals and Actions > Scope 1 and 2
2020 Purchased energy (Scope 2) 51
SCOPE 3: AIMING FOR CARBON NEUTRALITY BY THE END OF 2029
CALCULATION AND BASELINE
In the first report, our carbon footprint calculation covers Scope 1 and Scope 2, as from these emission sources we had reliable data available. We aim to expand our calculations to also include scope 3 emissions in 2022.
The emissions of Miraculos Oy are reported as tons of carbon dioxide equivalents (tCO2e)
CARBON FOOTPRINT
Source of emission
2019
2020
Change
Direct emissions (Scope 1)
52.16
47.26
-9.4 %
173.83
182.16
4.8 %
Indirect emissions
SCOPE 3: DEFINITION Other indirect emissions include all emissions in the value chain caused indirectly by the production of the reporting organization’s products or services. These are divided into two: (1) ”Upstream” – emissions caused by operations that enable the production of the reporting organization (2) ”Downstream” – emissions caused after the manufacturing of the products and services
SCOPE 3: ACTIONS
from purchased energy* (Scope 2) Transportation and distribution (Scope 3)
Emissions have not
Business travel
yet been calculated
(Scope 3) Commuting (Scope 3) Total
225.99
229.41
1.5 %
Miraculos’s carbon footprint (tCO2e) 250,00
In line with the policies of Transmeri Group, we commit to the carbon neutrality goal for the emissions of our goods transport and personal traffic. In 2021, we will seek out and select environmentally friendly transport companies to handle our goods transport. In addition, we will build an incentive model to decrease the emissions caused by our sales consultants’ cars.
200,00 150,00 100,00 50,00 0,00 2019 Direct emissions (Scope 1)
Four Reasons Sustainability Report 2021 > Climate Actions > Our Climate Goals and Actions > Scope 3
2020 Purchased energy (Scope 2)
CALCULATION PRINCIPLES: Climate change: Transmeri Group follows the calculation principles of the Greenhouse Gas Protocol. The operative limitation of emissions calculation includes only Scope 1 and Scope 2 emissions categories in line with the GHG Protocol but not yet the Scope 3 figures. In our emissions calculation, we apply the precautionary principles, and we have utilized the services of an external consultancy to execute the emissions calculation. 52
Feel like giving feedback? Eager to learn more? Please feel free to contact us: Responsible consumption and production: Pia Nurmi Product Specialist + 358 44 775 7522 pia.nurmi@fourreasons.fi Health and well-being: Johanna Strömsholm Head of Marketing and Communication + 358 44 011 1584 johanna.stromsholm@fourreasons.fi Climate actions: Jyrki Hakala CEO + 358 40 534 6434 jyrki.hakala@fourreasons.fi
FOUR REASONS Salomonkatu 17 A | 00100 Helsinki, Finland Tfn. 0201 410 410 | www.en.fourreasons.fi/
Illustration: Venla Vaattovaara @muijavaara
