10 minute read
OUR SUSTAINABILITY APPROACH
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.
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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:
RESPONSIBILITY AND SUSTAINABILITY
Before the COVID-19 pandemic, consumers’ greatest causes for concern related to the environment were the use of plastic and climate change. With the pandemic, attention was turned to the social responsibility of businesses. As a whole, consumers’ requirements for businesses’ environmental and corporate social responsibility increased, and consumers make more value-based choices. COMFORT
The restrictions caused by the pandemic increased forward planning in consumer behavior. The transformation expedited the growth of digital services and online shopping. A generational gap can be seen in purchase behavior: younger people prefer digital channels whereas the more aged appreciate face-to-face human contact. Regardless of channel and age group, consumers always expect their shopping experience to be smooth and comfortable. DIGITAL REALITY
Digital devices and the virtual world have become an inseparable part of our daily life. Through them, we are always in contact with others without actually being physically close. The limits of digital and physical interaction are dissolving: the younger generation no longer knows the boundary between these two. Consumers expect all the products and services they use to be available via digital devices. RESILIENCE
Mental well-being has become the key indicator of good health pursued by all consumers. The pandemic wreaks health-related and financial uncertainty and a sense of insecurity, taking its toll on our mental well-being. Consumers are always on the lookout for new solutions to support their life management and to improve their personal health and well-being. AWARE CONSUMERS
Financial uncertainty leads consumers to make more carefully considered purchase decisions. Consumption choices are more often dictated by the product’s value for money and, on the other hand, its impacts on well-being and the environment – however, people are not willing to make sustainable choices if product quality is compromised. We can influence the experienced quality of the product significantly by investing in the shopping experience in both physical and digital service channels.
UN SUSTAINABLE DEVELOPMENT GOALS
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.
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.”
ETHICAL PRINCIPLES OF TRANSMERI GROUP
As part of Transmeri Group, Four Reasons is committed to conducting its business in an ethical and sustainable manner, and it expects a similar level of commitment from its partners. We comply with the ethical principles created by Transmeri Group that are based on internationally recognized norms, guidelines and principles by the United Nations (UN), International Labour Organization (ILO) and Organisation for Economic Co-operation and Development (OECD). Our ethical principles are guided by the ten principles of the UN Global Compact Initiative.
These ethical principles compile guidelines of the kind of business we want to conduct and what kinds of expectations we meet in our daily work with each other, our customers and other stakeholders. The ethical principles support us in our continuous work to earn and maintain the trust of the surrounding society, and they represent the values of our Group.
All employees of Transmeri Group, including those of Four Reasons, must comply with these ethical principles despite the status of the employee in the organization or the nature of the employment. In addition to our employees, our ethical principles also apply to external parties, such as subcontractors, intermediaries and consultant that work in cooperation with or on behalf of Four Reasons or other Transmeri Group companies.
GOALS AND INDICATORS
Goal 1: 100% of our personnel have been trained about the ethical principles of our Group and our company.
Indicator: the accomplishment marks of personnel’s Code of Conduct: the percentage of active employees who have received a training about the ethical principles Goal 2: 100% of our suppliers are committed to our Supplier Code of Conduct by 2025
ETHICAL PRINCIPLES:
1. Respect for human rights and dignity
2. Adherence to laws and regulations
3. Prohibition of the use of child labor
4. Prohibition of forced labor and disciplinary action
5. Decent working conditions and wages
6. Prevention of discrimination
7. The right to organize and unionize
8. Ensuring occupational health and safety
9. Protection of the environment
10. Ensuring data privacy and protection
11. Ethical business practices
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.
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:
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.
OUR SUSTAINABILITY GOALS
Breaking the mold of beauty
The healthiest customers in the hair salon sector
The most inspiring workplace in the Finnish beauty industry Personnel 100% committed to the Code of Conduct
Sustainable product selection taking into account environmental aspects from the entire life cycle of the product
Carbon neutrality by the end of 2029
HIGHLIGHTS OF 2020
HEALTH AND WELL-BEING
RESPONSIBLE CONSUMPTION CLIMATE ACTIONS
• 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
• 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
• We reached one of our important goals: Four Reasons products were renewed to be 100% vegan • The packaging material of 57 different product items was replaced with bio-based, recyclable plastic
• 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 • We took first steps in sustainability reporting and starting our emissions calculations • Our direct emissions decreased by 9,4 %.
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.
Our key stakeholders and their expectations for us: CONSUMERS
For consumers, hair care is a daily routine, above all. Despite that, the stakes are high: the daily gamble is looking like yourself. The core role of hair products is to make everyday life easier and help get a good vibe: in other words, to create a good hair day. The product and packaging must be sustainable but not at the cost of the product’s quality. Our users appreciate our products’ value for money and our groundbreaking and courageous approach to beauty care that they can identify with.
CUSTOMERS
For professional hair stylists, hair products are a mix of passion, daily tools and an extension to their own craft. Products must be 100% reliable and safe but also economical with a pleasant user experience. In addition to functional products, our customers expect comprehensive service from us to support their business: personal service, fast deliveries, training to develop the professional competence of hair stylists and marketing that promotes the sales of the hair salon. EMPLOYEES
Our personnel are a tight-knit and result-oriented working community that has a passionate approach to hair cosmetics and the hair salon sector. Above all, our employees value our company’s continuous, customer-oriented development and our operating culture, with no unnecessary red tape and where everyone’s voice is heard. They expect fair and just compensation, equal treatment and personal development opportunities from their employer.
OWNERS & THE BOARD OF DIRECTORS
Our owners expect our business to turn a profit in the long term and they steer us towards sustainable decisions with their ownership strategy. Our owners specifically want to focus on business opportunities that create a better future for humanity and the entire planet. Sustainability is expected to steer the daily development of our business operations. PARTNERS
Our key partners include factories and suppliers as well as distributors of our products who expect long-term cooperation, continuity and reliability from us. Our other partners include transport companies and businesses providing research, consultation, design and marketing services. As a business that buys services, ethical and reliable business operations are expected of us.
