Sustainability Review 2020

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Sustainability Review 2020

Sustainability Review 2020Letter from the President and CEO 2Highlights 2020 3Sanoma Sustainability Strategy 4Inclusive learning 5Sustainable media 9Trustworthy data 13Vital environment 16Valued people 20Responsible business practices 24Sustainability principles and guidelines 25Sustainability governance model 26Supply chain management 26Economic value distributed 27Management approach 28Stakeholder engagement and materiality review 31Adopting the Sustainable Development Goals 33Data and assurance 341Reporting scope and practices 34Sustainability performance indicators 35GRI Content Index 42Independent Assurance Report 50Sanoma’s Sustainability Review describes our sustainability actionsduring 2020. It is part of the Sanoma Annual Review. Our sustainabilitywork covers social, environmental, and economic responsibilitiesthroughout the value chain, with human rights integrated into ourbusiness. All Sanoma’s reports and further information about Sanomacan be found at sanoma.com.

LETTER FROM THE PRESIDENT AND CEOLetter from the President and CEOWhen the coronavirus pandemic hit in March 2020, it broughteverything to a halt. It made us consider what matters most. Forus at Sanoma, this was keeping our people and customers safe,contributing to society through reliable and timely news andagile learning materials and platforms that helped teacherswith their needs for effective remote teaching. Sanoma impactsthe lives of millions of people every day throughout Europe andin the midst of the pandemic, our purpose as a company wasmore evident than ever. Our purpose is to support teachersand ensure that all students can reach their potential with thehighest-quality learning resources. We exist to generate independent Finnish news and local entertainment together withlong-term value for all our stakeholders. Through our productsand services, we aim at creating better understanding forpeople, communities and businesses to evolve and thrive.Although sustainability is built into our purpose and DNA, wewanted to ask ourselves: ‘How do we best create our impact,and is this done in the most responsible way?’ This pushed usto invest in clarifying our sustainability efforts during 2020.Firstly, we identified the global issues we have a role in solvingand committed further to the UN Sustainable DevelopmentGoals through our sustainability efforts. Despite the pandemic,we also wanted to ask our stakeholders what matters most tothem, and we really appreciate the enthusiasm and time ouremployees, customers and suppliers took to identify relevantsustainability topics for Sanoma. Based on this assessment, weupdated our Sanoma Sustainability Strategy resulting in a focuson six themes: Inclusive learning, Sustainable media, Trustworthy data, Vital environment, Valued people and Responsiblebusiness practices.goal is to provide trusted Finnish journalism, which is essentialin an open and democratic society, and to offer inspiring entertainment now and in the future.In using the data our customers trust us with, our highestpriority is to respect the privacy of our customers and users.At the same time, we believe that through data we can leadthe digital transformation of education and develop relevant,inspiring and captivating media content. We also plan to furtherinvest in developing responsible and transparent use of AI.Although we operate in a low-carbon industry, it is a priority toreduce our climate impact and build fact-based awareness ofsustainability. Our goal is to have net-zero emissions by 2030.We are also committed to promoting the equality of ouremployees by advancing diversity and providing opportunitiesfor continuous personal development. An inspiring workplacecalls for people working towards shared goals in a secure andpositive environment, and therefore we continue to invest inthe health and safety of our employees. At the same time, thefoundation for our daily work is responsible business practices.Rigorous ethical standards, supply chain integrity and partnerships are fundamental for us.This review describes our updated Sustainability Strategy andthe actions taken during 2020. Ultimately, sustainability comesdown to clear, consistent everyday actions, and our work as asustainable company will continue on many fronts.Susan DuinhovenPresident and CEOIn practice, this means that in our learning business we aim todevelop the inclusiveness of our learning solutions to make sureall students achieve their potential. In our media business, our2Sanoma Sustainability Review 2020

HIGHLIGHTS 2020Highlights 20201Tools for remoteteachingDuring the rapid shift to remoteteaching, our goal was to supportteachers and we decided to offerschools free access to our digitallearning methods to supportremote teaching and learning.According to our Corona Effectson Teaching in Europe -survey85% of teachers spent more timeon their work during their distancelearning period than before.Learn more2Fact-basedand fast-pacednewsConstantly updated corona newsand growing readership demonstrate the importance of fast andreliable access to informationduring exceptional times. Theamount of coronavirus pandemicnews exceeded the height of theobservation tower in Tampere bySeptember, with 7,500 articlespublished at Ilta-Sanomat, themost read digital news media inFinland.Learn more5Zero emissionsby 2030During 2020 we calculated ouremissions according to the Greenhouse Gas Protocol throughoutour supply chain for own operations (Scope 1 and 2) and thesupply chain (Scope 3). As a result,we set a climate target of net-zeroemissions by 2030 thoughout thevalue chain.Learn more6ProtectingprivacyFor us, every day is a privacy day.Our Sanoma Privacy Programmeis designed to protect the data weuse and our Privacy Championsnetwork extends throughout Europe and our businesses. During2020, 95% of our employees completed our online privacy training.3EmpoweringentertainmentIn 2020, the Finnish music industrysuffered greatly from the pandemic. Our campaign called ‘Annasen soida’ supported artists andmusic professionals by providingfinancial support and opening aradio channel for stories behindthe music.Learn more4Keeping ourpeople safeOvernight our almost 5,000employees shifted to workingremotely. During the pandemic ithas been our priority to keep ourstaff safe. As a result of our actionsto support remote working withmodern tools and offer mentaland physical wellbeing services,our annual Employee Engagement Survey reached all-time highresults.Learn more7Adopting theUN SDGsThe UN Sustainable DevelopmentGoals (SDGs) are the blueprintfor achieving a more sustainablefuture for all. We are committed toworking towards a more sustainable future for all by implementing nine SDGs into our updatedSustainability Strategy that arerelevant to our business.Learn more8New SanomaSustainabilityStrategyThrough extensive stakeholderengagement, we updated ourSanoma Sustainability Strategywhich was approved by the Boardof Directors in December 2020.Learn moreLearn more3Sanoma Sustainability Review 2020

SANOMA SUSTAINABILITY STRATEGYSanoma Sustainability StrategySanoma impacts the lives of millions of people every day. We work hard to provide them with the highest-quality learning resources and Finnish independent media and local entertainment. We aim tocreate better understanding for people, communities and businesses to evolve and thrive. To improve our sustainability efforts, we conduct regular materiality assessments and stakeholder engagement for our impact and activities. Our most recent assessment was conducted in autumn 2020. As a result, we identified six material themes that provide the framework for our work. The SanomaBoard of Directors approved the strategy in December 2020. The updated Sanoma Sustainability Strategy is designed to maximise our positive impact on society – our ‘brain-print’ – and to minimiseour environmental rthydataVitalenvironmentValuedpeopleWe develop inclusive learningsolutions that help all students toachieve their potential.We provide trusted Finnishjournalism and inspiringentertainment, now and inthe future.We use the data you trust uswith to make learning andmedia better.We act to reduce our climateimpact and build fact-basedawareness of sustainabilityWe promote equality and providean inspiring workplace withexcellent opportunities to develop.Responsible and ethical business practices and supply chain integrity are fundamental for us.4Sanoma Sustainability Review 2020

INCLUSIVE LEARNINGWe develop inclusivelearning solutions thathelp all students toachieve their potentialEducation is a fundamental right and key to achieving sustainabledevelopment. We believe every student deserves equal opportunitiesin life. It is our mission to help all students to reach their full potential.In a world that’s changing faster than ever, students and teachersneed learning solutions that can prepare them for this exciting future.Sanoma Learning is the leading European K12 learning companysupporting teachers and serving more than 20 million students acrossEurope. Inclusive learning is one of the six key themes of the SanomaSustainability Strategy.5Sanoma Sustainability Review 2020

INCLUSIVE LEARNINGINCLUSIVE LEARNINGWe develop inclusive learning solutions thathelp all students to achieve their potentialSupporting teachers during the pandemicInclusive learning and teaching recognises all students’ right toa learning experience that respects diversity, enables participation, removes barriers as well as anticipates and considersa variety of learning needs and preferences. For us this meansdesigning and delivering teaching and learning methods thatimpact all students to engage them with the curriculum andachieve their full potential.During 2020, all students’ right to learn became more topicalthan ever. According to Corona Effects on Teaching in Europe-survey during May–June 2020, teachers were struggling todo their basic tasks during the pandemic. Arranging examsand managing the classroom remotely was most challenging;85% of teachers spent more time on their work during theirdistance learning period than before. In the beginning of thepandemic, teachers also felt that they had learned new skillsand adopted a variety of digital tools. During the exceptionalyear 2020, supporting teachers and students has been our mostimportant task. To respond to the teachers’ needs, we decidedto open some of our digital learning services for schools freeof charge.Learning solutions that support diversityand differentiationTo develop inclusive and sustainable learning solutions, weproduce and design learning services that help teachers builda positive and effective educational environment, which leadsto better learning outcomes. To produce best-in-class learningservices, our educational solutions are based on up-to-date6scientific knowledge and verified information. Educationalpublishing is a highly local business and when developing ourlearning materials, we follow the curriculum requirements setout by each country we operate in.We engage with local authors and teachers who developthe learning materials together with our editors. The processincludes checking of facts, languages and curriculums as wellas testing with reference groups. In case a sensitive editorialsubject comes up, we have a procedure in place to take relateddecisions to the Sanoma Learning Leadership Team (SLLT).We realise that if the children and teachers recognise themselves in our materials and feel acknowledged, they will bemore engaged, and will achieve better learning results.Therefore, we put effort on evaluating the diversity aspects ofour learning content and platforms and co-create them withauthors from diverse backgrounds and experts with insightsstimulating diversity. Our learning materials are also enhancedwith a wide variety of digital learning assets to further improvelearning impact – engagement, learning outcomes, and teacherworkflow efficiencies. By combining educational technologiesand pedagogical expertise, we can offer learning products andservices with the highest learning impact.Our sustainability targets123We co-create high-quality and motivatinglearning materials with teachers fittingthe local curriculumWe develop inclusive learning solutionsthat support diversity and differentiationWe promote equal access to educationKey performance indicatorsLearning impact (% of teachers whoagree that our materials help studentsreach curriculum objectives)Learning efficacy of our services (% ofteachers who agree that our materialssupport efficiency)Student engagament (% of teacherswho agree that our materials help themmotivate students)The reliability of our digital services is key to us and data is anintegral part of our learning solutions. Protecting personal datathroughout the entire lifecycle of the data used is at the core ofour everyday business. Our trustworthy and fair data protectionpractices are described on page 13 in more detail.Sanoma Sustainability Review 2020

INCLUSIVE LEARNINGTo follow up on our impact, we annually conduct a SanomaLearning Impact Framework survey (SLIF). According to thelatest results of 2019, teachers evaluate the impact of ourmaterials as ‘high’ on a scale of strongly agree to stronglydisagree. The survey has been conducted annually since 2015,but in 2020 it was replaced by the Sanoma Corona Effects onTeaching in Europe -survey conducted to support teachers withremote teaching practices during the pandemic.Promoting equal access to educationTo promote learning opportunities for all, we support initiatives to promote equal access to education in our operatingcountries. Educational systems vary between the countries andtherefore we cooperate locally with NGOs, governmental andother organisations to ensure best access for all.During 2020 our local companies were especially active inensuring that schools could continue to operate and studentscould keep on learning despite the pandemic.Building education and learning solutionsin the NordicsIn Scandinavia, our two strong businesses, Sanoma Pro inFinland and Sanoma Utbildning in Sweden provide the highestquality learning materials for schools throughout K12 ie.primary, secondary and vocational education.Sanoma Pro, founded in 1878, is the leading provider of learningsolutions and the forerunner in the development of digitallearning solutions in Finland. Almost 50,000 teachers use ourproducts in more than 3,000 schools around Finland. Throughthe constant development of our digital service, Kampus, weensure location independent teaching and learning, accessibility and that the needs of different learners are met from theperspective of learning materials.Tutorhouse Digiclass enables smaller schools to offer moresubjects and hire teachers remotely. Each school may nothave enough students to hire a teacher for all more minor7subjects. Through Tutorhouse Digiclass, students have accessto a broader range of classes. Tutorhouse is Sanoma Pro ssubsidiary.Sanoma Utbildning has a strong market position in developinglearning materials for math, language , social sciences, history,law and philosophy for students on all levels. Sanoma Utbildning supports access to education for example through LexiaProvia, a digital tool to help students in K12 with reading andwriting difficulties or those who have dyslexia. The material isproduced with support from The National Agency for SpecialNeeds Education and Schools in Sweden.Supporting millions of student and teachersin PolandNowa Era is a leading learning material provider in Poland witha wide range of educational solutions for all school types andsubjects, including foreign languages, publications for exampreparartion and products for children with special educational needs. Education is supported by VULCAN, Nowa Era’ssubsidiary, through a modern school management software.We also develop dedicated tools for remote learning andmaterials to give psychological support for those involved inonline studying. By celebrating Children’s Week in Poland weturned adults’ attention to the needs and problems of childrenin the online-learning period. Nowa Era annually organises theEducation designers competition supported by the Ministry ofEducation, Ministry of Digital Affairs and leading universities inPoland. Nowa Era also arranges Poland’s largest literary ‘Kids GotTalent’ competition to encourage children in reading and writing.Providing equal access to education inthe Netherlands and BelgiumMalmberg is our leading educational publisher in the Netherlands. Our MAX SE learning solution facilitates both personalised learning and individual practices allowing schools toimprove performance through increased insight in personalstudent results.92%of teachers say Sanoma’smethods support them inreaching curriculum objectives.83%of teachers feel that our learningmaterials support them inengaging and motivating students.87%of teachers say that we are ableto support them in teaching andmanaging their classes efficiently.85% of teachers spent more time ontheir work during their distancelearning period than before.To support them, we offered schoolsfree access to some of our digitallearning methods.Spring 2020 we supported schoolsin the rapid shift to remote learningby opening up our digital learningsolutions for free to teachersand students.Sanoma Sustainability Review 2020

INCLUSIVE LEARNINGEducational publisher VAN IN is the market leader in Belgiumand plays an important role in enabling the education oftomorrow where differentiated education is increasinglyimportant. Therefore, we focus on personalised learning. Accessto education is free in Belgium, but parents pay for learningmaterials.Bingel is an adaptive learning environment developed inBelgium and widely used by many Sanoma Learning companiesaround Europe with local languages. Bingel allows pupils inprimary education to learn at their own pace and level and isaccompanied with powerful dashboarding that allows teachersto monitor progress on class and individual levels. Also Eduarteand Magister offer digital learning environments, apps andadvanced teaching and learning solutions in the Netherlands.Through a Robin Foundation project VAN IN together withother publishers, NGOs and governmental organisations helps20,000 vulnerable students with costs of learning materials.VAN IN also supports Bednet, which is an NGO in Belgiumensuring that children and young people temporarily unableto go to school due to illness or accident can take part in theclassroom online.Empowering teachers through an award-winninglearning management systemitslearning is Europe’s largest provider of learning management systems (LMS). The goal of itslearning is to empowerlearners by empowering teachers. We believe that technologycan help great teachers change lives. That is why our cloudbased learning platform is designed for teachers and how theywant to teach.itslearning platform is serving schools across Europe andhas recently been adopted by many German federal statesand cities, including Berlin, Bremen, Baden Württemberg andSchleswig-Holstein. Based in Europe, with a strong focus ondata security, GDPR, and scalability – itslearning is now thepreferred paid European LMS.8Sanoma Sustainability Review 2020

SUSTAINABLE MEDIAWe provide trustedFinnish journalism andinspiring entertainment,now and in the futureIndependent and trusted media is essential in an open anddemocratic society. Our sustainability actions focus onsafeguarding independent Finnish journalism and engagingentertainment also for generations to come. To succeed, we promotefreedom of expression across our media, create public discussionand ensure a safe and sustainable advertising environmentfor brands. Our mission is to offer Finnish media also for nextgenerations. Promoting sustainable media is one of the six keythemes of the Sanoma Sustainability Strategy.9Sanoma Sustainability Review 2020

SUSTAINABLE MEDIASUSTAINABLE MEDIAWe provide trusted Finnish journalism andinspiring entertainment, now and in the futureFact-based news during pandemicIn 2020, the corona pandemic increased the need for qualityjournalism. Demand for digital news reached record-high levelsat all our news outlets. To ensure that relevant, fact-based information is available for all, Helsingin Sanomat (HS), the largestdaily newspaper in Finland, decided to offer its corona-relatednews feed free of charge for the public. All other media contentwas also in high demand: lifestyle content, and entertainmentbrought joy to people’s homes in the middle of the crisis. HSKids’ news started to publish news videos for children on dailybasis during lockdown.Independent and trusted journalismFinland is known as a land of free press. Public trust towardsmedia remains high and 96% of Finns over 15 years of age readnews (Media Audit Finland 2020). Maintaining and buildingthis trust is crucial to us. This means we resist disinformationwith fact-based content, commit to Guidelines for Journalistsand communicate transparently our general editorial process.Strong readership is essential to independent media andfreedom of speech. In Finland, the total readership is measuredby Finnish Internet Audience Measurement (FIAM) and MediaAudit Finland (KMT).We have over 40 media brands. Helsingin Sanomat hasover 2 million weekly readers in digital and print. Number ofsubscriptions for Helsingin Sanomat increased for the fourthconsecutive year, now already above 400,000 in total. In 2020,we acquired Alma Media’s regional news media business tofurther strengthen our news and feature business and grow ourdigital subscription base. The acquisition included titles such10as Aamulehti and Satakunnan Kansa together with 11 localnewspapers. The acquisition expanded our news network andwill continue to support the role we have, ensuring the sustainable future of independent domestic journalism in Finland.Editorially, these regional titles will remain fully independentand we will continue to build their local role.A cornerstone for reliable and fair journalism in Finland is strongcooperation within the media sector. In Finland, the self-regulating and independent committee of the Council for Mass Media(CMM) is responsible for overseeing editorial ethics.The CMM, established by publishers and journalists, providesguidelines for good professional practices and oversees themethods by which journalists acquire their information inthe field of mass communication according to the commonlyagreed commitment to the Guidelines for Journalists. TheseGuidelines include the principles of professional status,obtaining and publishing information, the rights of interviewerand interviewees, right to reply and the definition of private andpublic. It also gives guidance for correcting possible errors inthe media in question and how to separate journalism fromadvertising. Anyone can submit a complaint concerning abreach of good professional practice to the Council for MassMedia. Complaints are handled without delay, impartially andfree of charge.When publishing content, we comply with the legislationconcerning freedom of speech and freedom of expression andthe media sector. We are a member of the CMM and committedto the Guidelines for Journalists. These principles guide allOur sustainability targets1234We promote open democracy andfreedom of speech through ourindependent mediaWe increase awareness, empathy andtolerance with our journalismWe enable companies to thrive throughmarketing in our curated mediaWe empower shared experiences withentertainment and support the localaudio-visual communityKey performance indicatorsResponsible journalism practices asdefined in the Guidelines for Journalistsby The Council of Mass MediaProtecting vulnerable audiences asdefined by guidance of the NationalAudiovisual InstituteResponsible marketing practicesas defined by the Advertising andMarketing Communications Codeby the International Chamber ofCommerceSanoma Sustainability Review 2020

SUSTAINABLE MEDIAour journalistic work. Editors-in-Chief and supervisors of theeditorial teams are responsible for ensuring all journalistsworking for us understand their professional responsibilities.The Editors-in-Chief and Sanoma’s Forum for the Editors-inChief develop our editorial culture at Sanoma, provide guidance,follow reader surveys and customer feedback and take part inpublic discussion on editorial ethics.htiviikko), which is a week when schools in Finland focus onnews and media. In addition, Donald Duck in Finland is knownfor its work to keep versatile and lively Finnish language alive.Finall, our audio-on-demand service Supla promotes Finnishliterature by providing audio books and podcasts.In 2020, the CMM dealt with in total 329 cases in Finland andmade 56 decisions of which 24 were violations. We received sixnotifications of violation concerning aspects of news articlesand reported all cases promptly in the publication in questionas stated in the Guidelines for Journalists. In addition, wefollow all the CMM cases closely to learn, develop and also toencourage discussion on professional ethics.Nelonen Media is a leading broadcasting group in Finlandfocusing on TV and radio. Our brands include Nelonen, Ruutu,Suomipop, Supla and Radio Rock. Nelonen Media Live organisesannually more than 10 music festivals such as Tammerfest,Tikkurila Festival and Rockfest.Additionally, we create public discussion reflecting diverseopinions and lifestyles. As stated in the Guidelines for Journalists we aim for fact-based information and it definesour editorial decisions whether the topic is sustainabilityawareness in Helsingin Sanomat or a female perspective tosociety in women’s magazine MeNaiset. According to studyconducted by Kantar and commissioned by Sanoma MediaFinland, magazines have an important role in promotingwell-being.Supporting media literacySupporting literacy and media literacy, in particular, to increaseactive citizenship of all ages is fundamental for us. The need forreliable news has risen over the last years of increasing misinformation (disinformation) through social media. To supportmedia literacy and reading skills throughout society, HelsinginSanomat launched a new weekly newspaper for children (HSKids’ News) in print and video. In addition, schools receive freecopies of our newspapers to use in the classrooms every year.We participate in the annual Read Hour (a charity campaignto promote reading among children and teens) in Septemberand make the campaign visible in our media. In February weparticipate in Newsweek (Uutisten viikko, previously Sanomale-11Shared experiences with sustainableentertainmentEspecially during the pandemic in 2020 the role of entertainment has been an important part of everyday life of Finns whenlooking for escape from daily routines. Nelonen entertainmentshows and on-demand services have provided shared experiences when people have not been able to meet each other.According to an impact assessment by the Upright Project, byproviding entertainment we increase feelings of meaning andjoy (see analysis for more information).Our productions also empower and strengthen the Finnishaudio-visual community by providing outlets and creating newchannels for Finnish entertainment as well as by working closelytogether with Finnish artists, music industry and culture sector.Normally, our local festivals with mainly Finnish artists createregional impacts by gathering people together, and supportlocal vitality by bringing customers to local businesses. Wehave a strong influence on the audio-visual scene by providingjobs and keeping Finnish entertainment competitive and interesting in the global competition.In October 2020, Fanny Fröman fromHS Kids’ News received the awardfor information disclosure grantedby the Ministry of Education andCulture in Finland annually.World Press Freedom Day in May2020 was celebrated in the middleof the pandemic to pay attentionto freedom of speech despite thelimited physical freedom.Our lifestyle magazines lived-up totheir slogan ‘Stories do good’by subscription-based donationsto the Hope organisation thatsupported children and familiessuffering from the pandemic.The shared experiences we provide play an important role inuniting people and creating meaning and joy to their lives. Bydelivering information, inspiration, entertainment and experiences, we also increase awareness and reflect society withdifferent viewpoints and lifestyles.Sanoma Sustainability Review 2020

SUSTAINABLE MEDIAIn our productions, we protect vulnerable audiences inaccordance with National Audiovisual Institute guidelines. TheNational Audiovisual Institute (KAVI) is a subordinate to theMinistry of Education and Culture. KAVI is a supervisory agencywhose task is to preserve the audiovisual cultural products andto promote audiovisual cultural heritage and media education.All audiovisual programmes supplied in Finland must be classified by the Act on Audiovisual Programmes. We are committedto this classification and the KAVI guidance. Materials that couldpotentially harm vulnerable audiences, such as children andyouth, are published by the editorial teams according to theguidelines. We continuously develop our age classificationprocess together with KAVI and related staff is trained by KAVI.Our media separates advertising and journalistic content in themanner required by the Council for Mass Media and implementadvertisement restrictions to the types of advertising agreed. Wedo not provide digital advertising targeting groups which includechildren, for advertisers. We follow IAB Europe EU Framework forOnline Behavioural Advertising as well self-regulatory codes formarketing by Data & Marketing Association of Finland.To support companies duringdifficult times we organised amarketing campaign ‘TogetherForward’ which was a series

Sanoma's Sustainability Review describes our sustainability actions during 2020. It is part of the Sanoma Annual Review. Our sustainability work covers social, environmental, and economic responsibilities throughout the value chain, with human rights integrated into our business. All Sanoma's reports and further information about Sanoma

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