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Sustainability Report 2009 ............................ 5
Lindström Management.................................12
Lindström Group
POB 29, FI-00581 Helsinki
Tel. +358 20 111 600
www.lindstromgroup.com
Sustainability Report 2009
Followed Reporting Principles company received the first ISO 14 001 a matrix, where the axles were constituted
The 2009 sustainability report covers op- environmental certificate in 1998. by how important those factors are for
erations of the Lindström Group from Lindström’s own operations and, on the
1.1.–31.12.2009. Lindström’s sustaina- Specifying the Essential other hand, how they will be emphasised
bility report is published each year in In the course of 2009, the Group’s man- when one thinks about their significance
Finnish and English. The previous sus- agement and the project group responsi- for the interest groups. The essential fac-
tainability report was published on 13 ble for sustainability communications tors in Lindström’s operations are:
March 2009. The financial background have been working on Lindström’s sus- - perseverance of operations
information has been audited, and the tainability report. Particular attention has - supply chain responsibility
formulas used for calculating the key fig- been paid to creation of a common vision - creation of a superior service
ures are published in the financial respon- of what are essential matters for Lindström experience for customers, and
sibility section. The remainder of the re- Group in its sustainability work with regard - learning and constant development.
port has not been verified by an outside to all the three perspectives – financial, so- In its meetings, the Group’s executive
party. All the reported figures relate to cial and environmental responsibility. team regularly monitors the develop-
Lindström Group, i.e., the parent compa- A development process aimed at bring- ments in the various sectors of responsi-
ny, European and Asian Lindström sub- ing all aspects of Lindström’s sustainabil- bility. Lindström carries out constant de-
sidiaries, and Comforta and its European ity reporting to the G3 framework was velopment and monitoring of responsible
subsidiaries, unless some other clarifica- started in 2008. At that time, the compa- management: being a good corporate citi-
tion is specifically mentioned in the report. ny prepared a benchmark analysis of the zen is already important for Lindström,
Lindström is a family company that is prevailing trends in Lindström’s operating but the definition will be further clarified
owned by the Roiha family. Management sector and operating environment, com- in the course of 2010. Furthermore, a
at Lindström is guided by Lindström’s val- bined with the expectations of our inter- Code of Conduct will be prepared for the
ues, in which financial, social and envi- est group toward our reporting. personnel.
ronmental responsibility have been cen- In the previous report, we described the
tral factors. Lindström has signed the potential impacts of climate change on Reporting Limitations
Business Charter for Sustainable Devel- our financial standing and emphasised Publication of some fundamental infor-
opment and carries out its principles in all not only the life cycle of products but also mation has been limited, and Lindström
operations. the overall life cycle of our services with publishes information about its financial
On an international scale, Lindström the help of a description of the workwear activities as segments: the Group, the
has been a forerunner in its operating service. We also promised to focus even parent company, and the European and
sector in reporting of corporate social re- more on specifying what is essential in re- Asian subsidiaries. The table at the end of
sponsibility – in Finland the company has sponsibility management. the report also includes a statement of
received an honorary mention in the Fam- This development work continued with facts that have not been reported, be-
ily Companies category for its exemplary in-depth interviews of the Group’s execu- cause they are not essential with regard to
reporting. The company’s long-term re- tives in 2009. A summary of those inter- the business.
porting history goes back all the way to views was later processed in a workshop,
1991, when the first environmental bro- where the Group’s executives with the GRI compliance
chure was published. Since the 1990s, sustainability communications project In order to guarantee openness and com-
Lindström has set objectives for its envi- group specified the most essential areas parability, Lindström aims to comply with
ronmental activities and has been moni- in business operations, whose manage- the G3 framework of the Global Reporting
toring their realisation in accounts that ment and development should be a pri- Initiative (GRI) as closely as possible. This
have been published since 1996. Being mary focus. report fulfils the requirements of C level
goal-oriented has produced results: the The essential factors were divided into reporting in the G3 standard of GRI re-
Lindström’s Services monitoring changes in business opera- ly conceptualised, so it is easy to buy and
In all the countries it operates, Lindström tions, the operating environment and leg- sell products and services. After a pur-
provides workwear services. It also pro- islation, and developing the operations of chasing decision has been made, our re-
vides mat services in Latvia, Lithuania, the competence centre. lationship with the customer continues
Poland, Romania, Slovakia, Slovenia, the within the service field. In workwear serv-
Czech Republic, Hungary, Estonia and There are six administrative compe- ices, for example, this means that Lind-
Russia. tence centres, which serve the entire ström organises, in accordance with the
In Finland the company’s service selec- Group: customer’s decision regarding the collec-
tion includes workwear and mats as well - Finance and Reporting tion, textile material purchasing, manu- Lindström’s designers from left: Emma Lehto, Katja Juhola, Anna Sairo, Hanna Morelius and Jouni Mervas.
as hygiene, industrial towel, restaurant - Human Resources and Quality facturing, fitting, customisation, deliver-
textile, personal protective equipment, - Investments, Method Development ies, storage, washing and transport to
and corporate gift services. and Environment maintenance and back to the customer.
Lindström’s subsidiary Comforta Oy - Corporate Purchasing Lindström’s locker service is a very popu-
provides textile services for the hotel, ac- - Information Technology and lar way of acquiring a completely out-
commodation and nursing sectors in Fin- - Corporate Communications. sourced and efficient solution for a com-
land, Sweden, Estonia and St. Petersburg pany that has employees who must wear
in Russia. Service Competence Centres uniforms. Good service is important in Design & Brand Management out the 2009 reporting year, the depart- ment, tasked with managing the planning
Lindström provides services in seven the daily lives of companies and organisa- Lindström has a unit called Design & ment has carried out extensive and long- and execution of marketing communica-
Organisation fields: workwear, mat, hygiene, restaurant tions: it increases job satisfaction, and Brand Management that comprises the term modernisation of the basic collec- tions for services.
Lindström’s organisation is such that the textile, personal protective equipment, in- operations can be developed in collabora- design and visual competence of the tions and customer-specific collection Furthermore, each service has a mar-
administrative competence centres, serv- dustrial towel and corporate gift services. tion, taking into account the sector’s spe- Group: product development of workwear suggestions. One indication of the work- keting manager who is responsible for
ices and design department support the The workwear and mat services operate cial needs and occupational safety. and corporate gifts, graphic design as well load is that several hundred individual support at the customer interface and
business operations in Finland, Europe internationally, the other services are, for Lindström is the leader in workwear as coordination of marketing communica- collection suggestions were prepared for masters the market situation and prod-
and Asia as well as those of Comforta. It the time being, only offered in Finland. services in many markets, and the com- tions and support for event marketing. customers’ needs in both workwear and ucts in his or her own service.
is the responsibility of the administrative Lindström’s personal protective equip- pany’s strategic objective is to be the first Operations of Design & Brand Manage- corporate gift services.
competence centres to bring their specif- ment service will start going global during one in the marketplace – creating a new ment began in full force after Vision De- In early October, the employees spe-
ic competence to bear in the whole Group 2010. workwear service market by building on sign Clothing Oy merged with the parent cialising in the company’s marketing com-
and to perform operative duties in their Service competence is Lindström’s its unique concept. company on 31 January 2009. Through- munications transferred to this depart-
own areas independently, all the while strength. Our operations have been clear-
The turnover of the parent company was The most significant investments were
EUR 134 million (EUR 132 million in construction of new service centres in St.
2008). In 2009, the European and Asian Petersburg in Russia, Beijing in China as
subsidiaries accounted for 33 per cent, or well as Mumbai and Chennai in India. We
EUR 79 million, of the consolidated turn- also established a subsidiary in Bulgaria.
over (EUR 89 million, or 36 per cent, in During the review year, the subsidiary
2008). Vision Design Clothing Oy merged with
The Group’s profit before taxes was the parent company on 31 January 2009,
EUR 36.0 million (EUR 18.8 million in and the parent company acquired Virtaco
2008). The parent company’s result be- Oy’s personal protective equipment busi-
fore extraordinary and profit adjusting ness in Finland.
items and taxes was EUR 26.8 million The Group’s solvency remained good
(EUR 27.8 million in 2008). Reduction of throughout the year under review. The
textile purchases due to dwindling growth, bank loans of the Group are bank loans
in particular, improved the Group’s profit- that have been negotiated for the Europe-
ability. an and Asian subsidiaries in a targeted
In 2009, the net investments of the manner through the parent company.
Group were EUR 9.3 million, compared At the end of the review year, the We estimate that Lindström Group’s local service centres. In European and ro zone face a risk of deteriorating euro-
with EUR 20.3 million a year earlier. The number of personnel in the Group was 2010 turnover will remain at the 2009 Asian operations, we will invest in the es- denominated turnover and profitability.
parent company’s investments were EUR 2,373 employees (2,478 employees in level, as turnover in the workwear busi- tablishment of a new service centre in The risk of credit losses is also on the
6.7 million, compared with EUR 9.1 mil- 2008), of whom 42.6 per cent worked for ness of some subsidiaries continues to New Delhi in India and Sofia and Bulgaria increase in all countries of operation, and
lion the previous year. In the year under re- the European and Asian subsidiaries contract as a consequence of the global as well as an expansion of the service more efficient debt collection is one of
The parent company’s business opera- view, the parent company continued with (44.9 per cent in 2008). The average economic recession – thus arresting the centre network in Russia. The company the special focus areas of the Group.
tions developed well during the financial an IT project whereby a large part of the number of personnel of the Group during growth of the Group. Profitability is ex- will also increase its capacity in Mumbai Competition is intensifying in all market
year, in spite of the global economic down- Group’s information systems have been re- the year was 2,203 persons (2,248 peo- pected to remain at a good level, though. in India, Bucharest in Romania, Kiev in areas. With our strong service concept
turn. The turnover of several subsidiaries, placed with new, modular systems. Other ple in 2008). The personnel costs of the We expect the turnover and profitability of Ukraine and Budapest in Hungary. We and improvements in productivity and
on the other hand, decreased as a conse- significant parent company investments Group in 2009 were EUR 67.8 million the parent company to remain at the pre- believe income financing will be sufficient cost efficiency, we believe that Lindström
quence of reduced operations of several included an enlargement of the Jyväskylä (EUR 68.2 million in 2008). vious year’s level. for the planned investments. will maintain its strong market position in
customer companies. Furthermore, weak- service centre, addition of capacity at the Lindström’s development activities are We estimate that investments will grow We do not foresee significant risks re- all countries of operation and be able to
ening of local currencies in terms of the Turku service centre, and renovation of mainly targeted at modelling and develop- in comparison with the preceding year’s lating to the business operations or fi- kick off operations in a new country, if
euro weighed on the Group’s turnover. the wastewater systems in the industrial ment of its service concepts and process- figures. The most significant investments nancing. Because of the pressure caused necessary. Continuity of the company’s
The Group’s turnover contracted by 3.5 towel laundry in Hämeenlinna. es. The company also develops its opera- in the parent company in 2010 will be the by the global financial crisis and econom- operations has been secured through ap-
per cent from the previous year, to EUR In 2009, investments in subsidiary of- tion in the fields of product design and last stage of the ongoing renewal project ic downturn, however, European and propriate insurance coverage.
242 million (EUR 251 million in 2008). fices focused on China, India and Russia. procurement. of the IT systems, and investments in new Asian subsidiaries located outside the eu-
Board of Directors tices of the management, and all meet- Communication Ethics
The Chairman of the parent company’s ings have been planned and scheduled Lindström has operating guidelines on
Board of Directors has been Jukka Roiha, for a year in advance. The management how to handle press relations, and the
and its permanent members have been uses meetings called Business Situation company complies with the ethical in-
Heikki Ahdekivi, Kim Hanslin, Petteri Overview to monitor the development of structions on communications based on
Kousa, Leena Lampén, Antti Roiha and the various business units, services and the Code of Athens. A communications
Anssi Soila. countries of operation. Management and network called COMNetwork was set up
development are based on the ISO 9001 in Lindström subsidiaries in 2006. It en-
President and CEO quality standard. gages actively in annual planning as well
The company’s President and CEO is Environmental management is gov- as ongoing, Group-wide activities. The
Juha Laurio. erned by the ISO 14001 standard and network develops internal and external
biocontamination control by the EN-SFS communications in a methodical manner
Group Executive Team 14065 hygiene standard. All of Lind- under the guidance of Group communica-
Lindström’s Group Executive Team in- ström’s subsidiaries comply with the mod- tions, thus guaranteeing regular informa-
cludes the following persons: el as stated in the operations manual. tion to the personnel and customers alike.
• President and CEO Juha Laurio Lindström’s parent company in Finland
(Chairman), Lindström Oy and its European and Asian subsidiaries Lindström’s Facilities
• Jari Vihervuori, Senior Vice are broadly encompassed by the ISO cer- The parent company Lindström Oy has 13 Lindström’s Group Executive Team includes the following persons: Senior Vice President, CFO, Corporate Finances Minna Kahri; Senior Vice President, Corporate Investments,
Process Development and Environmental Issues Harri Puputti; Senior Vice President, European and Asian Subsidiaries Mika Hartikainen; President and CEO Juha Laurio
President, Finland Operations tificate. In 2009, the certificate was offices in Finland. Most of them comprise (Chairman); Managing Director, Comforta Oy Santtu Jokinen; Senior Vice President, Corporate Human Resources and Quality Kirsti Leisio and Senior Vice President, Finland
• Mika Hartikainen, Senior Vice awarded to Poland, Moscow, Romania entities, service centres consisting of Operations Jari Vihervuori.
President, European and Asian and China. The next in line will be Swe- business unit sales, customer service,
Subsidiaries den and India. Development work and and a laundry. Lindström also has a few
• Santtu Jokinen, Managing Director, quality control are an ongoing effort: the sales offices in Finland. The Lindström
Comforta Oy ISO certificate will be renewed in 2010, subsidiary Comforta Oy has six offices in
• Minna Kahri, Senior Vice President, and then it will also be joined by Comfor- Finland and operations in Sweden, Esto-
CFO, Corporate Finances ta Oy which until now has had a separate nia and St. Petersburg. Comforta also
• Kirsti Leisio, Senior Vice President, certificate for its operations. owns Quicky Tvättcentralen in Åland.
Corporate Human Resources and Outside Finland Lindström has a total
Quality Safety and Ethical Instructions of 30 offices in 18 different countries.
• Harri Puputti, Senior Vice President, Lindström’s general safety instructions The offices are entities based on Lind-
Corporate Investments, Process are a part of enterprise resource planning, ström’s patented modular solution that in-
Development and Environmental and the company has appointed people in tegrate sales, washing and logistics, i.e.,
Issues. charge of work safety, information securi- warehouses and delivery service. Opera-
ty, access security and environmental tions of the modular concept as well as
Auditors safety. Non-compliance with the safety methods of sales and other operations are
The auditor in 2009 was Tuokko Group instructions is a serious problem that is developed in a centralised fashion with
which is an auditing firm approved by the handled with early intervention and by the help of Software and Hardware mod-
Central Chamber of Commerce of Fin- bringing compliance with the instructions ules. The centralised operating model en-
land, and the auditor with main responsi- up to the current level as quickly as pos- ables comparison and thus helps the
bility was Certified Public Accountant sible. The company has clearly expressed company develop the efficiency and ac-
Timo Tuokko. that its personnel pledges to operate with countability of sales and customer main-
responsible principles. No kinds of cor- tenance as well as washing and mainte-
Lindström Management ruption or bribery are permitted within the nance methods.
Lindström has a methodical management operation. In its operations manual, Lind-
system that is detailed in the company’s ström has instructions on receiving of cor-
operations manual. Clear instructions porate gifts and travelling, for example.
have been published on the meeting prac-
Lindström’s Board of Directors includes the following persons: Antti Roiha, Heikki Ahdekivi, Leena Lampén, Chairman Jukka Roiha, Anssi Soila, Kim Hanslin and Petteri
Kousa. Also CEO Juha Laurio in the picture (second from right).
Lindström complies with the laws and and related communications in 2009, in developing the company. The company
regulations and acts according to the in- even on an international scale. Compe- is owned by the Roiha family in the third
structions of the local authorities in all its tence of the personnel is improved and fourth generations.
countries of operations. Lindström at- through internal job rotation and appren- Shareholders expect the company to
tends to its taxes and fees in order to pay ticeship training, and with new mentoring act in accordance with its values, in a re-
its share of the common services and in- and trainee programmes that started in sponsible manner. Lindström has been a
frastructure of the society. Lindström em- 2009. For more information on those member of the Finnish Family Business
ploys almost 2,400 persons, and it is projects and the personnel’s job satisfac- Association since it was established. The at guaranteeing to customers a superior to create long-lasting customer relation- satisfaction survey has been a more rapid
committed to paying the wages and social tion survey, Human Potential, please see Finnish Family Business Association pro- service experience – a factor that is be- ships. Within the framework of its quality reaction to customer complaints.
insurance contributions according to con- the section on social responsibility. The motes the ability of family firms to operate coming increasingly important, as the system, the company aims to prevent Lindström’s customer satisfaction has
tracts and to look after its personnel. personnel also give feedback to the and responsible ownership. company aims to differentiate itself from problems and to repair and constantly im- remained at a very good level for years.
Group’s various competence centres and its competitors while the market satura- prove upon its customer service. Custom-
In Cooperation with the Personnel services. Development targets that come Customer Relationship tion rate increases. er retention is an important indicator, and Partners
Lindström is an employer that looks after up in the surveys are specified and devel- Management Lindström is a global supplier of B-to-B it has remained at a good level. Lindström’s partners include several serv-
the well-being of its personnel. The Lind- opment is monitored closely, even through Performing local service, regional pres- textile services. It serves over 200,000 As a part of quality, the company also ice providers and suppliers. Lindström in-
ström personnel participate in work plan- score cards. ence and location near the customer are customer offices in Europe and Asia. monitors customer satisfaction in all vests in the cooperation and expects its
ning and development through coopera- Furthermore, the development discus- central factors in Lindström’s services. Lindström’s strategy includes the objec- countries of operation, and it is a very im- subcontractors to be trustworthy, profes-
tion and stearing groups. In Finland, the sion practice is maintained and updated However, in the background there is a tive of comprehensive, not partial optimi- portant indicator. A reform in the way cus- sional and responsible. Lindström’s in-
company offers its personnel the opportu- on a regular basis. In order to clarify work strong strategic intent to serve customers sation. Lindström’s operations have been tomer satisfaction is measured produced structions and prerequisites for subcon-
nity to preventive health care by providing objectives and improve profitability, Lind- in an ever better and more efficient man- organised on a customer-oriented basis, a lot of new information in Finland. Fur- tractors are discussed in more detail in
counselling and further examinations to ström’s officials are given an annual score ner. which means that local subsidiaries and thermore, for the first time, a customer the section on social responsibility. Lind-
those who respond to a survey on well-be- card, which helps guide realisation of im- Lindström invested heavily in customer business units have the primary responsi- satisfaction survey was made by an out- ström strives to be cost-effective and to
ing. The company monitors absences and portant objectives. Good results are re- relationship management in 2009. The bility for their customers. side research institution among custom- constantly challenge the suppliers to
reacts to any absences that last more warded. Finnish organisation has broken bounda- Effective and flexible service that lives ers of European and Asian subsidiaries in guarantee cost-efficiency.
than two weeks in a year in accordance In its operations, Lindström aims to ries between service and business units with a customer requires constant inter- St. Petersburg, Moscow, Estonia and
with a centralised intervention model. Su- have true dialogue with employee organi- and developed the company’s service cul- action within Lindström with sales, cus- Hungary. It yielded particularly good re- Lindström Active in Developing
pervisors in Finland have been offered sations. We do not restrict our personnel’s ture. Lindström’s operations have been tomer service and production, i.e., laun- sults both in Lindström’s internal compar- the Sector
training on this subject. possibility to unionize. made customer-oriented by creating serv- dries and delivery service and other logis- ison and according to general, interna- Lindström is a member of the Yleinen Te-
Work safety has been invested in with ice or care models for different kinds of tics. A functional entity generates an effec- tional comparisons. In 2010, customer ollisuusliitto (Confederation of Finnish
several projects, e.g. as a member of a ze- Responsible Ownership operating sectors. Thus, competence and tive service chain that, in the end, benefits satisfaction survey will be conducted in General Industry) and of the Confedera-
ro accidents forum in Finland. The com- As a family company, the Lindström own- experiences can be utilized in a central the customer the most. all Lindström subsidiaries. tion of Finnish Industries. Lindström is a
pany had a special focus on work safety ers have a crucial role and long traditions manner. This development work is aimed The Lindström values include an effort One consequence of the results of the significant developer in its own sector: in
Moderate risk-taking enables a company and the competence centres located in clical in comparison with other sectors. pared in advance for the investments and investments can be executed through in- lationships with the customers. In inter-
to survive even in financially uncertain Finland. The remaining 17 per cent of the purchases required by upcoming years of come financing, so the Group probably national operations, customers in several
times. When a company’s profitability and companies are, for the time being, man- Profitability Through growth. Return on investment also im- will not need take out any big loans. countries are encouraged to utilise solu-
financial stability are secure, it has a aged by executives in either the head of- Expense Discipline proved clearly, by almost six percentage tions that promote the effective use of
foundation to bring its operations back to fice or a neighbouring country. Profitable operations enhance the compa- points to 28.3 per cent. Liquidity at a Good Level working capital.
a path of growth. ny’s capability to provide cost-efficient From an operations perspective, profit- Lindström wants to make sure that it pays The year 2009 caused many Lindström
Growth Dwindled services for the customer and, on the oth- ability will remain steady in future. Yet all its obligations in accordance with the customers financial hardship that in many
Financial Targets Uncertainty factors in the local markets, er hand, enables employees to have Lindström operates on an international payment terms agreed on and without any ways reflected on Lindström, as well; it
Lindström’s financial targets are based on particularly in the Baltic countries and meaningful jobs in the long term. A prof- scale, in countries that have 16 different delays. On the other hand, the same was difficult for us to repatriate our re-
maintenance of growth and a sufficient Russia, have weakened the operations of itable company contributes – for its part currencies. It is not possible to hedge the punctuality is expected from the custom- ceivables with a sufficient degree of effi-
revenue level for the owners. The compa- local customers. As a consequence, Lind- – to the development of its own operating company against all exchange rate risks. ers as well. ciency. Even though Lindström’s credit
ny’s growth is organic, which is the best ström has also adapted its own operations environment by paying taxes and other Lindström is also prone to changes in the The company’s liquidity has remained loss risks are relatively low due to a large
way to ensure that the concept selected is to match the changing markets. fees to public authorities. prices of energy commodities both direct- at a good level. The company has been customer base, special attention has
used efficiently. Mergers and acquisitions In 2009, the Group’s turnover was EUR In tight financial times it is especially ly and indirectly, through its suppliers. Po- able to pay salaries for the employees and been paid to management of customer
are made when they support the existing 242.4 million, 3.5 per cent less than in important to hang on to profitability, be- tential growth in business operations may fees levied by public authorities and to risks and corporate reorganisations, par-
operations. The long-term goal is to reach 2008. In the parent company, the turno- cause one can get back on track toward force us to buy more textiles, which may carry out investments and other acquisi- ticularly in Europe. The only effective
20 per cent in the return on investment. ver of customers outside the Group in- growth only through efficient operations. weaken the profitability in the short term. tions within the framework of the original means to fight off significant credit losses
Lindström does not want to take signif- creased slightly, by 1.5 per cent, even A financial crisis can be seen as a positive timetables. Efficient collection of receiva- has been rapid management of the collec-
icant financial risks. Growth is financed though the rate of growth slowed down force, because it forces you to develop Slowdown in Growth Reduced bles is essential with regard to mainte- tion process and, if necessary, to cut off
mainly through income financing, and ex- markedly compared with the previous your own processes. The same cost-effi- the Debt Load nance of a good level of liquidity; the service from customers who are unable to
ternal financing is acquired mostly for fi- year. All in all, the Finnish operations end- ciency and willingness to develop opera- The company’s goal is to cover maintain- company has allocated a lot of resources commit themselves to payment schedules
nancing peaks caused by significant in- ed up at the preceding year’s level, when tions is expected from the own subcon- ing and expanding of operations with in- for this in 2009. We have also paid a that have been jointly agreed.
vestments. By keeping solvency at over Comforta’s business contracted by more tractors and suppliers. come financing. As growth slowed down, great deal of attention to efficient pay-
60 per cent, the company ensures a suf- than four per cent as a result of the slow the Group’s investment needs decreased ment of the Group’s assets back to the Responsibilities for Employees
ficient buffer to control any fluctuations in tourism market. Profitability Remained Good clearly in comparison with earlier years, parent company. Lindström employs people in several
liquidity in a cost-efficient manner. The Group’s profitability in 2009 was very and we were able to dispense with loan fi- Lindström did not have any difficulties countries and is responsible for preserv-
A good level of liquidity helps a compa- Share of International good. As growth slowed down in the nancing in Finland. Thus the Group’s loan with regard to asset management in ing those jobs in the long term. Lindström
ny pay its obligations to the employees, Operations Decreased Group, the need to purchase textiles de- liabilities worth three million euros, were 2009. Quick ratio rose to 2.6 at the end prefers to recruit its own employees rath-
authorities, financiers and suppliers with- Changes in Lindström’s European opera- creased, which improved profitability sig- taken in order to develop our operations in of the year. er than hire temporary staff, if the labour
out any trouble. This gives the company tions were more drastic. By the year nificantly. As for the Group’s other pur- Asia. The value of the Group’s invest- market makes it possible. Thus 98 per
flexibility to make acquisitions rapidly, if 2009, turnover declined by more than 10 chases and services, we focused on the ments was EUR 9.3 million, half of the Responsibilities for Customers cent of the Group’s overall labour costs
that is called for. Liquidity of the Lind- per cent, totalling EUR 79 million. Stable essential purchases with regard to the op- previous year’s figure. Contrary to recent Lindström wants to improve the daily lives consist of wages and salaries and social
ström Group is measured with Quick Ra- growth in the Asian economies supported erations. The Group’s profitability was al- years, in 2009 the majority of the invest- of its customers through its services. The security expenses (96 per cent in 2008),
tio, and the minimum target is 1.2. Asian operations, which continued to so enhanced by the favourable price ments were directed at the parent compa- company performs its services in a cost- whereas service fees for employment
grow and totalled EUR 1.4 million. trends in energy commodities and the ny’s operations. efficient and professional manner as re- agencies account for two per cent.
Moving to New Areas Over the past few years, the proportion more-stable exchange rates of the curren- Thanks to the strong profit and the re- quired by the signed contracts. Lindström Wages and salaries, social security ex-
The Lindström Group comprises 23 com- of Lindström’s international operations cies in the operating countries. duced debt load, solvency rate increased wants to improve its services by taking in- penses and other benefits for the person-
panies in 19 different countries. In early has grown consistently. In 2009, howev- The Group has adapted labour costs to to the best value in the Group’s history, to account the wishes of its customers: nel in the course of the last five years are
2009, Lindström Oy’s subsidiary Vision er, the weight of the international opera- the smaller turnover. Temporary labour 80.6 per cent. In the early part of the year indeed, Lindström’s customers have ben- presented in the attached graph.
Design Clothing Oy merged with its par- tions in the Group decreased. When the solutions have been largely abandoned the Group prepared for loan financing as efited from the recession as the costs of Good results by the personnel are re-
ent company Lindström Oy. In the early proportion of turnover coming from out- and the efforts were concentrated on uncertainty eroded the functionality of textile services have fallen in accordance warded. Success with regard to the com-
part of the year it was also established a side Finland in 2008 was 36 per cent, in maintaining the jobs of the own employ- the financial markets. Once the markets with the decreased customer needs. pany’s significant strategic objectives is
subsidiary in Bulgaria. The service centre 2009 that figure was only 33 per cent. It ees. We have not been able to avoid job had stabilised, such loan arrangements Cost-efficiency comes from the devel- monitored with the help of Balanced
expansions also continued particularly in can be already seen positive signals of a cancellations altogether – proved unnecessary. opment of processes. For several years Scorecard. Monitoring relates to all of the
China and India. recovery of the business in several operat- the need for textiles care workers, in We expect that 2010 will be a more in- now, Lindström has favoured electronic personnel groups of Lindström Group.
Textile service is local business. That is ing sectors in Europe. Thus it can be as- particular, has been redefined as washing tensive year for investments than 2009. invoicing services in its operations. These The company has been able to reward
why administration is also organised sumed that the international operations volumes have fallen. Although significant growth in business days 36 per cent of the parent company’s employees for personal successes in spite
through local organisations. Of the Lind- will continue on their original path toward Growth years usually diminish the prof- operations is not yet expected, prepara- invoices are sent to the customers in a pa- of the unstable economic situation. On
ström companies, 83 per cent are headed a larger proportion in the Group during itability of the Group in the short term. tions for future growth have been made perless form. A new customer relationship the other hand, the economic uncertainty
by local managers who are supported the next two years, although in the textile Thus the 2009 net profit, EUR 27.2 mil- by building new service centres in several system was implemented in Finland in has forced us to adapt our personnel re-
through a separate regional organisation service sector such changes are post-cy- lion, gives a good opportunity to get pre- operating areas. It is expected that these 2009 to enhance the efficiency of the re- sources to the jobs that offered.
ernment (EUR 8.4 million in 2008). The pension and social se- Change % turnover of the current year – turnover of the previous year
Return on investment % = ————————————–––––––––––––––––––—––––– x 100
curity costs of the Group were EUR 14.9 million (EUR 15.8 mil- Indirect Effects of Lindström’s Operations of turnover turnover of the previous year
lion in 2008). In the year under review, a tax audit was performed Return on net profit + taxes + financial expenses +/– exchange rate difference
30,1 = ————————————––––––––––––––––––––––––––—–––––– %
in the parent company but no report of the end result had been Lindström’s operations are labour-intensive. Thus Lindström is, in 28,3 investment % equity + liabilities at interest (average of last two fiscal years)
26,7 30,1
submitted by the beginning of March 2010. proportion to its size, a significant employer that secures the li-
22,5 Equity-debt equity
The Lindström Group did not receive external subsidies for its velihoods and development of people particularly in small towns. ratio
= —————————––—— %
sum total of balance sheet
operations in 2009. 14,6
Lindström acts as the principal client of many entrepreneurs. Thus
financial assets
the company also has an impact on the financial well-being of its Quick ratio = ————––––––––––––––––—–––––
short-term liabilities – prepayments
Responsibilities for Suppliers and Partners subcontractors’ employees.
Net profit = profit of the fiscal year +/– taxes of the previous year +/– extraordinary items
Lindström buys products, services and energy for its textile leas- Often Lindström is established in countries where textile ser-
ing and maintenance business and production subcontracting vices have not been available on a large scale previously. Thus
services, such as delivery and laundry services. In addition, Lind- Lindström has been helping develop the corporate structure of the
Turnover M € and annual growth rate Equity-debt ratio
ström acquires products and services required for maintaining target country for its part. At the same time, Lindström –for its
administration and operations. Long-term investment commodi- part – brings environmental consciousness to new countries of 300 80,0
80,6
ties are also a significant part of the cash flow directed at the sup- operation. 79,0 78,5
251,1 242,4 76,2 77,2
pliers. Through the services it provides, Lindström can affect the 250
227,5 60.0
With all the suppliers, the terms of contract are followed and comfort and occupational safety of its customers’ premises. 202,3
200
invoices are paid according to the terms of payment. By operat- Lindström’s operations increase hygiene awareness in the mar- 171,2
ing responsibly regarding payments, we assist our partners in ketplace, which in turn drives up demand for other products that 150 40,0
keeping their own cash flows in order. All fees paid to suppliers emphasise cleanliness. Appropriate textiles and occupational sa-
are based on contracts and invoices. The company does not tol- fety products improve the productivity and reduce the number of 100
20,0
erate bribery of reporters or other people, and the use of so-called accidents of customer employees. In addition to strengthening the
50
unauthorised staff in the Group is absolutely forbidden. Compli- customer’s image, textile services enhance the job satisfaction of 18,2
8,7 12,5 10,4
ance with good contract practices is controlled by the Group’s in- the employees. 0 0,0
-3,5 05 06 07 08 09
ternal audits.
Seventy-nine per cent of the purchases related to the produc- -50
05 06 07 08 09
tion of the Finnish Lindström Group companies were made in the
EU region (84 per cent in 2008) – energy purchases are exclud-
ed from these figures. Of the purchases, 49 per cent were made
Financial Impacts of Climate Change Net profit M € Quick ratio
from Finland (50 per cent in 2008). In the entire Group, purchas-
es made from the own countries of operation accounted for 47 on Our Operations 30,0 3,0
per cent of total purchases (45 per cent in 2008). Additionally, Climate change will probably increase the awareness of Lind-
27,2
34 per cent of purchases of goods for production were intra-com- ström’s potential clientele about environmentally oriented prod- 25,0 2,5
2,6
munity procurement between EU countries (38 per cent in ucts. This means that they will forgo disposable products that 2,4
20,0 2,0
2008). At Group level, the rise in purchases from Finland is due strain the environment, and instead choose solutions with the 20,9
2,0
to the reduction in textile purchases, which in turn increases the longest possible life cycles and light environmental burdens dur- 15,0 16,6 1,5 1,7
1,6
weight of other commodities in the purchases. ing their service lives. Lindström’s product selection contributes
to fulfilment of stricter hygiene level requirements, and it also 10,0 1,0
10,0
Responsibilities for Financial Institutions promotes environmentally oriented choices. Thus climate change 8,4
5,0 0,5
Lindström’s objective is to finance its operations with income fi- will, for its part, have a positive impact on the development of
nancing. Bank loans are used to even out cash flow and to secure Lindström’s turnover. 0 0
that subsidiaries that are launching operations get off to a smooth On the other hand, climate change also brings along regulated 05 06 07 08 09 05 06 07 08 09
start. In 2009 the company had only loans to support operations energy and water markets. Even though industrial laundry opera-
in Asia. Loans that European units had early in the year were paid tions have much better cost-efficiency than private households,
Purchases, M € 70,0
Environmental Responsibility
60,0
160 000
80 000 30,0
Continuous improvement and reduction of the
60 000
40 000
20,0
environmental load are an essential part of Lindström’s
10,0
20 000 success. Sustainable development continued also in 2009.
0 0,0
05 06 07 08 09 05 06 07 08 09
Investments Other goods and services Energy Subcontracting services Product purchases
The Group’s average consumption of de- monitor consumption per produced unit,
Distribution of corporate turnover, EUR 1,000 tergents per kilo of textiles washed de- as the expansion of operations increases
creased by eight per cent and water con- the total consumption of raw materials Lindström’s Environmental
sumption by four per cent. Energy effi- and goods. Specific consumption propor- Policy
ciency did not improve as expected, but tioned to kilos washed indicates the eco-
Finland 124736 138882 150192 161732 161973 the company still managed to keep it at logical efficiency of production with pa- - Lindström has signed the ICC Bu-
Other EU region* 32384 45302 55260 63621 58717 the previous year’s level. The total amount rameters typical to the laundry industry. siness Charter for Sustainable Deve-
Other countries 14093 18159 22041 25717 21709 of waste was reduced by an astonishing Consumption of energy, water and de- lopment, whereby we have committed
* The entire turnover of the whole year in the countries that joined EU in 2004 is in the EU row 15 per cent and, at the same time, the tergents, and the amount of waste gener- ourselves to taking into account the
waste recycling rate increased both in ated have been selected as the most im- environmental effects of our operations
Wages and salaries, social expenses and other benefits of the personnel, EUR 1,000
Finland and the European and Asian sub- portant environmental impacts, which will in planning and decision-making and to
sidiaries. The amount of carbon dioxide be monitored on a monthly basis. comply with relevant laws and regula-
emissions reflected the neutral develop- tions in all of our activities.
Wages 35174 42765 49278 54291 53978 ment in energy efficiency. Forerunner in Material Efficiency - To ensure a improvement in environ-
Social expenses 9209 11310 13005 13859 13809 For the number of transportation kilo- mental control throughout the Group,
Other benefits 1828 2508 2834 3053 2570 metres, the trend was negative and kilom- - Durable and recyclable products each business unit draws up its own
Total 46211 56583 65117 71203 70357 etrage per kilo of textiles washed grew by - Efficient use of textile products annual environmental programme defi-
three per cent. Energy efficiency declined during their life cycle ning the aims and measures to reduce
Direct Economic Value Generated in Lindström Group (1000 euros) in areas in Europe and Asia where the - Material efficiency of the environmental impact.
service centres serve geographically large textile care and service process - We train our staff to be aware of the
2009 % of turnover 2008 % of turnover
areas. - Modular operating models. environmental effects of their tasks and
Focus points in 2010 include energy to act in an environmentally respon-
Turnover 242399 251070 efficiency, washing method concepts and The material efficiency of textile servic- sible manner.
Financial income 306 542 more effective treatment of wastewater. es is based on the long service life and - We inform our subcontractors of is-
Contributions from public sector 0 106 management of the life cycle with maxi- sues relating to environmental control
Other income 659 1494 Environmental Effects mum attention to the environment. The and require that they apply environmen-
Income received 243364 253212 of Textile Service eco-efficiency of a textile service chain is tally sustainable methods in their ope-
The most important environmental impacts formed by the following three sub-factors: rations. We also require that our major
Raw material and product purchases -40145 -16,6 -53998 -21,5 due to service of rental products are: - Selection and procurement of suppliers give an account of the way in
Energy -10446 -4,2 -11361 -4,5 - Energy consumption products which they deal with environmental is-
Subcontracting services -37162 -14,8 -38675 -15,4 - Water consumption - Textile care and service sues.
Other purchases from suppliers -37064 -14,8 -40388 -16,1 - Wastewater process during use, and
Direct economic value after supplier compensations 118547 47,2 108790 43,3 - Quality and consumption of - Disposal of worn-out products.
detergents The basis for a long service life is prod-
Salaries and compensations to personnel -55871 -22,3 -56309 -22,4 - Waste ucts that are best suited for the custom- In order to have the life cycle of the prod-
Taxes and social fees to authorities -23209 -9,2 -23380 -9,3 - Delivery kilometrage and ers’ needs and usage conditions, and uct under control, disposal of the product
Direct economic value for financiers 39467 15,7 29101 11,6 the resulting emissions products that are suitable for the industri- that has reached the end of its useful life
- Carbon dioxide emissions. al textile care process. The wear resulting must be managed according to the Waste
Interests to financial institutions -679 -0,3 -467 -0,2 This report reviews the aggregate devel- from washing and finishing must be prop- Act and the principles of sustainable de-
Dividens to shareholders -8385 -3,3 -8600 -3,4
opment of environmental factors at Group erly controlled, and products which have velopment.
level. For the operations, it is essential to been broken during use must be repaired. The eco-efficiency of a rental service is
Direct economic value for investments
and development efforts 28510 12,1 20034 8,0
Purchased steam 5 %
Electricity 17 %
Choices Have an Effect on the Quickly Tvättcentralen, in Åland. It was decrease fuel consumption in laundries.
Natural gas 37 %
Environmental Load awarded the Swan label in 2009. Furthermore, the consumption greatly de-
When choosing textile suppliers, we fa- pends on the condition and efficient use
Propane 15 % vour suppliers that pay attention to the Focus on Energy Efficiency of the boiler plants and production ma-
environmental impact of their production Lindström has made deliberate improve- chines.
activities and try to meet the require- ments on its energy-efficiency since the Lindström produces steam mostly with
ments for environmental labels for tex- early 1980s. The foundation for the sus- natural gas. In 2009, as much as 37 per
tiles. Choosing suppliers is made easier tainable development has been gradually cent of the process energy used was pro-
by the international ecolabels, the most implemented saving actions of water and duced with natural gas. Furthermore,
common of which is Öko-Tex Standard energy in laundries, and a shift toward when purchasing new production machin-
Oil 26 %
100. The roll towel material as well as products requiring less energy-intensive ery, energy-efficient gas driers and finish-
more than 90 per cent of Lindström’s washing. Product selections in particular, ing tunnels have been preferred.
workwear fabrics and hotel textiles have such as a polyamide mat as well as work- One third of the electricity consumption
already been granted the Öko-Tex Stand- wear and table linen manufactured from of service centres is spent on operating
ard 100 label. As far as hotel textiles are blended fabrics, enhance the energy effi- production machinery and equipment,
also reflected on the amount of waste produced at the customer’s concerned, Lindström is gradually shift- ciency of laundries. In addition, introduc- one third on air conditioning and the rest
Industrial Washing Has a Lighter premises. A textile product that can be recycled can replace a ing toward the more demanding EU Eco- tion of low-temperature washing and new on lighting and use of other electrical
disposable product and consequently reduce the amount of waste label. At present, approximately 20 per washing method concepts has been, and equipment. In the latest construction
Carbon Footprint Than Home Washing
produced. Clean products are packed in washable textile bags cent of Comforta’s hotel textiles meet is expected in future years to be, apparent projects, attention has been paid to ener-
and protective hoods instead of disposable packing materials. with the requirements of the EU Ecolabel. as reductions in consumption of both en- gy consumption of the laundry and the of-
In the last couple of years, the impact of textile services on glo-
Furthermore, as a result of washing, harmful substances such as The environmental values of the work- ergy and water. fice. Energy efficiency in the office has
bal warming has been at the centre of studies commissioned by
oils and heavy metals end up as the laundry’s waste, and the tex- wear service are also visible in the selec- Most of the energy consumed by the received particular attention in the new
the European Textile Services Association (ETSA). In the most
tile renter is responsible for its appropriate disposal. This is par- tions of materials. In a workwear collec- laundries is used for heating the washing head office, which was completed in early
recent life cycle study, the Association compared the overall en-
ticularly significant in the case of washable industrial towels and tion launched for the nursing sector in water and for drying and finishing the 2010. The office windows do not allow
vironmental impact of industrial and home washing of workwear
absorption mats, which contain hazardous waste that could end 2009, Lindström adopted a blended fab- wash. In 2009, the company started sev- heat radiation from the sun pass through,
(2.0 LCA Consultants, 2007). The study showed that CO2 emissi-
up in landfills if disposable towels and cleaning rags were used ric where the polyester consists of fibres eral development projects around the en- so there is no unreasonable need for cool-
ons caused by energy consumption were 10 per cent smaller in
instead. recycled from plastic bottles. ergy-saving theme, which will in future ing in the summer. Motion detectors and
industrial than home washing. The overall impact on global war-
Textiles are maintained from 20 to 200 times during their serv- The Lindström cloth roll towel system years result in better optimisation of en- automatic timing have been used in light-
ming, in particular, is up to 30 per cent smaller in comparison
ice life, depending on the use. A Lindström roll towel, for exam- was awarded the Nordic Swan environ- ergy use and implementation of new en- ing of the building. Furthermore, employ-
with home washing. Since home washing not deemed to cause
ple, which is normally washed more than 100 times during its life mental label in 1996. In 2006, the Swan ergy-saving technology in the textile care ees turn off light fittings whenever they
any separate transportation needs at all, the effect of transports
cycle, is equivalent to some 24,000 disposable paper towels. A label was also granted to Lindström’s process. Gradual and determined build- leave their place of work.
on the quality of the air we breathe was, naturally, bigger in
roll towel that has reached the end of its useful life results in two workwear laundry and Comforta’s hotel ing of sustainable development will con- The proportion of heating of the premis-
industrial than home washing. In all, the environmental impact
kilos of solid waste, while an equivalent number of disposable and restaurant textile laundry in Sweden. tinue. In addition to optimizing energy es to total energy consumption varies be-
of professional textile maintenance was 16 per cent smaller than
towels is equivalent to 80 kilos of waste. A Vipperi® rental shop The latest laundry to receive the Swan la- consumption, insulation of steam and tween seven and nine percent annually,
that of home washing.
towel is equivalent to approximately five disposable towels. In oth- bel is Comforta’s hotel textile laundry, condensing lines and recovery of heat can and so far it has not been adjusted in ac-
er words, disposable shop towels produce many times the amount
Source: LCA study by 2.0 LCA Consultants, 2007
of waste compared to a textile towel. In addition, the service life
of the Vipperi® rental shop towel is doubled by using it as raw
Consumption of energy per kilo of textiles washed kWh/kg
material in absorption mats.
Material efficiency thinking has been included in Lindström’s 2,0
Consumption of water per kilo of textiles washed l/kg
modular operating model, which is applied in all countries of op- 1,54 1,52
1,43 Long-term
eration. The use of space at modular laundries is efficient and the 12 10,0 Long-term 1,5 1,33 1,35 goal
9,4 9,4 1,26 1,35
9,2 8,9 goal 1,24 1,24 1,24 2012
operating models are standardised. Small units are located near 10 8,6
2012 1,17
the customer, which reduces transportation distances and thus 8 1,0
the emissions from transports. It is also essential to utilize exist- 6
ing rental facilities. The company prefers to place modular laun- 4 0,5
169 571
173 367
168 160
ly fluorescent tubes, batteries and waste oil. However, the OUT 2009 2008
157 123
156 526
155 771
147 016
Transport
99 814
Lindström has given up dry cleaning almost completely, and all 80 000 Discharge to sewer network 22 %
that remains is a small dry-cleaning unit that has two dry-clean- BOD7 401 ton 485 ton
40 000 COD 1 190 ton 1 318 ton
ing machines. The largest amounts of hazardous waste are pro-
duced by the industrial towel laundry, which generates sludge Phosphorus 25 ton 50 ton
0
containing oils and solvents. Suspended solids 307 ton 377 ton
05 06 07 08 09
Heavy metals 1,5 ton 2,5 ton Heating of
Total energy Process energy Grease and oil 80 ton 107 ton premises 5 %
Transportation Is Part of the Life Cycle Process energy
Municipal waste 438 ton 425 ton 54 %
In 2009 the kilometrage increased by two per cent over 2008,
to a total of 23.4 million kilometres. The number of kilometres
Consumption of water 1000 m3
driven per kilo washed was 0.19 km, which was three per cent
more than in the previous year. Transport emissions grew in the 1200
same proportion. 1165
1114 Environmental Goals 2012 Fuel emission factors of the Nordic environmental label have been used in
1000 1092
Enhancement and optimisation of transports were especially calculating the carbon dioxide emissions of energy. The emissions gener-
963
successful in Comforta’s services whose delivery efficiency rose 800 1. Reduction of the Group’s average water consumption ated by electricity production are based on specific release figures sup-
by 14 per cent. Lindström’s Finnish trunk traffic was lightened by 800 by eight per cent from the 2007 level. plied by the electricity supplier. Emissions generated by district heating
new workwear laundries in Oulu and Vaajakoski which, together 600 2. Improvement of the Group’s average energy efficiency have been calculated based on average district heating emissions in Fin-
with ongoing route planning, provided an excellent boost to deliv- by 14 per cent from the 2007 level. land. Transport emissions have been calculated using the unit emissions
400
eries in Finland. Indeed, our long-term goal is to set up smaller 3. Increase of the waste recycling degree to 70 per cent in of VTT’s Liisa system.
modular laundries closer to customers and thus reduce the trans- 200 Finland and 15 per cent in the European and Asian subsidiaries.
port distances.
Textiles are washed in specialised laundries after which trunk 0
05 06 07 08 09
Discharged textiles
to energy 14 %
Sand + sludge 38 %
Personnel issues are of great significance Number of Employees Decreased There were 118 summer workers in Fin-
in the Group’s vision 2012, when Lind- Slightly land, 41 of them acquainting themselves
ström wants to be a preferred employer in In 2009, the Group’s average number of with working life. A total of 324 jobs were
Hazardous waste
14 %
the minds of both personnel and outside personnel was 2,203, two per cent small- cancelled, 57 of them permanent, 14
parties, and to rank with the best quarter er than in the preceding year. The number persons retired on old-age pension and
of the reference companies assessed by of staff in Finnish operations fell by a lit- three on disability pension. A total of 23
Plastics 1 % the staff in terms of Internal Company Im- tle over three per cent, in the European people were terminated for production-re-
Energywaste age. According to the vision, we will invest and Asian units the number of employees lated and financial reasons, as textile
7% Cardboard Metal 2 % Kilometrage per kilo of textiles washed km/kg in the well-being and development of our remained at the 2008 level. laundering was relocated to some other
+ paper
4% personnel and utilize our personnel re- At the end of 2009, the number of per- service centre closer to customers. The
0,25
sources on a global scale. sonnel was 2,373. The total personnel number of jobs cancelled during a trial
0,20
In 2009, strategic guidelines concern- employed by the Finnish companies at period was 16. Thus the turnover of em-
ing the Group vision were kept unchanged the end of the year was 1,362 (1,421 in ployees with permanent jobs dropped by
Sustainable Development Continues 0,15 and developed into practical steps. The 2008), whereas the figure for the Europe- one third and stood at less than 10 per
In 2008 Lindström started certification of the ISO 14001 envi- company retains its goal of long-term, an and Asian subsidiaries stood at 1,011 cent, with undesirable turnover at four
0,10
ronmental system at the company’s subsidiaries. A certification permanent employment, which will be (1,056 in 2008). and one-half per cent.
round encompassing all the service centres will be completed in 0,05
made possible by promoting job rotation In Finland the company’s adaptation to The same trend was visible in the Euro-
2010. The parent company received its first environmental cer- 05 06 07 08 09 and investing in internal recruitment. an unstable market situation was evident pean and Asian subsidiaries that hired
tificate as early as 1998, and an environmental certificate en- Mapping of competence and personal de- in the decline of fixed-term employment 126 new, permanent and 63 fixed-term
Delivery km/washed kg Trunk km/washed kg
compassing all Finnish facilities has been in effect since 2004. velopment programmes will be used to from 18 per cent to 14 per cent, while employees – the number of new employ-
Certification of the subsidiaries increases the significance of en- enhance the competence of the personnel. part-time employment increased at the ees was about one third of the 2008 fig-
vironmental matters in the company’s business operations. Well-being of the personnel is impor- same time. In the subsidiaries outside ure. 131 permanent and 146 fixed-term
In addition to annual service centre specific objectives, envi- tant, and it will be fostered with methods Finland the number of personnel de- employments were cancelled. Turnover in
Emissions of transport per kilo of textiles washed
ronmental matters are guided with the help of goals at Group lev- of preventive occupational health care creased toward the end of the year. There the European and Asian subsidiaries was
el. Material efficiency and especially energy efficiency are still fo- Year CO2 g/kg CO g/kg HC g/kg NOX g/kg Particles g/kg and various development programmes. was a higher number of fixed-term jobs, 18 and undesirable turnover seven per
cus areas of Lindström’s environmental efforts, aimed at reducing Success at work is supported with sys- whose proportion grew from 18 per cent cent. A training programme on sales man-
2005 99,2 0,16 0,15 0,67 0,03
greenhouse gasses and slowing down climate change. Develop- tematic performance evaluations and to 23 per cent. Furthermore, especially in agement was carried out in 2009, aimed
2006 87,3 0,15 0,14 0,56 0,02
ments related to water recycling and wastewater treatment will al- supportive rewards. We will focus particu- Finland, more employees were on a part- at increasing sales efficiency as well as
so be ever more important as our operations are expanding to 2007 78,1 0,15 0,14 0,45 0,02 larly on successful selection of superiors time pension, partial child-care leave, enhancing the motivation and well-being
countries with scarce water resources and poor municipal treat- 2008 73,5 0,14 0,13 0,42 0,02 and development of supervisory duties. maternity or child-care leave and on job of the sales personnel. In the subsidiaries
ment of wastewater. 2009 86,8 0,21 0,18 0,48 0,01 Personnel statistics cover the opera- alternation or study leave than a year ear- outside Finland, the largest turnover oc-
Reducing the amount of waste generated by our operations will tions of the entire Lindström Group. The lier. curred as in earlier years in sales person-
be a challenge in the laundry sector, where most of the waste average number of personnel is calculat- nel, although it was nearly halved. Invest-
comes from an ever growing amount of textiles washed. It is even ed by taking into account the monthly Significant Reduction in Personnel ments in recruitment and sales manage-
desirable that hazardous waste contained in dirty textiles ends up Emission coefficients of three-year-old vehicles are used as a basis for the calcu- numbers of those employees who were Turnover ment, in particular, have reduced turnover
in a controlled manner in a laundry, and is sent from there for lations. When selecting emission coefficients, it has been observed that the empty paid a salary that month and by dividing The Finnish companies hired fewer per- substantially over the last three years, in
proper treatment. Since growing amounts of waste in a laundry space above the roll containers cannot be utilised at the moment, so only half of the number of part-time employees by manent employees than in the preceding addition to the situation in the labour
may signify the best solution for the environment, future objec- the maximum capacity can be used. Transport emissions have been calculated us- two. year – only 50 (172 in 2008). They hired market.
tives are particularly related to increasing recycling of waste com- ing the unit emissions of VTT’s Liisa system. about 50 per cent fewer fixed-term em- Inside the Group, approximately 40
ponents. ployees than in 2008. persons changed their jobs in Finland.
In Finland, 480 euros per employee, i.e., 20 per cent more 60 Mobile customer service
than in the previous year were spent on maintaining working ca- Customer service
40
pacity and treatment of illnesses. The increase was due to the Production
fact that Comforta’s occupational health benefits were raised to 20
Personnel, entire group
the same level with the parent company. Comforta was also 0
0 10 20 30 40 50 60 70 80 90 100
joined in charting of personnel resources that has been done in %
the parent company four years running, and also during a pre-em- Total accidents Accident density per million working hours Women Men
ployment examination. About one third of those who responded
were invited to a medical examination at the occupational health
1 CEO’s review, The report includes the CEO’s Review. Economical, social and environmental
General description of sustainability The key impacts, risks and opportunities regarding responsibility guide Lindström’s operations. www.lindstrom.fi
– key impacts, risks and sustainability have been considered in several parts of Therefore the company has not defined a
opportunities the report. separate sustainability strategy, vision or www.lindstromgroup.com
management system.
2 Organizational information The report includes general information about Bulgaria Great Britain Klaipeda Business Unit Slovenia
the company. www.lindstrom.bg www.lindstromltd.co.uk Pramones st. 7 www.lindstrom.si
Lindstrom EOOD Lindström Ltd LT-94102 Klaipeda Lindstrom d.o.o.
Office 11 6 Caxton Park Lithuania Ljubljanska cesta 1
3 Description, scope and assurance The report describes Lindström’s operations Lindström’s sustainability report has not
276 Botevgradsko shosse Blvd. Bedford MK41 0TY 1295 Ivancna Gorica
of the report widely and defines: been assured.
- reporting principles Sofia 1839 Great Britain Poland Slovenia
- calculations formulas Bulgaria www.lindstrom.pl.com
- changes in reporting Hungary Lindström Sp z.o.o. Sweden
- GRI-content comparison. China www.lindstrom.hu Ul. Marywilska 34 www.lindstromab.se
The process of defining the essential issues has been www.lindstrom.cn Lindström Kft. 03-228 Warszawa Lindström Services AB
completed and is commented in this report. Lindström Elérhetőségeink: Poland Tumstocksvägen 1
428 Xinglong Street Gellért újsor 12. SE-187 66 Täby
Suchun Industrial Square 8000 Székesfehérvár Romania Sweden
4 Corporate Governance The report describes firm administrative bodies, Sustainability principles, values and Block 27 Magyarország www.lindstrom.ro
Commitments towards initiatives independence of the board, interest groups, initiatives procedures (see comment 1 on this page).
Unit E Hungary Lindström SRL Turkey
Product safety that Lindström is committed to - and memberships in
Suzhou Industrial Park Bucharest, www.lindstrom.com.tr
Cooperation with interest groups different associations. Processes in place for the highest
governance body to ensure conflicts of
215126 P.R.China Fertő utca 1/D. str. Drumul intre Tarlale nr Lindström Tekstil Hizmetleri ve
The report states, that leadership rewarding is based interest are not reported. 1107 Budapest 160-174, Ticaret Ltd. Şti.
on both financial and social responsibility indicators. Lindstrom (Suzhou) Co, Hungary complex Apollo, Küçükyalı İş Merkezi
The precautionary approach introduced in Limited, Beijing Branch cladire B3, sector 3 Girne Mahallesi
the Rio Principles is not as such reported Daxing District Huangcun Dózsa György út 60. Romania D Blok No: 16
although product safety matters are Beijing Printing and Packaging 5200 Törökszentmiklós Maltepe İstanbul
perceived in this report. Industry Park, Hungary Russia Turkey
Base on the 8th Haixin Road, www.lindstrom.ru
5 The Disclosures on Management Building 7, India ZAO Lindström Ukraine
Approach and results 102600 P.R. China www.lindstrom.in Southern St. Petersburg www.lindstrom.ua
Lindstrom Services India Private Sofiskaja Ul 8 OOO Lindström
Economical responsibility Flow of capital among different stakeholders. Geographical segments reported are: Czech Republic Limited 192236 St. Petersburg Viskoznaya str., 8
Main economic impacts of the organization Finland, European subsidiaries, and Asia. www.lindstrom.cz Chennai Business Unit Russia 02094 Kiev
throughout society have been reported. Lindström s.r.o. No 68 A, Sidco Industrial Ukraine
Suppliers of goods and services have been reported. Skandinávská 999 (POB 22) Estate Northern St. Petersburg
Recruitment of local leaders is reported. 267 53 Žebrák Ambattur Chennai 600098 Kurortny raion, Sestroretsk, COMFORTA
Development of local infrastructure and work-division Czech Republic India Voskova str. 2
into provinces has been reported. 197701 St.Petersburg www.comforta.fi
Estonia Mumbai Business Unit Russia www.comforta.com
Environmental responsibility The environmental dimension of sustainability reported The following matters are not relevant to www.lindstrom.ee A-83, TTC Indl. Area Comforta Oy
cover impacts on natural systems. Lindström’s operations: Lindström OÜ Navi Mumbai, Dist. Thane Vagonostroitelnaya Str., 49. POB 47 00581 Helsinki
Indicators cover management approach, usage of raw - Performance related to biodiversity Liivamäe tee 3, Loo Maharashtra Kaliningrad
materials, energy and water. Effluents and CO2 and - Impacts on ozone loss 74201 Harju maakond India Russia Sweden
transport emissions have been reported. - Return of product packaging materials Estonia www.comfortaab.se
Waste distribution, environmental risks, and (a rental textile service). Latvia ООО Lindström Comforta Ab
possible environmental remarks have been reported. Lindström has not received fines or environ- Haigru Teeninduskeskus www.lindstrom.lv 141402 Moskovskaya oblast, Gärahovsvägen 3
mental penalties during the reporting period. Haigru 11 a Lindstrom SIA gorod Khimki 567 23 Vaggeryd
10615 Tallinn “Ābeles” 74 km MKAD vladenie N3 Sweden
Social responsibility Development of the number of employees has been Men and women’s salaries are not followed Estonia Piņķi Russia
reported. or reported separately. Babītes pagasts Estonia
The quality of attachments, the turnover of workers and Tartu Teeninduskeskus Babītes novads yl. Monastyrka 1V c/o Lindström OÜ
rearrangement of employment have been reported. Internal rules towards bribery and corruption Vabriku 7/9 LV-2107 603016 Nizhniy Novgorod Liivamäe tee 3, Loo
Freedom of association and collective bargaining has and communication guidelines have been 60511 Vahi küla Latvija Russia 74 201 Harju district
been reported. described earlier in this report. Tartumaa Estonia
Occupational safety statistics and preliminary precau- Estonia Lithuania Slovak Republic
tions are reported. Political donations are described in www.lindstrom.lt www.lindstrom.sk Russia
Time and budget spent on personnel training has been corporate sponsoring principles. Germany UAB Lindstrom Lindström s.r.o. c/o ZAO Lindstrom
reported as well as the division of men and women into www.lindstromgmbh.de Vilnius Business Unit Orešianska ul. 3 Sofiskaja UL 14
different positions. Lindström has not reported or received
Lindström GmbH Savanorių pr. 183 917 00 Trnava 192236 St. Petersburg
In addition the life cycle and supply chain of products fines or sanctions regarding product safety.
Airportpark Mönchengladbach LT-02300 Vilnius Slovenská republika Russia
is described and product safety and information and
labelling issues reported.
Willicher Damm 111 Lithuania
Human rights i.e. child labour issues are relevant 41066 Mönchengladbach
and only reported as a part of the Supplier Code of Germany
Conduct.