Tokmanni Group Corp

CORPORATE RESPONSIBILITY work at Tokmanni is based on Tokmanni's values and ethical guidelines and is guided by the sustainability strategy updated in 2021. The highest governance bodies of Tokmanni are the Executive Group and the Board. Tokmanni's ethical guidelines consist of the Tokmanni Code of Conduct and related principles, policies, and guidelines. The Board of Directors has approved Tokmanni's Code of Conduct and related ethical principles. Policies are approved by the Executive Group and guidelines by the Sustainability Steering Group. The only committee of the highest governance body is the Finance and Audit Committee of the Board. Tokmanni's CDP report and the Corporate Governance Statement detail the role of the committee and other governance bodies in overseeing the management of and decision-making concerning the organisation's impacts on the economy, environment and people. In the absence of Board deals directly with the management of impacts on people and the environment. [...] The President and CEO is responsible for the big picture In matters of Tokmanni's sustainability*, the ultimate responsibility lies with the President and CEO, who reports to the Board of Directors regularly on the topic. The President and CEO oversees the organisation's due diligence and manages the organisation's impacts on the economy, environment, and people. The Board approves the corporate strategy, which includes the sustainability strategy. The Board also covers corporate responsibility matters as necessary. In its annual reporting, the Board also approves the statement of non-financial information (NFI) required by chapter 3a of the Accounting Act (1336/1997). The NFI includes the same description of yearly sustainability targets and their progress as Culture and Sustainability, who is a member of the Executive Group, is responsible for the operative management of sustainability work. In the Executive Group, the VP of People, Culture and Sustainability is responsible for materiality analysis and stakeholder engagement and discussions. The involvement of stakeholders is continuous and the results are constantly taken into account when updating the sustainability goals. [...] The Head of Corporate Responsibility drives the sustainability strategy and agenda forward Yearly sustainability targets are approved by the Executive Group. The Head of Corporate Responsibility works with different business units and departments. Their task is to prepare yearly sustainability targets and targets are met. The Head of Corporate responsibility topics, policies, and targets. Responsibility reports to the VP of People, Culture and Sustainability. The Head of Corporate Responsibility is delegated the responsibility of stakeholder engagement. Stakeholders are consulted to support sustainability processes on a needs-based approach when a materiality analysis update is conducted. The outcomes of stakeholder engagement are included in yearly planning and operations and monitoring is conducted by the Sustainability Steering Group on a bimonthly basis at minimum. The principle of due diligence and the precautionary principle guide all of Tokmanni's operations including sustainability work. [...] In 2019, Tokmanni established its Sustainability Steering Group. Since mid-2021, it has been headed by the VP of People, Culture and Sustainability. The group members include the President and CEO, the CFO, the VP of Marketing and Communications, the VP of Sourcing, the VP of Store Network and Concept, the Quality Manager, and the Head of Corporate Responsibility. The steering group meets every two months to advance the collective knowledge, skills and experience of its members on sustainable development. The VP of People, Culture and Sustainability makes the decision on whether a specific Corporate topic requires a separate discussion and decision by the Executive Group. Annual sustainability goals and the most significant updates to the sustainability strategy and sustainability policies are discussed in the Sustainability Steering Group, and, if deemed necessary by the VP of People, Culture and Sustainability, in the Executive Group. In this report, the sustainability goals of each theme are covered in the sections concerning said theme. Sustainability and climate change risk management is part of the company's risk management process. The approach is assessed annually and is led by the CFO. In terms of reviewing the effectiveness of the highest governance body and its processes in overseeing the organization's due diligence and other processes to identify and manage the organization's impacts, the corporate strategy (2021–2025) are key. The VP of Strategy, Business Development and eCommerce reports the progress of the projects to the Board on a monthly basis and the Board discusses the most current ones in each of its meetings. In addition, twice a year, the Board holds a strategy meeting where the progress of the corporate strategy (including sustainability) and the priority areas for the following year are discussed. Sustainability forms part of the corporate strategy.

The Board of Directors has approved Tokmanni Group's Code of Conduct and related ethical principles as well as non-financial information in the report of Board of Directors that includes Tokmanni Group's material sustainability topics. Policies are approved by the Executive Group and guidelines by the Tokmanni Sustainability Steering Group. The Group's new Sustainability and Personnel Committee will monitor such documents in the future. [Tokmanni's CDP report and the Group's](https://www.cdp.net/en/responses) [Corporate Governance Statement detail the](https://ir.tokmanni.fi/en/investors/reports-and-presentations) role of the governance bodies in overseeing the management of and the decision-making concerning the organisation's impacts on the economy, environment and people. More detailed information about managing impacts can be found in each topical section [...] The Vice President, People, Culture and Sustainability, has the overall responsibility for the operative management of sustainability and own employees and value chain workers related topics, as well as stakeholder engagement and discussions at Tokmanni. At Dollarstore, the Head of HR has the responsibility for employee related topics. In addition, in 2023, the Board's Sustainability and Personnel Committee was established to foster these efforts by assisting the Board of Directors of Tokmanni Group also in people-related topics. [...] Tokmanni Group offers internal and external whistleblowing channels for anonymous reporting of violations of Code of Conduct and ethical guidelines, including human rights violations. Tokmanni Group prohibits retaliating against workers who report a concern in good faith. The anonymity of the channels ensures protection for the whistleblowers. A designated group of trained individuals independent of the matter handle the complaints received from whistleblowing channels. At Tokmanni, only the Chief Compliance Officer (CCO) and the Head of Corporate Responsibility have access to whistleblowing reports. They coordinate the further processing of the cases and in serious cases immediately engage Tokmanni's Compliance team. Tokmanni's channels, available in English and Finnish, can be accessed via intranet or website, hence also available to external stakeholders. Violations can also be reported via phone or email to the Compliance team, headed by CCO, who is in charge of all compliance-related matters. The CFO acts as the CCO and reports directly to the Group President on compliance matters. In addition to the CCO, the Compliance team includes four compliance officers, who each have their own remits. They coordinate the further processing of the cases and in serious cases immediately engage Tokmanni's Compliance team. On a yearly basis, there are communications on the channels encouraging stakeholders to file a complaint if they see any violations against the Code of Conduct. [...] Additionally, it is possible to identify and address grievances through key stakeholder groups such as the Finnish Commerce Federation, which Tokmanni is a member of, and through the process of collective agreements in which the Finnish Commerce Federation participates. Tokmanni also has grievance mechanisms in the supply chain. You can read more about them here. [...] The Group does not financially support political parties, groups or individual politicians, nor purchase anything from them. In line with the Code of Conduct, Tokmanni Group did not make any financial or in-kind political contributions directly or indirectly in 2023.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]In 2020, Tokmanni updated its corporate strategy for the years 2021 to 2025. Sustainability strategy is part of the corporate strategy, and climate change strategy is part of our sustainability and corporate responsibility (CR) strategy. The development and implementation of the sustainability strategy is led by the Head of Corporate Responsibility and the VP of People and Sustainability, and the strategy is approved by the Board of Directors. Progress in achieving targets is followed by the Sustainability Steering Group and Executive Group. The purpose of the sustainability strategy is to take into account and maximize new opportunities within sustainability and business operations and minimize sustainability related risks. Employee training and internal communications inform employees about Tokmanni's sustainability and climate change strategy.

Tokmanni seeks to influence policies in areas where it already has existing internal policies and positions in place, and which are in line with its sustainability and CR strategy. On new topics, Tokmanni engages selectively with key industry groups, shares information and develops its stances together with relevant employees and the Sustainability Steering Group. The Head of Corporate Responsibility leads this work.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes