SUSTAINABILITY:
Systematic work for sustainable corporation
SUSTAINABILITY:
long-term work for the benefit of society
Edita Group helps its customers communicate more effectively and provides them with reliable printed and digital information.
The Group consists of three business areas: Edita Prima specializes in technology and production services for customer communication of companies and organizations. Edita Legal Information provides legal information experts with the latest legal professional information in the form of online services, training and books. Edita Learning provides high-quality learning materials and training in the field of teaching and education to support learning and teaching.
We can rightly say that our companies influence our society in many ways.
Sustainability
Edita Group’s sustainability strategy was updated and approved at the end of 2022. We strive to have a positive impact on society and run our business in a responsible manner. Delivering value to our stakeholders and maintaining their trust is at the core of our operations. We strive to work closely with our customers and want to offer them solutions that contribute to their business growth and increase their customer satisfaction.
Edita Group’s sustainability activities correspond to the areas of environmental and social responsibility and good governance, which form the basis of our corporate social responsibility (ESG) efforts. Edita Group also strives for profitable growth that supports sustainable business. This includes financial responsibility and good corporate citizenship.
The development of sustainability is guided by the company’s policies, guidelines and commitments, as well as guidelines defined by third parties that are central to the company’s business. We assess the risks related to sustainability as part of overall risk management. Sustainability risk management includes an assessment of financial and any reputational risks.
In our operations, we comply with legal requirements and act transparently. We have conducted systematic sustainability work since the early 1990s.
Our Code of Business Ethics guides the activities of each employee of Edita Group with all of our stakeholders, which include employees, customers, partners and shareholders. We also expect our partners to comply with our Code of Business Ethics.
Finland is one of the most successful countries in the world by many indicators. This would not have been possible if not for two things. Our legal system is the bedrock of the functional society. Education has made it possible for Finland to become one of the most successful countries in the world.
Edita Learning and Edita Legal Information are involved in building both of these. Our goal is to make excellent education even better by providing the best learning materials for teachers and students. Our legal information services provide up-to-date legal information to professionals and citizens so that society and business can thrive.
Edita Prima helps companies and organizations communicate better with their stakeholders. Communication is important to people, businesses and society. Communication also plays an essential role in improving social well-being and promoting environmental awareness.
Creating value for our stakeholders and maintaining trust is at the core of our operations.
Environmental responsibility:
Towards carbon neutrality
In our operations, the biggest environmental impacts are caused by the production and logistics of printed products. We reduce our own and our customers’ environmental impact by investing in sustainability in our operations and services. We strive to select domestic environmentally certified suppliers and minimize the environmental impact of logistics.
In our production, we carry out systematic environmental work and focus on the continuous improvement of the level of environmental protection. One important step in reducing our carbon footprint has been the transition to electricity from renewable sources. Besides improving energy efficiency, we avoid unnecessary travel and prefer video meetings when it is the most efficient way to do business.
We strive for carbon neutrality in accordance with the objectives set for state-owned companies.
Social responsibility:
Inspiring and inclusive leadership
We are committed to building a growth culture by providing employees with learning opportunities, nurturing their talent, as well as supporting inspirational leadership and fair rewards for achievement. We believe that a working community based on trust and transparency, in which individuals from different backgrounds and experiences work together, is essential for the success of our company. Promoting equality is an important goal for us. We also promote respectful and inclusive leadership.
We encourage our employees to work together to strengthen our culture and our ability to meet customer needs. Our guiding principles are an integral part of our day-to-day work, and they guide our operations and develop our culture.
Employee well-being and family friendliness are important values to us. We measure the well-being of employees and develop our operations in cooperation with the personnel in order to provide a good working community. Our concept of the family is diverse and aims to take into account our employees’ individual situations and work/family balance. We also want to influence the future of young people in society by offering traineeship and work opportunities for young professionals.
Good governance:
Transparent and honest operations
Edita Group adheres to the principles of good governance. Our goal is to be honest, transparent and responsible in everything we do. We comply with statutory requirements and honestly and transparently communicate about our business.
Our Code of Business Ethics guides the activities of every Edita Group employee with all of our stakeholders: employees, customers, partners and shareholders. We also expect our partners to comply with our Code of Business Ethics. We do not tolerate bribery or corruption in any form.
We respect all internationally recognized human rights in everything we do and expect the same from our suppliers and partners. The Group’s internal whistleblowing channel aligned with the EU directive facilitates anonymous reporting of irregularities related to the Group or its business areas.
Financial responsibility:
Profitable growth reliably
We strive to run our business profitably and provide our stakeholders with reliable and high-quality products and services, which helps to maintain long-term partnerships. We operate efficiently with the goal of long-term profitability and growth. Effective internal control ensures the reliability of information, and regular risk monitoring allows us to respond to risks in a timely manner and manage them.
Environmental responsibility:
Reducing carbon footprint
We reduce our own and customers’ environmental impact by investing in sustainable operations and services.
In our production activities the environmental work is systematic and focused on continuous improvement. One important step in reducing our carbon footprint has been the transition to electricity from renewable sources. We have centralized our operations and increased our use of premises in and efficient way. This has led to increased energy efficiency and improved management of the office practices.
Social responsibility:
Culture of growth and collaboration
We are committed to building a growth culture providing employees with learning opportunities, nurturing their talent, offering inspirational leadership and fair rewards for achievement. We believe that individuals with diverse backgrounds and experience, working together in an environment built on trust and transparency, are essential to our success.
We encourage employees to collaborate with each other to strengthen our culture and ability to meet customer needs. Our Guiding Principles are an essential part of our daily work, and they guide our behaviour and develop our culture towards a desired ethical direction
Good governance:
Transparent operation
Edita Group follows principles of good corporate governance. Our goal is to show integrity, transparency and accountability in all our operations. We comply with legal requirements and are honest and transparent when communicating about our business.
Financial responsibility:
Profitable growth
We aim to conduct our business in a profitable way and provide our stakeholders with reliable and high-quality products and services in order to sustain long-term relationships with them. We run our business efficiently aiming for long-term profitability and growth. Efficient internal control safeguards reliable information, and regular risk monitoring enables us to react and manage risks in time.
Maintaining the trust of stakeholders
Maintaining the trust of stakeholders
Edita Group wants to operate in a way that helps us maintain the trust of our stakeholders. We always seek to work ethically, responsibly and in line with our Guiding Principles with our stakeholders.
Employees
Edita Group aims to be an attractive and responsible employer. We are committed to promote
a good dynamic workplace and to create interesting career and development opportunities for our people.
We appreciate employees that demonstrate self-leadership, accountability and collaboration and believe that good leadership and a strong organizational culture are the cornerstones for employee engagement and high performance. We respect an employee’s right to balance their private and professional lives and believe it helps us attract and retain competent people.
Customers
Ongoing dialogue with customers is part of the fundamental nature of our business. We have daily dialogue with customers about their needs and expectations.
We aim for honest and accurate communication about our customers’ business as well as the services and products we create for them. We always seek a customer’s approval before openly discussing or publicizing a service we have created for them.
Partners
We treat our suppliers and sub-contractors equally and seek for cooperation build on trust and confidentiality. We focus for objective assessment of price, quality, and reliability in competition. We expect our partners to comply with our code of conduct and to oppose illegal and unethical labor practices as do we.
Owner
Edita Group Plc is a Finnish public limited company owned by the Finnish state that holds 100 percent of the shares. The owner is represented as member of Edita Group’s Board of Directors and regularly receives information about our business in the form of financial reports.
Monitoring risks proactively
Monitoring risks proactively
Risk management is an inseparable part of Edita Group’s strategic planning and operational goal setting. Risk management is based on an organization-wide approach to identifying, assessing, managing, and monitoring various risks.
The executives are responsible for managing risks related to corporate responsibility and reacting accordingly. Edita Group’s board of directors has approved the risk management methods applied by the executives. The executives assess the likelihood and significance of each risk. The Board of Directors also monitors and assesses risks that have been categorized as significant.
Financial risks
Regular monitoring of financial risks helps us to identify risks related to our business operations and react to them in advance. A risk can be anything that might have an impact on the company’s ability to meet its business objectives.
People
Our most important non-financial risks are related to people. These risks include:
- Management and the key people who work closely with key customers deciding to leave the company.
- Challenges in recruiting talented specialists with right cultural fit and managers who can develop the business and are good leaders.
- Failure in engaging the key people.
- Occupational risks related to printing, such as accidents, chemical leaks or fires at production plant.
We manage people-related risks by implementing good employee experience and talent attraction. In addition, we focus on employee and leadership development. We work for enhancing a collaborative growth culture, nurturing and inspiring leadership and efficient talent development and recruitment practices. We maintain good lines of communication, communicating as openly as possible, and enhance employees’ involvement in developing our business.
Environmental risks
A fire or a chemical leak at a production plant could damage the environment. We consider our other environmental risks to be minor.
Environmental risks are mainly managed through various environmental management systems, such as compliance with the ISO14001 standard; our production company follows procedures established in environmental management systems to identify and prevent potential emergency situations and accidents that could harm the environment. These procedures are audited annually by accredited third parties. The companies regularly review and test their emergency preparedness and response procedures.
Climate change
Climate change is not a substantial risk for our business. Nevertheless, we find combating climate change very important as it is the greatest threat to sustainable development globally.
We have managed to reduce our climate impact significantly since 2008 when we began assessing the ways in which our business contributes to climate change.
In 2009, we started taking measures to reduce our carbon-dioxide emissions and began compensating for a proportion of these emissions. Further information can be found on the environmental responsibility section.
Financial responsibility
- Governance
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Environmental
responsibility -
Social
responsibility -
Financial
responsibility
sustainable
cooperation
with
stakeholders
Edita Group’s aim is profitable business and reliable and long-term cooperation with key stakeholders, our personnel, customers and owners. Other important stakeholders include partners, service providers, investors and countries and municipalities where we operate. During the reporting period 1 July 2022–31 December 2023, Edita Group comprised three business areas: Edita Legal Information, Edita Learning and Edita Prima.
Edita Group adheres to the principles of good governance. Financial management is based on the Group’s guiding principles, efficient risk management and internal control principles.
Financial result in the reporting period
The Group continued to develop its business and structure with a view to improving its efficiency and meeting the changing needs of customers better. In early 2023, the Group changed its leadership structure. One of the aims of the change was to support the strategy implementation of Edita Learning and Edita Legal Information and make their operations more efficient. Edita Legal Information and Edita Learning business areas were part of Edita Publishing Oy until 31 December 2023. Edita Publishing Oy was partially demerged on 31 December 2023, when the Edita Legal Information business area remained in the company and the company changed its name to Edita Lakitieto Oy. The Edita Learning business area transferred to the Edita Oppiminen Oy, which was established during the financial year.
In order to grow and succeed in the future, the Group continues to develop its offering and processes, invest in the development of its personnel and working methods and improve the cost-efficiency of its operations.
The Group’s financial year had a duration of 18 months, covering the period from 1 July 2022 to 31 December 2023. The comparison period was also 18 months (1 January 2021–30 June 2022). During the financial year, the Group started reporting its consolidated financial statements in accordance with the Finnish Accounting Standards (FAS). In the past, the Group prepared its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). In these financial statements, all the figures for the financial year and the comparison period are reported in accordance with the FAS. The net revenue for Edita Group was EUR 96.9 million (EUR 120.3 million), with an operating profit at EUR 13.6 million (EUR 2.6 million). The Group’s financial situation is described comprehensively in the financial statements prepared for the period 1 July 2022–31 December 2023, available here.
Internal control and risk management
Edita Group’s aim is to ensure the profitability of its business through good governance, active internal control and risk management.
The Group makes annual risk analyses in connection with its budget. All risks are reported and discussed immediately. The Board of Directors made no separate assignment concerning internal control during the reporting period.
|
Added value of operations in financial period 1 July 2022 - 31 December 2023 |
EUR 1000 |
|---|---|
|
Net revenue |
96 915 |
|
Other operating income |
11 888 |
|
Materials and services |
51 276 |
|
Employee benefits expenses |
18 378 |
|
Other operating expenses |
22 581 |
|
Dividends to shareholders |
– |
|
Interests and other financial costs paid to providers of capital |
174 |
|
Income tax, real estate tax, and employer charges |
3 096 |
|
Value added taxes remitted to tax authorities |
4 780 |
Conducting profitable business
Conducting profitable business
Added value for stakeholders
We provide stakeholders with added value in order to sustain long-term relationships
Strong financial position
We run business efficiently, aiming for long-term profitability.
Internal control and risk management
Efficient internal control safeguards reliable information, and regular risk monitoring enables us to react and manage risks in time.
Tax policy and operating
principles
Edita Group pays taxes on its corporate income to each of its operating countries, in accordance with local laws and regulations. After divesting the Nordic Morning business area, the Group has no operations outside Finland. In our reporting, we follow the 2023 guidance for state-owned majority-owned companies on country-by-country tax reporting.
More information on the Group’s tax policy and operating principles can be found in the table below.
The Group’s principal market is Finland. During the comparison period, the Group also had subsidiaries and offices in Sweden. The Group has no legal persons or business in other countries or in countries regarded as tax havens. The Group’s aim is to secure and increase shareholder value through profitable and efficiently managed business operations.
Similarly, the aim of the Group’s tax policy is to secure shareholder value by ensuring compliance with the local tax legislation of each country at all times and by paying taxes to the country in question.
In tax matters that are open to interpretation or otherwise complex, we use external tax experts as advisors. If necessary, we will also discuss with the tax authorities or request advance rulings.
The aim of the Group is to process taxes and other payments appropriately, as quickly as possible and in compliance with legislation.
Edita Group’s transfer pricing policy specifies the pricing principles for internal cross-border trade. The transfer pricing policy is in line with the currently effective official instructions and legislation.
Tax report
Tax report
Edita Group pays direct taxes on its earnings and assets. Indirect taxes include, for example, value added tax and other similar payments, such as employer contributions and social security contributions, which the Group collects on behalf of the state.
In the reporting period 1 July 2022–31 December 2023, the Group’s profit before tax was EUR 13.5 (2.2) million. The Group’s income tax was EUR 2.8 (0.2) million.
At the end of the extended financial year, the Group’s deferred tax assets were EUR 0.1 (0.0) million. The Group had no deferred tax liabilities. In accordance with the precautionary principle, the Group does not recognise assets as deferred tax assets for financial years that resulted in a loss.
The statutory employer’s contributions paid to the tax administration for the financial year amounted to EUR 0.2 (3.4) million. VAT payments were EUR 4.8 (10.5) million. Withholding taxes remitted on wages and salaries were EUR 4.0 (9.4) million. The change from the previous financial year was, in particular, affected by the divestment of the Nordic Morning business area on 31 January 2022.
Edita Group also paid other mandatory taxes and payments, such as real estate tax, and indirect taxes related to purchases, such as energy and insurance taxes.
Tax contribution
| EUR 1000 | Operations | |
|---|---|---|
|
|
1 July 2022 – 31 December 2023* |
1 Jan 2021 – 30 June 2022’*) **) |
|
Turnover |
96 915 |
120 299 |
|
Profit Before Tax |
13 530 |
2 235 |
|
Personnel |
177 |
298 |
| Taxes borne | ||
|---|---|---|
|
Corporate income tax |
2 753 |
182 |
|
Employment taxes |
212 |
3 415 |
|
Taxes on property |
131 |
90 |
|
Other taxes |
– |
389 |
| Taxes collected | ||
|---|---|---|
|
Payroll taxes |
4 040 |
9 362 |
|
Sales VAT |
22 723 |
31 116 |
|
VAT, purchases |
-17 943 |
-20 626 |
|
VAT, payments |
4 780 |
10 490 |
*Extended 18 months financial period
** During the comparative period, the Group also included the Nordic Morning business area, which was divested on December 31, 2022.