HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

Framery
Sustainability
Report2022
FRAMERY SUSTAINABILITY REPORT 2022

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

2Contents
3

This is Framery									

41 HOW WE GOT HERE

5

CEO’s review									

6The world’s most sustainable pods				8Strategy 									

9Our impact on the world 					

112 SUSTAINABILITY AT FRAMERY

13

Our sustainability work 							

14Climate and Environment 					

19People and Society									

25Fair Business 					

363 REPORTING PRINCIPLES

43

How our report was created				

44

GRI content index				

45

FRAMERY SUSTAINABILITY REPORT 2022

About this report									HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES3SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy

About thisreportOur impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progressThis is our fourth annual sustainability
report. Our goal is to highlight
our continued progress and workon sustainability, as well as ourmanagement approaches that support
our three primary focus areas: Climate
and Environment, People and Society,and Fair Business. This report has been
compiled in accordance with the GRI
Sustainability Reporting Standards(GRI Standards). You can find the GRI
content index at the end of this report.

HOW WE GOT HERESUSTAINABILITY REPORT 2022
About this report
This is Framery

Around 70% of all’Forbes 100’ companies
use Framery products.

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

154

In 2022, ourrevenue was
EUR 154 million.

98

Our end-customers
can be found in 98
different countries.

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLESThis is Framery
Framery is the pioneer and world’s leading manufacturer of acoustic pods, phone booths andsoundproof private spaces for solving noise andprivacy issues in offices and other venues. Our
products make employees happier and moreproductive in the offices of many of the worlds’
leading companies, including Tesla, Puma andMicrosoft. In fact, around 70% of all ’Forbes 100’
companies use Framery products.
In 2022, our revenue was EUR 154 million (2021:
94 MEUR). In the next few years our growth isprojected to strongly increase.

We employ around 400 people in 15 countries andour end customers can be found in over 98 different countries and across all inhabited continents.
Our headquarters are in Tampere, Finland, wherearound 90% of us work. All our products are manufactured in Tampere.
Our product family is made from durable, renewable and recyclable materials and our pods aredesigned to have a long lifespan. With a strong
focus on research and development, as well asa firm commitment to practice what we preach,
we remain determined to find the keys to overall
work-life happiness – in a sustainable manner.

Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

400

We employ around
400 people in
15 countries.

TampereOur headquarters are
in Tampere, Finland,
where around 90% of
us work.

‘Our products makeemployees happier and moreproductive in the offices ofmany of the worlds’ leading
companies, including Tesla,
Puma and Microsoft.’

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress
Management

4HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

51		 How we			 got here
FRAMERY SUSTAINABILITY REPORT 2022

CEO’s review 										6The world’s most sustainable pods 		 8Strategy 												9Our impact on the world						11

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLESCEO’s review
SUSTAINABILITY REPORT 2022
About this report
This is Framery

6

At Framery, we make the world’s most sustainable pods.
This may seem a bold statement, but it’s founded on solid
reasoning. It all started years ago when we designed thefirst pods, and continued in the same, ever more focused
direction with their incremental development.

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

The surfaces of the materials we use can endure
wear and tear better than those used by most of
our competitors. The idea is for them to be able totake decades of usage. You can reuse them, installthem, take them apart and install them again.
This can be done countless times without affecting the functionality or the quality of the product:
it’s built for this purpose.
Our pods are designed to have multiple life spans– we offer a subscription model to allow several
customers to benefit from their design and functionality, our pods have also proven popular on thesecond-hand market. This is also reflected in theiraesthetics: we create timeless designs that are
simple and robust, untethered to any particularperiod or design fashion. This is an important factor in our effort to make products that are bothusable and visually appealing in the longer term.
Another pertinent point is that we source the materials from close by. Over 90% of the materials
we use come from within a 500 km radius of ourfactories, and we only use wood from certified forests. Going forward, our focus will be on the needto minimize the amount of material – particularly
virgin and non-renewable material – used for eachproduct we make. This has become our main sustainability goal, in addition to prolonging the product’s lifespan even further.
Making the world’s most sustainable pods is one
thing, but we want to also ensure that we do so ina responsible manner. We make sure that social
responsibility is firmly accounted for in our supply chain by insisting that our partners sign our
Supplier Code of Conduct, which stipulates thatthey do not violate labor rights or break any otherinternational human rights rules or laws, and share
our zero-tolerance approach to corruption. We also
visit them regularly to verify that this is the case.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

There are a variety of angles to consider in upholding our claim, but it all starts from our commitment to high quality – guaranteeing that they
are soundproof and safe for users. We have maximized their lifetime through our material choicesat the design stage, a distinct approach in themarketplace, as well as eliminating the use of all
toxic materials in our products – and non-sustainable materials – to the greatest degree possible.
We have also emphasized the recyclability of the
products and the use of recycled materials asmuch as is viable.

HOW WE GOT HERESUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

The world’s way of working has changed permanently. We won’t see a return to the occupancy
rates in offices that we saw prior to the pandemic,
and this has several impacts in terms of how offices will be built now and in the future. The officeof the future will be less about doing individual
work, and more about collaborating and connecting with people.
Any breakthrough in the life of a company requires
both concentrated work done individually andcollaboration among colleagues. Our products are
the perfect tool to enable both. We provide thespaces to allow people to concentrate, as well as
the best possible way to collaborate, regardlessof each participant’s location. In our larger pods,
we provide the best possible all-round experience– enabling hybrid meetings where some might beremote, and others present – while the smaller
ones represent the optimal spaces for pure online
participation.
These are the ways in which we enable the newnormal for working life, and I think it’s good torecognize the different needs more broadly than
we have previously. These changes will have more
far-reaching effects: there will be less commuting
and therefore less pollution. There will be less business travel, which is also a positive shift.
Offices in general will be less occupied, theamount of office space will most likely be reduced
to some extent, and there will be fewer people persquare meter in the space that remains. I foreseea change from workstation fields to spaces thatallow different kinds of collaboration and connection between people. We will still need workstations, and some people will always work better alone in the office, but the need for variety is
increasing, and happily enough, we are providing
spaces for many of these new, emerging, or growing needs. I see Framery at the center of thesechanges, consistently enabling the most effective
working methods.
Sustainability issues are at the core of our business, and therefore a topic of discussion for the
management team throughout the year. The management team goes through these issues with theboard formally on an annual basis, and prior to thismeeting, we take a session to address them comprehensively in a deep dive into the topic.
Our emission reductions targets are in line with
the Paris Agreement, approved by the Science
Based Targets initiative, which unites some of
the world’s biggest corporations and brands in a
combined effort to limit global warming. Our next
priority is to create a vision to make our businessgoals viable in the context of planetary boundaries, which is why we signed up for a circular-design
training programme in late 2022, to take placethroughout 2023. We believe circularity is the solution to tackle the climate change, nature loss andresource overconsumption crises.
To take a moment to mention recent events andtheir impacts, I would point out that 2022 wasa year of two distinct halves. The first obviously
included indirect impacts through the war in
Ukraine in terms of the component shortages andraw material fluctuations it caused. This began tonormalize somewhat throughout the second half,
but then we faced growing expectations for a mild
global recession, driven by inflation and the war’s
ongoing impacts.

REPORTING PRINCIPLES

7

Framery in 2022
17,000 pods delivered worldwide in 2022,
in 69 countries across the globe, including
4,760 Framery One pods.
Our partner network consisted of
526 distributors in 68 countries.

Inflation and interest rates began to rise in
September, causing the market to be less clear
and positive than it had been earlier in the year.
Towards the end of the year, the economic situation seemed to stabilize, with a certain degreeof uncertainty remaining amid fears that a mild
recession may still come.

have received their products to make surethey have everything set up and are goodto go. This represents a major investment indeveloping and creating value for our customers, and I’m very pleased with how theorganization has continued to aim for better, in terms of serving them.

These circumstances, fortunately, did not have asevere impact upon our market. The changing faceof working life, as outlined above, along with thepent-up demand and the need for change remainstronger than the potential negative impact of uncertainty in financial markets.

I’d like to thank our customers, as well as
our employees, partners, suppliers and otherstakeholders, for being a part of this journey.
We live in a time of highly rapid change, but
this still holds plenty of opportunities to affect things for the better. I hope reading thisreport will make it all the more clear that thisintention is at the core of our efforts, alongwith the concrete details of how, together,
we are making it happen.

Our NPS has been at a market-leading level forsome time now, and has stayed strong. During2022, we established a new function called
Customer Success, which is another point of differentiation in our market. To my knowledge, noother furniture manufacturer has this type offunction, actively calling customers when theySamu Hällfors, CEO

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

More broadly speaking, we actively avoid greenwashing. This means monitoring and modifying our real actions instead of simply offsetting
emissions. I personally believe that the only way
any company should proceed in the face of theclimate crisis is to minimize the footprint of its
core business.

SUSTAINABILITY AT FRAMERYHOW WE GOT HERESUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

SUSTAINABILITY AT FRAMERY

The world’s mostsustainable pods
Our pods are produced to meet the needs of the changing working
landscape, which demands flexibility and the best possible use of resourcesin every sense of the word. Their key attributes are their safety and highquality: they are soundproof, odor-free, long-lasting products with a highutilization rate, and do not pose any health hazards to their users.
As a company, Framery is committed to responsible business conduct inaccordance with the UN Global Compact and the Science Based Targets
initiative’s 1.5°C temperature goal. This also means that our pods will not be
manufactured at the expense of the environment nor using exploitative practices.

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

8

USE & REUSE
The modular design of our pods facilitates a longproduct lifetime, and our customers typically use
them for many years. The same pod can be usedby one customer after another, enabling multiple
life cycles and saving valuable resources. Thanks
to their modular design, our pods are easy todisassemble, refurbish if needed, and assemble ata new location. They are also highly maintainablewith easily available spare parts. Our products have
GREENGUARD certification.

LOGISTICS
We have logistical hubs in Singapore
and the USA, reducing air freight
and allowing us to load our shipping
containers more tightly. The
products are made following eachorder, so their modularity also helps
with this.
MANUFACTURE
All our pods are manufactured
in Tampere, Finland using 100%
renewable electricity, and ourfactory logistics are operated on
biogas and renewable diesel. The
material efficiency rate of our
production was 94.9% in 2022.
Virtually no waste goes to landfill.

LOGISTICS

REUSE

USE
RECYCLE
Our products are recyclable
and recycling instructions areavailable, but the vast majorityof the pods manufactured over
Framery’s 13-year history arestill in use today.

MANUFACTURE
RECYCLEManagement
Climate and Environment
People and Society

20%

80%

RECYCLEDSTEEL

RECYCLED
PET

Fair Business

MATERIALS
29%

3 Reporting principles
How our report was created

RECYCLEDGLASS

GRI content index
CERTIFIEDTEXTILESDESIGNCERTIFIED
WOOD

MATERIALS
Materials account for the largest share of the pods’
environmental impacts. We use renewable, recycled
and certified materials to the greatest degree
possible, and 90% of our suppliers are located within
500 km of our production facilities. All our woodcomponent suppliers are required to have FSC or
PEFC certification, all fabrics have the EU Ecolabel,
our felts and acoustic foam are ca. 80% recycled PET(plastic bottles), our steel is around 20% recycled
and glass 29%. All the raw materials we use are listedtransparently in Health Product Declarations (HPDs)
on the 100 ppm level.

DESIGNThe design of our products is crucial, as it
determines the life-cycle impacts that follow.
We maximize our products’ life cycles throughtimeless design, excellent soundproofing anddurable high-quality materials. Our modular
design concept enables the circular economy:
our products are easy to repair and refurbish,
and can be recycled at the end of their life cycle.

ENVIRONMENTAL IMPACT
We have conducted life cycle
assessment studies for our products
to measure their environmental
impacts. Alongside their carbon
footprint, we also study otherimpacts such as resource depletion
and water scarcity. The results
are verified by an independent
third party, and then publishedand registered as an EPD toprovide stakeholders with reliable
information on our products’environmental performance in atransparent way.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

REPORTING PRINCIPLESHOW WE GOT HERESUSTAINABILITY AT FRAMERY

9Strategy
SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods

In 2022, we focused on three major undertakings toadvance our renewed strategy of 2021. We developed
our new mission-critical Digital Offering and Services
division, completed our strategic workshop projects
and started moving from measuring the office tounderstanding the well-being of the people working at
the offices by using data.

Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

After launching the Digital Offerings and Services
division in 2021, we devoted 2022 to building theteam by recruiting software developers, data
specialists, artificial intelligence experts and analytics professionals.

Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Digital Offerings and Services is part of our transformation from primarily being a manufacturerof workspaces to a provider of smart data-driven
workplace services. We want to offer digital toolsthat make people’s days easier by interacting withour connected pods for working and meeting. We
believe that this unique integration of hardware
and software is the key to revolutionizing the office space industry and better serving the needs ofthe modern workplace.

Space optimization is resource optimization
We are currently developing digital services thatwill allow businesses to determine how their employees use their facilities and how to arrange
them for optimal use, as well as help their employees find and reserve available workspaces,

providing physical surroundings geared for focus
and productivity, including all the equipment theyneed to succeed at work. By helping people makethe most of the office rooms and spaces available,
space optimization helps businesses optimize theirresource use and minimize their office footprint. In
this manner, our digital offering promotes a moresustainable office tomorrow.

A sustainable product design
In 2022, we continued our product development,
making heavy investments in making our pods
more durable, thereby expanding their lifetime.
We continuously evaluate our suppliers and materials to ascertain and ensure that we know how
and where we can make the biggest impact interms of resource efficiency, circularity and climate change.
However, as important as material and supplier selection are, product design has a greater impact. When designing Framery One, wechose sheet metal-based production technology because of the design freedom, creativity
and quality it enables compared to traditional

wood-based production technology. Sheet metal’s malleability makes it ideal for mass producing parts with great precision while generating
less scrap than wood, which is desirable from asustainability standpoint.
We can also reduce the need for replacements
by designing our products to last. To make surethat the metal frames of our Framery One pods
are long-lasting, we systematically run producttests to establish their durability under normal
use. Our tests suggest that the expected lifetimeof our Framery One is fifty years. By building ourpods to last, we enable people to enjoy them for
decades to come.

Framery Subscribed — circularity in action
In 2022, our Framery Subscribed business grewconsiderably. For a fixed monthly fee, businesses
can lease pods as they need for as long as theyneed them. When the pods are no longer needed,
they are taken back to our local installation partners who will do all the necessary refurbishment,
repair and maintenance before shipping them tothe next customer. Subscribed demonstrates thevirtues and promises of circularity by ensuring thatthe pods we manufacture will be used, reused andreused again, not wasted.

Navigating the new occupational health andsafety requirements
In 2022, we started informing the office spaceindustry about the new occupational health andsafety standards that have emerged following
the introduction of office pods. Since the office
pod concept is still fairly new, most occupational health and safety standards, procedures and

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

In the office space industry, the revolution
will be digital

REPORTING PRINCIPLESHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES10SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

2022 strategy workshop project, highlightsfrom a sustainability perspective
Toward the end of 2021, we concluded the first
five-year strategy workshops. Based on those,
we defined our strategic projects for 2022. By theend of 2022, we finished our projects, and all inall, we met 80% of our targets. The aim of ourmany projects was to bring Framery’s vision of
the new digital office closer to reality by improving our core businesses, products and customer
service. Many projects also aimed to make our

products more sustainable in terms of design,
production, delivery and use, from an environmental and social perspective.

2022

Key strategic projects

A trailblazer in workday technology
Our mission is to help employees succeed by providing them with soundproof workspaces thatare conducive to focused knowledge work as wellas meaningful connections with others. We have
expanded on our vision to include offering digital services for a fully connected office. These
digital services will allow businesses to measureemployees’ well-being and happiness, as well as
how they interact with one another and with theoffice spaces. Our goal is to help businesses create happier, more productive, socially and psychologically sustainable workplaces. To achievethis, we aim to become forerunners in workday
technology, offering innovative digital services tothe office space industry.

The new Asia Pacific logistics hub. In
2022, we set up a new warehouse in
Singapore. Before the hub, we had tosell our products with a very long leadtime (up to 16 weeks), and customers
who wanted faster delivery had to relyon airfreight, which was clearly undesirable from an environmental standpoint.
Thanks to the hub, we have improved our
product availability and can offer both
faster and more environmentally friendly shipping. In addition, we can load
our shipping containers in a tighter andmore resource-efficient manner.
Educating pod installers for service life
maintenance. In 2022, we launched a
new ambitious education program for
Framery pod installers. The purpose is
to bring the installers of our pods to ourfactory to receive comprehensive training
on the inner workings of our pods so thatthey can better maintain and repair the
pods and, thereby, prolong their lifetime.
We believe this will amplify the impact ofbuilding sustainability and circularity into
the pods from the beginning.

Framery One, updated. In 2022 we continued improving our most advanced
pod, Framery One, launched in 2021. For
example, we introduced new lighting
capabilities that vastly enhanced thevideoconferencing experience. This newfeature will help us advance our goal ofincreasing customer satisfaction.
The future of meetings. In the long term,
we want to move away from measuring
the office to understanding people. We
want to find ways to collect data on employees’ mood, stress levels and general
well-being, connect those metrics to actions and events at the workplace, andpush that data to HR functions. In 2022,
we continued studying how different
kinds of meetings affect people and how
to measure their emotional reactions.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progresscertificates were made with the old, pod-freeoffices in mind. As a result, many businesses mightinvest in pods that are not up to code and, thus,
not healthy, safe or sustainably made. As pioneers
in the office pod industry, we are in a unique position to educate the market, including office spaceproviders and suppliers, dealers and architects, on
what to consider when investing in and installing
pods in offices.

HOW WE GOT HERESUSTAINABILITY REPORT 2022

SUSTAINABILITY AT FRAMERY

11

Our impact
on the world

NEGATIVE

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

SOCIETY

-0.0

Jobs

Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

human resources. The assessment includes the level and scarcity of the required education needed to
produce the pods and services we offer. We employ,for example, highly educated engineers and businessprofessionals, who are among the multiple resources we use to create all the positive impacts seen in
our net impact profile.

-0.0

Taxes

-0.0

Societal infrastructure-0.1

Societal stability

+0.0

-0.1

Equality & human rights+0.0

KNOWLEDGE+0.01

The net impact profile is a comprehensive overview
of the holistic impact created by our business. The
analysis is based on our core business, meaning the
products and services we offer and covers the total value chain. The profile has been calculated andproduced by the Upright Project’s net impact quantification model, which uses machine learning-based
technology to process the knowledge contained inmillions of scientific articles. Read more in Upright’s
Knowledge Base.

HealthOne of the most significant positive impacts we haveon the world is through better health at the workplace. By providing quiet places to work, enabling
uninterrupted focus on tasks and facilitating hybrid
work, our pods contribute positively to increased
feelings of meaning and joy. Simultaneously, our pods
act as co-working spaces and enable teamwork,
which enhances professional relationships.

-0.0

Knowledge infrastructure

+0.0

-0.0

Creating knowledge

+0.01

-0.0

Distributing knowledge+0.0

Scarce human capital+0.0Society
Like all companies, we have a positive impact on society by generating jobs and paying taxes, thus contributing to the joint resources of society. The Taxes
impact consists of corporate taxes and value-added
taxes. In addition, as our pods are furniture used in
offices, they are considered a part of the infrastructure of our society and contribute towards a positive
impact within Societal infrastructure.
Knowledge
Within the Knowledge dimension, our most significant resource is our people. Scarce human capital
measures the opportunity cost of scarcely available

Environment
Like most companies, we also use some environmental resources. Most of the negative impacts arise
from the supply chain. Emissions and waste are, forexample, created in the manufacturing of the pods,
the mining and production of the components needed, and the packaging and transportation of the
products. On the other hand, many of our activities
also have a positive impact on the environment by
increasing the lifespan, usage or durability of the
pods. Examples of such activities are the repair andmaintenance, the usage of recycled materials, andthe leasing of pods to multiple customers.

-0.53

-0.53

+1.75
+0.56
+0.93
+0.26

-0.14

HEALTH-0.13

Physical diseases

+0.05

-0.01

Mental diseases

+0.02

-0.0

Nutrition

+0.0

-0.0

Relationships-0.0

Meaning & joy
ENVIRONMENT-1.84

GHG emissions

-0.97

+1.07

+0.24
+0.76

+0.36
+0.18

Non-GHG emissions

+0.05

-0.09

Scarce natural resources

+0.02

-0.17

Biodiversity

+0.02

Waste

+0.09

-0.28

-0.33

NET IMPACT RATIO+20%

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Overview
We are a net positive company with a net impact
ratio of +20%. This result indicates that we create
more value compared to the resources we use. Our
main positive impacts are within Health and Society,and the largest resources we use are the materials
needed for the pods we provide.

POSITIVE-0.02

About this report
This is Framery

REPORTING PRINCIPLESHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES12SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Because the analysis is based on products andservices, impacts here are defined strongly throughwhat companies produce and offer, rather than on
how they do so (i.e. governance and compliance).
Net impact concentrates on the scientifically-examined largest impacts a company’s core businesshas on the surrounding world. It answers the question: “What does the company achieve with the resources it employs? How effectively does it turn its
resources into desired outcomes?” Because of this,the net impact profile is a comprehensive picture of
a company’s value creation and can be interpreted
as providing an overall picture of what resources acompany uses and what it achieves by using them.

About the Upright Project
The Upright Project is a technology company basedin Helsinki (www.uprightproject.com). Its mission is
to create incentives for companies to optimize their
net impact. Upright produces data on the comprehensive net impact of companies, with the aim oflooking at both the negative and positive impact
and enabling smarter decision-making for institutional investors, consumers and employees. In addition, Upright’s data offering covers the SFDR PAI
indicators, EU taxonomy metrics and UN SDG metrics for unlisted and listed companies. The Uprightplatform’s data universe comprises +24,000 companies, and its customers include +200 organizations in 15 countries.
READ MORE

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Explanation of Upright’s model & methodology
Upright’s quantification model is based on machinelearning, open-source science, and the products
and services that companies produce and offer.
Using Natural Language Processing (NLP) techniques, the model has been taught to understandcausality in scientific articles and summarize what
science knows about all the impacts that the products and services have on the environment, health,society, and knowledge. Because all companies
undergo the same methodology of analysis, the net
impact profiles produced by the model are all comparable to one another.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

13

2		 Sustainability
			 at Framery
FRAMERY SUSTAINABILITY REPORT 2022

Our sustainability work 						14Climate and Environment 					19People and Society								25Fair Business										36

HOW WE GOT HERE

Our sustainability work
SUSTAINABILITY REPORT 2022
About this report
This is Framery

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

14

We are serious about happiness, it is the reason we exist
and our purpose going forward – not only concerning our
products but for everything we do, whether it is our people,
commitment, desire to develop, or the way we work.

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

In the 13 years since our founding, we believe thatthe people working for us have always been responsible and dedicated, and that the many actions and choices we have made as a company
have been both honest and reasonable. As theyears have progressed, we have also more fully
understood the critical link between sustainability
and business. Framery’s operations have both apositive and a negative impact on the environment
and the people who fall within our entire ecosystem. It is not only the pods we manufacture but
also how we manufacture them, being serious
about everyone’s happiness.

This report presents our sustainability highlightsfrom the year 2022. We have started measuring
our net impact to holistically understand the various positive and negative impacts we have on thesurrounding world. Like many other companies, weare moving towards standardized sustainability
reporting as a response to stakeholders’ needs tobetter understand sustainability-related risks andopportunities. The Russian invasion of Ukraine only
adds to the list of threats we face globally besides global heating, loss of biodiversity and risinginequality. Additionally, we must also further understand and ultimately positively impact criticalwork-life challenges, which include occupational
health and safety issues, as well as workplacemental and physical wellbeing.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Framery was born from a necessity to re-think theoffice, and we will continue to shape the world ofwork in the future. We improve the flow of workwith our technology-driven products, solutions,tools and services. We enable people to connect
and achieve their best at work. Our ambition is tomake 5 million people happier by the end of 2026.

HOW WE GOT HERESUSTAINABILITY REPORT 2022

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

15

Our sustainability agenda
with the material topics

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

A materiality assessment is a method to identify andprioritize the sustainability topics that have the mostsignificant impacts on the economy, environment andpeople. In order to focus on the most pressing issues inour sustainability work, across the past years we haveconducted surveys and workshops with our stakeholders to continuously calibrate our agenda.
When determining the material topics, we havelooked into the sustainability landscape to understandwhat is expedited from companies as well as conducted stakeholder interviews to understand the customers’ interests. Our sustainability agenda with the material topics has been reviewed and approved by the
management team members who hold responsibility
for these matters. The board is also regularly updated
on sustainability matters.
Last year we wanted to take a step further and enrich
our analysis with a data driven approach to measure
Framery’s impacts on the surrounding world. We engaged with Upright to get our net impact quantified
by their model, which is based on a neural networksummarizing scientific articles and their modeling of
the economy (see page 11). This provided us with an
external view for prioritizing the impacts.
We consider a topic material if it has or can have asignificant impact on the economy, environment or
people. Our material topics have remained unchanged
from the previous year. However, we grouped them according to the three pillars in our sustainability agenda.

Climate andEnvironment

People andSociety

Fair
Business

Environmental efficiency(energy, emissions, materials,
waste)

Customers

Economic value creation

Framerian work culture

Supply chain compliance(environment, human rights)

Circular economy (product& business model design)

Employees and the wider
workforce

Product carbon footprint& handprint

Occupational health & safety
Sustainable and healthymaterials

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Our primary material topics

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

16

Our sustainability KPIs,
targets and progress
SUSTAINABILITY REPORT 2022
About this report
This is Framery

Topic

1 How we got here

Strategy
Our impact on the world

2020

2021

2022

Material efficiency %Achievement and maintain the level 95%

93.9%

94.4%

94.9%

Absolute scope 1 and 2 GHG emissions(CO2 eqv)

Reduce absolute scope 1
and scope 2 GHG emissions 50% by 2030
compared to 2018 base year

-11%

-27%

-33%

Climate andenvironment

Yearly growth of products delivered via
circular economy business modelContinue to grow the number of products

+7%

+122%

+8%

2 Sustainability at Framery

Product carbon
foodprint/handprint

Products’ life cycle GHG emissions

Measure and reduce
the GHG emissions

Framery O: 1,640
Framery Q: 2,880
Framery 2Q: 3,890 kgCO2e

Our sustainability work

Customers

Number of people that have access toour pods

5 million by theend of 2026

1.3

1.8

2.3

The Framerian culture

Employee engagement

The Flame Index > 80

NA

74

75

Employees and the wider workforce

Occupational H&S: lost time incident
frequency (LTIF)

Short-term: 5.00
Long-term: 0.00

7.43

6.99

6.93

Sustainable and healthymaterials

Product safety

All products areGreenguard certified

100%

100%

100%

Economic value creation

Revenues

Continue significant growth81.4 MEUR

93.8 MEUR

153.7 MEUR

Supply chain compliance (environment,
human rights)% of supplier spend covered by Supplier
Code of Conduct

100% of supplier spend

98%

98%

99%

Circular economy: product & businessmodel design

Agenda with the material topics
KPIs, targets and progress
Management
Climate and Environment
People and Society
Fair Business

People andSociety

3 Reporting principles
How our report was created
GRI content index

Fair business

FRAMERY SUSTAINABILITY REPORT 2022

TargetEnvironmental efficiency: energy,
emissions, materials waste

CEO’s review
The world’s most sustainable pods

Key Performance Indicator (KPI)

HOW WE GOT HERESUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods

Sustainability
management

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

17

The principles of our sustainability management are laidout in the Code of Conduct, Supplier Code of Conduct andour commitment to the UN Global Compact. The material
topics with respective goals and targets are presented on
the previous page.

Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

As with all manufacturers of physical products, weare dependent on natural capital and ecosystemservices. Nature is a prerequisite for our businessto thrive. We are using natural resources – bothrenewable and non-renewable materials – andenergy as inputs into our activities.
We have identified and assessed the environmental aspects and impacts of our value chainas part of our externally certified environmental management system (ISO 14001). The mostsignificant aspects relate to the use of raw materials and energy that are associated with thefollowing negative impacts: depletion of natural
resources, global warming, air pollution, land usechange, deforestation and biodiversity loss. We are
implicated in these negative impacts as a resultof our business relationships since raw materials
extraction and component manufacturing takes
place within our supply chain. On the other hand,
we can have a positive impact on conservation ofnatural resources through our own activities when
we design long-lasting products made of recycled
and renewable materials.
Our work is guided by our Environmental Policy
and our commitment to the Science Based Targets
initiative. We deliver industry leading, innovative,
eco-efficient solutions for our customers andcontinuously improve environmental efficiency
throughout our supply chain. Our GHG emission
reduction targets are aligned with the 1.5°C temperature goal of the Paris Agreement.
We are mitigating the negative impacts by promoting a transition to a low carbon circular economy. To systematically manage and monitor our
progress, we have set measurable targets forthese topics (see our sustainability agenda, KPIs
and targets). Since the biggest impacts are associated with our supply chain, we are actively engaging with our suppliers. To maximize the positive impacts, we are expanding Framery Subscribed andaddressing product design and material selection.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

How we manage our material topics related
to climate and environment

HOW WE GOT HERE

How we manage our material topics related
to people and society

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

Framery is the pioneer and the world’s leading
manufacturer of soundproof private spaces forsolving noise and privacy issues in open offices.
Consequently, Framery has a positive impact on
the people who get to use the products, besides
providing employment for the workers. Framery
pods increase productivity, employee wellbeing
and space efficiency. Potential negative impacts
on the people include the risk of health andsafety hazards for workers and end users of our
products. We nurture the Framerian culture to
maximize the positive impact on our own employees as well as the people we engage with inour value chain. In consideration of our global
operations, we recognize the risk of negative impact on human rights, especially in our business
relationships.

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Our products are also tested to be safe under exceptional circumstances such as earthquakes orfires. We conduct product tests to prove they meetthe requirements of emission standards and aresafe for the end users. Occupational health andsafety policy confirms our commitment to do everything to provide a working environment that supports the well-being and safety of our employees
and those who share our common workplace. Our
management system for occupational health andsafety is externally certified against the ISO 45001
standard requirements. We train our partners toensure they know how to safely assemble the pods.
To mitigate the risks in our supply chain, we require
our suppliers to commit to responsible businessconduct by signing the Supplier Code of Conduct.
Our sourcing practices also include supplierself-evaluation and audits.
We track the effectiveness of our actions on amonthly basis. We are following absences related
to musculoskeletal disorders and mental healthas well as the number of reports on occupational
health & safety. We have been able to record improvements in relation to risks identified. Collective
agreement representatives meet monthly and theoccupational health & safety committee meets on
a quarterly basis. Employees are also involved indevelopment through working groups.

How we manage our material topics related
to fair business
Fair business means we do what is right.
Regionally we are focused on Finland andNorthern Europe while our footprint spans to tensof countries through our value chain. Besides the
direct employment impacts, we also have significant impacts through our suppliers throughour suppliers and dealers due to the nature of ourbusiness model. We recognize the compliance risks
in our business and have identified two functions
that have an increased risk of being exposed tobribery and corruption: sales and sourcing.
Integrity and transparency are of utmost importance to Framery. We are committed to conducting our business in a fair, ethical, and legal manner,which includes having zero tolerance for bribery in
our business dealings and relationships. Taxes arepaid where the value add is created and we comply with all applicable laws and regulations in eachcountry. We pay taxes in 15 countries, following
the OECD guidelines on transfer pricing.
We want to make good business for all stakeholders and build beneficial relationships for growthwith our partners. In our sourcing function, we havecontracts in place with each supplier and a process to keep the contracts up to date. In addition,
we have a long-standing practice of requiring all
our suppliers to sign our Supplier Code of Conduct,
which includes anti-corruption provisions. In oursales function, we ensure that no improper benefits
are offered to third parties by having strict control
over the expenses. All expenses are reviewed before
they are approved. Furthermore, we have internal rules in terms of who has the authority to sign
contracts and other legal documents. With dealers,
the contractual coverage is sufficient, with all key
dealers having contracts in place.

REPORTING PRINCIPLES

Framery has also considered the countries where
it has local establishments. Currently, all our employees and foreign establishments are in countries that score highly in both WJP Rule of Law
and Transparency International’s Corruption
Perceptions. All our employees are encouraged tocome forward if they become aware of any improper conduct. They may do so anonymously byusing Framery’s whistleblowing channel.

18

We make donations to important and significant
societal causes. Following the Russian invasionof Ukraine in 2022, Framery and Framerians
donated 68,000 EUR to the International Red
Cross to respond to the urgent humanitarianneeds in Ukraine.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

We wrote a culture handbook to express our vision of how we succeed together as a company. It
enlightens what it means to be a Framerian – ourcompany culture and how we want to develop it
further. The culture handbook clarifies what wevalue, what we expect from each other, how wework, and how we get the best possible results.
A better workplace is a byproduct of what we
do - and how we do it. We are a workplace thatwants its employees to grow and learn, to question and be curious. We are committed to equality and inclusiveness at the workplace and haveabsolutely zero tolerance for discrimination. We
want to create a workplace where everyone canthrive. We provide quality leadership, work-lifebalance, and a community where everyone feels
seen, heard, and appreciated. We also measure
eNPS and other wellbeing metrics once a yearwith Siqni and follow up to make changes according to the results.

We encourage each line manager to think about
their team members’ growth paths. Feedback enables us to work better together and succeed. We
want to reinforce a culture of direct, open and honest feedback that always aims to help. Employee
wellbeing is the cornerstone of our company’s
success. We aim to improve wellbeing throughsupporting mental health, physical activity, andincreasing diversity, equity and inclusion.

SUSTAINABILITY AT FRAMERYHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

19

Climate andEnvironment

Climate impact							20Circular economy							22Environmental efficiency				23FRAMERY SUSTAINABILITY REPORT 2022

Our climate and environmental policies aim to
mitigate climate change, resource scarcity andloss of biodiversity. Accordingly, we hold thattransitioning to circularity is indispensable for our
profits, people and planet. We can only future
proof our business by transforming our old linear
business models into new circular ones that
respect planetary boundaries.

HOW WE GOT HERE

Climate impact

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

20Reduction of scope 1 and 2
GHG emissions towards the 2030 target

700
+6%
600

100%

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
Climate impact
Circular economy
Environmental efficiency
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Our science-based targets represent a challenge
for a growing company such as ours. The challenge lies in combining the growth of our sales andproduction of pods with our ambition to reduce
our products’ absolute life cycle emissions, not justour direct scope 1 emissions or our indirect scope
2 emissions. Until our growth has stabilized, theonly way to move forward sustainably is throughinnovation.
Proving that the planetary boundaries are themother of all circular innovation, we will continue
to think of new and smarter ways of manufacturing our products, ensuring that our business model
is compatible with our goal of reducing our absolute emissions.
A happier office has a greater net positive impact
We strive to increase our positive impact by offering sustainable office solutions that contribute
more to the well-being of our customers’ employees than they detract from the environment. We
do this by providing their employees with workspaces that make their employees happier andmore productive and by informing them of theenvironmental virtues of open-plan offices, dynamic offices that can easily be reconfigured to meettheir needs.
Well-designed, functional pods create more enjoyable workplaces, increasing employee wellness
and happiness. We mitigate our environmental
impact by producing work-friendly quality podsthat people can — and want to — use extensively
for years due to their long lifetime. We prioritize
producing sustainable pods not only because it iswhat our customers want but also because it is our
responsibility.

Flexible offices make for more sustainableoffices
The demand for smaller meeting rooms to enablevirtual collaboration and communication grows intandem with the demand for videoconferencing
and hybrid work. We want to enable and inspire
our customers to embrace the promise of flexible
offices by making it easier to rearrange their pods
as needed, saving them money on construction,
labor and raw materials — and avoiding the associated environmental impact — by not having toreconfigure entire rooms to smaller non-productive meeting rooms. Our customers can, thereby,
contribute to a more sustainable future while still
meeting their employees’ needs by embracing thisflexible approach to office design.

The right materials and suppliers
We prioritize using recyclable, renewable, durable and non-toxic materials in our manufacturing. Although our pods are made of sustainably
sourced plywood, glass, steel and aluminum, we

500

-27%
-33%

400
-50%
300
200
100
0
2018

2019

2020

2021

2022

2030
targetScope 1 emissions
Scope 2 emissions, market-based
Targeted emission reduction pathway until 2030

primarily chose them for their ability to createhigh-quality soundproof pods, not their environmental impact. We are always on the lookout for
new, more environmentally sustainable materials.
In 2022, we explored the possibilities of using fossil-free steel and the availability of alternatives
such as recycled aluminum.
Since product design matters greatly when mitigating future impacts as the design inevitably
determines the overall environmental impact, we
use life cycle assessment (LCA) methodologies tosingle out the most significant factors that contribute the most to our products’ carbon footprint.
Our LCAs inform us that 69% to 79% of the product’s CO2 emissions stem from our upstream activities, in particular our suppliers’ manufacturingof the components of our pods, so selecting theright materials and suppliers promises the greatest CO2 emissions mitigation impact.

We select our suppliers based on their ability todeliver high-quality materials, which usually aligns
with our sustainability goals. To select suppliers
who operate responsibly and sustainably, we mustverify that our suppliers comply with e.g.
ISO 14001, the international standard for environmental management systems, local regulatory
requirements and our own high standards. We
jointly develop their processes, energy consumption, raw material use and waste management.
Concerning our own operations, most of our emissions come from using diesel fuels in company cars
as well as district heating. We have a guaranteeof origin certifying that 100% of the electricity wepurchase comes from renewable hydropower.
We make most of our products from plywood, andall our suppliers must have FSC or PEFC certification. Plywood is widely recognized for its ability
to absorb CO2 emissions, meaning that our pods

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Our science-based targets —challenges and opportunities
We joined the Science Based Targets initiative(SBTi) in 2020. SBTi approved our target to bealigned with the Paris Agreement to limit global
warming to 1.5˚C. Our target is to reduce absolute
scope 1 and 2 greenhouse gas emissions by 50%
by 2030 from the base year of 2018, as well as tomeasure and reduce our scope 3 emissions, which
include our products’ life cycle emissions.

Metric tons of CO2e-11%

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

21
Products’ life cycle GHG emissions (kgCO2e)

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

effectively store CO2 emissions. Nevertheless, theplywood used in the O, Q and 2Q modules accounts for most of the climate impact of our pods’
life cycle emissions. We are considering lowering
our emissions by creating lighter products and using materials with a lower carbon footprint.
We always aim to manufacture our products
from recycled materials. For example, 80% of theacoustic foam in our pods is made out of recycledplastic bottles; 20% of the steel structure is madeout of recycled steel, and 29% of the glass is madeout of recycled glass. Our products are also recyclable, and they come with recycling instructions.
Our vision is a closed-loop system for pod manufacturing in which used pod components are used
to create new ones.

See Environmental Product Declarations (EPDs)
Framery O

Framery Q

1,640

Upstream 76%
Core 6%
Downstream 18%

Framery 2Q

2,880

3,890

Upstream 79%
Core 4%
Downstream 17%

Upstream 69%
Core 6%
Downstream 26%

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
Climate impact
Circular economy
Environmental efficiency
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

We use Life Cycle Assessments (LCAs) because
they are the most accurate method for measuring
a product’s potential environmental impacts. The
full LCA encompasses raw materials extraction,
processing, manufacturing, distribution, use, andrecycling or energy recovery. An Environmental
Product Declaration (EPD) is essentially a product-specific LCA verified by a third party.
EPDs show a product’s impacts on the environment, including climate change, resource depletionand toxicity, through its life cycle stages — fromraw materials extraction, processing and manufacturing to distribution, use and recycling.
We commissioned third parties to conduct Life
Cycle Assessments and compile Environmental
Product Declarations for our Framery O, Q and2Q pods to demonstrate our pods’ circularity-friendly design.

Greenhouse gas emissions scope 1 and 2,
metric tons of CO2 equivalent
600

500

400

Working with Logitech to reduce
unnecessary business travel
To reduce greenhouse gas emissions caused bybusiness travel, many see the transition to remotemeetings as part of the solution. However, due
to technological limitations, remote participantsin hybrid meetings cannot fully participate withthose present on-site. This poor experience compels some to travel long distances to attend faceto-face meetings. To address this issue, we havejoined forces with Logitech, a leading manufacturer of interface devices. Our collaboration aims to
make videoconferencing easier and better.

300

200

100

0
2020

2021

2022

Direct (Scope 1)
Energy indirect (Scope 2), market-based

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Measuring our products’ environmental
impactHOW WE GOT HERESUSTAINABILITY AT FRAMERY

22

Circular economy
SUSTAINABILITY REPORT 2022

We strive for circularity in everything we do

About this report

We design every aspect of our products and services with circularity in mind. In the design process,we apply circular design principles to ensure theymeet the needs of the circular economy. During
their use, we provide our customers with smart,data-driven digital services that help users makethe most of the pods. Afterward, when people nolonger need them, we find ways to refurbish, redistribute, reuse and recycle our pods and the components and materials they are made of.

This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

Designing for circularity
2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
Climate impact
Circular economy
Environmental efficiency
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Unlike some low-end pods on the market, our pods
are built to last for decades. This means that businesses do not need to replace them as frequently,
which is better for both the planet and the bottom
line. By designing our pods to structurally last longer, we are breaking the old linear consumption
model of take, make and waste and moving toward the new circular economy.

Framery Subscribed —a fully circular business model
Framery Subscribed offers customers the opportunity to lease flexibly and affordably as few or as
many pods as they need. When they no longer needtheir pods, our local installation partner picks them up,
refurbishes and repairs them, and then delivers them
to a new customer for a new life cycle. As a result, ourpods can potentially enjoy multiple lifetimes of service.
Framery Subscribed ensures that no pod goes prematurely to waste but is used and reused repeatedly before its parts are eventually recycled. The morethis circular business model grows, the better for theplanet.
In 2022, we continued expanding Framery
Subscribed. Previously, Subscribed was only available in Finland, Sweden, Norway, Germany and theNetherlands; in 2022, we started our operations inFrance. In 2022, growth continued and we delivered
8% (122%) more pods with this pioneering circularbusiness model compared to the previous year.

Quality is the foundation of sustainability
Producing low-quality pods that people do notwant to use is not sustainable. Durable, high-quality pods last longer and improve the user experience.
For example, our pods are designed to ensure good
air quality, which is one reason many people enjoy

The drivers of the Subscribed model
The primary motivation behind Subscribed is that
renting out our pods generates greater value in thelong run than simply selling them. This is because we
design our pods with durability and longevity in mind.

Consequently, companies that invest in our pods canuse them for years without replacing them.
Because we maintain, refurbish and repair the
pods we rent out, they are of such high quality thatthey are quite popular on the second-hand market,
where they can command a high resale price. Thismeans that our fleet of Subscribed dedicated pods
represents a growing asset for us. In the future,companies may also prefer to rent rather than own
their pods. We want to be ready for that shift with
the Subscribed model.
The model thus shows that the right thing to dois also practical; what is economically sustainable
also turns out to be environmentally sustainable.

A year of growth and development
During the year, we focused on developing
Subscribed as a pilot. Because of this, we were
not devoting all our resources to expanding thisbusiness model. Rather, we were more interested
in determining which marketing approaches weresuccessful and which were not.
As the Subscribed business has expanded, we havegained a significant amount of knowledge throughtrial and error. We experimented with a variety
of strategies for digital marketing, and based onwhat we learned, we plan to implement those mostpromising strategies more broadly in 2023 and in
new additional markets.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

We put a lot of thought into making our pods themost sustainable in the world. We understand that
how a product is made — and what it is made of —can make a significant difference in its impact on
the environment. So when we design our pods, weconsider the requirements of circularity from thevery beginning.

using them. Additionally, safe and well-made podsthat meet all relevant standards reduce the risks ofhealth and environmental hazards. Pods made ofsafe and non-toxic materials provide comfort andconvenience and contribute to a more sustainable
future.

REPORTING PRINCIPLESHOW WE GOT HERESUSTAINABILITY REPORT 2022

Environmental
efficiency

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

23

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management

The material efficiency rate describes the volume ofwaste in relation to the input materials. In 2022, ourmaterial efficiency reached 94.9%. More than halfof the waste generated is wood that is directed toincineration with energy recovery. We don’t use any
process water.

Climate and Environment
Climate impact
Circular economy
Environmental efficiency
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

Digitalization as an enabler for resource
efficiency
Digitalization is the key to a more circular and sustainable tomorrow. When we manufacture our pods,
we inevitably harm the climate and environment. But
with our digital solutions, we can increase our customers’ utilization rate, space use and resource efficiency
to the point where the environmental impact we cannot completely avoid is justified. In fact, according to a
recent Upright Project study, Framery is a net positive
company, which means our products, considering thefull value chain, add more value to our customers than
the resources we use in creating them.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Efficient own operations
We want to minimize the negative environmental impacts of our own operations despite the factthat the biggest impacts arise from the upstream
and downstream operations. Most of our emissions
come from using diesel fuels in company cars as well
as district heating. We have a guarantee of origin
certifying that 100% of the electricity we purchasecomes from renewable hydropower.

HOW WE GOT HERESUSTAINABILITY REPORT 2022
About this report
This is Framery

Consider how this works with the world’s first connected soundproof pod, Framery One. Framery
One’s connectivity allows us to collect and analyze
space utilization data using digital tools that our
Digital Offerings and Services division has been developing. With this data, we can help facility managers rearrange their Framery One pods to increase
their use, enabling space optimization and resource
efficiency in the process.

SUSTAINABILITY AT FRAMERY24
Materials used by weight, metric tons

6,000

Energy consumption MWh

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
Climate impact
Circular economy
Environmental efficiency
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

2022

19.50

16.10

18.5

Electricity consumption

1,989.3

1,857.2

1,743.9

Share of renewable electricity (%)

100%

100%

100%

Heating consumption

2,918.3

2,347.2

2,154.3

Total

4,927

4,220

3,917

Share of renewable energy (%)

40%

44%

45%

Energy intensity MWh/MEUR

60.5

45.0

25.5

Primary energy consumption
Diesel4,000

Secondary energy consumption

2,000
1,000
0
2020

2021

2022

Non-renewable materials
Renewable materials

Waste generated, metric tons

Non-hazardous waste
Directed to disposal
Directed to recovery

489
500

444

Sustainability is a journey
Even though we are proud to proclaim Framery pods
as the most sustainable in the world, we must stressthat we have not reached some final plateau of sustainability. Sustainability is a journey, not a destination, and we are on that journey together with ourcustomers, suppliers and partners. We will continue
to innovate our product design and develop our digital
services to make our offering more sustainable. What
we have in store for the future is not only small steps
but also giant leaps, some of which are so large thatthe world may not be ready for them.

2021

400

354

Hazardous waste
Directed to disposal
Directed to recovery

300
200
100
0.3

0.1

0.3

0
Recovery
rate

2020

2021

2022

22%

22%

30%

The waste treatment method is determined basedon information provided by the waste managementcompany. Waste directed to disposal consists ofwood and mixed waste. Waste directed to recovery
consists of metal, cardboard and glass mostly.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

When developing Framery One, we worked with theleading VR/XR company, Varjo, to use a revolutionary
digital twin prototyping workflow that enables rapid
iterative design work to be done in extended reality(XR) for the first time. This new workflow enabled
our design team to make real-time adjustments toa life-sized digital twin prototype, saving natural
resources that we would have had to use otherwise.
In addition, it also enabled a significantly faster andmore efficient design process, removing the need for
multiple rounds of costly physical prototyping. Thisillustrates, once more, how digitalization, in big andsmall ways, serves as an enabler of sustainability
and circularity.

2020

5,000

3,000

How digital twin prototyping saves onnatural resources

REPORTING PRINCIPLESHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

25

People andSociety

Customers											26The Framerian culture							28Employees and the wider workforce		 30Healthy and safe materials					34FRAMERY SUSTAINABILITY REPORT 2022

At Framery, we are serious about happiness. We value
our employees’ happiness and well-being and invest in ahealthy, safe and welcoming workplace because we believe
it fosters a positive workplace culture. Likewise, we provide
high-quality products to create happy, satisfied and loyal
customers while also positively impacting individuals andsociety as a whole.

HOW WE GOT HERE

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

0 to 10, how likely is it that you would recommend Framery to a colleague, business associate
or a friend?” The answering scale was from 0,“Not at all likely” to 10, “Extremely likely.” Out of a
total of 450 responses, 73% of the respondents
were classed as ‘Promoters’ and gave a score
between 9–10. These were very positive results.
At the end of 2022 digital customers started toreceive the survey on an ongoing basis.

Promoting focus and happiness in themodern workplace
Originally introduced to encourage collaborationand teamwork among employees, the open officefloor plan has become a staple of modern officedesign. In today’s connected world, however, theopen office also invites interruptions and distractions. This is particularly true in the wake of thepandemic, causing global demand for videoconferencing to increase significantly.
Constantly being distracted and disoriented by thesound of meetings, conversations, notifications
and phone calls undermines the privacy, focus, productivity and, ultimately, the happiness of employees. According to studies, more than half of people
find it difficult to concentrate in open offices, anddistractions can take up to 20 minutes to recoverfrom. Furthermore, employees are 15% less productive when working in an open office.
We conducted two NPS (Net Promoter Score)
surveys in 2022 of our end customers. In total,
the surveys were sent to almost 7,000 contacts
and contained only one question, “On a scale ofCustomer Net Promoter Score

NPS score 68

Promoters 73%
Passives 22%
Detractors 5%

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Our business is all about creating workplace happiness. By providing privacy and reducing noise
distractions, our soundproof pods are ideal for
meetings, conference calls, and discussions; they
offer a haven for uninterrupted work, focus andflow. Our high-quality pods help companies overcome the challenges of the open office and meetthe rising demand for videoconferencing workspaces in hybrid offices. The result is more productive and, most importantly, happier workplaces.

REPORTING PRINCIPLES

26

Customers
SUSTAINABILITY REPORT 2022

SUSTAINABILITY AT FRAMERYHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

27
Meeting the needs of the hybrid workplace

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management

Educating our partners
At Framery, we educate our dealers and service
personnel, including installation and maintenancepartners, to ensure that we always provide thebest possible customer service. Additionally, we
collaborate with architects and designers to develop solutions that make work more enjoyableand efficient. We provide educational content
stressing, among other things, the importanceof distraction-free workspaces and the tools toachieve optimal environmental acoustics.

Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

Framery Connect — efficient performance,
maintenance and management

In addition, Framery Connect enables future software updates, ensuring that our customers always
have the most up-to-date version of their pods.
Through continuous software updates, we can also
add innovative digital features, making the pods
safer, more usable and more valuable over time.
Those who invest in Framery pods can trust they
will stay functionally relevant for years to come.
In line with the ideals of circularity, Framery
Connect not only helps us to digitally extend our
pods’ life cycle and relevance and optimize theiruse. Instead of repeatedly and unsustainably
investing in new pods every five years, we future-proof your pod.
Framery Connect also allows us to integrate
Framery One pods with Google and Microsoft
calendars, enabling users to conveniently reserve
pods through their calendars. Due to the pods’
4G connection, people can also book them anywhere, anytime.

By virtue of being the world’s first connectedsoundproof pod, Framery One paved the way
for Framery Connect, our first digital service,launched in 2022. Framery Connect is a featureof Framery One’s new digital management system that keeps Framery One running smoothlyand efficiently.

Office managers can understand the utilization
rate of pods in a hybrid office and their return on
investment thanks to Framery Connect, which
also provides insights into how Framery One pods
are being used.

We provide exceptional customer service througha dedicated customer success team for our digital services. Framery’s customer service can bereached via email or phone. Customers can create
support tickets for Framery One pods throughFramery Connect, and thus be in direct contact

One of our targets for 2022 was to invest in theprocesses and technology required to ensurethat our information security management system meets the requirements of the General
Data Protection Regulation. In 2022, our Digital
Offerings and Services division received the ISO

Demonstrating our commitment to safeguarding our customers’ data

27001 certification, the leading international standard focused on information security, proving that
we safeguard our customers’ data.

Framery Subscribed makes our quality pods
more affordable
Framery Subscribed offers businesses the opportunity to rent pods for a fixed monthly fee.
Subscribed makes our pods more affordable, allowing more people to enjoy the tranquility of our
flow-and-focus conducive pods, as well as the
positive change in the work environment, particularly smaller businesses that may not be able toinvest in quality pods.
Subscribed allows our customers to expand their
pod fleet as their business expands without taking the risk of investing too much in pods they
may not need. On the flip side, they can also easily shrink their pod fleet if they have more thanthey need. In addition to installation, free relocation and a lifetime warranty, Subscribe includes
on-demand maintenance, ensuring that the pods
remain in good condition throughout their use andextending their lifetime.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Our pods already provide the best-in-classmeeting experiences that the hybrid work model requires in the open office. Nevertheless, weare always innovating the meeting experience.
In 2022, we added dual LED light sources to
our Framery One, creating the perfect lighting
for any use. We also combined our pods withLogitech’s videoconferencing tools. Thanks to
the Logitech setups, people no longer need theirown devices to start a video conference, making
joining meetings easier.

with our technical support team. As a result, we
can reduce downtime while effectively extending
the lifespan of the pods.

HOW WE GOT HERE

The Framerian culture

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

28

Framery values• Respect• Courage and curiosity• Transparency

SUSTAINABILITY REPORT 2022
About this report• Responsibility

This is Framery• Good judgement

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

We give every new employee a copy of our Culture
Handbook, “Being Framerian,” to explain our values:
the abilities and practices that we appreciate in ourcolleagues, expect to see from each other, base ourdecisions on, reward people for and look for whenrecruiting or promoting Framerians.
The Culture Handbook guides us as we create aworkplace where we appreciate and trust one another; encourage our smart colleagues to put theirideas into practice; recognize the good and know
when to aim high; always try our best to achieve
our goals but not at the expense of our well-being; see mistakes as learning opportunities; always
aspire to get better, prioritize what matters mostand develop as individuals.

Highlights and challenges of 2022
In 2022, our company culture saw its fair share ofhighlights and challenges:• Cementing Framery’s new digital identity. In 2022,
the new digital business division, Digital Offerings
and Services, grew from two to thirty people as
we recruited software developers, data specialists, artificial intelligence experts and analytics
professionals.
• Supporting Ukraine. Framery organized a donation to the International Red Cross in solidarity
with those suffering in Ukraine. 242 Framerians
contributed a total of 68,000 euros.
• Returning to the office. As the pandemic began towane, Framerians started to return to the office.
In 2022, the average office use went from 18% toalmost 50%.
• Preserving growth company culture. During the pandemic, we struggled to maintain our growth culture
while adjusting to the slower change of pace andhybrid work. As business picked up in 2022 and wewere gradually getting back into the swing of things,
we were pleased to see that we had managed topreserve our growth company culture.

• Opportunities for employees to grow. In 2022,
the company was able to create many new opportunities for our people to climb the ladder,allowing many Framerians to take on new challenges within the company.
• New and improved company bistro. In 2022, thecompany bistro employed a new chef that elevated the food quality. During the year, thebistro became a popular hub where everybody
wants to come together for lunch, meetings orconversations.
• Bridging the mental divide. During the year, it
became evident that besides a great physical distance that was and is keeping us apart,
there was and is also a mental divide between
Framerians around the world, undermining oursense of belonging to a cohesive team working
together for a common goal. Figuring out new
ways of working that will help us bridge the divide was and is a challenge for us.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Values are the heart of our culture
We are what we do. Through our choices and actions, we cultivate the virtues that constitute our
Framerian work culture and community. By embodying our values of respect, courage and curiosity, transparency, responsibility and good judgment,
we shape our goals and ways of working.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

29
Employee engagement

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

Our employees indicate that they want clear
guidance on how to climb the internal career ladder. We believe that the lack of clearly defined
pathways for career development is the main
reason we failed to reach our index target of 80.
Clarifying career paths is something we need towork on more in the future.
On a positive note, most employees feel that theworkplace camaraderie is good. So good, in fact,that it is arguably our greatest strength. Even so, we
believe we can do better still on that front as well.

Speaking up
We encourage everyone to speak up if they see
anyone being mistreated or acting in breach ofour values or Code of Conduct. In 2022, we established our internal whistleblowing channel toenable our employees to anonymously report any
suspected cases of illegal or unethical behavior in
the workplace.
Whistleblowers can send their reports anonymously and we follow up with them anonymously. We
will inform the reporter within seven days that wehave received the report and in three months inform what actions we are going to take. We have
two main whistleblowing channel operators whowill investigate reports. The process follows the EU
Whistleblowing Directive and from the beginning of2023 the Finnish law based on the Directive.

Looking ahead
As the year progressed, we began to return to theoffice, providing our employees with a renewed
sense of community and collaboration, resulting ina warmer, more vibrant culture. We saw our efforts to weather the pandemic had been successful because we emerged on the other side with our
growth culture intact, allowing us to offer many
new opportunities for internal advancement.
However, we also encountered some challenges
that will require our attention in 2023, such as
the need to keep employees united while working
apart. Overall, we will continue to focus on growthand success as we move forward.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Every year we conduct Siqni surveys to better
understand our employees’ experience, one in thespring and one in the fall. The resulting Flame
Index informs us how satisfied and motivated our
employees are. For 2022, our target was 80 ona scale to 100. In the fall of 2022, the index increased from 75 to 77.

In 2022, we received one report of an incident of
discrimination via the whistleblowing channel.
The reported matter was about employment relationships, which is not in the scope of the EU
whistleblower directive. The channel operators
informed our management team about the matter and the management team gave their answer,
which was forwarded to the complainant via thewhistleblowing channel. The report did not lead tofurther actions.

HOW WE GOT HERESUSTAINABILITY REPORT 2022

Employees andthe wider workforce

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

30
New employee hires

total number% of total

new hire rate

under 30 years old

18

5%

16%

30-50 years old

51

14%

17%

over 50 years old

3

1%

16%

Age group

Gender

About this report

female

31

8%

22%

This is Framery

male

35

9%

13%

other

0

0%

0%

not disclosed

6

2%

30%

Finland

63

17%

17%

Americas

2

1%

8%

EMEA

5

1%

26%

APAC

2

1%

33%

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created

Working conditions of employees andcontractors
In 2022, we had 398 (400) employees, making thisthe first year when our headcount didn’t grow. The
number of contractors significantly decreased
during 2022 as we have started to hire all production employees directly as our own employees.
During the year we used contractors to level off
temporary resource shortages, caused by rush
spikes, longer absences or needs for special skills
for example. The number of contractors was lessthan 5 in the end of the year.
87% of our employees in Finland are currently
covered by a collective bargaining agreement. But
regardless of whether such an agreement covers
them, everyone working for Framery in Finland,
including management, enjoys the same policies
concerning compensation, health support andpaid leave.

vary because most of them work overseas. They
also tend to work with their customers from theirown or their customers’ premises. Their customers
usually also act as their peer group.

Diversity, equity and inclusion
During 2022, the diversity of our employees
reached a new peak. Never have Framerians been
as diverse as they are now. Even in Finland, we
hired more people with diverse backgrounds in culture, nationality, language, gender, education andthe like.
Although we do not work toward a numeric target, we always take diversity into account whenrecruiting. We want to recruit the best person for
the role, but we do not want to do it in ways thatmight dissuade some from applying because of
their background. With that in mind, we always
consider ways to attract more female applicantsfor the sectors where males are in the majority
and vice versa.
In addition, we train our HR team to raise theircultural competency and make them more awareof how unconscious biases can influence decisions
about hiring, promotions and salaries. In 2022, we
had two trainings for our HR team.

GRI content index
Although we provide our salespeople with thesame essential work equipment, medical benefits,insurance, and so on, their working conditions will

In 2023, we will continue to provide trainings on
the theory and practice of diversity, equality andinclusion and develop the onboarding process. We

RegionNew hire turnover rate, total
Employee turnover

9.7%
total number% of total

new hire rate

under 30 years old

18

5%

19%

30-50 years old

36

10%

14%

over 50 years old

4

1%

31%

female

17

5%

13%

male

38

10%

17%

other

0

0%

-

not disclosed

3

1%

18%

Finland

50

13%

15%

Americas

3

1%

14%

EMEA

4

1%

27%

APAC

1

0%

20%

Age group

GenderRegionEmployee turnover rate, total

15.6%

The information about new hires and employee turnover includes only permanent employees. The rate of new
employee hires in the total workforce is the number of new hires divided by the number of all permanent employees atthe end of 2022. New hire rates within employee breakdown categories are calculated by dividing the new hires within
the category by the total number of permanent employees within the breakdown category. For example, new hire rate
for female employees is the number of new female hires divided by the number of all permanent female employees atthe end of 2022. Turnover rates are calculated on similar basis as new hire rates.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

At Framery, we are dedicated to making our workplace a welcoming environment for all. Because
we want to attract, keep and engage the best
and brightest, we want to create a workplacethat promotes our employees’ health, safety andwell-being and a culture of diversity, equity andinclusion

HOW WE GOT HERESUSTAINABILITY REPORT 2022

plan to introduce new cultural diversity and codeof conduct training. Additionally, we will make therecruitment process more equal and inclusive bystandardizing the interview questions. By treating everyone the same way, we hope to not leave
much room for our biases to influence the recruitment process.

injury that amounts to one full day of absence,as a key performance indicator. Our short-termtarget for LTIF was 5.00, and in 2022 it was 6.93
(6.99). In 2022, we had five injuries that led toabsence days; they all were a couple of days at
most. In total, we had 9 days of absences because of these five injuries (18).

Monitoring the gender pay gap

Musculoskeletal and mental health

In 2022, we started monitoring men’s and women’s salaries to ensure equal pay. The ratio between women and men is 0.99 for office workers
and 1.01 for production employees, meaning thesalaries are nearly equal. The small gap varies
slightly during the year. In the spring, women were
marginally better paid than men; in the fall, menwere paid slightly more than women.

We know from our occupational healthcare thatabout 30% of mental health or musculoskeletal
disorder absences are work-related, making them
the two most common reasons for longer periodsof sick leave.

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the worldOccupational health and safety
2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Customers					

2021

2022

Fatalities

0

0

0

High-consequence work-related injuries

0

0

0

Recordable work-related injuries

4

4

5

Number of days lost

14

18

9

540,000

570,000

720,000

Rate of fatalities

0

0

0

Rate of high-consequence work-related injuries

0

0

0

Rate of recordable work-related injuries (LTIF)

7.43

6.99

6.93

Fatalities

0

0

0

Preventing ergonomic disorders

High-consequence work-related injuries

0

0

0

We had less ergonomic disorders, such as musculoskeletal disorders, based on sick leave recordings
in 2022 compared to 2021. In 2022, we continued
to improve the ergonomics of workstations at ourcurrent production facilities, and in 2023, we plan
to build ergonomically designed production lines tosupport our employees’ long-term ability to work.
We will do this with our production operators, supervisors and healthcare partner.

Recordable work-related injuries

0

0

1

Number of days lost

NA

NA

NA

Number of hours worked

NA

NA

NA

Rate of fatalities

NA

NA

NA

Rate of high-consequence work-related injuries

NA

NA

NA

Rate of recordable work-related injuries

NA

NA

NA

A cut by a knife

3

2

0

Stackers / forklifts

1

0

0

Slipping / tripping

0

2

1

The Framerian culture

Manual handling of modules

0

0

3

Employees and the wider workforce

Work movement related pain

0

0

2

Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

Supporting mental health in the workplace
Sickness absence
One of our goals is to reduce sick leave. Sickness
absence as a percentage of the employees’ total theoretical working time was 5.4% (4.7%) in
2022 for all Framerians including sales. Our sickleave per person in 2022 was 16.4 days per year for
Finland-based employees. That said, we shouldnote that COVID-19 continued to play a role in tripling the number of short-term absences.

Work-related injuries
We are committed to improving our safety performance, and our long-term target is zero accidents. To monitor our progress, we use lost time
injury frequency (LTIF), measuring the lost time31

To advance mental health, we will, among otherthings, adopt an internal communication calendar to raise awareness of various issues, including
mental health. The calendar will bring up various
themes to discuss. For example, there is a mental health month, during which we might discuss
mental health issues and how those might affectthe workplace, and what we can do to improvemental health at work. The communication calendar might include black history month, pridemonth, and so on. The goal is to raise awarenessof important issues by discussing topics such asthese and what they mean for us at work.

Work-related injuries
Employees

Number of hours worked

Workers who are not employees

Types of injury

Incidents of discrimination

2020

2021

2022

Total number of incidents reported (during the year)

0

0

1

Incident reviewed by the organization;

0

0

1

Remediation plans being implemented;

0

0

0

Remediation plans that have been implemented, with results
reviewed through routine internal management review processes;

0

0

0

Incidents no longer subject to action.

0

0

1

One employee reported an incident through the Whistleblowing channel during 2022

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Our employees’ well-being is vital for our company’s long-term success since a healthy and safe
working environment decreases absenteeism andincreases productivity. In 2022, 100% of our employees and contractors were covered by the occupational health and safety policies of ourISO 45001 certified management system.

REPORTING PRINCIPLES

2020

About this report
This is Framery

SUSTAINABILITY AT FRAMERYHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

32
Sharing personal gender pronouns on Slack

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

Fostering social well-being through community-building Frevents
To support Framerians’ social well-being — theirsense of belonging, connectedness and enjoying
meaningful and supportive relationships at work
— we made an extra effort during the year to initiate, host and organize community-building social
events, which we call Frevents. In 2022, the calendar was packed with Frevents, of which the summer and Christmas parties and Family Day countamong the highlights.

Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

Health and well-being benefits
One way we invest in the health and well-beingof our fellow Framerians is through our generous
employee benefits. By default, we offer everyone
the same basic benefits, even part-time employees and summer trainees:• Everyone receives Smartum benefits, such as
the lunch benefit, which allows our employees tohave healthy, stress-free lunch breaks, and theexercise benefit, which supports our employees’
physical activities and sports hobbies.
• Since we want people to enjoy the delicious
and nourishing food and the company of theircolleagues at the company bistro, we havemade the food as affordable as possible by only
charging for the ingredients.

Some benefits require, however, regular permanent employment. We offer, for example, the opportunity to lease a bike tax-free for thirty-threemonths; clearly, such benefits are moot for fixedterm employees only hired for, say, three months.

extended leaves of absence. This represents a new
development for our company. In truth, it was only
a few years ago that we had our first employee
going on maternity leave and, shortly after that,parental leave. This suggests that Framerians feel
psychologically safe enough to spend extended
periods away from work and feel secure when returning to work.

Employees by region, number
400

300

200

Employee trainings
In 2022, 100% of employees received a regularperformance and career development review, andthe average employee received 4.4 (4.6) hours of
training. The need for employee training is generally decided between the supervisor and theemployee. If training is seen as beneficial for thecompany and the employee, it is usually covered in
the budget.
For overarching themes that apply to larger
groups of employees, we have focused on providing Lean Six Sigma training in the past year toensure a unified way of working across production, product development and quality assurance.
Additionally, we have focused on supervisor training through breakfast sessions to ensure they
have the skills and knowledge they need to support their teams.

100

0Finland

Americas

EMEA

APAC

2021
2022

Employees by contract type, number

400

300

200

Parental leaves
While all employees were entitled to parental
leave, 15% of women, 14% of men and 10% of
employees with gender not disclosed took parental leave in 2022. Our return-to-work rate for was
100% for all, and our retention rate was 84% and
89% for men and women, respectively.
In recent years, we have observed that more
Framerians are not only choosing to become
parents, but they are more and more also taking
parental leave. Increasingly, they are also taking

However, the most significant impact in termsof training comes from one-to-one meetings between supervisors and team members, where personal development discussions occur. During these
discussions, the focus is on identifying training anddevelopment opportunities. Together they create
personalized action plans to achieve them and tosupport employees in their professional goals.

1000Permanent Temporary

FemaleMale
Other
Not disclosed

Part-time

Full-time

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

In 2022, we encouraged our employees to share
their preferred personal gender pronouns on Slack.
We believe this will help create a more inclusive
and welcoming work environment and promote
employees’ mental health and well-being by helping them be true to themselves and to feel seen
and acknowledged. It can also help us avoid unintentionally insulting or hurting others, reducing
stress and anxiety among individuals who mightotherwise feel marginalized.

• To encourage our employees to connect outsideof work, we inspire them to do fun things like
hopping on a train together to Tahko, one of
Finland’s most popular ski resorts, all expenses
paid. We also have a club room that our employees can rent during weekends to organize parties
and social events in their free time.
• For similar reasons, we also encourage our employees to set up Framery clubs built aroundtheir sports hobby of choice. Be it football, ice
hockey, tennis, ice swimming, yoga, or anythingelse, as long as the club is open to everyone, andwe will support it financially. Since we want ouremployees to take care of their physical fitness,
we also pay people to exercise for an hour every
week during their work time.
• Not only do we provide all employees withhealthcare benefits, even those on extended
leaves of absence from work, such as parental
leave, but we also offer everyone leisure-time accident insurance, which covers accidents outside
the workplace.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

33
Finland

Americas

EMEA

APAC

total

Number of employees

357

21

15

5

398

Number of permanent employees

330

21

15

5

371

Number of temporary employees

27

0

0

0

27

SUSTAINABILITY REPORT 2022

Number of non-guaranteed hours employees

7

0

0

0

7

About this report

Number of full-time employees

334

21

15

5

375

This is Framery

Number of part-time employees

16

0

0

0

16

Employees by region

1 How we got here
CEO’s review
The world’s most sustainable pods

Diversity of governance bodies and employees

Strategy
Our impact on the world

Age group

GenderRegion350

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics

300
250

Management
Climate and Environment

200
150

People and Society
Customers					The Framerian culture

100
50

Employees and the wider workforce
Healthy and safe materials
Fair Business

0
Under 30
years old

30-50 years
oldOver 50
years old

FemaleMale

Notdisclosed

Other

AGE GROUP
Under 30

30-50Over 50

Finland

Americas

EMEA

APAC

GENDERREGION

Female Male Other Not disclosed

Finland Americas EMEA APAC

3 Reporting principles

Employee group: Employees

47

49

5

13

72

-

16

101

-

-

-

How our report was created

Employee group: Officials

71

206

11

117

168

-

3

248

21

14

5

GRI content index

Management team

-

9

-

2

7

-

-

8

-

1

-

Board

-

2

4

1

5

-

-

5

1

-

-

Ratio of basic salary andremuneration of women to men

2022

Officials employee group

0.99

Production employees

1.01

Data based on employees based in Finland and active on
31.12.2022. Women avr./Men avr.
Not including those who have not disclosed gender (20/337).
Regional data is not comparable due to different employee
groups and different countries’ market practice and price levels.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

HOW WE GOT HERESUSTAINABILITY REPORT 2022

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

Healthy and safe
materials

34

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

To ensure that our products are safe for humanhealth and the environment, we make sure to use
safe materials in our products. We do this by systematically testing our products, meeting and developing international health and safety standards
and requirements, as well as sourcing sustainably
for and designing our products with sustainable
and circularity-friendly materials.

Materials safety

Our sustainability work

We test the entire pod, not just the materials it
is composed of, to ensure they are safe to use. In
our case, such tests are of particular importancesince we design our pods to be soundproof, whichmeans that they are airtight. That is why it is critical to ensure that our pods do not emit any dangerous gases into the air.

Agenda with the material topics
KPIs, targets and progress
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

Fire safety
Besides using no flammable materials in our pods,
we have also run numerous fire safety tests on allmaterials. These tests have shown that our products have a safe heat release rate and that theexterior metal panels and the laminated glass of
our pods are of such high quality that they canwithstand heat and fire, demonstrating that ourpods are fire safe to use and place in an office.
Our most recent pod, Framery One, is even more
fireproof than Framery O, Q and 2Q because of its
structure, which is mostly made of steel.

Seismic safety
Framery One is the only GREENGUARD Gold certified pod in the world and the other pods are ULGREENGUARD certified, proving that our products have been independently tested and meet
the world’s most stringent chemical emissions
standards. This means that we have minimized
the risk to our customers of exposure to harmful
chemicals present in the indoor air.
We compile Health Product Declarations (HPDs)
for our products, listing the chemical contentsof the materials on the 100-ppm level in our
products and their potential effects on humanhealth. The HPDs show that we only use non-toxic

We have been working with a Japanese third party testing laboratory to help Japanese customers
see that our products are safe for the Japanesemarket. As a part of that process, we carried out
a series of tests in late 2022. The tests demonstrated that our pods would be perfectly safe in
the event of an earthquake on the same destructive order of magnitude as the Great Hanshin
earthquake of 1995.

Product safety
Our quality management system has been ISO
9001 certified, which means that our quality
management processes have been audited and

FRAMERY SUSTAINABILITY REPORT 2022

2 Sustainability at Framery

concentrations of materials in our products, verifying our products are safe for people and theplanet.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

35
approved by a third-party certification body. Thismeans that we meet high international standards
for quality management, including customers’ expectations of product safety requirements.

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

Our pods have undergone the IECEE CB Scheme
certification process, meaning our products havebeen independently tested to ensure they comply
with international safety requirements of electrotechnical equipment and components.
In addition, our pods have been UL962 certified by
Underwriters Laboratories. The UL962 certification, the leading North American standard for office furnishings such as pods, proves the electrical,
fire and structural safety of our products throughrigorous third-party testing.

Advancing health and safety standards

Our sustainability work

As pioneers in the office pod industry, we offer
our expertise to help legislators in North America,
Europe and the Asia Pacific region to make soundpod health and safety legislation, guiding regulators to approve office pods as a product category.
Based in part on our input, city officials across theUnited States issued recommendations and ordinances in 2022, dictating the health and safety
requirements office pods must meet.

Agenda with the material topics
KPIs, targets and progress
Management
Climate and Environment
People and Society
Customers					The Framerian culture
Employees and the wider workforce
Healthy and safe materials
Fair Business

3 Reporting principles
How our report was created
GRI content index

For similar reasons, we have also been working with the Business and Institutional Furniture
Manufacturers Association (BIFMA). Since 1973,
BIFMA has been developing standards for furniture sustainability, durability and safety in the
North American furniture industry.
In 2020, BIFMA published their guide for pods,
laying down the criteria that businesses, facility
managers, government officials and architects
should consider when investing in pods. Since then,
BIFMA has been working on making their guide

Environmentally friendly materials
Choosing the right material can be hard because
every choice comes with trade-offs. We must lookat the big picture and conscientiously weigh all thepros and cons of materials when choosing whichmaterials to use and how. But when it comes tocreating soundproof pods of the highest quality,
the primary consideration guiding our materials
selection is their ability to insulate outside sounds.
It is not always clear-cut what makes a material
sustainable. For example, when we manufacture
Framery One, we can prove that the measurement tolerances (i.e., the range of allowable dimensional errors) are tight, which means that wecan produce thousands of parts for Framery One
without generating much scrap to discard. Woodis a living and breathing material that reacts totemperature and humidity changes by expanding and shrinking, making it difficult to achieve
low measurement tolerances when manufacturing wood products. At the current output, this is
not an issue; however, were we to significantly
scale up our production of wood-based pods, wewould end up with plenty of scrap wood. Steelalso seems to have a lower carbon footprint thanplywood.

Utilizing Finland’s recycling infrastructure
Our goal of producing high-quality products determines the materials we use. We naturally
tend to source materials close to our factory in
Tampere, Finland. Finnish manufacturing is overall
better able to make use of recycled materials thanmost other countries because of Finland’s sophisticated recycling infrastructure.

We try to better understand our supply chain all
the way to the cradle. We acknowledge that welack visibility into the origins of materials since theraw materials extraction process does not takeplace with our top-tier suppliers. The recycled materials streams must always be of high quality toensure a long product lifespan and meet our capacity needs.

Sustainably sourced wood
The walls of our Framery O, Q and 2Q are made of
plywood that is produced in Finland or neighboring countries by Forest Stewardship Council (FSC)or Programme for the Endorsement of Forest
Certification (PEFC) certified timber suppliers.
Meaning, for every tree they cut down to be usedin the manufacturing of our products, they plant a
new tree in their place.

Circularity-friendly steel
When maintaining and repairing pods, there isa natural limit to how often you can take apartand put together wood-based products such as
Framery O, Q and 2Q. To replace the plywood
panels of the Framery O, you need power tools
to dismantle the pod, causing wear and tear. In
contrast, we designed our steel-based Framery
One to be easily disassembled for maintaining,
repairing, refurbishing and relocating; the panels
are particularly easy to remove and replace. One
reason Framery One is more durable and easier to maintain, repair and refurbish than its plywood-based predecessors is precisely that it ismostly made of solid steel and whose parts canbe replaced again and again. Our steel-based
pods can, for all intents and purposes, last in perpetuity, promoting environmental sustainability
and circularity.

FRAMERY SUSTAINABILITY REPORT 2022

2 Sustainability at Framery

the industry standard, and we have been contributing to that effort by pushing for strict requirements that make it safe to install office pods inNorth America.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

36

Fair BusinessWe believe that through our business operations andsupply chain, we can play an important role in promoting
fair business and labor practices, environmental and social
sustainability and anti-corruption policies. Accordingly, we
understand the importance of setting high standards forourselves and our suppliers. That way, we are building abusiness that makes the world a better and happier place.
FRAMERY SUSTAINABILITY REPORT 2022

Economic value creation				37Supply chain compliance				39Governance									40Principles of our operations			 42HOW WE GOT HERESUSTAINABILITY REPORT 2022

Economic value
creation

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

37

About this report
This is Framery

From the factory to happy workspaces
1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair BusinessEconomic value creation

The journey from factory to office begins in
Tampere, Finland, the center of our supply chain.
To assemble, sell, ship and maintain our pods, werely on a network of suppliers to provide us withcomponents, warehousing, logistics, dealing, installing and maintenance services. Along the way,
we must ensure that every link in our supply chain
helps us create material values in an economical,
ethical and sustainable manner.

Supply chain compliance
GovernancePrinciples of our operations

3 Reporting principles
How our report was createdRamp up in capacity
In 2022, our revenues increased by 60%. Part ofthat growth was due to pent-up demand during
the pandemic. As people returned to offices, they
gradually realized the need for our products. As
a result, our factory was running at full speed
throughout the year.

GRI content index

The Russian invasion of Ukraine
Before Russia’s invasion, we got some of our raw
materials from Russia. Following the invasion, we

Expanding our supply chain footprint to theAsia-Pacific region
Taking our cue from our successful US hub to serve
the Americas region, we set up a similar one inSingapore, which enabled us to significantly shorten our delivery times in the Asia-Pacific region.

Freeing up our production capacity
In 2022, we identified additional capacity at ourplywood component supplier, who already produces the wooden parts for our 2Qs. By ramping up
the plywood module production, we gave our operators more flexibility, enabling us to allocate capacity to other areas of our factory if needed andto buy more from this existing supplier. Through anagreement with our Finnish supplier, we expanded
their value-added production for us while at thesame time freeing up capacity for new products.
The components will also be assembled into fullmodules at the supplier’s location and shipped
directly to us, reducing the need for component
palettes to be stacked at the supplier’s locationand transported to us.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Framery was founded to improve the working
conditions of our customers. By creating happy
workplaces, we hope to increase the productivity and happiness of our customers’ employees.
We accomplish this by creating soundproof podsthat allow people to hold effective meetings.
Today, Framery is the global market leader inmanufacturing pods, phone booths and private
workspaces.

moved our sourcing from Russia to other countries, mostly in the European Union. Initially, we
feared that the EU suppliers of plywood, steel andglass would lack the capacity to meet our demand; in the end, this was not a major concern.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

38
The US hub, a brief update

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

Our supply chain strategy
Because most of our suppliers are in Finland orneighboring countries such as Sweden and theBaltic states, most of the value generated in our
supply chain is created close to our factory in
Tampere, Finland. Due to our proximity to our suppliers, our suppliers’ lead times are also short.
We ship our products worldwide, primarily toEurope, the United States and the APAC region.
The challenge has always been to reduce leadtimes for our customers in the United States and
APAC countries such as India, Singapore, Hong
Kong and Australia. We solved this problem bysetting up hubs in the United States and the Asia
Pacific region.

Economic value creation
Supply chain compliance
GovernancePrinciples of our operations

3 Reporting principles
How our report was created
GRI content index

Logistically, the hubs also enable us to optimize
container capacity. Since our production is socentralized, this is the most efficient way to ship.
Last year, we delivered approximately 17,000
pods in modules and components in cardboard or

Direct economic value generated and distributed MEUR

2020

2021

2022

81.40

93.80

153.74

Operating costs (total purchases of goods and services)

36.48

53.53

68.44

Employee wages and benefits

16.92

21.89

24.44

Income taxes paid, net

1.25

1.74

4.80

Dividents paid

0.00

0.00

0.00

Net financial expenses

5.01

5.10

5.67

Community investments

0.03

0.03

0.05

Direct economic value generated
Revenues
Economic value distributed

The Singapore hub — faster and more sustainable delivery
The long lead times used to be a bottleneck in
the APAC region. Owing to the new Singapore
hub, they are now a thing of the past. Because
we combine shipments into larger batches, theSingapore hub helps us reduce the number of
shipments from Finland. Bringing the pods closer to the APAC region will make airfreight shipments increasingly unnecessary. Instead of flying
our pods from Finland, our dealers in the region
can offer sea freight and deliver them in six weeks,
which is more than enough time. Since we opened
the Singapore hub, airfreights of pods to the region have ceased. Nevertheless, we still transport
some spare parts by plane.

Digital technology to boost warehouseefficiency
According to our research, the Singapore hub is
run by one of Singapore’s most technologically advanced logistics companies. They use digital technology to reduce paperwork to zero and to optimize warehouse space utilization, resulting in thehighest occupancy levels, which is also desirablefrom the standpoint of resource efficiency.

Net Revenue MEUR
160

120

80

40

0
2017

2018

2019

2020

2021

2022

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

In 2022, we optimized the container capacity for O
and Q modules shipped to the US hub because wewant our packages to be as tightly packed as possible. By shipping ready-packaged goods, we havemade our capacity more effective. Additionally, we
are no longer doing any reverse logistics from the
US hub to Finland. Optimized logistics supports
profitability and sustainability, which is why weconsider logistical implications when designing thenext generation of pods.

plywood packaging, enabling us to ship more in
the same container space. With the final assembly taking place at the customer’s office, this approach optimizes the packaging.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

39

Supply chain compliance
SUSTAINABILITY REPORT 2022

Continuous supplier development

About this report

Our supplier development team builds and maintains our supplier base and ensures that our suppliers meet our requirements. Quality, supply
technology, cost and environmental and social sustainability are all important considerations for any
partner we are taking on onboard.

This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair BusinessEconomic value creation
Supply chain compliance
GovernancePrinciples of our operations

3 Reporting principles
How our report was created
GRI content index

In 2022, we decided to replace one of our Chinese
suppliers of aluminum die casting with a Swedish
supplier for a variety of reasons, one of which wasenvironmental sustainability.

Physical visits, audits and responsible sourcing
Our supplier agreements, including product specifications, define the materials to be used and function as our standard for evaluating our suppliers.
Our supplier agreements ensure that the materials
and processes of our suppliers comply with various
regulatory requirements, such as the Restriction ofHazardous Substances Directive of the European
Union and Proposition 65 of California. The suppliers must also meet our requirements, such as being properly certified.

Our supplier selection process
Starting with identifying the need for new components and evaluating that, we start thinking of thepossible candidate supplier to manufacture them.
We use self-assessments to narrow down the candidate suppliers and visit them. If they meet ourhigh standards and are a good fit, we can start thecooperation.

Additionally, we have quality agreements that function like appendixes to the supplier agreement. The
quality agreements define their ways of working,what they need to fulfill, how they can modify the
product or manufacturing process, and the structure of their supply chain. All of this and more isdiscussed with our suppliers and agreed upon.

We compare everything from costs to logistics tosustainability. We carry out this process with key
stakeholders, such as our R&D and supply chain
partners. Following this process, we made manysuccessful supplier selections during 2022 since wealways have new products to conceptualize.

We regularly conduct physical audits of our actual or
potential materials suppliers. We start with the supplier self-evaluation questionnaire and perform thephysical audit. In the audit, we map out the process
to identify the strengths and weaknesses of the value stream. We use the resulting value stream map
to discuss how their processes work with respect tosustainability, including where they are getting theirraw materials from.

During 2022, we made tens of supplier visits, assessments and evaluations of potential partners.
Besides environmental factors, the principle guiding
us is that we should purchase the best quality as

Nordic suppliers improve sustainability

Environmentally, switching to a Swedish supplier makes sense because transporting aluminum
die casts from Sweden has a lower environmental
footprint than transporting them from China, even
if you use sea freight.
The Nordic countries generate comparatively more
renewable electricity than China. Even though
China is investing in renewable energy, Swedish
energy is currently more renewable, making energy-intensive aluminum production in Sweden
more sustainable. When logistics costs are factored in, Sweden and neighboring countries become more appealing.
Our Swedish suppliers’ production is not yet up to
speed due to a lack of tools. Once they are fully
equipped and ready to ramp up their production,
we will move all our orders over to the Swedish
partner, and after that, we will not source any aluminium parts from China.

Remedying the negative impacts of ouroperations
During the supplier screening, we turned down acouple of suppliers because they failed to live up
to our standards as defined by our Supplier Codeof Conduct:• We considered dealing with an aluminum
die-casting supplier in Poland. While their own
operations were satisfactory, their painting
subcontractor’s working conditions had serious
health and safety issues, which made it inappropriate for us to do business with them.
• In our search for a warehouse partner for our
Singapore hub, we passed up a couple of candidates because of how they treated their employees. Aside from using low-cost labor, the workplace’s hierarchical structure was also seen in
how they treated their low-ranking workers.
In our existing supplier base, we did not identify any
negative social or environmental impact during thelast year.

Staving off corruption
Our Supplier Code of Conduct demands that our
suppliers live up to our standards of working conditions, fair business practices and proper treatmentof employees. It prohibits all forms of corruption
and anti-competitive behavior. In 2022, 99% of our
suppliers have agreed to adhere to our Supplier
Code of Conduct, and no Code violations werereported.
When screening for a suitable location for our new
Asia-Pacific hub, we considered a competitively priced partner in Malaysia besides Singapore.
Consultants cautioned us that corruption is a bigger
problem in Malaysia than in Singapore. Minimizing
the risk of corruption was one of the decision criteriathat led us to locate the hub in Singapore.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

We are an assembly company, which means that
upstream processes generate 80% of the valueof our products and almost 80% of our products’environmental footprint. From a sustainability
perspective, the operations of our supplier basematter greatly, which is why it is so important topartner with the right suppliers.

geographically close to us as possible, since that is
also good for our business. In 2022, we made 95%
of our purchases from European Union countries. All
new partners were from the EU as well.

HOW WE GOT HERE

About this report
This is Framery

1 How we got here
CEO’s review

Board

The governance and management of Framery arebased on the Finnish Limited Liability Companies Act
as well as its Code of Conduct. Accordingly, the highest decision-making power is exercised by Framery’s
shareholders at the Annual General Meeting. The
company’s sustainability work is governed on threelevels: the board of directors, the management teamand the sustainability steering group.

Herman Miller, which is one of the leading companies in the industry. Timo Toikkanen, with a background in Nokia and currently CEO of Varjo, brings
in expertise especially from technology companies and global sales channels. Ilkka Pentikäinen,
Ville Koskenvuo and Pipsa Loimijoki, representing
Vaaka Partners, have backgrounds in finance, consulting and private equity.

Vaaka Partners and its co-investors own a controlling stake of Framery. The rest of Framery is
owned by Framery’s founders, operative management and private investors. Vaaka Partners
has three seats on the Board. Vaaka Partners is
registered with the Financial Services Authority incompliance with the Alternative Investment FundManager’s act. Vaaka Partners follows the United
Nations Principles for Responsible Investment in its
investment activities and strives to improve longrun risk-adjusted returns from its investments byconsidering ESG-factors (environmental, socialand governance). Vaaka Partners has a Policy for
Responsible Investment (“Vaaka PRI”), and accordingly it integrates sustainability perspectives into
the investment process and active ownership, as
well as aims to ensure that sustainability becomesa fundamental part of the companies’ business.

There are no committees within the board. Vaaka
Partners controls the nomination and selection process for the board members. The board conducts
self-assessment yearly based on Vaaka Partner’s
governance model. The CEO is evaluated with thesame process and at the same time.

Management
team

Vaaka Partners has organized for their investment
team training on sustainable business, diversity, equity and inclusion, and sustainable finance disclosure
regulation. Vaaka Partners also updates their teams
regularly on sustainability matters. Framery has notorganized any separate sustainability training during
the year for the board members apart from updates
given in the board meetings.

Functions

The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair BusinessEconomic value creation
Supply chain compliance
GovernancePrinciples of our operations

Board
3 Reporting principles
How our report was created
GRI content index

In 2022, the board consisted of six individuals; twofrom the owner, three independent and one substitute member from the owner. They all are non-executive members. Mika Sutinen is an experienced
Chairman of the Board, with experience in leading several growth companies. Greg Bylsma has
extensive experience in the top management ofRoles and responsibilities
The board acts as the highest governance body.
The board oversees development of and approves
the company’s strategy, policies and goals including sustainability-related matters. Simultaneously,
the board oversees the management and effectiveness of Framery’s sustainability work.
Sustainability matters are discussed as part ofstrategy, action plans, financial planning, annual
budgeting, risk management and business plans.
The board monitors the implementation andCEO

performance of the strategic projects on a monthly basis. The board met 12 times during 2022 anddiscussed sustainability related matters twice as aseparate agenda topic.
Responsibility and accountability for the management of impacts lies with the management teammembers while the day-to-day activities are managed by teams reporting to the functions and sustainability steering group. Framery’s sustainability report, including the material topics, has been

Sustainability
steering grouppresented to the board as well as selected members of the management team for their approval.
The sustainability steering group is set up to manage operational day-to-day activities by gathering
responsible individuals from the management teamand functions. The steering group monitors andguides the implementation of annual targets. The
sustainability steering group meets on a bimonthly
basis as well as ad hoc when needed.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

REPORTING PRINCIPLES

40

Governance
SUSTAINABILITY REPORT 2022

SUSTAINABILITY AT FRAMERYHOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

41
Conflict of interest and critical concerns

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair BusinessEconomic value creation
Supply chain compliance
GovernancePrinciples of our operations

3 Reporting principles
How our report was created
GRI content index

The CEO and CFO are responsible for communicating the critical concerns to the board. During 2022,
one concern was raised, which related to the situation and action plan regarding Russia. This casewas handled within the management team, and it
was investigated and closed during the year.

Remuneration
The remuneration and remuneration model is decided at the Annual General Meeting. The General
Meeting gives the Board the rights and boundaries
to make direct share issues for long-term remuneration to the board and management. All board
members own a share of the company and theirremuneration is fixed pay without any variable
pay or other bonus schemes. Remuneration of theboard or the management team is currently notlinked to sustainability targets.
The ratio of the annual total compensation for thehighest-paid individual to the median annual totalcompensation for Finland-based employees (excluding the highest-paid individual) was 5.2 in 2022.
The ratio of the percentage increase in annual totalcompensation for the organization’s highest-paid
individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) was 1.4. The medianannual total compensation includes only employees
based in Finland due to incomparable compensationlevels between countries. Both office workers andproduction employees have been included.

Board
Mika Sutinen, Chairman of the Board• independent of the company• board member since 2018

Ville Koskenvuo• not independent of the company• board member since 2018

Timo Toikkanen• independent of the company• board member since 2018

Gregory Bylsma• independent of the company• board member since 2021

Ilkka Pentikäinen
• not independent of the company• board member since 2018

Pipsa Loimijoki• not independent of the company• substitute board member since 2020

Management teamSamu Hällfors
Founder&CEO

Lasse Karvinen
Head of Products

Timo Inkinen
Head of ProductDevelopment & Quality

Daniela Tjeder
CMO

Arto Vahvanen
Head of Digital
Services and Offerings

Anni Hallilla
Head of People and Culture

Lauri Isotalo
CFO

Hannu Seppä
Head of Supply Chain

Mattias Ekberg
Head of Global Sales

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Conflicts of interest are required to be reported by
the board members as part of the Shareholder’sagreement and by overall policy. Framery’s
Shareholders’ agreement includes a clause that one
must inform about competing activities. The board
oversees their own actions and the management
team while Vaaka Partners oversees the board.

HOW WE GOT HERESUSTAINABILITY AT FRAMERY

Principles of our operations

REPORTING PRINCIPLES42

SUSTAINABILITY REPORT 2022
About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

Framery is committed to conducting its business in asocially responsible, environmentally sustainable, ethical and legal manner. In all our operations, we comply
with all laws and regulations related to us. Our Codeof Conduct outlines principles that we commit ourselves to and expect our suppliers to follow. Our Codeof Conduct consists of the ethical principles that
determine how both we and our suppliers conduct ourbusiness, and how we take responsibility for people
and for the environment. In addition, we also expect
our suppliers and subcontractors to live up to our highstandards.

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair BusinessEconomic value creation
Supply chain compliance
GovernancePrinciples of our operations

3 Reporting principles
How our report was created
GRI content index

We enforce our commitments via our Supplier Codeof Conduct and topic-specific policies. Our Supplier
Code of Conduct outlines the minimum standards
we expect our suppliers to comply with when doing
business with us. Framery’s Supplier Code of Conduct
is presented in a separate document and all suppliers

Framery’s Code of Conduct, Supplier Code of
Conduct, Environmental Policy, Occupational Health& Safety Policy and Quality Policy are available atour website. All of Framery’s policy commitments
have been approved by the CEO and shared with all
employees.
The management of the company is responsible forreporting all relevant topics to the board at least annually or whenever a relevant issue arises. The open issues are then followed at the board level until they areclosed and the issue is remediated, with relevant KPIs
set when needed. Within the company, all employees
are instructed to report to their supervisors, People& Culture business partners, management teammembers or to any other relevant party when facing
an issue. Additionally, an anonymous whistleblower
channel exists if none of the other channels are seen
as feasible means of communicating the issue.
Everybody at Framery can seek advice from theirteam leader or People & Culture business partner. To
encourage open dialogue within the organization, we
foster a close relationship and interaction with theirteam leader. Additionally, Framery has a whistleblowing channel that employees can use to report suspicions of misconduct or illegal activities. Employees

can do so anonymously, without fearing repercussions.
External stakeholders can raise concerns through theircontact person at Framery.
No significant non-compliance cases with laws andregulations were recorded.
Framery is a member of BIFMA, a non-profit tradeassociation for business and institutional furniture
manufacturers, FEMB, the European Office Furniture
Federation, Kasvuryhmä Suomi ry, an organizationthat brings together the most ambitious scale-ups in
Finland, as well as Tampere Chamber of Commerceand Industry, a leading business organization in theTampere region. Besides participation in the United
Nations Global Compact (UNGC), Framery joined theScience Based Targets initiative (SBTi) in 2020. SBTi isa call to action for the private sector to set ambitious
climate targets.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Framery has been a participant of the UN Global
Compact since 2018. We are committed to aligning
our operations with the basic principles and ambitious aspirations of the UN Global Compact, supporting human rights, the right to collective bargaining, the precautionary approach to environmental
issues and opposing corruption. The Ten Principlesof the UN Global Compact rests on the Universal
Declaration of Human Rights, the International
Labour Organization’s Declaration on Fundamental
Principles and Rights at Work, the Rio Declaration
on Environment and Development and the United
Nations Convention Against Corruption. We recognize our duty to respect human rights and address ouroperations’ negative impacts.

are expected to sign it. Our policies on Environment,
Occupational Health & Safety, and Quality explain
how we work and what we are committed to. Ourcommitments are embedded in our culture and processes. Responsibilities for operational day-to-day
activities are allocated to the management teammembers and their functions.

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3		 Reporting
			 principles
FRAMERY SUSTAINABILITY REPORT 2022

How our report was created 				44GRI content index									45HOW WE GOT HERESUSTAINABILITY REPORT 2022

How our report
was created

SUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES

44

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management
Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created
GRI content index

The boundary of our reporting is all Framery related entities, of which Happyspace Oy is the
top company. This report covers Happyspace
Oy and all of its subsidiaries. It contains data for
Framery’s operations, excluding leased workers,
dealers and suppliers, unless otherwise stated. No
significant restatements of previously reported
information were made. Framery is a privately
owned company with headquarters and production at Patamäenkatu 7, 33900 Tampere, Finland.
As a non-listed company Framery has not published any financial statements publicly.
The information contained in this report has notbeen externally assured.
For more information about Framery’s
sustainability work write to:sustainability@frameryacoustics.com

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Framery publishes its sustainability data annually. Framery has reported in accordance with
the GRI Standards for the period from 1 January2022 to 31 December 2022. This is our fourth annual sustainability report and it was published on
April 12, 2023.

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES45

GRI content index
SUSTAINABILITY REPORT 2022

Disclosure

About this report

GRI 2: General Disclosures 2021

This is Framery

The organization and its reporting practices

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

Location

2-1 Organizational details

This is Framery, p. 4
How our report was created, p.44

2-2 Entities included in the organization’s sustainability reporting

How our report was created, p. 44

2-3 Reporting period, frequency and contact point

Publication date April 12, 2023
How our report was created, p. 44

2-4 Restatements of information

How our report was created, p. 44

2-5 External assurance

How our report was created, p. 44

Activities and workers

2-7 Employees

The number of employees related figures are reported as headcount in the end of the reporting period.
Employees and the wider workforce, p. 31

Climate and Environment

2-8 Workers who are not employees

Employees and the wider workforce, p. 30

People and Society

GovernanceFair Business

2-9 Governance structure and composition

Governance, p. 40–41

2-10 Nomination and selection of the highest governance body

Governance, p. 40

2-11 Chair of the highest governance body

Governance, p. 41

2-12 Role of the highest governance body in overseeing the management of impacts

Governance, p. 40

2-13 Delegation of responsibility for managing impacts

Governance, p. 40

2-14 Role of the highest governance body in sustainability reporting

Governance, p. 40

2-15 Conflicts of interest

Governance, p. 41

2-16 Communication of critical concerns

Governance, p. 41

2-17 Collective knowledge of the highest governance body

Governance, p. 40

2-18 Evaluation of the performance of the highest governance body

Governance, p. 40

Our sustainability work
Agenda with the material topics
KPIs, targets and progress
Management

3 Reporting principles
How our report was created
GRI content index

FRAMERY SUSTAINABILITY REPORT 2022

2-6 Activities, value chain and other business relationships

No significant changes in Framery’s sectors, value chain or other business relationships compared toprevious years.
This is Framery, p. 4
The world’s most sustainable pods, p. 8
Strategy, pp. 9–10

2 Sustainability at Framery

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SUSTAINABILITY REPORT 2022

Disclosure

Location

About this report2-19 Remuneration policies

Governance, p. 41

This is Framery

2-20 Process to determine remuneration

Governance, p. 41

2-21 Annual total compensation ratio

Governance, p. 41

Strategy, policies and practices

CEO’s review

2-22 Statement on sustainable development strategy

CEO’s review, pp. 6–7

The world’s most sustainable pods

2-23 Policy commitments

Principles of our operations, p. 42

2-24 Embedding policy commitments

Principles of our operations, p. 42
Sustainability management, pp. 17–18

2-25 Processes to remediate negative impacts

Principles of our operations, p. 42
Sustainability management, pp. 17–18

2-26 Mechanisms for seeking advice and raising concerns

Principles of our operations, p. 42

Agenda with the material topics

2-27 Compliance with laws and regulations

Principles of our operations, p. 42

KPIs, targets and progress

2-28 Membership associations

Principles of our operations, p. 42

Management

Stakeholder engagement

Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work

2-29 Approach to stakeholder engagement

The categories of stakeholders Framery engages with include: employees and the wider workforce,
customers (including partners, architects, end customers), end users, suppliers and other partners,
industry organizations and NGOs, media and influencers, authorities, owners, investors and financiers, universities and other educational institutions, and local communities.
How we got here, pp. 5–12
Sustainability at Framery, pp. 13–42

2-30 Collective bargaining agreements

Employees and the wider workforce, p. 30

Climate and Environment
People and Society
Fair Business

3 Reporting principles
How our report was created

MATERIAL TOPICS

GRI content index

GRI 3: Material Topics 2021
3-1 Process to determine material topics

Our impact on the world, p. 11
Our sustainability agenda with the material topics, p. 15

3-2 List of material topics

Our sustainability agenda with the material topics, p. 15

3-3 Management of material topics

Sustainability management, pp. 17–18

FRAMERY SUSTAINABILITY REPORT 2022

1 How we got here

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47

GRI content index
SUSTAINABILITY REPORT 2022

Disclosure

About this report

ECONOMIC PERFORMANCEThis is Framery

Location

GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed

Economic value creation, pp. 37–38

1 How we got here
CEO’s review

ANTI-CORRUPTION

The world’s most sustainable pods

GRI 205: Anti-corruption 2016

Strategy205-1 Operations assessed for risks related to corruption

Our impact on the world

Sustainability management, p. 18
Supply chain compliance, p. 39

MATERIALS
GRI 301: Materials 2016

Our sustainability work

301-1 Materials used by weight or volume

Agenda with the material topics

ENERGY

KPIs, targets and progress

GRI 302: Energy 2016

Management302-1 Energy consumption within the organization

Climate and Environment
People and Society
Fair Business302-3 Energy intensity

Environmental efficiency, p. 24

Energy consumption is reported based on invoices and data provided by the energy services supplier.
Environmental efficiency, p. 24
Energy intensity is calculated by dividing the total energy consumption by revenue.
Environmental efficiency, p. 24

EMISSIONSGRI 305: Emissions 2016

3 Reporting principles
How our report was created
GRI content index

305-1 Direct (Scope 1) GHG emissions

GHG emissions are calculated following The GHG Protocol’s Corporate Accounting and ReportingStandard and based on energy consumption figures. Emission factors are obtained from Statistics
Finland (fuel classification for scope 1 emissions, and district heat production in Finland for heating,scope 2 location-based), Fingrid (emission coefficients of the Finnish electicity system for scope
2 location-based), and Tampereen Sähkölaitos (for heating, scope 2 market-based) besides ourenergy services supplier (for electricity, scope 2 market-based). Biogenic emissions are not reported
due to minor impact.
Climate impact, pp. 20–21

FRAMERY SUSTAINABILITY REPORT 2022

2 Sustainability at Framery

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SUSTAINABILITY REPORT 2022

Disclosure

Location

305-2 Energy indirect (Scope 2) GHG emissions

GHG emissions are calculated following The GHG Protocol’s Corporate Accounting and ReportingStandard and based on energy consumption figures. Emission factors are obtained from Statistics
Finland (fuel classification for scope 1 emissions, and district heat production in Finland for heating,scope 2 location-based), Fingrid (emission coefficients of the Finnish electicity system for scope 2 location-based), and Tampereen Sähkölaitos (for heating, scope 2 market-based) besides our energy services
supplier (for electricity, scope 2 market-based). Biogenic emissions are not reported due to minor impact.
Climate impact, pp. 20–21

305-5 Reduction of GHG emissions

GHG emissions are calculated following The GHG Protocol’s Corporate Accounting and ReportingStandard and based on energy consumption figures. Emission factors are obtained from Statistics
Finland (fuel classification for scope 1 emissions, and district heat production in Finland for heating,scope 2 location-based), Fingrid (emission coefficients of the Finnish electicity system for scope 2 location-based), and Tampereen Sähkölaitos (for heating, scope 2 market-based) besides our energy services
supplier (for electricity, scope 2 market-based). Biogenic emissions are not reported due to minor impact.
Climate impact, pp. 20–21

About this report
This is Framery

1 How we got here
CEO’s review
The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
WASTE

Agenda with the material topics

GRI 306: Waste 2020

KPIs, targets and progress306-3 Waste generated

Environmental efficiency, p. 24

Management306-4 Waste diverted from disposal

Environmental efficiency, p. 24

Climate and Environment306-5 Waste directed to disposal

Environmental efficiency, p. 24

People and Society

EMPLOYMENTFair Business

3 Reporting principles
How our report was created
GRI content index

GRI 401: Employment 2016
401-1 New employee hires and employee turnover

Employees and the wider workforce, p. 30

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Employees and the wider workforce, p. 32

401-3 Parental leave

Employees and the wider workforce, p. 32

OCCUPATIONAL HEALTH AND SAFETY
GRI 403: Occupational Health and Safety 2018403-8 Workers covered by an occupational health and safety management system

Employees and the wider workforce, p. 30

403-9 Work-related injuries

Employees and the wider workforce, p. 32

403-10 Work-related ill health

Employees and the wider workforce, p. 32

FRAMERY SUSTAINABILITY REPORT 2022

Our sustainability work

HOW WE GOT HERESUSTAINABILITY AT FRAMERYREPORTING PRINCIPLES49

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SUSTAINABILITY REPORT 2022

Disclosure

About this report

TRAINING AND EDUCATIONThis is Framery

GRI 404: Training and Education 2016404-1 Average hours of training per year per employee

1 How we got here
CEO’s review

404-2 Programs for upgrading employee skills and transition assistance programs

The world’s most sustainable pods
Strategy
Our impact on the world

2 Sustainability at Framery
Our sustainability work
Agenda with the material topics
Management404-3 Percentage of employees receiving regular performance and career development reviews

Trainings by gender and employee category not available.
Employees and the wider workforce, p. 32
Information about transition assistance programs not available for disclosure.
Employees and the wider workforce, p. 32
100% of production employees received a regular performance and career development review
during 2022. The percentage is not available for office workers. We have an annual personal development cycle for office workers and senior office workers. We offer tools to the team leader and theemployee to support a discussion of personal development topics. Still, we don’t actively follow thenumber of discussions. Information is not available by gender and employee category.
Employees and the wider workforce, p. 32

DIVERSITY AND EQUAL OPPORTUNITYGRI 405: Diversity and Equal Opportunity 2016405-1 Diversity of governance bodies and employees

Employees and the wider workforce, p. 33

405-2 Ratio of basic salary and remuneration of women to men

Employees and the wider workforce, p. 33

Climate and Environment

NON-DISCRIMINATION

People and Society

GRI 406: Non-discrimination 2016

Fair Business406-1 Incidents of discrimination and corrective actions taken

The Framerian culture, p. 29

CUSTOMER HEALTH AND SAFETY
3 Reporting principles
How our report was created
GRI content index

GRI 416: Customer Health and Safety 2016416-1 Assessment of the health and safety impacts of product and service categories

Healthy and safe materials, pp. 34–35

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services

Framery has not encountered cases where Framery products would have been non-compliant. There
have been cases where, for example, Framery products have been flagged because the pods haven’t
been equipped with sprinklers, and then the customer has installed a sprinkler head into the product.

FRAMERY SUSTAINABILITY REPORT 2022

KPIs, targets and progress

Location

HOW WE GOT HEREREPORTING PRINCIPLESFRAMERY SUSTAINABILITY REPORT 2022

CONTACT US
For more information about Framery’s
work on sustainability and company
responsibility, please contact us at
sustainability@frameryacoustics.com.

SUSTAINABILITY AT FRAMERY