Sampo Group is committed to developing the sustainability of the Group, as well as the related reporting, indicators, and targets. This is in the interests of, and expected by, the company's stakeholders.
Sampo plc’s Board of Directors is responsible for and has the ultimate oversight of group-level sustainability, containing the entire range of environmental (incl. climate change), social, and governance matters. The Board also approves the sustainability report annually. Sustainability-related questions are included in the performance evaluation of Sampo plc’s Board of Directors in order to increase the board-level focus on these matters. The self-assessment is independent and completed annually. The board has assigned its Audit Committee to monitor Sampo Group’s sustainability reporting and activities. Sustainability is also regularly on the agenda of the Audit Committee meetings.
The Group Chief Financial Officer (CFO), who is a member of the Sampo Group Executive Committee, directs Sampo plc’s Sustainability unit. The CFO also ensures that adequate reporting on sustainability matters is provided to the Group CEO.
The Sustainability unit of Sampo plc, led by the Head of Sustainability, is responsible for the development and coordination of sustainability at group level. The unit prepares the sustainability reporting and the sustainability programme, which sets the direction for the Group’s sustainability work. In addition, the unit sets schedules and requests, provides guidance to the subsidiaries, and organises regular sustainability meetings.
At each subsidiary, various business areas, operational departments, and units are actively involved in the Group’s sustainability endeavours and reporting. Group-level sustainability reporting is largely based on information provided by the subsidiary companies according to formats and schedules defined by Sampo plc’s Sustainability unit. Each subsidiary is responsible for its respective reporting to the parent company to ensure correctness of information. In addition to group-level sustainability governance, each Group company has its own internal governance structures.
Sustainability organisation and reporting structure
Sampo plc has conducted a materiality analysis to identify the most material sustainability themes for the entire Group. The results of the analysis help Sampo to focus efforts on the most relevant sustainability topics for the Group and its stakeholders.
Key stakeholder groups considered during the process include investors, personnel, customers, analysts, media, and authorities. In addition, regulatory requirements regarding current and future sustainability reporting, industry best practices, relevant reporting frameworks (e.g., the GRI Standards, the TCFD), and the views of various ESG rating agencies were considered during the process. Insights gathered from external sources were reviewed and prioritised internally.
Based on the materiality analysis process, Sampo Group currently has five strategic sustainability themes: Sustainable Business management and operations, Sustainable corporate culture, Sustainable investment management and operations, Sustainable products and services, and Sustainable communities. Under each of these themes, most material sustainability topics have been identified.
Sampo plc completed the first materiality analysis in 2016 with an external partner. Since then, internal reviews of the most material themes and topics have been completed as part of the development and update of the Sampo Group sustainability programme in 2019 and 2021. The next comprehensive materiality analysis is planned to be completed before the end of 2023. The idea is to do a double materiality analysis according to the requirements of the latest legislation.
Value creation model
The value creation model illustrates how Sampo Group uses resources in the form of financial capital, human capital, manufactured capital and natural capital in its operations to create value for its customers, employees, shareholders, and other stakeholders.
The created value is further categorized into social, economic, and environmental impacts. Sampo Group’s strengths lie in its financial stability, motivated employees, and strong processes through which it offers safety and well-being in society and helps customers manage and reduce risks. Good governance structures, compliance with international standards, and good relationships with all stakeholders are at the core of Sampo's operations.
The value creation model is based on the International Integrated Reporting Council’s (IIRC) framework.