SUSTAINABILITY REPORT

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ASSET MANAGEMENT TO BE PROUD OF.™ 4Helsinki Capital Partners in brief 5A message from the CEO 6Our mission 8Our values 8Good governance 8Teal organisation structure 9Our services, clients, and products 11Our funds’ performance 12

CREATING IMPACT THROUGHOUT OUR VALUE CHAIN 14Highlights of 2018 15Our stakeholders — relationship based on trust 17HCP’s key sustainability topics and the UN Sustainable Development Goals 18

SOCIAL RESPONSIBILITY AT HCP 22Responsibility for our people 23

We are the first Certified B Corporation in Finland 23Best for Workers by B Lab 23Working culture at HCP 25 Workforce and owners 25The trainee program 25Equality and diversity 26A fair workplace 26Demystifying the financial industry 26

Responsibility for society 28Creating shared value 28More culture for society 28Supporting entrepreneurs around the world 29 Artist in Residence: Luca Delgado 30

ECONOMIC RESPONSIBILITY AT HCP – RESPONSIBLE AND TRANSPARENT FINANCE 32Profit for the year 33

Risk management 37Financial supervision 37Investor returns 37Transparency of products 38Responsible investment 38

ENVIRONMENTAL RESPONSIBILITY AT HCP 40Our operations and a sustainable value chain 41Our funds in the value network 41Creating new positive impact 42

ABOUT THE REPORT 44

A MESSAGE FROM THE UNITHOLDERS’ REPRESENTATIVE 45

GRI INDEX 46

CONTENTS

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Helsinki Capital Partners Ltd (HCP) is a Finnish asset man-agement company with a mission. We aim to contribute to building an ethically sound financial industry, and we want to consider all aspects of sustainability in our operations.

Our value proposition, Asset management to be proud of.™, guides our operations. Through responsible business prac-tices, we act in the best interest of our clients and create shared value for all our stakeholders.

We offer our personalised asset management services to private and institutional investors, professional athletes, and artists. Our three actively managed funds are HCP Black, HCP Focus, and HCP Quant.

HCP is a Finnish group of three limited liability companies. The parent company, HCP Group, owns two subsidiaries: HCP Asset Management and HCP Advisory. HCP Asset Management administers all investment activities, and HCP Advisory manages all other operations, such as projects with our stakeholders.

The HCP team consists of six permanent employees and is supported by trainees. As an active member of society, we collaborate closely with many partner organisations.

HCP operates from Kaapelitehdas (the Cable Factory), a cultural centre in Helsinki, Finland. In addition to the head-quarters, HCP has a mobile office, the #HCPSPIRIT tour bus.

HELSINKI CAPITAL PARTNERS IN BRIEF

ASSET MANAGEMENT TO BE

PROUD OF.™

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A MESSAGE After celebrating our 10th anniversary in 2017, now is the perfect time to reflect on the progress we have made since the begin-ning and collect our aspirations for the future.

We started HCP in 2007 with a mission to provide open and honest asset management service. Our no-kickback policy has been the keystone of our operations along with the initiative, fee only – no commissions. We have encouraged clients to ask asset managers the question: “Exactly how much did you charge me – directly and indirectly – for your services last year?” We can give a simple answer to this question.

Looking back, we are proud to say that we were the first Finn-ish asset management company to commit to full transparency in the company’s fee structure. We believe that this is a sign of respect towards our clients.

During our history, we have taken further steps towards sustain-ability. The token of these efforts is our B Corporation certi-fication, received in 2017. Our B Corp membership has made us even more aware of the importance of transparency in our business.

Our mission today incorporates the ethos of the B Corp move-ment: using business as a force for good. We consider our work in the light of all our stakeholders and encourage them to chal-lenge asset managers further: “What did you do for the world last year, and how big a part of your business was involved in it?” Through a rich cooperation with society and the environ-ment around us, we have shown that an asset manager can operate profitably while creating value for all its stakeholders.

Looking forward, we want to embrace our most valuable asset – our people. In 2018, we found, to our delight, that our working culture closely resembles the Teal organisation model, which emphasises self-management. Every single one of us at HCP is an ambassador of the company, and together we shape our identity. We have concluded that the Teal organisation struc-ture is the best way to describe HCP’s evolution to date. Going forward, we will set an example by further building the concept of Asset management to be proud of.™

Tommi Kemppainen

FROM THE

TOMMI KEMPPAINEN CEO, HCP Black Portfolio Manager

CEO

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Our missionOur mission since the beginning has been to build an honest and transparent financial industry. We want to do Asset management to be proud of.™

Along our 12-year journey, we have come to realise that we can do even more than this. We want to be an active member of society and create positive net returns to all our stakeholders. Accordingly, our mission has now evolved into doing busi-ness that is best for the world.

Our valuesTransparency Transparency is about honesty. In our context, this means the elimination of any hidden agendas, pricing models, and incentives. Trust is our most valuable as-set, and this can be achieved only by full transparency.

PartnershipWe want to develop long-lasting and mutually beneficial relationships with our clients and other stakeholder groups. Therefore, hiring and collaborating with experts from a variety of fields is essen-tial to our way of doing business. Know-ing, understanding, and respecting our clients are the key aspects of establishing high-quality partnerships.

EfficiencyWe aim to offer our clients the best pos-sible risk-adjusted return, cost efficiency, convenience and, above all, peace of mind. Our efficiency is based on HCP’s experienced investment team, excellent networks, and world-class expertise in investments such as bonds, stocks, real estate, cash, and alternative investments. We have also eliminated all communica-tion barriers within the company, and we

actively conduct investment research and utilise digital business operations.

Good governanceGood governance lays the foundation for businesses that prosper long-term. HCP integrates economic, environmental, and social matters into its governance prac-tices.

HCP’s shareholders nominate and appoint the company’s highest govern-ance body, the HCP board, in compliance with the Finnish Limited Companies Act. The board in turn appoints the compa-ny’s CEO and management at the Annual General Meeting (AGM).

HCP’s management administers the company’s day-to-day operations. The company’s in-house Compliance Officer ensures conformity with the Alternative Investment Fund Management Directive (AIFMD). AIFMD requires AIFMs to obtain authorisation from FIN-FSA and make various disclosures as a condition of operation. HCP’s Head of Risk acts as the company’s internal auditor and tests and evaluates HCP’s operations and risk man-agement annually. To ensure independ-ence, HCP’s CEO or portfolio managers cannot be appointed as the Compliance Officer or Head of Risk.

HCP does not have board committees to designate economic, environmental, and social topics. This is due to the small size of the company and of its board. HCP engages employees on all matters that are fundamental to the company, in-cluding sustainability topics. Our employ-ees can freely raise questions about sus-tainability with the CEO, which are then collectively discussed and acted upon.

The CEO develops and updates HCP’s purpose, values, mission statements, strategies, policies, and goals related to economic, environmental, and social topics for board approval. The CEO seeks approval, throughout the year, from the board for any decisions related to eco-

nomic, environmental, and social top-ics requiring €50,000 or more prior to execution. HCP documents the process of reviewing each decision through its ticketing system. This procedure ensures that HCP’s operations are aligned with its value proposition: Asset management to be proud of.™

The board approves all other informa-tion before presenting it to the share-holders at the AGM. The shareholders’ decision at the AGM discharges the CEO and the board from liability.

To increase independence and diversi-ty, HCP invites a unitholders’ represent-ative to the board annually. The repre-sentative is elected by the unitholders at the annual Unitholders’ Meeting. The representative shall have no prior con-nection to the company, apart from being a client. To ensure that the representa-tive gains adequate experience about the company’s key topics, it is recommended that each representative carries out his task for a minimum of two years.

In 2018, our fund manager Pasi Havia came across a book called “Reinvent-ing Organizations” by Frederic Laloux. This book introduces a new paradigm of organisational structure called the Teal organisation model. A Teal organisation has three characteristics: self-manage-ment, wholeness at work, and evolution-ary purpose.

Pasi recommended the book to HCP CEO Tommi Kemppainen, who in turn suggested that everyone else should read it, too.

For Pasi, self-management is self-evi-dent: “If you are digging a ditch for work, keeping track of the time spent working makes sense. In the IT sector it’s differ-ent. A lousy line of code does not get any better by punching more hours to the timecard.“

Everybody working at HCP has a dif-ferent background and set of skills, and everybody is allocated different respon-sibilities. We do not prejudge how others fulfil their tasks – the key is to complete them. When people feel involved, they pursue their tasks in the best way they see fit, removing the need for microman-aging.

Instead of a rigid hierarchy, we count on expertise. The person with the most expertise on any given topic works on it and makes decisions after seeking advice from his colleagues.

An organisation without power hierar-chies works for us. In a country with an excellent education system, advanced information networks, and a high level of trust among the population, we believe that many other organisations could adopt similar principles.

Our working model has not lived through many economic cycles yet. To tackle some foreseeable problems, we have agreed on swift decision-making processes during economic downturns. This should allow us to get back to nor-mal Teal-style working even in the worst times.

At HCP, the CEO is one of the team members. One of his tasks is to listen to all others to find out where they are com-ing from and where they are headed to next. This helps us to refine our strategy together and act accordingly.

Teal organisation structure

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Our services, clients, and productsHCP offers asset management services and financial advice to clients globally. At the end of 2018, the majority of our 596 clients were Finnish. Other clients are based in Europe, Asia, and North America.

Personalising services according to our clients’ needs and wants enable us to build long-term partnerships. Therefore, we focus on serving four client groups:

• private investors• institutions• professional athletes• artists

HCP BlackHCP Black is a multi-strategy fund man-aged by Tommi Kemppainen, the CEO and founder of HCP. It aims to optimise risk-adjusted return on capital through active diversification. The fund is posi-tioned for the end of the current long debt-cycle.

The fundamental characteristics of each investment strategy in HCP Black are analysed to ensure that the investments function to hedge against each other, making the fund resistant in macroeco-nomic uncertainty.

The fund invests across a wide range of asset classes, and the fund’s holdings are regularly updated to adjust to changes in the economy.

HCP invests over 1 million euros of its own money in HCP Black. This makes the fund our recession buffer, and the prac-tice demonstrates our commitment to the long-term future of the company.PASI HAVIA

HCP Quant Portfolio ManagerPrivate Investors

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ASSETS UNDER MANAGEMENT IN THE FUNDS

AUM

HCP Black

HCP Focus

HCP Quant

Managed accounts

Total

2018 2017 2015

€17,363,985

€45,520,330

€7,270,933

€3,888,890

€74,044,138

€26,169,983

€31,752,199

€12,253,837

€4,848,450

€75,024,469

€31,336,373

€25,787,504

€14,147,756

€6,853,320

€78,124,953

2016 2014

€24,041,073

€23,635,777

€14,432,574

€7,390,281

€69,499,705

€15,780,965

€18,180,828

€11,816,244

€9,145,272

€54,923,309

FUND PERFORMANCE OVER THE PAST FIVE YEARS

AUM

HCP Black

HCP Focus

HCP Quant

2018 2017 2015

-3.36%

1.72%

-20.21%

-7.53%

20.98%

9.96%

-3.16%

11.51%

4.58%

2016 2014

9.59%

25.85%

-3.73%

14.05%

10.01%

22.59%

Fund subscriptions

Fund redemptions

AUM

2018 2017

€18.4 million

€15.2 million

€74.0 million

€5.6 million

€11.8 million

€75.0 million

€12.6 million

€5.9 million

€78.1 million

2016

The 2018 annual return of HCP Black was –3.36%. The 5-year return % p.a of HCP Black was 1.58%.

HCP FocusHCP Focus is an equity fund managed by portfolio manager Ernst Grönblom. The objective of the fund is to exceed its benchmark index. The fund follows a val-ue-investing strategy, which means that it invests in companies that are priced low in comparison to their intrinsic value, based on the expert judgement of the portfolio manager. The portfolio is more concentrated than usual, and has no more than 8–12 holdings at any one time. The holdings are not bound geographi-cally.

The 2018 annual return of HCP Focus was 1.72%. The 5-year return % p.a of HCP Focus was 13.70%.

HCP QuantHCP Quant is an equity fund managed by portfolio manager Pasi Havia. The fund follows a systematic quantitative invest-ing strategy. The fund invests in small and mid-cap companies globally. The fund

Jari Hepokorpi “Omakuva 2” (2017)

identifies stocks that are undervalued according to several quantitative criteria.

Typically, the fund analyses thousands of companies, from which it picks the best 20–25. This systematic quantitative in-vesting method has been proven to beat the market in the long run.

The 2018 return of HCP Quant was –20.21%. The 5-year return % p.a of HCP Quant was 1.60%.

Our funds’ performanceWe base our fund strategies on securing long-term profitability for our clients. Thus far, our assets under management have grown steadily over a long period of time. To communicate this information clearly, we have also disclosed the figures for new investments and fund redemp-tions since 2016. This way our clients can have a more accurate picture of fund growth. The figures are shown in the table below.

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18CREATING

IMPACT THROUGHOUT

OUR VALUE

CHAIN

People are our greatest asset.

B Lab honoured us as Best for Workers.

We found out about the Teal organisation model, which fur-ther helps us to identify and develop our working culture.

We successfully participated in many projects through #HCPSPIRIT.

Sustainable growth

We saw the biggest fund subscription

in HCP’s history: €18.4 million.

We recorded a 24% revenue growth from the previous year.

HCP Focus was one of the 15 best-performing equity funds globally.

We enhanced our profile in responsible investment.

69% of our investments were responsible. The figure takes into account the negative screening strate-gy of HCP Focus and the insurance-linked securities of HCP

Black.

We publicly disclosed the investment policy and portfolio of HCP Focus, our active equity fund,

for added transparency.

We allocated €42,000 to cultural collaboration and €16,266 to microfinancing entrepreneurs.

HIGHLIGHTS OF 2018

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Our stakeholders — relationship based on trust

To fulfil our mission to be best for the world, we need to act upon the views

of our stakeholders. We value all infor-mation and new ideas gained from our stakeholder dialogues. This information guides us on how we can develop our operations to best address the stakehold-

Institutions

Individuals

Athletes

B Corp

Artists, athletes and youth

Microbusinesses

Trade partners

Government

Regulators

Collaborations and support

HCPidentity

Investor

return

Funds

Fair business

practice and taxFair business

environment

Permanentemployees

Share- holders

INVESTORS

COMMUNITIES

SOCIETY

HCP

ELIAS KOSKI Compliance Officer, COOArtists

Trainees and

contractors

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ers’ needs.We are guided by the idea of shared

value in selecting partnerships. For the greatest collective impact, we engage with people both in the financial services industry and in the community around us. We conducted an internal survey to un-derstand who our key stakeholders were in 2018. HCP employees identified clients, society, employees, and shareholders as our most important stakeholders.

We engage with our stakeholders through different channels. Examples in-clude client meetings and calls, seminars and community projects, and our website and social media, through which we com-municate the company’s recent develop-ments and performance. The appendices of this report provide an overview of our stakeholder engagement channels.

HCP’s key sustainability topics and the UN Sustaina-ble Development Goals

For this report, we have improved the reporting of the management approach for our material sustainability topics. Previously, we have based the assess-ment of the material topics on stakehold-er discussion and internal surveys. For this report, we conducted an additional analysis of HCP’s management approach for its material sustainability topics. The analysis has taken into account the Sus-tainability Accounting Standards Board’s (SASB) Materiality Map (Sector Level Map – Asset Management) and our previ-ous sustainability reports.

The mechanisms for monitoring the effectiveness of our material sustain-ability topics’ management approach are based on internal practices such as MSCI ESG score assessment and external evaluations such as external performance ratings and stakeholder feedback. The results are communicated through our

annual sustainability report.Furthermore, we have aligned this

reporting to reflect our impact towards the United Nations’ 17 Sustainable Devel-opment Goals (SDGs). The SDGs were set by the 2030 Agenda for Sustainable Development, which “provides a shared blueprint for peace and prosperity for people and the planet, now and into the future.” We recognise the important role of businesses in achieving the SDGs. HCP is committed to fulfilling its role as a member of the financial services industry.

We have analysed all 17 SDGs and their 169 related targets. Specific policies, commitments, and actions regarding our material sustainability topics pres-ent examples of HCP’s business actions supporting specific SDG targets. This analysis has helped us understand, but also demonstrate, how our activities con-tribute to material sustainability topics in a global context.

We try to be a responsible business, and we want to demonstrate it by com-municating our approach to all aspects of sustainability. We aim to lead by example, and are keen to improve our operations continuously by listening to feedback from our stakeholders and reviewing our practices against external ESG standards and frameworks. Consequently, the pur-pose behind all HCP’s material sustain-ability topics is to enhance our positive impacts and mitigate the negative ones.

We have revised and grouped our material sustainability topics under three sustainability dimensions: Teal organisa-tion structure, innovative business model, and responsible business practices. These material topics cover how we manage our economic, social, and environmental impacts as well as our responsibility for action towards the achievement of the SDGs.

Sustain-ability dimension(SDGs and targets)

Management approach(explanation and operational examples)

Evaluation of effectiveness

Topic bound-ary(stakeholders concerned)

Teal or-ganisation structure

4.7, 16.517.14, 17.17

Business with an evolutionary purpose Building a better financial services industry. By doing transparent business with ethical values, we aim to lead by example and inspire others to change. We are on a mission to be best for the world. International partnerships, e.g. with B Lab• Zero tolerance towards

corruption through a public no-kickbacks policy

• Community and civil society engagement through #HCPSPIRIT projects

Internal practice: Sustainability reporting

External evaluation: B Corp certifi-cation

Value networkEmployees

8.3, 8.5

Self-management and wholeness at workWe offer our employees mean-ingful and self-managed work. We believe that employees generate more value for every-one when they have freedom to adopt an individual working style while having the support of co-workers.• Flexible working opportuni-

ties: part-time work, remote work, and study leave

• Opportunities for and en-couragement to creative activities for employees

Internal practice: Annual devel-opment discus-sions with the CEO, weekly employee meet-ings

EmployeesHCP

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4.4, 4.78.4, 8.5, 8.6, 9.310.4

Equality and diversityWe treat all our employees and stakeholders equally. We strive to create a diverse and inclusive workplace, welcoming people from all backgrounds.• Respect for individual life

circumstances of workforce• Fair and equal compensation• Diversity-focused recruit-

ment policy• Trainee program• Demystifying the financial

services industry• Signatory of FIBS Diversity

Charter Finland• Responsible taxpayer• Microfinancing through

NGOs

Internal practice: Sustainability reporting

External evalu-ation: FIBS Di-versity Charter Finland

Value networkEmployeesClients

Innovative business model

8.2

Stable growthWe have a stable business and aim at long-term growth. We keep our operations agile and follow our original values while adopting new ideas. Only a sta-ble business can be sustainable.• Responsible employment

and ownership policy• Sharing resources and ex-

pertise through #HCPSPIRIT collaborations

Internal practice: Partnership model

External evalu-ation: Financial statements

HCPEmployeesShareholdersClients

9.3, 10.4, 17.17

Shared value creationWe find opportunities for shared value creation in society. We offer our expertise and resourc-es as support for entrepreneurs, artists, and NGOs, among others, to create long-term partnerships that benefit all parties.• Cultural collaboration• Microfinancing through

NGOs

Internal practice and external evaluation: Feedback through stake-holder engage-ment

HCPEmployeesValue network

Respon-sible business practices

10.516.5, 16.6

Transparent business conductTransparency of products and operations is one of our main priorities. Our clients receive complete information about all of HCP’s fees.• Transparent revenue model• Effective and transparent

governance structure• Disclosure of our business

conduct in accordance with GRI standards

Internal prac-tice: Sustaina-bility reporting, independent board member who represents clientsExternal evalu-ation: Written commitment to transparency in client contracts

HCPClientsShareholdersValue network

16.5

Client-centric serviceWe always prioritise the growth of our clients’ assets.• No-kickbacks policy• Calculating and reporting

investor return• Long-term client

relationships• Personalised service that

reflects our client base

Internal practice: Sustainability reporting

External evaluation: Client feedback

Clients

16.6

Responsible investmentsIncorporating ESG criteria into our investment decisions is a part of our long-term strategy and can aid in securing long-term returns on our clients’ assets.• Annual UN PRI reporting and

MSCI ESG scores assessment of our portfolio

Internal practice: Annual MSCI ESG score as-sessment

External evalua-tion: Annual UN PRI reporting

HCPClientsShareholders

Risk managementEffective risk management makes our business resilient tochanges in our operational en-vironment. We adopt active risk management through internal monitoring processes.• Solvency management• Own wealth invested in HCP

Black• Strict compliance with regu-

latory requirements

Internal practice: risk manage-ment and inter-nal audit

External evaluation: Regulatory compliance

HCPClientsShareholders

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SOCIAL RESPONSIBILITY

AT HCP

Responsibility for our people

We are the first Certified B Corporation in FinlandOur B Corp journey started in 2016, when one of our interns told us about the B Corporation certification. A year later, we became the first, and so far only, Certi-fied B Corporation in Finland.

The assessment that precedes the certification measures companies’ impact in different areas of sustainability. Our highest impact scores are in the areas of

workers, community, and clients.The B Corp Certification is a great

addition of transparency to our opera-tions. “Through the certification process, we confirm our commitment to redefin-ing the financial sector and the business world biennially.” - Tommi Kemppainen, CEO.

Furthermore, we are active in involving others in the B Corp community locally. We want to share the awareness of the B Corp movement with like-minded people and companies. We organised our own Best for the World Summit in 2017, and hosted B Corp Workshops the same year to encourage others to join us.

The purpose of the B Corporation certification is to provide a third-party standard for measuring social and environmental perfor-mance. The certification also requires companies to be transparent and accountable, and to incorporate certain stakeholder commitments into their operations and documents. Today, there are more than 2,750 Certified B Corporations in 64 countries, and across more than 150 in-dustries. The certification issuer B Lab is a non-profit organisation that serves a worldwide movement of people rethinking the way we meas-ure success in business. Instead of merely competing to be the best in the world, companies aim for being best for the world.

Best for Workers by B Lab In 2018, B Lab rated HCP as “Best for Workers.” The “Best for Workers” catego-ry consists of businesses that scored high when assessing the company’s impact

on workers (the top 10 percent of all B Corporations). We earned this honour through our working practices such as ownership opportunities, a flat pay structure, flexible work, and freedom to participate in #HCPSPIRIT projects.

The Workers section of the B Impact Assessment measures how the company treats its workers through compensation, benefits, training, and ownership opportunities. The category also focuses on the overall work environment such as communication, flexibility, corporate cul-ture, and health and safety practices.

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Working culture at HCP

Workforce and owners In 2018, HCP had twelve employees. Out of all employees, ten were men – six with permanent contracts and four with tempo-rary contracts. The two female employees had temporary contracts. HCP employees are not covered by a collective bargaining agreement. All employees have a contrac-tual minimum notice period.

Our full-time permanent personnel shapes HCP’s core identity. Our head-quarters is located in Helsinki where three of our permanent employees work. One of our permanent employees works in Jyväskylä, one in Kirkkonummi, and one in Tallinn, Estonia.

Since 2016, all permanent employees of HCP Asset Management have owned shares of HCP Group. The total number of owners is eleven. The worker ownership demonstrates the company’s strong trust in our people as well as the workers’ com-mitment to develop the company further. All shares of HCP Group are owned directly without intermediaries.

In 2018, we had six temporary employ-ees with the duration of contract varying between three to twelve months. One man and one woman started as trainees in 2017 and were hired for new temporary positions. We recruited three men and one woman as new trainees. All temporary employees are based in Finland, mostly working at our headquarters.

We also outsourced services, such as ac-counting and translation services to other companies and freelance workers. All data in this section is compiled through inter-views with current and past employees, supported by written documentation.

The trainee program

We want to offer students and aspiring professionals a jump-start to their career with our trainee program. We hired our first trainees in 2013, and have continued to hire new trainees annually ever since.

We have always welcomed trainees from different backgrounds. The en-try-level wage we pay is modest but equal for all of our trainees. We try to give the trainees all possible resources and support to help them make the most out of the experience. All trainees can choose to work remotely with flexible hours. This allows them to combine the trainee period with studies or another job.

Our trainees bring us fresh ideas and skills. For instance, they have pushed our sustainability work forward. Thanks to their initiatives, we compiled our first GRI-based Sustainability Report in 2015. In 2016, another trainee introduced us to the B Corporation movement – a network of mission-based companies that we are now part of.

We have offered some of our trainees the possibility to continue working with the company. In 2018, one of our trainees from 2017 continued working full-time with us for another six months, and we offered one of the four trainees of 2018 an extended contract. Our trainees from previous years, Juhani Halminen and Miika Koskela, are now part of the perma-nent workforce and shareholders of the company.

Our trainees have given us good feed-back over the years. We wish to continue introducing our trainees to sustainable ways of doing finance.JUHANI HALMINEN

Head of Fund Administration

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Equality and diversity

HCP is a member of FIBS — FInland’s leading corporate responsibility network — and has signed the network’s diversity charter. The signatory engages in:

• offering equal opportunities, • identifying and promoting individ-

ual skills and needs, and• managing employees and partner-

ships in an equal manner.

HCP promises to communicate its diver-sity goals and achievements regularly.

A fair workplace

Having a diverse workforce and flat or-ganisational structure are critical factors for our success. By having employees with different educational backgrounds, skills, and experience, our business ben-efits from innovative ways of thinking and solving problems. Self-governance at

“HCP gave me the freedom to learn by doing and have my own area of responsibility.

This is an important takeaway, which I can apply both in my future career and in my private life.

The experience opened my eyes to the possibility of creating economic value while simultaneously

making the world a better place.” – Eskil Vasänge, trainee from 2018.

work increases employee satisfaction and develops our business through commit-ment.

We hire people who share our values and independent style of working. We try to recruit people different from those already working with the company. What matters is individuality, life experience, and ambition.

According to our internal survey from 2018, our employees would prefer a gender-balanced workplace. However, a low number of female applicants has not allowed us to achieve this goal yet. We continue to monitor our progress in this regard and treat all workers in a fair and equal manner.

Demystifying the financial industry

We want to make asset management understandable and investing accessible to everyone. To make this possible, we engage in various projects and publish relevant content on our website and blog.

TIMO VERTALA HCP Sports

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“Deep understanding of the financial industry may not be for everyone. It is more im-portant to realise the long-term effects of one’s own spending and use of credits or loans.

Investing can help in advancing personal life goals.”

– HCP Quant portfolio manager, Pasi Havia

For example, in 2018, we had the op-portunity to open the strategy of our HCP Quant fund to a group of finance students. We also invited students to our office to share thoughts about the entrepreneurial side of starting an invest-ment firm. In addition, HCP organised an investors’ night for women, who are, in our view, underrepresented in the finan-cial industry.

To us, the core meaning of diversity is the freedom to be who you are in your own field of expertise, be it business, cul-ture, or sports. Getting to know different people in our community through various projects has opened our minds to new ideas and brought new perspectives to our work. Accordingly, our collaboration with different members of society is our contribution to enhanced diversity.

Responsibility for societyCreating shared valueShared value is a way of doing business and, at the same time, strengthening the economy and communities. This approach to business has a collective impact and brings together various mem-bers of society.

Collaboration with artists, musicians, athletes, and the third sector has become a prominent part of HCP’s operations. Shared value creation makes our work more meaningful and increases employ-ee satisfaction. Creating shared value enhances our competitive advantage as we find new opportunities through collaborations. Furthermore, our projects strengthen our brand identity.

The #HCPSPIRIT label serves as a tool for communicating our projects on media channels. The label represents all our work that is not directly linked to asset management. We encourage our stake-holders to share their experiences with HCP by tagging #HCPSPIRIT. We also welcome feedback for improvement.

More culture for societyAs a company, we want to be an active part of society. We engage in projects beyond financial services by working with NGOs, athletes, artists, and other creatives in our community who share our values. Our giveback to society goes beyond providing financial services and paying taxes.

What characterises all of our projects is the collaborative spirit. Our involve-ment in the projects goes beyond finan-cial support. We offer our networks and expertise in all projects, and we also per-sonally help in production during office hours and in our free time.

In 2018, we used approximately

€42,000 on project collaboration. How-ever, financial measures cannot capture the shared value we create in these pro-jects. We have brought people togeth-er, advised and supported rising talents, and enriched the cultural life within our community.

Supporting entrepreneurs around the worldWe have micro-financed entrepreneurs in developing countries since 2014. Microfinancing is built on the idea that even small amounts of credit can aid entrepreneurs and their families to become financially independent. All people who want to work on innovative projects with a positive impact on the local economy should have access to finance.

We started with our microlending through Kiva (kiva.org), a non-profit lending platform, in 2014. Our 1085 loans through Kiva between 2014 and 2016 were recycled into a total amount of €24,387*, supporting entrepreneurs in 56 different countries.

Since 2016, we have been provid-ing funding via the lending platform Zidisha (zidisha.org). We like Zidisha’s approach: it enables funders and entre-preneurs to connect directly, eliminat-ing intermediaries. This is more cost-ef-ficient for the entrepreneurs and offers transparency for us funders. To date, our funding through Zidisha has been recycled into €17,438* worth of loans, supporting 1901 projects, mainly in the areas of education, food, retail, mobile phones, farming, and transportation. In 2018, we made an additional funding of €2,754* to Zidisha. At the time of writ-ing this report, we have €7,112* worth of capital on loan to entrepreneurs through Zidisha.

*The sums have been converted from US dollars to euros using the exchange rate on 6/3/2019.

Luca Delgado (2018)

30 31

Luca Delgado, a painter of the dream world, graduated from the Free Art School at the Cable Factory in 2017. We saw his colossal paintings in his final exhibition, where we also learned that he was looking for a gallery space.

As we have our headquarters at the Cable Factory – the biggest cultural centre of the Nordics – we saw a natural opportunity to collaborate. We filled our blank office walls with Delgado’s paintings. The opening night of the exhibition attracted some 150 visitors.

Delgado was also looking for a studio space and, as it happened, we had a spare room at the office. In early 2018, HCP welcomed its in-house artist.

Luca Delgado is a household name in the genre of visionary art. Recently, he has actively produced installations at multidiscipli-nary art festivals. Through our collaboration with him, we were fortunate to be able to participate in the art program of Kosmos Festival.

Kosmos is a music and arts festival held in the forest in Eastern Finland close to the city of Mikkeli. We assisted Luca in produc-ing his “Solar Temple.”

“Solar Temple is a holistic experience where paintings, lights, installations, and soundscapes open a gateway to the inner world of human beings – the cosmos of the soul,” Luca explains.The successful collaboration led to a number of other projects with Luca and others. We hope to participate the Kosmos festi-val again.

During the last 10 years at the Cable Factory, we have collabo-rated with dozens of artists and formed many long-term part-nerships. For an asset management company, it is a privilege to work in a creative hub. To us, a creative environment is an organ-ic part of our identity.

RESIDENT ARTIST: LUCA DELGADO

LUCA DELGADO Resident Artist

32 33

ECONOMIC RESPONSIBILITY AT HCP –

RESPONSIBLE AND

TRANSPARENT

Profit for the yearFinancial stability is fundamental for any profitable busi-ness. A prosperous business also requires resilience in adapting to major changes in society. We maintain our financial strength by being agile and adopting new ideas that are in line with our values.

Our commitment to sustainability should enhance, not compromise, our business or its long-term profitability. We try to achieve long-term success by ensuring that our clients gain profit from investing via HCP and by acting responsibly throughout our value chain. Therefore, we do not set an annual profit target for the company.

Our profit for the year before taxes was €331,292. Af-ter taxation, our profit for the year was €262,796 (taxa-tion at 20.7%; 20.4% in 2017). The increase in profit is a result of performance fees that were higher than in 2017.

To continue paying our taxes and to ensure strong sol-vency, HCP has a policy to cap distributable dividends at a maximum of 8% of its debt-free equity capital. In 2018, the board of HCP Group approved that approximately 8% of HCP Group’s equity, €125,000, should be paid as dividends to the company’s shareholders.

18

FINANCE

34 35

2018 2017 2016 2015 2014

HCP Group €1,588,188 €1,390,770 €1,436,677 €1,024,139 €828,760

HCP Asset Management

€294,843 €283,220 €272,687 €271,472 €268,197

HCP Advisory €50,824 €52,068 €50,881 €24,826 €34,557

Total €1,933,855 €1,726,059 €1,760,244 €1,320,436 €1,131,514

CAPITALISATION

HCP KEY FINANCIAL FIGURES

2018 2017 2016 2015 2014

Revenue €1,433,453 €1,158,237 €958,406 €1,246,505 €898,920

Wages and benefits €481,284 €468,498 €383,889 €423,938 €231,973

Other costs €620,877 €607,034 €567,411 €541,560 €440,155

Corporation tax paid €68,496 €16,890 €9,051 €55,552 €4,222

Profit €262,796 €65,814 €- 1,944 €225,455 €222,570

INVESTORS

COMMUNITIES

SOCIETY

SHARE-HOLDERS

ALL EMPLOYEES

€1,433,453Total revenue

€42,000#HCPSPIRIT Projects

€620,877Other costs

€16,266Microfinancing

€481,284Wages and

benefitsDividend€125,000

Co

rpo

ration tax

€6

8,4

96

So

cial security costs

€9

0,774

Incom

e tax on salaries€

91,59

4

€313,076

Total of corporation tax

and wage- related tax and contributions

Profit€262,796

VAT on purchases€63,409

Tax on d

ividend

s€

4,215

36 37

ERNST GRÖNBLOM HCP Focus Portfolio ManagerInstitutions

Risk management

A resilient business prepares for dis-ruptions so that it can operate normally under stress. Markets go up and down in cycles. In this century alone, we have experienced some of the biggest crashes in history.

In financial services, our main risks naturally relate to economic instability. We address this risk by investing our own money in the HCP Black fund. The fund invests across a wide range of asset classes, counteracting the effects of economic cycles. Investing in HCP Black also shows a strong commitment to the company.

The CEO monitors the solvency of the company on a monthly basis. Our Com-pliance Officer Elias Koski works inde-pendently from portfolio management, and he ensures that HCP complies with all outside regulatory requirements. Elias is also the independent risk manager of the funds, whereas the CEO is responsi-ble for our operational risk management.

The Board of Directors also assesses our solvency when they go through the budget annually. Similarly, our internal auditor assesses our solvency on a yearly basis.

Financial supervisionHCP is an Alternative Investment Fund Manager. It reports to the Finnish Finan-cial Supervisory Authority (FIN-FSA) that has the right to audit HCP as and when required.

Transparency is essential in effective financial supervision. We provide Ernst & Young Finland (EY), our auditor, and Skandinaviska Enskilda Banken (SEB), our custodian, real-time access to fi-nancial and transactional information through intranet.

EY audits all three HCP companies (HCP Group, HCP Asset Management, and HCP Advisory) as well as our funds.

Through access to intranet, EY spot checks our records six times a year as part of the audit process. SEB regularly monitors our fund administration for due diligence purposes.

Investor returns

For HCP, a high-quality client relationship is fundamental. A regular and transparent communication of risks and returns and how they impact fund performance is key to long-term trust between us.

We annually disclose the investor return. Through this measure, we inform the value we have created for our clients. In comparison with the annual perfor-mance of funds, investor return takes into account the timing of when our clients have bought and sold their investments. We strongly feel that this is a good prac-tice that every asset manager could and should follow.

At the end of 2018, the aggregate client profits since the start of our oper-ations were €16,3 million (€18,9 million at the end of 2017). This figure includes profits of both current assets under man-agement as well as previously realised profits.

In comparison to 2017, the drop of 13.7% in the investor return is mainly due to the fluctuation in the value of HCP Focus. The fund, the largest among the three HCP funds, had increased its value by 20%, when its subscription level had peaked. The subsequent drop in value by the same rate resulted in HCP Focus experiencing negative investor return in the following period.

This affected HCP’s overall investor return negatively. Nevertheless, the fund returned +1.72% overall in 2018. We are pleased to say that there were no re-demptions of HCP Focus at the end of the year, demonstrating the quality of our relationship with our clients.

We are also considering the possibil-ity of disclosing investor return on fund

38 39

With the enforcement of MiFID II (Mar-kets in Financial Instruments Directive) in January 2018, HCP’s way of operation should become more common in the industry. We hope that this will enhance investor protection more broadly.

Responsible investment We find it important to understand the direct and indirect impact of our invest-ment decisions. Responsible investment strategies can aid in securing long-term returns on our clients’ assets, and we believe that responsible conduct reduc-es our exposure to reputational risk. The responsible allocation of capital is also an integral part of shaping a sustainable society.

Taking environmental, social, and gov-ernance (ESG) criteria into consideration in investments is an important part of our long-term strategy. We aim to be at the top of the league of responsible investors and show how a responsible asset man-ager conducts its business.

We have been a signatory of the UN-supported Principles for Responsible Investment (PRI) since 2017. We use the six principles as a guideline to incorpo-rate ESG issues in all our investment-re-lated actions. The principles have been particularly useful in understanding the degree of responsibility of our invest-ments. The annual UN PRI reporting process helps us examine our practice thoroughly and pushes us to improve continuously.

We have seen a gradual increase in our responsible investments since 2015, when we started measuring the responsibility of all assets under management. At the end of 2018, we verified that we invested 69% of our clients’ assets responsibly. Each portfolio manager is accountable for making decisions on how to invest their funds. We do not have accurate in-

level. Compared to fund return, these figures would show the value creation in euros of each fund. We are currently exploring how to present this information so that it would give a clear picture of the HCP funds, taking into account the fact that our clients have varying invest-ment experience.

Transparency of productsWe value transparency. This has been the core of our revenue model: no hidden costs or distorted incentives. Since the beginning of HCP’s history, we have been committed to act in the best interest of our clients with a fee only – no commis-sions policy.

Our clients receive complete informa-tion about all HCP’s fees. We calculate and charge our performance fee on a quarterly basis. HCP Black’s performance fee is 10% of the returns, while HCP Quant and HCP Focus charge 10% of the return exceeding the funds’ respective benchmarks. At the end of 2018, the real-ised performance fee – percentage of the fund’s value – was 0.37% for HCP Black, 0.4% for HCP Quant, and 1.45% for HCP Focus. Our annual management fee is 1% on all funds.

We return any received rebates to our clients and we confirm this in writing. By taking this approach, we eliminate the conflict of interest that may arise from invisible commissions. HCP’s own equity is invested in HCP funds. This means that HCP’s and clients’ interests are aligned, thus further avoiding a potential conflict of interest.

We strive to be as transparent as possible about our funds. We publish the most recent allocation structure and key investor information regularly and timelily on our website. We also disclose the ESG profile of our funds and how we measure it.

formation with regards to the remaining 31% of assets under management.

Our Head of Fund Administration further assesses the portfolio companies within HCP Focus at the end of each year by flagging significant changes in their ESG scores. The supplier of this service is MSCI (changed from Bloomberg in 2018). Furthermore, the portfolio manager excludes certain sectors and products in selecting companies for the fund. For ex-ample, weapons, gambling, tobacco, and hard liquor manufacturers are excluded from the portfolio.

There are numerous definitions and in-

terpretations for responsible investment and impact investing. At HCP, we con-sider investments which provide securi-ty from negative economic and natural events as impact investments. Examples of these include HCP Black’s investments in insurance against natural disasters and life insurances.

Finally, we are a member of Finland’s leading corporate sustainability net-work (FIBS), and Sustainable Investment Forum (Finsif) to work together with like-minded businesses and to under-stand the latest developments in the field of responsible investment.

2018 2017 2016 2015

Responsible investments 69% 64% 53% 49%

Of which impact investments* 7% 19% 20% 15%

Sini Kunnas “PEACES of LIGHT” (2015)

40 41

ENVIRONMENTAL

RESPONSIBILITY

AT HCP

Our operations and a sustainable value network For a financial services company, what matters is its role within a network of relationship flows rather than a linear supply chain. HCP’s main impacts in this network relate to financial and informa-tional flows rather than material flows. This is why our environmental effects – which are mainly indirect – are very hard to measure.

HCP’s main material flows concern the procurement of our operating sup-plies. These purchases comprise of both material supplies and services. Our most significant purchases are services related to governance, IT systems, marketing, and research and development.

In 2018, we had 110 suppliers, which is the same as the year before. In selecting our suppliers, we prioritise environmen-tally friendly or local businesses. The majority of our suppliers are Finnish. However, we have purchased also some goods and mainly services from Germa-ny, Denmark, Estonia, Switzerland, the UK, and the US in 2018.

In our previous Sustainability Report, we set an aim of developing a sustain-ability screening system for our suppli-ers. Due to the size of our operation, we realised that it is indeed cost-effective to evaluate our suppliers case by case when needed.

We have started to review our opera-tional suppliers based on their commit-ment to sustainability and meet them directly when possible, including suppli-ers in the financial services industry, such as banks and insurance companies. We believe that working with business part-ners who address sustainability issues is important for creating an alliance for a positive change in the financial services industry.

Given the nature of our core business, the direct environmental footprint of our operations is relatively small. The size of our main office in the Cable Factory is 104m², and its energy consumption mainly relates to electricity and heating. We use video conferencing whenever it is practicable for internal meetings with team members outside Helsinki, and we encourage the use of public transport and bikes for commuting.

Our funds in the value network We find it important to understand the indirect environmental impact of our investments in stocks and other assets. As the company grows, the size of our investments grows, increasing the im-portance of our environmental footprint even more.

Environmental issues pose us a chal-lenge given the nature of the investment instruments in our funds. Currently, our best method for minimising our environ-mental impact is to incorporate relevant criteria into our investment decisions. Through the risk management of our funds, we aim to lower the environmental harm in the value chain.

ESG information for HCP Black and HCP Focus funds is currently publicly available. On the other hand, similar in-formation is unavailable for HCP Quant.

HCP Focus reviews portfolio compa-nies using MSCI ESG scores. A red flag is raised when there is a downward change in the ESG rating, and this triggers the portfolio manager to scrutinise compa-nies in the portfolio. We have adopted and improved this methodology since 2017. In addition, as the number of com-panies in the portfolio is small, the port-folio manager can also review individual companies in detail as and when needed.

HCP Black allocates a substantial pro-portion of its insurance-linked securities

42 43

in theme-based (or impact) investments, namely investments in insurance against natural disasters and life insurances.

To date, we have not been able to find a suitable method to introduce environ-mental criteria to HCP Quant. The fund consists of small and mid-size companies, and they publish little ESG information. We continue to explore how we can ad-dress this challenge.

Creating new positive impact We strive to explore innovative ways of doing business that benefit the environ-ment around us. As an expert in invest-ment, we believe that it is possible to find undervalued resources with strong growth potential. What if we invested in assets that can increase in value by – not while – positively impacting our environ-ment?

One idea that we have in mind is in-vesting in our forests in a new way. Rather than seeing forests purely as a source of timber and pulp, we would like society to recognise the value of intact forests. Our forests could be a source of culture and recreation on a much larger scale than before, and their value as carbon sinks should be further studied. If and when we achieve our goal, forest owners will also benefit from a new kind of value that is generated by letting native forests remain as they are.

We have already pitched this idea to a large forestry company. It may be also possible to take the plan forward through our #HCPSPIRIT projects. However, a big idea is always accompanied by risk, and we will examine the different possibilities for new use of forests carefully.

MIIKA KOSKELA Customer Experience Manager

44 45

HCP’s Sustainability Report 2018 outlines the company’s approach to its social, environmental, and economic impacts in relation to its ma-terial sustainability topics. The report also conveys the unique story behind HCP's operations and its approach to value creation.

HCP reports its sustainability activities annually. The preceding re-port was published in February 2019 and it covers the calendar year 2017. This year’s Sustainability Report is HCP’s fifth and it covers the calendar year 2018. This report has been prepared in accordance with the GRI Standards: Core Option as previous reports.

HCP has encouraged its trainees to take the lead in compiling all its Sustainability Reports. This approach enables a fresh look at the company’s material sustainability topics and inclusion of new ideas into the reporting process. Mikaela Gerkman, HCP’s Sustainability Reporting trainee, compiled this report during the spring of 2019. She involved all of HCP employees in developing and reviewing the content. Tommi Kemppainen, our CEO, formally reviews and ap-proves the report before publication.

This report covers the operations of HCP Group, HCP Advisory, and HCP Asset Management. The financial data covers all the three entities and is compiled from externally audited financial statements and internal audits. HCP has not found any material corrections or amendments to information provided in past Sustainability Reports.The guiding principle of writing this report has been to ensure quali-ty. Mikaela and the editorial team worked hard to improve clarity and consistency, and the team believes that the report has significantly improved by this cooperation.

By studying other organisations’ Sustainability Reports and HCP’s previous reports and having internal discussions on the content and the scope of information, we have improved the comparability and reliability of the report. Finally, we started the preparation of the Sustainability Report earlier than in the previous years, which ena-bled timely publication of the report.

We hope you enjoy reading our Sustainability Report 2018. If you have any questions or comments about HCP or this report, we are happy to hear from you. Please get in touch at ir@hcp.fi. You can find further information about our sustainability efforts and services on our website www.hcp.fi.

ABOUT THE REPORTOnce again, I was pleased to read a well-setout sustainability report. It opens up not only the values HCP supports but also the actions taken to practice fund management by being faithful to those values.

I highlight some examples:

The percentage of responsibly invested customer assets has in-creased year on year. The report says that at “the end of 2018, we verified that we invested 69% of our clients’ assets responsibly.” This is a steady increase from the previous year’s 64%.

Defining responsible investment can be complex. HCP has not set-tled for an easy answer: instead, it has analysed actively and critically different measures of responsible investment. The outcome is clearly stated in the report.

I am also delighted for the inclusion of UN Sustainable Development Goals for the first time this year. UN SDGs provide a useful, concrete framework in analysing HCP’s impact on its environment. I am confi-dent that we can all support the goals included.

Investor value is, of course, important to us unitholders. The report sets out fund principles and how our funds have been used to create value for the investors but also for other stakeholders in unambigu-ous terms. Lastly, I would like to say a few words about the role of the unithold-ers’ representative. At HCP, the unitholders’ representative has been selected among the unitholders. It has become a custom to select a genuinely independent person with no other ties to HCP or its key employees.

However, the newly enforced Mutual Funds Act no longer requires mutual fund companies to have unitholders’ meetings yearly, and the independent member of the board no longer needs to be selected at the unitholders’ meeting.

Despite that, good experiences have encouraged HCP to keep this practice. It is a valuable way to increase board diversity. Further-more, by opening access to a total “outsider,” HCP ascertains its commitment to the core values.

I have been lucky to be a part of this company: this is asset manage-ment I can be proud of.

Elli Tervala (née Leino)

A MESSAGE FROM THE UNITHOLDERS’ REPRESENTATIVE

46 47

102-1 Name of the organisa-tion

Helsinki Capital Partners in brief p. 5

102-2 Activities, brands,products, and services

Our services, clients, and products

p. 11

102-3 Location ofheadquarters

Helsinki Capital Partners in brief p. 5

102-4 Location of operations Helsinki Capital Partners in brief p. 5

102-5 Ownership and legal from

Helsinki Capital Partners in brief Workforce and owners

p. 5p. 25

102-6 Markets served Our services, clients, and products

p. 11

102-7 Scale of theorganisation

Helsinki Capital Partners in briefWorkforce and ownersOur services, clients, and productsProfit of the year

p. 5p. 25

p. 11p. 33

102-8 Information on employees and otherworkers

Workforce and owners p. 25

102-9 Supply chain Our operations and a sustainable value chainOur funds in the value chain

p. 41p. 41

102-10 Significant changes tothe organisation and itssupply chain

No sig-nificant changes

102-11 Precautionary Principleor approach

Risk management andfinancial supervision

p. 37

ORGANISATIONAL PROFILE

This report has been prepared in accordance with the GRI Stand-ards: Core Option.

GRI STANDARD DISCLOSURE SECTION

LOCATION/ ADDITIONALINFORMATION

GRI INDEX

102-14 Statement from seniordecision-maker

A message from the CEO p. 6

STRATEGY

102-16 Values, principles, standards, and norms of behaviour

Our valuesGood governanceTeal organisation structure

p. 8p. 8p. 9

ETHICS AND INTEGRITY

102-18 Governance structure Good governance p. 8

102-19 Delegating authority Good governance p. 8

102-20 Executive-level respon-sibility for economic, environmental, and social topics

Good governance p. 8

102-21 Nominating and selecting the highest governance body

Good governance p. 8

102-22 Role of the highest gov-ernance body in setting purpose, values, and strategy

Good governance p. 8

GOVERNANCE

102-12 External initiatives HCP’s key sustainability topics and the UN Sustainable Devel-opment Goals

p. 18

102-13 Membership of associations

HCP’s key sustainability topics and the UN Sustainable Devel-opment Goals

p. 18

GENERAL DISCLOSURES

GRI STANDARD: GRI 102: GENERAL DISCLOSURES 2016

48 49

102-40 List of stakeholder groups

Our stakeholdersAppendix: Stakeholder engagement channels

p. 17

102-41 Collective bargaining agreements

Workforce and owners p. 25

102-42 Identifying and selecting stakeholders

Our stakeholders p. 17

102-43 Approach to stakeholder engagement

Our stakeholdersAppendix: Stakeholder engagement channels

p. 17

102-44 Key topics and concerns raised

Our stakeholders p. 17

STAKEHOLDER ENGAGEMENT

102-45 Entities included in the consolidated financial statements

About the report p. 48

102-46 Defining report content and topic Boundaries

HCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

102-47 List of material topics HCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

102-48 Restatements of information

No significant changes

102-49 Changes in reporting HCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

102-50 Reporting period About the report p. 48

102-51 Date of most recent report

102-52 Reporting cycle About the report p. 48

REPORTING PRACTICE

GRI STANDARD DISCLOSURE SECTION

LOCATION/ ADDITIONALINFORMATION

102-53 Contact point for ques-tions regarding the report

About the report p. 48

102-54 Claims of reporting in accordance with the GRI Standards

About the report p. 48

102-55 GRI content index GRI index p. 46

102-56 External assurance A message from the unitholders’ representative

p. 49

MANAGEMENT APPROACH

103-1 Explanation of the mate-rial topic and its Boundary

HCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

103-2 The management ap-proach and its compo-nents

HCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

103-3 Evaluation of the man-agement approach

KHCP’s key sustainability topics and the UN Sustain-able Development Goals

p. 18

GRI STANDARD: GRI 103: MANAGEMENT APPROACH 2016

50

Clients Individual client meetingsClient satisfaction surveysClient contacts by email and phone calls, websites and social media

Society PublicationsInterviewsSocial media channel activityMeetingsCommunity projectsStudent and research collaboration

Employees Weekly staff meetingMessages and callsIntranetOff-site meetings

Owners Annual General MeetingMonthly financial updates

Board of Directors Annual General MeetingMonthly financial updates

APPENDICES

STAKEHOLDER ENGAGEMENT CHANNEL

Cover art: Luca Delgado (2018)Graphic design: Laura Happo

www.hcp.fi